Empty Rotorua council-owned pensioner units spark concern

Source: Radio New Zealand

There are several vacant units at the Kahikatea St pensioner housing block.

There are several vacant units at the Kahikatea St pensioner housing block. Photo: Mathew Nash / LDR

A woman was left “shaken” after a prowler tried to enter her Rotorua pensioner flat amid reports of homeless people sleeping around empty council-owned units.

The incident happened early last Saturday on Kahikatea St and has sparked security fears.

Another resident, whose car has been stolen twice, told Local Democracy Reporting she felt “scared” and “isolated” as the only occupant of a block of four units.

More than a quarter of Rotorua’s pensioner housing is vacant.

Rotorua Lakes Council provides 152 pensioner housing units across six blocks in Ngongotahā, Fenton Park, Glenholme and Westbrook.

At present, 46 of these are vacant, with the number doubling since November 2023.

The Kahikatea St resident, who did not want to be named due to safety reasons, said she became aware of a “prowler” wearing a beanie standing on her doorstep.

The man, roughly 180cm tall, tried to enter the her home but woke her by triggering a makeshift security system, she said.

He fled when she jumped from bed to slam and lock her door.

Rawhiti Flats residents are concerned their properties keep getting broken into.

Rawhiti Flats residents are concerned their properties keep getting broken into. Photo: Stephen Parker / NZME

The resident said she “doesn’t scare easily” but had taken days to recover.

“It has left me a tad shaky.”

She is now taking security more seriously and ensuring doors and windows are locked at night.

She contacted the police.

She said that other residents told her homeless people were sleeping around the property’s empty pensioner units.

Council staff inspected the property. They found sleeping material near vacant units at the block’s Miller St end, she said.

She said it was “a bit disconcerting”, adding, “If they were occupied, it wouldn’t be a problem.”

Rotorua Police area manager of prevention, Inspector Phil Gillbanks,

Rotorua Police area manager of prevention, Inspector Phil Gillbanks. Photo: LDR/Supplied

Rotorua police Inspector Phil Gillbanks confirmed a report was made but there were “unfortunately no further lines of inquiry”.

Gillbanks was “not immediately aware of any particular instances of suspicious activity” at any of Rotorua’s other pensioner housing blocks.

“Our advice to anyone who notices suspicious activity, or activity that makes them feel unsafe, is to ensure your own safety first and call 111 immediately.”

Rotorua Lakes Council group manager of infrastructure and environment Stavros Michael confirmed some “personal items” were found behind wheelie bins nothing was found inside vacant units.

“The units are locked up and linked to a master system, and council staff or contractors are regularly at the pensioner unit complexes.”

A second resident told Local Democracy Reporting her car had been stolen twice and she felt “scared” and “isolated” as the only person in a block of four units.

In August, the council announced a new partnership with Ka Puta Ka Ora Emerge Aotearoa.

Other vacant units at Kahikatea St are in better condition but remain unoccupied.

Other vacant units at Kahikatea St are in better condition but remain unoccupied. Photo: Mathew Nash / LDR

Other vacant units at Kahikatea St are in better condition but remain unoccupied.

The community housing organisation will take over property management responsibilities, but the council will remain the landlord.

“Most vacant units required a complete refurbishment before they can be tenanted, and refurbishments occur as council budgets allow,” Michael said.

Upgrades “will need to align with any long-term redevelopment plans” as part of their Emerge partnership.

Under the partnership, residents will be required to sign a new tenancy agreement with Emerge, which includes raising their rent to market rates from February.

The agreement was initially scheduled to begin on October 1, but has been pushed back amid complaints regarding a lack of clarity on how rent rises will be covered.

The council and Emerge have assured residents the arrangement will allow for easier government help and that people solely dependent on superannuation would be “no worse off financially” for two years.

During last year’s Long-Term Plan process, the council agreed to invest $2.2m over the next two years in vacant homes to get them tenanted, but planned to reduce capital expenditure on pensioner housing to $590,000 by 2026-27.

LDR is local body journalism co-funded by RNZ and NZ On Air.

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Hipkins calls for more robust vetting after it failed to identify McSkimming’s behaviour

Source: Radio New Zealand

Jevon McSkimming

Former Deputy Police Commissioner Jevon McSkimming. RNZ / Mark Papalii

The Labour leader says it is “unacceptable” that former Former Deputy Police Commissioner Jevon McSkimming’s behaviour was not picked up in vetting for the role.

McSkimming pleaded guilty to possessing child sexual exploitation and bestiality material.

McSkimming performed Google searches on his police devices, primarily his work cellphone, to access pornographic and objectionable publications, over the course of four and a half years.

