Five questions on a Middle East perspective

From MSCNewsWire's European Correspondent |Wednesday 6 September 2017 | Beirut-based Meguerditch Bouldoukian is an emeritus figure in banking in the Middle East and the EU. Mr Bouldoukian (pictured with Paul Volcker) now answers our five questions on New Zealand’s Middle East positioning …..

There is evidence of a belief here in a short Middle East memory. We have the defaulting on the old Development Finance obligations. Then we have the U-turn on the undertaking on live sheep exports to Saudi Arabia. Followed by compensation in the form of a covert stock-handling depot there. Then the matter of the New Zealand delegation to the UN Security Council as a further entreaty backing the anti Israel censure?

There will always be mistakes and false starts. Especially with evolving markets. You can take comfort in your wider picture. According to recent OECD reports New Zealand’s one of the robust economies on the globe since 2012 due to tourism, inward migration, construction. It has a sound fiscal position and low public debt and balanced budget. GDP $185 billion, growth rate of 3.9 %, per capita income $39,400 and internet usage 86 %. I am though rather worried by the Development Finance Corporation experience which you cite and which once again demonstrates the danger of a longer term operational involvement by a government in commercial banking. If this intervention is a sustained one, and not just implemented to cope with an emergency then a Pandora’s Box is put in place and which is bound to be opened at some stage down the line.

There is a belief that only very large scale organisations, ideally with government involvement, are the only ones that can trade with the Middle East ---and then get paid...

My advice here is for commercial interests in your country to steer very clear of Middle East states ruled by sultans, emirs, kings, and other despots of that ilk. Elsewhere you will find strong legal statutes to ensure against the kind of default you seem to be describing

All the NZ trading banks are owned in Australia. Do you see this as an advantage/disadvantage?

The major banks must encourage the outside world in coordination with the government to pump in Foreign Direct Investments. Local banks ultimately can only finance SMEs or SMIs. I am pleased that you asked this question because it has given me an opportunity to clear up a misconception, rather touching in its way, to the effect that the Australian trading banks are owned in Australia. They are in fact and to a substantial extent owned by UK and US banks, notably HSBC, J.P Morgan, and Citigroup among others. Is this an advantage? Probably. The reason is that the smaller the bank, the greater will be its reluctance to take on risk.

It is said that the Australian banks along with the Canadian banks are the world's best regulated?

Industry figures tell us that world’s best regulated banks are domiciled in order in:

• Finland
• South Africa
• Canada
• NEW ZEALAND
• Australia
• Hong Kong
• Norway
• Singapore

The significance of this is that you do not have to worry about banks operating in New Zealand soundly regulated as they are by the Reserve Bank.

Do you see any benefit in New Zealand seeking to re-establish its own joint stock/ trading bank?

You have had the problem in your recent and longer term history of your own bank in this category getting into trouble and having to be rescued by the taxpayer, the government in other words. This in turn opens our Pandora’s Box which takes the form of the state, and for a number of reasons, being viewed as being responsible for the bank and even long after the emergency that caused it to be involved in the first place.

Goods and Services Trade by Country: Year ended June 2017 – for more data and analysis

Goods and Services Trade by Country: Year ended June 2017 – Media Release

New Zealand’s two-way trade with the Association of Southeast Asian Nations (ASEAN) was $15.2 billion in the June 2017 year, Stats NZ said today. Goods and services exported to ASEAN countries totalled $6.3 billion, and imports totalled $8.9 billion. New Zealand’s trade deficit with the combined ASEAN countries was $2.6 billion.

ASEAN, established in August 1967, had Indonesia, Malaysia, the Philippines, Singapore, and Thailand as original members. Countries that joined later were Brunei Darussalam, Cambodia, Laos, Myanmar, and Viet Nam.

“Fifty years ago, we exported nearly $16 million worth of goods to the five original ASEAN countries,” international statistics senior manager Daria Kwon said. “That’s around $160 million in today’s value.”

