ACT Party candidate and former broadcaster Paul Henry has warned New Zealand risks backing itself into an economic corner if the country shifts politically to the left at November’s election, while accusing Labour of trying to buy votes with its new student loan policy.

In an interview with chrislynchmedia.com in Christchurch, Henry said the country could no longer afford governments that responded to problems by borrowing more money.

“If things swing to the left this time round it will be a case of further constraining growth in the economy and batting the problem down the road by borrowing more money.”

He said ACT wanted a much stronger presence in the next Government to reduce spending, shrink the size of government and begin bringing debt under control.

Henry is standing as an ACT list candidate at the 2026 election after joining the party earlier this year. ACT has built much of its campaign around what it calls unlocking New Zealand’s potential.

Henry described the election as the most important of his lifetime, arguing New Zealand was moving towards a position where future governments could have fewer choices about how to respond to economic shocks.

“We are in the process of backing ourselves into a corner from which we may well not have any choices to get out. Choices may be made for us.”

Treasury’s Budget 2026 forecasts show net core Crown debt continuing to rise over the next two years, from $191.8 billion forecast for June 2026 to $216.5 billion in June 2027 and $232.4 billion in June 2028. Debt as a share of GDP is forecast to peak at 46.1 per cent in 2028 before beginning to decline.

The latest published Crown accounts, covering the 11 months to the end of May, put net core Crown debt at $186 billion, which was $2.8 billion below forecast at that point.

Henry put the current increase in debt at $38 million a day during the interview.

His warning about the growing cost of servicing debt is supported by Treasury figures. Budget 2026 put the Government’s annual interest bill at about $9 billion, while finance costs are forecast to reach $10.2 billion in the 2026 financial year.

Henry said New Zealand was particularly vulnerable because of its ageing population, growing health costs and exposure to natural disasters.

“We do live in a part of the world where at least once every couple of years we’re going to have a phenomenal bill to pay for a flood or an earthquake or something like that.”

He said borrowing itself was not necessarily wrong and supported borrowing where money was tied to productive infrastructure with a clear economic return.

“If you have a plan, if you have an investment, a good example would be perhaps a significant roading project that you know will stimulate the economy and grow the economy, and you specifically borrow for that one project and execute that project and start getting benefits from it straight away, that’s borrowing for an investment.”

But Henry reserved some of his strongest criticism for Labour’s newly announced policy to cut eligible student loan balances by 10 per cent.

He called it “shabby politics” and accused Labour of attempting to attract votes using money the country could not afford.

“It is just redistributing debt.”

Labour announced the policy at its campaign launch on Sunday. Graduates already repaying loans would receive the reduction on 1 April 2027 if they meet the eligibility rules, while current and future students would qualify after remaining in New Zealand for three years after finishing study. Those who benefited from Fees Free would not qualify.

The policy has been reported as costing about $583.4 million over five years, with most of that cost occurring when existing borrowers receive the initial reduction. Labour says the ongoing cost once the scheme is fully operating will be nearly $40 million a year and argues the policy will encourage graduates to build their lives in New Zealand.

Henry rejected Labour’s case.

“It won’t grow the economy. It won’t attract any more students into tertiary education.”

Labour leader Chris Hipkins has argued the opposite, saying reducing student debt would give graduates more reason to stay in New Zealand and make it easier to save for housing, start families and establish businesses.

Asked how ACT would actually reduce debt, Henry’s answer was immediate.

“Stop wasting money. Shrink our government.”

He said the problem was not insufficient tax revenue, but how much government was spending and the results taxpayers received for that money.

Henry used health as an example, saying frontline health workers had repeatedly told him they were frustrated by bureaucracy and inefficiency.

“Before we put any more money into health, we have to look at what are the outcomes, what is the value we’re getting for the money that we’re putting in.”

Treasury has identified health, superannuation, welfare, education and finance costs as major contributors to core Crown expenditure. It forecasts core Crown expenses of $147.2 billion for the 2026 financial year.

Henry said reducing regulation was also central to increasing economic growth and attracting international investment.

He pointed to the experience of supermarket development as an example of what he sees as unnecessary regulatory barriers, arguing businesses faced excessive costs and lengthy consenting processes before they could begin operating.

“Governments don’t grow economies. Governments don’t unlock potential. What a good nimble government does is it creates a platform on which it is easy and enthusiastic for the private sector to grow the economy.”

Henry also used the interview to expand on one of his major campaign projects, ACT’s proposed national cancer centre.

The party wants two comprehensive cancer campuses, one in Auckland and one in Christchurch, bringing clinicians, researchers, patients, teaching and clinical trials together within the same system.

Henry said the concept had been on his mind for years and argued New Zealand should aim to create an internationally recognised centre rather than continue operating cancer services across disconnected institutions.

“You will have patients, clinicians, researchers, teachers, oncologists, genomic specialists. They will all be working in the same place at the same time.”

He said greater concentration of expertise could help New Zealand participate in more international drug trials and accelerate the movement of research into patient care.

“There is no reason why New Zealand shouldn’t have one of the leading cancer foundations in the world.”

One of the more revealing moments of the interview came when Henry was asked what former Labour Prime Minister Helen Clark possessed as a political leader that he did not see in Prime Minister Christopher Luxon.

His answer was one word.

“Pragmatism.”

Henry, who frequently challenged Clark during his broadcasting career, said he remained a major admirer of her political leadership despite disagreeing with much of her politics.

“She had authority. You knew what she thought, you knew probably what she was going to do and as soon as you asked her she told you what she was going to do about a situation.”

He described Clark as a strong manager who made expectations clear to ministers, MPs and the wider country.

“Helen Clark was a doer.”

Henry also reflected on how his view of politicians had changed since moving from broadcasting into campaigning.

After decades interviewing politicians, he said being on the receiving end had given him a greater understanding of the personal pressure involved.

“If I went back again to the other side of the ledger, which of course I won’t do, I would perhaps have a little more understanding for just how hard and thankless this is.”

He said online abuse and constant criticism were more intense from inside politics than he had appreciated as an interviewer.

Asked whether his nationwide campaign was changing minds or simply attracting existing ACT supporters, Henry said both were happening.

He said some National supporters wanted a centre right government but believed ACT needed greater influence inside it.

ACT’s official campaign material similarly argues that the party wants a stronger presence in the next Government to push through its economic and regulatory agenda.

Henry said he believed economic concerns were beginning to cut through beyond ACT’s existing base.