Category: Politics

Source: Radio New Zealand

Former Police Commissioner Andrew Coster says he briefed both former Police Minister Chris Hipkins and current Police Minister Mark Mitchell about allegations being made about Jevon McSkimming from a woman he had an affair with.

Mitchell said he stands by all his statements and that Coster’s “recollections are wrong”.

“If Mr Coster’s focus is on relitigating matters, there are legal recourses available to him and if he truly believes what he is saying, nothing prevents him pursuing those.”

Hipkins has been approached for comment. He told TVNZ’s Q+A he had no recollection of the conversation.

RNZ revealed on Wednesday Coster had resigned as chief executive of the Social Investment Agency after the Independent Police Conduct Authority’s damning report into police’s response to allegations of sexual offending by former Deputy Police Commissioner Jevon McSkimming.

Coster has not responded to several interview requests from RNZ. In a statement on Wednesday he said his resignation was “a result of my acceptance of full responsibility for the shortcomings” identified in the IPCA’s report.

In an told interview with TVNZ’s Q+A on Sunday, Coster said there were ministers who knew more than they admitted.

He said he briefed the then Minister of Police Chris Hipkins in 2022 as he felt it was important he knew what he knew.

He said he told Hipkins that McSkimming told him he had an affair with a “much younger woman” and that the relationship “soured badly” and she was now emailing “all sorts of people with allegations about him”.

He said the briefing was in 2022 in the back of a car while the two men were travelling in the South Island.

He said he was unable to prove the conversation occurred.

“It’s simply my account.”

He said a big reflection for him was to take better notes, adding he wrongly assumed people would not “run for the hills”.

He also disputed that Mitchell was not aware of the allegations before November last year.

“There is no way I was only just telling him about this in my last couple of weeks in the job,” he said.

“We had discussed this informally through 2024…”

He did not have the exact date, but said it was an “informal conversation” in the same terms as his conversation with Hipkins.

Asked why Hipkins and Mitchell would deny that, he said: “you would have to ask them”.

“All I can say is no-one wants to be close to this.”

Coster said he was not saying others acted inappropriately, but that they knew more than they have admitted.

“There doesn’t appear to have been a full disclosure of the conversations,” he said.

Asked why he should be trusted, Coster replied: “I acted honestly, I acted in good faith, my judgements were wrong and I accept that.”

In response to Coster’s allegations, Mitchell said it was “disappointing that following his resignation, that came with an apology to police less than a week ago, Mr Coster is trying to deflect and relitigate matters”.

“I firmly stand by all my statements and facts presented in relation to the IPCA report. Mr Coster’s recollections are wrong.

“I want to make very clear that Mr Coster never briefed me, either formally or informally, about Jevon McSkimming and Ms Z prior to 6 November 2024. I would note his recollections of disclosures in the IPCA report were often found to be inconsistent and unreliable.

“If Mr Coster’s focus is on relitigating matters, there are legal recourses available to him and if he truly believes what he is saying, nothing prevents him pursuing those.”

Mitchell said that as a Government, the focus was on “implementing the recommendations of the IPCA report to ensure this cannot happen again”.

‘My intention was for this to be done properly’

Coster also said he did not pressure staff to get an investigation done in a week so as to not impact McSkimming’s chances of being commissioner.

He said he did not believe it was a complicated investigation to resolve.

“I was really saying let’s make sure we balance the need for him to make an application if he chooses to do that…”

He said at that time McSkimming was a victim of criminal harassment.

The IPCA report said all attendees of meetings regarding the investigation reported feeling pressure.

“I accept that I was very keen to make sure the investigation was moved forward in a timely manner. I wasn’t asking for a shortcut… I had an understanding that in the end it was a pretty simple question of where does the truth lie in this, is there sufficient evidence in the allegations.

“My intention was for this to be done properly.”

He said the “worst case scenario” was if the allegations were false “the ultimate victimisation of Jevon for criminal harassment was missing out” on applying for Commissioner.

‘A trusted colleague’

Coster said the McSkimming he knew during his time in police was a talented police officer and a “trusted colleague” who got on well with people, was innovative and good at his job.

He said he was “gutted” when he read in the media that objectionable material had allegedly been found on his devices.

Asked if he was friends with McSkimming, he said the two “weren’t mates”.

Near the end of the interview, Coster was asked about the comments from Police Commissioner Richard Chambers about the IPCA report and the leadership at the time.

Coster said it was “tempting” when you take over someone’s job “to say everything that went before was broken and wrong, because it creates a great platform to come in and fix it”.

“The truth is, in leadership you stand on the shoulders of others. You build on what others have done before you. And that was my approach, you know, I was quick to acknowledge the good work that was done by the previous Commissioner, to keep what was good and to build on it. That’s the way I would prefer to lead.”

RNZ earlier reported former Deputy Police Commissioner Tania Kura visited McSkimming while he faced charges of possessing child sexual exploitation and bestiality material. McSkimming pleaded guilty earlier this month.