New Zealand imported $11 million worth of goods from the five countries in 1967 (approximately $94 million in current dollars). Two-way trade with ASEAN was $27 million (just over $251 million in current dollars), which included a surplus of $5 million (around $63 million in current dollars). In 1967, services were not included in Stats NZ’s exports and imports data.Dairy products, petroleum, and cars the main goods traded

New Zealand exported $5.0 billion worth of goods to ASEAN countries in the June 2017 year, and imported a total of $7.1 billion worth of goods.

Dairy products (including milk powder and cheese) were the main goods exported to ASEAN, followed by meat, logs, fruit, and wood pulp and waste paper. A total of $2.4 billion of dairy products were sent to ASEAN in the June 2017 year, with $524 million to Malaysia alone. Malaysia received most of New Zealand’s dairy products this year, followed by the Philippines ($474 million) and Indonesia ($400 million).

Petroleum and related products was New Zealand’s largest goods import from ASEAN in the June 2017 year. Petroleum imports from ASEAN decreased in recent years as other sources were used, such as the United Arab Emirates. New Zealand imported $1.4 billion worth of petroleum from ASEAN in the June 2017 year, half of what was imported in the June 2013 year. Most these petroleum imports came from Singapore ($982 million).

Since 2013, the value of vehicles and parts imported from ASEAN has doubled to reach $1.3 billion in the June 2017 year. The majority of these vehicles are from Thailand, where cars and trucks are made under licence for Japanese, American, and other international car makers.

In 1967, New Zealand’s main goods exports to ASEAN were dairy products, followed by frozen meat, tallow, then wood pulp and waste paper.

“Although the goods we exported to ASEAN this year were similar to those in 1967, the value and volume of this trade has increased,” Ms Kwon said. “Our main imports from these countries in 1967 were crude and synthetic rubber, kerosene, and petroleum.”Travel and transportation the main services traded

New Zealand imported $1.8 billion worth of services from ASEAN in the June 2017 year, and exported a total $1.4 billion worth of services in return.

Travel was the largest services export to ASEAN ($1.0 billion total), with personal travel to New Zealand contributing $613 million to the economy. By country, Malaysia and Singapore had the highest number of total visitors to New Zealand.

Transportation was our largest services import from ASEAN in the June 2017 year ($669 million), with Singapore accounting for most of this. Imports of transportation services also includes New Zealanders travelling to and from Singapore on non-resident airlines.

There were 1,301 flights that arrived in New Zealand from Singapore in the June 2017 year, and 1,286 flights that departed from New Zealand to Singapore over the same period. Over 23,000 New Zealand-resident travellers listed Singapore as their main destination in the June 2017 year, mostly for holidays or to visit friends and relatives.

| A StatisticsNZ release  ||September 4,  2017   |||

Kegstar has acquired Keg Lease Pty Ltd, a specialist keg leasing company that focusses on the Australian craft beer industry.

Keg Lease was previously owned by brewing ingredients supplier Bintani.

“Since commencing operations in December 2012, Keg Lease has grown to be a major supplier of keg leasing services in the Australian market with in excess of 21,000 kegs currently leased to over 125 customers,” Bintani said in a statement.

“We now feel the time is right for Kegstar to continue the growth of Keg Lease with its strong access to capital as part of Brambles and the opportunity to provide integrated keg solutions that incorporate both leasing and pooling.”Kegstar has incorporated the Keg Lease fleet into its current operations, giving brewers and other beverage manufacturers the option of keg pooling or keg leasing services.

Kegstar General Manager, Nick Boots, said: “This exciting acquisition provides Kegstar customers with with a broader variety of flexible keg management options to match their needs. Having a comprehensive leasing option alongside Kegstar’s well-established keg pooling solutions will be attractive to a broader catchment of producers. We will launch the Keg Lease business in New Zealand in October.”

Kegstar launched in 2012, with global supply chain logistics company Brambles acquiring a 30% stake in the company in 2014 and taking complete ownership on 1 December 2015.The acquisition means Kegstar can now offer customers branded kegs.

Kegstar CEO Adam Trippe-Smith told Brews News: “There’s proven to be a demand for keg leasing for either start-up phase breweries, or single state breweries or breweries that want branding on the keg. Up until now we haven’t offered that and we do see a demand for it. If that’s what customers want, we want to be able to offer it to them.”

