Source: New Zealand ParliamentThe Finance and Expenditure is progressing its Inquiry into banking competition, in collaboration with members of the Primary Production Committee.
MIL OSI
Release: More Kiwis are hungry, homeless and out of work
Source: New Zealand Labour Party
Half of Pacific children sometimes going without food is just one of many heartbreaking lowlights in the Salvation Army’s annual State of the Nation report.
“This devastating report shows just how far this country has gone backwards under this coalition of chaos,” Labour’s social development spokesperson Carmel Sepuloni said.
“While Government parties scrap with each other, our kids are going hungry, more people are living in cars and our best and brightest are leaving for Australia.
“Across most of the report’s indicators in the past year, outcomes have either worsened or not changed for children and youth.
“Homelessness is on the rise as the Government kicks families out of emergency housing without knowing where they all go, and next year the number of Kainga Ora homes in Auckland will go backwards.
“Unemployment is on the rise, with about 1 in 10 Māori and Pacific people unemployed while the Government chooses to give billions to landlords and tobacco companies, instead of helping struggling families.
“The Government is shamelessly boasting about growth, but the only growth we’re seeing is in the numbers of hungry, homeless and unemployed New Zealanders,” Carmel Sepuloni said.
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Fisheries consultation must put sustainability before profit
Source: Green Party
The Green Party is urgently calling on the Government to prioritise long-term prosperity of our oceans in its consultation on the Fisheries Act.
“Our oceans are in a state of decline, continuing to put short-term profit before long-term sustainability will see the health of our ocean life wash away,” says Green Party’s Oceans and Fisheries spokesperson Teanau Tuiono.
“Minister Jones has stated ‘sustainability will always be the bottom line for fisheries management,’ but we have seen decisions from the Government completely contradict and undermine this. Today’s proposed changes seem to reward industry for overfishing, posing a significant threat to the sustainability and longevity of our oceans.
“If the Minister truly cared about sustainability he would ban bottom trawling and champion sustainable, adaptive fishing practices, which will increasingly be required in the context of climate change.
“If we want our oceans to thrive for generations to come we must commit to protecting more of our waters. We campaigned on doing exactly this by establishing a Healthy Oceans Act that would create a legally binding framework to protect at least 30 per cent of Aotearoa’s ocean by 2030.
“The crisis facing our ocean is growing more urgent by the day – and it is communities who depend on the moana for their livelihoods, including Māori and Pasifika communities, who will be impacted most of all. This Government needs to prioritise the sustainability of our oceans, which in turn prioritises long-term wellbeing of tangata whenua and tagata moana.
“It is high time the Government turned the tide on the exploitative and extractive fishing practices that have seen our ocean environment’s health decline and our fisheries be depleted.
“Our oceans are the lifeblood of Aotearoa. It is incumbent upon us to protect them, not only for their beauty, but for their essential role in sustaining life on our planet,” says Teanau Tuiono.
Serious crash, State Highway 6, Nelson
Source: New Zealand Police (District News)
State Highway 6 near Atawhai Drive, Nelson is currently closed following a crash.
The two-vehicle crash involving a car and a motorbike was reported just before 11:30am.
One person has been seriously injured.
Diversions are in place and motorists are advised to expect delays.
ENDS
Issued by Police Media Centre
Media Funding Reforms – Joint statement from NZ On Air and NZ Film Commission on media reform consultation
Source: NZ On Air and the NZ Film Commission (NZFC)
NZ On Air and the NZ Film Commission (NZFC) acknowledge the importance of ensuring public funding delivers the best possible outcomes for audiences and the wider sector.
The Ministry for Culture and Heritage has today released a Media Reform consultation document that includes a number of proposals, one of which is the streamlining of Crown content funders. (ref. https://govt.us7.list-manage.com/track/click?u=defea490d12b73c4ed8504b5b&id=e08a05fe0f&e=84ce785bf3 )
The agencies welcome the opportunity for widespread consultation on potential changes to the funding support provided across a range of media. In a challenging environment for the media sector, it is crucial that every dollar invested has the greatest possible impact. If change can enhance this, it is in the public interest to explore those options.
