Funding holes in National’s policies deeply worrying for workers – E tū

Source: Etu Union

E tū, the biggest private sector union in Aotearoa New Zealand, is deeply concerned about the prospect of a National-led Government’s ability to fund essential services and infrastructure, after figures released today show their policies create a large fiscal shortfall.

The figures have been released by the New Zealand Council of Trade Unions, using all the information the National Party have published about their own policy costings to date, as well as data from Treasury and the Reserve Bank. It reveals a shortfall of $3.3bn to $5.2bn, numbers which do not even include major spending promises that remain uncosted by National.

E tū Assistant National Secretary, Rachel Mackintosh, says the National Party must front up now about how they would pay for their election policies.

“National’s promises are expensive, and the party simply cannot make it work without new revenue or significant cuts,” Rachel says.

“The Council of Trade Unions have had to carry out this work because National are still not being upfront with the public about their financial plan. It should really be National’s own responsibility to explain to the voting public how they are going to balance the books. The closer we get to Election Day, the more worrying it is that the National Party can’t present a credible explanation for how they’ll pay for their promises.”

Rachel notes that other parties have been able to present their numbers – Labour through Budget 2023, and the Greens and ACT with their published alternative budgets.

“With National not even able to make their own announced policies stack up financially, we are deeply worried about what this would mean for continued funding of key services. The money must come from somewhere, and so adequately funding things like health and education is at serious risk.”

E tū Co-President, Muriel Tunoho, has worked in community health for decades. She is particularly concerned about what the budget hole would mean for health funding.

“National underfunding the health system is a tale as old as time,” Muriel says.

“People working in the community health spaces are particularly worried because we’ve been forgotten about before. While we have made some gains under Labour, there is still so much more we need to make the health system work for everyone, especially our most marginalised communities.

“Not funding health properly means real hardship for families in Aotearoa. Both the workers and the service users suffer. I have seen poor health outcomes result in all sorts of huge challenges for whānau, it’s heartbreaking.

“E tū members in health need pay equity, safer staffing, and many more improvements. These things require a proper boost to health funding, which we have been campaigning for. Seeing that National can’t even fund their headline election policies is a clear sign that community health would be neglected again.

“Quite simply, National need to turn their policy programme around so that it helps everyone, not just the wealthy few. Now is not the time for tax cuts for the most well-off. It’s the time for serious investment in the communities of Aotearoa.”

ENDS

Police use new legislation in response to Manawatu gang tensions

Source: New Zealand Police (National News)

To be attributed to Inspector Ross Grantham, Manawatū Area Commander

Police have escalated their efforts to target gang anti-social and violent behaviour in the Manawatū, invoking new legislation to disrupt gang activity.

Today Police have arrested three men with gang links in relation to possession of firearms and ammunition after a vehicle was stopped in Feilding this morning around 3.20am. All three men will be appearing before the Palmerston North District Court facing a variety of charges.

Police have invoked the use of the Criminal Activity Intervention Legislation Act (CAIL) 2023 in the Manawatū area providing police with search warrant powers to search vehicles and the occupants of vehicles of suspected gang members and to seize their weapons during times of conflict. The new powers became law in April 2023 and while focussed specifically on gangs, we intend to use them prudently.

Extra staff have been brought into the area and are providing high-visibility reassurance patrols to the Palmerston North community after what is believed to be a gang-related shooting led to the death of a man at a Croydon Road address on Sunday afternoon.

Our community can expect to see Police continuing to respond to any unlawful behaviour by anyone who believes that they are above the law. 
We are sending a clear message to all gangs and the wider community that Police do not tolerate unlawful behaviour and will work hard to hold people to account.

People can report any incident in which their safety or that of others is at risk by calling 111 immediately. If it’s happened in the past, please contact 105.

You can also share information anonymously through Crime Stoppers on 0800 555 111.

ENDS

Issued by Police Media Centre

Consumer confidence softens despite rates pause

Source: ANZ statements

Consumer confidence decreased by 3.4 points last week. Confidence was down across all the mainland states – New South Wales, Victoria, Queensland, South Australia and Western Australia.

