Source: Health and Disability Commissioner
Health Investigation – Taranaki DHB breaches Code for failing to provide appropriate standard of service to a pregnant woman with diabetes C20HDC00772
Source: Health and Disability Commissioner
Health Investigation – Counties Manukau DHB breached the Code for delays in woman’s eye treatment 21HDC00511
Source: Health and Disability Commissioner
Business and Tech News – MinterEllisonRuddWatts advises leading tax tech company, DataTorque, on PE investment by Simplicity
Source: MinterEllisonRuddWatts
Economy News – What drives rents in New Zealand? A housing technical working group research paper – Reserve Bank
7 August 2023 – Today Te Tai Ōhanga, Te Tūāpapa Kura Kāinga and Te Pūtea Matua are publishing a joint paper that provides an assessment of the key drivers of rents in New Zealand.
The analysis in this paper was carried out by Alan Bentley, Enzo Cassino and Nam Ngo through the Housing Technical Working Group (HTWG). The HTWG includes staff from the 3 agencies.
Over the last 20 years, wage rises and the relative supply and demand of homes were the 2 key drivers of rents at both the national and regional level, the paper shows.
Research paper — What drives rents in New Zealand? National and regional analysis
Read the research paper on the Treasury website
“When the effect of other factors is excluded, a 1% increase in nominal wages leads directly to a 1% increase in new tenancy rents,” the paper’s authors say. New tenancy rents respond more quickly to market changes than rents paid by sitting tenants.
“A 1% increase in the average number of people in each home, an indicator of relative supply and demand, leads to a 1.5% increase in rents at the national level.” This link between rents and the number of people in each home could occur for several reasons, such as, that rents tend to rise when there are not enough houses to go around, or that renters tend to share accommodation more when rents rise.
The study found rents increase when mortgage interest rates rise, but the impact is quite small. “This is consistent with previous analysis done by the Housing Technical Working Group on the impact of land supply restrictions.” This is because when land supply is highly constrained, we would expect financial factors, such as interest rates, to have a greater impact on house prices than rents.
Understanding these key drivers of rents is important to monitor and assess the balance of supply and demand in the housing market, enhance government policy for renters, improve the accuracy of house price forecasts, and identify potential hot spots at the regional level.
The share of New Zealand households who pay rent has increased significantly during the past 3 decades, rising from about 23% in 1991 to 32% in 2018. The number of rented homes rose from about 290,000 in 1996 to 530,000 in 2018.
“Rents matter since low-income households have little discretion over how much they must spend to put a roof over their heads,” the authors say. “Renters typically earn less than homeowners, spend a greater share of their pay on housing, and are less wealthy.”
More information
Between 2003 Q3 and 2022 Q2, rents increased broadly in line with wages, but faster than inflation.
New tenancy rents increased a cumulative 83%
Average hourly earnings up 87%
Consumer prices (CPI) rose 54% and,
House prices 267%
The HTWG identified these differing growth rates, amongst other things, as evidence to support their conclusions presented in the Assessment of the housing system with insights from the Hamilton-Waikato area on the Treasury’s website. (HTWG, 2022).
Key findings from the paper
Understanding the key drivers of rents is important to monitor and assess the balance of supply and demand in the housing market, improve the accuracy of house price forecasts, and identify potential hot spots at the regional level.
Wage inflation and relative supply and demand of dwellings (measured by people per dwelling) are the 2 key drivers of rental inflation for new tenancies at the national level.
The impact of mortgage interest rates on rents is positive but quite small. This is consistent with previous analysis done by the Housing Technical Working Group on the impact of land supply restrictions.
The identified key drivers are robust to local circumstances, although unobserved region-specific factors can dampen or magnify the effects in particular regions.
Why we did this research
New Zealand rental prices have received growing attention as the proportion of people who rent has been increasing since the early 1990s. This paper aims to provide an initial framework to improve our understanding of the factors that impact housing rentals in New Zealand.
This analysis is useful for several reasons. Firstly, rents provide a better signal of the balance of supply and demand for dwellings than house prices do. This is because rent prices do not reflect expectations for future gains as house prices do.
Secondly, providing a better understanding of rent drivers can lead to better government policy as renters typically pay a larger proportion of their incomes on housing costs than owner occupiers and so they are more vulnerable to large movements in housing costs.