Bintani Australia will remain involved in selling and repairing kegs through its Keg Services operations.

| A Drinks Bulletin release  ||  September 4,  2017   |||

Productivity is a necessary but not sufficient condition for higher wages and standard of living.

Shamubeel Eaqub says ease of doing business and relatively low levels of reported corruption are clearly not enough to improve New Zealand's productivity.

New Zealand has a productivity problem. We are working harder to grow the economy, but we aren't getting much better at it. Poor productivity has plagued New Zealand for the past 40 years. We have a productivity problem. The problem is not new, there are no easy fixes, and doing more of the same will most certainly not fix it. We should not pretend that any of the political parties have a convincing plan to fix it.

A problem that has persisted for four decades will take long-term structural reform across a number of areas, including education, training, international connections, competition, research, development and commercialisation. And this will have to be led by an independent state sector that answers to the public, not just be ministers' puppets.

Productivity is a necessary but not sufficient condition for higher wages and standard of living. It is possible to have strong productivity growth, but the gains can accrue to a small concentration of capital owners, rather than widely through the economy.

New Zealand has less of a problem of sharing productivity gains, than having productivity gains in the first place. Low productivity explains a long growing wedge in wages between New Zealand and Australia.

Our GDP per person was similar to Australia's before the 1970s. Since then, Australia has grown faster and a wedge has opened up. The cause was lower productivity in New Zealand.

It is not because our economy is different, rather that we are not good at how we do things. We work really hard but we can't seem to make more profits and pay better wages.

Whether we talk about productivity or inequality, one leads to the conclusion that we have low quality economic growth. Growth for the sake of growth doesn't make sense, the point of growth is to have a more prosperous and fairer society - and to ensure that we are staying within the limits of nature.

There has been a lot of research work on productivity – the lack of it – in New Zealand. The OECD, The Treasury and The Productivity Commission all have useful and helpful work on it.

Our ease of doing business and relatively low levels of reported corruption are clearly not enough. Neither is our seemingly well-educated population. This led to much navel gazing and talk of the productivity puzzle. That we are small, distant and uncompetitive in many areas has become increasingly apparent.

Our country is too small. Many of our businesses face little competition and incentive to invest in new innovations. Many of our businesses and the markets they sell to are too small to adopt new and expensive ideas, processes or equipment.

The businesses that scale tend to be global. This interaction really helps, but not always. Exporting is risky and many businesses that have foreign investment are no more productive than other businesses.

What we have done so far hasn't worked. If we want to make change, it must be a gradual and long-term investment in making our education system more responsive to what our economy needs. Our businesses must invest more in training, workforce planning and career development. Our capital market and tax system need an overhaul to direct money to entrepreneurship and investment. We have to keep embracing globalisation to give our little economy semblance of scale.

There is a plethora of policy areas that need to work in concert to make slow-moving and long-term change. The public service must lead this narrative to set out the policies that will solve four decades of disappointing productivity. These policies need to be based on evidence and not tied to ideology. Because the policies have to be long-term, they must survive changes in political leadership.

Right now, the public service is not capable of delivering this. It stays away from policies the minister does not like. It pulls its punches, to please its political masters. The public is underserved by this servitude of the public service to the politicians, rather than to the public.

The problems of productivity in New Zealand are four decades old. Its long enough to move past denial and acceptance to resolution.

| Source peopleread  ||  September 4,  2017   |||

NBR readers back the scrapping Callaghan innovation – but Labour’s position still unclear The Taxpayers’ Union is calling on Labour to confirm that a Labour-led Government would scrap Callaghan Innovation's 'corporate welfare' grants after an NBR subscribers poll found more than 57% of readers want the schemes to be scrapped (with a further 31% backing a reduction in the corporate welfare regime).

Executive Director of the Taxpayers' Union Jordan Williams says, “NBR’s poll proves what we’ve been arguing. The majority of the business community want the Callaghan Innovation, ‘hand picking of winners’ grants system scrapped.”

