Category: Business

Source: Radio New Zealand

Some customers of power company Mercury have mistakenly been told they have not kept up with their bills.

Customers have received messages telling them Mercury had “noticed you may have had a couple of missed payments over the last few months”.

The message offered a payment support plan and energy efficiency tips.

But some customers had not missed a payment at all.

Suraiya Phllimore-Smith, Mercury’s chief customer officer, said it had identified some customers had received payment support information in error.

“We’re sorry for our mistake and any confusion or concern this has caused. We have contacted affected customers directly to clarify the situation and apologise.

“The first of these communications was sent on Thursday and was intended to provide support information to our customers who have missed payments in recent months. However, we have identified that some customers who did not have overdue balances also received the communication.

“The message did not affect customers’ accounts, credit status, supply, or payment arrangements. It was an informational communication about the support options available to our customers.”

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Source: Radio New Zealand

Overall commodity prices have been dragged down by a 7.5 percent drop in overall dairy prices with strong global supply keeping the sector under pressure.

The ANZ World Commodity Price Index fell 0.8 percent in April over March, with better prices for most commodities, other than dairy.

“Dairy prices are in a period of high volatility, especially butter,” the report says.

Still, there had been stand-out increases in other sectors with forestry prices up 7.1 percent, partially reflecting higher production and transportation costs.

Aluminium rose 6.3 percent on March, and 51 percent up on the year earlier, after a large aluminium smelter in the United Arab Emirates was damaged in late March, tightening global supplies.

The meat and fibre index rose 0.2 percent over March to another record level, while horticultural was little changed.

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

Source: Radio New Zealand

New research looking at whether low-emitting bulls pass these traits onto their milking daughters has suffered a “disappointing” setback.

The Livestock Improvement Corporation – or LIC – and Ag Emissions Centre just completed the latest phase of a five-year methane research programme, initiated in 2021 and supported by CRV, to identify low-emitting bulls.

The hypothesis was that these bulls would pass the trait on to their milking daughters – with about 80 percent of methane emissions in dairy come from lactating cows as this is where most of the feed is consumed.

LIC chief scientist Dr Richard Spelman explained as a relatively small number of bulls sire the next generation of dairy cows, this approach offered a cost-effective and innovative way to introduce low methane emissions into the national herd.

“One advantage we have in our industry between LIC and CRV we generate 85 percent to 90 percent of the replacement heifer calves,” he said.

“So what we were hoping to do, could we measure this trait in a young bull – and between LIC and CRV we buy about 300 bulls per annum – and if we could bring those animals in, measure their traits for methane then that would be a very efficient way of working out what are the best genetics for the industry.”

The team started by identifying high and low-emitting sires and chose 25 from each to breed 400 heifers that were then measured at 8-10 months of age.

He said early findings were “encouraging”, with lower methane emission traits identified in young bulls, and clear evidence these traits were passed on to their growing daughters.

“What we are trying to find is which animals actually produce less methane per kilogram of dry matter eaten. We don’t want to have a low methane cow that doesn’t eat much, we want a cow that still eats a lot, produces a lot of milk but the amount of methane she emits per kilogram of dry matter eaten is lower.”

However, this was not the case for lactating cows after the heifers were tested this milking season.

“The results we have to date have shown that there is no difference, or no significant difference, between the high and low methane cows when they’re lactating. That has been a little disappointing for us. Obviously the hypothesis we had – we could measure it in a young bull, very efficient and that could be the way of getting that information and disseminating genetics into the industry – hasn’t come to fruition.”

Dr Spelman said the work had confirmed the methane variation was related to genetics so there was still scope to use it as a tool for reducing emissions – the advantages over other tools like boluses and vaccines – being it didn’t require a change to farm operations with many farmers already using artificial insemination with their herds.

He said more investment for research was needed to continue studying a larger volume of cows to better understand such variations.

LIC chief executive David Chin said the insights gained were currently being applied within its dairy beef breeding programmes.

“Alongside sector partners, LIC remains committed to supporting efforts to reduce emissions intensity through breeding more efficient cows. The role genetics may play in reducing gross emissions is one of several possible solutions we will continue to explore.”