Thirdly, forecasting rents can also improve the accuracy of house price forecasts, as they are one of the factors that influence house prices.
Finally, the research helps us to test theories of how land and housing markets operate.
Business News – Plenty of opportunities for growth as five established offices in the Bay of Plenty and Hauraki region join Raine & Horne
Highlights
- Raine & Horne, an Australasian real estate super brand, is expanding its presence in New Zealand during its 140th year.
- Five well-established offices in the Bay of Plenty and Hauraki region, led by experienced principals Neville Ruske and Paul Billinghurst, have joined Raine & Horne.
- According to CoreLogic data, the expansion comes at a time of increased buyer activity in the Bay of Plenty real estate market. The addition of these offices strategically located in Tauranga, Mount Maunganui, Katikati, Waihi, and Waihi Beach further strengthens Raine & Horne’s position on New Zealand’s North Island.
Led by experienced principals Neville Ruske and Paul Billinghurst, the latest Raine & Horne group additions are strategically located in Tauranga, Mount Maunganui, Katikati, Waihi, and Waihi Beach.
According to the latest data from CoreLogic[i], the expansion coincides with a resurgence in buyer activity in the Bay of Plenty’s real estate markets. The super brand, established on 23 May 1883 and remains 100% family-owned, is taking advantage of this opportunity.
Plenty of real estate experience
Mr Ruske’s journey in real estate commenced in 1988, and brings extensive experience in residential, commercial, industrial, lifestyle, and property management. In 2011, he and his wife, Gill Ruske, founded NRG Realty with the acquisition of an office from another company in Tauranga. The business has since expanded to include offices in Mount/Papamoa, Katikati, Waihi, and Waihi Beach.
Mr Billinghurst, with a background in engineering, IT, and management, transitioned into real estate in 2014. After achieving the NZ Rookie of the Year award in his first year with a previous real estate group, he became a co-owner of NRG Realty Ltd. alongside his wife, Bronwen Billinghurst, in 2021.
As a principal of the business, Mr Billingshurst now oversees the five Raine & Horne offices in Tauranga, Mount Maunganui, Katikati, Waihi Beach, and Waihi, relishing the opportunity to support his team and immerse himself in the exciting world of real estate.
Angus Raine, Executive Chairman of Raine & Horne, who is the fourth generation of his family to lead the Australasian super brand, expressed his confidence in the new principals, stating, “I can see Paul takes pleasure in assisting his salespeople in their growth and development which ensures they provide excellent outcomes for their sellers and buyers.
“His responsibilities involve running the day-to-day operations of and exploring new technologies and approaches to real estate to keep the team up to date,” Mr Raine added.
“Neville’s passion for property shines through not only from establishing five successful real estate offices in the Bay of Plenty and Hauraki region but also from his ownership of rental and commercial properties and his current involvement in building projects.
“Neville and Paul are excellent operators who are sure to embrace our ecosystem of digital marketing firsts,” he said.
“Digital marketing is redefining how properties are promoted and sold in New Zealand, and with our ecosystem of technology-first, headed by the cutting-edge social media marketing platform, Amplify, Raine & Horne proudly stands as a formidable leader in this rapidly evolving space.”
Embracing a legacy of technology success and unparalleled support
Mr Billinghurst agreed that Raine & Horne’s cutting-edge technology, its unique value proposition, and unwavering support were too good to ignore.
“Raine & Horne offers us something different from other brands in that it adds value to our vendors, team and business,” he said.
“This is not only from its leading-edge technology, such as Amplify but also in the support they give us. It means our current and future salespeople have a real point of difference to offer potential vendors, and we can add even more value to our team as a company.”
Mr Billinghurst added, “Our five offices have been established in the marketplace for many years. We want to take them all to the next level and rapidly grow our regional market share.
Mr Ruske said his dealings with Raine & Horne have been positive from the outset.
“From our interactions, it feels there is a real loyalty to the brand, and there are genuine people behind it,” he said.
“We’re on a growth projection within the Bay of Plenty and Hauraki region, which aligns well with Raine & Horne’s New Zealand growth goals.
“Having 140 years of real estate heritage shows Raine & Horne have weathered all markets and run an exceptional operation.”
“There are many brand alternatives for business owners to choose from, but we believe that with Raine & Horne’s history coupled with their forward-thinking, dynamic approach to real estate, they will shortly be a driving force in New Zealand real estate.”