NZ On Air and NZFC look forward to working closely with the Ministry for Culture and Heritage to flesh out the opportunities and risks of the options proposed.
We acknowledge that during this consultation period there will be many questions and some uncertainty for both stakeholders and agency staff. We encourage all who have an interest in this mahi to engage with the consultation process so that your views, concerns or support for different options are heard.
While the consultation process and policy considerations continue, both agencies remain committed to delivering the best outcomes for audiences and the sector, and continuing to collaborate where it makes sense to do so.
Pharmac funding decision will increase medicines access
Source: New Zealand Government
Associate Health Minister with responsibility for Pharmac David Seymour, and Health Minister Simeon Brown welcome Pharmac’s decision to fund medicines for a further five health conditions, including cancers, from 1 March 2025.
“Pharmac operates independently, but it must work within the budget constraints set by the government,” Mr Seymour says.
“Today represents another step forward for cancer patients as the $604 million uplift from the government continues to facilitate access to new treatments.
“Pharmac continues to show what it is capable of when given the support it needs.
Pharmac has today announced their decision to fund medicines for a further five health conditions, including cancers, from 1 March 2025.
The funding will:
- Widen access to atezolizumab (Tecentriq) and bevacizumab (Vegzelma) for liver cancer that can’t be removed by surgery
- Widen access to bevacizumab (Vegzelma) for advanced ovarian cancer
- Fund a new brand of bevacizumab (Vegzelma)
- Fund lanreotide for neuroendocrine cancers, bowel blockages caused by cancer, and for a growth disorder called acromegaly.
“The early signs of Pharmac’s redirection remain positive, as expanding opportunities and access for patients and their families continue to be prioritised,” Mr Seymour says.
“I’m pleased to see Pharmac’s responsiveness to the voices of patients and their families by expanding access to more medicines for more groups. This decision reflects our commitment to a more adaptable and patient-centered approach.”
Mr Brown says delivering better and faster access to cancer care in New Zealand has been a focus of this Government, which is why it is one of our five key health targets, and is able to deliver because of the Government’s $604 million investment in new cancer medicines.
“As Minister of Health, I am focused on ensuring all New Zealanders have access to timely, quality healthcare. That means ensuring better access to more cancer medicines, better cancer management driven by our faster cancer treatment target, and earlier detection of cancers through screening programmes,” Mr Brown says.
“It is encouraging to see improvement in our efforts to provide faster cancer treatment, with more patients receiving their first treatment within 31 days in the first financial quarter than in the previous quarter and more cancer treatments available.”
“We want to build a world-class health system, and that requires world-class medicines,” Mr Seymour says.
Southern Lakes Sanctuary – Extensive predator trapping leads to 18 takahē released in the Rees Valley
Source: Southern Lakes Sanctuary
The 18 takahē released on to 18,000ha of leasehold land in the Rees Valley near Queenstown was made possible thanks to a major predator control effort three years in the making.
Yesterday’s release of the 18 endangered flightless birds marked a major milestone for Southern Lakes Sanctuary, which led the land preparation in partnership with the custodians of the Rees Valley Station, Temple Peak Station and Mt Earnslaw Station, and supported by the Department of Conservation (DOC), Fulton Hogan and Ngāi Tahu.
The land area – the largest leasehold site (not public conservation land) in NZ to accommodate wild takahē – has seen a huge number of pests removed since Southern Lakes Sanctuary (SLS) began working on this project in 2022. Prior to the environmental consortium’s arrival, there were just 139 traps in the valley. Since 2022, a total of 596 traps have removed 1947 predators, including feral cats, stoats and rats, and the traps have been checked 5722 times.
Southern Lakes Sanctuary project director Paul Kavanagh says preparing the site for takahē has been a core focus for his team, but it requires ongoing resources to ensure the land is protected.
