The Latest from Business https://www.newstalkzb.co.nz/news/business/ NZME Keep up with the latest in business and financial sector news with Newstalk ZB. 2024-03-29T08:11:30.737Z en Fallen crypto mogul Sam Bankman-Fried sentenced to 25 years in prison https://www.newstalkzb.co.nz/news/business/fallen-crypto-mogul-sam-bankman-fried-sentenced-to-25-years-in-prison/ https://www.newstalkzb.co.nz/news/business/fallen-crypto-mogul-sam-bankman-fried-sentenced-to-25-years-in-prison/ Crypto entrepreneur Sam Bankman-Fried was sentenced Thursday to 25 years in prison for a massive fraud on hundreds of thousands of customers that unraveled with the collapse of FTX, once one of the world’s most popular platforms for exchanging digital currency.  U.S. District Judge Lewis A. Kaplan delivered a blistering analysis of Bankman-Fried and his crimes before announcing a sentence that was half of what prosecutors sought and less than a quarter of the 105 years recommended by the court’s Probation officers.  “There is absolutely no doubt that Mr. Bankman-Fried’s name right now is pretty much mud around the world,” Kaplan said of the 32-year-old man who once seemed atop the cryptocurrency world before his businesses collapsed in November 2022, leaving customers, investors and lenders short over $11 billion, which the judge ordered him to forfeit.  He was convicted in November of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.  Kaplan imposed the sentence in the same Manhattan courtroom where, four months previously, Bankman-Fried testified that he had intended to revolutionize the emerging cryptocurrency market with his innovative and altruistic ideas, not steal. The judge said Bankman-Fried repeatedly committed perjury when he told lies from the witness stand.  Kaplan said the sentence reflected “that there is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all.” He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time.”  Kaplan said he would advise the Federal Bureau of Prisons to send Bankman-Fried to a medium-security prison near San Francisco because his notoriety, his association with vast wealth, his autism and social awkwardness are likely to make him especially vulnerable at a high-security facility.  Assistant U.S. Attorney Nicolas Roos had recommended a prison sentence of 40 to 50 years, saying it was the only way to ensure “the defendant doesn’t do it again.”  “The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” prosecutors had said in a court filing.  Prosecutors said Bankman-Fried misappropriated billions of dollars to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, bribes to Chinese officials and private planes.  Kaplan agreed with prosecutors Thursday that Bankman-Fried should not get leniency just because some investors and customers might get some of their losses back. He noted that customers lost about $8 billion, investors lost $1.7 billion and lenders were shorted by $1.3 billion.  Given a chance to speak, Bankman-Fried stood and apologized in a rambling statement, saying: “A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage.”  He added, “My useful life is probably over. It’s been over for a while now, from before my arrest.”  Bankman-Fried, wearing his khaki-colored prison uniform and chained at the ankles, seemed to briefly get emotional as he spoke for about 20 minutes, expressing regret about “a lot of mistakes” but casting some of the blame onto others. His trademark messy and bushy hair had returned from the trimmer look he displayed at trial.  The judge later criticized those remarks, saying he expressed “never a word of remorse for the commission of terrible crimes.”  Defense lawyer Marc Mukasey said his client was misunderstood.  “Sam was not a ruthless financial serial killer who set out every morning to hurt people,” Mukasey said. “Sam Bankman-Fried doesn’t make decisions with malice in his heart. He makes decisions with math in his head.”  Bankman-Fried’s attorneys, friends and family had urged leniency, saying he was unlikely to re-offend again. They also said FTX’s investors have largely recovered their funds — a claim disputed by bankruptcy lawyers, FTX and its creditors.  “Mr. Bankman-Fried continues to live a life of delusion,” wrote John Ray, the CEO of FTX who has been cleaning up the bankrupt company. “The ‘business’ he left on November 11, 2022 was neither solvent nor safe.”  Two weeks ago, Mukasey attacked a probation office recommendation of 105 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”  He urged the judge to sentence Bankman-Fried to a term of five to 6 1/2 years in prison, which Mukasey said was a fair reading of federal sentencing guidelines.  Bankman-Fried was worth billions of dollars on paper as the co-founder and CEO of FTX, which was the second-largest cryptocurrency exchange in the world at one time.  FTX allowed investors to buy dozens of virtual currencies, from Bitcoin to more obscure ones like Shiba Inu Coin. Flush with billions of dollars of investors’ cash, Bankman-Fried took out a Super Bowl advertisement to promote his business and bought the naming rights to an arena in Miami.  But the collapse of cryptocurrency prices in 2022 took its toll on FTX, and ultimately led to its downfall. FTX’s hedge fund affiliate, known as Alameda Research, had bought billions of dollars of various crypto investments that lost considerable amounts of value in 2022. Bankman-Fried tried to plug the holes in Alameda’s balance sheet with FTX customer funds.  Three other people from Bankman-Fried’s inner circle pleaded guilty to related crimes and testified at his trial.  The biggest name among the three was Caroline Ellison, once the girlfriend of Bankman-Fried. Ellison described Bankman-Fried as a calculating individual who knew that he was likely committing crimes when he directed the use of customer funds. Two other onetime friends of Bankman-Fried, Gary Wang and Nishad Singh, also testified they felt they were directed by Bankman-Fried to commit fraud.  2024-03-28T20:37:18.554Z TVNZ cuts: Staff rally outside broadcaster’s Auckland HQ in opposition to proposed cancellations https://www.newstalkzb.co.nz/news/business/tvnz-cuts-staff-rally-outside-broadcaster-s-auckland-hq-in-opposition-to-proposed-cancellations/ https://www.newstalkzb.co.nz/news/business/tvnz-cuts-staff-rally-outside-broadcaster-s-auckland-hq-in-opposition-to-proposed-cancellations/ Television New Zealand (TVNZ) staffers are rallying outside the broadcaster’s Auckland HQ today in a bid to save Sunday, Fair Go and the Midday and Tonight news shows from being pulled off air. About 100 protesters gathered in opposition to the cancellations, which are part of widespread job cuts as TVNZ battles a big drop in traditional TV advertising revenue as audiences move to digital platforms. Up to 68 jobs, including about 35 in news and current affairs, are being axed. Sunday presenter Miriama Kamo told the Herald as journalists, they don’t want to be on the other side of the microphone and it felt unusual. Miriama Kamo outside TVNZ HQ. Photo / Sylia Whinray “Diversity in our sector is really important and we need to make sure that every voice has the chance to tell stories on behalf of every voice in our country. And the fourth estate is a very important pillar of our democracy, and I’m not sure how much that’s understood by our power brokers.” Kamo said Sunday was the last long-form current affairs show of its kind, and once it goes, there will never be anything like it again. TVNZ staffers outside the organisation's HQ. Photo / Sylvie Whinray “It’s changed laws, it’s saved lives. It has been there to reflect back to our country who we are so allow people to tell their stories. We have a diverse range of reporters who are able to speak to a diverse part of our community. So that’s why it’s really important that we keep it.” Fair Go reporter and presenter Garth Bray fronted the chant, “Save our stories, save our news” and spoke of feeling sick and angry about the prospect of potentially being one of the last Fair Go reporters. “You can be sad that you are losing your job, and you can be really sad that your friends are losing their jobs. But the idea that we are losing something as precious as a programme that people invoke every day in this country when they’re getting a raw deal, that makes me a little bit sick and a little bit angry.” Bray told the Herald they wanted to hold the rally because TVNZ were making big decisions about their future, so the staff wanted to leave the broadcaster in “no doubt” that they cared. Garth Bray. Photo / Sylvie Whinray During the event, Bray held a long paper roll filled with thousands of names who have signed a petition opposing the job and show cuts. “The fact that I don’t recognise them means they’re not blood relatives or friends,” he joked in response to what he made of the around 12,000 signatures. Some jobs at the broadcaster’s digital youth news platform Re: are also on the chopping block. Re: News journalist Baz Macdonald said he grew up watching the way news is told fall away and long-form journalism was on the precipice of following suit. Baz Mcdonald speaking to the crowd outside TVNZ. Photo / Sylvie Whinray “We lose those foundational skills, we don’t get it back. Generations to come of New Zealanders will not have this crucial way of having their stories told. Of holding power to account, of uplifting the voices of vulnerable people in a way that’s more than just a five-second grab.” Consultation is currently under way and is set to wrap up around mid-April. Katie Harris is an Auckland-based journalist who covers social issues including sexual assault, workplace misconduct, crime and justice. She joined the Herald in 2020.  2024-03-28T01:04:26.000Z How April 1 changes to minimum wage, benefits and superannuation could affect you - The Front Page https://www.newstalkzb.co.nz/news/business/how-april-1-changes-to-minimum-wage-benefits-and-superannuation-could-affect-you-the-front-page/ https://www.newstalkzb.co.nz/news/business/how-april-1-changes-to-minimum-wage-benefits-and-superannuation-could-affect-you-the-front-page/ As Kiwis struggle with the cost of living, a variety of cash boosts and tax changes are coming into effect on April 1 that could provide a helping hand - or further sting your back pocket.  From Monday, Kiwis will see increases across various payments that are set by the Government, including:  - The adult minimum wage will increase by 2 per cent, to $23.15 an hour.  - The Family Tax Credit - known as Working for Families - will increase by $8 a week from $136.94 to $144.30 after tax for the eldest child and from $111.58 to $117.56 for subsequent children.  - The Best Start tax credit will increase by $4 from $69 to $73.  - Interest deductibility changes come into effect, allowing landlords to claim 80 percent of their interest costs from their tax bills.  - The Annual General Adjustment for main benefits will also see an increase of between 4.66 per cent and 5.28 per cent, according to Work and Income. 370,977 people were receiving a “main benefit” in the week ending March 15.  - A single person on Jobseeker Support without children will see their benefit go from $337.74 to $353.46 a week, while a couple will receive $601.46 a week or $300.73 each, up from $574.70 total or $287.35 individually.  - The Sole Parent Support benefit goes from $472.79 a week to $494.80. A couple with one or more children will receive $635.10 together, up from $606.86.  - Pensioners living alone will receive $1038.94 in New Zealand Superannuation a fortnight, while couples who both qualify will receive $1598.36. That’s an increase of $46.20 and $71.68 respectively. Figures from June 2023 show 883,239 people were receiving superannuation.  However, in amongst those boosts, a new charge and a new tax increase will also come into effect.  - Road user charges will be introduced for full or battery electric vehicles, working out at $76 per 1000km, and for plug-in hybrids at $38 per 1000km.  - The trust tax rate goes up from 33 per cent to 39 per cent to match the top personal tax rate, though trusts earning less than $10,000 a year will be exempt under proposals from the Government.  Speaking to The Front Page about these changes, NZ Herald business editor at large Liam Dann said that the trust changes bring a “degree of fairness” to them.  “A lot of wealthy people have the ability with access to lawyers and accountants to create trusts to effectively keep their money in an entity, which allows their family over time to benefit, but if it means avoiding tax, that other people have to pay who don’t have those trusts, I think it probably isn’t fair.”  Dann said it is trusts that make a profit and keep the money in the trust that would be taxed, as anyone who is paid money from their trust would be taxed at their own personal tax rate anyway.  “The last Labour Government was looking at basing the minimum wage rises on either inflation or wage rises, whichever was the larger. This Government is taking a tighter approach and is basically saying we are going to index it to inflation, which of course should be coming down, and should eventually be around 2 per cent. And so that means it’s going to be a smaller increase over time for some people.”  Dann said that questions remain at a macroeconomic level what these changes could do for the economy as it battles inflation, or for the tight Government accounts.  “Obviously they are a bit tighter than they would have been if Labour was in charge, but maybe a bit less inflationary. The difficulty is right now that when we’re trying to get inflation out of the economy. Anything a government does to ease the pain by actually just handing money back to people is going to get spent in the economy and is going to add to inflation.”  Listen to the full episode for a full breakdown on the changes coming on April 1.  The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.  You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.  2024-03-27T18:16:20.177Z Sanitarium axing 49 jobs as it discontinues some cereals https://www.newstalkzb.co.nz/news/business/sanitarium-axing-49-jobs-as-it-discontinues-some-cereals/ https://www.newstalkzb.co.nz/news/business/sanitarium-axing-49-jobs-as-it-discontinues-some-cereals/ Breakfast food maker Sanitarium is proposing axing 49 jobs as it ceases production of a number of its cereals. Sanitarium Muesli, Granola, Light ‘n’ Tasty, Honey Puffs, Weeties, Weet-Bix Clusters, Cluster Crisp and Puffed Wheat will all be discontinued by June 2025. The company is planning to streamline its product ranges to focus on its Weet-Bix, Weet-Bix Bites and UP&GO brands. Popular products Skippy Cornflakes, Ricies and Marmite will also continue to be made. Michael Barton, Sanitarium general manager (New Zealand), said muesli, granola, clusters, Light ‘n’ Tasty and puffed cereals represent just 10 per cent of sales and have been declining steadily over several years. “The breakfast market is changing, and we have seen a global move away from some cereal formats. We need to align our production with evolving consumer appetites and demand trends,” Barton said. “If the proposal proceeds, it would mean the loss of 49 roles across manufacturing, logistics and head office.” Barton said the granola, muesli, puff and flake cereal production lines, which Sanitarium started producing product on in the 1940s, required a $28 million building and plant upgrade to sustain production. However, this was not viable, he said. The soon-to-be discontinued products will remain available in most major supermarkets or individual and bulk food services until mid-next year. “We are like a family at Sanitarium and considering this proposal was tough,” Barton said. “We are committed to supporting and caring for all our employees... if the proposal goes ahead, staff impacted by the change would receive full entitlements, financial and personal counselling support, along with career support and advice to transition to other employment, if they are unable to transfer to other roles within the company.” The phased disestablishment of the 49 roles would take place over the next 15 months. Financial accounts for the Seventh Day Adventist Church, which owns Sanitarium, shows it had a surplus of $1.73 million in the year to June 30. Revenue from providing goods and services was $225m. It had total revenue of $280m and total expenses of $278m, which included $214.8m in nutrition expenses. It employed 564 full-time staff in New Zealand and 101 part-timers in paid work. Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. 2024-03-27T03:01:48.000Z Peter Gordon’s Homeland restaurant to close its doors https://www.newstalkzb.co.nz/news/business/peter-gordon-s-homeland-restaurant-to-close-its-doors/ https://www.newstalkzb.co.nz/news/business/peter-gordon-s-homeland-restaurant-to-close-its-doors/ Auckland CBD waterfront restaurant Homeland will close its doors after falling victim to a major new development in the area. Celebrated Kiwi chef Peter Gordon runs the restaurant, which also boasts a cooking school. Homeland’s 34 staff had been informed of the decision to begin a change proposal consultation. “It was tough today having a full meeting and telling senior folk and then the rest of the team. It was awful really,” Gordon told the Herald. In an email to customers, Homeland said: “We didn’t expect our landlord selling the site to a property developer that doesn’t see Homeland in its vision. It is renovating our building, beginning huge construction works around us and won’t renew our lease.” Homeland said it had been looking for another site but was unsuccessful. The proposal is to close the dining room on April 28, while the cooking school will run public and private classes until around July 26. A final decision is due to be made this week after feedback has been received from staff. Homeland will vacate the building around mid-August. Homeland is located at 11 Westhaven Drive, which is owned by Cracker Bay Holdings whose director is Chris Meehan, the head of NZX-listed Winton Land. The Herald has previously reported on Meehan’s huge plans for the area including a $750 million retirement village and redevelopment of part of Wynyard Quarter’s waterfront edge. As part of this plan, 11 Westhaven Drive will be refurbished. Winton Land will move its offices into this block and lease out commercial space. Gordon’s Homeland restaurant and cooking school are currently on the ground floor. He told the Herald business had been good. “In an ideal world that’s where we would remain. “We’re not insolvent, [the] business is successful, we’re just having to make a sensible business decision to reposition us.” Gordon said lately the building had had scaffolding and yellow tape all around it. “We do look like a building site to some people. “We’re not against Winton... or development either. This is just sometimes what happens. “One of the things we’re really mindful of is when we first opened in there, we had a full building above us, all the businesses in Beaumont Street, there were about eight marine sector businesses, we had about 300-400 people all around - now we have none.” Gordon and his partner and head of business Alastair Carruthers still have plans to open the cooking school elsewhere in the future, but no timeframe had been put on that. “Alistair and I since the end of last year have been walking around potential sites. “We’ve pretty much looked everywhere that we’re aware of... nothing’s available for us. It’s just how it is at the moment with property.” Gordon, who has run restaurants in London, New York and Istanbul, returned to New Zealand amid the Covid-19 pandemic and opened Homeland’s doors in November 2020. Gordon was born in Whanganui and is often called the Godfather of Fusion. Homeland was originally Mantells On the Water at Pier 21. Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. 2024-03-25T07:57:35.176Z Kiwifruit exports bounce back with forecast record crop and higher hectare returns https://www.newstalkzb.co.nz/news/business/kiwifruit-exports-bounce-back-with-forecast-record-crop-and-higher-hectare-returns/ https://www.newstalkzb.co.nz/news/business/kiwifruit-exports-bounce-back-with-forecast-record-crop-and-higher-hectare-returns/ Kiwifruit marketer Zespri is keen for growers to harvest this season’s bounty as early as possible as it gears up to sell an expected record 190 million trays of fruit to the world. The grower-owned exporter said it was focused on starting the season strongly and incentivising growers to be quick off the harvest mark to get sales programmes under way. “It’s important that with a big crop we start our season strongly and deliver a good amount of early-season fruit to our customers so that we can capitalise on early sales opportunities,” said chief executive Dan Mathieson. Zespri, which is enabled by regulation to export all New Zealand kiwifruit, except to Australia, has released its first payment guidance to growers for the new 2024-25 season, showing stronger per-hectare returns. The bottom of the per-hectare guidance range for all kiwifruit categories, other than the sweet green variety, is above the final forecast given at the end of last season. The bumper crop follows a horror two years for the industry in which fruit quality and yields suffered after extreme weather events and due to a Covid labour shortage and supply chain issues hangover. “The last couple of years have been particularly challenging growing seasons and it’s really positive that we’ve had better conditions this year,” Mathieson said. “Yields are up and that’s expected to contribute to per-hectare returns lifting considerably from last season which will be positive news for growers.” However, he warned that downside risks covered in the new returns guidance included more challenging market conditions and the impact of unfavourable foreign exchange movements with the Japanese yen. Japan is a major market for Zespri. The exchange rate was expected to particularly impact organic, sweet green and RubyRed categories, which had a higher proportion of sales in Japan, said Mathieson, who leaves the company at the end of the season for a new role in a major US berry company. Sales programmes for the recently commercialised RubyRed variety were under way in Japan, Mathieson said. “It’s a great way for us to start given the variety generates real excitement, particularly amongst our younger consumers, and given the fruit is only available for a limited time.” The season had started slightly slower than expected due to fruit maturity, but the harvest was starting to build, he said. About 15 million trays had been submitted for exporting so far, and numbers were expected to increase rapidly. Zespri was ramping up market activity so that when kiwifruit landed in overseas markets, the company was able to sell it quickly to capitalise on strong demand, he said. “This is particularly important given the 2023-24 season’s earlier finish, driven by lower volumes and the constrained Northern Hemisphere supply, which prevented us from providing continuity to our retail partners.” The orchard gate return guidance range per hectare for Zespri green in the 2024-25 season is $75,000-$91,000. This compares with last season’s February forecast of $64,930 per hectare. Guidance for bestseller Zespri SunGold is $145,000-$166,000 per hectare, compared with $143,537 forecast in February last season. For RubyRed growers, per-hectare return range guidance is $50,000-$56,000 compared with $41,057 last season. 2024-03-25T00:25:36.517Z Former CBL boss Peter Harris admits continuous disclosure breaches, misleading conduct https://www.newstalkzb.co.nz/news/business/former-cbl-boss-peter-harris-admits-continuous-disclosure-breaches-misleading-conduct/ https://www.newstalkzb.co.nz/news/business/former-cbl-boss-peter-harris-admits-continuous-disclosure-breaches-misleading-conduct/ Former CBL managing director Peter Harris has admitted to continuous disclosure breaches and misleading conduct in a long-running battle with the Financial Markets Authority.  The FMA filed proceedings in 2019 alleging breaches of the Financial Markets Conduct Act 2013, namely the Continuous Disclosure Proceeding and the IPO Proceeding.  Those alleged breaches relate to CBL Corporation Limited, now in liquidation, Harris, former chief financial officer Carden Mulholland and former non-executive director Alistair Hutchison, who died in December 2021.  The Continuous Disclosure Proceeding relates to CBLC failing to disclose material information to the market during 2017 and 2018.  Today’s in-court settlement with Harris resolves the Continuous Disclosure Proceeding issue.  However, the Continuous Disclosure Proceeding continues against Mulholland, as does the IPO Proceeding brought against CBLC, Harris, Mulholland and the estate of Hutchison.  A trial for these proceedings is set down for June 2024.  Harris has also agreed to an enforceable undertaking, meaning he will not hold any management or directorship positions with any listed issuer or licenced insurer and will not participate in any regulated offer in New Zealand until the final determination by the courts relating to the FMA’s alleged disclosure failures during CBL’s initial public offer.  A penalty hearing before the High Court in Auckland will take place in due course.  FMA head of enforcement Margot Gatland said: “The FMA took these civil proceedings in the public interest to meet our regulatory objectives, including to hold significant misconduct to account by several directors and officers of CBLC.”  “We are satisfied this agreement to move to a penalty hearing, with in-court admissions of contraventions, and the management restrictions to which Mr Harris is now subject, meets our objectives at this time in relation to Mr Harris and the Continuous Disclosure Proceeding.”  CBLC listed on the NZX’s main board in 2015 and was put into voluntary administration in February 2018. It subsequently went into liquidation in May 2019.  The defendants have previously settled separate civil proceedings brought by shareholders and liquidators for a sum of $72.5 million.  Approximately 53 per cent of that settlement sum has been or will be paid to CBLC shareholders who participated in the proceedings. The settlement was entered into without any admission of liability by the defendants.  Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.  2024-03-24T23:31:29.258Z Grand Chateau Tongariro bidders need more certainty from Government - Ruapehu Mayor https://www.newstalkzb.co.nz/news/business/grand-chateau-tongariro-bidders-need-more-certainty-from-government-ruapehu-mayor/ https://www.newstalkzb.co.nz/news/business/grand-chateau-tongariro-bidders-need-more-certainty-from-government-ruapehu-mayor/ By RNZ Developers have been keen to take on the Chateau Tongariro hotel, but they need more certainty from the Department of Conservation (DoC) to make it happen, a local mayor says. The historic hotel at the base of Mount Ruapehu has been closed since February last year after getting an E grade seismic assessment - which puts the earthquake risk at 25 times greater than expected for a new build. It is costing taxpayers more than $2 million a year while it sits empty and in disrepair. Ruapehu District Mayor Weston Kirton told RNZ the lack of action was “very disappointing” and it would take a lot to bring the building back into use. “We know it’s an icon for not only our district but for the rest of the country, if not the world,” Kirton said. “The fact it’s been sitting [empty] for over 12 months is very disappointing, and... we’re seeing now some of the figures coming out probably due to a [lack] of security... We could buy a lot of paint, a lot of scaffolding for that [$2m].” A detailed seismic assessment of the Chateau had laid out a litany of shortcomings, including under-strength foundations, chimneys and parapets at risk of toppling, a lack of bracing and unreinforced masonry infix. The land under the Chateau is owned by the DoC but Kah New Zealand, the operator that previously ran the hotel, had quit the lease. There had been “a lot of interest” from people overseas who specialise in similar renovations, Kirton said. “They know what’s at stake here. We need to get around the table with a business model to allow any potential investor to have a fair go at getting this over the line.” Kirton acknowledged there were a number of stakeholders to consult - including local iwi, for whom the area was culturally significant. “We just want to work with those people to get some business opportunities, for new blood to come into the area and actually take on those challenges.” Ruapehu Mayor Weston Kirton. This would require greater certainty for those investors to enable them to commit to the property in the long term and make a profit. As it was responsible for issuing DoC concessions, the Government had “skin in the game” and could fast-track or intervene with regard to DoC requirements, Kirton said. “They need to consult with local iwi and get buy-in by local iwi, [who] may well be a stakeholder going forward... It could well be that they invest as well but we’re not privy to those negotiations [or] those sensitive issues. Among those expressing interest was a tourism group, Quirkier - which was experienced with heritage buildings - and potential bidders from overseas. The Government - through Minister for Conservation Tama Potaka - had the discretion to “fast-track, if not to intervene with the Department of Conservation’s requirements under the Resource Management Act ... to get a concession over the line”, Kirton said. “It’s my personal view that the minister could come and intervene, and we’ll be having that discussion to see... how that could happen.” Kirton hoped the hotel would be up and running again within the next five years, but with flaking exterior paint and damp-affected interiors, it would take “millions of dollars to get it up to speed”. “This is a great opportunity for anyone coming into an area where it sells itself in terms of [being a Unesco] World Heritage [Site], and it’s an industry that’s growing... If someone was to come into the area, they’re almost guaranteed a good business.” 