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Kiwibank government ownership a setback for competition, fund manager says
Kiwibank government ownership a setback for competition, fund manager says

23 August 2022, 9:32 PM

Kiwibank risks becoming a "zombie bank" under direct government ownership, according to a KiwiSaver fund manager.The government will buy out the Super Fund, ACC and NZ Post to take complete control of Kiwibank, in a deal that values the company at $2.1 billion.Managing director of the Simplicity not-for-profit KiwiSaver provider Sam Stubbs told RNZ the government move was a setback for competition."Kiwibank was set up to be the national champion bank and to really create proper competition for the Australian banks and it has unfortunately not succeeded in doing that, it's never had more 5 percent market share."Simplicity managing director Sam Stubbs. File photo Photo:The government said it intended to keep a sensible distance between itself and the day-to-day running of the bank but will be open to proposals to help the company grow.But Stubbs said the government had starved the bank of capital and its mixed ownership model never gave it the financial support needed to take on the four big Australian owned banks."What we have now is a bank which, many years after foundation, is really a small-part player in the market and really risks turning into a zombie bank unless the government brings out its cheque book and recapitalises it to properly compete with the Australian banks," Stubbs said.Unless that happens, he said, Kiwibank would remain a "one armed boxer in a ring with four heavyweights".A recent report from KPMG shows that Kiwibank had just over $30 billion in assets but the big four Australian banks had between $123b and $190b, however, Kiwibank's chief executive Steve Jurkovich has said outside capital was not a priority for the bank.KPMG head of banking and finance John Kensington told RNZ that Kiwibank had done "remarkably well", as it had managed to expand from being one of the smaller banks, which had total assets of between $2b tand $6b, to its current size.The change in Kiwibank's ownership structure suggested the government was prepared to provide financial backing when needed, he said."The government's coffers are not indefinitely deep and at the moment, there seems to be a lot of calls for money to be spent differently be it in health and education ... so they'll definitely have to line up there," Kensington said."As a wise investor, the government will have factored that in and realised that, at various points, it will have to give capital."So, it will probably get the degree of importance and priority that it requires."Finance Minister Grant Robertson. Photo: Pool / NZME / Mark MitchellFinance Minister Grant Robertson told Morning Report the government was open to proposals for capital needs from Kiwibank."There is plenty of competition in the market but it's not necessarily driving all of the outcomes that we would want - and I accept that."But our basis for having Kiwibank is both to put pressure on those big four banks but also to give New Zealanders a genuine, competitive, reliable option that sees the profits stay in New Zealand."Obviously yesterday the Kiwibank chief executive Steve Jurkovich said they attempt to fund their capital needs internally."But if there is a need for further capital to help the bank be more competitive then the government is very open to hearing those propsals from Kiwibank because we do want it to be that viable competitor that I think it can be. "Stubbs said he would have liked to have seen the government pursue a partial share float of the bank, in a model similar to that of the power companies."They could have listed this, they could have sold a small percentage of it ... bring in a proper commercial board and once you start tapping capital markets in that sense, then you can borrow the money that you need, you can get the shareholder capital you need to beef yourself up and be a serious player," Stubbs said."It would have allowed Kiwibank to break out of its shackles and be a proper capitalised large-scale player which helps drive down mortgage rates, drive up deposit rates and take back some of the billions of dollars in profit that the Australian banks are milking from New Zealanders."A partial public listing of the bank would have opened the door to offshore investors owning a slice of Kiwibank, such as the framework for the big power companies, which retained majority government ownership."It does appear that this transaction was ideologically driven, which was that in no instance should state-owned assets should be allowed to list on the stock exchange," Stubbs said.He said there would have plenty of interest from KiwiSaver providers, including Simplicity, that would want to take a long-term stake in the bank.Robertson said the government wanted to see Kiwibank grow and remain in New Zealand hands."Unfortunately the Super Fund, who have been a really positive influence on the bank, wanted to be able to bring in private capital from overseas, wanted to be able to sell eventually to potentially overseas interests."That ran counter to the objectives we've had, and the bank has had, for over 20 years of being 100 percent New Zealand-owned."We've stepped up, we're prepared to continue to work with them and continue to see them grow."

