Services recovery hits brick wall

Source: Radio New Zealand

The services sector recovery has come to an abrupt halt after only two months in expansion. 123RF

  • Services sector slumps into contraction
  • All five sub-indices retreat
  • Negative comments stay elevated
  • BNZ says PSI “a real disappointment”.

New Zealand’s services sector recovery has come to an abrupt halt after only two months in expansion.

The BNZ-BusinessNZ Performance of Services Index (PSI) fell by 2.7 points to 48.0 in January, below its long‑term average of 52.8.

A reading below 50 indicates the sector – which accounts for nearly three‑quarters of the economy – is contracting.

BusinessNZ’s chief executive Katherine Rich said that the service sector’s expansion had only lasted two months, and February’s result was similar to the levels of contraction seen towards the end of 2025.

All five sub‑indices fell into contraction.

Stocks/inventories recorded the deepest pullback at 46.7, followed by employment at 47.2. Activity/sales slid sharply to 47.9, and new orders/business dropped back below 50 to 49.3

The share of negative comments eased slightly to 56.4 percent in February, down from 58.7 percent in January.

Firms cited weak economic conditions, high living costs, inflation and interest rates suppressing consumer spending and demand.

BNZ’s senior economist Doug Steel said that bad weather in February may have played a part, but there was no denying that today’s PSI suggested that the economy is recovering at a slower pace than expected.

“The PSI comes as a real disappointment given that Friday’s Performance of Manufacturing Index (PMI) was relatively upbeat,” he said.

Steel said most indicators over recent months had pointed toward a slow recovery, but today’s release underlined how fragile that recovery remains.

The slow momentum, combined with uncertainty stemming from developments in the Middle East, leaves the inflation outlook “well and truly up in the air”.

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IRD issues warning over employers failing to pass on tax deductions

Source: Radio New Zealand

The department has issued a “revenue alert” which are are issued when there are significant or tax issues. Supplied

Employers are being warned that they could be sent to prison if they take tax from their employees’ pay and do not send it to Inland Revenue.

The department has issued a “revenue alert” over the failure of some employers to pass on PAYE deductions.

These alerts are issued when there are significant or emerging tax issues of concern.

Employers must pay PAYE, as well as any other deductions from employees’ salaries, by the due dates. If they do not, they can face up to five years in prison.

Anyone who aids, abets, incites, or conspires with another person to commit to do that also commits a criminal offence. This means, for example, that the director of a company who decides that the company will not pay the deductions to Inland Revenue may be prosecuted for the company’s failure to pay.

Robyn Walker, tax partner at Deloitte, said it was a timely reminder that not paying PAYE was a really bad thing to do and the consequences could be serious.

“Historically it was always the case that not paying PAYE was an extremely frowned upon action, as this is tax which is being deducted from employee’s pay and held on trust by the employer. This is conceptually different to if a business is having trouble paying its own company tax bill, because it is other people’s money.

“Rightly or wrongly, during the Covid years there was more leniency applied to PAYE payments, and so some employers may have begun taking a more casual approach to paying PAYE. This can be seen in the statistics of what makes up tax debt – In September 2000 there was $800m of ’employer’ tax debt, the June 2025 statistics put this at $2m now.”

IR said it had taken legal action that had resulted in people being sent to prison.

In one case, a Christchurch woman was jailed for three years for taking $1.6 million from employee wages and not passing it on to the tax department.

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Mass resignations rock Solomon Islands government

Source: Radio New Zealand

RNZ / Samuel Rillstone

Ten Solomon Island Cabinet ministers have tendered their resignation in an apparent coalition breakdown.

RNZ Pacific understands that Deputy Prime Minister Frederick Kologeto and every member of the Peoples First Party (PFP) are among them.

Others include Finance Minister Harry Kuma, Justice Minister Clezy Rore and Health Minister Paul Popora Bosawai.

A spokesperson for Government House confirmed that the resignations were received at quarter past nine last night.

Solomon Islands Governor-General Sir David Tiva Kapu is now giving the ministers until 12pm (today) Monday to re-consider their choices.

Prime Minister Jeremiah Manele now faces a third threat to his leadership, having survived a motion of no confidence in April 2025 after six ministers and five government backbenchers walked away.

The opposition grouping would need a majority of 26 in the House to pass such a motion.

The Prime Minister, Deputy Prime Minister and Opposition Leader Matthew Wale have been approached for comment.

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Fuel crisis: Which foods will rise in price fastest, and when?

Source: Radio New Zealand

RNZ

Food prices are likely to rise if war in the Middle East keeps pressure on oil prices – but some types of food may be more affected than others.