Ag Emissions Centre executive director Naomi Parker said while the outcome was disappointing, the findings were still valuable, and the job now was to shape the direction for future research.

“Genetics still can have a meaningful role in reducing gross methane emissions. For beef and sheep, we are still confident in the approach, and we will be feeding the insights from this trial into work underway in these areas. For dairy we will consider taking a different approach that will likely focus on measuring lactating cows for methane production to generate a DNA based selection criteria.”

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

Source: Radio New Zealand

ANZ has been unsuccessful in its fight in the High Court against a class action from borrowers.

The court has awarded summary judgment against the bank in relation to the Credit Contracts and Consumer Finance Act 2003 (CCCFA) class action proceedings.

Between 2015 and 2019, the law said that a lender that was in breach of its disclosure requirements had to repay borrowers all the interest and fees they were charged during the time when they were not compliant with the rules.

The class action claims that between 30 May, 2015 and 28 May, 2016, a coding error in one of ANZ’s systems failed to take into account interest that had been accrued and not yet charged.

As a result, loan variation letters contained incorrect information. ANZ said it meant customers were undercharged by about $2 a month.

ANZ said it was considering the judgment and its potential next steps, including an appeal.

“We opposed the claim because we felt strongly that the law was not intended to operate in the way the plaintiffs and the litigation funders suggested,” chief executive Antonia Watson said.

“We maintain that the potential consequences under the current law are disproportionate and not aligned with any actual harm caused.”

The class action case against ANZ NZ relates to around 17,000 customers who on average underpaid their mortgages between 2015 and 2016.

ANZ NZ identified the issue itself, reported it to the Commerce Commission, and effectively wrote off the underpayments.

“ANZ NZ self-reported the issue, took accountability and paid more than $35 million to affected customers,” Watson said.

“As a result, all customers were left better off than they would have been if the issue had not occurred.”

The High Court found that ANZ breached section 22 of the CCCFA and that the representative plaintiffs were not liable for costs of borrowing on their loan for the period of breach and has directed ANZ to refund them $32,728.42.

ANZ NZ is considering how this judgment may apply to other members of the class.

ANZ NZ’s estimate of its maximum potential liability for costs of borrowing arising from this decision is approximately NZD$125 million.

Earlier, ASB agreed to pay $135,625 to settle a class action against it for similar breaches.

The Finance and Expenditure Select Committee has recommended changes to the law that confirm the court’s ability to make orders that are just and equitable in relation to costs of borrowing between 2015 and 2019 where lenders breached their disclosure obligations.

In 2019, the law was amended to apply to breaches from that point, but this change would apply to breaches before that time, too, if they had not been dealt with by a court already.

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

Source: Radio New Zealand

Westpac New Zealand’s first half profit is up 4 percent on the year earlier, though bad debts are on the rise.

The bank made a net profit of $545 million for the six months ended March, and while that was up on the year earlier it was down 19 percent on the six months earlier, ended in September.

Westpac’s bottom line included a provision of $37m for bad debts, compared with $33m the year earlier.

Chief executive Catherine McGrath said conditions were set to get worse with Westpac economists expecting the economy to shrink by 0.4 percent in the June quarter, with unemployment to peak at 5.6 percent and inflation to reach 4.5 percent.

Key numbers for the six months ended March compared with a year ago:

• Net profit $545m vs $525m
• Net operating income $1.56b vs $1.5b
• Expenses $760m vs $734m
• Net interest margin 2.29% vs 2.26%
• Net impairment charge $37m vs $33m

McGrath said total lending rose 6 percent and deposits by 3 percent over the year earlier, despite strong competition.

“We’ve grown faster than the market in home and small-to-medium business lending as we compete hard to help more customers into their own homes, grow their businesses and support New Zealand’s economic recovery,” McGrath said.

“Our Westpac KiwiSaver funds are also producing strong returns, with six out of eight in the top quartile among peers for the 12 months to 31 March, and all funds above their peer median over the last two years.”

She said Westpac had consistently grown its lending to small and medium-sized businesses faster than the market over the past two years.

“In October we made a $100m lending commitment to help businesses start up or scale up, of which we’ve lent more than $33m to date.