‘Weekly inflation expectations’ decreased 0.1 percetnage points to 5.4 per cent. The idexes’ four-week moving average was unchanged at 5.5 per cent.

‘Current financial conditions’ plunged 6.9 points, while ‘future financial conditions’ dropped 9.6 points. This follows two weeks of strong gains in both financial conditions.

‘Current economic conditions’ softened 0.7 points after three straight weeks of gains. ‘Future economic conditions’ were up 2.1 points, rising above 90. ‘Time to buy a major household item’ fell 2 points after a 5.5 point gain the week before.

Project staff recognised at National Awards for Women in Construction

Source: New Zealand Transport Agency

Two staff on the Te Ahu a Turanga: Manawatū Tararua Highway project have gained recognition at this year’s National Association of Women in Construction (NAWIC) Awards.

Project Earthworks Manager Clare Miller and Graduate Environmental Advisor Oriwa Curtis were finalists at the awards in the Excellence in Leadership (Site Based) and Student categories respectively.

The national awards celebrate women working in the New Zealand construction sector, with a record 238 entries being received for the 2023 event.

Both Clare and Oriwa – who are employed by Waikanae-based Goodmans Contractors – were “highly commended” in their categories, each receiving a trophy in recognition of the achievement.

A civil engineer by trade, Mrs Miller is charged with ensuring the project’s earthworks target of 6 million cubic metres is achieved. With more than 5.8 million cubic metres of earth moved to date, the project is in a good position to achieve the target this year.

Judges praised Mrs Miller for her leadership qualities and the respect she had across all levels of the project:

“[Clare] is exceptional in her ability to get people to work for her, and the team wants to perform for her. She’s a fantastic boss and has real leadership qualities.”

Ms Curtis started on the project as an Environmental labourer and was quickly offered the Graduate Advisor role, which involves resource consent compliance work, environmental monitoring and planning. Ms Curtis balances her work with studying for a Bachelor of Applied Science at the Open Polytechnic. 

The judges were impressed with Oriwa’s “grit, ability to learn on the job, problem solve and take initiative”:

“While on her academic and work journey, she is also raising her young daughter and working alongside iwi and volunteering with rangatahi from Dannevirke High School. At their request, Oriwa is to work with kaimahi and kaumātua to be the recipient of mātauranga, passed down to the younger generation through the tikanga of oral tradition and place-based learning.”

Te Ahu a Turanga project spokesman, Grant Kauri, congratulated both women on their awards, and praised their ongoing contributions to the project.

“Clare and Oriwa are both fantastic members of the Te Ahu a Turanga team, and they are representative of the many talented wahine working on our project and on construction projects across New Zealand.”

Mr Kauri said events like the NAWIC Awards were important for making construction a more accessible and attractive career pathway for women.

“We acknowledge that at 15 per cent of the construction workforce, women remain under-represented in the sector. As we have clearly seen from the calibre of entrants to the NAWIC Awards, they have a huge contribution to make to the industry.”

Women make up about 16 per cent of staff working on the Te Ahu a Turanga: Manawatū Tararua Highway.

Director for Goodmans Contractors, Marianne Archer, said the company was proud of its staff members’ acknowledgments at the awards.

“Both Clare and Oriwa are thoroughly deserving of the recognition given to them. They are extremely hard workers, leading our people by example, and inspiring all those around them. Goodmans is extremely grateful to have them as a part of our amazing team.”

For more information on the awards, go to www.nawic.org.nz/nawic-excellence-awards(external link)

Earthworks Manager Clare Miller, left, and Graduate Environmental Advisor Oriwa Curtis, right, both work on the Te Ahu a Turanga: Manawatū Tararua Highway project.