"This result doesn't come as a surprise. When Callaghan surveyed its own clients last year, 40% said Callaghan hadn't added value to their business. Given Callaghan's role is giving away free stuff, that statistic is extraordinary." “Jacinda Ardern had signalled her interest in going away from the ‘picking winners’ model in favour of R&D tax breaks. We call on Labour to commit to what businesses want, and pledge to get rid of Callaghan Innovation if elected in September.”

For further information see: https://www.nbr.co.nz/article/poll-result%C2%A0whats-best-way-boost-rd-spending-ck-p-207194

| A Taxpayers Union release  ||  August 31,  2017   |||

Ingram Micro has announced a partnership with Vertiv, formerly Emerson Network Power, to deliver data centre solutions to businesses in New Zealand writes James Henderson New Zealand Reseller News

The deal comes amid an Auckland office expansion for the distributor, after signing the lease to take over the Umbrellar building that shares the company’s head office site on the North Shore.

From a vendor perspective, Vertiv will provide the complete range of products and services within a critical IT infrastructure framework, targeting industries such as telecommunications and internet services, banking and finance, transportation, power, logistics, and retail.

As a result, Ingram Micro will work with resellers to provide financing, education, training and business development resources to marketing services and pre- and post-sale technical assistance.

“Ingram will be delivering a broad and deep spectrum of technology and supply chain services to our solution partner community,” Vertiv channel business director of Asia Daniel Sim said.

“Vertiv will continue to bolster its position in New Zealand as a catalyst in adoption of pioneering edge computing implementations.”

Among the lines of Vertiv products that Ingram Micro will carry for the New Zealand market include critical power, thermal management, racks and enclosures, monitoring and services under the well known brands of Chloride, Liebert and Trellis.

“Appointing Ingram Micro significantly increases our presence in New Zealand and underpins our rapidly broadening channel strategy,” Vertiv A/NZ managing director Robert Linsdell added.

Formerly Emerson Network Power, Vertiv specialises in supporting mobile and cloud computing markets with a portfolio of power, thermal and infrastructure management solutions.

“Vertiv’s solutions open up additional revenue streams for Ingram Micro resellers that are active in the converged infrastructure space, so our channel partners are enthusiastic about the new opportunities,” Ingram Micro New Zealand managing director Gary Bigwood added.

“Ingram Micro is the only New Zealand distributor that can provide specialist resellers with a full range of hardware and software for data centres and enterprise level infrastructure solutions, which makes Vertiv the perfect fit for our partne

Alongside the new vendor partnership, Ingram Micro also unveiled plans to bolster office space, expanding into the adjacent building in Auckland.

“We’ve seen substantial expansion and have literally run out of room,” Bigwood added. “We’ve removed offices, reduced desk sizes and moved outbound teams to hot-desks – pretty much anything we could think of to create more room. But in the end, we really, really just needed more space.

“In a case of perfect timing, Umbrellar was looking to relocate just as we had finally run out of room to swing the proverbial cat. The stars aligned and everything has worked out very well for all involved.”

Bigwood said that signing the lease to take over the Umbrellar building, which is next door to the existing Ingram Micro building, also avoids a design and build project over the next couple of years and the associated disruption that would bring.

“The current Ingram Micro building is almost nine years old and will be getting a tidy up to match the Umbrellar facility over the coming year,” Bigwood added.

The move into the new building is scheduled for October this year.

| A IngramMicro release  ||  August 31,  2017   |||

Centuries of formality, tradition and etiquette are the attributes that many young people normally see as reasons to bypass the game of golf.

The perception that golf is also mostly for the elders on the higher rungs of the corporate ladder might be precisely why the young and ambitious should consider practicing their swing.

Trends worldwide show that golf is a game which is under enormous pressure to gain and retain participants, especially of a younger demographic. New Zealand Golf continues to meet the pressure head on through its ongoing efforts to keep the game accessible to all.

New Zealand Golf, with the support of the University of Auckland, has set out to create a unique programme that has seen such interest that spaces were taken within days.

The Business Course pairs leading business professionals with ambitious young students for a round of golf, teaching them a bit about ‘the game’ while playing the game over the space of six weeks.

