Founded by Max Farndale 1947 - 2018
The Taxpayers’ Union can reveal that over $7 million of taxpayer money has been spent on the power bills of 94 of New Zealand’s largest companies since July 2014. The Energy Efficiency and Conservation Authority’s (EECA) ‘large energy users programme’ provides funding to businesses, in an attempt to encourage them to reduce energy use. Of this $7 million, more than $1 million has been wasted on 'initiatives' which haven't recorded any energy savings to date. Taxpayers’ Union Researcher, Matthew Rhodes says, “Taxpayer money doesn’t need to be spent telling the country’s largest power users to save power. All of these companies pay millions for power, and have every interest as it is to lower their energy use.” “If the EECA don’t think that the corporations at the big end of town aren’t looking at how electricity costs can be saved, they are delusional. Most of these corporates are buying electricity off the spot market or have hedging arrangements. They are anything but unsophisticated consumers requiring the help from bureaucrats.” “This whole regime is a little bit of a rort. Electricity users are levied so that officials can tell people to use less power, meanwhile, people rightly scratch their heads about why electricity is so expensive.”
"We asked how much money has been recovered from companies where taxpayers' money has been thrown at projects where the promised energy savings cannot yet be demonstrated, and it appears that not a single dollar has been recovered." “At best, it’s a waste of money and pointless, at worst, it is corporate welfare in an environmental jacket, paid for by kiwis who have to pay more to turn on their heater.” A response to the Official Information Act request shows:
More information can be obtained on EECA’s website: https://www.eecabusiness.govt.nz/funding-and-support/support-for-large-energy-users/
The relevant information released to the Taxpayers' Union under the OIA is available at: http://www.taxpayers.org.nz/corporate_power_bill_welfare
| A Taxpayers Union release || July 18, 2017 |||
A large improvement in New Zealand’s net foreign liabilities as a share of GDP since 2009 makes the economy less vulnerable to shocks, Deputy Governor Geoff Bascand said in a speech today. “New Zealand’s net foreign liabilities – what we owe to the rest of the world, broadly speaking – reached nearly 85 percent of GDP at the start of 2009 but now they are down to 58.5 percent of GDP, their lowest level since the late-1980s,” Mr Bascand said. “New Zealand has become less reliant on offshore funding over the past decade, and the maturity of bank borrowing has lengthened, reducing the risks from a potential funding shock,” he said. The liquidity policy introduced by the Reserve Bank in 2010 has contributed to this improvement. The decline in New Zealand’s net foreign liabilities (NFL) partly reflects low global interest rates that have reduced the interest payments on our overseas debt, and high equity prices that have boosted the value of our overseas assets. More significantly, a better balance between national saving and investment during the current economic expansion has helped contain the current account deficit and lowered the ratio of net foreign liabilities to GDP. “Although some of the macroeconomic factors that have driven the improvement in our NFL position are potentially more transient or fortuitous than others, the higher domestic saving and financing of investment augurs well for the durability of the current growth phase.” However, Mr Bascand warned that New Zealand’s net foreign liabilities as a share of GDP is still relatively high internationally, especially given our exposure to commodity exports that can be subject to large price swings. “Significant uncertainty remains regarding household behaviour and the contribution of the sector to New Zealand’s saving-investment gap, and the extent that banks as intermediaries might increase their reliance on offshore funding. “Borrowing from the rest of the world isn’t automatically ‘bad’. It can be a good thing if it leads to productive investment that enhances our economic performance and leads to high per-capita incomes over time, but debt-fuelled consumption is less sustainable. “Much of the investment undertaken by the household sector is in the form of new house builds and renovations to existing homes. If housing demands cannot be met by increased household sector or domestic saving more broadly, it will be reflected in a deterioration in our NFL position.” Mr Bascand said that banks have recently begun to compete more aggressively for deposits and tighten lending standards, which should help alleviate offshore funding pressures and prevent a significant increase in NFL. “Relying on non-residents to fund investment makes the financial system vulnerable to changes in the availability or cost of that funding. That vulnerability may be exposed in times of acute financial stress, with financial institutions’ access to funding cut off or available only at much higher interest rates. “As always, the Bank will be monitoring these developments closely. We welcome the improvement in New Zealand’s net foreign liabilities since the GFC, but do not see it is a reason to become complacent,” Mr Bascand said. More information:· Speech: New Zealand’s net foreign liabilities: What lies beneath, and ahead?· Audio: listen to the excerpts of the speech on Soundcloud
| A RBNZ release || July 17, 2017 |||
MIL OSI – Some of New Zealand’s largest businesses are lagging behind their international counterparts in their levels of corporate social responsibility (CSR) according to new data.