“We’re also reaching out to small businesses we’ve identified through our credit process as having more ‘headroom’ to borrow without needing to go through a full application – providing easier funding when they need it, with less red tape.”

She said economic conditions were challenging for consumers and business, with uncertainty pushing out the timeline for an economic recovery.

“More broadly, before the conflict in the Middle East, New Zealand’s economy had been slowly gathering momentum. While the conflict is set to push GDP growth backwards in the near term, we think the economy will pick up again when there is a resolution to the conflict and oil prices then gradually ease.

“We know the last couple of months have been unsettling for households and businesses exposed to higher costs, especially in the transport, manufacturing and agriculture sector, as well as those who rely on cars.

“We’re proactively contacting businesses most exposed to higher fuel costs and are helping them manage the impact.”

Households adapting to crisis

McGrath said a recent survey indicates households were adapting despite widespread cost pressure concerns.

Nearly two-thirds of Westpac’s home loan customers were more than three months ahead on their repayments at the end of March, up slightly on six months ago. The median customer was 10.6 months ahead.

“Rising prices are clearly weighing on Kiwis’ minds, but what’s encouraging is they’re so far adapting well and making a plan to get through it,” she said.

Many households were cutting back on non-essential spending.

“However, we know that the strain on many households will increase the longer the disruptions caused by the conflict drag on, and we’re monitoring this closely,” she said.

“If you’re at the point where you’re worried about how you’ll make ends meet, the best thing you can do is call your bank. The sooner we’re aware of potential issues, the sooner we can help you make a plan to get back on track.”

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

Source: Radio New Zealand

Only half of New Zealand workers reported getting a pay rise last year, but some people are more likely to get them than others, new Seek data shows.

The recruitment site said the industries that were most likely to get a pay rise in the past 12 months were industrial, where 57 percent of people received a pay rise, professional services, at 53 percent, and technology, at 52 percent.

Seek country manager Rob Clark said pay rises in the professional sector were often driven by performance and benchmarking metrics.

“You’ve often got supply and demand challenges and they are quite highly skilled roles so you typically get movement in regard to salary when those factors are in play.

“Then you’ve also got industrial and that’s probably because we’ve seen a bit of a surge in terms of demand for some roles in that space.”

The most common way for people to have received a pay rise in the past 12 months was staying with the same company and experiencing a company-wide pay increase.

Just under a quarter of those who received a pay increase with the same company had some sort of performance-based rise.

While half of all respondents said they had a pay rise, 73 percent received 5 percent or less. Fewer than half of people were happy with their current salary but two-thirds were not confident asking for a pay rise.

Company-wide pay rises were most common in the public sector, and retail, hospitality and sports.

They were less common in construction and technology. Seek said performance-based pay increases were more common in these industries, with 46 percent of workers in both sectors receiving performance-based rises.

Only 5 percent of people who had a pay rise had received one because they moved to a new company but they were more likely to have a bigger pay increase. People moving to a new employer were three times more likely to have an increase of more than 10 percent than those who stayed put.

Clark said it was likely to remain a tricky time for those navigating pay conversations.

“If you’d asked a month or two ago you’d probably be a little more confident because we were sort of on an up, and consumer and business confidence was improving. I think that’s come to a head in the last month or so.

“I think a cautionary approach is the likely way forward for a lot of organisations. Having said that, taking a longer-term view is often useful if you can.

“We know that pay increases have a big influence on staff engagement, performance, retention, et cetera. It’s a tricky balance because I guess the big question everyone’s asking is just how long will this last, and how quickly can we sort of get back on our recovery?”

In order, the generations most likely to have received a pay rise in the past 12 months were millennials, at 54 percent, Gen Z at 48 percent and Gen X at 45 percent.

Millennials were most likely to have requested a pay rise but both they and Gen Z were much less comfortable about doing so than Gen X.

Clark said it was probably a reflection of them being earlier in their careers.

“[Millennials] are asking. We think that’s probably a function of being possibly the most financially constrained… first mortgage, kids… that cohort is definitely trying to get on the front foot an have the conversation.

