Dec 20, 2017  - New Zealand's seasonally adjusted current account deficit for the September 2017 quarter narrowed to $1.3 billion, Stats NZ said today. This is $183 million smaller than the June quarter's deficit and was driven by a fall in imported goods.

The current account balance records the value of New Zealand’s transactions with the rest of the world in goods, services, and income. When we have a current account deficit, it implies foreigners earn more from New Zealand than we earn from overseas economies. It is an important measure of the health of the economy.

Goods deficit smallest since June 2014

The shortfall between the value of exports and imports in the September quarter was much smaller than in the June quarter – the seasonally adjusted goods deficit was $26 million, down from the June quarter’s $437 million deficit and the smallest since the June 2014 quarter.

In the June 2017 quarter, the goods imports recorded its highest level – driven by imported vehicles. This was offset by strong exports in dairy products. In the September 2017 quarter, imports of goods fell $470 million while exports of goods fell $58 million.

"Although we still imported a larger value of goods than we exported, it is the reduction in imports that caused the smaller deficit this quarter compared with last quarter," international manager Daria Kwon said.

"Our terms of trade also reached an all-time high in the latest quarter with import prices falling more than export prices".

Overseas merchandise trade: September 2017 has more detail.

The seasonally adjusted services surplus was a steady $1.2 billion for the September 2017 quarter, $91 million narrower than for the June 2017 quarter. The seasonally adjusted goods and services surplus increased to $1.2 billion in the latest quarter – up from a surplus of $840 million in the June 2017 quarter.

Income deficit increases

The primary and secondary income balance measures the income on investments, in and out of the country, that foreign investors make in New Zealand and that Kiwis make overseas. It also includes transfers (goods, services, or money) between New Zealand and the rest of the world.

The combined primary and secondary income deficit increased $136 million in the September 2017 quarter – up to $2.5 billion.

The primary income net outflow increased $312 million in the September 2017 quarter, to reach $2.4 billion. New Zealand businesses earned less income from their overseas subsidiaries this quarter, while the income earned by foreign-owned businesses was relatively steady.

Secondary income net outflow decreased $175 million – down to $85 million in the September 2017 quarter, partly offsetting the increase in the primary income deficit. New Zealand's outflow of secondary income consists of transactions where we do not receive a financial benefit in return, mainly from foreign aid.

Annual current account deficit same level as 2016

The current account deficit for the year ended September 2017 was $7.1 billion, the same level as for the year ended September 2016. A $659 million increase in the primary income deficit was the main driver behind the current account deficit, but this was partly offset by a $378 million increase to the goods and services surplus.

For the year ended September 2017 the current account deficit as a ratio of GDP was 2.6 percent. It was 2.7 percent of GDP for the year ended September 2016. The annual current account deficit has remained between 2 and 4 percent of GDP since 2010.

| A STATSNZ release  ||  December 20, 2017   |||

Dec 20, 2017  - The New Zealand Ministry of Foreign Affairs and Trade has today released a video calling for international action against the US$425 billion annual spend on fossil fuel subsidies.

“Many countries have made political commitments to reduce these harmful subsidies, but progress has been too slow,” warns Vangelis Vitalis, Deputy Secretary, New Zealand Ministry of Foreign Affairs and Trade.

“We believe that a solution for addressing this lack of action is to drive enforceable change through the World Trade Organisation (WTO).”

Last week New Zealand’s Minister for Trade and Export Growth, David Parker, presented this proposal to the WTO at its Ministerial Conference in Buenos Aires, Argentina. A total of 11 other WTO members also gave their support.

“The WTO is the one global institution that legally binds all of the major economies in the world. It's the only place where major economies can be held to account in an enforceable way,” says Mr Vitalis. “While most of the world’s biggest contributors to fossil fuel subsidies did not give their endorsement, and we know getting these WTO members over the line will be a challenge, we believe this is a challenge worth pursuing,” says Mr Vitalis.

View the Ministry of Foreign Affairs and Trade’s short film entitled “425 billion reasons for change”, or read its long-form feature on the issue here.

425 billion reasons for change — video (external link)

425 billion reasons for change — long-form feature

| A Ministry of Foreign Affairs and Trade release  || December 20, 2017   |||

Dec 20, 2017  -  It will be a sad day for Dunedin as 85 permanent, full-time Cadbury confectionary workers end their employment with the company, effective Friday.   The loss of their jobs ends many years of collective contribution to an iconic Dunedin institution, and “there will be tears and sadness, as people realise it’s over,” says E tū delegate and Sub-branch Vice President, Teresa Gooch.

“Many will look back on years of camaraderie and really, the good times of working at Cadbury where workmates have been like family. Cadbury has been good to us. There is a real feeling of loss, so there will be grieving,” she says.