2024-03-24T03:57:16.451Z Ministry for Primary Industries confirms 384 roles set to be cut as part of Government cost-saving directive https://www.newstalkzb.co.nz/news/business/ministry-for-primary-industries-confirms-384-roles-set-to-be-cut-as-part-of-government-cost-saving-directive/ https://www.newstalkzb.co.nz/news/business/ministry-for-primary-industries-confirms-384-roles-set-to-be-cut-as-part-of-government-cost-saving-directive/ The Ministry for Primary Industries (MPI) and the Ministry of Health are planning to slash hundreds of roles as part of a cost-saving directive from the Government. MPI has been asked to find 7.5 per cent savings as part of the Government’s push to streamline the public service, in a bid to find savings and efficiencies. Ministries are urged to find savings between 6.5 and 7.5 per cent on average, based on their recent growth. Some cuts may be more or less significant than the indicated percentage. In an email sent to all staff, obtained by NZME, director-general Ray Smith said around 40 per cent of the roles on the chopping block are “currently vacant”. Consultation has begun on the proposals, aiming to “bring similar functions together to increase efficiency”, ensure work programmes are sustainable and deliver the Government’s priorities. Smith confirmed in the email that the ministry is not proposing reducing frontline services or statutory roles, including veterinarians, animal welfare, fishery and food compliance officers, or biosecurity teams at the border. Other roles are proposed to see “changes” or be disestablished. “We are focused on taking actions that ensure MPI continues to deliver our core functions effectively and with greater efficiency.” Staff were told the ministry will seek to place as many impacted people into alternative positions. No final decisions have been made. MPI had earlier withheld an Official Information Act request from NZME for information about its cost-savings push, and was told information was Budget-sensitive. Consultation on the matter is open until April 9, with Smith promising to listen to what workers say. “SLT [the Senior Leadership Team] and I remain open to considering additional ideas before making final decisions and look forward to seeing your submissions,” he said. Final decisions are expected by mid-May. Meanwhile, Budget Day is on May 30 and is expected to reveal the extent of the changes in the public service. NZME has revealed plans and communications for change at the Ministry of Business, Innovation and Employment, the Ministry of Transport, Statistics New Zealand, Ministry of Justice, Ministry of Defence, Department of Conservation, Ministry for the Environment, Education Review Office, Kāinga Ora, Inland Revenue, Department of Internal Affairs, and Te Puni Kōkiri. Smith is expected to meet with union delegates and officials from the Public Service Association in relation to the proposal. ‘A difficult and unsettling time for Ministry of Health staff’ Ministry of Health staff have also been told that a quarter of the jobs at the ministry were set to be cut under a proposed restructure. That equates to about 180 jobs. In a statement, the Ministry of Health has also confirmed that up to a quarter of the jobs at the ministry could be scrapped in its proposed restructure - up to 200 jobs - although no final decisions had been made. The cuts are part of the coalition Government’s drive to cut public sector spending by requiring government departments to find 6.5 per cent of 7.5 per cent of savings - but to restrict staff cuts to back-office roles. In a statement, Geoff Short, the Ministry of Health’s director of the Transformation Management Office, confirmed staff were updated this morning on the timing of the proposed changes. Consultation would run from April 5-26, final decisions made by June 30 and the restructure set up in August. “This is a difficult and unsettling time for Ministry of Health staff. The proposed changes could affect just over a quarter of the ministry’s positions - that would include removing vacancies as well as some positions being disestablished.” He said the proposal would also create some new positions, which would be available for redeployment. “A further group of positions may also be affected by proposals for a reporting line change or a change in job title. The full details of the proposed changes will be available to staff in the consultation document.” Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing and transport. 2024-03-21T00:17:40.000Z Will Auckland get a City Deal and what will it look like – Watch Live: National MP Simeon Brown talks to business leaders https://www.newstalkzb.co.nz/news/business/will-auckland-get-a-city-deal-and-what-will-it-look-like-watch-live-national-mp-simeon-brown-talks-to-business-leaders/ https://www.newstalkzb.co.nz/news/business/will-auckland-get-a-city-deal-and-what-will-it-look-like-watch-live-national-mp-simeon-brown-talks-to-business-leaders/ Minister for Auckland Simeon Brown is briefing Auckland business leaders today amid calls for more urgent infrastructure delivery and central Government involvement. In an interview for Project Auckland, NZME’s special business report on the city, Brown confirms the Government has made a commitment to city and regional deals to help solve infrastructure challenges. “We’re having a very close look at some of the UK deals that delegate some powers or allow some flexibility and regulation. So there’s a range of potential options. “But at this stage, we’re not making any commitments around any particular deals because we want to get the framework right. To do that we have to have mature conversations. I mean, ultimately, this is not a magic money tree. “This is about getting alignment on key objectives, long-term planning and thinking and what are the tools that government and council need to both be working on to deliver that.” Brown says this will take give and take on both sides. But it’s also an opportunity to get greater bipartisan support. “We actually need to get a greater level of bipartisan support to drive longer-term thinking when it comes to infrastructure.” Watch live from about 12:20pm as Brown addresses a business audience in Auckland, followed by a panel of some of Auckland’s most influential business leaders who will share their thoughts on the best pathway for the city. 2024-03-20T23:13:11.000Z ‘Two-tier oligopoly’ - Commerce Commission delivers verdict on bank competition https://www.newstalkzb.co.nz/news/business/two-tier-oligopoly-commerce-commission-delivers-verdict-on-bank-competition/ https://www.newstalkzb.co.nz/news/business/two-tier-oligopoly-commerce-commission-delivers-verdict-on-bank-competition/ A “stable two-tier oligopoly” with Kiwibank stuck in the middle - this is how the Commerce Commission is characterising the state of the country’s banking sector.  The competition watchdog has just released a draft report on the big market study the Labour Government commissioned it to do.  The Commerce Commission concluded the big four Australian-owned banks - ANZ, ASB, BNZ and Westpac - enjoy sustained high levels of profitability compared with their global peers.  The second tier of smaller banks really struggle to compete with the big ones, which don’t even really keep tabs on what the little guys are doing.  State-owned Kiwibank sits somewhere in between the two tiers, imposing some constraint on the major banks.  The Commerce Commission reiterated what is already well known to the Government - Kiwibank needs more capital to grow to become a meaningful disrupter in the sector.  Beyond this, many of its recommendations related to how controversial regulatory settings could be tweaked to help existing smaller banks grow, and financial technology firms take off.  The commission suggested the Reserve Bank (RBNZ) reviews the relatively stringent capital requirements it imposes on banks to “ensure they are competitively neutral and smaller players are better able to compete”.  It said this “may include levelling the playing field when it comes to the capital required to be held for some types of home loans”.  While the RBNZ’s capital requirements are seen as the fence at the top of the cliff, preventing banks from collapsing, a new deposit insurance scheme is being designed to be the ambulance at the bottom, to compensate depositors a limited amount should their deposit-taker collapse.  The Commerce Commission urged the Government to design the scheme, due to be implemented mid-next year, with its effect on competition in mind.  The issue currently being debated in the industry is around the extent to which deposit takers should pay levies to the scheme based on their risk profile.  This risk-based approach, favoured by the RBNZ, could cost smaller players more. But equally, riskier deposit-takers have more to gain from the scheme, as a guarantee will make people feel more comfortable depositing money with riskier deposit-takers.  The commission also said the RBNZ could provide wider access to its exchange settlements account system (ESAS), which is used to settle payments between banks.  Open banking featured in the commission’s recommendations.  It suggested this innovation, which entails banks better using technology to share customers’ information (should they wish) be accelerated.  Open banking has for several years been seen as a key to unlocking more competition in the sector, with the previous National-led Government even giving hesitant banks the hurry up to innovate in this space.  The commission should target having open banking available by mid-2026.  It also recommended the Government do more to reduce barriers imposed by the anti-money laundering/countering the financing of terrorism regime (AML/CFT) imposed on banks working with fintechs.  Finally, the commission said, “Lifting consumer engagement and confidence is an essential part of improving competition.  “Consumers will directly benefit from reduced barriers to switching, including better tools and services to help them find the best deal, and an enhanced switching services.”  The commission made recommendations around ensuring mortgage advisers help consumers get the best deal to support more competition for home loans.  It also said it was important to ensure basic bank accounts had widespread availability.  The public has until April 18 to provide feedback to the commission on its draft report.  It will then deliver its final report by August 20.  Market studies the commission previously ran into supermarkets, building materials and retail fuel, have been criticised for not eventuating in meaningful enough enhancements in competition.  Jenée Tibshraeny is the Herald’s Wellington Business Editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.  2024-03-20T21:55:22.419Z GDP: It’s official - we’re in recession https://www.newstalkzb.co.nz/news/business/gdp-it-s-official-we-re-in-recession/ https://www.newstalkzb.co.nz/news/business/gdp-it-s-official-we-re-in-recession/ New Zealand has entered recession. Gross domestic product (GDP) fell 0.1 per cent in the December 2023 quarter, compared with the September quarter (which also shrank).  Economists traditionally define a recession as two successive quarters in which the economy contracts.  The economy shrank despite record migration levels and population growth. GDP per capita fell 0.7 per cent in the last three months of the year, Stats NZ said today.  And real gross national disposable income fell 1.4 per cent.  Wholesale interest rates and the New Zealand dollar fell in response to the news.  ANZ markets strategist David Croy said the local market was largely on hold after a “dovish” message from the US Federal Reserve early in the session.  When the local data was released, markets responded to both.  The two-year swap rate, which can have an influence on mortgage rates, fell by 13 basis points to 4.75 per cent while 10-year bond yields dropped by 10 basis points to 4.42 per cent.  The Kiwi rallied by 40 pips, after news from Fed, then gave up 20 after the GDP release to trade at US60.7c.  “The market has declined because, essentially, the data is seen as being quite a significant factor in terms of the Reserve Bank’s deliberations,” Croy said.  The Reserve Bank’s forecasts show the bank expects to keep its official cash rate high at the current level of 5.5 per cent throughout this year and well into next.  Market pricing, however, has the bank cutting its rate in the second half of this year.  But the GDP data was slightly softer than the RBNZ expected - it had pencilled in a 0.0 per cent rise for the quarter.  Manufacturing, wholesale trade, retail trade and accommodation, and the transport, postal, and warehousing sectors all took a hammering in the quarter, according to Stats NZ data.  Wholesale trade was the largest downward driver, with falls in grocery and liquor wholesaling leading the plunge.  Suspicions of widespread trouble in the retail sector were confirmed, with falls in furniture, electrical, and hardware retailing.  Stats NZ national accounts industry and production senior manager Ruvani Ratnayake said increased activity associated with the New Zealand general election contributed to growth in the public administration, safety, and defence sectors.  GDP rose 0.6 per cent over the year ended December 2023. That was largely thanks to a relatively strong June quarter, when the economy grew by 0.5 per cent.  It was the fourth quarter in the last five where the economy has contracted, ASB economist Nathaniel Keall said.  “Since the economy peaked in September 2022, output has shrunk by a cumulative 0.7 per cent or so. As we’ve consistently emphasised, this slowdown has taken place at a time when population growth into New Zealand continues to prove exceptionally strong by historical standards.  “Headline GDP growth – as unimpressive as it is – actually flatters the picture and masks the underlying weakness.”  On a per capita basis, the economy had shrunk almost 4 per cent since then, Keall said.  “Compared with its level prior to the pandemic, per Capita GDP appears to have barely grown at all,” he said.  “High population growth is also eating into national income, with a -1.4 per cent [quarter on quarter] fall in gross national disposable income ballooning into a 2 per cent fall on a per capita basis.”  As for whether New Zealand is still in the economic quagmire, GDP data for the current January to March quarter will likely not be released for another three months.  Shortly after the data release confirmed the recession, former Prime Minister and current Labour leader Chris Hipkins rejected suggestions he was to blame.  “Well no, that’s on the current Government, they are in charge now,” Hipkins told Newstalk ZB.  Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.  2024-03-20T21:52:46.000Z Godfreys Group to close all transtasman stores by end of May after no viable buyer found https://www.newstalkzb.co.nz/news/business/godfreys-group-to-close-all-transtasman-stores-by-end-of-may-after-no-viable-buyer-found/ https://www.newstalkzb.co.nz/news/business/godfreys-group-to-close-all-transtasman-stores-by-end-of-may-after-no-viable-buyer-found/ Vacuum and cleaning retailer Godfreys will close all stores across New Zealand and Australia before May after it has failed to find a buyer for the business. It comes after Stephen White and John Fisk of PricewaterhouseCoopers (PwC) were appointed administrators of the New Zealand arm of the business in late January. The almost 95-year-old business is one of the world’s largest vacuum retailers and before its voluntary administration, Godfreys operated 141 stores, employing 600 across both countries. Twenty-five of those stores were in NZ, with 16 company-operated and nine franchise stores. Within 24 hours of being appointed, White and Fisk had closed company-owned “loss-making” stores in Coastland in Paraparaumu, Porirua, Nelson, Hamilton Central, and New Plymouth. Speaking to BusinessDesk today, White said they worked closely with the Australian administrators and Godfreys’ group management to find a buyer and “are saddened this has not happened”. “We recognise this is a difficult time for staff, franchisees, and stakeholders, and will continue to work closely with all parties to ensure they are kept informed of progress and supported over the coming weeks.” BusinessDesk reported 55 expressions of interest and six indicative offers were received during the sale process, but they had all been withdrawn or insufficient to secure the company’s long-term future. In a statement today, PwC said Godfreys’ staff were informed there would be a “phased closure” of all stores between now and the end of May. The group’s 25 head office staff in Australia were made redundant as of today and stores would continue to trade on an interim basis to provide a “reasonable period” for the clearance of existing stock, BusinessDesk reported. Franchisees were informed Godfreys could no longer support them and had until the end of March to sell existing stock or return stock sold to them during the administration. 