Category: Business

Source: Radio New Zealand

A demographer believes the prime minister is promising a solution to an immigration problem that does not exist.

Christopher Luxon has told business leaders immigration was an emerging political issue and to expect “careful” immigration policy from National – and that the party would put social cohesion ahead of businesses’ profits.

Independent think tank Koi Tū senior fellow and distinguished professor emeritus Paul Spoonley said while immigration had become a polarising globally, that was not necessarily the case in New Zealand.

He said immigration had risen a bit as an issue, but it was not a top 10 concern for New Zealanders – as identified in the latest Ipsos issues monitor. He said polling showed the majority of New Zealanders viewed immigration positively.

“I can only assume that the prime minister is beginning to react to his two coalition partners both of whom seem to want to make immigration a central issue for the coming election, but also to see immigration as somehow being divisive and an issue for New Zealanders – I don’t think it is.”

Spoonley said New Zealand’s points-based system was strict compared to many other OECD countries where immigration had become polarising.

“They’re dealing with high numbers of refugees and asylum seekers. We are not. We [have] an economically-focused skills-based system, so we are very selective.”

He wanted to see more extensive programmes to help immigrants better settle and said such work was important for social cohesion.

“We are one of the most super-diverse countries in the world – 30 percent of us are born overseas, in Auckland 43 percent are born overseas.

“By and large, it works really well. So what is the problem, or what is the issue here that the prime minister thinks we need to address?”

Spoonley said while New Zealand did a “pretty good job” with recruiting and selecting migrants, that did not mean there should not be debates about immigration, particularly around net migration numbers which had been volatile in recent years.

Hospitality New Zealand chief executive Kristy Phillips said the devil would be in the detail of National’s immigration policy and businesses were keen to know what “careful” meant.

“Does careful equal workforce enabling policy and operational survival for our members?”

She said while effort was going into training local talent, the industry relied on skilled migrants to fill gaps in the workforce.

“It’s already difficult for workers to maintain roles and gain pathways to residency within the hospitality industry in New Zealand.

“We would be hoping that this ‘careful’ plan does not make that any harder.”

Phillips said residency pathways were integral to the sector’s long-term workforce stability.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The Natural Hazards Commission [NHC] is now receiving more claims for damage from landslides than for any other natural hazard.

NHC received almost 13,000 claims for damage from landslides in the last five years, 10,000 more than the previous five years.

“Landslides can happen with little warning and cause significant damage to homes and property and in some cases put lives at risk,” NHC chief executive Tina Mitchell said.

“As storms become more frequent and intense, landslides are understandably a growing concern for many communities,” she said.

Mitchell said it was good to understand the risks in your are and practical things that can be done to strengthen your property.

“Regular maintenance, good drainage, and getting expert advice early can make a real difference,” Mitchell said.

“If you have concerns about retaining walls or slope stability, a geotechnical engineer can help assess risks and recommend next steps.”

Homeowners living on or near slopes are encouraged to be alert to early warning signs of instability, such as cracks in the ground, leaning retaining walls, or changes after heavy rainfall.

“It is also important to understand how your insurance works. That allows homeowners to make informed decisions – whether that’s strengthening their property or planning for any gaps in insurance cover,” she said.

For those buying property, NHC recommended checking the Natural Hazards Portal for information about previous claims relating to landslides or other hazards, which can indicate future risk.

“Understanding your property’s natural hazard risks before an event occurs can help reduce stress and financial pressure later,” Mitchell said.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

• RBNZ survey shows a more pessimistic view of the economy
• Weaker growth, higher inflation and unemployment, and a cash rate rise are expected in the near term
• Key two-year inflation outlook rises to 2.53 percent, but stays in target band
• Survey was taken of select economists and business leaders in late April
• RBNZ attaches importance to survey

The Middle East conflict has soured economic forecasters’ and business leaders’ views on the economic outlook for the coming year.

The quarterly survey done for the Reserve Bank (RBNZ) showed expectations that the economy will have stronger inflation, higher interest rates and unemployment, and weaker growth.

Inflation is expected to hit 3.41 percent in the year ahead, from 2.59 percent forecast in the previous survey in March.

