Category: Radio New Zealand

Source: Radio New Zealand

Shoppers are being told to “swerve” any unreasonable surcharges they encounter this Christmas.

Since 1 December, new limits have applied to interchange fees, which a retailer’s bank pays to a shopper’s bank when they use a card.

This means savings for businesses but Consumer NZ spokesperson Jessica Walker told Midday Report her organisation was worried it was not always flowing through to savings for shoppers.

She said people should not pay more than 1.2 percent or 1.3 percent in surcharges now.

“Anything close to 2 percent is likely to be excessive. We want consumers to be on the lookout.”

She said New Zealand’s guidelines required retailers to offer shoppers a way to pay that did not incur a surcharge, such as cash or inserting or swiping a card. People who were worried they were going to be charged too high a surcharge should use a different payment method, she said.

“If you see a fee of 2 percent or more, swerve it.”

Walker said there were also cases where surcharges were not appropriately disclosed.

Shoppers should ask the retailer whether there would be a surcharge and how much it would be, she said.

Walker said Consumer was “always” getting complaints about excessive surcharges and had not seen a change in that yet.

Some businesses might not have updated their systems, she said.

“We’re wanting people to be aware of this. Businesses are going to be saving money. We understand the fees are now comparable with some of the lowest in the world so it’s only fair that the saving is passed on to consumers.”

Walker said estimates were that New Zealanders were paying anything from $45 million to $65m a year in excessive surcharges.

“Anything that can be done to protect consumers is a good thing. This is something we want to bring to the public consciousness if they are spending more over coming weeks and months.”

Meanwhile, it has been reported that retailers want to push the government to ease its plans for a hardline ban on in-store surcharges.

“Our members have been really unhappy about it. We’ve surveyed all our members and we’ve been talking about it for a while and they’re really clear that it’s not something that they support,” Retail NZ chief executive Carolyn Young said.

Young hoped to convince the government to compromise by capping surcharges instead of banning them entirely.

“What we’re trying to do is provide a solution that’s a middle ground that should appease everyone,” she said.

Her proposal was for surcharges on debit card transactions to be capped at 0.5 percent, and for credit cards to be capped at 1 percent.

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

Source: Radio New Zealand

Finance Minister Nicola Willis is doubling down on her “disciplined” plan for returning the books to surplus – despite new forecasts delaying it by yet another year.

And she took aim at those advocating for sharper spending cuts, such as the Taxpayers’ Union, warning that that prescription would deliver “human misery”.

“We are sticking to our strategy,” Willis said. “Not over-reacting to movements in the forecasts.”

Treasury’s half-year update, published on Tuesday, predicted a return to surplus in 2029/30 – a year later than its forecasts in May. That’s using the coalition’s new OBEGALx calculation which excludes ACC.

“I wouldn’t get too wound up about small changes,” Willis told reporters. She said she would continue to aim for a surplus by 2028/29.

“We are on target to return the books to surplus faster than Australia, the United Kingdom, Canada and many other advanced economies, while maintaining a prudent debt position.”

In her budget policy statement, released alongside Treasury’s update, Willis confirmed she would stick to her previously signalled operating allowance of $2.4 billion.

Existing pre-commitments meant that left just $1b a year on average for spending on new initiatives in next year’s Budget.

“Most agencies and ministers will need to plan to manage service pressures and other commitments with little or no additional funding,” Willis said.

Willis noted the downward revisions to forecasts were “relatively modest” but acknowledged they followed a similar trend over the past two years due to factors “outside the government’s direct control”.

The Taxpayers’ Union last week launched a campaign calling for Willis to cut public spending and debt more aggressively, accusing her of simply continuing the previous Labour government’s “sugar-rush economics”.

It prompted Willis to throw down the gauntlet, challenging its chair Ruth Richardson – a former finance minister – to debate her “anytime, anywhere” on the government’s finances.

The two have since been locked in negotiations over the conditions for the debate, including [

https://www.rnz.co.nz/news/political/581707/ruth-richardson-still-willing-to-debate-nicola-willis-after-dispute-over-venue time, location and moderator.]

Speaking on Tuesday, Willis said she had no update on that showdown but was still up for the debate.

“The offer is there. Thursday afternoon, I’m available. Friday morning, I’m available. I don’t really care who the moderator is. If they want to turn up, I’m ready.”

Willis explicitly nodded to the “shorter, sharper fiscal consolidation” being advocated by the Taxpayers’ Union.

She said while that would speed up the return to surplus, it could also hurt frontline public services and depress already-weak demand in a recovering economy.

Willis pointed out that the Taxpayers’ Union proposed scrapping all Working for Families tax credits, reducing recipients’ average weekly incomes by about $180.

She said beneficiaries and low-income families would bear the brunt of that change, delivering “a level of human misery” that she was not prepared to tolerate.

Willis said, on the other hand, Labour’s approach to spending was “reckless” and would further delay a return to surplus.

She said the government had delivered about $11b a year in savings during its term.

“Without this disciplined approach, this year’s deficit would be $25 billion and debt would be on track to blow out to 59 percent of GDP,” she said.

Willis promised to release more details to prove that: “We have the receipts.”

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

Source: Radio New Zealand

• Return to budget surplus delayed a year until 2030
• Deficits forecast to be bigger because slow economic recovery
• Growth forecast below 1 pct this year rising to more than 3 pct in 2027
• Debt expect to peak later and higher
• Finance Minister Willis says further spending discipline needed

The government’s financial position is looking worse for longer with a delay in getting to surplus and bigger deficits, according to new Treasury forecasts.

The Half Year Economic and Fiscal Update (HYEFU) showed the expected deficit for the year to next June would be $13.9 billion, $1.8bn worse than forecast in May, with no surplus now forecast until 2029/30.

The downward revisions reflected a slower economy, lower tax take, higher debt costs, but steady expenses.

Finance Minister Nicola Willis said the government was continuing to repair the books and the revisions should not be over emphasised.

“It’s the path to surplus that counts.”

She said the government was looking for the economy to get “fresh air in its lungs” and recover strongly from 2027 onwards which would boost the tax take.

Willis said the government would run a tight financial regime, with the amount of money available for new spending next year to remain capped at $2.4b, but it was determined to get back to surplus a year earlier than Treasury’s forecasts.

The Treasury forecasts generally showed an economy hitting a peak of growth at 3.4 percent in 2027 before easing back to around 2.5 percent for the next three years, while inflation eases back to around 2 percent over the forecast period, with unemployment also easing below 5 percent.

Treasury said it was basing its forecasts on a pick up in housing, an increase in migration, and continued solid export trade, but saw risks to its forecasts in both directions.

The positive risks included the economic recovery being quicker and stronger than anticipated, while the downside risks were that the recovery was softer as consumers and businesses remained cautious.

Net debt was forecast to peak at 46.9 percent of GDP in 2028/29 before edging lower from 2030.

The Debt Management Office reduced the borrowing programme by $5bn over the next two years, but increased it by $8bn in total in 2027 and 2028.

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