“A lot of what we uncover in this piece of research is it’s really important to have the conversation, even if the outcome isn’t necessarily what you’re looking for. It benefits both the employee and the employer if they’re just having a conversation about salary, because it could provide great context for the employee as to why they’re making those decisions…employees obviously want to be heard and have their say.

“On the other hand… the moment employees most need relief is often at the same time as employers can least afford it. And, you know, you might argue we’re heading into something akin to that at the moment.”

He said people could make use of benchmarking tools to see how their pay compared to others.

That could give them confidence to ask for more money. They could also consider what non-financial benefits they would value.

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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 Interislander is hiking its fuel surcharge to 54 percent on commercial vehicles and trucks crossing the Cook Strait due to soaring energy prices from the Middle East conflict.

KiwiRail and the Minister for Rail Winston Peters say the ferry is experiencing cost pressures and can’t keep absorbing the increases.

It comes as international shipping company Maersk announced its own 27 percent fuel surcharge and experts say costs will fall back on the consumer as the conflict continues to play out.

KiwiRail chief customer and growth officer Adele Wilson said Interislander’s increased charge – through its fuel adjustment factor – rose to 54.4 per cent from Monday. That had risen from 27.7 percent, Transporting NZ said.

A fuel adjustment factor has been described as a surcharge, added on top of a base freight rate, which can go up or down depending on fuel prices.

“Fuel is one of Interislander’s largest operating costs, and sustained increases in marine fuel prices are creating material cost pressures on operations,” Wilson said.

“Like other transport operators, KiwiRail does not receive fuel subsidies, so prolonged periods of elevated fuel prices must be actively managed to ensure services remain financially sustainable over time.”

Transporting New Zealand chief executive Dom Kalasih said the fee would be imposed on companies transporting a huge variety of goods.

“That could be anything from furniture, some grocery stuff, could be some livestock – basically every commercial truck [that] travels from north to south, and vice versa, will be paying this additional fee.”

Kalasih said it’s likely transport companies will have to pass these costs on to businesses, who will in turn pass that on to consumers.

“More than likely they’ll be paying higher rates for that transport than they had originally intended, so then they will have to make the business decision, so that they can remain financially sustainable, as to how they manage that increased cost.

“Ultimately, I suspect, all of this stuff, will flow to a consumer.”

Kalasih said just how much Interislander’s increased fuel charge will affect New Zealanders depends on the product being transported.

Many transport companies have been imposing their own [https://www.rnz.co.nz/news/national/591220/trucking-firm-says-fuel-bill-has-increased-110-percent-due-to-middle-east-conflict

fuel surcharges] through Fuel Adjustment Factors due to the soaring fuel prices, Kalasih said.

New Zealand Shipping Federation executive director John Harbord, said the ferries had been hit by significant diesel cost increases.

“The Cook Strait ferries, at the moment, are spending approximately about $600,000 more a week on diesel then they were previously, and so you know they can’t absorb that amount of cost increase themselves.”

‘Completely standard’

KiwiRail and the Minister of Rail Winston Peters declined to be interviewed for the story. However in a statement, Peters said Interislander shouldn’t be expected to absorb fuel price increases.

“There isn’t a trucking firm in the country that would be prepared to absorb fuel prices increasing, so why would the Interislander be expected to do that?”

He said Interislander was taking steps to keep costs low, but no transport business could control fuel prices, which was why fuel adjustment factors existed.

“It is completely standard in the transport industry to adjust rates based on fuel prices – so standard in fact that Bluebridge adjusted theirs a few weeks ago and Interislander is following suit.

“We were briefed on the planned increase for the month of May and were assured that these increases are tied to the freight customer share of Interislander’s fuel operating costs.

Wilson said fuel prices remained “volatile” and KiwRail recognised it was implementing a large monthly increase, and it would continue to monitor fuel prices.

She said commercial customers had been told last Thursday of the increase. The adjustment was being set monthly, and could go up or down depending on fuel price changes – though when prices fall, there could be a lag before that flows through into prices.

Wilson said at this stage, Kiwirail was not making more regular price increases.

“KiwiRail is monitoring the situation and making every effort to continue to absorb cost increases across a monthly period to provide certainty for customers.”