The business spirit of the 100% family-owned and operated Raine & Horne also struck a chord with Mr Ruske and his fellow directors.
“NRG Realty is an acronym of Neville, Ruske and Gill, and Gill has been an integral force since we began the business, contributing to management decisions and overseeing finances since day one,” Mr Ruske said.
“Her expertise in residential developments adds a significant dimension to the business.
“As Paul and Bronwen became part of the team, this legacy of family involvement persisted, with Bronwen focusing on our company marketing.
“Still having the same company owners but now operating under the Raine & Horne brand is great for both organisations.”
Politics News – LEADING DENTAL ADVOCACY GROUP WELCOMES GREEN PARTY UNIVERSAL DENTAL POLICY
Advertising News – Advertising sector responds to climate emergency with ambitious sustainability initiative
Advertisers, media owners, production and advertising agencies commit to collaborative climate action
Ad Net Zero, has launched in Aotearoa New Zealand today, with a mission to accelerate the decarbonisation of the advertising industry.
Launched first in the UK in late 2020, New Zealand will become the fourth region globally to harness the Ad Net Zero framework to help the advertising sector reduce its greenhouse gas emissions (GHGs) and support the transition to a sustainable economy.
Ad Net Zero is a five-point action plan* that supports the transition to net zero emissions for a $3.4b industry**. It has already garnered the support of major foundation partners ANZ, BNZ, EECA, Go Media, Google, Kiwi Bank, Meridian, One New Zealand, oOh!media, SCG, Sky and TVNZ and aims to:
1. Reduce emissions from advertising business operations
2. Reduce emissions from advertising production
3. Reduce emissions from media planning and buying
4. Reduce advertising emissions through awards and from events
5. Harness advertising’s power to support behaviour change.
Supporters are required to have created a greenhouse gas emission inventory within the first 12 months of becoming a Supporter and a science-based target in line with the Paris Agreement, as well as an emissions reduction plan by year two.
Additionally, Supporters are invited to participate in working groups that will collaborate on efforts to streamline industry efforts such as agreeing on a consistent measurement approach for ad-related emissions.
Hon. James Shaw, Minister of Climate Change, attended the special launch event in Auckland today.
“The launch of Ad Net Zero is a positive step towards bringing the advertising industry together to work towards a lower carbon future.”
“The climate crisis is the most pressing issue affecting us all. It is important we continue to elevate the sustainability conversation to drive lasting behaviour change and shape the world for the better,” says Shaw.
A steering group made up of representatives from across New Zealand’s advertising industry supply chain are leading the Ad Net Zero initiative***.
Steering group spokesperson, Simon Lendrum, Chief Executive of Commercial Communications Council, says “The advertising industry has proven time and again the power of collective creative thinking and innovation. Both will be essential in reducing carbon emissions across the entire advertising ecosystem.
“Individually, many organisations in the sector are already playing their part, but the Ad Net Zero initiative is about deep sector-wide collaboration – and supporting those just starting their journey,” he says.
As well as foundation partners, the initiative has early agency support from Acumen Republic, Clemenger Group, DDB, Dentsu, FCB, Federation, Harvey Cameron, Hearts and Science, Lassoo, MBM, Motion Sickness, OMD, PHD, Pitchblack, Quantum Jump, RUN, Saatchi & Saatchi, Spark Foundry, The Monkeys, True, Together, VMLY&R and YoungShand.
The advertising sector in New Zealand employs an estimated 44,000. The Ad Net Zero framework supports a future in which ads are made by sustainable businesses, using sustainable production processes, and distributed through sustainable media supply chains, while promoting sustainable products, services and behaviours.
Notes
*Ad Net Zero’s detailed five-point action plan:
Action 1: Reduce emissions from advertising business operations Action 1 aims to reduce emissions from the operations of advertising businesses. It calls for agencies and marketing services companies to annually measure consumption data, for example, electricity usage, business travel, waste production, so it can reduce operational carbon emissions.
Action 2: Reduce emissions from advertising production All agencies and production companies – with client support – will be encouraged to commit to reducing emissions from advertising production.
Action 3: Reduce emissions from media planning and buying Media agencies, media owners and clients will be encouraged to work together to develop and implement lower carbon media plans. Ad Net Zero is collaborating with GARM and the WFA to develop a consistent data framework and methodology to calculate the emissions from media planning and buying.
