Data released today by Statistics New Zealand showed the urgent problem facing Aotearoa New Zealand in tackling child poverty, said NZCTU Te Kauae Kaimahi Economist Craig Renney.
“Child poverty is estimated by Stats NZ on three measures – before housing costs, after housing costs, and material poverty. All three central estimates of poverty rose last year. This is the second year in a row in which the trend is heading in the wrong direction. We need action now to turn this trend around,” said Renney.
“1 in 7 children are estimated to be living in households where they experience material poverty – that means 156,000 kids are missing out on essentials and living in cold and damp housing. That is the highest number since 2015.
“Child poverty is a prison that holds too many children in Aotearoa back. Unless we tackle this problem now, we will be paying the social costs over generations.
“Child poverty is not distributed equally. 1 in 4 tamariki Māori live in material poverty. 1 in 3 Pacific children live in material poverty. Where a household has a disabled person, 1 in 4 children in those households are in material poverty. For all these groups the number of children in material poverty has grown over the past two years.
“The Government is now missing all three of its child poverty targets. The Government’s key response to child poverty has been to water down the targets, reduce the value of welfare support, and cut the real value of the minimum wage.
“There is no plan to help these families living in poverty, instead they are being threatened with further sanctions and penalties.
“The Government is urgently talking up the need for an economic plan, but it doesn’t seem as if it shares the same sense of urgency for child poverty. Children deserve better than this Government’s indifference,” said Renney.
BNZ today announced it is cutting its advertised 6-month fixed home loan rate to 5.89% p.a, effective from tomorrow.
BNZ Executive Customer Products and Services Karna Luke says over the past six months, we’ve seen a spike in customers choosing shorter terms with approximately 60% of customers choosing to float or fix for 6-month terms.
“With more customers looking to fix for shorter terms, BNZ is actively looking for every opportunity to meet customer demand.”
“This change will be welcome news for many of our customers who are looking to take advantage of the falling interest rate environment.”
BNZ’s new advertised 6-month rate is the joint-lowest of the five major banks* and will be available for new and existing customers to select online and in the BNZ app from tomorrow.
Lower interest rates have also sparked more home loan activity, with more potential buyers making enquiries and seeking home loan pre-approval.
“For all our home loan customers, our in-house Home Loan Partners provide personalised service and can deliver a 24-hour decision on new home loan applications once we’ve received all required information and completed responsible lending checks,” says Mr Luke.
*As at 3pm, 18 February 2025.
The changes to BNZ’s 6-month fixed home loan rate will be effective from 19 February 2025 for both new and existing customers.
All home loans are subject to our lending criteria (including minimum equity requirements), terms and fees. An establishment fee of up to $150 may apply.
Data released today by Statistics NZ shows that unemployment rose to 5.1%, with 33,000 more people out of work than last year said NZCTU Te Kauae Kaimahi Economist Craig Renney. “The latest data shows that employment fell in Aotearoa at its fastest rate since the GFC. Unemployment rose in 8 out 12 regions. 2.5m fewer hours were worked last year. There is a real and growing problem in the labour market.”
This data should be a wakeup call to the Government about the economy. Renney said “Unemployment is a lagging indicator and is forecast to continue to keep increasing. Nothing in this data suggests that these forecasts are going to change. The number of people who want more work and can’t get it is at its highest rate since COVID.
“Ahead of Waitangi Day, we should note that unemployment for Māori is nearly twice the rate of the general population at 9.2%. 5,700 more Māori are out of work than last year. Pacific Peoples unemployment is 9.6%, and unemployment for young people (15-24 year olds) is up 13,800 annually. The NEET (Not in Education, Employment or Training) rate was last this high, on a comparable basis, in 2012 according to Stats NZ.” Renney said.
“Wage increases are slowing, with nearly half (46%) of working people getting a pay rise less than CPI. With the minimum wage rising by only 1.5% in April, this is another trend likely to continue. With part-time work growing, but full-time work declining, maintaining incomes in households is going to be increasingly difficult.
“Right now, there is no plan for the economy. No plan for the labour market. The economy is in sharp recession. Unemployment is rising. It’s time for a plan for New Zealand. We are losing record numbers of people overseas, and without that these numbers would likely have been much worse,” said Renney.
Data released by Statistics New Zealand today showed that inflation remains unchanged at 2.2%, defying expectations of further declines, said NZCTU Te Kauae Kaimahi Economist Craig Renney.
“While inflation holding steady might sound like good news, the reality is that prices for the basics—like rent, energy, and insurance—are still rising. The removal of the Auckland Regional Fuel Tax helped ease petrol prices, but without that reduction, inflation could have gone even higher. Workers and families are still struggling with rising costs for everyday essentials,” said Renney.
“The recent drops in inflation have been helped by falls in the price of vehicle fuels – with the average price of 91 falling from $2.81 to $2.55. If we remove petrol from the CPI the overall inflation rose by 2.7%.
“Tradable inflation overall also turned, falling by less than last quarter. Tradeable inflation tends to lead the overall direction of inflation in the future”.
“Many working people aren’t feeling the benefits of lower inflation. Rental inflation was nearly twice general inflation at 4.2%, showing that landlord tax breaks aren’t leading to lower rental prices.