As prime minister, Chris Hipkins appointed McSkimming to the Deputy Police Commissioner role in 2023, following a recommendation from the then-Deputy Public Service Commissioner.

On Friday, Hipkins said McSkimming’s behaviour was unacceptable, and called for more robust vetting.

“I can say absolutely that with the advice that we were given in Jevon McSkimming’s appointment to the Deputy Police Commissioner role, none of this was identified during that process, and there was a vetting process that was undertaken there,” Hipkins said.

“The fact that there was vetting and it didn’t highlight this shows that the vetting was clearly inadequate.”

Labour leader Chris Hipkins made the announcement on Tuesday morning.

Labour leader Chris Hipkins. MARK PAPALII / RNZ

In late 2020, police made the decision that six-monthly internet usage monitoring reports, supplied to the senior leadership team, would cease. The summary of facts said McSkimming would have been aware of the change.

McSkimming’s first recorded search took place on 1 July 2020, with the last on 18 December 2024.

In total, there were 5354 searches, around a third of which were adult or pornographic.

A total of 2954 objectionable images were returned from 432 searches that were intended or were “highly likely” to return objectionable images.

Hipkins said it was a “shocking revelation” that McSkimming was using police equipment resources to view the material, and that it went undetected for so long.

“This was going on for four or five years, and it seemed to go below the radar within the police. That shouldn’t have been allowed to happen, so I think there’s a real tightening up that’s needed here.”

Following McSkimming’s guilty plea, Police Commissioner Richard Chambers said the moment he was advised of the circumstances he had taken it “seriously and acted on it.”

“As soon as I was made aware of the nature of the material found, I raised it with the Minister of Police as a conduct matter to allow him to consider Mr McSkimming’s position at the time as a statutory deputy commissioner.

“Mr McSkimming subsequently resigned from police. This conduct has no place in police.”

Chambers also ordered a rapid review of the controls and security of police devices.

“I moved quickly to remedy the gaps it identified and ordered auditing and monitoring of staff use of police devices.

“We will investigate any cases of staff found to have accessed inappropriate or objectionable material and will take action where conduct falls short of standard and expectations.”

On Thursday, police minister Mark Mitchell would not comment on specific matters in relation to a case waiting for sentencing.

“What I will say is that I am proud to support our thousands of sworn and non-sworn staff who perform acts of kindness, courage and service everyday. Individuals who do not uphold the values or display the integrity required to be a member of the NZ Police should be dealt with appropriately.”

Sexual Violence

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Education Minister Erica Stanford marks ministry 7/10, doubling previous rating

Source: Radio New Zealand

Education Minister Erica Stanford at Brooklyn School

Education Minister Erica Stanford. RNZ / Samuel Rillstone

The Education Ministry’s ministerial approval rating has more than doubled.

The ministry’s 2025 annual report shows Education Minister Erica Stanford rated the ministry seven out of 10 overall for its oversight of the education system, up from three in the previous report.

However, she gave the ministry only four for its policy advice, up from three.

Vocational education minister Penny Simmonds gave the ministry a rating of seven for its overall performance, up from six the preiovus year.

The report showed a big reduction in the ministry’s personnel costs.

The ministry spent $409 million on salaries and wages in 2024/25, down from $555m the previous year.

It spent $2m on consultants, down from $3m the previous year and $138m on contracts for services, down from $180m.

The report showed 52,926 children received specialist learning support in 2024/25 and wait times for support had improved, but remained long.

The average number of days children waited for support were 54 for behaviour support, 80 for communication, 11 for assistance from the ongoing-resourcing scheme, and 117 for the early intervention service.

It showed that only 47 percent of students excluded from a school were placed in another school within 40 days and only 75 percent within 75 days of their exclusion.

“Our regional staff are taking a more active role in following up cases where a learner is not returning to school in a timely manner. This work is being supported with revised guidelines for Stand downs, Suspensions, exclusions and expulsions due to be launched in late 2025,” the report said.

The report said the ministry provided buildings for more student places than forecast (126 percent of forecast), and delivered 92 percent of its building projects on budget and 93 percent on time.

It said half of the new and replacement builds in the 2024/25 year were standard or repeatable designs.

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Implementation of boot camp rushed, report concludes

Source: Radio New Zealand

An example of the military style uniform the youth in the pilot will be required to wear.

An example of the military style uniform the youths in the pilot were required to wear. RNZ / Rachel Helyer-Donaldson

The final evaluation for the government’s military-style boot camps found it was too small to provide any meaningful data, and its implementation was rushed.