RNZ understands she visited him with Police Assistant Commissioner Sam Hoyle. It’s understood Kura asked Hoyle to visit McSkimming with her. It’s understood the purpose of the visit was to do a welfare check on McSkimming.

Coster told TVNZ’S Q+A that Kura was a “good person”.

“When Tania says I went there to check on his well being, that’s what she was doing. And you know, it’s very tempting to treat someone who has been found to be doing what he was doing as a non-human.

“He was still the responsibility of New Zealand police in terms of his wellbeing, until he wasn’t, and I accept the way it looks and and a risk averse leader would say, you know, stuff him I’m not I’m not going to see him. You know, he can do what he wants. You know, I think she was trying to do the right thing for someone who, at the end of this is still a human being.”

Coster said the impact of the IPCA report and the fallout had been “hugely damaging”.

“It has caused me to step away from work that I believe in deeply, and I think is really important for our country. So, yeah, it’s a massive impact.

“I come at this, though, from a perspective that’s broader than me and my reputation. I know what I did. I know why I did it. I’m able to sleep well at night. You know, my faith is tremendously important to me and is an anchor where I my identity doesn’t come from what people think of me from my work, what I do, it comes from where I see myself standing in relation to the faith that I have.”

IPCA’s damning findings

The IPCA said that when McSkimming disclosed his affair to Coster in 2020, the former Police Commissioner should “at a minimum have asked more questions”.

“This is particularly the case given Deputy Commissioner McSkimming had told him that the female was aggrieved and was sending harassing and threatening emails to him and his community.”

Then in 2023, while a member of the interview panel for the statutory Deputy Commissioner appointment process, Coster “failed to disclose” to the Public Service Commission his knowledge of McSkimming’s relationship which had subsequently led to the emails.

“This failure clearly fell below what a reasonable person would have expected of a person in his position. Notwithstanding his recollection that the matter was already known to the panel, the panel members we spoke to were firm in their recollection that Commissioner Coster did not raise it, and that at that time they did not otherwise know about it. We have seen documentary evidence from the PSC that supports that view.”

In January 2024, Coster due to the number and nature of emails and concern for McSkimming’s welfare, Coster directed Deputy Commissioner Tania Kura to seek the input of the Fixated Threat Assessment Centre (FTAC), as well as consider mental health support for the woman.

An investigation into the woman, referred to as Ms Z, began February 2024 and she was charged under the Harmful Digital Communications Act in May 2024.

The charge against the woman was withdrawn in the Wellington District Court in September because McSkimming did not wish to give evidence.

The IPCA accepted that Coster entrusted Kura to commission the FTAC’s involvement, and to adequately respond to any recommendations they made.

“However, he was the Deputy Commissioner’s direct supervisor in terms of overall operations. Ultimately, he bore the responsibility for managing organisational risks.

“Given the very significant risk this matter posed to the organisation, even if the allegations were false, he should have given it higher priority and assured himself that the FTAC report was being handled appropriately. We cannot escape the conclusion that his preconception of Deputy Commissioner McSkimming as the only potential victim clouded his decision-making.”

Coster’s disclosure to the Public Service Commission on 8 October 2024, during the interim Commissioner appointment process also “fell well short of what a reasonable person would expect, given what he knew at the time.”

“At about the same time, he also inappropriately tried to influence the National Integrity Unit’s investigation into Ms Z’s complaint and to persuade the IPCA that the matter could be resolved quickly.

“While Commissioner Coster focused on the need to afford natural justice to Deputy Commissioner McSkimming, he did not sufficiently consider the injustice that would arise if there was indeed truth to Ms Z’s allegations.”

The IPCA said the influence was “most stark” in his letter to the IPCA on 22 October 2024 and in his meetings with staff on 30 October and 4 November 2024, during which he “sought to bring a serious criminal investigation to an unduly rapid conclusion so that it did not impact on a job application process”.

‘I acted in good faith’

In a statement to RNZ on Wednesday, Coster said his resignation was “a result of my acceptance of full responsibility for the shortcomings” identified in the Independent Police Conduct Authority’s report.

“I regret the impact on the young woman at the centre of this matter and sincerely apologise to her for the distress caused.

“I accept that I was too ready to trust and accept at face value Deputy Commissioner McSkimming’s disclosure and explanations to me. I should have been faster and more thorough in looking into the matter.”

Coster acknowledged he should have more fully investigated the allegations when they were brought to his attention, “rather than assuming that their previous disclosure to senior Police staff a few years earlier would have resulted in an investigation if necessary”.

“It is clear that Police’s handling of the whole matter was lacking and that I was ultimately responsible for those matters. It was sobering to read of a number of missed opportunities which should have proceeded differently and more appropriately.”

Coster welcomed Sir Brian’s acknowledgement that the report made no finding of corruption or cover-up, nor did the IPCA find any evidence of any actions involving officers consciously doing the wrong thing or setting out to undermine the integrity of the organisation.

