National have started an "austerity" programme, tens of thousands of civil servants have been laid off, housing is disgustingly expensive (and the quality of it is awful as well), the price of goods and food is pretty expensive (even dairy products that are produced here are often more expensive than in Europe).
The location's only great strategically if you ignore the (huge) future earthquake potential.
Cities like Wellington have also had a chronic lack of infrastructure investment, so there are HUGE issues with water / sewage leaks - pretty much every week there's a new water main leaking somewhere in the city.
(Have lived here for 10 years, and am looking to return to Europe - things are going downhill pretty fast here IMO).