2024-03-20T07:50:12.589Z Warehouse disappointed Commerce Commission rejects Weet-Bix complaint https://www.newstalkzb.co.nz/news/business/warehouse-disappointed-commerce-commission-rejects-weet-bix-complaint/ https://www.newstalkzb.co.nz/news/business/warehouse-disappointed-commerce-commission-rejects-weet-bix-complaint/ By Nona Pelletier of RNZ Retailer The Warehouse says it is disappointed the Commerce Commission has dismissed its complaint over food maker Sanitarium’s decision to quit supplying it with Weet-Bix breakfast cereal, last October. Warehouse chief executive Nick Grayston said the commission decided the Weet-Bix supply was disrupted over a short duration and therefore did not amount to a breach of the law. “Now, in our view, the short duration was a result of the public and customer outcry after we shared what happened,” Grayston said, adding The Warehouse was selling Weet-Bix at a discount to the dominant two grocery chains, Woolworths and Foodstuffs. “We had lots of conversations beforehand with [Sanitarium] where we gave them ample opportunity not to cut our supply. “And so we don’t believe that, without that [public] outcry Sanitarium would have changed their mind.” He said the commission’s decision offered no deterrent. “The lack of action does nothing to dissuade others from thinking they can get away with it. “There’s no guarantee or disincentive that this situation won’t happen with any other supplies.” Grayston said the grocery market would continue to be dominated by the two large supermarket chains, as long as they controlled wholesale distribution. “All in all, it doesn’t offer much hope for any participant trying to grow or make positive change in the grocery sector and be able to offer better value for distressed customers.” He said the government needed to intervene to level the playing field. RNZ was awaiting the commission’s comment on its decision. However, in a written response to The Warehouse, the commission said it had no evidence to suggest Sanitarium’s conduct was intended to substantially lessen competition. “In particular, the conduct was short in duration, with Sanitarium confirming that it would recommence supply within two working days of supply ceasing,” the commission said, adding that supporting competition in the grocery sector was a priority. The Warehouse reported a first-half loss on Wednesday, with sales down 5 per cent. - RNZ 2024-03-20T02:10:13.172Z IMF warns New Zealand Government against borrowing to fund tax cuts, fearing this could exacerbate inflation https://www.newstalkzb.co.nz/news/business/imf-warns-new-zealand-government-against-borrowing-to-fund-tax-cuts-fearing-this-could-exacerbate-inflation/ https://www.newstalkzb.co.nz/news/business/imf-warns-new-zealand-government-against-borrowing-to-fund-tax-cuts-fearing-this-could-exacerbate-inflation/ The International Monetary Fund (IMF) is urging the Government to ensure it can pay for its tax cuts without borrowing more. The organisation is wary of the fact New Zealand is still battling inflation, so fears that putting more money into the economy, without taking an equivalent amount out, could exacerbate the problem. “The planned personal income tax relief is targeted predominantly at low and middle-income earners and families with children, which have a higher propensity to spend,” the IMF said in report it prepared following a routine review of New Zealand. “To avoid any upside pressure to inflation it is important to calibrate the funding, timing, and the parameters of this tax relief to be fiscally neutral.” Questions are currently being raised by various commentators over whether the Government can fund its promised tax cuts without borrowing more. More will be known when Finance Minister Nicola Willis releases her Budget Policy Statement on March 27, ahead of the Budget on May 30. The IMF recognised the Government’s committed to cutting public sector jobs and taking a prudent approach towards spending. It said New Zealand’s government debt is “sustainable” at current levels. However, it noted that following the onset of Covid-19, government debt in New Zealand rose more rapidly than it did in other advanced economies, “and will continue its upward trajectory absent decisive consolidation”. The IMF suggested the Government address New Zealand’s “structural” fiscal challenges to “strengthen credibility and preserve the policy space to respond to shocks”. “The focus should be on spending areas which have increased the most since the pandemic, such as the wage bill, transfers, and social benefits,” the IMF said. “Outlays on high-value infrastructure and support to the most vulnerable should be protected.” As it has done in the past, the IMF called for the introduction of a comprehensive capital gains tax, combined with a land value tax, and changes to corporate income tax. “Tax policy reforms are needed to promote investment, and productivity growth, increase the progressivity of income tax, and mobilise additional revenue in response to long-term fiscal challenges,” it said. The IMF was satisfied with where the Reserve Bank had set the Official Cash Rate, saying monetary policy was “appropriately tight and should remain restrictive to ensure a timely return of inflation to target”. It said New Zealand needed more houses, as affordability issues are “severe”, despite prices falling from their Covid-era peaks. “Additional reforms of land use restrictions are essential for further construction,” the IMF said. “Moreover, investment in transport and water infrastructure is needed to support urban development. This requires local councils to address funding and capacity constraints.” The IMF also pulled New Zealand up on its lagging productivity growth, which it said is making the country less competitive. “Public investment in research and development, new infrastructure, and maintenance of the existing public capital stock are critical,” it said. “A more predictable infrastructure pipeline would encourage construction companies to expand implementation capacity… “Further immigration together with efforts to improve education outcomes and skills matching, could address skills shortages and boost productivity.” The organisation was worried about New Zealand’s education standards slipping, and educated people. “While the population is highly educated, New Zealand lags other advanced economies in terms of post-graduate degrees,” it said. The other area the organisation raised concern over was climate change. It said more investment was needed in adaptation infrastructure, while authorities needed to limit residential zoning in high-risk areas. It said “significant reforms” were needed to meet commitments made in the Paris Agreement. The IMF said New Zealand needed to reduce the number of units available under the Emissions Trade Scheme, price agricultural emissions, and better incentivise polluters to reduce their emissions under the scheme. Jenée Tibshraeny is the Herald’s Wellington business editor, based in the Parliamentary Press Gallery. She specialises in government and Reserve Bank policymaking, economics and banking. 2024-03-20T01:23:10.000Z The Warehouse Group makes $23.7m net loss, will sell online platform TheMarket https://www.newstalkzb.co.nz/news/business/the-warehouse-group-makes-237m-net-loss-will-sell-online-platform-themarket/ https://www.newstalkzb.co.nz/news/business/the-warehouse-group-makes-237m-net-loss-will-sell-online-platform-themarket/ The Warehouse Group made a $23.7 million net loss in six months amid some grim retail conditions and a poor performance from the now-discarded Torpedo7.  And it planned to sell its underperforming online shopping platform TheMarket.  Announcing results for the half-year to January 28, The Warehouse Group said it would simplify more to focus on core brands.  ”It’s time to draw a line under TheMarket.com as a separate entity and shift our marketplace focus to The Warehouse,” the company said.  Total group sales were $1.633 billion, down 4.9 per cent on a year earlier.  The Warehouse itself had sales of $965.6 million, down 4.7 per cent on the 2023 first half. But its gross profit was up 1.6 per cent to $374.3m.  The Warehouse Group says it will focus on its core brands now. Photo / Jason Oxenham  Noel Leeming sales were $544.4 million, down 2.2 per cent.  Warehouse Stationery sales were also down, falling 5 per cent to $117.9 million.  The group’s total net loss of $23.7m included the impairment of Torpedo7 assets and restructuring costs.  Torpedo7 was sold last month for $1 to a consortium that included former Breakers basketball team owners Paul and Liz Blackwell.  The Warehouse Group chief executive Nick Grayston said the company was making choices to simplify its business.  “These calls are needed to set us up to be a much leaner, sharper-focused group in the future. Our core brands are the bedrock of the group and now have our undivided attention.  “The sale of Torpedo7 has had a severe impact on the group’s financial performance this half,” he added.  “While the disposal of Torpedo7 means we have incurred significant write-downs, it allows us to redirect our focus towards our core brands and build on the $30.7 million in adjusted NPAT (net profit after tax) from our continuing operations.”  Outlook  “We’re seeing customers seek out value on the essentials, which is putting pressure on big-ticket items, impacting our brands across the board,” Grayston said.  In an investor presentation, the company said it expected tough retail market conditions to persist.  “We believe the macroeconomic climate will remain difficult, and it is challenging to predict how cautious consumer spending will impact sales across all our brands,” the company said.  “And we’ve seen much tougher trade in February with [a] sales decline in the low teens. In March, we’ve seen some improvement with our sales decline returning to be more in line with the level of decline experienced in our first half.”  Flailing outdoor gear shop was a drag: analyst  Before the result, Craigs in an analyst report said TWG did a smart thing getting rid of Torpedo7.  “Given Torpedo7′s poor track record of performance ... the group’s decision to divest the brand comes as little surprise.”  The move would rid The Warehouse Group of an earnings drag and distraction, Craigs said.  That was especially prudent considering the challenging macroeconomic conditions for retailers.  Sales trends worsened quarter on quarter across several of The Warehouse Group’s key categories, Craigs said.  Retail sales fell in the last three months of 2023, with recreational goods and fashion hit hard, according to Stats NZ figures released last month.  2024-03-19T21:28:15.228Z Focus: Burger King trials Artificial Intelligence drive-thru system in four Auckland restaurants https://www.newstalkzb.co.nz/news/business/focus-burger-king-trials-artificial-intelligence-drive-thru-system-in-four-auckland-restaurants/ https://www.newstalkzb.co.nz/news/business/focus-burger-king-trials-artificial-intelligence-drive-thru-system-in-four-auckland-restaurants/ Burger King’s newest team member might catch you by surprise next time you’re at the drive-thru. That’s because four of its Auckland restaurants are now fully operated by AI, the fast-food franchise has confirmed. The “conversational system”, which Burger King has been trialling for a few months, greets customers and takes orders at the drive-thru speaker before directing them to the pick-up window. “It’s been really helpful with taking orders, I’m able to multitask a little better and most of the customers love it,” Burger King Westgate manager Tyler Chisholm told Focus. “Some [customers] find it a little confusing, mainly they get taken by surprise. They’re just like, ‘oh my God was that AI?’ And I’m like, ‘yes!’” The platform is powered by US company Hi Auto. The system is already used in more than 500 restaurants across the US, the UK and now in New Zealand. The New Zealand Herald Focus team gave the AI system a go and while it was a little slow to process more complicated questions such as whether the Whopper Jr had pickles in it, it was polite and - more importantly - accurate. “During this interaction, guests have the opportunity to customise their orders, change their minds, much like with any other team member,” a Burger King spokesperson said in a statement. “Using AI allows us to delight our guests every time with a fast, accurate, and courteous service.” Burger King has been trialling the new Hi Auto AI system in a handful of restaurants. Photo / Alyse Wright Burger King said there would be no loss to staff positions. Hi Auto chief business officer Daniel Dreymann said the system was never intended to replace humans, but to make the fast-food work environment more enjoyable for staff. “It’s about taking away some tasks that are unpleasant, repetitive and taxing on them,” Dreymann said. “Being able to delegate one of those tasks to AI and not have to care about it removes a lot of the cognitive load and therefore allows people to enjoy the job better.” Dreymann said the system had reduced the turnover of staff, increasing retention by up to 17 per cent at restaurants that used it. The AI’s voice is also fully customisable, with Burger King using two of its own staff members to develop a Kiwi accent. “We have the ability at Hi Auto to clone voices so if you want your voice to be the voice to greet people at the drive-thru, we give you a sheet of things to say and we can program the AI to use your voice to be the order taker,” Dreymann said. “Some of our customers in the US have even done it with local celebrities, like a local football legend in Ohio.” Burger King is so far the only New Zealand fast-food restaurant using the technology. The chain said staff feedback had been positive. “Our team members have commented that they find it reduces the stress they can experience from needing to take orders, process payments and bag orders all at the same time,” a spokesperson said. “They can then focus on ensuring the burgers are made well and the orders are complete before handing over to the customer.”   