“I made decisions honestly. I acted in good faith. I sought to take all important factors into account with the information I had at the time. While it is not possible to alter past events, I am prepared to take responsibility – I got this wrong.

“I want to apologise to all members of the NZ Police. They work hard every day to keep our communities safe. I know they have been adversely affected by these events.”

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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 Green Party is criticising the $8 million cost to set up the government’s traffic-light system for beneficiaries, which introduced new non-financial sanctions, calling it “smoke and mirrors”.

The Greens have drawn attention to the number, after Ministry of Social Development (MSD) bosses revealed, during Scrutiny Week, that just 12 people had received non-financial sanctions in the six months they’ve been available.

Nearly 13,000 sanctions were issued in total in the September quarter this year.

Green social development spokesperson Ricardo Menendez March said Minister Louise Upston had been “wasting everyone’s time” and money to create more layers of bureaucracy and “effectively unworkable” new sanctions.

Non-financial sanction options are mandatory community work or money management payment cards.

“These were supposed to be a less punitive way of addressing people’s engagement with Work and Income,” Menendez March said. “Clearly, the minister has instead chosen to continue a punitive approach.”

He said the new system merely added another interface for people to interact with, rather than meaningfully assisting people into employment.

“The only thing the traffic light has told us is that most beneficiaries are complying with their obligations… it doesn’t actually solve any problems.”

In response, Upston told RNZ the traffic-light system was “working well”, as it helped people understand their obligations.

In a statement, MSD spokesperson Graham Allpress said the new regime was intended to help beneficiaries avoid sanctions by meeting their obligations, of which and more than 98 percent currently were.

“We invested $8.11 million into a variety of changes, which make it quicker, simpler and easier for our clients to check whether they’re doing what they agreed to do.

“It’s working as intended. People are engaging with us more often.”

Allpress said the small number of non-financial sanctions was because they could be applied only in specific circumstances.

For example, to be eligible, the individual would need to be in case management or have dependent children, fail an obligation just once, and then meet with a case manager within five days of that failure.

Appearing at a select committee on Wednesday, during parliament’s scrutiny week, MSD chief executive Debbie Power denied those circumstances were too narrow, given just 12 people had received non-financial sanctions, saying, “We’re just starting”.

Power said she had heard from the front-line that staff and clients appreciated the transparency of the system’s colour arrangements to better understand what was expected of them.

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Source: Radio New Zealand

The reinstatement of an expelled MP raises serious questions for Te Pāti Māori voters ahead of next year’s election, political experts say.

An interim high court ruling has returned Mariameno Kapa-Kingi as a member of the party, after she was ousted alongside Tākuta Ferris in early November, following a period of internal conflict.

She will now attend this weekend’s Annual General Meeting.

Associate professor in politics at Victoria University, Lara Greaves, said voters might be unwilling to back a party in such an unstable state.

“A lot of their voters and a lot of Māori voters would, I think, be fairly tolerant of there being like internal conflict or there being instability, but this has just been like the most unstable we’ve seen a political party really ever be,” she said.

“This one’s been spectacular, this blow-up.”

Te Pāti Māori has acknowledged the judge’s decision and said it looked forward to bringing the issue to its members at this weekend’s meeting.

Greaves said says the blow-up was almost certain to be a topic of conversation among attendees.

“The thing for Kapa-Kingi is that that shows a lot of courage to show up to a party that’s tried to boot you out like that, so I think most people could probably empathise with someone in that sort of work situation, having to show up, but yeah it definitely does seem like Kapa-Kingi and Ferris are, they’re sticking to trying to change the party internally.”

In his ruling, Justice Paul Radich said there was an argument that Kapa-Kingi’s expulsion was based on “mistaken facts” and “procedural irregulaties”. The matter would be revisited at a full hearing in February.

Former Māori Party MP Te Ururoa Flavell said the decision was significant.

“There’s enough there, even in his statements, to suggest that the processes that were used were questionable and, therefore, it’s a bit of an indictment on, of the process that’s been used thus far.”

Flavell said the party had its work cut out for it to restore confidence among voters.

“A lot of damage has been done in what’s happened over these last couple of months, between individuals, for the party as a whole. I think our people and indeed those who are supporters of the Māori Party want this issue put to bed as smartly as possible and for the MPs to focus on the current issues of the day.”

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Source: Radio New Zealand

MP Mariameno Kapa-Kingi has been reinstated as a member of Te Pāti Māori, following an interim ruling by a high court judge, and will now attend the party’s Annual General Meeting this weekend.

The decision will be revisited at a full hearing in early February next year.

In a ruling published Friday afternoon, Justice Paul Radich said there were “serious questions to be tried” on the manner in which Kapa-Kingi was expelled from the party.

He said there were “certainly tenable arguments” that the expulsion was founded upon “mistaken facts and procedural irregularities”.

Justice Radich said he’s of the view there was a “position to preserve’. He acknowledged Kapa-King’s position in Parliament no longer reflects her election as an MP for Te Pāti Māori.

He pointed to practical considerations that weigh in favour of preserving her position as a member, such as access to party databases.

