Category: Public Media

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