Waterways Protection Fund extended
Waterways Protection Fund extended

22 August 2022, 8:10 PM

Nearly 60 landowners and community groups used Auckland Council’s Regional Waterway Protection Fund last year, sharing $800,000 for projects in Franklin and Papakura.That awareness has seen extra money made available to expand the fund this year into Rodney and Aotea / Great Barrier Island.Franklin Local Board Chair Andy Baker says the goal is to exclude stock from waterways and plant riparian margins to reduce contaminants reaching the water. “That helps improve our streams, wetlands, and harbours. Their health is critical to our environment, communities and economy.”The Auckland Unitary Plan requires stock to be kept out of waterways. Deputy Mayor and Franklin Ward Councillor Bill Cashmore says anyone who hasn’t started needs to. “We all know fencing waterways and excluding stock contributes to better water quality.”Papakura Local Board Chair Brent Catchpole says it’s important landowners, farmers and lifestyle block owners understand the rules. “Council’s website  has more information, and the Regional Waterways Protection Fund can help cover some of the costs of projects.”Applications can be made to the fund to support fencing projects to keep stock out of waterways.Information has gone out to relevant landowners and support for those interested is available now, with applications open from 1 September to 14 October.Applications are assessed in November with funding awarded in December for work in 2023. Support is available to any landowner or group working on a 5 hectare plus private property. Those previously funded can apply again if that work has been done.Rodney Local Board Chair Phelan Pirrie says it’s great waterways protection is being funded regionally, continuing on from the Board’s Healthy Harbour Fund, which ends this year. “It’s a perfect opportunity for landowners to access funds that effectively halve project costs.”Applicants must contribute the other half, but that can include in-kind support such as volunteer labour, cash or contributions from other donors.Aotea / Great Barrier Local Board Chair Izzy Fordham is keen for landowners to tap into the fund. “The health of our environment is never far from the minds of locals. We encourage anyone eligible for the offer of assistance to improve our waterways to take advantage.”Selection criteria include environmental and community benefits, significance and size of the area, working with iwi and other groups, and the likelihood of success.Senior Healthy Waters Specialist Wendy D’Arcy says it’s a chance to secure funding and advice on improving waterways. “Working across Franklin and Papakura has shown us the great work many are doing to improve water quality.”Call Wendy D’Arcy 027 264 3379, or email [email protected] for more.

Bees exposed to pesticides show impaired visually guided behaviour - research
Bees exposed to pesticides show impaired visually guided behaviour - research

20 August 2022, 8:25 PM

New research has found bees struggle to fly in a straight line if they've been exposed to pesticides, which makes it harder for them to find their way back to the hive.Released by The University of Oxford the paper says honeybees have an innate ability to orient themselves back onto a straight line when blown off course.Researchers tested this ability with walking bees by putting them in front of video screens that tricked them into thinking they had moved off course.Lead author Dr Rachel Parkinson said bees contaminated with modern pesticides were worse at correcting themselves."Here we show that commonly used insecticides like sulfoxaflor and the neonicotinoid imidacloprid can profoundly impair the visually guided behaviour of honeybees."There was a huge effect, the bees that were treated with the insecticides were unable to follow the direction of visual movement so they weren't able to orient themselves properly."Our results are reason for concern because the ability of bees to respond appropriately to visual information is crucial for their flight and navigation, and thus their survival," she said.The research also found that pesticide-exposed bees tended to have an elevated proportion of dead cells in parts of the brain's optic lobes, important for processing visual input."To fully understand the risk of these insecticides to bees, we need to explore whether the effects we observed in walking bees occur in freely flying bees as well."The major concern is that, if bees are unable to overcome any impairment while flying, there could be profound negative effects on their ability to forage, navigate, and pollinate wildflowers and crops."

SH1 FULL OVERNIGHT ROAD CLOSURE coming up between Warkworth - Wellsford
SH1 FULL OVERNIGHT ROAD CLOSURE coming up between Warkworth - Wellsford