Infometrics chief forecaster Gareth Kiernan looked at which sectors might be most exposed by comparing the proportion of their costs devoted to oil-based fuels.

He said the fishing sector was top of the list. It spent about 25 percent of its input costs on oil-based fuels.

“Diesel for boats, presumably.”

That was followed by horticulture, which spent about 5 percent of its costs on oil-based fuel.

“Presumably that’s around heating or that kind of thing.”

Next was farming more generally,

“You get down to broader areas of farming, sheep and beef… where you’re talking about 3 percent to 4 percent of overall input costs.”

He said fertiliser could be an additional cost that was also exposed to energy price movements.

Supermarkets spent about 10 percent of their non-wage costs on transport, he said, and meat processing was at a similar level.

Kelly Eckhold. Supplied / LinkedIn

Westpac chief economist Kelly Eckhold said food coming from overseas would also be affected.

“The issue is how transportation costs start going through – I guess anything that’s having to come from overseas is going to have a higher transportation component.”

Kiernan agreed.

“Stuff that is having to travel halfway around the world – cocoa beans or coffee or whatever it might be – that is potentially going to be more heavily impacted than stuff we’re producing globally.”

Eckhold said it could be a couple of months before food price rises started to be seen on New Zealand shelves.

“That’s what we got through Covid… there is a bit of a lead there between movements in global food prices and what we see here, assuming it’s not driven by a local climatic type thing. There’s about a six-month lag. Some of that stuff could be building all through this year.”

Eckhold said it could be the case that more businesses would start to charge a separate fuel surcharge to cover their additional costs.

“I would envisage you could see the introduction of a whole lot of surcharges coming on to things, as people say, ‘Well hey, I’ve got this particular identifiable increased cost,’ and you’ll find that you might end up having to pay an extra $5 or $10 or something like that for anything that’s got a clear transportation component – courier fees and things like that, for example.”

He said he now expected the Consumer Price Index to stay above 3 percent until the end of the year.

Infometrics’ supplier cost index showed costs to Foodstuffs supermarkets up 2.3 percent year-on-year in February, before the oil price rise began to be felt.

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Ninety Mile Beach Snapper Bonanza winner reveals his secrets

Source: Radio New Zealand

Kaitāia man Harley Ra with the snapper than earned him more than $30,000. Supplied

The winner of the $30,000 top prize in this year’s Ninety Mile Beach Snapper Bonanza says the secret is pilchard bait and his dad’s fishing rigs.

Harley Ra, who was raised in Kaitāia but works in Perth, hooked the 7.665 kilogram winner on Saturday, the final day of the five-day contest.

Ra suspected he had the winning fish as soon as he pulled it into the shallows.

“It ran for a fair bit. Then it started going sideways. I thought it was a stingray, but then there were more head nods, and it just kept stripping line,” he said.

“It wasn’t till I seen it get close, I seen the big tail flipping up, and I thought it was a stingray wing, and I thought ‘oh bugger’. Then just as it got into the clear shallows, I saw it was a snapper, and I was screaming out, ‘holy shit, it’s a moocha’.”

“I ran straight down to the water to grab it and grab my trace. It snapped at the water’s edge, and I dug into its gills straight away to grab it.”

That was just after 8am.

“It was early, and I was nervous the whole time. I pretty much knew it was the winner then. And I was like, I need to get back to the ramp [contest headquarters] to weigh this ASAP. So I was nervous hanging around. About 12 o’clock, I packed up and boosted straight back to the tents for weigh-in.”

Harley Ra with his winning fish, the trophy and his father John Ra, known in Kaitāia for his expertise in making fishing rigs. Supplied

Ra said he had fished in the Snapper Classic – an earlier version of the contest – as a child with his father and uncles, but this was only his second time competing in the Bonanza.

Using the right bait was key to success on Ninety Mile Beach, he said.

“I used BKK circle hooks, and the bait was pilchard, just half a pilchard. It always works up the Ninety [Mile Beach]. When the bite’s hot, pilchard’s the go, and then when the bite cools down, then you go to ocky (octopus])and crayfish and all your other exotic baits.”

Ra also credited his father, John Ra, who was known in Kaitāia as an expert rig-maker.

“Dad does all our fishing tackle. He does some pretty mean fishing rigs. He even does his own bit of YouTube and Facebook showing how to do it.”

As well as the $30,000 top prize for heaviest snapper of the contest, Ra took home $2500 for Saturday’s biggest fish.

He confessed to feeling “a bit hazy” after that night’s celebrations.