2024-03-19T00:14:47.523Z Inland Revenue scathing of plan to disallow depreciation deductions for commercial and industrial property https://www.newstalkzb.co.nz/news/business/inland-revenue-scathing-of-plan-to-disallow-depreciation-deductions-for-commercial-and-industrial-property/ https://www.newstalkzb.co.nz/news/business/inland-revenue-scathing-of-plan-to-disallow-depreciation-deductions-for-commercial-and-industrial-property/ Inland Revenue has published a scathing review of the Government’s proposal to make commercial and industrial property owners pay about $575 million more tax a year. The Government is planning to prevent building owners from deducting depreciation as an expense from April 1 to bolster the balance of its books. However, the tax department believes the change will hurt businesses and hamper productivity, which the Government says it’s committed to improving. Inland Revenue also reckons the change will distort the tax system - an issue the Government claims it wants to address by allowing landlords to deduct mortgage interest as an expense to put residential property investment on the same footing as other types of business. “We do not consider the removal of building depreciation to be a fair and efficient way of raising revenue,” Inland Revenue said in the regulatory impact assessment it prepared for the Government. “We are particularly concerned about the efficiency impacts which will make New Zealand even more of an outlier in pushing up cost of capital for commercial and industrial capital.” Ahead of last year’s election, both National and Labour campaigned on removing depreciation deductions as a way of helping pay for their policies. While the change will hit building owners relatively hard, requiring them to pay an estimated $2.3 billion more in tax over four years, the policy has created little public fanfare. Hence, it’s arguably an easy way - politically - of generating revenue. Inland Revenue recognised the issue of whether commercial and industrial buildings do or don’t depreciate had been contentious in the past. Treasury analysis done in 2010 found on average, buildings in New Zealand hadn’t depreciated in market value between 1994 and 2008. However, international evidence strongly suggests buildings do depreciate. The National-led Government removed the ability of building owners to deduct depreciation in 2010. Then in 2020, the Labour-led Government reversed this to stimulate growth in the face of Covid-19. Inland Revenue said all the flip-flopping could create uncertainty and erode investor confidence. It said even under the status quo, where 2 per cent depreciation deductions are allowed, New Zealand is likely to be the least attractive country in the OECD to invest in commercial and industrial buildings. “Denying depreciation deductions will drive up these hurdle rates of return even higher and make New Zealand a less attractive location for investment,” Inland Revenue said. It noted the cost of the tax change would be passed onto businesses, as well as their customers. “It thereby negatively impacts productivity more generally.” Inland Revenue feared businesses that rely more on the use of buildings than others would be disproportionately affected. “A fundamental principle of New Zealand’s tax system is not to advantage any form of investment relative to other forms of investment, unless there is an overriding reason for doing so,” it said. Perhaps the only upside of the analysis for the Government is that Inland Revenue expects the change to generate $200m more revenue over four years than what National accounted for pre-election. Finance Minister Nicola Willis used this revision to defend herself in the face of criticism around cost overruns - for the removal of the interest limitation rule for example. She argued that while some of the governing parties’ promises might cost more than anticipated, others would cost less, or generate more revenue. The proposed change to the treatment of depreciation has been included in the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill, which is expected to be passed before the end of the month. The new rules will take effect as the commercial property sector is grappling with high interest rates. One per cent of bank loans for commercial property were non-performing in January - a major deterioration compared to the six-year average of 0.3 per cent. The ratio of non-performing commercial property loans was also higher than for general business loans (0.8 per cent) and housing loans (0.5 per cent). The value of new bank lending for investment in commercial property development was also low through 2023. Jenée Tibshraeny is the Herald’s Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking. 2024-03-18T07:36:12.122Z Latam horror plunge: Cockpit mishap could be to blame, report https://www.newstalkzb.co.nz/news/business/latam-horror-plunge-cockpit-mishap-could-be-to-blame-report/ https://www.newstalkzb.co.nz/news/business/latam-horror-plunge-cockpit-mishap-could-be-to-blame-report/ A cockpit mishap could have been the cause of a Latam Airlines’ plane’s frightening drop in mid-air about 300 km west of Auckland.  And Boeing has sent out instructions to airlines with its 787 Dreamliners on how to inspect and maintain cockpit seat switches.  About 50 of the Boeing 787 Dreamliner’s 272 crew were injured when they were tossed around the cabin and even into the ceiling during the terrifying incident on Monday.  The Wall Street Journal reported unnamed US industry officials as saying the mishap may have occurred when a flight attendant serving a meal hit a switch on the pilot’s seat that pushed the pilot into the controls.  A Latam Airlines Boeing 787 at Auckland Airport. Photo / Brett Phibbs  Boeing earlier sent an advisory on Thursday to airline operating 787 Dreamliners that “included instructions for inspecting and maintaining [cockpit seat] switches”, The Wall Street Journal also reported.  Boeing didn’t comment on the investigation into Latam’s LA800 flight.  But it said it took “the precautionary measure of reminding 787 operators of a service bulletin issued in 2017 which included instructions for inspecting and maintaining switches on flight deck seats”, The Guardian reported.  “We are recommending operators perform an inspection at the next maintenance opportunity.”  An ambulance leaving Auckland International Airport after a number of passengers were injured during a flight from Sydney to Auckland Photo / Dean Purcell  Crew on Latam Airlines LA-800 were finishing clearing up after lunch and were two-thirds of the way through the three-hour Sydney-Auckland flight on Monday when all hell broke loose.  About 300km west of Auckland, the 200 tonne-plus Boeing Dreamliner dropped like a stone for maybe 45 seconds.  The pilots managed to regain control and safely land at Auckland Airport.  In a move praised by passengers, a pilot later walked through the cabin - by then strewn with casualties bleeding and in neck braces while others around them were in tears.  It was a chat with passengers that spawned one strong theory as to what happened; an instrument blackout, which caused pilots to momentarily lose control of the plane travelling at about 960kph.  It is one of a growing number of theories swirling in the absence of official information.  LATAM airline 2  Latam is South America’s biggest airline, with a fleet of more than 400 planes across the group and last year made a $900m profit.  It had said little about the incident by Friday afternoon.  It did issue a 92-word statement on Monday, when it acknowledged the plane had “a technical problem during the flight which caused a strong movement”.  Through its Australian PR agency, the airline said “some passengers and cabin crew were affected”.  “Latam regrets the inconvenience and injury this situation may have caused its passengers, and reiterates its commitment to safety as a priority within the framework of its operational standards,” the statement said.  The airline flies through Auckland exercising Fifth Freedom rights: it touches down to offload passengers and freight on the way between Santiago and Sydney.  Passengers at Auckland International Airport waiting to check in for a replacement Air Latam flight to Chile following a terrifying flight from Sydney to Auckland. Photo / Dean Purcell  It doesn’t have a base here so the lack of support for the walking wounded who didn’t need hospital treatment and other traumatised passengers was inevitable as contracted ground handlers would have been deployed.  Burger vouchers issued at the airport while accommodation was sorted aggravated a bad situation.  The Direccion General de Aeronautica Civil (DGAC) is leading the inquiry under the International Convention on Aviation.  The National Transportation Safety Board in the United States could become involved as that’s the base of Boeing, which is facing other safety investigations into its troubled 737 Max programme.  Like Latam, Boeing is saying little about the incident despite repeated inquiries.  “We are thinking of the passengers and crew from Latam Airlines Flight 800, and we commend everyone involved in the response effort. We are in contact with our customer, and Boeing stands ready to support investigation-related activities as requested.” the Chicago-headquartered firm said.  Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.    2024-03-15T18:53:20.131Z TVNZ job cuts: Top stars in new campaign to fight for shows, jobs - Media Insider https://www.newstalkzb.co.nz/news/business/tvnz-job-cuts-top-stars-in-new-campaign-to-fight-for-shows-jobs-media-insider/ https://www.newstalkzb.co.nz/news/business/tvnz-job-cuts-top-stars-in-new-campaign-to-fight-for-shows-jobs-media-insider/ Several of TVNZ’s biggest stars are fronting a new PR campaign, Save Our Stories, to fight job and show cuts.  Sunday host Miriama Kamo, Fair Go host Garth Bray, Breakfast host Anna Burns-Francis and Q+A host Jack Tame are among the first of seven TVNZ names fronting a new video released today.  The others are senior journalists Barbara Dreaver and Indira Stewart and Re: News journalist Zoe Madden-Smith.  Sunday host Miriama Kamo. Photo / Supplied  Kamo opens the video by saying: “With newsrooms closing across the country, we could understand it if you thought ‘sucks to be you’. But the truth is, without newsrooms, without programmes like Sunday, Fair Go and Re: News, it’ll suck to be all of us.  “This is not just about job losses for us. This is about losing the ability to tell your stories.”  Burns-Francis: “And as our newsrooms diminish, so too does our ability to tell the stories that matter to New Zealanders.”  Dreaver: “The stories which uplift and celebrate our successes, but also those which hold powerful people to account and advocate for change.”  Television New Zealand journalist Barbara Dreaver speaks to the media after she was released by Nauru Police. Photo / Jason Oxenham  E tū negotiation specialist Michael Wood said the Save Our Stories campaign was a response to last week’s announcement of a proposal for significant cuts across the TVNZ workforce, including cutting Fair Go, Sunday, the Midday and Tonight bulletins and “gutting” Re: News.  “We’re bringing together workers, viewers, and supporters to remind TVNZ of their purpose and responsibilities,” said Wood.  “TVNZ isn’t just some business, it’s a vital part of our society and Kiwis need a strong TVNZ to tell Aotearoa’s stories and hold power to account.”  Wood said: “This is about everyone – every single New Zealander is a stakeholder in this, so we invite everybody who wants to build and protect a strong media landscape to support the campaign.”  The campaign has been launched with a video featuring people from across TVNZ’s workforce, and an open letter.  “So many people have reached out to our union to show their support for TVNZ workers and ask how they can help. From prominent public figures, to people whose lives have been changed thanks to TVNZ’s coverage, to dedicated viewers who don’t want to see their favourite shows get the axe,” said Wood.  “These people can help by signing the open letter, sharing our video, and sending the message to decision-makers that our media is worth protecting.”  TVNZ has been approached for comment.  Last night, ahead of the launch, a spokeswoman said: “We understand E tū plans to launch a public campaign from statements they’ve made recently. We don’t have any information on what this entails so we’re not in a position to comment on it.”  MORE TO COME  Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.  2024-03-15T00:46:31.484Z Nicola Willis says deteriorating economic outlook won’t stop her delivering income tax cuts https://www.newstalkzb.co.nz/news/business/nicola-willis-says-deteriorating-economic-outlook-won-t-stop-her-delivering-income-tax-cuts/ https://www.newstalkzb.co.nz/news/business/nicola-willis-says-deteriorating-economic-outlook-won-t-stop-her-delivering-income-tax-cuts/ Finance Minister Nicola Willis has firmed up her Government’s commitment to delivering income tax cuts, despite the underperforming economy.   “We will stick to our commitments to lower personal income taxes,” Willis said at an Auckland Business Chamber event this afternoon.   However, Willis didn’t clarify whether she would provide the same amount of tax relief National campaigned on, ahead of the election.   National and Act agreed, in their coalition agreement, to ensuring “the concepts of Act’s income tax policy are considered as a pathway to delivering National’s promised tax relief, subject to no earner being worse off than they would be under National’s plan”.  Under National’s tax plan, income tax brackets would be adjusted to the extent a minimum wage worker would receive an extra $112 a year, someone on the median wage would receive $800, and someone who earned $100,000 a year would receive an extra $1,043.  National campaigned on ensuring these changes would take effect from July 1.  Act ultimately wants to see the income tax system flatter, so there are three, rather than the current five, tax brackets.  It wants to introduce a new tax credit for low to middle-income earners, who would otherwise be left out of pocket if Act got its way and lifted the bottom income tax rate from 10.5 to 17.5 per cent.  Willis didn’t elaborate on how she might incorporate Act’s approach into her revamp of the income tax system.  She recognised people might question her commitment to tax relief, with the economy more sluggish than expected.  She suggested the Treasury may have to downgrade its gross domestic product (GDP) forecasts when it releases its Budget Economic and Fiscal Update alongside the Budget on May 30.  “Treasury is now warning me that growth over the next few years is likely to be significantly slower than it had previously thought,” she said, recognising productivity in New Zealand has slowed.  According to the latest Crown accounts for the seven months to January, core Crown tax revenue came in 1.1 per cent below forecast by the Treasury in its December half-year update.  Overall, the tax take for the period was still 7 per cent higher than the same period the previous year - the labour market was strong and high inflation meant people paid more GST buying fewer, but more expensive, goods and services.  However, the stress was evident with the corporate tax take falling by 11 per cent.  In her speech, Willis said the Government would invest in infrastructure, drive more value from government spending and cut red tape.  She asked those in the business community to do their bits to help drive growth.  “The three parties of our coalition are resolutely, pro-growth, pro-development and anti-red-tape,” Willis said.  “Now, more than ever, we must double-down on the drive for real economic growth.”  Willis didn’t mention National’s pre-election goal of getting the Government’s books back in surplus by 2026-27.  In December, when Treasury’s view of the economy was likely rosier than it is now, it only forecast a wafer thin return to surplus by this date.  Willis said it would be an overreaction for the Government to drastically cut back on investment, give up on “overdue tax reduction”, and “hunker down to weather the storm”.  