Dec 7, 2017  - The government is right to raise this concern that there is a growing digital divide, NZTech chief executive Graeme Muller says in response to a digital report released yesterday.  Muller says the opportunities emerging from the rapid exponential growth of technologies like artificial intelligence, robotics, autonomous vehicles and augmented reality are fantastic for all Kiwis. Communications Minister Clare Curran yesterday released a report - Digital New Zealanders: The Pulse of our Nation - outlining the digital divide in New Zealand. She says the government will, with the assistance of a soon to be established advisory group, help determine what tech skills Kiwis need to be ready for the jobs of the future. “The Minister is right to raise this concern that there is a growing digital divide,” Muller says. “These technologies have the potential to make New Zealand more prosperous by improving access to services, helping businesses be more efficient and creating economic growth throughout the country. “Those that don’t have access to the right technologies or the skills or motivation to make the most of them are being left behind. Left unaddressed this digital divide will exacerbate the social divide. “However, if we move faster to address the growing digital divide as a country we will find that the technology will also help reduce the social divide. “Giving people the understanding, confidence and skills to use digital tools will help New Zealand prosper. “The introduction of digital technologies into the New Zealand curriculum in 2018 is a great step in ensuring all Kiwis understand digital technology and how to make the most of it. “Next week the New Zealand Digital Skills Forum group is releasing a landmark and detailed analysis of the digital skills needed by New Zealand over the coming years and the opportunities for all New Zealanders,” Muller says.

| An NZTech release  ||  December 6, 2017   |||

Dec 7,  2017  - Following on from an Employment Relations Authority (ERA) determination relating to Wendco (NZ) Limited, the Labour Inspectorate is advising businesses that have been following similar processes to take steps to meet their obligations under the Holidays Act.  “As the ERA has indicated, an easy approach for a business to take using ‘blanket rules’ to determine holiday entitlements isn’t the same as a lawful one,” says Payroll Lead Tania Donaldson.

“The use of a ‘three week rule’ by Wendco (NZ) Limited to work out entitlements around public holidays meant some employees were not being provided with their full entitlements, and the employer was not meeting their obligations under the Holidays Act.

“To work out an employee’s rights to an alternative holiday, you need to know whether the day is an ‘otherwise working day’ for the employee.

“Working out whether the day is an ‘otherwise working day’ is a practical task, and each situation needs to be considered based on the employee’s specific situation and work pattern, where employers consider and apply all of the factors of s12 of the Holidays Act where they are relevant.

“If it’s unclear whether the day is an ‘otherwise working day’, the things that may need to be considered include what the employment agreement says, the employee's usual work patterns, what the rosters say, whether the employee would normally have worked, and any other relevant factors.

“Employers who configure their payroll system in a way that is convenient to themselves without proper regard to their obligations run a high risk of being non-compliant. While these considerations may require additional effort for some businesses, this is the law and they must abide by it.

“If any employer has breached their obligations through the use of such blanket rules, they must fix their processes to prevent future breaches, and ensure they pay their employees what they’re owed for past breaches.

“This is important as when employers fail to meet their obligations, the employees working hard to sustain the business miss out on their minimum entitlements. In addition, other businesses that do properly meet their obligations face unfair competition.”

Employers who are unsure if they are meeting their obligations under the Holidays Act should go to employment.govt.nz, where there is information, tools and flow charts to help employers become compliant, seek independent legal advice, or ring MBIE’s contact centre on 0800 20 90 20.

Employees who are concerned they are not receiving their minimum entitlements can do the same.

| A MBIE release  ||  December 6,  2017   |||

Dec 7,  2017  -  Fonterra Co-operative Group Limited today reduced its forecast Farmgate Milk Price for the 2017/18 season from $6.75 to $6.40 per kgMS and updated the market on its financial results for the first three months of the 2018 financial year. Chairman John Wilson says the lower forecast Farmgate Milk Price reflects a prudent approach to ongoing volatility in the global dairy market. The GlobalDairyTrade price for whole milk powder is a big influencer of the Farmgate Milk Price and it has declined by almost 10 percent since 1 August 2017.

“While the result of the arbitration with Danone has impacted our earnings guidance for the season, it has no influence on our forecast Farmgate Milk Price,” says Mr Wilson.

“What is driving this forecast is that despite demand for dairy remaining strong, particularly in China, other parts of Asia and Latin America, we are seeing strong production out of Europe and continued high levels of EU intervention stockpiles of Skim Milk Powder.