The research which measured CSR performance across more than 17,000 businesses globally found New Zealand companies ranked just 33 out of 36 countries across the CSR criteria of community, employees, governance and environment.
New Zealand general manager of GSK Anna Stove says Kiwi companies are potentially missing opportunities from a growing, ethically conscious market, and at the same time have an obligation to support social causes beyond their immediate interest in short-term profits.
“Increasingly, CSR information is used by customers, suppliers, employees and investors to make socially responsible decisions about who to buy from, transact with, work with and invest in.
“It is becoming essential for businesses to extend the traditional measurement of their financial outcomes to include a degree of their social impact as an indicator of performance – in other words, create a double bottom line,” she says.
Stove says organisations can’t commit to sustainable social investment unless they are profitable.
“While business scale helps provide the resources required for major ethical initiatives, it is the development of an organisational mindset that is the real prerequisite we need to effect change,” she says.
Stove says CSR has now evolved to become a key consideration for prospective employees and this trend is being driven by a demographic shift in the employment market.
“Millennials are expected to make up half of the global workforce by 2020 – and this generation more than others, is seeking a social conscience in the companies they work for.
“Ten years ago, a job candidate would talk about their interest in the products the business sells during an interview, while today the focus is on a company’s work in the community – this marks a major shift in one of the primary drivers of employment decisions,” she says.
Stove says that more research is needed to determine why New Zealand ranked below other markets in the latest study.
“While there could be a number of methodological reasons why NZ companies performed at this level that are difficult to identify, the results are a timely reminder for our organisations to assess their investment in CSR.
“If our corporate efforts don’t support our approach to marketing New Zealand’s identity, we will start to see an erosion of our nation’s brand equity. That’s something that will affect our tourism market but also other key parts of our economy like the agricultural sector which seek a premium for our food products,” she says.
She says it’s important to ensure that when an organisation develops their double bottom line strategy that the chosen causes align with the company’s values.
“Locally we are investing in the health and wellbeing of Kiwi children is important to us, which is why we invest in children’s charities, including suicide prevention which has seen us fund Youthline’s support line for two decades, as well as KidsCan and Save the Children working to address child poverty,
Stove says GSK’s global partnership with Save the Children combines scientific expertise and resource with the charity’s on-the-ground knowledge and the organisations aim to save the lives of 1 million children in some of the world’s poorest countries.
“Choosing the right charities to align with is a critical part of getting buy-in from your team and stakeholders. The first step is to conduct due diligence on the organisation, then look at making a long term social investment.
“The aim should be to develop a true partnership which is sustainable as charities may struggle if a supporting partner providing a significant annual donation drops out,” she says.
Stove believes at the same time, contributions must go beyond the financial.
“For employees to feel connected to the company’s social efforts it’s important for them to have direct contact with the charity which can be achieved by giving staff time off to support the organisation,
“Developing a connection with socially positive projects helps employees come to work with a sense of purpose,” she says.
Notes:
Data for the study was sourced through CSRHub, the world’s largest sustainability business intelligence database. Across the 17033 countries and 133 countries included in the analysis, only those markets with data from more than 25 companies were included in this study. This included 39 New Zealand listed companies.
| A NewsLive release || July 16, 2017 |||
The Reserve Bank has started a public consultation about what type of financial instruments should qualify as bank capital.
Capital regulations address not only the minimum amount of capital that banks must hold, but also the type of financial instruments that qualify as capital. The consultation that starts today is about the nature of financial instruments that are suitable, rather than the amount of capital.
Important considerations for regulations about bank capital include: the Reserve Bank’s regulatory approach; the resolution regime in the event of a bank facing difficulties; international standards issued by the Basel Committee on Banking Supervision; the Reserve Bank’s experience with the current capital regime; and the fact that dominant participants in the New Zealand banking market are subsidiaries of overseas banks. The consultation paper discusses these issues and outlines five options for reforming existing regulations.