Big names such as former prime minister Sir John Key, celebrity chef and restauranteur Josh Emmett, Air New Zealand Chief Financial Officer Rob McDonald, Susan Paterson (ONZM), Spark Chief Executive of Home, Mobile and Business Jason Paris and Rhodes scholar and Reserve Bank director Jonathan Ross, will join students on the course. The students will graduate from the programme at an event held alongside New Zealand’s first LPGA event, the MCKAYSON New Zealand Women’s Open on October 1st.

The Business Course follows New Zealand Golf’s Love Golf initiative, which was launched in 2014, designed to tackle the perception of the sport in New Zealand and drive an increase in participation.

With 8 out of 10 golfers playing the sport on a casual basis, golf in New Zealand has evolved to facilitate Kiwis’ flexible commitment to the sport as interest grows within a younger demographic of players.

The University of Auckland Business School is thrilled to partner with New Zealand Golf to give promising business students the opportunity to learn from and network with some of the biggest names in New Zealand business, picking up skills that will be valuable for life.

“Co-curricular activities such as The Business Course offer another level to a student’s career development and the initiative is one we are very excited about at the University of Auckland,” says University of Auckland senior lecturer of marketing Dr Mike Lee

“Nearly all industry stakeholders we have spoken to state the importance of graduates that are not only book smart but also people smart. While we provide as many opportunities as possible to ensure all students get a chance to develop these soft-skills, this initiative is a truly exceptional opportunity for our students.”

“We all believe in diversity and inclusiveness. There is probably a perception that golf is a sport for middle aged white males, and that only white males do well in business. That is why it was really important for us to select a diverse group of students and, with the help of New Zealand Golf, pair them with a diverse set of mentors. Both parties want to break the stereotype that golf (and Business) is only of interest to old white men,” Lee adds.

New Zealand Golf believes that the programme will be a valuable tool in demonstrating the value of the game of golf to young people.

“Golf is a game that enriches young lives and has always been a useful sport to play in the business world. We believe the opportunity to partner with the University of Auckland Business School for this programme is invaluable,” says New Zealand Golf Chief Executive Dean Murphy.

“The Business Course will be of huge benefit to both the mentors and the students as they spend time together on the course and get to know one another away from the distractions of a busy world.”

Being able to play golf has always been an advantage in the business world but The Business Course is more than a golf game, it’s an investment in promising futures.

| A NZGolf Assoc. release  |  August 31,  2017   |||

Judges for the 2017 NZI Sustainable Business Network Awards have announced the line-up of finalists after a record year of entries.

CEO of the Sustainable Business Network (SBN) Rachel Brown says these organisations and individuals are leading the transformation to a more sustainable New Zealand.

“This year we have had the highest number of entries in the 15 years of the Awards, reflecting the growth in sustainability initiatives across New Zealand businesses.

“These Awards recognise outstanding achievement in making New Zealand a more sustainable nation. Over the years we have seen a movement from efficient resource management into real system shifts, responding to critical themes like restoring nature, renewable transport and good food.

“The quality of entries has been extremely high, so making the final round of judging is a considerable achievement.

“The finalists include small businesses, corporates and not for profits, showing that all types of organisations can make a success out of sustainability. Recognising progress is vital, and the Awards are our way of celebrating together.”

Travis Atkinson, Executive General Manager of NZI, the Principal Sponsor of the Awards, says, “We’ve been proud supporters of the Sustainable Business Network and national Awards for the last 10 years.

“As an organisation that provides business insurance for a growing New Zealand, being sustainable is really important to us - it’s fundamental to the way we do business. We’re strong believers in the SBN’s mission to inspire change and we look forward to meeting the new sustainability leaders of 2017.”

The Award winners will be announced at a black tie ceremony on 30 November at Shed 10 on Auckland’s waterfront. Tickets are now on sale.