“While excluded, she and her staff can no longer access Te Pāti Māori database.

“Equally, the second applicant’s email address has been cancelled by the Pāti. That causes all sorts of issues for representation of the electorate,” said Justice Radich.

He also said Kapa-Kingi was not able to attend the AGM or other hui if she was not a member of the party.

“While the respondents have, in the assurances they have given, said that Ms Kapa-Kingi is welcome to attend the “protocol” session prior to the formal AGM – and that this is where the real discussion and pātai take place.

“That is a poor substitute for the full participation that would be open to her were she a member.”

Justice Radich’s decision to make an interim order pending the substantive hearing that will take place in February next year was released on Friday afternoon.

It followed Kapa-Kingi’s application for a temporary court order to reinstate her into the party and remove party president John Tamihere, which was heard by Justice Radich in the High Court at Wellington on Thursday morning.

Kapa-Kingi was expelled from the party, alongside Tākuta Ferris, in early November after a period of internal conflict.

The party’s co-leaders said the decision had been make in response to “serious breaches” of the party’s constitution, with both MPs fiercely disputing their expulsions.

She took the fight against her expulsion to court just days before the party’s AGM, taking place on Sunday in Rotorua, which she wasn’t able to attend in full following her expulsion.

The case

Kapa-Kingi’s lawyer Mike Colson KC said his client disputed how Te Pāti Māori’s constitution had been applied to two primary issues that had come to a head in recent months: a projected overspend on the Te Tai Tokerau budget and public statements made by her son Eru Kapa-Kingi.

Colson’s submissions were dense but focused on the party’s constitution and the step-by-step processes followed – or not followed – for the expulsion of Kapa-Kingi.

He submitted the national council meeting in which the decision to expel Kapa-Kingi was made wasn’t legitimate because her electorate was excluded from the hui.

On the decision itself, Colson said it had myriad issues, including the national council having no power to suspend or expel a member, the parliamentary funds in question not being party funds, there being no misuse of the funds (including for personal gain) and that a natural justice process had not been followed.

Tamihere’s lawyer Davey Salmon KC argued Kapa-Kingi’s assertion her case for legal intervention against her expulsion was “overwhelming” was was not borne out by the facts.

On the constitution, he said the national council did have authority to expel Kapa-Kingi as it was the “primary heavy lifter of hard decisions in this context”.

The constitution did not provide for a member to get a special disciplinary hearing and this was common practice used by other political parties, he said.

Salmon submitted there had been a quorum for the decision to expel Kapa-Kingi and that it was not relevant to suggest the funds in question were parliamentary funds, not party ones.

Allegations of misuse of funds were a “red rag to a bull” to certain media outlets and political opponents, and Te Pāti Māori had been determined to deal with them quickly, he said.

A more substantial hearing has been set down for 2 February 2026.

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Source: Radio New Zealand

The Oceans and Fisheries Minister has raised concerns about fish “heading to Te Waipounamu” due to warming waters.

“In my lifetime, we’re seeing the drift into the South Island of fisheries resources that have been historically located in the North Island,” Shane Jones said.

The minister appeared before the Primary Production select committee for Scrutiny Week on Friday morning, and was asked about his “favourite topic, climate change” by Green MP Teanau Tuiono.

“I did anticipate this question,” Jones responded.

In October, Tuiono had asked Jones about the risk posed by warming oceans to the sustainability of the fishing industry after the Our Marine Environment 2025 report showed the rate of warming in ocean waters around New Zealand was 34 percent faster than the global average warming rate.

Environment Minister Penny Simmonds also told Tuiono the report showed evidence that climate change was affecting primary industries including fisheries in a written parliamentary question.

The director of primary sector policy, Alastair Cameron, said during the hearing some fisheries were moving further south into “cooler waters”.

The Ministry for Primary Industries provided more information to RNZ, indicating marine heatwaves – that impact fish stocks – were becoming increasingly common in recent years. The ministry said it was a complex and developing issue and the exact way fish stocks were impacted was not fully yet understood.

MPI explained warmer waters meant species such as snapper and john dory may experience “shifts in their home range and overall productivity”.

Cameron said MPI considers the evidence and information about what impacts climate change could have on warming seas and the effect on fisheries and their distribution.

One of the responses to that work was looking at the regulatory systems, he said.

“How do we make those a bit more agile, a bit more flexible, to account for the changes that we might see.”

Jones said the fishing industry had asked and he had instructed officials to look at how to “cope” when big fishing boats were catching fish that was never there historically, and catching more because of the technology they use.

“If you’re catching a type of fish that’s historically not been present in a net, and you’re not able to bring it back to shore in a form that generates a good economic return, you are still being charged, through deemed value, a levy for having caught that fish.

“Now they’re not targeting it. It’s present because of changing water temperatures.”

He said smart regulatory responses that reflected oceanic changes were needed.

“We’ve got to have practical solutions, because the fish is heading to Te Waipounamu, e hoa,” Jones said.