“It’s also hard for those of us who will still be working here – we know we’re next and we’re also feeling for our departing friends.

“Some have found jobs and gone already, but many others are very anxious.”

However, Teresa says people need to stay positive.

“I would urge people to have some faith about where they go from here. A lot of employers are keen to take on the Cadbury workers due to their committed work ethic, reliability and service to the company. These are wanted workers.

“As long as they’re active and positive there’s a good chance they’ll get a job somewhere.”

E tū Industry Coordinator Food, Phil Knight says the union remains concerned over the demise of many good quality jobs, especially in provincial centres like Dunedin.

“These have been good, permanent, full-time jobs and those aren’t always easy to find. We know some people are leaving Dunedin to get into jobs so it’s very disruptive,” he says.

| An E tū release  ||  December 20, 2017   |||

Dec 20, 2017 - NZX will change the price structure of the local stock market in the second half of next year as part of a new strategy aimed at reinvigorating the domestic capital market.

The Wellington-based company will bring its trading and clearing pricing model into line with global practice, which will give participants greater price transparency when negotiating brokerage and services, and stoke on-market liquidity, it said in a statement. NZX will provide details of the move when reporting its 2017 annual result in February and have the new model in place in the second half of 2018.

"NZX is committed to implementing a pricing and rule structure that better supports the needs of our customers, and is consistent with global best practice in facilitating greater on-market liquidity, and driving greater transparency for investors," head of markets development and clearing Benjamin Phillips said. "These changes will further lift the integrity of the New Zealand market."

The stock market operator has gone back to basics in a strategic reset in an effort to revive interest in the exchange and boost the level of trading done through the bourse rather than in off-market deals.

Part of the strategy refresh is to introduce a broader suite of products, and NZX today said it will consult with market participants to develop new tools to drive greater transparency and liquidity on-market and will use a system upgrade in 2019 to meet those requirements.

NZX started trialling a tailored trade pricing structure in July to attract local and international electronic trading flows. That pilot has increased on-market trading by 13 percent compared to the prior period.

The shares last traded at $1.10 and have gained 4.8 percent this year. The stock is rated an average 'hold' based on three recommendations compiled by Reuters, with a median price target of $1.18.

Source:  ShareChat  ||  December 20, 2017   |||

Dec 20,  2017  - The incoming government has hit the ground running but will face many obstacles in 2018 as it seeks to sustain a stable economy, leading New Zealand economic forecaster BERL says. The Treasury’s half-year economic and fiscal update had all the hallmarks of a sizable mini-Budget, BERL chief economist Dr Ganesh Nana says. The update confirms pre-election calculations and conclusions that, while a tight fit with little wriggle room, there are no multi-billion-dollar holes and the package is consistent with the incoming government’s self-imposed Budget responsibility rules. “The other big shift signalled by the incoming government relates to setting an infrastructure and investment spending focus for economic activity. The current cycle of New Zealand’s economic activity remains dominated by household and housing related spending. “The government projects residential investment spending growth to surge to over six percent in the 2019-20 June year and reach eight percent in the following year. Similarly, infrastructure and non-housing investment spending growth lifts 5.5 percent in the June 2018-19 year, followed thereafter by six percent and 5.1 percent annual growth rates. “This is reinforced by the mini-Budget forecasts that indicate $41.7billion of capital spending over the coming five years, compared to a pre-election figure of $30.5billion. While $5.5billion of this increase is accounted for by extra contributions to the NZ Superannuation Fund, the planned additional $5.7billion of capital spend will be a sizable impetus to building and construction activity. “This infrastructure investment and building activity are set to be the cornerstone of the growth cycle over the immediate future. Primary risks are in the capacity of the sector to sustain this level of activity growth. “This attempted shift, away from population-based demand-driven economic growth, towards a supply-side focus for activity is undoubtedly ambitious. New Zealand’s productivity debacle appears somewhat intractable – with the level of labour productivity now back to where it was 10 years earlier. “Even if successful, it will take some time for such a shift to bear fruit. In the interim there will be many obstacles, as was experienced by the Key government and its ambitious plans to lift exports to 40% of GDP.” Dr Nana says some economic commentators are making much of the collapse in business confidence. It is pertinent to note that the same business confidence indicator collapsed on the election of the Clark government in late-1999; and subsequently soared on the election of the Key government in late 2008, he says. “Real GDP growth averaged barely two percent per annum and just three Budget surpluses over the latter period (compared to over three percent per annum and nine budget surpluses over the former period). While we wouldn’t want to suggest that low business confidence causes high GDP growth, it is difficult not to question just what so-called business confidence indicators are indeed measuring. “More sobering is the concern that some businesses could talk themselves into a funk over a change of government and threaten to muddy the prospective economic horizon. “We expect the risk of a slowing in activity growth over the short term sees GDP growth for the current 2017-18 March year dip under three percent. However, driven by the upswing in government investment, we see growth back above three percent for the 2019 and 2020 March years. “We also expect the composition twist in growth to see some slowing in consumer spending growth. However, the families’ income package is expected to bolster spending countering the confidence and wealth effects of easing house price growth. “The New Zealand scene continues to be dominated by the long-standing story of high, increasing, and unsustainable private household sector debt, currently at over 167 percent of the sector’s annual disposable income,” Dr Nana says.