Boosts for regional parks and community assets as $50 million invested in Tāmaki Makaurau

Source: Auckland Council

Regional parks, growth-related community assets, sports fields, cemeteries and public art are among a range of assets for Aucklanders that have had almost $50 million of funding confirmed through Auckland Council’s Capital Investment Work Programme. The funding for financial year 2023/2024 was approved by councillors in the Planning, Environment and Parks Committee on Thursday.

“The funding is a timely and significant capital investment for Tāmaki Makaurau and will help the region continue to regenerate following on from the extreme weather events earlier this year,” says Councillor Richard Hills, Chair of the Planning, Environment and Parks Committee. 

“This funding will have a positive and tangible effect on our public facilities and is necessary to ensure our environmental, cultural and community taonga are protected and enjoyed now and into the future.”  

Close to $7 million has been invested in regional parks’ infrastructure. This includes upgrading community facilities, car parks, walking tracks and public toilets. 

“Aucklanders love our regional parks, their recreation opportunities and the biodiversity they protect, this investment will help improve the experience for our residents and enhance the experience of visitors at regional parks across Tāmaki Makaurau.” 

The Auckland Botanic Gardens has been allocated just over $2 million for extensive upgrades including to the irrigation systems and water features. 

“Many residents and visitors to the city really enjoy a day out at the Auckland Botanic Gardens and this investment will make visiting this iconic taonga even more enjoyable,” Councillor Angela Dalton, Deputy Chair of the Planning, Environment and Parks Committee says. 

“Many residents and visitors to the city really enjoy a day out at the Auckland Botanic Gardens and this investment will make visiting this iconic taonga even more enjoyable,” Councillor Angela Dalton, Deputy Chair of the Planning, Environment and Parks Committee says. 

The Botanic Gardens funding is part of close to $16.4 million of the total Capital Investment Work Programme budget allocated to the Regional Renewals and Development work programme and will also fund regional parks, farming, holiday parks, cemeteries and Pukekawa/Auckland Domain. 

Meanwhile, $950,000 will go to slips prevention and remediation which will help areas already affected and build resilience for the future.   


Investment highlights
 


Auckland Botanic Gardens
 

A number of small-scale assets will be renewed such as nursery irrigation, shade house facilities, CCTV, some paths, interpretation signage and car park lighting. Funding allocation: $2.2 million.  

Pukekawa / Auckland Domain 

The sports field drainage and wastewater pipe network will be upgraded, and the path network will be upgraded and extended.  Funding allocation: $1.4 million.  

Regional parks 

Some key projects that will benefit from $6.7 million funding include improving Long Bay water supply and rebuilding the workshop at Shakespear Regional Park. Work will also be done at other sites including Atiu Creek and the Hunua Ranges. Funding allocation: $6.5 million. 

Local parks and sports field development 

New growth-related parks including Te Kori Scott Point (Hobsonville), Ray Fausett Reserve (Franklin) and a new neighbourhood park in Ōrewa. There are also major upgrades to East View Reserve (Glen Innes), David Lange Reserve (Māngere), Colin Maiden Park (Stonefields) and Riverhead War Memorial Park. Funding allocation: $10.9 million. 

Slip prevention and remediation 

Significant work will be carried out to protect the Parnell Baths site and access from rock fall. Work will also be carried out to construct a retaining wall to protect the fence and boundary line at Crawford Reserve (Howick). Funding allocation: $950,000. 

Public art 

The archway of Waharoa in Aotea Square will undergo remedial work.  A 3D laser scan will mean a digital record can be kept. New collaborative work is planned with Circuit to create six new digital media art works in locations around Auckland. 

Rāhui will affect 2023 whitebait season in Hawke’s Bay

Source: Department of Conservation

Date:  08 August 2023

The hapū and marae of Heretaunga Tamatea Settlement Trust have also placed rāhui in their rohe, as shown on the map below.

These rāhui are supported by Ngāti Kahungunu Iwi Incorporated, DOC and Hawke’s Bay Regional Council. 

The constant re-sedimentation of habitat and spawning grounds post-Cyclone Gabrielle continues to threaten the ability of whitebait species to rebuild stocks for future sustainability.