“While stable overall inflation is welcome, the prices for things that people can’t avoid are rising more quickly. Insurance prices rose by 11.2% annually. Local authority rates rose 12%. Household energy costs are rising by 5%. These are all eating into already tight household budgets.
“Last month the government agreed to increase the minimum wage by 1.5% in April. Inflation is currently at 2.2% and seems to have reached its floor. For workers on the minimum wage this looks increasingly like another year in which they will take real terms pay cuts. The Government needs to respond to this data by lifting the minimum wage in real terms,” said Renney.
An act of generosity during the Great Depression is still supporting people today. In 1936, banker William Hartley Hargreaves left £12,000 to establish a trust for the families of his colleagues at the Bank of New Zealand – a fund that has grown to over $1.45 million today.
Originally created to support “indigent widows of bank officers” – it has evolved through High Court decisions in 1989 and 2023 to help BNZ staff members and their families facing financial hardship.
“The trust’s journey reflects the changing face of New Zealand society,” says Frances Ronowicz, BNZ’s Head of Social Impact.
“What began as support for widows during the Depression era now helps our people and their families in tough times. The trust has provided over $320,000 in assistance to staff and their dependents in the past decade alone.”
“Recent grants have helped colleagues access urgent family support, cope with serious health challenges including mobility needs, and rebuild their lives during personal crises. The trust also assists with essential costs during unexpected life events that can create financial strain.”
The trust’s founder, William Hartley Hargreaves, was a prominent figure in colonial New Zealand, managing BNZ branches from Thames to Temuka after joining in 1867.
Deeply connected to the communities he served, his retirement in 1913 drew what local papers called “perhaps the largest gathering of citizens ever accommodated in the Borough Council.”
Through careful management and investment, the trust has grown into a sustainable $1.45 million fund that generates ongoing returns to support future generations. This ensures the trust can continue providing assistance without depleting its capital base.
“Hargreaves’ gift has left a lasting legacy, and we’re proud to continue administering the trust in his name, providing support to our people in times of need,” says Ronowicz.
Data released by Statistics New Zealand today showed a significant slowdown in the economy over the past six months, with GDP falling by 1% in September, and 1.1% in June said CTU Economist Craig Renney.
“The data shows that the size of the economy in GDP terms is now smaller than at any time since June 2022. GDP per capita has now fallen for 8 consecutive quarters, with the fall accelerating in the past six months. The economic situation is even worse than we thought, and that means even more hardship for workers heading into Christmas,” said Renney.
“With unemployment being a lagging indicator, the pain for working people in terms of unemployment is likely to be worse than previously thought.
“Revisions to data have increased the strength of the economy in the past, which have removed the recessions recorded over the past few years. We now know that the economy was growing consistently during 2023 on an annual basis, and we have only had one recession since COVID – which is now.
“The data demonstrated that GDP fell across 11 of 16 sectors last quarter. Output fell across both goods producing sectors and service industries. Business Investment fell -2.5% last quarter, with large falls in plant, machinery & equipment. Falling business investment is likely to mean lower productivity growth in the future, and fewer jobs.
“This isn’t a wake-up call for the government, it’s an alarm. Excluding COVID lockdowns, this is the fastest fall in production GDP over six months since June 1991. Government spending has fallen at the fastest rate since 1992 and the budgets of Ruth Richardson. The economy isn’t back on track, its derailed.
“We have just had a budget where the Government’s fiscal plans have clearly been shown to have failed. Unemployment is rising – and will likely rise more.
“The economy is now showing the impact of the Government’s policies – it’s been in office for a year. It’s clear that it’s time for a new approach, or we will all suffer the devastating economic consequences,” said Renney.
New data released by the Treasury shows that the economic policies of this Government have made things worse in the year since they took office, said NZCTU Economist Craig Renney.
“Our fiscal indicators are all heading in the wrong direction – with higher levels of debt, a higher deficit, and deeper cuts programmed in the future. Our economic indicators are all heading in the wrong direction, with lower economic growth and higher unemployment. The Government’s policies are hurting working people, and they’re not working for Aotearoa,” said Renney.
“The data showed that the economy is growing more slowly than forecast just six months ago. Next year GDP growth was forecast to 1.7% at Budget, now its 0.5%. GDP is $20bn lower by 2028. Unemployment is higher in every year of the forecast – with 20,000 more people on jobseekers support by 2026. OBEGAL absent the new tricks of accounting – never comes back into surplus across the forecast period. Net Core Crown Debt increases across the forecast period by $58bn.
“The Budget Policy Statement signals that we are in for more cuts in the next few budgets. There is only $700m available at the next Budget to pay for everything outside health. That bakes in likely cuts to public investment and to the public sector workforce every year for the next few years. All to pay for the tax cuts that have now passed. The folly of that decision is now being uncovered.
“These books paint a picture of a government without a plan. The only solution the Minister of Finance is planning is to double down on an already failing strategy. These are the Government’s books; responsibility shouldn’t be passed on. Working people and communities across Aotearoa will suffer if we don’t change track,” said Renney.