“It’s deeply rewarding to see what these proactive measures can lead to, and we’re grateful to the Scott Family, who are excellent custodians of the land,” he says. “The upper Whakatipu catchment area has the potential to sustain a population of up to 500 birds, which could see more than double the national number in the Rees Valley alone within the next 10 years. However, to achieve this, we need to give these taonga the best fighting chance by continually decreasing predator numbers.”
Rees Valley Station owner Iris Scott says it is truly magnificent to have takahē wandering the hills now.
“We already have some great species here, but to re-introduce wildlife is an excellent goal,” she says. “In a way, it’s quite validating to know that we have maintained this environment in a state that it is still a habitat, which species from the past, can return to.”
The Rees Valley is a mix of alpine tussock grassland, which is the optimal landscape for the endemic species. Takahē forage on starchy leaf bases of tussock and tussock seeds. When snow is heavy during the winter months, the bird moves into forests and will feed on the underground rhizomes of the summer green fern.
It is estimated between 70 – 80 takahē will inhabit the Rees Valley by the end of 2025, with two future takahē releases scheduled for March and September.
DOC takahē recovery senior ranger Glen Greaves says the robust pest control in the Rees is reassuring.
“Southern Lakes Sanctuary’s work to reduce predator numbers is a significant factor behind why we chose the Rees,” he says. “Without SLS’ proactive work, we wouldn’t have takahē in the area.”
There are currently 528 takahē in New Zealand, with half of the population in the wild.
To sustain the low predator numbers, ongoing funding is required to ensure takahē are protected from the future threat of mammalian predators. SLS’ work in the Rees Valley has been supported by RealNZ, Impact100, Lotteries, Stout Trust, Patagonia, QLDC, CLT, AJ Hackett Bungy New Zealand and Heli Glenorchy.
“The Rees Valley, which borders Mt Aspiring National Park and UNESCO World Heritage Area, is a strategically important site with the potential for total predator elimination. By removing pests in this area, we’re not only protecting takahē, but more than 15 threatened species including kea, pīwauwau/rock wren, pekapeka/bat and braided river birds,” Kavanagh adds.
About Southern Lakes Sanctuary
The Southern Lakes Sanctuary Trust that oversees this project is a consortium of six local groups that collectively represent 84 community groups, landowners, and businesses, who in turn have been working for many years to protect and restore the declining biodiversity of the Southern Lakes region. The consortium relies on the mahi of hundreds of committed and dedicated volunteers, throughout the district. Their tireless work, which has been quietly ploughing on for many years, is the foundation upon which the Southern Lakes Sanctuary is built. Donations to the Trust can be made at https://southernlakessanctuary.org.nz/get-involved/
Minister to attend international security conference
Source: New Zealand Government
Defence Minister Judith Collins leaves today for Germany to attend the Munich Security Conference and hold a range of bilateral meetings.
“In these times of rising geopolitical tension, open dialogue and defence diplomacy are more important than ever,” Ms Collins says.
“I am looking forward to attending this annual conference, to meet face-to-face with my counterparts and to share New Zealand’s views on important security issues when I speak at it.”
During the three-day conference Ms Collins will take part in a panel discussion on Connected Theatres: Europe and Asia Security Spheres<, and hold a number of bilateral meetings with some key counterparts.
“We are an island nation that relies on a safe and interconnected world in order to prosper. The ongoing war in Ukraine, conflict in the Middle East and rising tensions in the Indo-Pacific are all matters which impact New Zealand,” Ms Collins says.
“We are committed to reinvigorating our security relationships, to playing our part, and working with like-minded partners to uphold the international rules-based system and democratic values that are fundamental to our security and prosperity.”
Ms Collins returns to New Zealand on 18 February.
Banking Sector – ASB half year result: Profit up 1% as economy moves toward recovery
Source: ASB
ASB has reported a cash net profit after tax (NPAT) of $716 million for the six months to 31 December 2024, an increase of 1% on the prior comparative period, as the economy moves towards recovery.