International surcharges could cause ‘massive’ cost

Harbord said Maersk’s 27 percent fuel surcharge would also result in increased costs for businesses and consumers.

He said if the shipping giant was charging hundreds of extra dollars on each container it moved in and out of New Zealand, that would put pressure on both importers and exporters.

“If you think about the implications of that, in that 99 percent of New Zealand’s import and exports are moved by ship, that is a massive increased cost on the New Zealand economy.”

Lisa Coleman, director at New Zealand freight company Rocket Freight, said fuel surcharges for international shipping were changing rapidly due to the uncertainty of global fuel prices.

She said all international shipping companies were imposing extra fuel costs, through different mechanisms, and under different names.

Usually rates are set every few months, now they are changing every couple of weeks.

Coleman said companies – even if they had allocated fuel out months in advance or were in transit – were trying to safeguard themselves if they couldn’t get the product, or the cost increased.

“I absolutely think it’s going to keep going up, it’s going to keep going up until it becomes unsustainable – I am very prepared to see covid level freight costs, which was ten times the cost of normal freight.”

Coleman said ultimately this meant higher prices for products on the shelves.

She said Australia was seeing 50 percent fuel surcharges added to local transport services from international shipping companies.

Finance Minister Nicola Willis said the government had been monitoring global shipping costs.

She said the impact would be different depending on the exporter.

“This is what we are talking about when we talk about the secondary impacts that come through for overall inflation – it’s not just how much the petrol price increases, but it’s how this conflict in the Middle East puts price pressure on across the board, that eventually gets reflected in our economy.”

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

Source: Radio New Zealand

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

Source: Radio New Zealand

Split Enz and Crowded House member Neil Finn has bought a controversial Auckland pub, with plans to turn it into a wellness retreat.

Edinburgh Castle in Eden Terrace has a history of violent incidents, including the manslaughter of rising MMA fighter Fau Vake in 2021.

Stuff reported in 2023 the bar had surrendered its liquor license, but continued to operate poker machines and sell hotel rooms.

Neil Finn’s assistant confirmed to RNZ the musician had purchased Edinburgh Castle, which neighbours his existing Roundhead Studios.

Finn was on tour with Split Enz and was unavailable to comment himself.

His assistant said Finn planned to transform the venue into a wellness centre, but couldn’t comment further.

Restaurateur Chand Sahrawat, who runs The French Cafe directly across from Edinburgh Castle with her husband Sid, said they were excited by the news.

“The site has had its challenges over the years, so a concept centred on wellbeing, connection, and a more considered use of the space is a welcome change,” she told RNZ in a written statement.

“We see this as a great addition, something that will contribute positively to the energy, safety and overall appeal of the neighbourhood.”

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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 Dunedin bar could lose its liquor licence after a drunk patron was locked in at the end of the night and later taken to hospital.

Dropkicks was granted a temporary authority to sell alcohol in February, but the chief licensing inspector has since raised concerns about the way the venue was being managed including concerns of overcrowding and a lack of systems, training and staff.

The district licensing committee will consider whether to revoke the temporary on-licence authority held by Femme Enterprises Limited at a hearing on Tuesday.

A report said the patron, who was in a toilet stall, was locked in after staff failed to properly check the venue before leaving last month.

It was only when the person realised they were stuck and contacted friends who then called the police that they were found “extremely intoxicated” and transported to hospital.

Report author Kevin Mechen said the chief licensing inspector asked the committee to reconsider if the company should be allowed to sell alcohol.

“This is an unusual situation where the suitability of the holder of a temporary authority is questioned before the application for a substantive licence has been received,” he said.

No concerns were raised when the temporary authority was granted – covering from February 11 to May 11 – ahead of the University of Otago’s Orientation Week.

But that changed after the venue started operating with concerns including overcrowding, the lack of CCTV at the premises, poor communication between Femme Enterprises Limited and various council departments, and an association with an external event provider who advertised bar tab giveaways.

But Mechen said those concerns were overshadowed by the April 3 lock in.

He confirmed that the parties involved would have an opportunity to present their positions to the committee at Tuesday’s hearing.

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