Category: Business

Source: Radio New Zealand

IKEA is tightening its returns policy for Australia and New Zealand.

The homeware retailer told customers on Thursday that its “test and try” policy, which allows for products to be assembled and then returned, would only apply for 60 days after the date of purchase. The original packaging would need to be maintained.

It would only allow returns for up to 365 days for products that were unopened, unused and that could be resold.

In comparison, the UK website still tells customers that they can return open products for up to 365 days, even if they had been assembled.

An IKEA spokesperson said the changes to the way returns, cancellations and exchanges worked had been introduced in Australia and New Zealand.

“The changes have been made to continue to provide peace of mind and flexibility for our customers.

“The new IKEA ‘Test & Try’ policy gives customers a fair time period of 60 days for a change of mind if the product does not suit their life at home, with the ability to return an opened and assembled product in acceptable condition. Customers still have 365-days to return their product if it is unopened, unused and resealable.

“The changes were implemented as part of a planned update across both markets are not related to the condition of goods being returned by customers.”

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

Source: Radio New Zealand

NZME says its workplace review has identified “two specific issues” still to be addressed in the coming weeks.

The NZME board of directors commissioned the review in February, after three senior managers were terminated last year.

One of them was former OneRoof chief executive Greg J Hornblow, who admitted paying a 14-year-old for sex.

NZME chief executive Michael Boggs told RNZ in April Hornblow was under an employment investigation over other complaints at the time and was sacked when the company learned of his arrest.

He said Hornblow faced disciplinary action, and was alleged to have “demonstrated inappropriate behaviour” at a work function and received a final written warning.

A formal complaint was then made against Hornblow that included accusations he had made “inappropriate comments” at meetings and in the office.

During this process in November, NZME learned of his charge.

“When we learned of the charge, we immediately terminated his employment,” Boggs said.

Separately, ZM content director Ross Flahive was dismissed and Nicholas Hammond left NZME in December.

In an email to staff, NZME board chair Steven Joyce said the review looked at the events leading up to those departures, with a focus on how concerns were raised and responded to, and whether staff felt safe and supported, if they witnessed or experienced inappropriate behaviour.

“Firstly, the review concluded that the departure of the three senior managers from OneRoof and ZM addressed the specific safety and welfare issues, which were identified at the time in those two businesses.

“The review identified two other specific issues elsewhere in the company for referral to Michael [Boggs] and the senior leadership team. These will be addressed in the coming weeks.

“For reasons of natural justice and fairness to all parties, we are not currently able to provide any additional information on them.”

He said the review also found NZME had work to do to “promote and maintain a supportive work environment in which employees and other persons are treated with respect and dignity”.

“The reviewer found that NZME has adequate systems in place to enable reporting of inappropriate conduct, but for a number of reasons, including matters specific to the circumstances in each case, these were not accessed for some time at either OneRoof or ZM.”

To encourage people to report inappropriate conduct in future, the businesses needed to be clear that safety and welfare of staff was an “absolute priority”.

“We will not sacrifice staff safety to meet any other objective in the business. If you sense that is happening at any time, please communicate your concerns directly to Michael as CEO of the company, Steven as chair or to Sussan Turner as chair of the people, remuneration and nominations committee of the board.”

Joyce said Boggs and the management team would ensure all available reporting channels for any concerns and allegations were clearly visible and accessible, so every matter raised was promptly and thoroughly investigated.

“In addition, the roles of wellbeing advocates will be strengthened across the business, ensuring you know who they are and what they can help with – whether that’s advice, a listening ear or acting as a support person, if you need one.

“Members of the company’s people and culture team will be more visibly embedded within the business, being present, approachable and focused first and foremost on the welfare of our people. This will mean more regular and proactive check-ins with business units, providing regular updates and information on reporting processes, and ensuring people have the confidence to report concerns, because they know the information will be treated confidentially.”

Manager training would be refreshed at all levels, he said.

“You have the company’s commitment that any complaint (formal or informal) about inappropriate behaviour, either directed at you or witnessed by you, will always be taken seriously and assessed promptly. Where an investigation is required, it will be carried out fairly and thoroughly, with appropriate action taken based on the findings.

“The company will also check in regularly with complainants and provide appropriate support to them.

“Where it is deemed necessary to ensure your health and safety in the workplace, the executive team will suspend employees who are being investigated for serious misconduct.

“Once an investigation is complete, the leadership team will share outcomes as far as they are legally able to and they will provide feedback directly to the person who raised the concern.”