The 82-page report says the pilot contributed to “meaningful and positive change” for the young people involved, while acknowledging the cohort was too small to draw firm conclusions. It also highlighted a range of barriers and challenges to achieving outcomes.

Those barriers included rushed implementation, challenging transitions, a lack of continuity around therapeutic support, a lack of capacity in the residential phase, and support for whānau began too late before the rangatahi returned home.

It also noted the efforts to include te ao Māori and te reo Māori were valued but “didn’t go far enough” given” all the MSA pilot participants were rangatahi Māori and several were fluent te reo Māori speakers.”

It wouldn’t publish the overall reoffending rate, but said the majority of the MSA cohort reoffended within two months of release into the community.

The pilot programme for a cohort of the country’s most serious offenders aged between 14 and 17 started at the end of July in 2024, and finished in August 2025. During the pilot participants ran away, one was kicked out of the programme and another was killed in a three-vehicle crash.

The military style academies for youth had also come under scrutiny by opposition parties for a lack of transparency, particularly the reoffending rate of the teenagers. Reducing reoffending was a primary goal for the boot camps.

Seven of the 10 young men involved in the controversial military-style academy (MSA) boot camp pilot reoffended, according to Oranga Tamariki.

The final report summarised evaluation findings for the full pilot and focused on planning, implementation, to what degree the MSAs contributed to meaningful change, and what key factors should be included in future programmes.

Information for the report built on interviews previously conducted, and data collection took place during the final three months of the community phase, between June and August this year.

The participants themselves were all male, all were Māori, and two also had Pacific and New Zealand European ancestry, most were 17 years old with two younger participants (14 and 15).

Six out of ten of the young people had ADHD either diagnosed or suspected. Three of those diagnosed were unmedicated. Other learning difficulties among the cohort also included auditory processing challenges for example.

Mental health issues were noted for several young people including difficulty regulating emotions, anxiety, suicidality and PTSD. Almost all had substance abuse noted in their assessments.

The findings

The report asked “to what degree did the MSA pilot contribute to meaningful change?”

It stated the pilot had been successful in “testing new ideas” and “generating learnings” relevant to other Youth Justice Residences and future programmes.

“Overall, evidence from qualitative interviews, clinical assessments and reoffending data indicate MSA has contributed to meaningful and positive change for rangatahi.

“Reductions in frequency and seriousness of offending were potential changes in the trajectories of MSA rangatahi and showed progress towards longer-term outcomes.”

It noted, however, longer term follow ups were required as well as a higher number of participants to “confirm conclusions about effectiveness.”

It also listed a range of barriers and challenges to achieving outcomes and a sustainable programme. These were:

  • Insufficient time for implementation: Short timeframes impacted the translation of the MSA design into implementation. Their impact was evident in kaimahi working to design the residential phase as they delivered it, the extraordinary effort required to deliver the residential phase and the pressure on kaimahi. Preparation for transition and whānau support began late which impacted the quality of transitions and preparation for rangatahi in the community. Timeframes also meant social workers were not involved in the residential phase or adequately prepared for their roles in supporting rangatahi in the community.
  • Transitions were a challenge: Transitions represented a large shift away from a highly structured environment with minimal risks to a less structured environment where risks like mates, social media, drugs and alcohol were present. Intensive support through the transition period addressed the risks but a step between the residential phase and community phase like supported living could further reduce risk.
  • Continuity of therapeutic support: Lack of continuity of therapeutic support also meant work focusing on criminogenic factors could not continue in the community phase. Continuation of therapeutic support was not clearly assigned to any role though Oranga Tamariki expected some support to be provided by mentors and social workers. However, capacity and clinical skills limited the extent mentors and social workers could provide therapeutic support.
  • Clinical capacity in the residential phase: The clinical team could not deliver the planned individual interventions in the residential phase due to insufficient capacity. Additional clinical capacity would also have strengthened transition planning.
  • Whānau intervention: The need to support whānau to provide a positive environment for rangatahi in the community was highlighted in the MSA design but support began too late in the residential phase for significant change to be made before rangatahi returned home.

The report acknowledged that allowing more time for the design could have “strengthened” the pilot implementation, and would have “allowed the design to be fully realised in implementation.”

RNZ revealed last year the pilot programme was still in its design phase the month before it was due to start.

“The short timeframes for design and implementation limited the extent some of the key elements of the MSA design could be fully realised including transition planning, preparation for the community

phase, and whānau support,” the report stated.

“Timeframes therefore also limited the extent the evaluation could reach conclusions about the MSA design and implementation.”