The two year inflation forecast, which the RBNZ follows closely because it’s assumed to be the most influenced by monetary policy moves, rose to 2.53 percent from 2.37 percent.

The current inflation rate to the end of March was 3.1 percent.

Five and 10-year inflation forecasts were lower than the March survey and showed inflation staying well fixed in the 1-3 percent target band.

RBNZ governor Anna Breman has stressed that inflation expectations will be an important factor in setting the official cash rate (OCR).

Economic growth to slow, OCR to rise

The survey’s respondents expected gross domestic product (GDP) – the broad measure of economic growth – to slow over the next two years.

The forecast for this year was 1.58 percent from 2.03 percent in the March survey. The two year forecast was trimmed to 2.16 percent from 2.3 percent.

The one-year OCR expectation rose to 3.01 percent from 2.58 percent.

The RBNZ issues its next monetary statement on 27 May, with financial markets pricing in a 50 percent chance of a 25 basis point rise in the OCR to 2.5 percent at that meeting.

Economists are generally forecasting the first rate rise between July and September, with a broad view the OCR will be sitting around 3.0 percent by year end.

No smoking gun

ASB senior economist Mark Smith said the RBNZ will be reassured by the figures, but will want them backed by other surveys and pricing data.

He said the fall of the five and 10 year inflation forecasts to closer to the 2 percent mid-point in the target band would offer some cheer to the RBNZ, but in the near term interest rate hikes to counter the inflation spike caused by the conflict were inevitable.

“OCR hikes are a matter of when and not if.

“If evidence points to a generalised and persistent uplift in inflation emerging, more proactive monetary normalisation is warranted, particularly with a troublesome short-term inflation outlook and with the 2.25 percent OCR below circa 3.25 percent neutral levels,” Smith said.

“If not, the RBNZ will probably wait but they run the risk of having to undertake a more protracted tightening cycle if they fall behind the curve.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Health and wellbeing insurer AIA has paid out a total of $790 million in claims over the past year, including a 12 percent increase in income protection payouts.

Still, total claims paid in 2025 were down 4.7 percent on 2024’s $829.6m, which reflected larger life insurance payouts.

2025 claims paid versus 2024

• $177.31m paid in health insurance claims (including $93.5m in heart-related claims) vs $167m
• $257.73m paid in life insurance claims vs $298.1m
• $142.45m paid in trauma claims vs $139.5m
• $108.69m paid in income protection claims vs $97.2m
• $21.35m paid in total permanent disablement claims vs $23.9m.

Alongside heart claims, AIA said it was seeing growth in high value medical claims, including chemotherapy and complex spinal procedures.

The company said claim payments were highest among customers aged 50 to 59.

AIA said it paid out on 91 percent of claims received in 2025.

An AIA spokesperson was not available to respond to questions.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The popular Milford Track was mostly sold out within half-an-hour of bookings opening, with thousands queuing online to secure a spot.

There were about 7000 available for the ‘Great Walk’.

Last year, the Department of Conservation (DOC) upgraded its online booking system to include a virtual queue to help manage peak demand after multiple crashes in previous years.

In 2023, the booking website crashed for several hours when 10,000 people tried to book the Milford Track at once, with further crashes in 2024.

DOC heritage and visitors director Cat Wilson said demand was intense from the moment bookings opened, with about 13,500 users already in line – higher than the roughly 12,000 users recorded last year.

“The Milford Track remains one of New Zealand’s most sought-after experiences, and we saw extraordinary demand again this morning,” Wilson said.

“Despite the very high traffic volumes, the booking platform performed well and people moved steadily through the queue.”

Wilson encouraged people to consider off-peak times, other Great Walks and other tracks and huts.

“There are still fantastic experiences available outside the busiest summer months, and people should also continue checking the booking system as cancellations and changes do occur throughout the season,” she said.

“It’s fantastic to see so many people planning adventures and getting excited about naturing in some of Aotearoa’s most special places.”

Bookings for the remaining Great Walks, huts and campsites continue to open on staggered dates this month.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Kiwibank has been instructed by the government to once again look at its options for long-term growth, including revisiting the possibility of partial privatisation.

The taxpayer-owned bank had previously looked at raising $500 million in capital from local investors, but ditched that plan last year.