17 August 2022, 9:40 PM

Ara Tūhono– Puhoi to Warkworth motorway project will be undertaking the next phase of the pavement improvement and tie in works on State Highway 1 (SH1) between Kaipara Flats Road/Goatley Road and Hudson Road intersections. SH1 will be closed to all traffic in both directions from Wellsford to the Hudson Road intersection for 10 nights over a two-week period this month to allow the project team to complete the work. The closures will be in place between 9pm and 5am from Sunday 21 August to Thursday 25 August, and then again from Sunday 28 August to Thursday 1 September. There will be a detour in place via State Highway 16 from Wellsford to Woodcocks Road, Warkworth. This detour will add up to 30 minutes extra to the journey. If you are travelling north, you can exit the motorway at Silverdale to SH16 and avoid the Warkworth area. We advise planning travel of this time carefully and apologies for any inconvenience caused. Over dimension loads will not be able to use the detour route, therefore we have a special arrangement in place where over dimension vehicles will be able to access through the work site at a set time on set days. Please contact us 48 hours or more before your journey on 0508 P2WK INFO (0508 7295 4636) or at [email protected]. Heavy vehicles can use the detour route, and it is suggested you exit at Silverdale.Once we complete this piece of work, we’ll be back on Sunday 4 September to complete the traffic switch and a further road closure will be needed that night. A much shorter detour via Hudson Road will be in place while we do this work. After the switch has taken place, the road surface will be a lot smoother. Please plan ahead for your journey during this time and check the Waka Kotahi Journey Planner https://www.journeys.nzta.govt.nz/traffic/ before you travel.

Firefighters to strike Friday morning - but why?
Firefighters to strike Friday morning - but why?

17 August 2022, 8:44 AM

The NZ Fire Service (NZFS) is set to strike nationwide this Friday 19th August. There may be delays in responding to emergencies mainly in our big cities. Strike is set for 11am for an hour for professional/career firefighters. A further strike is planned for the following Friday 26th, with possible further action.During the one-hour strike emergencies will still be responded to, however there may be fewer firefighters than usual and response time may be delayed.For volunteer fire stations of which there are 600+ nationally, they will respond to emergencies as they do normally. Did you know over 80% of the NZFS is volunteer based?We have volunteer stations stretching from Puhoi to Mangawhai and beyond. These stations and their volunteers are on standby with potential for them to be called outside of their normal servicing areas. For example, they may be called out all the way to Papakura in Auckland city. It is a massive area they may have to cover. Hopefully it won’t be needed especially in the one-hour window.Be vigilantThis serves as a good reminder for people to be safe, careful, and vigilant so that they do not require emergency services. Bad weather is forecast for the rest of the week and firefighters are often called to floods, trees down, power outages support etc. There may be delays responding to these events so please be patient!Salary comparisonOn another note, it seems ridiculous that 600+ stations, with 80% of firefighters around NZ are being run by volunteers that do NOT get paid for their commitment and service to their communities. Since when do we have volunteer Police and Paramedic services?Professional qualified Firefighters earn a base salary of $58,000 annually. To put that into perspective Police recruits earn $56,000 in their training year. First year out of college they earn $81,710, which increases with every year after. Paramedics with up to five years' experience usually earn on average $75,000 per year. So why are firefighters being short changed? How are career firefighters able to afford living costs and to support families?The transition to first respondersIn 2014, fire crews began partnering with St John, to act as first responders for some life-threatening incidents, like heart attacks, violent crime, and attempted suicide. Many firefighters are faced with horrific traumatic scenes that they haven’t been trained or paid for. Nor are they given sufficient counselling to deal with what they experience.Issues negotiatedFire Emergency New Zealand (FENZ) and New Zealand Professional Firefighters Union (NZPFU)have been in negotiations about conditions and pay for over a year and have not been able to come to agreement. While FENZ have offered a pay rise the Union says it is not enough and the strike is not just about pay, it is about conditions and systemic issues with FENZ.Some of which include more staff needed as many are working overtime for long periods at a time – there have been reports of some Northland career Firefighters working up to 40 hours OVERTIME a week! Other issues cited include equipment and machinery which is old, outdated, cumbersome and in short supply. There are also calls for remuneration and psychological trauma support for medical callouts that firefighters are often tasked with being first at emergency scenes. NZPFU also wants acknowledgement from FENZ that firefighters are at an increased risk of cancer. WHO declared firefighting to be carcinogenic recently after research found firefighters were four times more likely to be diagnosed with cancer than the general population.One of the fire engines at Auckland's Central Fire Station with messages on it indicating how firefighters are feeling about their current work situation. Photo: RNZ / Rayssa AlmeidaA small win for FirefightersNZPFU has recently won a dispute with FENZ through The Employment Relations Authority that determined firefighters working overtime on a public holiday must be paid 1.5 times the overtime rate as the overtime rate is the relevant daily pay.Hopefully their BIG win is heading their way soon! Reminder the strike days are Friday 19th and Friday 26th from 11am-12pm