The report also said the cultural elements of the design could be “strengthened to better meet the needs of rangatahi Māori.”

Efforts were made to include te ao Māori and te reo Māori in the bootcamp, and those efforts were valued the report stated, but “they did not go far enough given all the MSA pilot participants were rangatahi Māori and several were fluent te reo Māori speakers”.

“Building MSA on te ao Māori rather than adding components in may have strengthened the fit with the MSA cohort and increased engagement.

“Rangitāne iwi, although experienced in youth justice support, were not included early in the design process. Involving tangata whenua in the design earlier would strengthen both cultural and other aspects of the programme and increase the focus on te ao Māori.”

RNZ revealed last year Oranga Tamariki had acknowledged it should have engaged with mana whenua earlier in the process.

On transitions, an “early challenge” were delays in preparation of living environments and the physical needs identified in transition plans.

The report indicated failure to provide the needs identified in the transition plans “eroded rangatahi trust as they felt like ‘broken promises’.” Stakeholders blamed a lack of funding availability.

Some aspects of unprepared plans were described as a lack of basic essentials.

“Rangatahi moving into independent living found that when they arrived their accommodation was not prepared with the necessities such as food for the first days, furniture, plates and cutlery. Internet connections took weeks to be arranged in some cases.”

The evaluation drew on data from psychometric assessments, interviews with kaimahi, rangatahi and whānau, and Oranga Tamariki analysis of Police proceedings data.

“All sources showed indications of positive change for the MSA cohort. Larger numbers and longer-term analysis are needed to draw stronger conclusions about effectiveness.”

The positive changes that were demonstrated included involvement in education, work experience and employment, as well as improved wairua (spiritual), physical and mental health, reconnection with whānau and stable living situtions.

ACT Party MP Karen Chhour

The Minister in charge, Karen Chhour RNZ / Angus Dreaver

Reoffending

The minister in charge, Karen Chhour, has consistently backed the pilot, saying it was about giving young people a chance. Chhour has also said future programmes would take on board what had worked well in the pilot, and learn from what hadn’t worked well.

Chhour rejected the notion reducing reoffending was a primary objective, saying the primary objective was to try stop young people entering the correction system.

Following the death of one participant in a car accident – and another escaping from custody, who then went on to allegedly reoffend alongside a third participant – Oranga Tamariki announced they would only provide public updates “at appropriate times through the community stage.”

Military-style academy programmes lead Janet Mays said, going into the pilot, Oranga Tamariki was “realistic about the likelihood of re-offending”.

“We have previously confirmed that seven of the participants re-offended to a threshold that required them to return to residence for a time. 

“One of our key aims was to see a reduction in the frequency and severity of offending by these rangatahi.”

The report stated the overall reoffending rate wouldn’t be included because “Oranga Tamariki protocol is to not cite any statistics that have the potential to identify a young person.”

However, the report noted the majority of the MSA cohort reoffended within two months of release into the community, but it said there were “positive differences” to the matched Supervision with Residence (SwR) in a Youth Justice Residence cohort, a group of rangatahi with similar characteristics and offending history.

Comparing the six-months before the residential phase to the six-months after release showed:

  • Time before reoffending increased: MSA rangatahi were slower to reoffend compared to the matched SwR cohort.
  • Seriousness of offending decreased: Two-thirds (67%) of MSA rangatahi reduced the maximum seriousness of their offending compared to only 22% of the matched SwR cohort.
  • Violent offending reduced: (including robbery-related offences and injury causing acts) by MSA rangatahi reduced by two-thirds (67%) in the six-months after exiting residence compared to the six-months before entering residence.
  • Combined view of reoffending results: Five (59%) of the nine rangatahi on the MSA pilot reduced the frequency, total seriousness and maximum seriousness of their offending compared to only two (22%) of the nine matched SwR cohort.

In terms of the reoffending itself, some was considered minor with “some more serious.” Many of the teenagers had described how hard they tried to stay out.

“I tried to change but f**k it’s hard … I tried to stay out, but it didn’t last very long,” one said.

“I always think I’m not going to get caught. I know I can stop. I was a dumb c**t then, when I was 13. I’ve matured since then. Everyone always regrets what they do. I do a little bit. Got some money, clothes, shopping. I don’t get the adrenaline rush anymore. I get paranoid,” another said.

A small number of the cohort didn’t return to a Youth Justice Residence, and this was seen as an achievement for the MSA.

Finally, the report acknowledged the “stable cohort” of rangatahi in the MSA had contributed to safety in the residential phase and supported the therapeutic focus. It said there were no fights between rangatahi or with the workers in the residential phase.