“This downward pressure on global prices is being partly offset by the lower NZ-US dollar exchange rate,” says Mr Wilson.

“Our strong financial position, customer order book at this point in the year, and confidence in demand means that the Board is able to increase the payments made in January by 10 cents per kgMS and will hold the Advance Rate through to the payments in May.

“In effect, our farmers will receive equal or higher payments for their milk over this period than were scheduled under the previous $6.75 milk price.

Fonterra has also updated its full season New Zealand milk collection forecast due to ongoing challenging weather conditions. The Co-operative has reduced its forecast by 1 per cent to 1,525 million kgMS – the same volume as last season.

First Quarter Financial Results

Fonterra’s first quarter revenue of $4 billion is up 4 per cent on the same period last year. Sales volumes are down 20 per cent to 3.9 billion liquid milk equivalent (LME), while the gross margin of 16.7 per cent is also down.

Chief Executive Theo Spierings says the first quarter financial results were generally as expected as the Co-operative started the year with record low inventory followed by the second year of low spring milk collections from New Zealand due to wet weather.

“This has challenged our Ingredients business where we had lower volumes to sell. As a result, sales were down 19 per cent to 3.6 billion LMEs compared to the same time last year.

The gross margin in Ingredients was in line with the second half of last year. However, when we compare it to the same period last year it was down from 12.1 per cent to 8.1 per cent, mainly due to the rise in commodity prices,” says Mr Spierings.

“Our Consumer and Foodservice business continued with strong sales volumes in our key markets across both Greater China and Asia with, overall, just a 3 per cent decline to 1.3 billion LMEs in total volume compared to the record levels at the same time last year.

“Gross margin in Consumer and Foodservice was 24 per cent. While this is down on the 31 per cent in the first quarter of 2017 when input costs were lower, it is up on the gross margin percentage in the last quarter of 2017. This positive trend demonstrates we can create more value in our Consumer and Foodservice business despite higher input costs and reflects the strength of our strategy of moving more volume into higher value.”

Mr Spierings says the Co-operative expected performance to be weighted to the second half of the year and remains confident in its full year forecasts following revisions after the recent Danone announcement.

“We are focused on continued tight operational and financial discipline and a keen eye on our customers’ needs to maximise sales opportunities.”

 | A Fonterra communication  ||  December 7, 2017   |||

Dec 7, 2017  - New Zealand's burgeoning fintech sector is coming of age with the likes of the Reserve Bank thinking more deeply about the impact changing technology will have on the broader financial system.  The central bank identified the new wave of fintech as having "the potential to significantly change the structure of the financial sector" in its six-monthly financial stability report last week, singling out blockchain, crypto-currencies, application programming interfaces (APIs), big data and artificial intelligence, and digital platforms for peer-to-peer services among the most important.

Head of financial stability Bernard Hodgetts said in an interview last week that the central bank is thinking deeply about various scenarios arising from the new technology, and has identified open banking - which decentralises banking through third-party APIs - and crypto-currencies as areas where it can beef up its research.

"We've put quite a bit of thought into what sort of scenarios might lead to the core banking system suddenly facing more competition than it previously did," Hodgetts told BusinessDesk. "The core level of profitability of the system could potentially be competed away if you had some form of new entrant into the market that could take business away from the banking sector and I think the banks would be very mindful of that risk."

The Reserve Bank's decision to highlight fintech in the report follows earlier efforts by the likes of the Ministry of Business, Innovation and Employment and the Financial Markets Authority to support innovation in financial services, and the bank wants to work with other authorities to make sure it doesn't stifle digital innovation.

Continue here to read the full article on ShareChat ||  December 6, 2017   |||

Dec 7, 2017  - Health Minister Dr David Clark says he is taking action following the release of the Stage 2 findings from the Government Inquiry into Havelock North Drinking Water. “All New Zealanders should expect to have access to clean drinking water and, following this report, some will ask whether their water is safe. This report highlights that little has been done in this space for nine years,” Dr Clark says.

“The inquiry found that 80 per cent of residents have access to water which meets current standards. The inquiry raised concerns about the other 20 per cent.

“My priority, in reviewing the recommendations, remains the health of every New Zealander.

“Overall, this report raises serious concerns about oversight and infrastructure. We will be pursuing solutions to address any problems identified.

“I’ll be briefing Cabinet before Christmas on the next steps – both short and long term.”

Dr Clark acknowledged the scope of the report.

