Category: Business

Source: Radio New Zealand

Consumer NZ says it is disappointed by news the government may not progress its plan to ban credit card surcharges.

The ACT Party and Retail NZ have both said the proposed ban on surcharges for contactless and credit card payments was dead, although the minister responsible told RNZ it was still being worked on.

Commerce and Consumer Affairs Minister Scott Simpson (National) introduced legislation last year to ban in-store card surcharges, so shoppers would not be penalised for their choice of payment. The ban was expected to be in place by May.

But ACT leader David Seymour said it would not happen.

“Nobody likes the fees, and like many costs everyone wishes they would just go away,” he posted on Facebook.

“When the payWave surcharge ban was announced, small businesses up and down the country pointed out they wouldn’t go away. Motels, cafes, retailers, they all pointed out they’d eat the fee.

“They might be able to reclaim some of it by putting up the price of what they sell. Sometimes businesses find they just can’t raise prices but, if they did, they would effectively be making customers who paid cash or eftpos fund the payWave costs of others.

“None of those solutions are fair, so ACT’s Dr Parmjeet Parmar put up a simple suggestion to improve the policy. Let businesses charge payWave fees if they offer a free alternative. That way people who want the convenience can pay for it, and those that don’t can avoid the fees.

“The proposal is now stopped, because we listened to the people affected. It could come back in the future, the way Parmjeet has suggested, but not in a way that puts costs on small businesses or other customers.”

Consumer NZ spokesperson Jessica Walker said the organisation was disappointed.

“Our research has found support for a ban is getting stronger – our nationally representative surveying in January found that almost three in five people supported a ban on card payment surcharges, with only 15 percent of people opposing a ban.

“While we understand concerns that some businesses will be forced to raise prices to make up for the cost of the ban, it’s important to remember that interchange fees were reduced late last year. It was estimated that businesses would save around $90 million a year – we remain concerned that those savings will not be passed on to consumers.”

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

Source: Radio New Zealand

There are concerns some Asian countries are beginning to hoard jet fuel as the Iran conflict drags on.

News outlet Bloomberg has reported the South Korean government is discussing whether to redirect export-bound jet fuel to the domestic market amid mounting supply pressures.

South Korea is a major source of refined fuel imports to New Zealand, providing around half of the country’s fuel, and South Korea itself relies heavily on crude oil imports from the war-disrupted Middle East.

Westpac chief economist Kelly Eckhold said some Asian refineries were now running short of crude oil feedstock, and airlines were being asked to carry more fuel for their return flights.

“This affects all categories of refined product – diesel is high-profile, petrol [as well],” Eckhold said. “But it’s also quite relevant for jet fuel, particularly South Korea which is a relatively important refiner of jet fuel,” he said.

Eckhold said anecdotal reports from Asia suggest that some airlines were also being asked to carry enough fuel for their return flights.

“Philippine Airlines were apparently asked to do that by a couple of countries … that have apparently advised flights that they should not expect to be able to get a lot of jet fuel when they arrive, because they’re obviously trying to conserve the stocks that they already have,” he said.

“What most countries are doing here is they are trying to prioritise enough stock so that they could operate their domestic schedules and their flagship international airlines.”

He said that would be the priority here, with Air New Zealand and Jetstar already announcing plans to refine schedules in response to the crisis.

Eckhold said even the west coast of the United States was not immune, because it got most of its jet fuel from South Korea.

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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 says it now expects house prices to fall this year as conflict in the Middle East means lower household confidence and upwards pressure on interest rates.

The bank’s economists said in their latest Property Focus update that, before the war broke out, consumer confidence had lifted back to what could be considered normal after four years in the doldrums.

Improved economic sentiment and greater job security had looked like they were going to support housing demand this year.

The bank had earlier forecast an increase in prices of 2 percent, although still downgraded from an earlier forecast of a 5 percent lift.