The finalists for the 2017 NZI Sustainable Business Network Awards are: Sustainability Superstar AwardSponsored by Westpac Geoff Bold, Fisher & Paykel HealthcareBob Burnett, Bob Burnett ArchitectureGary Dalton, Te Whangai TrustJosie Evans, Excelso CoffeeAndrew Fisher, EcoStock Supplies LtdToni Hogg, Green CabsAnton Hutton, Z EnergyIan G. McLean, Toi Ohomai Institute of TechnologyJulia Milne, Common Unity Project AotearoaDee and Steve West, ChargeNet New Zealand Communicating for Change AwardSponsored by Cadence Communications Conscious ConsumersEcotricityGreen CabsMeridian EnergySustainable Winegrowing NZ / NZ Sustainability DashboardSuperhome MovementThe Better NZ TrustTrade MeWasteMINZBayfair Shopping CentreClean EventKiwi Community Assistance Charitable TrustLittle Yellow BirdMy Car Your RentalThankyou PayrollTROW GroupVerisafeWestpac Partnering for Good Award Akina FoundationAuckland Whale & Dolphin SafariBNZ and Good Shepherd NZChargeNet New ZealandDementia Auckland / WestpacFonterra / KickStart Breakfast ProgrammeKiwibank and BanqerMevo LimitedNew Zealand PostSeagull Centre TrustTake My Hands Charitable TrustThree Kings Salvage and Recovery Project Going Circular AwardSponsored by Auckland Council Auckland District Health BoardClearsite Demolition LtdEcoStock Supplies LtdEthiqueGlobal Action Plan OceaniaInnocent PackagingMashbone Dog TreatsReclaimReseneThe FormaryTrademeTROW GroupWishbone Design StudioWoolchemy NZ Ltd Efficiency Champion AwardSponsored by RicohAuckland District Health BoardChristchurch Airport Clearsite Demolition LtdFisher & Paykel HealthcareFoodstuffsKiwi Property GroupT&G Global Smarter Transport AwardSponsored by Opus International Consultants Auckland TransportBoltra LtdChargeNet New ZealandEcotricityFlip the FleetMercuryMevo LimitedNew Zealand PostWaste Management NZ LimitedYourDrive Revolutionising Energy AwardSponsored by EECA BusinessBayfair Shopping CentreChargeNet New ZealandECOLight / Kiwi Property GroupEcoStock Supplies LtdHR Cement LimitedPakaraka PermacultureReid Technology Ltd & TEAM Power LtdVector Transforming Food AwardSponsored by Yealands Family WinesCommon Unity Project AotearoaDung Beetle InnovationsEcoStock Supplies LtdGreen Spot Technologies LtdOtago LocustsPakaraka PermaculturePurebread Restoring Nature AwardSponsored by Department of Conservation Agrissentials NZ LtdAuckland Whale & Dolphin SafariGreen CabsLittle Brown Kiwi New ZealandMaungatautari Ecological Island Trust (MEIT) Real JourneysTe Whangai TrustZealandia

| A Sustainable Busness Network release  ||  August 31,  2017   |||

The Reserve Bank’s monetary policy has been an important driver in the last five years behind above-trend growth in the economy and employment, Reserve Bank Governor Graeme Wheeler said today in a speech.

Speaking to the Northern Club in Auckland, Mr Wheeler said that the New Zealand economy has generally performed well in the last five years.

“It’s been a remarkable five years, especially with the challenges thrown up by the global economy and an over-heated domestic housing market. On the international front we’ve seen increasing use of unconventional monetary policies, sluggish international trade, sharp swings in commodity prices, a continued rapid build-up in global debt, and unexpected political developments in Europe, the UK and the US.

“Back home we’ve experienced the strongest migration surge since the 1800s, probably the longest period of negative tradables inflation since the Great Depression, a 75 percent decline in dairy prices before recovering, a major shift in resources to the non-tradables sector to support the Canterbury rebuild, and annual national house price inflation reached 21 percent.”

Despite these challenges, Mr Wheeler said, GDP growth has averaged 2.8 percent and employment growth 2.5 percent. Both exceed the trend rate of growth for the period of flexible inflation targeting up until 2012. Headline CPI inflation averaged 1 percent due to 4½ years of negative tradables inflation, while core inflation averaged 1.4 percent.