“Much of what we’re reading about today reflects yet another problem inherited from the previous Government and their nine years of neglect.

“I am expecting the Ministry of Health to take the report’s findings very seriously.

“The inquiry indicates that while drinking water standards instituted in 2007 represented international best practice at the time, since then New Zealand’s standards have not kept up with the world. This is a failure of the previous Government, and one we will take control of and address,” Dr Clark said.

The report is available here: https://www.dia.govt.nz/Government-Inquiry-into-Havelock-North-Drinking-Water

| A Beehive release  ||  December 6, 2017   |||

Related:  Havelock North - Stage two inquiry released

Dec 5, 2017  - The Government’s policy of a year’s free tertiary education for eligible students will benefit workers and business alike, says E tū.  Of the 80,000 students forecast to take up the offer next year, 50,000 are expected to enrol in NZQA accredited industry training.

In the case of industry training, eligible students will enjoy two years fee free.

“There are currently about 11,000 construction apprentices but there’s a need for another 40,000 workers over the next five years,” says E tū’s Industry Coordinator, Engineering and Infrastructure, Ron Angel.

“We should have begun training five years ago, but the next best time to start is right now, so this will certainly provide a boost for the relevant Industry Training Organisations to promote apprenticeships,” he says.

“This is an opportunity for more firms to take that jump and say, ‘yeah, I’m taking on an apprentice’, and having a go at it.”

Ron says the policy will also sit well alongside the Government’s focus on forestry and regional development.

“There are huge opportunities in forestry and the primary sector where we can add value to workers and get highly trained, highly skilled people who know there’s a future and a career ahead of them,” he says.

Electrician and E tū Executive member, Ray Pilley says the trades have been neglected for too long and anything which promotes trades to young people is good.

“I’m an electrician and I’ve been in the industry for over 30 years. I’ve had a fantastic career. It’s well paid and you’ve got a job for life.

“The old saying is true – got a trade, got it made.”

| An E tū release  ||  december 5, 2017   |||

Dec 5, 2017  -  The Government has today made good on its 100-day promise of delivering the first year of fees-free post school training and education and industry training from 1 January next year, says Education Minister Chris Hipkins.  “This Government has taken the first major steps to break down financial barriers to post-school training and education. Next year, around 80,000 people will be eligible for fees free post-school training and education.

“It comes on top of our recent announcement of $50 increases in student allowance and student loans weekly living costs limits, which will make more than 130,000 students $50 a week better off.

“The policy is a major investment in New Zealanders and the New Zealand economy.

“It’s great news for young people who are finishing school and adults who have in the past been put off because of the cost, and it provides a genuine incentive to keep learning. This government is passionate about life-long learning. “Employers have also been calling for bold forward thinking to build a future workforce with new skills to meet changing demands. That’s what this policy will deliver.

“We expect the policy to halt, and over time reverse the current trend of fewer people going into post-school training and education. We have budgeted for a 3% increase in equivalent full-time students in 2018, equating to about 2000 extra students.

“The Government has budgeted for up to $380 million in the current financial year across the fees-free policy and the $50 increases to student loans and allowances.

“Of the about 80,000 eligible students, estimates are that about 50,000 will train or study at a polytechnic, as industry trainees, at a wānanga or a PTE. The remainder will study at university.

Eligibility and implementation

Mr Hipkins said the policy details released today confirm the eligibility for fees-free in provider-based education and industry training.

“If you're a New Zealander who finished school in 2017, or if you will finish school during 2018, you qualify for a year of free provider based tertiary education or industry training in 2018. If you're not a recent school leaver, and you've done less than half a fulltime year of education or training, you also qualify,” Mr Hipkins said.

The Tertiary Education Commission (TEC) will be responsible for implementing the fees-free policy, Mr Hipkins said.

“The TEC is working with Tertiary Education Organisations (TEOs) to ensure effective implementation of the fees-free policy, minimising any extra work TEOs may have to do. The TEC has set up a fees-free website to help prospective students and trainees confirm their eligibility for free fees. The TEC is being supported by other agencies, including the Ministry of Social Development, Ministry of Education and Inland Revenue.

“I appreciate that enrolled and prospective learners have had to wait some time before seeing the final details of the fees-free policy and I thank them for their patience; however, I’m sure learners will be happy with the result,” Mr Hipkins said.

More information for prospective students and trainees is at the fees-free website www.feesfree.govt.nz.