However, with global oil prices soaring and wholesale mortgage rates lifting, that had now changed.

Even without the official cash rate rising, interest rates being charged to borrowers had increased in recent weeks.

“One way or another, lower household confidence and upward pressure on mortgage rates as a result of the oil shock will weigh on a housing market that was already short on momentum before the conflict. We have now pencilled in small falls in house prices over coming months, leaving house prices down 2 percent over 2026.

“A protracted conflict in the Middle East could see a steeper fall in house prices; but equally a quick resolution within the next month or two could see the market stabilise sooner. We continue to see a modest increase in house prices as likely from 2027 onwards as an economic recovery settles in.”

ANZ senior economist Matthew Galt said the conflict would knock confidence for potential house buyers as well as stoking inflation fears.

“The housing market’s basically been flat for three years. And even before the conflict in the Middle East broke out, prices were more or less flat. There was no momentum in the market. And so this is just another factor that will shift it even more in favour of buyers.”

ANZ’s economists said there was a risk that home loan rates could rise further than they already had.

“Unless we see a sustained de-escalation in the conflict, given how far wholesale rates have risen, the risk is that mortgage rates may rise further over coming weeks. At this stage we see it as a risk rather than our central scenario, but given the magnitude of the moves, it can’t be ignored.

“Our hope is that we do see a de-escalation, and if we do, while we still expect mortgage rates to rise, that is likely to occur more gradually than if we see an escalation.”

They said, because mortgage rates had lifted from their earlier lows, there was less value in fixing for long periods. But the two-year rate offered a mix of value and certainty.

Fixing longer would only be cheaper if rates rose more than the bank was expecting.

“No one really knows what’s going to happen in the MIddle East,” Galt said. “If we have a faster resolution of the conflict then that could se the economy be stronger. On the other hand if the conflict drags out, that’s bad news for New Zealand.”

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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 Commerce Commission has performed a U-turn on banks’ bid to collectively negotiate cash-in-transit services with Armourguard.

The Commission initially declined an interim bid by the Banking Association to negotiate on behalf of banks and some retailers, saying it was not satisfied the benefits would outweigh the negatives.

But in a draft determination announced on Thursday, the regulator proposed to authorise the application.

“We consider small benefits would likely arise from the proposed collective bargaining, such as operational efficiencies and more efficient contract terms,” Commission chair Dr John Small said.

He said the Commission’s view has “developed” since declining the bid for interim authorisation.

“While we do not currently consider these to be substantial benefits, we believe they are positive on balance.”

Small said at the time there were concerns around an approval leading to uncertainty and Armourguard pushing back investment plans.

“However, with further assessment and evidence we now consider these detriments to be unlikely.”

The Commission is seeking submissions from interested parties by 10 April.

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

Source: Radio New Zealand

Workers First Union has asked banks, insurance companies and other financial institutions to do more to help staff struggling with the cost of commuting.

The cost of fuel has risen sharply in the past month, as war in the Middle East pushes up the price of oil.

According to fuel price monitoring app Gaspy, 91 is up more than $1 a litre in the last 28 days, to an average $3.39.

Diesel is up $1.61 to $3.29 and 95 up $1.07 to $3.59.

Workers First national organiser for finance Callum Francis said people were spending an increasing portion of their wages just on travelling to and from work.

He called for the organisations to suspend attendance requirements, offer work-from-home where possible and to subsidise transport for those who had to be on site.

“Finance workers offer care and consideration to customers every single day,” he said.

“We’re asking their employers to offer them the same. This is no longer a nice-to-have – it is becoming a necessity.”

Francis said it was similar to the Covid-19 pandemic, when many organisations quickly adapted to allow staff to work from home.

“Businesses showed during Covid that they could act quickly and pragmatically when workers needed them to. We’re asking for that same approach now,” he said.

“Billion-dollar institutions like banks and insurance providers can and should provide relief and convenience to their workers whenever it’s possible – especially during a crisis.”