Iain Rennie, CNZM Secretary and Chief Executive to the Treasury
Dear Secretary,
Undue restrictions on restricted briefings
This week, the Treasury barred representatives from four organisations, including the New Zealand Council of Trade Unions Te Kauae Kaimahi, from attending the restricted briefing for the Half-Year Economic and Fiscal Update. We had been formally invited, by the Treasury, to attend the briefing. After the CTU replied to the invitation, Treasury appears to have changed its rules for attendance. Our application to attend was then rejected.
The Treasury now states that “Representatives from peak bodies, professional bodies, unions, universities, industry bodies, industry information services, and advocacy groups, among others, would no longer be allowed to attend”. That means bodies such as Business New Zealand would not be able to attend, nor would organisations such as Local Government New Zealand, Child Poverty Action Group, Aotearoa 350, or Tax Justice Aotearoa. Alongside the CTU these are all national organisations with a strong and legitimate interest in understanding how the government is investing its resources.
Treasury said the purpose of restricted briefings is to provide participants with time to consider materials before public release to enable more accurate reporting and to assist “in transparency and accountability to the public”. The Treasury has therefore concluded that other groups, such as the CTU, no longer have a time-sensitive need for the materials. This despite the fact that attendance by bodies such as these has been the norm for many years without incident.
We must object to this interpretation in the strongest terms. Groups – including the CTU – affected by the new guidelines regularly provide their analysis of Budget figures to their own readers, who number in the hundreds of thousands, and provide expert analysis to journalists attending the restricted briefings. Both functions assist in transparency and accountability to the public, which is the purpose of restricted briefings.
How does it promote the interests of “transparency and accountability to the public” or assist public understanding when external organisations such as Bloomberg will be able to tell foreign investors what’s in the Government books, and provide considered analysis, faster than organisations representing New Zealand workers, business, and taxpayers?
The CTU alone represents 27 Trade Unions with more than 300,000 members. They have a keen interest in understanding the financial situation of the Government – many of whose employment and income rely on the Crown Accounts. Timely analysis and communications from the CTU are essential. Could you please explain why their need for information is less important than that of financial markets?
The lock-up is also an opportunity to engage with the Minister of Finance and the Secretary of the Treasury. To ask questions about the contents of the report, and to have answers to questions heard by media. There is no other opportunity to do that outside of this lock-up. Why should banks be able to ask the Minister questions about economic growth, but other groups find themselves shut out?
Lock-ups do not just bring analysts into a room with access to advance copy of the fiscal documents. Attendees at restricted briefings can also ask Treasury officials how complex estimates were generated. Being able to ask officials about the estimates helps analysts provide better-informed reports with fewer errors. It also means that analysts who misrepresent the figures have little excuse for their own errors.
We sympathise with Treasury’s predicament. When more people wish to attend restricted briefings than can be accommodated, it has to choose who to disappoint. But there has never been a HYEFU briefing where the room was full, and where those who attended couldn’t be seated. This is not a capacity issue.
Democracy and public scrutiny are not supported by locking social partners and non-financial institutions out of the lock-up. This is a retrograde step, which appears to have nothing to do with capacity, security, or with a desire to ensure that complex documents such as the HYEFU are communicated well to audiences across New Zealand.
The CTU strongly urges the Treasury to reconsider these guidelines and your decision to rescind our access. We look forward to a timely response to this letter.
BNZ today announced an investment in New Zealand payments technology company Centrapay to enhance digital payments capabilities across both organisations.
It builds on the established partnership between the organisations, which has led to the development of Payap – New Zealand’s first digital wallet and Point of Sale app compatible with all New Zealand banks. Payap is due to be launched in March next year.
Centrapay CEO Greg Beehre will continue to lead the company.
“With BNZ’s support, we can go further, faster. This enables us to continue delivering for our clients and partners while accelerating growth and development,” Beehre says.
BNZ CEO Dan Huggins says the investment builds on BNZ’s existing payments and open banking infrastructure.
“Payment technology continues to evolve rapidly, and our partnership with Centrapay helps further position us to serve our customers’ changing needs.”
“Unemployment is forecast to remain elevated until the end of 2025 and isn’t expected to fall back to its pre-recession lows within the forecast period. Without a plan to reduce it, we are choosing a permanently higher unemployment rate in New Zealand. It’s no wonder so many Kiwis are emigrating overseas,” said NZCTU Te Kauae Kaimahi Economist Craig Renney.
Today’s announcement by the Reserve Bank shows that the economy will remain weak going into 2025, and that unemployment will continue to climb, said Renney. “The forecasts show that employment is likely to remain below 2023 levels until December 2025 – while the labour force grows by 28,000 during that period. Over the past year economic growth was effectively zero.”
“Business investment won’t hit 2023 levels until 2027. Residential investment is still falling. Government spending falls and returns to its current level in 2026. There is no engine of economic growth except private spending, which is weak.”
“Many people will celebrate the fall in interest rates, and the hope that this will bring financial relief. But this data also shows that the labour market is in for the long-haul. Yet there is no plan to help towns like Tokoroa or Timaru deal with the closure of large employers. It’s time for a different track.” Renny said.