The Bank’s proposed reforms to capital regulations aim to reduce the complexity of the regulatory regime; provide greater certainty about the quality of capital that banks hold; and reduce the scope for regulatory arbitrage.
The consultation closes at 5pm on Friday 8 September. More information:· Consultation paper: What should qualify as bank capital? Issues and Options· Review of the capital adequacy framework for registered banks
|A RBNZ article || July 14, 2017 |||
The Reserve Bank of New Zealand and the Ministry of Business, Innovation and Employment have started a public consultation on the implications for New Zealand of foreign margin requirements for over-the-counter derivatives. New Zealand has no margin requirements in over-the-counter derivatives, but several banks registered to operate in New Zealand will likely have to comply with margin rules being implemented in foreign jurisdictions. Margins is collateral exchanged by derivative market participants in order to protect against the risk posed by credit exposures and to reduce the risks of financial market contagion if a derivative contract counter-party defaults. Some features in New Zealand laws that cover statutory management and creditor priorities could impede the prompt and free availability of margin provided by New Zealand banks, potentially impairing banks’ access to derivative products and markets they use for funding and hedging. Addressing the issue can help to protect and promote the soundness, efficiency and global integration of New Zealand’s financial sector. The consultation identifies specific impediments in New Zealand insolvency laws and proposes a number of targeted legislative amendments to address them. The consultation seeks stakeholder’s views on the scope of the issues identified, and the adequacy and effect of the amendments proposed. The consultation closes on Thursday 24th August. Consultation paper: NZ Response to Foreign Margin Requirements for OTC Derivatives
| A RBNZ release || July 13, 2017 |||
The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions, completed during June 2017, shows total sales in May 2017 decreased 2.34% (year on year export sales decreased by 5.68% with domestic sales increasing by 10.99%) on May 2016.
In the 3 months to May, export sales decreased an average of 14.4%, and domestic sales increased 7.1% on average.
The NZMEA survey sample this month covered NZ$251m in annualised sales, with an export content of 77%.
Net confidence fell to 25, down from 40 in April.
The current performance index (a combination of profitability and cash flow) is at 98.7, up from 97.7 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 100, up from 98 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 104.2, down on the last result of 105.7. Anything over 100 indicates expansion.
Constraints reported were 60% markets and 40% skilled staff.
A net 10% reported productivity improvements in May.
Staff numbers decreased 2.28% year on year in May.
Supervisors, tradespersons and managers, reported a moderate shortage, while professional/scientists and operators/labourers showed a minor shortage.
“This month’s domestic sales improved on April’s results, showing growth of 10.8% on May 2017. Despite the negative result seen last month, domestic sales have experienced a largely positive growth trend in the last year. In the three months to May, there was an average monthly growth of 7.1% on the same months last year.” Said NZMEA Chief Executive Dieter Adam.
“Export sales, on the other hand, experienced another month of decline, -5.7% on May 2016, reinforcing the general negative trend felt over the last year. In the three months to May, average monthly sales decreased 14.4% on the same months last year.
“Export sales results were also reflected in the recent Overseas Merchandise Trade numbers from stats New Zealand. For example in May, both mechanical machinery and equipment and electrical machinery and equipment experienced decreases in export sales values on May 2016.
“Finding skilled staff has become a larger issue for manufacturers in May, with the skilled staff constraint having the highest value since February 2008, at 44%. It was commented by respondents that tradespeople are of particular need – a sentiment that was shared by a number of companies at a recent NZMEA event with the Prime Minister.
“Industry and Government need to work together to improve our education system and industry training to start to address these skill shortages that hold Kiwi manufacturers back. This can be done – there are a number of examples around the world of such skill shortages being address effectively, such as Germany.” Said Dieter.
For analysis tables and graphs, click here.
| An NZMEA release || July 13, 2017 |||
Today The Fletcher School at Tufts University in Boston released their latest Digital Evolution Index which, again, puts New Zealand as a standout nation. The report identifies New Zealand as among the digital elites characterised by high levels of digital development and a fast rate of digital evolution.
"I am delighted to see that New Zealand is, for the second time, at the top of the world when it comes to the outstanding progress we have achieved in providing government services to our citizens via digital platforms.