Statutory NPAT is $763 million, a 2% increase on the prior comparative period. The increase in profit reflects a 4% rise in operating income driven by increased lending volumes and favourable interest rate hedging, partially offset by an 8% rise in operating expenses. Home lending grew 5% and business and rural lending grew 2% on the prior comparative period. Margins across lending and deposits remained flat overall.
Profitability, measured by return on equity, fell 0.6% on the prior comparative period. The increase in profit was more than offset by additional capital requirements, with the total capital ratio rising 80 basis points to 16.3%. During the period there was additional shareholder investment of $700 million, bringing total shareholder investment in ASB to $11.4 billion, supporting growth in New Zealand.
Chief Executive Vittoria Shortt says ASB has supported its rural, personal and business customers through more than two years of extremely challenging economic conditions and is well positioned to continue backing them as the economy enters the early stages of recovery.
“New Zealand has been through the most difficult economic cycle in a generation, and we need to be patient with what looks like a gradual recovery. With lower interest rates and inflation providing some relief, and export incomes looking up for a number of sectors, our focus remains on supporting customers and providing capital for the next phase of economic growth.”
Opening doors for homeowners
ASB has cut its one-year fixed home loan rate by a total of 1.65% and six-month rate by 1.35% since July 2024.
“Falling interest rates bring very welcome relief for Kiwi borrowers, but we’re aware most are on fixed mortgages, and the benefit is yet to be felt by many households. Around 45% of our fixed home loan customers are expected to roll onto a lower rate by the end of June, and 70% by Christmas. Since April 2024, we’ve seen borrowers shift toward shorter terms, with close to half of our fixed mortgage customers choosing to fix for just six months.
“ASB helped more than 23,000 customers build, refinance, buy or move house over the half year, including close to 5,500 first home buyers, with around 3,600 using their ASB KiwiSaver for deposits.
“We’re backing the build of more warm, dry homes and making it easier for social housing providers to buy them. Since our Accelerated Housing Fund launched in November 2023, we’ve committed $165 million, supporting around 450 new homes for community, affordable and Māori housing.
“We are continuing to develop new ways to enable Māori to secure lending for housing on Māori land, including supporting papakāinga shared living projects. Through our Accelerated Housing Fund, we’ve now committed $34 million for Māori-led housing developments.”
Strengthening exports, innovation and New Zealand
“ASB provided more than $1 billion in lending to new business, rural and corporate customers over the half year, as we continue to back businesses to compete, scale and drive the growth that will underpin New Zealand’s economic recovery.
“Our $30 million Clean Tech fund and $20 million ASB ACCESS food and fibre fund are accelerating exporters and innovators ready to grow, but lacking capital to do so. We’re partnering with these emerging business at an early stage, finding new ways to approach lending and unlock their potential. Our food and fibre capability within ASB is also expanding to better support this key sector.
“Another area where ASB can make an impact on New Zealand’s future is supporting upgrades to infrastructure. We estimate $1 trillion in infrastructure investment is needed over the next 30 years, with energy one of the critical sectors requiring funding. Enabling investment in renewable energy will be an ongoing priority for us, as our research tells us we can help households, businesses and farmers to cut costs, reduce emissions and improve profitability,” says Vittoria.
Customers also benefit from rate relief
ASB has passed on Official Cash Rate cuts to more than 110,000 personal, business and rural customers holding variable loans. “The majority of our rural and business customers float some of their lending, so rate relief flows through quickly,” says Vittoria.
“Farmers have been under pressure in recent years, with depressed commodity prices and increased on farm costs, but conditions are improving for some rural sectors, particularly dairy.
“We expect dairy revenues to be around $5 billion higher for the 2024/2025 season compared with the season prior through a lift in milk price and production. Beef prices are also up year on year due to tight supply and the lower New Zealand dollar.
“Our dedicated rural team made 5,000 farm visits this half year to understand the issues and opportunities customers are seeing and to help grow their businesses for the future.”
Further $140 million to fight fraud, scams and financial crime
“We are continuing to invest heavily in people, technology and awareness initiatives to protect Kiwi against fraud, scams, and cyber and financial crime and expect to spend another $140 million this financial year.”