The banks have been approached for comment.

Earlier, the Public Service Association said the government should allow public service staff to work from home to save on fuel costs.

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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 ACT Party is claiming the government’s proposed ban on surcharges for contactless and credit card payments is dead, but the minister responsible insists it is still being worked on.

The Commerce and Consumer Affairs minister, National’s Scott Simpson, introduced legislation last year to ban in-store card surcharges, so shoppers would not be penalised for their choice of payment.

The ban was expected to be in place by May.

Now, ACT is essentially pulling the pin on the legislation, with leader David Seymour calling it “bad economics,” and ACT did not support it.

“It’s dead. It was always bad economics. It was obviously appealing to take away a fee that a lot of customers hate, but if it only puts that fee on to the small business, it’s not actually a win. It’s just a shift, and often carried by people that can’t afford it at all,” he said.

Seymour said the problem with the ban was if the retailer had to absorb the charge, then they would have to raise prices, and people who paid by cash or eftpos would not be able to avoid that extra cost.

“All policies should be judged by outcomes rather than intentions. It was a good intention to give customers a break from an annoying fee, but if the outcome was putting it on to small businesses, then it was never going to be a good idea. And I would say, always judge policies by their outcomes.”

Retail NZ ‘delighted’

Retail NZ opposed a ban, warning businesses would likely to have to increase their costs elsewhere to recover the payment costs.

Chief executive Carolyn Young said she was “delighted” the bill appeared not to be progressing.

“It’s really clear that it’s actually not going to proceed anywhere in this term. We’ve had confirmation of that from the ACT Party, and without the support across the coalition it won’t proceed, it won’t be able to get passed,” she said.

“I’m sure that the government in an election year, with all of these other pressures that are on the economy in the world right now, they won’t want to be presenting something to the House that’s not going to pass.”

Young said Retail NZ was pleased the government had listened to retailers in not progressing the bill.

But Simpson said Retail NZ was wrong.

“No further decisions have been made on the ban on surcharges,” he said.

“We know Kiwis are sick of facing excessive surcharges. We are working through aspects of the policy, including monitoring whether reduced interchange fees have been passed on to customers.”

Simpson said there would be more to say “in due course.”

Seymour maintained the bill “clearly doesn’t have support” from two of the three coalition parties, after New Zealand First leader Winston Peters said it was “going nowhere” in February.

“And so I think that’s the end of it,” Seymour said.

“I think it’s pretty clear that this is bad economics, bad for small business, and it doesn’t have support.”

Last month, RNZ reported that progress appeared to have stalled on the bill, although Simpson had said at the time he was “hopeful” the ban would be in place by May, as promised.

At the time, the Prime Minister said the government was taking “a breather” on the policy while it understood all of the implications.

Consumer NZ, which said businesses’ costs associated with accepting card payments had reduced since December, had urged the government to press ahead.

ACT had supported the bill through its first reading, but during the Select Committee stage its MP Parmjeet Parmar suggested that businesses could keep surcharges if they offered a free alternative like eftpos or cash.

Young said the ban was a “simplistic solution to a complex area,” and while consumers had a choice now to pay by a method that did not incur a cost, such as cash or EFTPOS, a ban would lead to prices going up and everybody paying more.

“A blanket surcharge ban was not a palatable solution for any retailer. Our members told us that they would increase prices because in this economic environment, they couldn’t continue to absorb any further prices.”

She said in the past ten years, contactless and credit payments had risen from around 40 percent of transactions to 71 percent, and they incurred higher costs than eftpos, which was free to consumers and merchants.

“You’ve got a big change in the way people are paying, and a big change in the cost it is to retailers. The Commerce Commission, ideally, would have an opportunity now to be able to go away and do a full consultation, understand the landscape, and work out what is the fairest solution for both retail and consumers. And that’s what we would support happening going forward.”