“This result was markedly different from other Youth Justice Residences where physical conflict between rangatahi or with kaimahi were regular occurrences.”

MSA programmes lead Janet Mays said the pilot aimed to help a “small group of serious and persistent young offenders turn their lives around, by giving them increased structure and support through an intensive intervention. “

The “full wraparound programme” combined therapeutic care, intensive mentorship and whānau engagement. 

“The young people were encouraged to develop new skills, and move into education, training or employment.”

Minister responds

Chhour said the findings from the independent report showed “why it was an important and worthwhile pilot”.

She said the reality for young serious offenders was a “pathway to adult Corrections” and a lifetime in and out of incarceration, “unless they are given a chance to turn their lives around and take that chance”.

“This programme has been that chance.”

She said the data was clear that two of the nine young people had not reoffended, and the majority of the nine young people were currently in the community. She said they re-offended during the pilot phase, but had “not done so since.”

“All of the nine young people expressed a desire to not reoffend and have been taught greater coping skills and provided with mentorship.”

Chhour said the government was reviewing the pilot while it was operating, and had taken on “learnings” from its successes.

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Former Te Pāti Māori staffer Eru Kapa-Kingi doubles down on leadership shortcomings

Source: Radio New Zealand

Eru Kapa-Kingi speaks at Ako Ararau ki Koroneihana.

Eru Kapa-Kingi claims the party had an executive and leadership model that “thinks it’s beyond critique”. Image courtesy of Te Tari o te Kiingitanga

Former Te Pāti Māori staffer Eru Kapa-Kingi has taken to social media to defend his criticism of party leadership, saying – despite knowing he’d be “dragged through the media” – he stands by claims that it had become “extremely toxic” and “veered completely” off path.

He says Te Pāti Māori supporters “deserve better” and party president John Tamihere is “not the guy to get us to Hawaiki hou” – the future those supporters imagine – calling again for new leadership and executive model.

Amid weeks of turmoil, party president John Tamihere acknowledged there was “a process in play” for the two MPs co-leader Rawiri Waititi called “rogue” to be expelled from the party, while a petition called for Tamihere to stand down, with allegations of intimidation and financial mismanagement.

Kapa-Kingi – the son of the Te Tai Tokerau MP Mariameno Kapa-Kingi – said he knew Tamihere in particular would use “lies” and “half-truths” to paint him as an “entitled, spoiled individual, who’s just after status or power or whatever”.

“Even though I knew that this was all going to play out in this way, I didn’t care and I still don’t care,” he said. “There might be some kind of reputational damage, but I’ve never really given any shit about that.”

He doubled down on his crtique of the party, saying he understood how Tamihere could “use power to try and silence people”. He described seeing “firsthand” how those behaviours played out, while working for the party.

“I saw how he [Tamihere] and the leaders would speak to other MPs, how they would treat kaimahi [workers], staffers, many of whom approached me, privately and in confidence, sharing their experiences of feeling absolutely unsafe in their work environment, because of this power dynamic that favoured the leaders, the executive, heavily.”

He claimed there was no opportunity for “genuine accountability for the toxic behaviors and environment in that office space”.

He said the party had an executive and leadership model that “thinks it’s beyond critique”, “beyond accountability”, and “beyond improving and learning”.

Kapa-Kingi said he’d been asked by many for the “receipts”, after his initial accusations about a dictatorship model in the party in October and repeated they were not his stories to tell.

He pointed to the late-night email as an example of evidence: “If you’re looking for receipts, just look at what’s happened in the last few weeks, directly against me.”

He described Tamihere, the executive and the co-leaders pressing “the green light” on an email containing information about him.

“Saying that I assaulted a security guard, that I was dismissed from my job in my mum’s office because of that, that my mum paid me 120k through her budget and, because of that, she overspent her budget.

“Every single one of those things is a lie, and it was curated and written in an email, and framed in a way where it looked legit, but it wasn’t.”

He said the email was sent to more than 500 registered members of the party and the party then tried to “play dumb” over the fact the email ended up in mainstream media.

Kapa-Kingi followed up by saying, even if the information was true, what relevance did that have to him accusing the party of having a “toxic leadership environment”.

He said it was an effort to deflect “away from the truth” and not address the internal issues, “which proves my point that this is a leadership beyond accountability, beyond integrity and beyond honesty, and we deserve better”.

“John Tamihere is not the guy that’s going to get us to a Hawaii Hou.”

He called for a “genuine resetting” of the kaupapa, new leadership, a new executive model and a re-empowering of the regions.