“We drank a few at the tent, and then went down to the Awanui pub. The boys filled the cup up, and we drank from the cup.”

As for what he would spend his winnings on, Ra said he would leave that to his wife, Alicia.

“I let her decide. She makes the smarter decisions.”

Harley Ra takes a break from fishing during the Ninety Mile Beach Snapper Bonanza. Supplied

Ra said he would definitely be back next year – as long as he could get a ticket.

Tickets were capped at 1200 and sold out in less than an hour when they went online.

“So when they go on sale here at seven, that’s 2am in Perth, so you gotta set the alarm at 1am. Get up, make a coffee, and get ready to start hammering the button at two in the morning.”

Until Ra hooked his winning snapper, Ōpōtiki man Darin Maxwell was on track to become the first fisher to win the competition twice.

In the end, Maxwell had to console himself with second place and cash prizes totalling $4500 for a fish weighing 7.25kg.

Maxwell’s monster 12.03kg catch in 2012 remains the heaviest snapper caught in the competition’s 15-year history.

Far North man Harley Ra with the snapper that earned him a whopping $30,000. Supplied / Snapper Bonanza

The Bonanza, which has been held every March since 2011, is said to be the world’s largest surfcasting competition.

Fishing is permitted only from Ninety Mile Beach – or Te Oneroa-a-Tōhe – not from rocks or boats.

The contest is organised by Kaitāia publican Dave Collard and printer John Stewart, who rescued the event after the Snapper Classic folded due to financial difficulties in 2009.

The annual prize pool totals more than $200,000.

About 120 fish caught during the contest were auctioned off at Saturday’s Kaitāia Market, raising more than $14,000 for the Kaitāia Volunteer Fire Brigade.

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Oscar 2026 live: The full winners list

Source: Radio New Zealand

The 98th Academy Awards are set to roll out Monday (NZ time) in the heart of Hollywood, with funnyman Conan O’Brien on tap to host the proceedings for the second year in a row.

The leadup to this year’s edition of the Oscars has been anything but standard, with disdain for ballet and hatred of housecats adding some zany conversation to a wide-open race.

A scene from Sinners.

Courtesy of Warner Bros. Pictures via CNN Newsource

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Layer of regulation on telcos believed to have ‘done the job’ and could be lifted

Source: Radio New Zealand

The Commerce Commission has passed on its recommendation to the Minister for Media and Communications for consideration. boscorelli

Rules keeping a lid on the cost of calls and text messages between mobile providers’ networks could soon be scrapped.

Regulation introduced in 2010 sought to control what telcos could charge one another for calls and messages between their networks, otherwise known as the Mobile Termination Access Service.

The intervention was designed to help increase competition in a market dominated at the time by Telecom and Vodafone.

“The two big operators were squeezing 2degrees and they did that by making it cheaper to call within their own networks, while making it expensive for 2degrees to send calls to their networks,” says Tristan Gilbertson, Telecommunications Commissioner at the Commerce Commission.

“That squeeze created a structural disadvantage in the market for a new entrant like 2degrees.”

He says regulation gave 2degrees a chance to compete and grow into a strong third market player.

“Our view is that regulation has done the job it was intended to do and can step back,” says Gilbertson.

“Good regulation needs to know when to step in, but also when to step back and we think allowing competition to take over when it’s strong enough to do that, helps support investment, innovation and confidence in the sector.”

The Commerce Commission has passed on its recommendation to the Minister for Media and Communications for consideration.

Gilbertson says if approved, the telco sector will be left to its own devices on wholesale services pricing.

“The existing baseline of arrangements that have developed over the past 15 years will remain in place and competition will discipline the commercial arrangements over time,” he says.

“In practice, we really don’t think that very much will will change either at that inter-operator level, where existing arrangements are very well-entrenched in the market or at the retail level for consumers, this change should be invisible to consumers.”

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Social Investment Agency deputy resigns while under bullying, harassment investigation

Source: Radio New Zealand

Kylie Reiri, pictured in 2017, quit as Deputy Chief Executive of the Social Investment Agency last month. (RNZ / Teresa Cowie )

The Deputy Chief Executive of the Social Investment Agency has resigned while under investigation in relation to allegations of bullying and harassment.

Social Investment Agency (SIA) Deputy Chief Executive Kylie Reiri left the job last month. Her departure comes after former SIA chief executive Andrew Coster quit in December following a scathing Independent Police Conduct Authority report.

Within days of Coster’s resignation, RNZ was contacted with allegations that Reiri was under investigation in relation to complaints of bullying and harassment.

RNZ contacted Reiri at the time who said she was on leave due to health-related reasons. She did not respond to requests for comment over the weekend.

