Aged Care funding and service improvements

Source: New Zealand Government

A new system for delivering home care services for older people, focusing on restorative care, begins in the South Island today.

“This is one of a series of improvements being made to the current aged care system, backed by a significant increase in funding, to support improved care and the aged care sector,” Associate Health Minister Casey Costello says.

“The aged residential care (ARC) sector has received a 4 per cent funding uplift and will see a total increase of $96 million this year, and funding for home and community support services (HCSS) will increase by $44 million,” Ms Costello says. 

The total funding increase of $140 million this year is on top of an annual increase of $129 million last year and means that government spending on aged care is now more than $2.5 billion.

“The funding increases are aimed at relieving pressure on the sector and improving care services for older New Zealanders while we work towards the longer-term reform needed to better help people age well,” Ms Costello says.

“The reality is the current aged care model is out of date, so we are making improvements in the short term as well as considering system-level change.”

Today’s changes in home care funding and provision see the introduction of a new ‘case mix’ framework and funding model across the South Island to help those people who receive care at home.

“Four providers have been contracted to provide the new model, which is designed to move away from “task-based” care plans where providers are paid by the hour for specific tasks to more flexible care which is responsive to what people need. 

“The new service model will provide better care with a focus on keeping people as independent as long as possible.” 

The case mix framework and funding model will be introduced across the other three Health NZ regions to provide national consistency.

The Minister said that Health NZ was also working with the aged care sector to update the current contract for aged care and to develop a better system for categorising care need.

“The sector has said, and I’ve seen, that people entering residential aged care have higher health needs than before, and some older people need greater care from home services as well as more specialised services, such as bariatric and even palliative care in ARC facilities. 

“I want this process to better categorise this need, and the care people require, which will support the development of an appropriate funding model.”

Securing New Zealand’s energy future

Source: New Zealand Government

The Government has assured the power companies in which it is a majority shareholder that capital is available to support investment in critical electricity infrastructure. 

Reliable and affordable energy is key to New Zealand’s prosperity,” Finance Minister Nicola Willis says. 

“Energy powers every part of our economy, from households to high-value industries, and will increasingly determine our ability to compete in the global economy. 

“Therefore, I have written to the Crown’s Mixed Ownership Model (MOM) companies (Genesis, Mercury and Meridian) to say that the Crown is prepared to support capital funding requests for strategic and commercially rational investments that support energy security.

“This is to ensure a perceived lack of access to Crown capital does not stand in the way of New Zealand’s energy security.

“The assurance is one of several measures the Government is taking to address the gaps in New Zealand’s energy system that are keeping prices high for consumers.

“The review of New Zealand’s electricity system undertaken by Frontier Economics stated that the MOM companies, in which the Crown is a 51 per cent shareholder, have faced constraints in their ability to invest in larger generation projects, because of a perception that the Government would not provide equity injections to support those investments. 

“We wish to correct that perception. The Government is committed to maintaining its legally mandated 51 per cent stake in the MOM companies, and we accept we would need to participate in any equity raise required for major new investments. We are more than willing to do this, if the proposals stack-up.”

Energy Minister Simon Watts says New Zealand is on the cusp of a renewable electricity boom. 

“More new generation has been commissioned in the last 18 months than in the last 15 years because of our work to knock down regulatory barriers. 

But there is one major barrier standing in our way. We need reliable back-up options to generate electricity during our driest years, when we can’t rely on hydro lakes or wind to meet demand. Since the 1970s, natural gas has bridged this gap, but our declining gas supply is making this both more expensive and unreliable.

“The electricity market performance review conducted by Frontier Economics confirmed that the market has failed to invest in the back-up fuel and generation we need to keep the lights on and the economy running during dry years. This uncertainty is what is keeping power prices up and placing unacceptable pressure on Kiwi households, businesses and industries alike. 

“When we have dry years, like what we experienced in 2024, it can take the economy up to 25 years to recover from inflated electricity prices. That’s why the Government is acting now.”

The Government’s Energy Package focuses on investing in security of supply and building better markets to improve affordability. It includes:

Security of supply

  • Launching a formal procurement process for an LNG import facility.
  • Incentivising industry to kick start new energy projects by exploring how whole-of-government contracts could help underwrite projects. 
  • Removing barriers to accelerate the delivery of renewable energy through Electrify NZ (speeding up consenting and enabling offshore renewable energy).

Building better markets

  • Developing options to reduce policy risk for investors in new energy projects, such as the $200 million set aside for co-investment in gas fields through Budget 2025.
  • Strengthening the Electricity Authority to make it a more powerful, decisive regulator.
  • Increasing the efficiency of electricity distribution businesses (EDBs) by tasking them to collaborate, standardise processes and make smarter investment decisions.
  • Establishing a stronger gas information framework to ensure timely, reliable, and transparent data is available to all market participants.
  • Developing new rules, in consultation with industry, to ensure the lack of dry year back-up supply does not re-emerge. 