“The Digital Evolution Index reflects the hard work we’ve been doing over the past few years on government’s digital transformation, and in creating an enabling environment that fosters innovation and active collaboration between agencies and the private sector to provide better public and private services for New Zealanders.
“Our appetite for innovation has resulted in digital solutions that benefit people from all walks of life. It raises the bar for providing New Zealanders with services – both from government and the private sector – that are available digitally and on demand," says Minister for Internal Affairs Peter Dunne.
The report also reinforces New Zealand’s position as a digital leader. Along with other D5 nations the United Kingdom, Estonia and Israel, New Zealand has been named in the report’s “digital entrepôt” standout group.
This group is described as ‘among the best positioned to compete by establishing a self-reinforcing ecosystem, fostering smart societies of the future, attracting global investments and talent, creating a demonstration effect for the rest of the world as to what the future might look like, and exporting their digital innovations around the world’.
“It’s great to know that our efforts to deliver better public services through digital transformation are being acknowledged as among the best in the world by esteemed international bodies and researchers.
“We’ve made great progress in our digital journey by making it easier for New Zealanders to access services when and where they need it, but we must not rest on our laurels.
“We must continue to innovate and harness the power of digital solutions to build on our gains and deliver even better services to New Zealanders," Mr Dunne said.
The Fletcher School at Tufts University latest Digital Evolution Index report can be found here: https://sites.tufts.edu/digitalplanet/files/2017/05/Digital_Planet_2017_FINAL.pdf
Peter Dunne -Internal Affairs
| A Beehive release || July 13, 2017 |||
The Commerce Commission has received a clearance application from Trade Me Limited (Trade Me) to acquire up to 100% of the shares in Limelight Software Limited, trading as Motorcentral.
Trade Me is an online marketplace and classified advertising platform, based in New Zealand. Relevant to the acquisition, Trade Me operates the "Trade Me Motors" business division, which includes: Trade Me Motors' provision of online vehicle classified advertising; AutoBase (an online vehicle classified advertising website); DealerBase (aggregator software for motor vehicle dealers); and MotorWeb (a provider of motor vehicle information and reports).
Motorcentral supplies software and websites to motor vehicle dealers. Motorcentral's primary business is the provision of dealer management system software
A public version of the clearance application will be available shortly on the Commission’s Clearances Register.
| A Commerce Commision release || July 12, 2017 |||
Engineering, IT and sales are just three of the skills sought by the 48% of employers in New Zealand who say they’ll increase permanent staff levels in the year ahead.
According to recruiting experts Hays, vacancy activity will also be evident in operational management, construction, marketing, human resources and office support.
“Improved market conditions across New Zealand are leading to increasing vacancy activity,” says Jason Walker, Managing Director of Hays in New Zealand. “The industrial and construction sectors are major drivers thanks to large infrastructure projects, while general business confidence and a strong economic trading environment are seeing market growth and associated job creation.
“As a result, candidates with skills in demand are now in short supply. While candidates are available, it is highly skilled and experienced professionals who are needed.
“With increased vacancy activity, natural attrition has risen. We’re also seeing more new roles created as headcounts grow.”
These findings were revealed in the recruiter’s annual Hays Salary Guide, and are supported by its latest Hays Quarterly Report, covering the July to September 2017 quarter and released today, which shows demand for a wide range of skills. These include:
For more on the skills in demand, please see the Hays Quarterly Report at www.hays.net.nz/report
The Reserve Bank has developed a short video to help the public identify the ‘real deal’ Brighter Money banknote. The video explores the banknote’s sophisticated security features, showing the public how to identify a genuine banknote by the ‘look, feel and tilt’ sensory approach used by other central banks to identify a counterfeit. “Being able to identify a real New Zealand Series 7 Brighter Money banknote is important to maintaining New Zealand’s low counterfeit rate,” says Reserve Bank Head of Currency, Property and Security Steve Gordon. "New Zealand has a low counterfeit rate by international standards and the Bank wants to keep it that way. One of the ways we can do this is by ensuring the public know how to identify the security features on our banknotes. Use the video’s three prompts - look, feel and tilt, to make sure your banknotes are the genuine article.” In addition to the new video, the notes and coins pages of the banknotes have been updated to make them easier to read, navigate and find information. The video is available in English and Te Reo Māori. More information
| A RBNZ release || July 12, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242
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