The new request is included in a letter of intent to Kiwibank’s parent company Kiwi Group Capital (KGC) from State-Owned Enterprises Minister Simeon Brown.

“We expect KGC to undertake work on alternative growth scenarios, along with the capital required for these.” Brown said.

He went on to note in the letter that KGC should now engage with Treasury about how much capital might be required for different growth scenarios.

In accompanying Cabinet paper, Brown and Finance Minister Nicola Willis signalled that while the government wanted Kiwibank to grow into a market disrupter that can boost competition, the government’s coffers were constrained and it was unlikely to be in a position to provide extra capital.

“The Crown could continue to be the sole provider, or be one of the contributors, of additional capital,” the paper said. “However, this would see Crown funding directed to Kiwibank and away from other priorities. Given the significant constraints we are facing, the Crown is not in a position to support this course of action.”

The paper also noted that if Kiwibank was to grow and increase competitive pressure, it would need to know in advance that it had access to capital markets.

Last year KGC said that the easing of the Reserve Bank’s capital settings, combined with Kiwibank’s recent $400m Tier 2 capital raise via bonds, meant it could grow without the need for additional equity.

The government had approved the possible partial public listing for Kiwibank to acquire new capital, but had stressed it could only proceed with an electoral mandate.

National promised no asset sales this term.

The Commerce Commission’s banking study in 2024 said Kiwibank should be given a financial boost to become a maverick challenger to the big four.

Kiwibank’s response

In a statement to RNZ, Kiwibank’s parent company KGC stressed it had sufficient capital to fund its lending growth in the medium-term and noted that the Crown had asked it to work with Treasury on new options for raising capital in future that could boost Kiwibank’s ongoing competitive potential.

“This process will consider a range of factors including investor feedback, market conditions and growth scenarios, as well as the potential amount, sources and timing of any future capital requirements” the statement said.

It went on to stress that it was early-stage work, and no decisions had been made on timeframes.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A multimillion-dollar Wellington Pavilion project, reviving a heritage waterfront spot, has lost its high-profile chef.

The developer Watson Group said it was in discussion with different operators, and was reviewing the project timetable but still intended to open next year.

The Oriental Bay Band Rotunda – which was built in 1937 and has housed several restaurants over the years – is one of Wellington’s iconic historical buildings, but closed due to quake concerns since 2012.

In September last year it was announced the developer had formed a partnership with restaurateur and chef Ben Bayly and local brewers Garage Project to put a restaurant and bar on the site. A day spa and is also in the works for the spot.

Bayly, who had a number of restaurants around the country including Ahi and Origine in Auckland, Arrowtown, and The Bathhouse in Queenstown, told RNZ he left the project in March.

“Unfortunately, we simply couldn’t reach commercial terms with the building developer, and we parted ways in March,” he said.

“To say we are disappointed to withdraw from the project after a year of hard work, passion and energy is an understatement, however we wish the project and the future operators well, and look forward to [seeing] the building and venue flourish in the future, as the people of Wellington deserve.”

Despite leaving the project, Bayly said he would love to have a restaurant in Wellington one day.

“I’d love to open a place down there, I love the city, and it just wasn’t to be this time.”

In a statement, the Watson Group said: “The main change is that we were unable to reach final commercial terms with Ben Bayly and his team. That was disappointing, given the work invested by all parties, but it was a commercial decision. We remain on good terms and wish Ben and his team well.

“We are now progressing discussions with alternative operators who are well suited to the building, the location, and the long-term vision for the Pavilion.”

It said the project timetable was being reviewed as part of the operator transition and final fit-out planning.

“At this stage, the intent remains to reopen the Pavilion in 2027, subject to finalising operator arrangements, fit-out scope, and construction sequencing.”

It said “normal commercial and programme matters” were being worked through, as with any heritage redevelopment of this scale.

“Our focus is unchanged: to restore and reopen this important Wellington building as a high-quality public-facing venue that the city can be proud of.”

The Pavilion’s beer partner Garage Project was still involved in the project.

Garage Project co-founder Jos Ruffell said “work’s progressing and hopeful that we’ll be operational later this year. But yeah, hard to know if that’ll actually happen or not, but we’re always optimistic.”.