Willis will have more to say about how much she will increase the Government’s operational and capital expenditure by, in the Budget when she releases her Budget Policy Statement on March 27.  She will also update the Government’s “fiscal goals”.  Jenée Tibshraeny is the Herald’s Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.  2024-03-15T00:40:52.000Z MBIE confirms more than 100 voluntary redundancies as it looks to cut spending by $412.5 million https://www.newstalkzb.co.nz/news/business/mbie-confirms-more-than-100-voluntary-redundancies-as-it-looks-to-cut-spending-by-4125-million/ https://www.newstalkzb.co.nz/news/business/mbie-confirms-more-than-100-voluntary-redundancies-as-it-looks-to-cut-spending-by-4125-million/ Government ministries are scrambling to cut costs by between 6.5 and 7.5 per cent ahead of the coalition’s first Budget. For MBIE, that means finding savings of around $412.5 million. To help achieve this the ministry’s been working through a voluntary redundancy process since the start of the year. Azaria Howell looks at how many staff have taken up the offer to leave.  The Ministry of Business, Innovation, and Employment is one of the New Zealand Government’s largest agencies employing more than 6000 people, making the cost-cutting task before it no mean feat.  MBIE has been asked to find cost savings of 7.5 per cent before the May Budget, equating to roughly $412.5 million.  A voluntary redundancy process was introduced in January with the ministry now confirming 111 people have been accepted for voluntary redundancy.  The process was originally scheduled to run from January 23 to February 7. However, the day after applications were due to close, the scheme was extended another week.  Official communications to staff from MBIE around its bid to slash costs can now be revealed.    MBIE's main building in central Wellington. Photo / Mark Mitchell  MBIE had its first taste of Government-directed savings targets in August last year, when the then Labour-led Government asked the agency to find two per cent savings, approximately $110 million.  Seven months on and MBIE now needs to find 7.5 per cent savings, which would equate to roughly $412.5 million.  An email from MBIE’s Building, Resources and Markets Group leader Paul Stocks, from August 29, shows the initial proposal from the previous Government was “taking place against a backdrop of a challenging economic situation and fiscal headwinds.” The ministry first considered finding savings from unfilled vacancies, and careful use of contractors and consultants.  The Act Party meanwhile was vowing to issue “stop-work notices” to MBIE staff and halve the ministry’s headcount should it get voted into power.  On August 31 the ministry’s Corporate Services and Finance Group were told announcements and commentary about job cuts “can be unsettling as public servants”. The memo did not specifically link to any policies or announcements.  Stocks sent another email to all ministry staff three days before the 2023 general election, highlighting the importance of political neutrality and once again speaking about cost savings. “We have also been doing work to identify potential reprioritisation options to meet our fiscal sustainability goals and deliver on the incoming Government’s priorities”.  The Act Party held a media stand-up five days before the election outside MBIE’s office in central Wellington. In the speech to media, leader David Seymour took aim at increased spending and co-governance structures in the public service.  “Government departments have made New Zealanders’ lives more expensive,” Seymour told the cameras, as voters headed to the polls.  Following the election, but prior to the formal announcement of the coalition, more emails were sent.  Communications on behalf of People & Culture Manager Richard Griffiths reveal MBIE was considering the roles that are currently under recruitment, and would only be replacing those deemed “business critical”.  Staff were told on October 30 the decision may impact work people are doing, or how quickly they can deliver outcomes.  On the same day, Digital, Data & Insights group leader Greg Patchell told staff there would be a pause on “any significant new work or big decisions”, and also acknowledged many public servants were in a time of uncertainty.  As coalition talks were ongoing, and politicians were spotted going in and out of hotel lobbies for secret chatter, public service agencies kept ticking on with their plans to slash spending.  On November 8, Paul Stocks emailed all MBIE staff with an update on spending. The email pointed out the Government “will have an ambitious agenda,” including a mini-Budget and 100-day-plan.  Workers were told an immediate action was set by the ministry’s senior leadership to reduce discretionary spending by 15 per cent - meaning a slash on travel, training, catering, venue hire, leaving functions, and gifts was on the table.  Stocks sympathised with workers, adding “I know this might seem a bit tough [...] it is unlikely we will receive funding for new initiatives and we will be facing additional cost pressures”.  After the coalition was formed, the race to deliver the mini-Budget was on, as many ministries wrapped up work in the lead-up to the festive season.  On December 8, MBIE staffers received another email from Paul Stocks around the next steps with the new Government. Staff would be working on ministerial briefings and understanding the 100-day-plan - at a senior leadership level, costs were front-of-mind.  In the email, Stocks acknowledged many MBIE workers would be feeling “a little apprehensive,” and encouraged people to flag concerns with their managers.  Staff were greeted with another email from Stocks, titled “Xmas Stocksings [sic],” on December 21 - the same day Finance Minister Nicola Willis unveiled her mini-Budget.  The issue of staff feeling under-pressure was once again brought up.  In the email, Stocks said “Many of you mentioned that you were feeling tired and also worried about how the workloads are going to be managed”. All cost centre managers were asked to adjust their forecasts for discretionary spending by the end of January.  Throughout January, the voluntary redundancy scheme was floated as a way to cut back on costs.  A staff webinar took place on January 24 with MBIE’s Chief People Officer and clinical psychologist Dr Barbara Rysenbry around making “informed decisions”.  The day after the ministry’s voluntary redundancy scheme was extended, Te Waka Pūtahitanga deputy secretary Melanie Porter reiterated the idea the scheme was “entirely voluntary,” and a decision would have to be made based on personal circumstances.  Not all applications for redundancy would be accepted.  Porter encouraged staff to reach out to their peers, manager, or wellbeing support, and to focus on things that bring them joy at a time of uncertainty and change. She added the focus would be “results-oriented” primarily.  Workers were thanked for their patience during the change process in Porter’s email: “Of course it is going to take time but I know the waiting and watching isn’t easy.”  On February 23, more details were announced to staff around the voluntary redundancy scheme. People & Culture manager Richard Griffiths noted not everyone who applied for voluntary redundancy would get it, adding it “will be disappointing for some.”  The ministry had also confirmed it had looked to extend people’s departure dates to ensure key deliverables could still be met.  Griffiths’ memo appeared to express the view the scheme would impact what the ministry could achieve.  “What this will also mean is less people to do the work we need to do,” he said, encouraging staff to work with managers to devise new strategies to deliver what they’ve promised. Workers were told to prioritise items, make trade-offs, and even look at stopping some projects.  Final decisions on cost-savings will be signed off by Finance and Public Service Minister Nicola Willis.  Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing and transport.  2024-03-14T19:35:14.552Z Doing it tough: What households are dropping to cut costs https://www.newstalkzb.co.nz/news/business/doing-it-tough-what-households-are-dropping-to-cut-costs/ https://www.newstalkzb.co.nz/news/business/doing-it-tough-what-households-are-dropping-to-cut-costs/ Times are tough - even for those on average and above-average incomes. Interest rate hikes, rent, mortgage and food costs mean skipping takeaways just isn’t cutting it. Kirsty Wynn finds Kiwis are looking at bigger sacrifices such as Kiwisaver holidays and selling the car - to stretch the pay packet further.  Kiwisaver holiday: Taking a break or a “savings suspension” from contributing to Kiwisaver is becoming more common. If you have been with the retirement fund for 12 months you can take a break for up to a year. A household earning $160,000 and contributing 3 per cent means an additional $639 a month in the budget. Pros: Instant relief and money to get through the struggle. Cons: Tom Hartmann from budget planning website Sorted said taking a break should be seen as a last resort. “You are forgoing the future investment returns that money will earn you,” he says. “It’s tens of thousands you lose and once you get used to having that extra money it’s hard to go back.  Renting out a room: There has been a significant jump in the number of New Zealanders sacrificing personal space and privacy to rent out a room or host a homestay student. Language schools in Auckland say they have more people than ever offering to host short and long-stay students. Pros: You can earn around $325 or $365 a week for a homestay depending on how many meals a day you provide. Cons: Personal space and privacy and if you’re a homestay host you’ll have to cook every night of the week.  Visits to the hairdresser are getting the snip as more New Zealanders struggle to get to the next paycheck. Photo / 123RF  Less cut and colour: More of us are pushing out visiting the hairdresser, and are doing our own nails. With a full head of highlights and a cut priced upward of $300, returning to more natural tones or going with a lower maintenance style are growing trends. Pros: You can save hundreds by delaying your salon visits a few extra months. Cons: Split ends and regrowth.  Cook your own: With the cost of food at an all-time high, the average Kiwi household is feeling the pinch. A lot of people are cutting back on takeaways and some have cancelled or downgraded meal subscription plans for cheaper options. One-pot meals and pastas make meat go further and home cooks are turning to Instagram and cost-cutting social media groups for budget-friendly meal ideas. Pros: With the right preparation and planning, savvy shoppers can save hundreds a month. Cons: Preparing healthy high-protein food on a strict budget - alongside with long working hours - is hard work.  Expert tip: Shopping online once a week removes temptations in-store and it’s easier to stick to a budget without walking the aisles with a calculator.  Streaming service cost increases have had some households cull what they subscribe to.  Cull the streaming service: A year ago, it was common for larger households to have multiple subscriptions for services such as Netflix, Neon, Disney Plus, Apple TV, Amazon Prime and Spotify. The cost of all six was more than $100 a month. Membership costs have jumped and more people have cancelled subscriptions or picked their favourite. Pros: The savings are huge. Cons: Nothing to watch could mean money saved here will be spent elsewhere.  Expert tip: TVNZ on Demand and Three Now have plenty of free content on demand - including binge-worthy series’ and blockbuster movies.  Selling a car and becoming a one-car or no-car household will save thousands of dollars every year. Photo / Sarah Ivey  Selling a car: Becoming a one-car or no-car household is a growing trend and this sacrifice gets the tick from financial expert Tom Hartmann. As well as the instant cash injection from off-loading a car there are ongoing savings from costs such as registration, WOF, insurance and maintenance. Even if you’re paying more for public transport and the occasional Uber you’ll save thousands each year. Pros: The savings are huge and the environment will thank you. Cons: It’s a juggling act for a one-car household to get everyone where they need to be and can be particularly difficult for those in towns with no proper public transport options or those facing long or complex commutes.  Downgrading insurance: More New Zealanders are reassessing what they are paying and what coverage they have. Some are raising excesses to lower monthly premiums or enlisting the help of a broker to get a better deal. Pros: You can save hundreds a month by tweaking policies. Cons: Not having adequate cover for the big things can be life-changing and needs careful consideration.  Expert Tip: Insurance doesn’t have to be all or nothing. Work with an insurance adviser and tell them what you can afford. If they are good they will find something to fit your budget.  Ditching a gym membership for at-home workouts can save thousands of dollars a year.  We are going DIY: Gym memberships, lawn mowing and home maintenance are all things we are now more likely to do ourselves to save. Instagram is your friend if you’re looking for a whole-body workout with a set of dumbbells and pushing the lawnmower will save you upwards of $25 a week and add to the cardio. Pros: You can save thousands a year by ditching a barely-used gym membership and doing more around the house. Cons: If the gym is your happy place you might need to find another expense to cull.  Consolidate that debt: High interest rates of around 27 per cent on credit cards and store cards have led more New Zealanders to talk to their bank and microlenders about options to reduce debt. This gets the tick from Tom Hartmann at Sorted who says it’s the biggest saver for anyone struggling to pay off a storecard or credit card. “Microfinance providers are giving low-interest and even no-interest loans to get this debt under control,” he said. “You will save more by getting debt on a lower interest rate than going without or cutting subscriptions.”  Don’t drop what brings you joy:  Before ditching Friday night takeaways or your favourite streaming service Tom Hartmann at Sorted suggests listing your costs and rating them on the emotional return.  “Some things bring real happiness so if you cut something that brings you joy you are going to feel meh and it is going to be harder to stick to,” he said.  “You might realise Spotify brings joy but you can find other free entertainment sources rather than Netflix.”  