He also joked he now needed “certain people in Te Tai Tokerau to follow the fish in the South Island”.

After the hearing, RNZ asked if the minister was alarmed to hear fish were migrating, to which Jones replied it was reflective of his “favourite subject, climate change – not”.

He said he was concerned if it imposed unnecessary burdens on the industry and they did not have the ability to deal with it.

Asked if the news gave him pause for thought around issues such as mining, he said he responded to the issue by requiring officials to “derive regulated responses on behalf of the state.”

“I don’t want to close down the economy to keep a few shrill voices in Dunedin happy.”

During the hearing, Jones also discussed the issue of public favour when it came to managing primary industries.

He spoke about an upcoming decision that was “more than likely” to stop the access of recreational and commercial people in New Zealand from taking crayfish from the entirety of Northland’s east coast.

“Those are very, very big decisions to make. But I’m making it.”

He said officials had used science and spoken to the public who had said “enough is enough. We have mined this resource to such a point it can’t survive if we stay on the current trajectory”.

“These decisions, they have to find public favour,” said Jones, but acknowledged later the public was not “of one mind”.

He said the government had “shifted the pendulum” so climate change was no longer regarded in quite the “polarising, ideological way” it had been.

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Source: Radio New Zealand

Finance Minister Nicola Willis and Climate Change Minister Simon Watts are meeting with their Australian counterparts in Auckland to discuss energy security and affordability.

It is the third such trans-Tasman meeting, with a focus on strengthening cooperation on climate action, clean energy and related regulations.

In a joint statement, Australia’s Treasurer Jim Chalmers and Climate Change Minister Chris Bowen said both countries were working together to seize “the golden economic opportunities of the net zero transformation”.

“Delivering on our shared commitment to net zero is critical for investor certainty, cheaper, cleaner energy in our region and advancing climate action across the Pacific.”

Earlier this week, Willis cast fresh doubt on whether New Zealand would pay for the offshore carbon credits it needed to meet its 2030 promise to halve greenhouse gas emissions.

It was not in New Zealand’s best interests “to send cheques for billions of dollars offshore”, she told reporters.

“That’s not our priority.”

Watts laid out the 12 things the ministers had agreed to work together on. They agreed to:

• coinvest funding to upgrade energy product regulatory systems, and regulatory regimes to accelerate adoption of energy-efficient technologies
• further align regulatory settings for consumer energy technology for a joint approach to enable EV chargers with smart tech
• develop vehicle-to-grid standards for EVs to ensure markets are aligned, including adoption of international communication protocols
• pursue regulatory alignment and market opportunities on solar and battery systems
• develop a trans-Tasman sustainable finance fuel strategy
• expand technical collaboration and information sharing on livestock emissions reductions
• continue bilateral and international engagement to develop complementary sustainable finance frameworks
• establish a working group of government and industry to share information and collaborate on solutions to help ensure insurance remains accessible
• find opportunities to align payment systems, licencising and digital asset reforms
• align building codes and standards
• work together on aligned product safety standards
• coinvest funding (NZ$1m from New Zealand and AU$4.1m from Australia) to upgrade energy product regulatory systems, and regulatory regimes to accelerate adoption of energy-efficient technologies.
• co-host a targeted technical assistance and training initiative with the Pacific for Pacific energy regulators in 2026.

Bowen highlighted the importance of the vehicle-to-grid standards, “which has such potential for both our countries to stabilise our energy grids, to ensure consumers become more in charge of their own energy”.

“They move from being consumers to ‘prosumers’, with solar panels on their roofs and batteries in their garage and on their driveway, putting them in charge – it is a big regulatory task to ensure that those regulations are fit for purpose… the more they can be aligned, the better for both countries.”

Watts was asked to explain how the governments would work together on securing insurance accessibility. He said the work would be important and there was a “real opportunity” in working together to strengthen the way the markets worked.

“We need our citizens to ensure they have insurance cover to deal with the impacts of climate change, and that’s one of the areas we’re looking to continue to explore.”

Willis said several insurance firms operated on both sides of the Tasman, “and to the extent that we can share lessons and align, we can ensure that we’re supporting more affordable insurance into the future”.

Bowen also thanked New Zealand for its support on Australia’s bid to take a leadership role at next year’s COP31 climate conference.

Australia initially aimed to host the conference, and was criticised by Pacific countries after pulling out. The conference will now be held in Türkiye. with Australia acting as president of COP negotiations, holding a pre-COP meeting in partnership with the Pacific.

“We discussed on Friday making sure that this is a COP which is meaningful and generational for the Pacific, making sure that the pre-COP which will be held in the Pacific is an important event and Australia and New Zealand will be working closely together in planning… together with of course our Pacific family,” Bowen said.

They would also work “to ensure the Pacific voices which have been ignored for so long actually get a good and solid and strong hearing in the important climate negotiations”.

Chalmers also announced Willis had accepted an invitation to take part in the discussion of state and territory treasurers next year, saying the economic challenges being grappled with were “familiar and common” across both countries.