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

Source: Radio New Zealand

Ford has topped the list of Consumer NZ’s least reliable cars in its latest survey.

The survey of 5791 car owners asked people what faults they had experienced with their cars and how satisfied they were with the vehicles.

Ford Escapes and Ford Focuses had the highest number of major and serious faults reported and fewer satisfied owners when it came to ongoing maintenance and repairs.

Consumer noted that Ford discontinued the Focus last year and the Escape had also been taken out of the New Zealand market.

The survey found Fords had a lot of engine, transmission and electrical issues. Ford was approached for comment.

Report author Bryan Wall said products, including cars, were generally built to a budget and components would fail eventually.

“Cars are subject to quite a lot of stress and strain on the road, high speeds and so on, so parts are going to fail eventually. It just depends which parts fail that deems how reliable a car is.

“If it’s a major failure, say a water pump, and it’s expensive, then it’s going to be deemed a less reliable vehicle.”

The next least reliable vehicle was a Volkswagen Tiguan.

Nearly half of owners had experienced a fault with their cars during the period they had owned them. A quarter had been a major fault.

Wall said he was not surprised.

“One of the cars I’ve actually got myself is the Volkswagen Tiguan and we’ve had issues with them. I think the design of these vehicles is great – you’ll see there’s two sides to the survey.

“There’s a reliability and a satisfaction score, so you find the two are certainly interrelated, if you’ve got an unreliable vehicle, you’re generally going to be unsatisfied.

“However, there are certain vehicles where people actually really like them and they’ll keep putting money into them and repairing them. The Tiguan is one of those. It’s a really good vehicle to drive. It’s got all the bells and whistles, but it’s got this strange unreliability part to it.”

Volkswagen was also approached for comment.

Wall said the cost of repairing cars came down to parts and labour.

“I’ve been amazed at some of the prices I get quoted for parts on my European vehicles. They do have a reputation [for being expensive to repair] and I think there is evidence to back that up as well.”

He said it would be interesting to see how electric vehicles fared over time.

“It’s early days with EVs as to how reliable they are … we’re seeing a lot of EVs that people are really, really happy with at the moment because the maintenance on these is essentially quite minimal really compared to an internal combustion engine. t’s generally software issues that have to be updated and so on to fix problems.”

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

Source: Radio New Zealand

House sales are being delayed by a backlog of property reports issued by Wellington City Council.

The current average processing time for Land Information Memorandums (LIMs) is 28 working days – almost triple the timeframe in which the council legally must issue them.

LIMs are reports which include all the information the council has about a property, such as rates and special land features.

LIMs are not mandatory for a house sale but are highly recommended for sellers and buyers and most banks will not lend without seeing a LIM.

If you’ve been affected by the delays contact Anya.Fielding@rnz.co.nz

Lowe & Co real estate agency co-founder Craig Lowe said these were worst delays in his 26-year career.

“At least in my memory, I can’t remember it being this bad.”

He said delays in receiving LIMs caused frustration and uncertainty, causing more pain for people during the sales process.

He said buyers may have to have more additional conditions on the sale, or not go through to contract because they have not seen the LIM yet.

“To actually transact, buyers and sellers need information.

“It just adds friction to the process and slows things down and makes it particularly hard for sellers that have a reason to get on the market quickly.”

Alexia Stoddart from Tommy’s Real Estate has had a client lose out on their dream home because of the delays.

“Their dream property popped up on the market, and they couldn’t be unconditional as the LIM hadn’t come through. I think it was on day 20 [of waiting for the LIM]. So they offered, but with a finance clause waiting for that LIM.

“And those vendors took a lower offer, but an unconditional offer.”

Stoddart said the backlog was delaying house sales as sellers may not know they need a LIM to put their house on the market.

“Well, it basically puts you in a five-week limbo while you wait for that LIM, because people who bring their properties to market don’t always know that the LIM is required and that there is this delay.

“So they might suddenly want to come on the market next week. We may get them an offer in week two, but we have to sit for another sort of four weeks waiting for the LIM to arrive, because generally banks will not lend unless they cite the LIM. “

She said there was little agents could do while waiting for LIMs.

The fast-track service has been put on hold while the council works through the backlog.

Backlogs over the summer are expected, as more houses come on sale during this time, causing higher demand for LIMs.

“We generally run between sort of 750 and 800 homes in the Wellington region, and we’re up at around about 1100 at the moment. So there is an increase in properties on the market,” Stoddart said.