As well as affecting whitebait, intensive damage across all catchments is a hazard for river users and includes riverbank instability and exceptionally turbid waters.

DOC’s Hawke’s Bay Operations Manager Tryphena Cracknell says recovery work is underway at some sites.

“The rāhui should come as no surprise to our community and fishers, due to the state of the rivers and banks post-Cyclone Gabrielle,” says Tryphena.

“In fact, many members of our fishing community have raised concerns about the upcoming season with us and are in support of this rāhui.”

This decision is based on the need to recover the environment post-Cyclone Gabrielle, and to maintain and enhance a sustainable fishery amidst the significant sediment and environmental disruption to spawning.

All parties involved agree this rāhui is the best way forward for fisheries and the communities.

About rāhui

A rāhui (physical and spiritual protection mechanism) is a tool to manage human activity around a site where there has been loss of life. It sets a temporary prohibition on activities around the rāhui area and limits access for that period.

By placing a rāhui over the area it:

  • acknowledges the death and is a way to express our sympathy to the whānau of the deceased
  • ensures that safety mechanisms are in place
  • rovides time for tapu (sacredness) to dissipate following the death.

Contact

First of its kind climate fund to back 100% renewable electricity

Source: New Zealand Government

  • Government and BlackRock work together on first of its kind climate infrastructure fund in New Zealand to unlock investment to support 100% renewable electricity generation. 
  • Goal of fund is to support New Zealand to become one of the first countries in the world to reach 100% renewable electricity
  • Fund will provide access to greater pools of capital for New Zealand businesses, supporting the creation of highly skilled local jobs
  • Fund to accelerate green energy options like solar, wind, green hydrogen and battery storage to fuel a low emissions economy

The Government has worked with BlackRock, one of the world’s largest investors in climate infrastructure and clean technology, to launch a $2 billion fund with the goal of making New Zealand one of the first countries in the world to reach 100% renewable electricity.

Prime Minister Chris Hipkins announced the first of its kind New Zealand net zero Fund alongside Minister of Energy and Resources Megan Woods and representatives of BlackRock in Auckland today.

“This is a first of its kind fund in the country that demonstrates the huge economic potential of New Zealand being a climate leader and our goal of generating 100% renewable electricity,” Chris Hipkins said.

“It proves again that we can grow our economy while we lower emissions. This fund is a massive opportunity for New Zealand innovators to develop and grow companies. 

“I’m absolutely stoked about what this means for Kiwi ingenuity in renewable energy; it shows that our ambitious climate targets have the world’s attention, and that they are good for the climate, good for the economy, and will help create highly skilled jobs.

“With countries around the world experiencing the impacts of climate change on a daily basis, it’s never been more urgent to invest in technology that will help address the climate crisis, and New Zealand is well positioned to be a home for that investment.

“Cyclone Gabrielle and the Auckland floods were reminders we must speed up our own climate action, and the fund will super charge investments in clean technology that might otherwise not have happened.

“This is a game changer for the clean tech sector and another example of the pragmatic and practical steps the Government is taking to accelerate climate action while growing our economy,” Chris Hipkins said.

“This fund will accelerate New Zealand’s emissions reductions, with a particular focus on our path to 100% renewable electricity, enabling our businesses to access greater pools of capital to develop and grow,” Megan Woods said.

“With record levels of renewable electricity generation in recent years, New Zealand is well-positioned to be one of the first countries in the world to deliver a fully renewable electricity system.

“Investors in the green economy can see our potential and recognise our commitment to climate commitments and goals, such as our banning of further offshore oil and gas exploration.

“New Zealand is now an investment magnet for capital that will unlock technology such as battery storage, wind and solar generation, green hydrogen production and more electric vehicle chargers across New Zealand.

“We’ve already making significant progress on New Zealand’s decarbonisation transition, partnering with the likes of NZ Steel and Fonterra to reduce emissions while retaining jobs here in New Zealand.