Further information for tertiary education providers and industry training organisations is available on the TEC’s website – www.tec.govt.nz.

The Government is committed to being transparent about how it develops and implements its policies. Cabinet papers on the Fees Free and student support costs polices are at: http://education.govt.nz/ministry-of-education/information-releases/100-days.

| A Beehive release  ||  December 5,  2017   |||

Dec 5, 2017  -  The grounding of one of the world’s biggest container ships off Southampton was caused by pilot error, an investigation has concluded.  In a report, the UK Marine Accident Investigation Branch found standards of navigation, communication and use of electronic charting aids “did not meet the expectations of the port or the company”.

The 399m Vasco de Gama, at the time the largest ship under a UK flag, ran aground in August 2016 as it attempted a tricky turn to enter Southampton docks.

Continue here to read the full article ||  December 5, 2017   |||

DEc 5, 2017  - Inflation in New Zealand and world-wide has been persistently low since the 2008 global financial crisis, partly because of factors such as globalisation, the growth of China, the rise of the digital economy, and low inflation expectations.  In a speech today to the Institute of Directors, in Auckland, Reserve Bank Governor Grant Spencer said that persistently low inflation has prompted the Reserve Bank to think about whether it needs to tweak it’s approach to monetary policy. Mr Spencer explained a number of significant changes over the past decade have affected the outlook for inflation:  · Globalisation over the past 10 years has led to outsourcing of labour-intensive production to cheaper locations, which has lowered the price consumers pay for a wide range of goods and also placed    downward pressure on wages for lower-skilled jobs in advanced economies.  · The scale and growth of China’s economy has also had a profound effect. China has become the largest exporting nation in the world and its expansion of capacity has restrained the prices of industrial materials and a wide range of manufactured goods.  · New digital distribution channels and falling prices for ICT equipment have lowered import prices and reduced barriers to entry across a range of markets. Online competition in retailing, financial services, travel services, education and health has significantly altered the competitive landscape and put downward pressure on prices.  · The domestic economy has become more integrated with global markets, resulting in greater competition in traditionally sheltered sectors. Increased international labour mobility has been an important driver.  · Low inflation expectations have influenced the way businesses set prices and wages, adding further momentum to low inflation. These global trends appear to be changing the nature of the price formation process in New Zealand. “These factors may be reducing the leverage monetary policy has over inflation, although their persistence and impact on inflation in New Zealand remain uncertain,” Mr Spencer said. Monetary policy has less than fully offset the weakness in imported inflation which was not expected to be so persistent and has been overlaid with uncertain commodity price movements. The on-going shock has resulted in CPI inflation running below the 2% target mid-point. The policy response has been consistent with our flexible inflation targeting framework. More recently we have been assuming greater persistence in low global inflation and this is contributing to our current flat track for future OCR levels. “The changes in domestic pricing behaviour are causing our flexible inflation targeting approach to become more flexible. In pursuing our long term price stability objective, relatively more weight is being attached to output, employment and financial stability. However, this can only be sustained if monetary policy’s long term price stability credentials are maintained” Mr Spencer said. Read the speech: Low inflation and its implications for monetary policy

| A RBNZ release  ||  December 5,  2017   |||

Dec 5, 2017  -  Residential building activity volumes rose 4.1 percent in the September 2017 quarter, following a relatively flat period in the first half of the calendar year, Stats NZ said today. This figure excludes the effects of higher construction costs and typical seasonal patterns.  Non-residential building work, from office blocks to factories, also picked up, rising a seasonally adjusted 0.6 percent, following falls in the previous two quarters.

Combined, total building activity volumes rose 2.7 percent in the September 2017 quarter compared with the June 2017 quarter.

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Percent changeResidential and non-residential building work put in place, seasonally adjusted percentagechange in quarterly volumesResidential buildingsNon-residential buildingsSep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17-505-1010Stats NZJun-16● Non-residential buildings: 4.6

“Residential building activity is at a record high, while non-residential activity peaked in late 2016,” construction statistics manager Melissa McKenzie said.

“While the volume of residential building activity is at a record high, the number of new homes consented was higher in the mid-1970s and 2004. This may reflect that homes and alterations being built now are often bigger, more complex, and subject to different regulations.”

These quarterly statistics are a measure of past building activity, whereas building consents issued, which showed a decrease in the October 2017 month, is an indicator for the pipeline of upcoming building work.

| A StatsNZ release  ||  December 5,  20127   |||