“Today, MBIE will release a Request for Information inviting the energy sector to tell us how the Government can work in partnership with industry to kickstart new projects that will help boost New Zealand’s energy supply. Leveraging government energy demand will help unlock new investment in energy generation across a range of technologies,” Mr Watts says.

“We are also stepping in to invest in energy security through a procurement process for a liquefied natural gas (LNG) import facility. By bolstering domestic gas supplies, LNG can help manage the impacts of dry years and keep the wider energy system up and running.

“The procurement process will kick off next week, and Cabinet will consider the results of this first phase and determine next steps by the end of the year.

“There is work to do to improve the electricity market for the future. We are strengthening the Electricity Authority, so the electricity market has a powerful regulator with the right tools to deliver better outcomes for consumers. This will include giving it a sharper stick to crack down on bad behaviour and boost competition in the electricity market.

“This will be bolstered by a more sophisticated risk monitoring role for Transpower with better forecasting of security of supply risks; new rules to ensure power companies deliver the back-up supply we need; and greater efficiency across New Zealand’s electricity distribution businesses to avoid unnecessary costs being passed on to consumers in their power bills.”

“This package builds on the work already underway to boost competition in the electricity market and ensure New Zealand has abundant and affordable energy for next winter. 

“The energy system plays a significant role in the economic wellbeing of Kiwi businesses, industries and households. If we can bring wholesale electricity prices down by just 2 per cent a year, New Zealand’s economy could be over $3 billion larger than it would otherwise be in 10 years’ time. 

“This would allow businesses to grow, invest more, and create jobs, while helping to ease the cost-of-living pressures New Zealand households are facing.

“With our plan in place, we can make this a reality. New Zealand’s future will be powered by renewables with back-up supply when we need it most and a well-regulated electricity market that is working to deliver for Kiwis.” 

Intersection closed, Ngāruawāhia

Source: New Zealand Police

The intersection of Duke Street and River Road is currently closed following a serious crash this morning.

Police were called to the two-vehicle crash at around 7am.

Initial indicators are there have been critical injuries.

The intersection will remain closed for some time while emergency services work at the scene.

Motorists are advised to avoid the area and expect delays.

ENDS

Fatal crash: SH12, Ōhaeawai, Far North

Source: New Zealand Police

One person has died following a single vehicle crash in Ōhaeawai last night.

At about 11.15pm Police were alerted to a crash where a car has collided with a bank on State Highway 12.

One person has sadly passed away at the scene, with a second person transported to hospital in a critical condition.

The Serious Crash Unit attended and is investigating the cause of the crash.

The road has since reopened.

ENDS.

Amanda Wieneke/NZ Police

Rural health roadshow is in Thames today

Source: New Zealand Government

Associate Health Minister with responsibility for Rural Health Matt Doocey and Minister for Rural Communities Mark Patterson are in Thames today to hear directly from the local community. 

“The purpose of these roadshows is to hear from the locals and those working on the frontline to understand what’s working, and where the barriers may be,” Mr Doocey says.

“It’s also an excellent opportunity to see and hear first-hand from those on the ground how well the Rural Health Strategy is being implemented. 

“One of the main themes I have heard loud and clear throughout these roadshows is that access to healthcare is one of the biggest concerns for people living in rural and remote areas. 

“That is exactly why Budget 2025 invested $164 million over four years to strengthen urgent and after-hours care nationwide, meaning 98 per cent of Kiwis will be able to access these services within one hour’s drive of their homes.

“The funding includes targeted support for more than 70 rural and remote communities, including extended after-hours, 24/7 on-call in-person clinical support and improved access to diagnostics and medicines. 

“We are committed to strengthening rural healthcare and growing the rural health workforce, so we are able to ensure New Zealanders get access to timely, quality care, no matter where they live.”

“Every single New Zealander deserves timely access to support. This Government is committed to lifting health and mental health outcomes, including for the one in five people who live in rural communities,” Mr Patterson says.

“I’m looking forward to meeting people in Thames and hearing directly about their experiences with healthcare. It’s important we understand both the challenges and the opportunities, so we can work alongside rural communities to improve access and outcomes.”

New data shows faster access to mental health support delivered

Source: New Zealand Government

With quarter four data now in, for the first time we can compare a full year of data to measure how well mental health and addiction services are performing across the country, Minister for Mental Health Matt Doocey says.

“Encouragingly, more Kiwis are getting faster access to support with both primary mental health support and specialist services staying above target all year,” Mr Doocey says.

“We are also seeing positive progress across regions. Whanganui district went from 81.4 percent to nearly meeting the 95 percent target for 6 hour shorter mental health stays in emergency departments. Central region went from not meeting the specialist mental health support in 3 weeks target, to now achieving it.