  • Do you know more? Email sam.sherwood@rnz.co.nz

Approached for comment in December, the SIA said they did not comment on individual employment matters. Asked why that was and for the status of Reiri’s employment, the SIA treated the follow up questions as a request under the Official Information Act (OIA).

Then, in January, the SIA released an OIA which said they do not generally comment on individual employment matters “as the disclosure of information relating to individual employees would involve the unwarranted disclosure of personal information”.

The following month Reiri resigned.

Andrew Coster resigned from the Social Investment Agency following the damning IPCA report. RNZ / Samuel Rillstone

In an email on February 12, released to RNZ, SIA’s acting chief executive and secretary for social investment Alistair Mason said Reiri had resigned.

“We acknowledge the contribution Kylie has made during her time here. We thank her for her service to the organisation and wish her well for the future,” he said.

“I know you may have questions, however, out of respect for Kylie’s privacy I am not able to discuss this matter.”

In an OIA released to RNZ, the SIA confirmed there had been two employment investigations over the last 12 months.

“I am also able to confirm that there has been one investigation in response to four formal reports of bullying and harassment. In the interest of privacy, we cannot provide a breakdown as to what each allegation was concerning.”

RNZ understands the investigation, which is ongoing, relates to Reiri.

“As a responsible employer, SIA takes these matters seriously and all complaints are investigated and followed through to the end. We have robust policies and procedures to manage disclosure of any allegations including protected disclosures (speak safe) and bullying and harassment policies, which provide informal and formal options for staff to raise concerns of serious wrongdoing and bullying and harassment.”

A SIA spokesperson said in a statement to RNZ they could confirm Reiri had resigned from her role.

About a month before the IPCA’s report was released, Coster sent an email to all staff following a meeting that day.

In the email, seen by RNZ, Coster said it was important for him that the SIA was an organisation “where each one of us feels we can bring our best to our work, in an environment that is positive and enabling.”

“Acknowledging the wider context from the Public Service census (in which we fared well and in connection with which we have an action plan), some comments in a recent Te Rama survey have given me cause for concern. I want to be able to address any issues, to ensure this is a place where everyone feels respected and valued. To do this, I need to understand your experiences and perspectives.

“To that end, I want to make myself available to meet with anyone who would like to talk. If you have something to share, please reach out to me directly. Anything you share will be treated with respect and care. I value your thoughts and insights, and I will only use what you share in a way that aligns with what you are comfortable with. I understand that speaking up isn’t easy but I invite you to feel that I will listen and take action where that is required.”

About a month later, he emailed staff about the IPCA report.

“In light of that report, I’ve agreed with the Public Service Commissioner that I will take leave while we work through a process connected with it. In my absence, Alistair Mason will cover for me.

“I’m sorry to have to step out at this time. Thank you for the amazing work you’re all doing.”

Then, two days later, Mason emailed staff and said he’d had a “good conversation with Minister [Nicola] Willis last night”.

“The primary purpose of the conversation was her wanting to check-in on the wellbeing of the agency and the staff. She wanted to know if there was anything she could do and if we are getting the support we need. Importantly she expressed her ongoing confidence in the Social Investment Agency.

“The Social Investment Board also had an ad hoc meeting last night and have again expressed their support for the agency and offered to lean in and support wherever they can. And of course I am in regular contact with PSC who are offering any support we need.”

In December, RNZ asked SIA Minister Nicola Willis’ office for comment on the matter. They said questions were best put to the SIA.

“Staffing within agencies is an operational matter for which Ministers don’t have responsibility.”

On Monday, a spokesperson for Willis said the Minister didn’t have any comment to make.

“Employment matters within government agencies are for agency chief executives and, if warranted, the Public Service Commission to manage.”

Reiri’s profile on the SIA website, which has since been taken down, said she brought a “unique blend of public and private sector experience to the Social Investment Agency”.

“Her career has been dedicated to improving outcomes for New Zealanders through data-driven decision making and social investment approaches.”

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Black Ferns Sevens win New York title to wrap up World Series victory

Source: Radio New Zealand

Kelsey Teneti of New Zealand scores a try. RICHARD WAINWRIGHT

The Black Ferns Sevens have wrapped up the World Series title for another year after beating Australia 22-21 in a thrilling final of the inaugural New York round.

They won five of the six rounds this season with their victory in New York extending their lead in the overall standings over the Australians, who won one round.

Kelsey Teneti opened the scoring for the Black Ferns before Australia hit back with two tries to take a 14-5 lead into halftime.