Asked if any issues had come up, he said, “Nothing other than what you’d expect on building projects.”

He said it had been great collaborating with the Watson Group team.

He said operators were “heads down, working on it. I’m excited to see it come and hopefully be in place for summer.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Aged care provider Radius Residential Care has reported a strong full year result with net profit up 36 percent on the back of 14 percent revenue growth.

The company, which operates 24 aged care homes, made a full year profit for the year ended March of just over $10 million, with revenue of $202.5m.

Chief executive Andrew Peskett said the results were driven by stronger occupancy and other operating metrics across the business, with occupancy up 2.1 percentage points to 94.9 percent on average.

Underlying profit was up 17 percent to $27.4m or $31,100 per bed, compared with $27,900 per bed the year earlier.

The company expected to open its 25th aged care home at the end of the month, with plans to build an additional six villas over the current year.

It expected its financial performance would be further boosted by those developments.

It will pay a final dividend of 1.2 cents per share.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

A group of Hawke’s Bay growers is looking at whether it could take over the McCain vegetable processing factory and save the industry.

McCain is closing its frozen vegetable factory in Hastings, a decision that’s impacting more than 100 growers of peas, beans, corn and carrots.

The international company said it had reviewed operations at the site and ‘considered a range of options to strengthen the long-term position of the site’.

However, it said the business was ‘unable to identify a sustainable pathway under the current model’.

The decision is a huge blow to the industry in Hawke’s Bay, where the impact is being felt widely from growers to contractors, and mechanics to factory workers.

Alistair Setter has been farming in Central Hawke’s Bay for decades, and told RNZ the closure has come as a shock, and with no warning.

“I was like, oh gosh…have we really grown our last crop of peas? My father grew peas back in the 70s and it’s an important business for us but it’s also an emotional thing as well.

“It’s a great thing to be part of that pea growing business – you think you’re doing good for the world and everything else. As the days go by it kinda sinks in and it really feels like a loss on quite a few levels,” Setter said.

He owns 180 hectares near Ongaonga, growing crops over the warmer months and grazing cattle in winter. About a quarter of his income is from supplying peas to McCains – so the financial hit is substantial.

“It will be significant and we will have to think of alternatives… but they won’t pay as much and it will put risks on other cropping programmes… so yeah we’ve got challenges,” he said.

“There are wider issues at play here about how we handle food security as a nation.. when the industry’s go they’re very hard to get back,” Setter said.

One of the alternatives could be a group of growers taking over the current McCain’s factory site, and processing their crops themselves.

Since the closure was announced several meetings have been held between ministers, mayors, and growers to see if anything can be done to save the industry in Hawke’s Bay.

Setter said there were a lot of people keen to see the pea, bean and corn cropping industry survive.

“There’s a lot of desire among farmers like myself and other industry participants to have a go at trying to save it.

“It’s a big thing to try and organise, and it’s a big business, but there is a lot of will out there. The farmers we know around here, a lot of them are really capable business people so sometimes when there is a will and a need… maybe there is a way,” Setter said.

One of those farmers is Hugh Ritchie. He’s been growing peas for McCain for over 30 years and said for it to work, there must be more scrutiny of the food production chain. He said to understand why big companies like McCain can’t make it work, everyone’s margins, from growers to supermarkets, must be analysed.

“If we don’t solve this problem and really understand why it’s happening then it’s just going to be the start of a downward spiral on the domestic production of food,” said Ritchie.

Central Hawke’s Bay mayor Will Foley is also keen to find out the cause of McCain decision.

“It doesn’t seem right that we can’t produce that food and sell it locally and for export – all at a success. That’s why we want to get to the bottom of what is going on here and can we take it on ourselves,” he said.

However, the pressure is on because McCain is only using its Hastings factory until January; after that the machinery could be packed up and sent overseas.

“There is a lot of urgency because any businesses involved that are thinking there is no more business going forward, they are needing to dispose of their assets, otherwise it’s just a cost to them..

“And if we lose those assets and have to start again, the cost to start up will be so much more than if we can take over what is already there,” Foley said.

The Minister for Agriculture, Todd McClay, said he had a constructive and informative meeting with the region’s mayors last week.