“All of their power in the last little while has been concentrated in a handful of people in the national executive and this is the result of it.”

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Iwi leaders want hui next week for Te Pāti Māori factions

Source: Radio New Zealand

Te Pāti Māori co-leaders Rawiri Waititi and Debbie Ngarewa-Packer.

Te Pāti Māori co-leaders Rawiri Waititi and Debbie Ngarewa-Packer. RNZ / Russell Palmer

The National Iwi Chairs Forum says it is working towards getting both factions of Te Pāti Māori to a hui in Wellington next week.

The leadership body has been liaising with the party’s leadership and estranged MPs Mariameno Kapa-Kinga and Tākuta Ferris in an effort to stop the party splitting up.

Ngāti Kahungunu chair Bayden Barber met with co-leaders Debbie Ngarewa Packer and Rawiri Waititi on Tuesday, and said he had received a commitment from them to meet the other faction.

Ngāti Kahungunu chair Bayden Barber speaking at the re-opening of the Napier to Hastings rail line after it was closed earlier in 2023 due to Cyclone Gabrielle.

Ngāti Kahungunu chair Bayden Barber. RNZ / Kate Green

He sat down with Ferris on Thursday.

“He agreed to meet at a marae here in Wellington, so that was pleasing.”

Kapa-Kingi was not available for the meeting, he said.

“She’s always been quite firm that she wanted to meet with her people in the north, Tai Tokerau, so I’m assuming that was the reason, but there was no official reason given.”

“We hope to be able to be in contact with Mariameno as well but we’ll just have to wait and see.”

Barber confirmed party president John Tamihere had not been at either of these meetings, but the Forum had had “a number of conversations” with him on the phone.

A potential meeting next week was still to be confirmed, but Barber was hopeful the two factions could patch things up.

“We’re always optimistic until told otherwise, but it was a very constructive meeting with Tākuta on Thursday, as was our meeting with the party leaders on Tuesday.

“That’s pleasing, but until we’re actually at a hui together, there’s still a lot of work to be done.”

Te Pāti Māori general manager Kiri Tamihere-Waititi, daughter of John Tamihere and wife of Rawiri Waititi, posted several monologues on Instagram about the conflict.

Barber said iwi leaders had asked both sides to stop the online tit-for-tat.

“One of the things we did talk about with party leaders on Tuesday and with Tākuta on Thursday was to put a moratorium or a ceasefire on social media barbs.

“My feeling was that there was agreement to it. That was my feeling, without having it in writing, that having goes at each other online is not helpful for finding a resolution.”

Barber said it would not be good if the party split up.

“If that happens, that’s not the outcome we’re looking for. We’re looking to reconcile everything. Reconciliation is the best outcome.

“Having a split totara log is only good for the fire. That whakataukī, the proverb, that’s been spoken of a number of times in these conversations.

“Twelve months out from an election, to have a party split, that’s going to be a tough challenge.”

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Are hard hats a work perk?

Source: Radio New Zealand

Close-up helmet in the construction site

New Inland Revenue guidance suggests hard hats could be a taxable work perk. Photo: 123RF

New Inland Revenue guidance suggesting hard hats could be a taxable work perk could confuse some employers, one tax expert says.

IRD has released an update on when fringe benefit tax (FBT) exemptions apply to employee benefits provided for health and safety reasons.

Robyn Walker, tax partner at Deloitte, said there had been some confusion about how wide that exemption would be.

Fringe benefit tax generally does not apply when the benefit being provided is related to an employee’s health and safety, aimed at managing health and safety risks, and would be excluded by an ‘on-premises exemption’ if it was provided at work.

Exemptions might apply to things like an ergonomic desk for someone working at home, or flu vaccinations.

Work clothing has a separate exemption, but only if it is “distinctive”, such as a uniform with an employer’s name on it.

Walker said IR had made it clear that it did not think protective clothing would always fit into that exemption.

In one example it gave, a road maintenance contracting business providing workers with hard hats, high-vis clothes, safety glasses and ear muffs would find they were not exempt from FBT.

Walker said it was unlikely anyone would think a hard hat required for work was an employee benefit.

She said FBT was probably not being paid on these at present.

But it seemed IRD had assumed they were a benefit, and then were working out whether an exemption would apply, rather than discussing whether there was a benefit in the first place, she said.

“It could potentially push people to just incur additional costs having to brand things in order to be absolutely clear that there is no FBT payable on something where FBT shouldn’t be payable to start with.”

IRD said it was also its view that there was a benefit to an employee when their employer paid their medical costs after a workplace accident.

Walker said that was strange.