Jorja Miller in action for the Black Ferns. Photosport

Australia were the first to score in the second half through Tegan Levi to extend their lead to 21-5.

The Black Ferns needed to score next and they did through Alena Saili to cut Australia’s lead to 11 points with a few minutes remaining.

New Zealand kept hold of possession and scored again with Teneti dotting down to make it a one-try game at 21-15.

Australia tried to kill the game off by holding on to the ball for the final minutes but gave away a penalty handing New Zealand possession. The Black Ferns took their chance with Katelyn Vahaakolo diving over at close range.

The try was converted giving New Zealand a 22-21 lead and that’s how the match would end, with the Black Ferns crowned champions in New York. Teneti was named player of the final.

The New Zealand women beat Great Britain, Fiji and France in pool play. They beat hosts the USA 26-14 in the semi-finals before outclassing Australia in the title decider.

The New Zealand men finished sixth in New York.

They lost to South Africa and Australia in pool play, before beating Great Britain in the fifth place semi-final. They were then beaten 21-14 by France in the fifth place playoff.

South Africa won the men’s title after beating Fiji 10-7 in the final, with the victory also securing the overall World Series title for the South Africans.

The All Blacks Sevens finished fourth overall.

The season features a new structure, with the first six rounds deciding the World Series winners, before three further tournaments to determine the World Champions.

The New Zealand teams next play a three-tournament World Championship series (held in Hong Kong, Valladolid, and Bordeaux), with the Grand Final in Bordeaux, France, on 5-7 June.

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Key players missing for All White World Cup warmup games

Source: Radio New Zealand

Chris Wood of the New Zealand All Whites. © Bildbyrån Photo Agency 2025 © Photosport Ltd 2025 www.photosport.nz

All Whites coach Darren Bazeley has been unable to call on a number of key players for World Cup warmup games at home against Finland and Chile later this month.

Missing through injury are regulars Michael Boxall, Liberato Cacace, Matt Garbett, Nando Pijnaker, Sarpreet Singh, and captain Chris Wood.

However, all are set to return to play ahead of the FIFA World Cup in June and July.

There is a debut call-up for Newcastle Jets’ Lachlan Bayliss.

“These are two really important games for us as we continue building towards the World Cup, so it is great to name our squad to play in front of our home fans for the last time before the tournament,” Bazeley said.

“I want to congratulate Lachlan Bayliss on his debut All Whites call-up. He has been in great form over the last few months with Newcastle Jets, so I’m pleased to bring him in for the first time at senior level.

“We know the deadline for naming our FIFA World Cup squad is getting closer and closer, so we are pleased to be able to give opportunities to a number of players to state their case, especially with a few regulars unavailable for this window.

“Finland and Chile should be great tests for us, and we look forward to taking them on in front of all of our home fans at Eden Park.”

The FIFA Series games at Eden Park also involve Cape Verde.

85th ranked New Zealand play 75th ranked Finland on 27 March and 55th ranked Chile on 30 March.

All Whites squad:

Kosta Barbarouses (70 caps, 9 goals) Western Sydney Wanderers, Australia

Lachlan Bayliss (debut) Newcastle Jets, Australia

Joe Bell (28/1) Viking FK, Norway

Tyler Bindon (20/3) Sheffield United, England (on loan from Nottingham Forest)

Max Crocombe (19/0) Millwall, England

Andre De Jong (11/2) Orlando Pirates, South Africa

Francis De Vries (15/1) Auckland FC, Aotearoa New Zealand

Callan Elliot (7/0) Auckland FC, Aotearoa New Zealand

Eli Just (38/8) Motherwell, Scotland

Callum McCowatt (28/4) Silkeborg IF, Denmark

James McGarry (3/0) Brisbane Roar, Australia

Ben Old (18/1) AS Saint-Étienne, France

Alex Paulsen (5/0) Lechia Gdańsk, Poland (on loan from AFC Bournemouth)

Tim Payne (48/3) Wellington Phoenix, Aotearoa New Zealand

Jesse Randall (5/1) Auckland FC, Aotearoa New Zealand

Logan Rogerson (16/2) Auckland FC, Aotearoa New Zealand

Alex Rufer (22/0) Wellington Phoenix, Aotearoa New Zealand

Marko Stamenic (33/3) Swansea City, Wales

Finn Surman (13/2) Portland Timbers, USA

Ryan Thomas (23/3) PEC Zwolle, Netherlands

Bill Tuiloma (45/4) Wellington Phoenix, Aotearoa New Zealand

Ben Waine (26/8) Port Vale, England

Michael Woud (6/0) Auckland FC, Aotearoa New Zealand

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