“There is a huge amount of optimism in the region and the Minister is looking to meet with growers over the coming weeks,” he said.

McCain told RNZ it has received ‘potential interest in the plant and its equipment from several parties and is continuing discussions’.

‘Massive’ flow-on effect

Many growers, especially for crops like peas, beans and sweet corn, would normally get a contract in mid-year and then start planting crops through August and September.

The impact of McCain closing is rippling through the region, from growers to factory workers, to companies selling seeds and chemicals, contractors and machinery engineers.

Fogarty Spraying in Ongaonga sprays about 1500 hectares of McCain crops each season, and employs three people to help run the operation.

Owner Stuart Davies told RNZ that with McCain’s shutting up shop he’s looking at scaling down by cutting one worker and possibly selling one of his spraying machines.

He said while others were much harder hit than him, this was the kind of impact that was being felt widely in the region.

“That whole economical side of it. It’s all singing and dancing until all of a sudden the big red button’s been hit and that’s it – she’s all stopped. It has a massive flow-on effect,” he said.

Davies said luckily there was currently a lot of confidence in other farming sectors like red meat and dairy, but it would still be a tough time for growers.

The news came out of the blue for most, and Davies said McCain could have done a better job at communicating its closure, as there was no notice that it was even being considered.

“We didn’t quite expect the rug to be pulled just like that, it would’ve been nice to have some warning.

“That was the feel around the place – that the rug was pulled pretty abruptly rather than maybe a softly softly ‘hey guys this is happening in 18 months’,” he said.

McCain declined RNZ’s request for an interview, saying in a statement the business informed key stakeholders of the closure on the same day as its Hastings team was told.

“We indicated to our stakeholders that we are available to answer any questions about the closure and are also available to discuss the impact the closure may have on them.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Soaring petrol prices could be deepening the cost-of-living divide between urban and rural communities, with new data suggesting households in parts of rural New Zealand are spending nearly a quarter of their total discretionary spending on fuel and some regions seeing record petrol prices.

Figures and analysis provided to RNZ by Dot Loves Data showed that in April motorists in many rural districts spent as much as five times more of their household budgets on fuel than city dwellers.

In Hurunui, fuel accounted for 24 percent of all household spending in April, compared to 16 percent in December 2025, before the US-Iran war began. Local consumers in the Mackenzie district, Rangitikei and rural Waikato regions spent 23 percent on petrol and diesel (up from 18 percent, 19 percent and 21 percent respectively in December).

Other districts where drivers are feeling pain at the pump include Selwyn at 22 percent (up from 16 percent in December), Southland at 21 percent (up from 15), and Opotiki at 21.5 percent (up from 19).

By contrast Wellington households spent just 5 percent of their weekly budget on fuel in April, a jump of 1 percent from December.

The national media for April was 13 percent of total discretionary spending, compared to 10 percent in December.

Nelson sits at 8 percent (a 2 percent increase), and Dunedin and Queenstown at 9 percent (up 6 and 7 percent respectively). Auckland and Christchurch sit 11 percent and 10 percent respectively – up from 8 percent and 7.5 percent in December.

Dot Loves Data director Justin Lester said the findings showed fuel inflation was becoming “an increasingly unavoidable financial burden” for rural New Zealanders.

“Fuel isn’t discretionary spending in rural New Zealand. For many families, it’s the cost of getting to work, school, healthcare, and even the supermarket. Rural families are more exposed to the global fuel shock due to longer travel distances and heavy dependence on private vehicles.”

People in larger cities had more alternatives, and these “insulated” them from the worst impacts of rising fuel prices, he added. “They can use public transport, travel shorter distances, or work closer to home.”

Rural communities did not have those options available to them. “It’s beginning to bite [and it] will begin to impact other sectors.”

The report also found grocery spending in urban centres averaged around 33 percent of household expenditure, compared with a national median of 41 percent, further highlighting the sharper affordability pressures outside the main centres.

Lester said prolonged international instability and higher fuel prices could continue to place significant strain on regional economies.

“When fuel prices rise, rural households have less flexibility in their budgets, and that pressure flows directly into local businesses and communities. These numbers show the cost of living crisis is not being felt equally across New Zealand.”

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