“While good health is obviously viewed as a benefit to an individual, in the situation of an employer assisting to put right a workplace accident to reinstate an employee’s health, this does not seem like a scenario where FBT should be levied. Again, if it is concluded there is a benefit, a law change is warranted.

“If I chopped off my hand in some sort of terrible accounting photocopier accident I would expect that, if it’s due to a fault of the photocopier that I’ve lost my finger or whatever it is then the employer should be paying my medical cost to rectify that.

“Is there a benefit where your health has been negatively impacted by a workplace accident to restore your health? It’s hard to say there’s a benefit if I have my finger chopped off and have it put back on. I start with 10 fingers, I go down to nine and I end up with 10. I’m not actually better off in that scenario.

“FBT should apply when the employer is doing something for the employee which saves them from having to incur their own private expenditure on something. And so I would say I shouldn’t have to pay to get my finger attached because my fingers were all attached to start with and if I’m going to work on a construction site, I should be provided with everything that I required in order to go home at the end of the day without concussion, with all my fingers, my toes haven’t been sliced off.

“Working in a freezing works, I should be able to have some gloves provided and there shouldn’t be any tax on that. I’m not saving myself any private expenditure by having the employer provide what is required to do the job.”

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Callaghan Innovation redundancies cost taxpayers more than $10m – report

Source: Radio New Zealand

Callaghan Innovation sign in Lower Hutt.

Many of the scientists and engineers made redundant have been snapped up by organisations overseas. Photo: RNZ / Rebekah Parsons-King

Callaghan Innovation’s shutdown has so far cost taxpayers more than $10 million in redundancy payouts for 209 roles lost, according to recently published documents.

The crown-owned science and innovation entity has been a casualty of the Government’s overhaul of the science sector, which has also seen the merging of Crown Research Institutes into Public Research Organisations and a newly established advanced technology institute.

While some functions of Callaghan Innovation were retained, other parts have been wound up over the past year, with all funding expected to end by mid-2027.

Documents released to the Public Service Association (PSA) under the Official Information Act (OIA) revealed Callaghan Innovation’s dissolution has cost $10.69m in redundancies since November 2023.

Callaghan Innovation has confirmed the numbers in the OIA, made public by the PSA on Friday, but offered no further comment.

The OIA documents showed 36 redundancies in the 2023/24 financial year cost $2.87m, the axing of 162 roles in 2024/2025 cost $5.72m and so far this year, $2.1m has been spent with the loss of 11 roles.

More payouts were expected, as roles continued to be disestablished into 2026.

They said the future impact and total cost of Callaghan’s closure was unknown, as “redundancies continue to be processed on a regular basis”.

The documents said Callaghan had spent $68,913 since October 2023 on external consultants advising on restructures – the figure also included other legal advisory services.

The OIA showed roles at Callaghan had dropped from 367 to 158 – a reduction of 57 percent – over two years, with more than 60 jobs axed in February, followed by a proposal to cut a further 67 in April.

PSA national secretary Fleur Fitzsimons said the OIA had revealed the “staggering cost” of layoffs.

“This is an obscene waste of money from a government, which claims to want to spend taxpayer money wisely,” she said.

“More importantly, this is a critical loss of expert scientists and researchers, who had more to give New Zealand. It will set New Zealand back for years.”

According to the PSA, the 209 job cuts at Callaghan Innovation included the chief scientist, among 114 scientists and researchers, and contributed to the loss of 650 research roles in the public sector – a figure that the Science Minister’s office could not confirm.

Ben Wylie-van Eerd, a former Callaghan scientist and union delegate who was made redundant this year, said the country had lost talented scientists and engineers.

“Many of my colleagues have moved overseas, and have been snapped up quickly by organisations in Europe and Australia, where their skills are valued.

“Sadly, I don’t think they’ll be looking to come back any time soon.”

In response to the OIA, Science Minister Shane Reti said New Zealand’s science system was undergoing its most significant reform in more than three decades, which would make it more effective and create opportunities long-term.

“To better support and incentivise innovation for future economic growth, the government made the decision to disestablish Callaghan Innovation, and redistribute its key functions to other parts of the science, innovation and technology system.”

He said Callaghan Innovation was spread thinly across conflicting functions and “struggled to work to a clear, focused purpose”, tasked with delivering grants, advice, technical services and research, as well as innovation support for businesses.

Reti said the government had invested $70m for artificial intelligence research, and $71m for future materials and magnet technology, as part of the new Institute of Advanced Technology, and $42m for a new biodiscovery platform.

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

Sealord confirms 48 jobs to go as parts of Nelson operations become seasonal

Source: Radio New Zealand

Sealord's Nelson site.