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Source: Radio New Zealand

Inland Revenue is planning to crack down on shareholders taking loans from companies, in a move that could hand some an extra tax bill.

Inland Revenue (IR) is asking for feedback on proposals to improve the way new loans by companies to shareholders are taxed.

David Carrigan Inland Revenue deputy commissioner for policy, said it would bring New Zealand’s treatment of loans in line with other similar countries, while still allowing the normal business use of short-term drawings.

“We recognise that most companies manage their loans to shareholders and drawings responsibly. However, the current rules can allow some loans to become unmanageable, to the point they may never be repaid. For instance, our data has revealed some very large outstanding loans from companies to their shareholders.

“For the 2024 tax year, IR data shows about 5,550 companies had outstanding loan balances of more than $1 million each.

“When a shareholder borrows a large amount from their company and doesn’t pay it back, our current rules mean they can pay less tax compared to other shareholders who receive taxable dividends or taxpayers who earn income through salary or wages.”

The current rules often failed to collect tax on the funds left in the hands of the shareholder when a company was wound up, Carrigan said.

He said the main proposal was for a time limit that would treat certain shareholder loans as dividends, and tax them accordingly, if they were not paid back within 12 months from the end of the income year in which they were made.

“The change will only apply to new loans made after today, so it won’t apply to existing loans. To ensure it does not impact small businesses and ordinary transactions, the proposed time limit would only apply to companies whose total lending to shareholders is $50,000 or more.

“In addition to this main proposal, the issues paper also consults on proposals for outstanding loans to be taxed when a company is removed from the Companies Register and for improved reporting obligations on companies.”

Inland Revenue was going through a consultation period until February before it gives advice to ministers on the proposal.

Deloitte tax partner Robyn Walker said the proposal made it clear loans were common and a legitimate way to manage cashflow, and “not a problem per se”.

“However, the paper cites data about loan balances, with the key concern relating to companies and shareholders with material loan balances which have been outstanding for some time.

“For example, 5500 companies have shareholder loans outstanding of over $1m and 540 have loans of over $5m. The concern is that the use of loans with limited/no repayment provides an unintended tax benefit as compared to paying shareholder salaries or declaring dividends, and the use of – in some cases poorly documented – loans can be a contributing factor to other business issues such as being unable to pay creditors or outstanding tax debt.”

She said the impact would be most felt by small, family businesses.

“In some cases, there is a lot of blurring of the boundaries between business and personal expenses, particularly by using current accounts. The consultation paper indicates for around 50 percent of such businesses there is absolutely no issue because the outstanding loan balances are below the proposed threshold of $50,000; for the other businesses, 2026 should possibly be the year for talking with an accountant and putting in place a plan for managing how shareholders take money from the business.

“The paper points out that current accounts are not a problem in themselves, but it shouldn’t be one-way traffic of a balance just getting larger and the shareholder never earning anything in their own right.

“While interest is charged on loans and tax generated on that income, it results in a generally lower amount of tax in the short term and different timing of tax compared to when other taxpayers are paying tax for those who have no ability to pick and choose such as sole traders, employees …”

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Source: Radio New Zealand

About 95 percent of feedback on the fast-track amendment bill is opposed, with the coalition-majority select committee reporting back after less than a month.

The government intends to pass the legislation, which it says aims to address supermarket competition, by the end of the year.

All opposition parties oppose the bill, saying the claim it boosts supermarket competition is disingenous.

Despite submissions being open for just 10 days, some 2518 individuals and groups provided written feedback, and 85 appeared in hearings over 15 hours.

They raised concerns about:

• Potential removal of environmental safeguards
• Limits on the ability for iwi, hapū, Treaty settlement entities and other Māori groups to meaningfully engage in the fast-track process, with potential Tiriti o Waitangi implications
• The Environment Minister’s new ability to direct the Environmental Protection Agency (EPA), potentially affecting the independence or perceived independence of the panel convenors
• Shorter timeframes for those expert panels to consider technical information before deciding whether to grant consent to a project, with a default maximum of 60 working days, along with shortening a range of other timeframes. The panel convener raised concerns that the shortened processes would not be workable
• That people lodging applications under fast track would now need only ‘notify’ rather than ‘consult’ certain affected groups before applying, with those notified given 20 working days to respond
• The panels would have less discretion to seek comment from anyone they consider appropriate, because of a new requirement to first find out if local or consenting authorities plan to comment on the matter
• New limits on the ability to appeal a panel’s final decision to proceed with a fast-track project, potentially leading people to instead seek judicial review
• The ability for the Infrastructure Minister to issue a Government Policy Statement (GPS) by designating projects as nationally or regionally significant, potentially influencing the panels which use national and regional significance as a core metric for approval

The coalition MPs on the committee pushed back on some of these criticisms.

They said the current fast-track regime “includes some environmental safeguards” including that applicants must provide detailed information to the expert panels, and these provisions were not changing.