2024-03-14T18:06:38.751Z Government details proposal to reduce the bright-line test https://www.newstalkzb.co.nz/news/business/government-details-proposal-to-reduce-the-bright-line-test/ https://www.newstalkzb.co.nz/news/business/government-details-proposal-to-reduce-the-bright-line-test/ The Government has confirmed its plans to water down the country’s de facto capital gains tax, known as the bright-line test. It’s proposing to reduce the test from 10 to two years from July 1. This means that from July 1, people who sell residential investment property within two years of purchasing it, will have to pay tax on any gains received. Currently, those who on-sell existing investment property within 10 years, and new builds within five years, are taxed. After July 1, all property will fall under the two-year test. So, someone who on-sold a property they bought three years ago, wouldn’t be taxed, for example. Investors would continue to be taxed at their personal marginal income tax rate, which could be as high as 39 per cent. As is currently the case, someone could be classed an “investor” even if the home they on-sold was the only property they owned. People are only exempt from the tax if the home is considered their “main home”. Currently, one could be taxed in proportion to the time the property isn’t used as a “main home”. So someone who moved out of their “main home” to live somewhere else for work for a few years, could be taxed proportionately if they on-sold within the bright-line period. Under the proposed change, the property would be considered an investment if it wasn’t used as the main home for more than half the time it was owned. The two-year bright-line test would mirror what it looked like when it was first introduced by the former National-led Government. Revenue Minister Simon Watts said, in an amendment paper to the bill that makes the proposed change, that the aim is to return the bright-line test to its “original purpose of ensuring land speculators pay their fair share of tax on gains from property sales”. The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will be passed before the tax year ends on March 31. Deloitte tax partner Robyn Walker said returning the bright-line test to two years would remove a lot of the complexity that accompanied the expansion of the test. The Labour-led Government had extended it to five, and then 10 years when the property market over-heated on the back of all the Covid stimulus in 2021. Walker said the change might prompt those who bought investment property in recent years, and were keen to sell, to hold off until after July 1. The Reserve Bank, in its latest Monetary Policy Statement, similarly noted there could be a flurry of listings after July 1, as investors who have owned their properties for longer than two years, but less than five or 10 years, opt to sell. This could, according to the bank, dampen house prices in the short-term. A large number of listings is already suppressing house price growth. Looking further down the track, the Reserve Bank believed reducing the tax would make property “marginally” more attractive to investors and therefore put a little bit of upward pressure on prices. The proposed change to the bright-line test aligns with what National campaigned on ahead of the election. Act would prefer to the have the test abolished altogether. Before the election, National expected the change would save investors about $50 million a year. Contrary to what the Government has been arguing, the Reserve Bank believed changing the bright-line test and restoring the ability of investors to write off mortgage interest as expense when paying tax, would primarily affect house prices rather than rents. In other words, landlords are unlikely to pass tax savings on to renters. “Recently published research has found the drivers of rents in New Zealand in the past 20 years have been the number of people per dwelling and nominal income,” the Reserve Bank said. “We therefore expect that changes in tax and interest rates are primarily capitalised into land prices.” The interest limitation rule means that residential property investors, who bought from March 27, 2021, cannot deduct any mortgage interest as an expense when paying tax. Meanwhile those who bought before then, can deduct 50 per cent of their interest in the current tax year. Under the proposed policy change, all investors will be able to deduct 80 per cent of their interest in the next tax year, which starts on April 1. Then from April 1, 2025, they’ll be able to deduct all their interest. The change will be particularly helpful for investors with a large mortgages, struggling with cashflow. Nonetheless, it will make it harder for owner-occupiers to compete with investors, as they cannot offset their mortgage interest against their incomes to pay less tax. The Reserve Bank believed phasing out the interest limitation rule would put a small amount of upward pressure on house prices. It noted that high interest rates still mean buyers need to able to prove to their banks they can service debt at elevated rates. The Reserve Bank also made the point new builds are exempt from the interest limitation rule. Furthermore, the rule only affects investors with mortgages. Those without debt, and owner-occupiers (who account for about 63 per cent of sales) aren’t affected. Jenée Tibshraeny is the Herald’s Wellington business editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking. 2024-03-14T07:47:44.416Z New Zealand red-meat exports: Global market challenges reflected in lowest January result since 2019 https://www.newstalkzb.co.nz/news/business/new-zealand-red-meat-exports-global-market-challenges-reflected-in-lowest-january-result-since-2019/ https://www.newstalkzb.co.nz/news/business/new-zealand-red-meat-exports-global-market-challenges-reflected-in-lowest-january-result-since-2019/ New Zealand’s red-meat sector exported products to the value of $759 million in January 2024, according to an analysis by the Meat Industry Association. The association’s chief executive Sirma Karapeeva said the results, down 8 per cent on January 2023, reflected the ongoing volatility in global markets. “Clearly, challenges remain for our red-meat exporters,” Karapeeva said. “This was the lowest January result since 2019.” She said the main contributor to the drop was China, with exports down 21 per cent year-on-year to $263m. However, overall exports to the United States were up 10 per cent to $182m and the United Kingdom by 34 per cent to $38m, she said. The volume of chilled sheepmeat exports also increased by 48 per cent overall, to 4311 tonnes. “While this reflects a recovery from low levels of chilled exports in the last two January periods, it is positive given the logistics disruptions of recent months,” Karapeeva said. Overall, volumes of sheepmeat and beef exports were relatively unchanged compared to last January but the value of sheepmeat exports fell 9 per cent to $305m and beef by 6 per cent to $320m. This reflected the influence of China on overall export values. Exports to China fell both by volume and value, with the free-on-board (FoB) value of sheepmeat down by $1.45/kg to $5.07/kg and beef by $0.99/kg to $7.28/kg. Sheepmeat exports to the US rose 16 per cent to $45m and beef exports by 12 per cent to $120m. Click for more rural and farming newsBeef exports to the UK also continue to grow, from $588,000 last January to over $2m, off the back of the UK Free Trade Agreement that came into effect in May 2023. Sheepmeat accounted for most of the increase in exports to the UK, recovering from the low levels of January 2023. Fifth quarter exports remained steady at $133m. 2024-03-14T01:56:58.211Z Former Hawke’s Bay mortgage broker Natalie Carter sentenced to home detention for falsifying loan applications https://www.newstalkzb.co.nz/news/business/former-hawke-s-bay-mortgage-broker-natalie-carter-sentenced-to-home-detention-for-falsifying-loan-applications/ https://www.newstalkzb.co.nz/news/business/former-hawke-s-bay-mortgage-broker-natalie-carter-sentenced-to-home-detention-for-falsifying-loan-applications/ A mortgage broker who used fake pay slips and documents from fictitious employers to secure home loans for herself and two clients has been sentenced to home detention. Natalie Ann Carter pleaded guilty to a raft of charges in the Napier District Court following a Financial Markets Authority (FMA) investigation. She was convicted of three forgery charges, two of obtaining credit by deception, two of attempting to obtain credit by deception, using a forged document, deceiving the FMA and making a false statement. The FMA said between 2018 and 2020, Carter created fraudulent loan applications for herself and two clients. She applied for seven loans totaling $2.91 million in value. At least three were successful, to a total value of $1,087,700. Carter was sacked from a Hawke’s Bay brokerage in January 2020 and the FMA was notified of several concerns, prompting an investigation. Judge Gordon Matenga sentenced Carter to home detention for 12 months – the maximum available. FMA head of enforcement Margot Gatland said Carter’s fraud involved “significant planning”. “She used her role and skills as a financial adviser to create fraudulent loan applications and documents to evade lending criteria that she and her clients did not meet. “Her behaviour not only breached of the ethical standards expected of financial advisers but may undermine trust in the industry.” As a result of her convictions, Carter is automatically banned from being a director or taking part in the management of a company for five years. As part of the sentencing, the FMA also sought an additional ban under the Financial Markets Conduct Act to prohibit her from providing financial advice services for five years, which was granted by Judge Matenga. Ric Stevens spent many years working for the former New Zealand Press Association news agency, including as a political reporter at Parliament, before holding senior positions at various daily newspapers. He joined NZME’s Open Justice team in 2022 and is based in Hawke’s Bay. 2024-03-13T00:12:13.060Z Fruit and vege prices fall 9 per cent in last year as food price inflation continues to ease https://www.newstalkzb.co.nz/news/business/fruit-and-vege-prices-fall-9-per-cent-in-last-year-as-food-price-inflation-continues-to-ease/ https://www.newstalkzb.co.nz/news/business/fruit-and-vege-prices-fall-9-per-cent-in-last-year-as-food-price-inflation-continues-to-ease/ Fruit and vege prices have fallen 9.3 per cent in the past 12 months driven down by tomatoes, broccoli, and lettuce, new Stats NZ data shows.  Overall food price inflation was just 2.1 per cent for the year to February - the lowest it has been since the year to May 2021. Meat, poultry, and fish prices – increased just 0.2 per cent.  But it was bad news for those who enjoy eating out, with the cost of restaurant meals (and ready-to-eat-food) increasing by 6.7 per cent.  “Going out for a meal or grabbing takeaways was more expensive in February 2024,” said Stats NZ consumer prices manager Will Bell.  Over all supermarket grocery food prices increased 3.9 per cent and non-alcoholic beverage prices – increased 4.3 per cent. However, on a monthly basis (compared to January) groceries, as well as meat poultry and fish were down 0.5 per cent.  As well as releasing food price data today Stats NZ has also released its monthly Selected Price Index which captures food, accommodation and travel costs.  The combined Selected Price Index (SPI) series offers a monthly read on price changes for around 45 per cent of New Zealand household spending. The full Consumer Price Index is released just quarterly.  The SPI data for February showed some hefty rises - on an annual basis - for alcoholic drinks, up 5 per cent and tobacco, up 10.4 per cent.  Petrol prices rose 12 per cent for the year and domestic air travel was also up 7.7 per cent. International travel prices fell 2.8 per cent over the year, but the price of an overseas holiday almost certainly didn’t - due to accommodation costs.  Prices for international accommodation increased 24.5 per cent in the 12 months to February 2024, after a decrease of 6.3 per cent in the 12 months to February 2023.  “The cost of staying at accommodation while abroad, is more than 40 per cent more expensive than five years ago,” Bell said.  2024-03-12T22:28:18.465Z Coromandel tourism: Peak holiday period put pressure on local infrastructure https://www.newstalkzb.co.nz/news/business/coromandel-tourism-peak-holiday-period-put-pressure-on-local-infrastructure/ https://www.newstalkzb.co.nz/news/business/coromandel-tourism-peak-holiday-period-put-pressure-on-local-infrastructure/ Hundreds of thousands of people travelled to the Thames-Coromandel area over the peak holiday period and while this should be positive, there are concerns retail spending figures hadn’t kept up with inflation and pressure on local infrastructure surged. Thames-Coromandel District Council questioned the figures last week, following a report submitted by the council’s district emergency and crisis manager Garry Towler. While $96 million had been spent in the district during the December/January period, $8m more than the previous year, district councillor John Grant said those figures were similar to the 2019/20 year. There had been a reasonable amount of inflation in the following years to 2023/24, he said, and it was a “little concerning to see those numbers”. “We haven’t really seen any increase in spend.” Councillors were told people were spending less on eating out and instead buying at supermarkets and doing a lot more activities at home. Thames-Coromandel District Council Mayor Len Salt said the council was concerned that while visitor numbers were up, the economic spend was down. Salt said the district had a responsibility to support the community and if the spending trend continued to go down, it would be cause for concern “for all of us”. Councillor Peter Revell added that the forestry and aquaculture industries were also affected, not only tourism. Towler’s report outlined key statistics after staff had undertaken a peak summer season preparation and debrief project since 2018. In September of each year, staff identified potential risks and issues and developed mitigations while contingency plans, emergency plans and processes were reviewed. This project culminated in a report in December each year, confirming the level of confidence the council had to manage the peak influx period. Hotwater Beach in the Coromandel is a popular summer destination. Photo / Mike Scott The most recent peak period was identified as December 25, 2023 to January 5, 2024 as those 12 days represented the “busiest time of the year”. During that period, it was estimated that between 250,000 and 300,000 people visited the Coromandel. It was considered an average figure, compared to pre-Covid summers. The report showed the majority of visitors stayed across the eastern seaboard, between Whangamatā and Matarangi. Towler said events and markets across the district were well supported. Two concerts, one each in Whitianga and Whangamatā, attracted between 3,500 and 4,000 people. Thames-Coromandel District Mayor Len Salt. Coastguard data released showed 6,000 trips were logged by boaties over the peak period, resulting in 43 callouts for assistance. Overall, spending by visitors was on average 20 per cent up on last year’s figures. “Although a positive result, it is important to note that at the same time last year, the Coromandel was severely impacted by storms and two cyclones. Council infrastructure was, as always, put under pressure,” Towler said in the report. He said that while local roads held up “very well with no major issues reported”, requests for service over the peak period totalled 943. The majority of calls related to solid waste complaints, followed by regulatory and water issues. The majority of calls related to solid waste complaints, followed by regulatory and water issues. Photo / Laura Smith Around 35 per cent of calls were from the Mercury Bay area while Whangamatā made up 26 per cent of calls, followed by Tairua-Pāuanui with 18 per cent. Communications reported a 100 per cent increase in social media traffic during the peak period, with 110,000 hits on the council’s Facebook page. Key messages revolved around solid waste collections, weather warnings and water restrictions. Maintenance and repair crews were able to respond and stay on top of normal callouts for blocked drains, potholes and damaged or missing signs. Waste Management experienced its first peak period workload as a council contractor and recently-introduced tags, food scraps and a rubbish bin system caused some confusion and issues across the district. Towler said in the report that while local roads held up “very well”, requests for service over the peak period totalled 943. Photo / Mike Scott “Only 132 missed collections were reported during the peak period, an indication that overall, waste management went well.” The seven refuse and recycling transfer stations across the district received a couple of thousand tonnes of rubbish and recycling materials from Boxing Day until the end of January. There were another few hundred tonnes of rubbish and recycling materials collected from kerbsides in the same period. Water demand overall was down on previous years with 312,528 cubic metres consumed, compared to the highest demand recorded in 2021/2022 of 347,073 cubic metres. Water restrictions were in place between nine and 13 days across the eastern seaboard and Coromandel Town. This resulted mainly from heavy rainfall turbidity issues that reduced reservoir levels. One boiled water notice for a 24-hour period was in place at Matarangi, again due to turbidity issues. There were three reported wastewater issues when minor overflows occurred during heavy rain. Overall, for water and wastewater, there were no consent breaches. 