Photo: Sealord

Sealord has confirmed 48 job losses as the company makes parts of its Nelson operations seasonal.

Sealord last month announced that it was closing its coated fish factory, resulting in the loss of 79 jobs.

The company originally proposed cutting a further 59 jobs under plans to operate its wetfish and by-products factories and fresh fish trawler during the hoki season from May to September, instead of year-round.

On Friday Sealord confirmed the final number of job losses was 48, saying staff were told in mid-October.

The wetfish factory will close in December and reopen in May.

In September chief executive Doug Paulin said the move to seasonal operations meant the company could retain most of its Nelson-based operations, including cold and dry store and office-based support roles, instead of closing the site completely.

“In total we would retain 81 permanent jobs and 400 seasonal roles and save over 90 percent of the economic benefits to the region,” he said.

Paulin said export products produced at the Nelson wetfish factory were loss-making every month, except in hoki season.

The loss had been exacerbated with recent price drops at the same time as sharp rises in costs and falling volumes of fish for harvesting and processing outside of hoki season.

The region has been rocked by job cuts in recent months, with Carter Holt Harvey telling staff in August it would shut its Eves Valley Sawmill, resulting in the loss of 142 jobs.

In September Griffin’s Snacks told staff it planned to close the Nelson factory that produces Proper Crisps, with operations moving to Auckland from late 2027, affecting 47 staff and Māori food and beverage company Kono announced it would wind down brewing operations at Motueka-based craft brewery Hop Federation from October with the loss of five jobs.

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Treasury warns Crown’s strong balance sheet likely to decline if policy unchanged

Source: Radio New Zealand

State Services Commissioner Iain Rennie

Treasury secretary Iain Rennie. Photo: RNZ

The Treasury has warned the strength of the Crown’s balance sheet is likely to deteriorate if policy settings are not changed.

Its 2025 Investment Statement found liabilities were forecast to rise 33 percent by 2029 to $504 billion, as the debt grows to fund investment spending and operating deficits.

The increase in liabilities was also projected to outpace the increase in assets, with net worth expected to fall 10 percent to $172b.

As at June 2024, assets on the Crown’s balance sheet totalled $571b, and liabilities were $380b.

The ‘social’ portfolio spread $314b worth of assets across 141 entities such as transport, housing, education, and health.

$99b of assets were in the ‘commercial’ portfolio, which included “services related to strategic policy objectives, in a commercial manner,” such as Air New Zealand and the gentailers.

The ‘financial’ portfolio, which included entities like the Reserve Bank, ACC, and the Superannuation Fund, held $158b of assets, but also $280b of liabilities, accounting for 74 percent of the total.

The Treasury said there were ageing assets in the social portfolio that were becoming unfit for purpose, the commercial portfolio’s entities did not always meet performance expectations, and the financial portfolio held assets and liabilities facing different risks.

The balance sheet had more than doubled in size over the last decade, but assets and liabilities were projected to grow at a slower rate over the next ten years.

Since the last investment statement in 2022, assets had increased by 30 percent ($132b). Treasury said that was driven mainly by growth in physical assets, and more than half of that growth was down to revaluations, largely due to inflationary pressures.

Liabilities had increased by 35 percent ($98b), to fund investment and operating deficits.

Treasury secretary Iain Rennie said as demands on public services and investment had changed, the balance sheet had become increasingly important, and challenging to manage.

“The Investment Statement shows we need to improve our asset management – to get more value from existing investments, ensure we’re investing in the right assets, and improve our risk management and understanding.”

The Treasury suggested changes to balance sheet management in order to maintain New Zealand’s credit rating, and prepare the Crown for any shocks.

The suggestions are largely procedural, mostly focusing on “better” or “consistent” information and monitoring.

This included changes to decision-making processes, such as more consistent approaches to long-term planning across agencies, better business case development, and improving the information of assets, liabilities, and risks.

The Treasury also called for better asset management, saying some assets were underperforming, poorly maintained, and lacking quality information. It suggested more regular reviews of assets, clarifying the purpose of government ownership for each commercial entity, and adopting a more formal capital recycling programme.

“A formal capital recycling programme may be useful where government reallocates or reinvests capital from existing assets or infrastructure projects into new opportunities or projects to meet policy

objectives,” the report said.

“In this way assets that are no longer required or have limited ownership value are not retained. This can avoid the often increased operating and maintenance costs from ongoing ownership.”

The statement also said the Crown could manage the risks on its balance sheet better by centralising the management, and stress testing the combined fiscal balance sheet.

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