“In the South Island, access to primary mental health support in one week has also improved from 75 percent to now being well above target at 84.7 percent. Southern district went from being the worst performing district at 66.4 percent, to one of the best at 91 percent.

“I have always said I won’t be happy with just meeting the targets nationally. The value of being able to measure how well the twenty health districts are performing is being able to see where may need extra support.

“Since the first mental health targets were introduced, I have met regularly with HNZ regional leaders to ensure plans are in place to lift areas of underperformance.

“Today’s results back that we’re turning the corner on reducing wait times and increasing the mental health workforce, with the frontline Health NZ mental health workforce growing around 10% since we came into Government.

“This Government is focused on delivering faster access to support, more frontline workers and a better crisis response. These targets ensure this is happening.

“At the end of the day, no matter where you are in New Zealand, this Government is committed to ensuring support is there when someone is reaching out.”

Notes to editors:
•    Workforce data in Q4 only reflects Semester one results. Results for the second semester will be available in Q2 2025/26
•    Q1 results can be found here  

SH1, Meremere closed following crash

Source: New Zealand Police

State Highway 1, Meremere is closed near Island Block Road following a crash.

The two-vehicle crash was reported at around 7:40pm.

One person has been critically injured.

Motorists are advised to avoid the area and expect delays.

ENDS

Issued by Police Media Centre

New Chatham Islands ship confirmed

Source: New Zealand Government

The Government has confirmed the company that will procure a new Chatham Islands supply vessel, in a significant milestone which will see it operational in 2027.

The joint venture of McCallum Bros Ltd and Nova Marine Carriers SA (MBL JV) will supply a new 78 metre ship, designed to service the bespoke needs of the Chatham Islands community, Associate Transport Minister James Meager says.

“Contract negotiations will ensure the Chathams have a secure, reliable, long-term service which maintains or exceeds current levels, and has capacity to grow alongside the Island,” Mr Meager says. 

“This represents a major step in the progress of a replacement supply vessel, which is a vital economic and community lifeline for the Chatham Islands.

“At nearly 40 years old, the current Southern Tiare is older than I am and is nearing the end of its commercial life. Increasing unreliability and high maintenance costs have created significant hardship for a community which relies on it to import and export critical supplies.

“MBL JV’s practical, future-focused proposal meets locals needs, and ensures a reliable service which can be scaled-up to support future increased demand. It also gave us the greatest confidence a new ship can be delivered in-budget before the current vessel retires, without substantial upgrades required to existing infrastructure.” 

Mr Meager made the announcement as part of a two-day trip to the Chatham Islands, where he is visiting local businesses and community groups.

“It is important for Ministers to connect with the community in-person and reaffirm our Government’s commitment to supporting Chatham Islanders,” Mr Meager says.

“Due to the unreliability of the Southern Tiare we’ve seen examples of petrol running out, diesel supplies nearly exhausted, and livestock unable to be moved resulting in widespread culls. This deeply impacts livelihoods and wellbeing and must be resolved.

“This new service will support the Chatham’s economy, particularly fishing, farming, and tourism, and ensure essential supplies continue to reach the community for at least the next two decades.”

Update: Gisborne homicide

Source: New Zealand Police

Police are continuing to make enquiries following the death of a man in Gisborne on Monday morning.

Police were called to an address on Ormond Road, between Lytton Road and Riperata Street shortly after 4am, where the man was located injured, before passing away in Gisborne Hospital a short time later.

Detective Inspector Martin James says enquiries are progressing well, with a steady flow of information provided by the public to assist our enquiries.

“We currently have a team of around 30 staff members working tirelessly on this investigation, which includes some staff from outside of the Tairāwhiti area.

“The scene examination at the address is being carried out by specialist search and forensic teams and will continue in the coming days.”

A post-mortem examination was completed today.

“We continue to ask anyone with information, or anyone who saw or heard the incident, to please come forward and speak with us.”

Police can be contacted via 105, either over the phone or online. Please reference Operation Bushman, or the file number 250929/9035.

Information can also be provided anonymously through Crime Stoppers by calling 0800 555 111.

ENDS

Issued by Police Media Centre

Andrew Barclay appointed TVNZ Board Chair

Source: New Zealand Government

Andrew Barclay is being appointed as the new TVNZ Board Chair, Minister for Media and Communications Paul Goldsmith says.

“Mr Barclay has had a professional career spanning over 25 years in global investment banking and finance.

“His background equips him with the skills to provide continued strong oversight of financial performance and strategic decision-making, which are critical for a commercially focused public broadcaster like TVNZ.

“He will join the TVNZ Board on the 3rd of November this year, following the retirement of Alastair Carruthers on the 2nd of November.

“I would like to thank Alastair Carruthers for his efforts in chairing the Board since 2023.