There was a requirement, they wrote, that anyone performing functions under the Act would still be required to act in a way that was consistent with Treaty settlements and some customary rights.

Policy statements were also only one thing the panels must consider, and the panels could still deline approval “if the adverse effects of a project were found to be significantly out of proportion to its regional or national significance”.

The bill also allows some time frames to be extended in certain circumstances or with agreement from the applicants.

Coalition to push changes through without public consultation

Unusually, the committee recommended no changes because of the short timeframe, and because the government plans to introduce other changes in the Committee of the Whole House stage, without public consultation.

“Advisers have brought several issues to our attention following public submissions. We understand the government has identified several changes that it plans to make to the bill,” the report said.

“We agree that these identified issues warrant further consideration by the House.”

Instead, the committee “suggested changes” to be considered at the Committee of the Whole House stage. Committee recommendations are usually debated and voted on earlier, at the Second Reading.

The suggested changes include:

• The Infrastructure Minister should be able to consult anyone they want during development of a GPS
• Clarify that projects cannot be submitted for approval before the window for notified parties to give feedback ends
• Require the EPA to provide substantive applications to the panel convener within five working days of receiving it
• Remove the proposed timeframe for appointing expert panels
• Retain the power of the panel convener to request certain reports, rather than enabling expert panels to do so
• Clarify the provision that would enable applicants to modify substantive applications
• Increase the default maximum time for an expert panel to make its decision to 90 working days
• Increase the maximum time that an applicant may suspend processing of their application to 100 working days
• Clarify that conditions can only be placed on the approval holder
• Improve assurances and clarify the scope of the Minister’s ability to direct the EPA
• Clarify the scope of the proposed regulation-making powers related to cost recovery
• Clarify that proposed new section 117A(3) would not allow new projects to be added to Schedule 2 of the Act
• Amend the description or described location of certain projects listed in Schedule 2 of the Act
• Enable certain other parties to raise issues regarding prospective panel members
• Require an expert panel to begin work within five working days of being appointed
• Clarify that the panel convener would not be required to appoint members with sectoral expertise if not practicable
• Include the Ministry for the Environment and the Ministry for Culture and Heritage in the definition of administering agency in section 103 of the Act
• Include commencement and transitional provisions

RNZ sought comment from RMA Reform Minister Chris Bishop, but he was unavailable.

Opposition parties cry foul

On top of the criticisms raised by submitters, Labour claimed the bill was making “major changes” despite the minister describing it as “rats and mice”, while the Greens said it was “disingenuously framed”.

Labour complained about the short consultation period, the lack of a Regulatory Impact Statement, and the unusual process – saying it was a “terrible way to make law”.

The new ability for developers to complain about a person being appointed to the expert panels was “outrageous”, Labour said, and opposed the proposed retrospective and Henry VIII provisions.

The Greens called the bill “unprecedented and unacceptable overreach on communities’ democratic participation” which would “only make this harmful legislation worse”.

The party – which last month pledged to revoke certain fast-track consents – pointed out many of the controversial changes were only supported by those with fast-track applications, and said it would reinstate a mechanism “far too open to potential corruption”.

Te Pāti Māori said the bill would allow ministers to approve or decline projects without acting in partnership with Māori, with tapu sites able to be authorised for destruction or modification, and leaving groups that had not yet reached a Treaty settlement unable to be involved in decisions affecting them.

The party warned the bill would collapse legal barriers to seabed mining and drilling, and “undermines everything Aotearoa claims to value about partnership, accountability, and intergenerational responsibility”.

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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 government decision to reject stronger climate targets is pitiful, and will cost households in the long run, scientists, advocates and opposition politicians say.

However, a scientist who contributed to the government’s methane review said he’s not surprised the Climate Change Commission’s “activist” recommendations were rejected – but has still taken a swing at the lack of concrete policy action.

The coalition on Thursday released its response to the independent Commission’s advice to strengthen New Zealand’s 2050 targets for methane and carbon emissions, and include emissions from international shipping and aviation in the targets.

It rejected all three recommendations.

The status quo targets are to hit net-zero carbon emissions by 2050, and reduce methane emissions by 24-47 percent from 2017 levels.

The Commission had recommended increasing the lower bound of the methane target to a 35 percent reduction, and pursuing a net-negative target for carbon dioxide and other long-lived gases – meaning New Zealand would need to suck more greenhouse gases from the air than it emitted.

The government had already indicated it would reject both the methane and carbon recommendations, and instead lower the methane target to a 14-24 percent reduction.

In its formal reasons for rejecting the commission’s advice, the government said it had weighed the benefits of climate action against the economic costs.

Modelling indicated that GDP would be 0.4 percent lower than the status quo in 2035, and 2.2 percent lower in 2050, if it implemented the stronger targets.

“Implementing the Commission’s recommended target would also require major policy reform and private sector action,” it said.

The government said it took into account concern from rural communities about land-use change and food production loss if it strengthened the methane target.

Former Climate Change Commissioner James Renwick said the government’s decision was “a deeply disappointing response, and a dangerous one”.