The bill currently awaits its second reading, four months after the Finance and Expenditure Committee presented its report.

It sat 19th on Wednesday’s Order Paper, the list of bills currently before the House.

Without ACT or New Zealand First, National would need support from the opposition to pass the legislation.

The Green Party opposed it at its first reading.

While Labour supported it through first reading, it submitted a differing view in the Select Committee report as it did not support “adding costs to small businesses,” and wanted to put forward some amendments in the Committee of the Whole House stage.

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

Source: Radio New Zealand

The Electricity Authority has launched its power comparison site Billy, going head-to-head with Consumer’s Powerswitch, which it previously supported.

It said the site was designed to help people quickly and easily understand their power costs and what good value would be for their households.

Authority chief executive Sarah Gillies said it built on other changes that had been made to improve competition.

“Electricity is a lifeline not a luxury. It warms our homes, powers our lives and connects us to opportunity. But for too many people, it’s a source of stress. Heading into winter, many households will face an increase to their power bill. It’s more important than ever to check whether your plan is delivering good value for your household, and whether you could save money with a better deal.”

The authority previously ran the What’s My Number comparison site, which merged with Powerswitch in 2019.

It then provided funding to Powerswitch of about $1.4 million a year, but announced last year that was coming to an end.

The authority said the upfront investment for the site was $2.5m but running costs would average $1.1m a year.

Gillies said that the authority wanted to build something for the future.

“It’s built with open energy in mind and the ability to provide a simple tool for New Zealand consumers to give them trust and confidence in making choices about what power plan they’re on and making sure they’re on the right plan for their household.

“As a regulator, you know, we’ve got this responsibility to make sure that New Zealanders are empowered to be able to get the best possible deal and get the best out of the electricity market.

“There’s a number of things we do to support people in that. Billy’s one of the things that we do, but we’ve also made some recent decisions to require power companies to make their bills simpler.”

She said research showed that some people found their bills complex to understand and switching could be a bit of a barrier.

Most retailers would be featured on the site from the beginning, she said.

The site does not receive a payment from companies when users switch to them, as Powerswitch does.

Powerswitch general manager Paul Fuge said it was challenging to run a service like Powerswitch and produce reliable and accurate results.

“In our experience, consumer trust is key. The government profits significantly from its majority ownership of three of the four gentailers – this could raise questions in the minds of some consumers as to the impartiality of a government run site, and a perception that the site favours government-owned entities, whether this is true or not. The reason Consumer NZ was approached by the government to operate Powerswitch over 25 years ago was because we are truly independent.

“We intend to stick around – particularly given the challenges consumers are facing due to rising power prices and a market that is not delivering good outcomes for them. Consumers need advice from a truly independent source that doesn’t have a dog in the race.”

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

Source: Radio New Zealand

There are concerns that offering fuel support via the Working for Families system may mean some people end up having to pay it back.

The government announced on Tuesday that it would pay households who receive the in-work tax credit an extra $50 a week to help with the rising cost of fuel.

To qualify for that credit, people needed to have at least one child, be in work, not receive a main benefit and earn a household income below the threshold. This year, the cut-off for receiving the tax credit was around $89,000 of annual household income for a family with one child, $112,000 for a family with two children and $135,000 for a family with three children.

But it was not uncommon for people to receive Working for Families payments that they were not entitled to.

Because it was paid based on household income, when a family’s income changed – due to shifting jobs or business income moving – they could end up receiving too much and having to pay it back.

Last year, RNZ covered the case of Phoenix Ruka and his wife who had ended up with about $20,000 in Working for Families debt because Inland Revenue had inaccurate information about their household incomes.

It is something the government acknowledged when it announced a review last year to tackle Working for Families debt – created when people were overpaid.

Inland Revenue’s discussion document said in the 2022 year, only 24 percent of households receiving weekly or fortnightly payments who were squared up by IRD at the end of the year had received the right amount of Working for Families credits. The document noted that in June 2024, 56,800 recipients accounted for $273.5 million of Working for Families debt.