Action 4: Reduce advertising emissions through awards and from events Action 4 of the Ad Net Zero plan challenges industry awards bodies to ensure that the sustainability credentials and climate impact of campaigns inform judging. In 2023, sustainability criteria were introduced into every award entry at Cannes Lions, with Ad Net Zero working closely with the Cannes Lions team, to help analyse award entries and see how and where the industry is taking steps to be more sustainable.
Action 5: Harness advertising’s power to support behaviour change Our ambition is that agencies and their clients increasingly work together to measure the carbon impact of campaigns, use advertising to promote more sustainable choices between competing products and services, to back innovations that deliver greener solutions to people’s needs and desires, and to persuade society to adopt behaviours that reduce carbon emissions.
**Industry value: New Zealand Advertising Industry Revenue Report 2022
*** A steering group made up of New Zealand Advertisers Association (ANZA), Advertising Producers Association (APA), Commercial Communications Council (CCC), Energy Efficiency & Conservation Authority (EECA), Interactive Advertising Bureau (IAB), Out of Home Media Association (OOHMA), Radio Broadcasters Association (RBA), and Television New Zealand (TVNZ) are driving the Ad Net Zero initiative in Aotearoa.
Business News – AQUALINC ANNOUNCES SALE OF NEUTRON PROBE BUSINESS TO STAFF
Leading water and land management consultancy Aqualinc is selling its neutron probe business in the North Island and in North Canterbury to two of its Irrigation Management Area Managers.
Neutron probes are radiation-based devices using very low levels of radiation to determine soil moisture content. Readings are usually taken weekly, with the results and irrigation recommendations sent to the grower.
Melanie Smith (Aqualinc’s Irrigation Management North Island Area Manager) is purchasing the neutron probe business across the North Island and Hamish Maxwell (Aqualinc’s Irrigation Management North Canterbury Area Manager) is buying the North Canterbury business.
The change follows an Aqualinc review of all its services, which concluded that the neutron probe service no longer formed part of the company’s core business.
“We are really pleased to be able to turn this decision into an opportunity for two of our staff to become owner operators,” says Jim Herbison, Aqualinc General Manager.
“Melanie and Hamish will ensure all existing clients have uninterrupted access to the service when the change takes effect at the end of July (North Island) and the end of June (North Canterbury). They are also keen to expand their client base.
“We’re very sorry to lose them, but we are delighted to be able to help two team members to move into business ownership. We’ll still work closely with them – referring clients to them and providing their clients with additional services.
“It’s a win-win situation, we get to focus on our core business, Melanie and Hamish get to buy a business that they already know inside out, and their clients get a familiar face and a service they know and trust,” says Jim Herbison.
Melanie Smith says this is something she has been wanting for a number of years and is excited to be taking this step. “I feel privileged to have learnt from the best, Tony Davoren under HydroServices and know he would be proud of Hamish and I with these business purchases. I look forward to continuing to work with our clients under Tipu Services Ltd.”
Hamish Maxwell says he is thrilled to be taking over the neutron probe business. “It’s a great progression opportunity for me and I’m looking forward to continuing the service in the same business as usual manner.”
Aqualinc’s neutron probe clients in Mid and South Canterbury and in Central Otago have already been offered the opportunity to switch to Aqualinc’s telemetered soil moisture probe service.
The Aqualinc sale leaves the company free to focus on its resource consultancy, consenting and telemetry work with farmers, irrigation schemes, central and local government, as well as its applied water and soil research for clients.
“We use our water and soil research combined with our knowledge of what happens on farms to help government agencies develop good water and land management policies. Then we help the water users to operate within the rules while running a profitable business,” says Jim Herbison.
About Aqualinc
Aqualinc is one of New Zealand’s leading water and land management consultancies.
Established in 2003 by John Bright and Ian McIndoe (both still Executive Directors), it has grown into a national company, with more than 30 staff working on land and water resource management, research, and irrigation design and development in New Zealand and overseas.
It offers expert advice to farmers and growers on irrigation management, design and monitoring; resource consents and consent compliance; land management and groundwater investigation; and effluent storage and discharge. It also offers advice and technical expertise to district, regional and central government.
Aqualinc’s advice and support helps its clients to make wise, environmentally sustainable water and land management decisions.
The company has offices in Hastings, Christchurch, Ashburton and Cromwell.