| A MakeLemonade release  ||  December 20,  2017   |||

Dec 20, 2017  -  SBN’s work on New Zealand’s transition to a circular economy has received a vital boost. Fuji Xerox, 3R Group and Auckland Council have become Foundation Partners of the newly launched Circular Economy Accelerator.  The announcement represents a significant investment in scaling and accelerating New Zealand’s transition to a circular economy.

SBN has been working in this area for the last few years. A circular economy is where the lifecycle of materials is maximised, usage optimised and end of life materials reutilised to create a continuous flow.

The new Circular Economy Accelerator launches today. It brings together all SBN’s work on this initiative on a new platform. It will inspire, influence and enable New Zealand organisations to benefit from this globally emergent way of thinking and working.

The new Going Circular Award at this year’s NZI Sustainable Business Network Awards was sponsored by Auckland Council. It received the most entries of any award in SBN’s 15-year history. Project lead James Griffin is delighted by the early-stage investment, which has enabled the launch of the Circular Economy Accelerator.

“This marks a significant step-change in our efforts to scale and speed up this transition,” he says. “It’s also a tribute to the foresight of the companies involved. The Circular Economy is the economy of the future, but it is emerging right now. The companies that get to grips with it early will form the next wave of global success stories.”

Projects such as the Circular Economy Model Office and the Circular Economy Opportunity for Auckland initiative will now be driven on by the Accelerator. The new resource will also provide knowledge, support, connections, events and inspiration.

Peter Thomas is Managing Director of Fuji Xerox New Zealand. He says:

“Fuji Xerox is committed to supporting a circular economy both in New Zealand and across the Asia Pacific region. At Fuji Xerox New Zealand, we believe that our Ministry for the Environment-accredited Product Stewardship Scheme is the first step to a circular economy. We take back our equipment and refurbish it to extend its life. At end of life, we recycle over 99.5% of the equipment and toner cartridges we get back.

“We believe in innovation and working in partnership with our customers and our suppliers. That's why we are delighted to be the first Foundation Partners of the Circular Economy Accelerator. It will be a platform for collaboration, knowledge sharing and inspiration to make NZ a circular economy.”

Adele Rose is Chief Executive of 3R Group. She says “We’re proud to take a leadership position along with Fuji Xerox, Auckland Council and SBN. Moving from a ‘take, make, waste’ model to a circular economy opens up an exciting new way of doing business. It brings with it a wealth of opportunities for New Zealand companies. It will take a collaborative approach, which we fully embrace as we work with small and large businesses alike on reimagining our resource use.”

Parul Sood is Auckland Council’s General Manager, Waste Solutions. She says industry-led product stewardship is a vital component in efforts to reduce the volume of commercial waste going to landfill.

“Auckland Council is committed to promoting the principles of Circular Economy. We are delighted to be partnering with SBN, Government and industry leaders in this work.”

James adds: “The circular economy represents a viable and low carbon economic solution for the world. New Zealand has the opportunity to demonstrate leadership in the inevitable transition to the circular economy from the outdated linear model.

“There are some exciting plans for 2018, including a major event and new systems innovation projects. We look forward to working with all our partners and SBN members on this.”

Go to circulareconomy.org.nz now to find out more.

| A sustainable.org release  ||  December 20, 2017   |||

Dec 19, 2017  -  Japanese-listed Itoham Yonekyu Holdings has received Overseas Investment Office approval to increase its shareholding of Anzco Foods to 100 percent, from the 65 percent it already owned. 

Anzco was New Zealand's second-largest meat company and fifth-largest exporter in 2016, with turnover of $1.5 billion and 3,000 employees. It was already 83.3 percent overseas owned, with 16.8 percent of the company held by Japanese marine products company Nippon Suisan Kaisha, known as Nissui, and the remaining 18.2 percent owned by the company's chair Graeme Harrison and management. Harrison will step down at the company's next annual meeting in March, having signalled his plans for retirement in 2015.

Itoham Yonekyu has said it won't make any significant changes to Anzco's business operations in the foreseeable future, Anzco said. Itoham, a listed company, is 39 percent owned by Mitsubishi Corp.