“The New Zealand net zero Fund will look to crowd in investment from Crown companies and entities, including superannuation funds, and private sector funds to accelerate New Zealand’s transition to 100% renewable electricity. 

“This arrangement means we will get there faster, with opportunities for local investment in a low emissions economy. That will be a significant selling point for New Zealand businesses as consumers demand more sustainable products and services.

“The projects funded through investment in the New Zealand net zero Fund will not only decarbonise our energy use, but will also create highly-skilled jobs here in New Zealand, and opportunities to grow New Zealand companies,” Megan Woods said.

Reserve Bank – First RBNZ life insurance stress test shows industry well placed to withstand severe shocks

Source: Reserve Bank of New Zealand

08 August 2023 – The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) has published the results of its first life insurance industry stress test (LIIST). The 2022/23 LIIST demonstrates the largest insurers in the sector are well placed to withstand severe economic and insurance shocks, while continuing to pay out on policy claims.

Deputy Governor Christian Hawkesby says stress tests assess how the finance sector can cope with hypothetical scenarios that are severe, but plausible.

Previous stress tests have involved banks or general insurance providers, but this is our inaugural stress test for life insurers. Stress tests assess entities’ resilience by demonstrating whether they have enough capital to withstand extreme shocks. They also indicate potential impacts on the broader financial system.

“This is the first time we have run a stress test with New Zealand’s life insurance industry and the results were reassuring. Participating insurers were able to pay out substantial claims from policy holders and remain solvent during a hypothetical three-year scenario which included long COVID, a new pandemic and a period of severe economic stress.”

“Stress tests play an important role in helping build understanding of how particular risks may impact financial stability as well as building capability across industry to manage these risks. Insurers recognised the value of participating in the stress test and we identified areas of good practice from some insurers that could be considered by others. We appreciate the engagement of participants and look forward to building on this experience in 2024, when we carry out the next life insurance Industry stress test.” Mr Hawkesby says.

The 5 largest New Zealand-incorporated life insurers with a market share of 75% of premiums participated – AIA, Asteron Life, Cigna, Fidelity Life and Partners Life. The stress test scenario was developed by the RBNZ in consultation with participating insurers.

The 2022 LIIST scenario and results

The stress test scenario was developed by RBNZ in consultation with participating insurers.
The scenario covered 3 years from 2022 to 2025 and consisted of a combined economic and insurance shock.
The economic shock consisted of worsening economic conditions with high inflation and rising interest rates. The insurance shock combined long COVID, a new pandemic and higher mortality and morbidity rates. Both shocks included ratings downgrades for reinsurers.
Insurers used their own models to estimate the effects of the scenario on their financial conditions. They submitted detailed results for profit, balance sheet and solvency before and after any mitigating actions.
Insurers are required to maintain a minimum amount of solvency capital as determined by applying the Reserve Bank solvency standards. The solvency margin (SM) was used to measure the resilience of insurers to these shocks. The stress results were benchmarked against a base case submission which excluded the shocks.
Insurers overall were well positioned to withstand the economic shock, despite some recording losses on their long-term bond portfolios. However, the insurance shock had a much greater impact due to higher claims expenses, higher lapse rates, and lower new business volumes.
All insurers were able to remain solvent. However, the combined effects of the scenario caused the solvency margin of some insurers to fall outside their own risk appetite and triggered mitigating actions. These actions included cost reductions, premium increases, reductions to commissions and changes to reinsurance arrangements.

More information

Outcomes of our first Life Insurance Industry Stress Test (LIIST) Bulletin https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=7b8e6ff4da&e=f3c68946f8
Stress testing regulated entities https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=8d55d8d9f1&e=f3c68946f8

Road blocked – State Highway 29A, Mangatapu Bridge

Source: New Zealand Police (District News)

Police are responding to a two-vehicle crash on State Highway 29A at Mangatapu Bridge, near Truman Lane.

The crash was reported around 9:40am.

There are no serious injuries.

The road is blocked while it is being cleared.

Motorists are advised to take an alternate route and expect delays.

ENDS

Issued by Police Media Centre