“We have had that spike before, though, and we still managed to get our LIMs. It certainly hasn’t been as long as it is now.”

Wellington City Council said demand continued to be high into February and March, which had not been planned for.

“This week we have seen a reduction in the number applied for which indicates the first sign of a slowdown in the seasonal demand,” a council spokesperson said.

To work through the backlog the council has hired more staff, increased hours and was looking into automating the LIM process.

Wellington City Council charges $563.50 for a LIM. This is above the charges for Auckland, Christchurch, Hamilton and Dunedin.

The council is currently processing 452 LIMs.

“Council fees are set on a cost-recovery basis, rather than being linked solely to statutory processing timeframes,” a council spokesperson said.

The fees charged reflect the full cost of providing the service, including staff resources, technical assessments, specialist inputs, systems, and overheads that are incurred regardless of whether a statutory timeframe is met.

“The work required to assess applications still needs to be undertaken to an appropriate standard.”

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

Source: Radio New Zealand

Reserve Bank governor Anna Breman is adamant the inflation spike caused by the Middle East conflict will be brought under control and back into the target zone, but says businesses and households need to play their part.

The central bank has kept the official cash rate (OCR) unchanged at 2.25 percent, but forecast inflation to peak at 4.2 percent in the June quarter while economic growth would be dampened

Breman told Morning Report, the key issue was how long the conflict would last and how soon prices started to retreat, which would determine the RBNZ’s policy moves.

“If we see that oil prices and then fuel prices and fertiliser prices actually come down… that means this is something that will pass relatively quickly and we don’t see a long lasting effect on inflation. Our mandate is medium term inflation.

“So what we’re looking for is this something that is going to get embedded into inflation expectations and inflation over the medium term or will it pass relatively quickly and households can look forward to inflation falling again.”

But Breman said the RBNZ was ready to act if there were signs that higher inflation was getting embedded in the economy, with businesses holding on to price increases and households looking to boost wages to counter cost of living pressures.

She said it was an assurance not a warning to the public.

“It’s just assuring people that we are very focussed on making sure inflation falls back so that households know that over the medium term inflation will fall and their purchasing power will come back.

“Firms can assume that over the medium term inflation will be lower and stable again and they can hold back on price hikes.”

She said a rate rise would likely lower demand within the economy and hopefully act as a brake on firms raising prices and help to drive inflation lower.

Breman said households needed to take a medium term view and to assume that inflation would be low and stable again, while businesses needed, where possibly to make sure any fuel related price hikes were only temporary.

The RBNZ’s next monetary policy statement with full economic forecasts was due at the end of May. Financial markets were betting on at least two OCR rises by the end of the year, starting in September.

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Source: Radio New Zealand

Motorists using diesel say they have little choice but to wear higher costs as prices reach more than $4 a litre in parts of the country.

RNZ went out to speak to drivers at petrol stations about diesel becoming the most expensive fuel at the pump as it overtakes 98.

According to fuel finding app Gaspy, 260 stations in the motu were charging diesel at $3.99 a litre, with some truck stops in the Bay of Plenty and Waikato hitting $4.20 a litre.

Motorists said that commuters and individuals could switch to petrol cars, public transport or working from home.

But commercial trucking fleets do not have that flexibility.

One contractor told RNZ business owners had no choice but to absorb higher diesel costs in contracts agreed months ago before the fuel crisis.

Another business owner said companies would have to decide whether to pass on the higher cost of diesel to their customers in any new contracts.

A civil construction company owner said: “We’re definitely feeling the pinch. We’re trying to wear the cost as much as possible. But we are looking at price increases”

They said that could cause ripple effects across all industries from construction to agriculture.

One builder told RNZ: “All our suppliers are charging extra on deliveries now.”

Gaspy spokesperson Mike Newton said dependence on overseas refineries and the lack of alternatives to diesel would likely keep prices high for a while.

Fuel prices in general rose following the outbreak of war in the Middle East and the closure of the Strait of Hormuz, a major oil shipping route.

US President Donald Trump announced a two-week ceasefire on Wednesday which led to crude oil prices dropping.

However, Newton said diesel prices were unlikely to drop because New Zealand had no refining capacity and would have to wait for supplies from overseas.

Newton said diesel prices had risen sharply and it was not clear why.

“It’s been creeping up five cents a day sort of thing, but we’ve seen jumps of 30, 40, 50 cents. At some stations just out of nowhere, and it’s not clear to us exactly what is causing such a big jump so suddenly.”