Anzco is part of two primary growth partnerships, the $58 million FoodPlus red meat project and the Red Meat Profit Partnership. The new government has said the future funding of the PGP programme, which is funded by government and industry, is under review.

The company said the buyout was "a strong vote of confidence in the New Zealand meat sector" and is an important part of Itoham Yonekyu's plan to grow its business internationally, especially in Asian markets outside Japan. Anzco will be able to "capitalise on synergy benefits and efficiencies from the considerable experience and networks of Itoham Yonekyu and Mitsubishi Corp", it said.

| Source ShareChat  ||  december 19,  2017   |||

Dec 19, 2017  - The Reserve Bank today released a Bulletin article by Dr Chris Hunt, ‘Independence with accountability: financial system regulation and the Reserve Bank’. This article discusses the main reasons for delegating certain financial system-related functions and objectives to an agency that sits at arm’s length from government. The article outlines the Reserve Bank’s role as New Zealand’s single integrated prudential regulator and supervisor, and the important accountability arrangements that sit alongside the tasks delegated by Parliament to the Reserve Bank. Read the article: Independence with accountability: financial system regulation and the Reserve Bank.

| A RBNZ release  ||  December 19, 2017   |||

Dec 19, 2017  - Bartercard NZ chief executive John Scott has just been appointed CEO across both New Zealand and Australia. He takes up his new dual role immediately and will split his time across both countries, while retaining Auckland as his home base.

"Bartercard International undertook a detailed review of its operations earlier this year and made the logical decision to combine the trans-Tasman operations into one business unit", says Scott, who has been with the company five years after a long career in business finance and data.

Scott joined Bartercard New Zealand as CEO five years ago and, in that time, has refocused the business with a vision and values that aim to build sales growth for members, empower Bartercard employees; and set in place a strategy to guide all decision-making and investment. New Zealand has embarked on a journey of digital transformation and is leading the way when it comes to technological advances and investment - this will remain a key focus over the next few years.

"With this foundation, we have implemented more than 100 new initiatives and developed key technology platforms to help simplify and expand trading across our network", he says. "This has led to revenue doubling in the online distribution of products and services in New Zealand in the past 12 months and we will be introducing the same systems into Australia in April next year".

Bartercard New Zealand recently celebrated 25 years in New Zealand and more than $4 billion worth of trading. The company now has 15,000 cardholders nationwide and more than 6,000 active member businesses.

For more information, or to arrange an interview with John Scott, please contact: Tina Burns, National Marketing and Communications Manager, Tel: 09 414 6809, Email: This email address is being protected from spambots. You need JavaScript enabled to view it. or Anna Herd, Senior Communications Advisor, Tel: 021 187 7090, Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

About Bartercard: Following Bartercard’s creation in Australia in 1991, Bartercard New Zealand became the first international licensee a year later. Since its inception, the Bartercard Trade Exchange has grown to more than 6,000 member businesses across New Zealand trading around $150 million worth of goods and services outside the cash economy each year. The top five sectors most active in Bartercard NZ are professional services, hospitality, automotive, construction and building, and food and drink.

Bartercard operates in New Zealand, Australia, United States, United Kingdom, France, India, South Africa and Thailand and plans to expand into Israel next. Last year, parent company BPS Technology Ltd also bought Entertainment Publications Australia and New Zealand, which produces the very popular Entertainment™ Book.

| A Bartercard release  ||  December 2017   |||

Dec 19, 2017  -  Minister Responsible for Pike River Re-entry Andrew Little has announced the appointment of Rob Fyfe as an independent advisor who will provide impartial advice on plans for the re-entry of the Pike River drift.  “The new role will provide crucial independent advice to me so I can be sure of the quality and thoroughness of the information I receive from the Pike River Recovery Agency. The role provides another safeguard for the families and the public.

“Appointing an independent advisor will ensure I have access to a third-party perspective and independent assurance about the adequacy of the Agency’s processes.

“Mr Fyfe’s background as former CEO of Air New Zealand means he is well equipped to advise on safety sensitive activities and workplace environments needing best practice risk assessment and management.

“Mr Fyfe’s other great quality as CEO of Air New Zealand was a real empathy for those who had suffered tragedy which he shared in the aftermath of the 2008 A320 crash in France.

“He also sent 30 airline personnel to assist the Pike families immediately following the disaster in 2010. The members of the Pike River Families Reference Group have expressed their support for this role and the appointee.

“I look forward to working with Mr Fyfe who takes up the role from 31 January 2018, when Te Kāhui Whakamana Rua Te Kau mā Iwa-Pike River Recovery Agency will also be formally established,” says Andrew Little.

| A Beehive release  ||  December 19, 2017   |||