2024-03-12T02:38:46.045Z Simon Bridges to become chair of NZ Transport Agency Waka Kotahi https://www.newstalkzb.co.nz/news/business/simon-bridges-to-become-chair-of-nz-transport-agency-waka-kotahi/ https://www.newstalkzb.co.nz/news/business/simon-bridges-to-become-chair-of-nz-transport-agency-waka-kotahi/ Simon Bridges, the former National Party leader and Transport Minister, has been appointed the chair of NZ Transport Agency Waka Kotahi. The appointment was made by Transport Minister Simeon Brown and announced today. Bridges has been appointed for a term of three years. “Simon brings extensive experience and knowledge in transport policy and governance to the role. He will have a strong focus on delivery and outcomes and ensure that NZTA is working to implement the Government Policy Statement on land transport, which will provide the infrastructure New Zealanders need,” Brown said. “Transport is a critical part of the Government’s plan for economic growth and productivity, and I look forward to working closely with Simon over the coming years to deliver the Government’s transport objectives,” he said. Bridges was first elected to Parliament in 2008, winning the seat of Tauranga by beating a challenge from NZ First leader and current Deputy Prime Minister, Winston Peters. Peters did not hold the seat at the time, having lost it at the prior election. Bridges’ victory, combined with NZ First falling below the 5 per cent threshold, meant the party disappeared from Parliament until the next election. In 2014, Bridges was made Transport Minister, implementing a roading-intensive policy not unlike what the current National Government is keen to roll out. He won the National leadership in 2018, after the resignation of Bill English, but lost it in a coup in 2020. Bridges was considered likely to return to the leadership in 2021, when then National leader Judith Collins appeared to be losing her grip on power. As it happened, Bridges never officially declared his candidacy, reaching an agreement with Christopher Luxon that saw Bridges become the party’s finance spokesman. Bridges is currently the head of the Auckland Business Chamber, having retired from Parliament in 2022. Brown said: “Transport is a critical part of the Government’s plan for economic growth and productivity, and I look forward to working closely with Simon over the coming years to deliver the Government’s transport objectives”. Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018. 2024-03-11T02:03:23.000Z TVNZ job cuts live updates: More than 60 roles to go; 6pm news, current affairs shows in spotlight - Media Insider https://www.newstalkzb.co.nz/news/business/tvnz-job-cuts-live-updates-more-than-60-roles-to-go-6pm-news-current-affairs-shows-in-spotlight-media-insider/ https://www.newstalkzb.co.nz/news/business/tvnz-job-cuts-live-updates-more-than-60-roles-to-go-6pm-news-current-affairs-shows-in-spotlight-media-insider/ Grim scenes are unfolding within TVNZ today as staff receive emails inviting them to meetings, in the wake of a plan to cut almost 70 jobs. Up to 68 roles at TVNZ will be cut and some of the company’s top news and current affairs shows are facing an uncertain future, as the broadcaster strives to remain “sustainable”. More than a dozen staff from the Sunday show have been called to a consultation meeting at 9am tomorrow - one of many meetings that will unfold across the company through the day. Fair Go staff have also been called to a meeting. A source said today that staff were receiving meeting invites on their computer, without any direct conversation with leaders. The Herald has been told of some staff being left distraught as they receive an email. TVNZ confirmed today up to 68 roles are set to be cut across the business - Media Insider understands around 35 are in the news and current affairs division. Broadcasting Minister Melissa Lee said in Question Time today she talked to the TVNZ heads last night after getting an email from them about the proposed restructure under the “no surprises” policy, but did not have the details of what was happening. “They haven’t actually asked for any financial support, but I sent a message that I was feeling for the staff and they should do it with heart and care,” Lee said. She said TVNZ had also spoken to her last week about a potential restructure. In a media statement, TVNZ chief executive Jodi O’Donnell said tough economic conditions and structural challenges within the media sector were affecting revenue performance. Difficult choices needed to be made “to ensure TVNZ remains sustainable”. Kia ora. TVNZ has today told staff it will move to cut 68 jobs. Here's what you may have missed so far: Up to 68 roles at TVNZ will be cut. TVNZ chief executive Jodi O'Donnell said tough choices need to be made "to ensure TVNZ remains sustainable". The news comes days after the broadcaster announced an interim operating loss of $4.6 million for the last six months of 2023. A confirmed structure is expected to be finalised by early April. STORY CONTINUES AFTER LIVEBLOG (function(n){function c(t,i){n[e](h,function(n){var r,u;if(n&&(r=n[n.message?"message":"data"]+"",r&&r.substr&&r.substr(0,3)==="nc:")&&(u=r.split(":"),u[1]===i))switch(u[2]){case"h":t.style.height=u[3]+"px";return;case"scrolltotop":t.scrollIntoView();return}},!1)}for(var t,u,f,i,s,e=n.addEventListener?"addEventListener":"attachEvent",h=e==="attachEvent"?"onmessage":"message",o=n.document.querySelectorAll(".live-center-embed"),r=0;r',c(t.firstChild,i)))})(window); STORY CONTINUES TVNZ’s news boss Phil O’Sullivan has told staff in an internal email the proposed cuts are “devastating” and O’Donnell told staff that tomorrow will be a “confronting” day at TVNZ as it starts rolling out proposals to affected staff. It is understood several of TVNZ’s top news shows, including Sunday and Fair Go, are in the spotlight and there were earlier reports that even the 6pm news could be cut back to half an hour. Staff would be taken through the proposed changes tomorrow, a TVNZ spokeswoman said. The TVNZ moves come just a week after Warner Bros. Discovery announced it would close Newshub at the end of June, with the loss of around 300 jobs. The 68 roles to go represent almost 10 per cent of the state broadcaster’s 700-strong workforce. “We are giving 24 hours’ notice prior to meetings with those whose roles may potentially be impacted,” news boss O’Sullivan said in his message to staff. “This is happening across all departments at TVNZ. “This is devastating for those people invited to meetings and very tough for everyone else. Myself and our leadership team will be in those meetings tomorrow morning but we’ll hold an all NCA [news and current affairs] hui at 1pm tomorrow. Expect an invite soon. “There is not a lot more I can say at this point, except to please ask we show respect and kindness to those affected by today’s announcement. As always seek out support if you need it. We are in the leadership team are happy to talk despite the limitations on what we can say.” In her media statement, O’Donnell said TVNZ’s executive team had been focused on reducing operating costs over the last 12 months. “Unfortunately, we’re now at the point where we need to reduce the size of our team to bring our costs more in line with our revenue. Changes like the ones we’re proposing are incredibly hard, but we need to ensure we’re in a stronger position to transform the business to meet the needs of our viewers in a digital world. “There are no easy answers, and media organisations locally and globally are grappling with the same issues. Our priority is to support our people through the change process - we’ll take the next few weeks to collect, consider and respond to feedback from TVNZers before making any final decisions.” Simon Dallow hosts TVNZ's flagship 6pm news bulletin. Photo / File A confirmed structure is expected to be finalised by early April. In an internal note to staff, O’Donnell said: “I know this is not the news any of us want to hear, and it’s certainly not a message I want to deliver, but I want to be upfront with you and ensure that you hear it from me. ”TVNZers who may be impacted by the proposed changes will receive calendar invites today for consultation meetings tomorrow. ”The exec team has been focused on reducing costs over the last 12 months. Unfortunately we’re now at the point where we need to reduce the size of our team to bring our costs more in line with our revenue and ensure we’re the right shape and size as we continue to transform to meet the needs of viewers in a digital world.” She said tomorrow would be a “confronting day for all of us here”. “Yesterday’s media speculation was disappointing but we know there will be public interest so we’ll be advising external media that we’re proposing changes in a release shortly.” It is understood every news and current affairs show has been put under the spotlight in recent weeks, aligned with O’Donnell’s clearly stated position that there are “no sacred cows”. RNZ’s Checkpoint has suggested the broadcaster is looking to cut the length of the 6pm news from one hour to 30 minutes. The Herald understands shows such as Sunday, Fair Go and Seven Sharp have also faced scrutiny and staff are anxiously awaiting to hear today of any proposed changes in those areas. TVNZ Sunday host Miriama Kamo. And it’s not just in news - TVNZ has been looking at its entire slate, including entertainment. Media Insider understands this includes one of the biggest sacred cows of all, Shortland Street, TVNZ 2′s 7pm weekday show, which has been a staple of the New Zealand television diet for 32 years. TVNZ would not answer any questions directly yesterday, issuing a broader statement that said the company had been upfront about reducing jobs and needing to develop “a more sustainable operating model to take us into a digital future”. TVNZ - which last week reported a half-year loss of $16.7 million - has made no secret of the fact that it is looking at all costs. It has cut back its executive and middle management numbers in recent months and it has been widely expected that its newsroom numbers would come under scrutiny. “We’ve been upfront with TVNZers that we will need to reduce our headcount to meet the immediate revenue challenges facing the business,” a TVNZ spokeswoman told Media Insider on Wednesday. “We also need to develop a more sustainable operating model to take us into a digital future.” One source said a meeting had been scheduled to discuss a future strategy but the spokeswoman would not confirm this or any details. “We will always take our people through proposed changes first, and so we have no comment to make on the timing or details of any business restructuring at this stage.” Last week, TVNZ told Media Insider that its headcount had come down over the past 12 months. “We report on FTE [fulltime equivalent] each year in our annual report, for FY23 this was 735 and today we’re around 700,” said the spokeswoman. “We do not have an FTE target that we’re working towards. As a commercially funded business, we’ll always need to align our costs with our revenue position.” There are just under 300 news and current affairs employees. On Friday last week, TVNZ delivered a “tough” interim financial result reflecting a challenging media market - an EBITDAF of $100,000, a $4.6 million operating loss and an impairment of $12.2m, resulting in an after-tax loss of $16.7m for the six months to December 31, 2023. The impairment pushes the six-month loss past the full-year forecast loss of $15.6m. New TVNZ CEO Jodi O’Donnell in the heart of the 1 News newsroom. Photo / Dean Purcell In a recent interview with Media Insider, O’Donnell was clear there were no “sacred cows” as the state broadcaster considers all of its costs. Shortland Street is one of those shows under scrutiny. TVNZ fully funds Shortland Street to the tune of millions of dollars a year (it stretches to eight figures but the exact costs are deemed commercially sensitive) and with no assistance from the likes of NZ on Air. “Everything is under the spotlight,” said a TVNZ spokeswoman. “There are no changes for any shows that I can give you information on today.” Several options are likely under consideration - production costs most definitely, but also the frequency of the shows, and whether the 7pm linear timeslot might be freed up for a more commercially attractive offering. Broadcasting Minister Melissa Lee. Photo / RNZ, Samuel Rillstone Broadcasting minister Melissa Lee told Newstalk ZB’s Heather du Plessis-Allan on Wednesday evening that she had “no idea” what TVNZ’s announcement to staff would be. “I don’t know the details. I haven’t actually caught up with any of the messages that have come through as I’ve had a busy day today.” Lee said she did have a meeting with TVNZ last week. “[In] the conversation that I had with TVNZ last Friday, we talked about a range of things. They were talking about some of the things they will have to do to make sure they are financially viable. I don’t think I can say that [what they said]. Because they did not tell me that they were cutting staff. “They’re talking about programming that they will have to consider. It is for TVNZ to answer those questions [about job losses], it is an operational matter. They were looking at many things.” On RNZ’s Checkpoint on Wednesday evening, Lee also confirmed she had spoken with TVNZ on a range of matters - including the revelation, first reported by Media Insider - that Warner Bros. Discovery had approached the state broadcaster to set up a joint newsgathering service to cut costs. TVNZ rejected that idea, and a week later Warner Bros. Discovery announced Newshub’s pending closure. Du Plessis-Allan asked Lee what the Government could do to help media. “There aren’t that many levers that a Broadcasting Minister actually has.” One way to potentially help was with regulation. However, Lee told du Plessis-Allan: “I do not believe the Government should be propping up media companies.” Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME. 2024-03-06T18:39:01.000Z