He said the fuel crisis was worse than the price spike that followed Russia’s invasion of Ukraine, which drove up diesel prices by about 50 percent.

“Currently, we have already doubled the price of diesel, so it’s over 100 percent increase,” Newton said.

“So although we’re seeing similar patterns, the numbers are just so much bigger than what we saw during the Ukraine conflict.”

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Source: Radio New Zealand

Motorcyclists are putting their bike registrations on hold in protest at what they say are unfair increases to ACC levies.

Levies are paid as past of registration. From July this year, motorbikes would be classified into three sizes depending on their size.

Large diesel motorcycles, over 750cc, would be charged the highest annual ACC levy of $638.36 and petrol bikes of that size would pay $624.93. Motorcyclists who completed advanced rider training may be able to access a 25 percent discount.

Medium motorcycles, classed as 251cc to 750cc would pay about $450, and small motorcycles $311.70 for petrol and $325.13 for electric or diesel.

In the previous year, petrol bikes over 600cc had been charged $428.19 a year and diesel or electric $441.87. In the 2024/2025 year, someone with a 500cc motorcycle would have paid just under $300.

All motorcycles were also charged an additional $25 motorcycle safety levy.

The increases were part of wider changes to ACC levies that were announced in 2024.

Motorcycle Advocacy Group spokesperson Richard Tohu said the cost of registration was on track to increase by 68 percent by 2026.

“It’s just a lot of money. Everybody is feeling the crunch and they can’t justify the increases.”

He said there was not sufficient information to back up claims that it was reflecting the risk involved in motorcycles.

The group had asked to meet with officials to talk about the data that was being used, but it had not happened, he said.

‘Show us the data’

His Facebook group protesting the increases was on track to hit 9000 members, he said. “A couple of weeks ago we were 5000 members. Since our protest ride on the 28th, it’s just taken off.

“It’s not that we just want to get away with not paying money, we need to see that it’s justified. Show us the data. You’re saying it’s risk. We all know the bigger the engine does not equal higher risk … They won’t talk to us, nobody will meet with us. So we are advising our members to put your vehicles on hold and stop paying them. We need to try and get them to come to the table.”

He said it was likely people were still riding their bikes without a current registration. “If you ride an unregistered, unlicensed vehicle and you get caught, it’s a $200 fine plus demerit points. If you’re faced with paying $600 [for registration] there is going to be a lot of people out there that will take that risk.”

Legally, people whose vehicle registrations were on hold could not drive it at all.

“We don’t condone riding your motorcycle while it’s not legally registered to be on the road … but we can’t be responsible for what thousands of people are already doing and might choose to do.”

NZTA data showed there was a 9.8 percent decrease in motorcycle registrations between the March 2025 year and March 2026.

That reflected first-time registrations for the time periods, not vehicles already on the road.

But over the same period there was a 2.7 percent increase in passenger car registrations.

ACC deputy chief executive corporate and finance Stewart McRobie said it respected people’s right to protest and express their views.

“ACC forecasts the lifetime cost of motorcycle injuries at around $266 million per year in the current levy cycle. While motorcycles make up 4 percent of the vehicle fleet, motorcycle accidents represent 25 percent of the cost to ACC of all injuries from road crashes. 

 ”Through the levy system, motorcycle owners currently pay 28 percent of the total cost to support people recovering from motorcycle accidents. The remaining 72 percent is paid for and therefore subsidised, by the levies collected from other vehicle owners.  

 ”ACC has heard from owners of other vehicles that motorcyclists should contribute more towards the cost of injuries. Prior to the current levy round which covers the years from 2025 – 2028, levies for motorcycles have not increased since 2014.”

McRobie said police data showed 37 percent of injury claims from motorcyclists were from single-vehicle accidents where the motorcyclist’s actions contributed to the crash.

“The increase to motorcycle levies aligns the proportion of levy contribution from motorcyclists to the proportion of motorcycle crashes that only involved the motorcyclist – single vehicle crashes. 

“It’s important that ACC levies are fair and that the amount contributed by levy payers reflects the level of risk. To keep things fair, the amount motorcycle riders contribute is increasing, to better reflect the risk. Additionally, accidents involving motorcycles often also result in more severe injuries, which are more costly to treat.”

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

Source: Radio New Zealand

Do-it-yourself retail shareholders are holding on to their shares, despite price volatility associated with the war in Iran.