Baqir Hassan, of Finex Chartered Accountants said he was concerned about what that could mean for the extra $50 a week being paid.

He recommended people update their income estimate as early as possible if their situation changed.

Inland Revenue said it would monitor all customers receiving Working for Families payments to ensure they were getting what they were entitled to.

“We are reliant on customers giving us updates if their family circumstances change. An assessment is done at the end of every year to square up what they estimated their income would be and what they actually received and if they received more than they were entitled to they would be assessed to pay it back.”

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Source: Radio New Zealand

Gold prices have slipped in recent days, but there are predictions that it might not last.

Precious metals have had a record-breaking run amid fears about inflation and the US dollar.

But the price of gold is down just under 15 percent over 30 days, in US dollar terms. It is still up more than 40 percent year-on-year.

Mike Taylor, founder of Pie Funds, said gold had not been a perfect hedge in times of market turbulence, even though it had that reputation.

“As they say, the only perfect hedge is in a Japanese garden,” he said.

“My understanding is that gold was a source of liquidity the past week given its recent strength. Investors using it as a source of funds. I suspect that there were are number of CTA funds that were long, but sold on the break below $5000.

“In addition, the sharp jump in interest rates and inflation expectations will have been a headwind.”

But he said the trend might not last.

“I would expect it to find some support here as the currency debasement trade has not gone away. Nor has the desire for countries to diversify away from the dollar. In fact, this narrative has only become stronger. What country will trust the US after this war, and by default the USD?”

Generate investment specialist Greg Smith said it had not performed as a safe haven because it was already highly valued going into the latest geopolitical crisis, which he said made it vulnerable to a pullback as momentum faded.

“Investors have been taking profits to offset losses elsewhere. At the same time, rising bond yields have increased the opportunity cost of holding a non-yielding asset like gold, weighing on prices. Central banks are looking more hawkish given inflationary pressures, so not great for gold. There are also signs that central bank demand may be easing or even reversing, with some countries potentially selling gold to fund higher energy and defence costs – further reducing support.”

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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 woman who withdrew $31,500 from her bank account and gave it to a scammer is one of two recent cases that have sparked a warning from the Banking Ombudsman about cryptocurrency ATMs.

Banking Ombudsman Nicola Sladden said she had investigated several scam cases where people had deposited money through the ATMs.

Crypto ATMs allow people to deposit cash and buy cryptocurrency, which is sent to a digital wallet. Transactions usually happen quickly and cannot easily be stopped or reversed once completed.

Sladden said it made them risky when used under pressure or at someone else’s direction.

She highlighted two cases, in which she said people believed they were following legitimate instructions but lost large amounts of money.

In April last year, a woman responded to a job ad online and, following instructions, went to her bank and withdrew $31,500, telling the teller it was for a car.

She put the money into a cryptocurrency wallet via a crypto ATM but later realised she had been scammed and asked the bank to reimburse her. She said it should have noticed her anxious and unusual behaviour.

The ombudsman scheme said it had to decide whether there was anything that should have caused the bank to suspect a scam.

“A bank must follow a customer’s transaction instructions unless it detects – or should have detected – warning signs of a possible scam. If it detects such warning signs, it must make inquiries about the transaction and, if warranted, warn the customer about the possibility of a scam before processing the transaction.”

It said there was nothing about what the customer told the bank that should have indicated a problem.

In another case, a man lost $65,000. He authorised payments to cryptocurrency merchants and withdrew cash from ATMs that he deposited in a crypto ATM.

The bank refused to reimburse him, saying he had authorised the payments.

Sladden said obvious red flags included requests to keep payments secret or give false information to a bank.

“People should independently verify who they are dealing with, and talk to someone they trust before making large or unusual payments.

“It’s important to stop and ask questions before taking any steps that might result in the loss of money.”

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