While the volume of online banking fraud and scam cases increased 16%, customer losses were down a third in the year to December 2024. ASB stopped $29 million in suspicious card transactions in 2024 and responded to 18,000 after-hours calls to its 0800 ASB FRAUD hotline in the first year of 24/7 operations. Across the half year ASB identified and took down around 100 fake ASB websites, to prevent further harm from bank impersonation, a significant source of scams and fraud.
ASB worked with the banking industry to introduce Confirmation of Payee, giving customers an extra layer of reassurance when making payments.
Supporting customers’ financial progress
“It’s positive to see customers continuing to save and invest. Our KiwiSaver and Investment funds have performed strongly and together generated more than $1 billion in investment returns for customers this half. The new ASB Aggressive Funds have delivered more than 20% investment returns for our KiwiSaver and Investment fund customers since they launched in November 2023.”[1]
More than 580,000 customers used ASB’s digital financial wellbeing tools such as Goal Planner and Support Finder in the past year. These features and ASB’s ongoing investment in leading digital services were recognised by CanStar, which awarded ASB Best Digital Bank for the third year in a row.
Delivering open banking
Vittoria says: “Our open banking infrastructure is in place and to encourage early-stage uptake we’re providing it free to third-party providers for the first 12 months. The security of customers’ information remains our top priority: as banking continues to evolve it is critical banks, fintechs, global tech companies and all of government work together towards a common goal of the safe and secure sharing of data.”
Financial overview
Compared to six months to June 2024 (cash basis)
- Total lending increased $2.6 billion or 2% to $112 billion
- Total customer deposits increased $2.3 billion or 3% to $85 billion
- Impairment losses on financial assets decreased $43 million or 72% to $17 million
Compared to the December 2023 prior comparative period (cash basis)
- Total lending increased $4.0 billion or 4% to $112 billion
- Total customer deposits increased $3.4 billion or 4% to $85 billion
- Impairment losses on financial assets increased $7 million or 70% to $17 million
- Net interest margin increased 9 basis points from 2.21% to 2.30%
- Cost to income ratio increased 140 basis points to 40.7%
Compared to December 2023 prior comparative period (stat basis)
- NPAT increased 2% to $763 million
- Return on equity decreased 60 basis points to 13.5%
[1] Returns are net of fees but before tax. Past performance is not an indicator of future performance, see ASB’s website for more information. Interests in the ASB KiwiSaver Scheme and ASB Investment Funds (Schemes) are issued by ASB Group Investments Limited a wholly owned subsidiary of ASB Bank Limited (ASB). For the Scheme’s product disclosure statements, see ASB’s website.
Benefit levels fail to keep families out of poverty
Source: Green Party
The Salvation Army’s State of the Nation report is a bleak indictment on the failure of Government to take steps to end poverty, with those on benefits, including their children, hit hardest.
“Poverty is a political choice this Government is choosing for our communities, intentionally exacerbating inequality and pushing thousands of families into hardship,” says the Green Party Spokesperson for Social Development, Ricardo Menéndez March.
“In this country, we have the means and resources to ensure all whānau have the basics for a good life and don’t fall through the gaps.
“Unfortunately half of all children living in material hardship are in benefit households, the very families that this Government is forcing into deeper poverty with policies that sanction and punish beneficiaries.
“The Salvation Army’s report also highlights the need to transform Work and Income’s culture to one where people are treated with trust and respect.
“People should not be declined hardship assistance when they are in need of help, and yet more people have been declined for this very critical support at a time when material hardship for children is increasing.
“This report also reinforces what people on the ground have been telling us for years: Māori and Pasifika people have been hardest hit by benefit sanctions, lack of access to adequate support, and ongoing discrimination by the very same agencies meant to support them.
“Poverty is not something we have to accept, we can choose to end it. The Green Party campaigned on ending poverty with our Income Guarantee that would ensure everyone has enough food to put on the table, no matter how tough times get,” says Ricardo Menéndez March.