“Over the past five years, the Bank’s monetary policy has been an important driver behind the rate of output and employment growth, and the path of non-tradable inflation and inflation expectations. Long-term inflation expectations remain well anchored at the target mid-point of 2 percent.”

Mr Wheeler said that New Zealand has also had a stable financial system. “LVR restrictions have reduced financial stability risks as house prices became increasingly stretched. Requiring new borrowers to have a greater equity contribution in their house purchases reduced the overall riskiness of banks’ mortgage portfolios.

“Nationwide annual house price inflation has declined to 1 percent due to LVR restrictions, the tightening in bank lending, the rise in mortgage rates and increasing concerns about housing affordability.

“LVRs are not expected to be a permanent measure, but their removal would require a degree of confidence that financial stability risks won’t deteriorate again. However, debt-to-income ratios have risen in recent years, and with the underlying drivers of housing demand (population growth, low interest rates) remaining strong and demand outstripping supply, there’s a risk of a housing market resurgence (and a sharp lift in high LVR lending) if LVRs were removed at this time.”

Mr Wheeler said that, in the absence of major unanticipated shocks, prospects look promising for continued robust economic growth in New Zealand over the next two years.

“The greatest risk we face at this stage relates to the inflated global asset prices and the continuing build up in global debt.

“If growth in the global economy slows, we have some scope to buffer our economy. We’ve greater room for monetary policy manoeuvre than central banks in many advanced economies. Our official cash rate is 1.75 percent – above the zero and negative interest rates of several advanced country central banks – and the Bank has not grossed up its balance sheet by buying domestic assets. With a budget surplus and low net debt relative to GDP, there’s also flexibility on the fiscal policy side.”

Read the speech: Reflections on the stewardship of the Reserve Bank

| A RBNZ release  ||  August 30,  2017   |||

 After being an integral part of SB Global Logistics’ business for more than two decades, DB Schenker and SB Global Logistics have entered into a definitive agreement under which DB Schenker will acquire SB Global Logistics from 24th September 2017. DB Schenker and SB Global Logistics have a longstanding relationship as network partners in New Zealand.

Mark Harrison, Director of New Zealand, DB Schenker AU/NZ commented “DB Schenker NZ has enjoyed a 20 year relationship with SB Logistics, from which we have seen both companies grow together off the back of mutual respect and confidence in service. This relationship has endured through many challenging global climates, always showing resilience and trust in achieving the foundations of our agreement. The backbone of this relationship has led us to today where we begin our process of merging the two organisations with absolute confidence given our extensive knowledge of how each work.”

With this acquisition, DB Schenker NZ will extend their presence into the South Island, strengthening their offering to customers and becoming a truly national operation. DB Schenker’s global network, now servicing both the North & South Islands, will be supplemented by SB Logistics’ local strengths adding an additional 50+ staff to the New Zealand operation along with a state of the art facility in Christchurch which opened in 2014.

“This purchase has been well thought out with due consideration to the future of SB Global Logistics business, staff and customers”, said Stephen Bateman, Director, SB Global Logistics. “SB Global Logistics Christchurch has grown over the past 27 years to become a well-respected and trusted organisation. This is a credit to a team of people who have shown tremendous dedication and resilience, and always striving to achieve a high level of service”.

The operations of SB Global Logistics Christchurch will continue ‘business as usual’ under new owners, DB Schenker, ensuring that customer requirements continue to be met. SB Global Logistics’ management team, will remain in the business and ensure a smooth transition.

About DB Schenker: DB Schenker (www.dbschenker.com) is the transportation and logistics division of Deutsche Bahn AG (www.deutschebahn.com). With 65,000 employees and about 2,000 offices in 130 countries around the world, DB Schenker is one of the world's leading providers of integrated logistics services, offering land transport, air and ocean freight as well as comprehensive logistics solutions and global supply chain management from a single source.

Schenker Australia Pty Ltd was established in 1962 in Sydney, has 1,091 employees in Australia and almost 100 in New Zealand.

| A DB Schenker/SB Global Logistics joint release  ||  August 24,  2017   |||