He and his fellow commissioners found that setting higher targets was not only compatible with long-term economic growth, but would prevent future costs, he said.

“This government seems to be all about economic growth now, this quarter, this year, and anything that is apparently a cost that would limit that is off the table.”

In its advice to the government in November last year, the Commission said the global climate outlook had worsened since the 2050 targets were first set.

The county could, and should, do more, including through faster-paced electrification of transport and industry, and greater uptake of methane-inhibiting agricultural technology, it said.

Dr Renwick said the commission had also warned of the intergenerational inequity of not acting faster, now.

“What’s the future going to be like for my children and their children?”

Labour’s climate spokesperson Deborah Russell said today’s decision was “bollocks”.

“They’ve focused on the costs of climate action but they haven’t looked at the cost of not doing anything and they also haven’t looked at the lost opportunity-cost of green jobs.”

Greens co-leader Chlöe Swarbrick said the economic rationale for rejecting the advice did not stack up.

“We’re talking about tiny numbers in terms of the GDP impact, and this is to be contrasted with the thoroughly evidence-based assessment that the Climate Change Commission has made.”

Greenpeace Aotearoa executive director Russel Norman said climate change would cost the country anyway.

“Climate change is going to cause immense damage to the New Zealand productive sector, both the agricultural sector… but everywhere else as well – think about the impacts of Cyclone Gabrielle and other extreme weather events like that.”

The global accord to tackle climate change via the Paris Agreement had been hard-won and New Zealand’s actions undermined that, Dr Norman said.

“If more governments behave like the Luxon government, it will unravel global efforts to cut emissions.”

But Canterbury University Professor Dave Frame, who was on the expert panel tasked with finding a methane reduction level consistent with a policy of ‘no additional warming’, said he was not surprised the “activist tone” of the Commission’s advice was rejected.

“The [Commission] never really explained to New Zealanders why we, alone, should commit to including international aviation and shipping, biogenic methane, and net negative emissions, when other countries are, for the most part, pledging to get to net zero emissions by 2050.”

Long-term targets mattered less than concrete policy signals and the government’s form on that score was “mixed”, he said.

He agreed with Finance Minister Nicola Willis’ assessment that it would be reckless to pay billions of dollars for overseas carbon credits, and if the country missed its first Paris target, “so be it”.

However, the government had been “pretty reckless” in dismantling programmes like the Clean Car Discount for EVs, he said,

“Because we have a comparatively clean electricity grid, transport is a more important sector for New Zealand than for many other countries.

“We really have been sluggish where others are actually taking action, and it’s pretty hard to square the pandering to SUV drivers with the government’s claims to be serious about getting to net zero.”

The “clear impression” that carbon markets had was that the government was back-tracking on climate policies.

“There needs to be initiatives to build better policies, not just dismantle ones you don’t like.”

The 2050 targets were due to be reviewed again in 2030. However, proposed amendments to climate law will now see that review pushed out to 2032.

RNZ has requested an interview with Climate Change Minister Simon Watts.

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

Source: Radio New Zealand

KiwiRail’s board chair says a director of the rail company with a number of links to transport businesses is affecting the governing body’s capability and efficiency.

In July it was announced by Rail Minister Winston Peters that Scott O’Donnell was appointed to the KiwiRail board.

There were several measures put in place to manage his conflicts of interests related to the 10 companies he is involved in – many of them in transport.

Treasury put a plan together to manage these interests, which featured seven measures.

It included eliminating access to sensitive information, the vetting of board agendas and papers before they are sent to O’Donnell, the requirement for O’Donnell to declare if any agenda items pose a conflict before board meetings, and recusal from discussions.

As reported in September by RNZ he was also one of the four directors of Dynes Transport Tapanui, which donated $20,000 to NZ First in July 2024.

Peters said at the time that the donation from Dyne’s Transport played no part in O’Donnell’s appointment to the board and that he was aware of the extent of the conflicts of interest.

Despite the restrictions on what O’Donnell could be involved in, he would be effective in his role, Peters said.

Treasury did not advise against the appointment of O’Donnell, he said.

During a KiwiRail briefing on Tuesday during Parliament’s scrutiny week, KiwiRail board chair Suzanne Tindal said the conflict management that had been put in place had resulted in O’Donnell having to recuse himself from “a number of items on the board agenda”.

“We are due to report how we are managing that conflict management to the two shareholding ministers early in 2026.

“It will become quite evident when we do the amount of time that director has to be recused.”

Tindal was asked by the ACT Party’s Simon Court if it had impact on the board’s capability and efficiency.

“It does have an effect is the answer to that.”

She said “more importantly” that director needed to consider whether they can discharge their duties as required in accordance with the companies act.

When approached by RNZ KiwiRail would not say how many board meeting agenda items he had missed because of his conflicts.

“That information is being compiled as part of the regular reporting to Shareholding Ministers on the conflict management plan, which is due in the first few months of next year.”

Simon O’Donnell has not responded to RNZ’s request for comment.

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