Health News – CareHQ appoints Brett Butler to General Manager role
CareHQ, the online GP service and joint venture between ProCare and Southern Cross Health Society, is delighted to announce the appointment of Brett Butler as General Manager.
Butler is currently General Manager of Health Services at ProCare, where he has spent about 20% of his role leading the CareHQ team. Prior to joining ProCare, Butler was a senior manager at Southern Cross Health Society where he led a team in the development and delivery of health insurance products.
Butler’s appointment comes after a year of significant growth for the online GP consultation service, with consultations more than doubling in the year 1 July 2022 to 30 June 2023.
Kerry Boielle, Chair of CareHQ and Chief Sales & Marketing Officer at Southern Cross Health Society said after a year of significant growth for the service, it was the right time for CareHQ to secure a leader to take the business forward, and Butler’s experience made him a natural choice for the role.
“We are really starting to see momentum now as more and more New Zealanders become aware of the benefits of using virtual GP consultation services such as CareHQ and this has been evident by the month on month increase in the number of consultations carried out by CareHQ over the past year, versus the previous year.
“In this period of growth, it was clear we needed an experienced general manager who can focus entirely on leading the CareHQ team and taking the business forward. Brett was a natural choice given his current experience working with CareHQ team, and prior to this leading teams in the delivery of products of value to Southern Cross members. We’re delighted to have him on board in this role,” she said.
Earlier this year CareHQ launched new services to support the needs of more patients, adding injury management clinics and after-hours clinics for New Zealand patients, and international visitor clinics for students and visitors to New Zealand. These clinics have contributed to the significant growth achieved in the last 12 months and CareHQ expects to hit the 40,000 consultation mark next month.
Bindi Norwell, Chief Executive at ProCare said, “the growth in online consultations over the last year has exceeded our expectations as patients have continued to value the chance to see a doctor virtually when they are unable to see their usual GP face-to-face. We expect that level of growth to continue in the next 12-24 months and are excited about the strategic focus Brett will be able to bring to CareHQ to support this.
“General practices in our network tell us they have appreciated having the option to offer their patients the ability to use CareHQ during busy periods such as Christmas, Easter, school holidays, after hours, or when they’re just on holiday themselves. It means they know their patients are in good hands, that continuity of care will be provided to the patient and there will be no ‘clawback’ for their patient seeing another provider,” she continued.
Brett’s role will be effective as of 14 August 2023.
CareHQ is a virtual consultation service that provides New Zealanders with a convenient and easy to use telehealth consultations with specialist General Practitioners (GP), there for when they can’t see their regular GP or need support after-hours.
CareHQ is made possible by a partnership between Southern Cross Health Insurance and ProCare however CareHQ exists as an independent service from both these organisations.
Collectively Southern Cross Health Insurance and ProCare already care for and are trusted by more than one million New Zealanders:
Southern Cross has more than 940,000 members
ProCare supports 170 general practices across Tamaki Makaurau and Te Tai Tokerau, covering more than 850,000 enrolled patients.
About Southern Cross Health Insurance
Southern Cross Health Insurance has been supporting New Zealanders on their health journeys since 1961. Today, we provide cover for one in five New Zealanders every year.
As a not-for-profit friendly society, Southern Cross Health Insurance operates solely for the benefit of members, rather than shareholders or overseas owners. We pay more claims than any other New Zealand health insurer and are proud of our industry-leading rate of return, $5.03 billion returned in claims over past five years, out of $5.82 billion received in premiums – representing more than 86 per cent of premiums returned to members in claims.
Southern Cross is a group of independent businesses united by a shared brand with an interest in the health and wellbeing of New Zealanders. With a range of products and services and a not-for-profit ethos, Southern Cross is New Zealand’s leading independent provider and funder of healthcare.
About ProCare
ProCare is a leading healthcare provider that aims to deliver the most progressive, pro-active and equitable health and wellbeing services in Aotearoa. We do this through our clinical support services, mental health and wellness services, virtual/tele health, mobile health, smoking cessation service, and by taking a population health and equity approach to our mahi. As New Zealand’s largest Primary Health Organisation, we represent a network of general practice teams and healthcare professionals who provide care to more than 850,000 people across Auckland and Northland. These practices serve the largest Pacific and South Asian populations enrolled in general practice and the largest Māori population in Tāmaki Makaurau. For more information go to www.procare.co.nz