The Sharesies Index, which ranks overall investor confidence on a scale from zero to 100, hit a four-year high of 64 points in early February but retreated to 45 points by the end of March, which indicated a more balanced approach to investment.

Sharesies head of data & analytics Jordan Cunningham said the drop in confidence, late in the first quarter, was to be expected given the uncertainty created by the conflict, but investors were adjusting to the volatility.

“Instead of withdrawing, some investors adjusted where they put their money. Preferences shifted between cash, funds and individual companies,” she said.

“We aren’t seeing people selling out even when there are these times of volatility. So people are making adjustments and finding the things that suit their scenario, but not retreating entirely, which I think is definitely an indication of kind of that maturity and that resilience that we’ve seen from our customers,” she said.

The deposit to withdrawal ratio peaked at the start of the quarter with deposits of $2.38 for every $1 withdrawn, though deposits dropped by the end of the quarter to an average of $1.94 for every $1 withdrawn.

Some AI and tech stocks lose favour

Cunningham said there was some diversification away from US tech stocks in favour of New Zealand gentailors Contact Energy and Genesis Energy over the quarter.

“Genesis Energy rose 15 points and Contact Energy 7 points. These shifts may be primarily due to high retail investor engagement in capital raises by these companies, with over 7500 Sharesies customers participating in each offer,” she said.

A preference for shares over savings

“This preference is likely due to the lower interest rate environment,” Cunningham said.

“However, when market uncertainty peaked, such as at the end of February at the start of the US-Iran conflict, we did see a shift back towards the perceived security of cash.”

Movements

Investment in the most widely-held companies and exchange traded funds were consistent throughout the quarter.

Air New Zealand also retained its status as the top-ranked company and second most widely held investment, despite reporting a first half loss of $59 million in February, amid an uncertain outlook as soaring aviation fuel costs and other disruptions cut into profit margins.

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Source: Radio New Zealand

Air Chathams is cutting a significant number of flights from several North Island routes, which have become unsustainable after the cost of jet fuel has more than doubled.

The company is the only airline flying to the Chatham Islands, providing a vital connection to the mainland for passengers and freight, and has been under increased financial pressure due to the rising cost of aviation fuel.

InMarch, Air Chathams added a $20 surcharge on all its tickets, to help to offset the additional costs.

Air Chathams chief executive Duane Emeny told Checkpoint that the carrier would maintain vital flights between the island and the mainland, but would axe about 45 percent of flights into Whakatāne, 22 percent of flights into Whanganui and 10 percent into Kāpiti.

The cuts – which were entirely caused by the fuel crisis – would begin around 20 April, Emeny said.

Currently, the Air Chatham was not even able to cover its direct costs running those flights.

“There’s no real point in operating the services if we can’t even cover the direct cost.”

The issue was worsened by a drop in demand, as people were deciding against discretionary travel or putting off plans, he said.

Previously, Air Chathams was paying about $500,000 a month in fuel costs, but that number had doubled to over $1 Million.

Air New Zealand on Wednesday also said it had seen its fuel costs double, and that it was cutting flights – but it would not say which flights or when that might happen.

The goal was to reduce costs without doing long-term damage to the market, Emeny said.

He added that regional airlines would like to see some of the government’s targeted and temporary financial relief.

The government in 2025 announced a package including up to $30 million in loans from the government’s Regional Infrastructure Fund to help with rising costs.

“It’s super important that we get that funding out and supporting these regional carriers as soon as possible,” Emeny said.

He added the government should consider whether to restructure that package so airlines do not have to take it all on as concessionary debt.

“We’ve just got to keep doing what we can working with government.

“I am hopeful that there is some work ongoing to look at some of that targeted support, because it is desperately needed. And I think it’s really important to just highlight the important role that smaller airlines like Air Chathams and Sounds Air and Barrier Air play.”

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Source: Radio New Zealand

Listen live as Checkpoint talks to Air Chathams boss, Duane Emeny:

A regional airline is looking to cut it’s schedule in the face of soaring fuel prices.

It follows Air New Zealand’s decision to trim its flights further, in May and June.

The national carrier revealed its fuel bill has doubled to $8.5 million a day, forcing it to raise some fares.

Now Air Chathams is reviewing its schedule.

It’s the only airline flying to its name sake Chatham Islands, providing a vital freight link and connection to the mainland and medical appointments.

In March, Air Chathams added a $20 surcharge on all its tickets due to the rising cost of aviation fuel.

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