Severe weather warnings for Northland over the next few days
Severe weather warnings for Northland over the next few days

16 August 2022, 9:12 PM

Severe Weather Warnings Extended period of significant heavy rain for northern and western parts of New Zealand. Severe northeast gales for northern New Zealand.A complex trough of low pressure, preceded by a moist northerly flow, is expected to move onto New Zealand from the Tasman Sea today and become slow-moving on Wednesday. The trough is expected to move slowly eastwards across the county during Thursday and Friday. This weather system is forecast to bring an extended period of northerly rain to northern and western parts of New Zealand, where Heavy Rain Warnings and Watches are in force.In addition, gale to severe gale north to northeasterly winds will affect northern and central parts of New Zealand, and Strong Wind Warnings and Watches are in place.This is expected to be a significant weather event, especially for places where soils are already saturated from recent rain. People are advised to keep up to date with the latest forecasts, as some areas could be upgraded to a Red Warning, and more areas may be added. Heavy Rain Warning - OrangeImpact: Heavy rain may cause streams and rivers to rise rapidly. Surface flooding and slips are also possible and driving conditions may be hazardous.Area: NorthlandPeriod: 39hrs from 6pm Wed, 17 Aug - 9am Fri, 19 AugForecast: Expect 140 to 180 mm of rain, especially in the north and east. Peak rates of 10 to 15 mm/h expected. Strong Wind Warning - OrangeImpact: Strong wind gusts could damage trees, powerlines and unsecured structures. Driving may be hazardous, especially for high-sided vehicles and motorcycles.Area: NorthlandPeriod: 42hrs from 6am Wed, 17 Aug - midnight Thu, 18 AugForecast: Severe northeast gales gusting 120 km/h in exposed places.

Kaipara District Council's Exposure Draft District Plan now open for feedback
Kaipara District Council's Exposure Draft District Plan now open for feedback

15 August 2022, 8:50 PM

The Kaipara District Council has released their draft changes to the "Exposure District Plan" and are seeking feedback before it is put through next year. There is only a small window to be heard and give feedback which ends 16th September.Here is the plan which includes energy, transport, infrastructure, natural hazards, zoning, subdivisions, contaminated land, open spaces, earthworks, noise and GMO's etc.https://www.kaipara.govt.nz/kaipara-district-plan-review/exposure-draft-district-plan There are many opportunities for you to discuss the Exposure Draft District Plan with their District Planning Team. Here is a list of upcoming engagements: Chat to a planner, 10am-12pm, Mon 15 Aug, book on our website Ruawai drop-in, 10am-12pm, Tue 16 Aug, Ruawai Tokatoka Hall Paparoa drop-in, 10am-12pm, Wed 17 Aug, Paparoa Memorial Hall Chat to a planner, 2-4pm, Wed 17 Aug, book on our website Webinar: Historical and Cultural Values, Wed 17 Aug, 7-8.30pm, Wed 17 Aug, KDC YouTube Maungaturoto drop-in, 9.30-11.30am, Thur 18 Aug, Maungaturoto Centennial Hall Kaiwaka drop-in, 2-4pm, Thur 18 Aug Kaiwaka Memorial Hall Chat to a planner, 10am-12pm, Fri 19 Aug, book on our websiteYou can see a full list of engagements and book a ‘Chat to a planner’ session at the link: https://www.kaipara.govt.nz/kaipara-district-plan.../engageGet involved, this will have big repercussions for the way we live.

Smart speed cameras could be in use within months
Smart speed cameras could be in use within months

15 August 2022, 8:44 PM

Speed cameras that take two pictures at different spots in order to work out a vehicle's average speed could be in use within months.Transport Agency documents say law changes could allow them to be used against more offences including tailgating, and seeing inside a car to spot drivers using cellphones or not belted in.The OIA papers show Waka Kotahi has been working on this and a new highway tolling system that can also be used for congestion charging, for a couple of years.Its plans say the point-to-point or average-speed cameras "could be a game changer enabling us to manage corridor speeds rather than spot speed".They would be three times better than fixed or mobile speed cameras at cutting the road toll, a business case said.The smart cameras "can be used to provide evidence, for example, that a driver is using a mobile phone or not wearing a seatbelt."Camera-based enforcement can be invasive, as images are purposely taken of the driver and passenger compartment," the business case stated.A board paper from April said law changes under the Regulatory Stewardship Transport Amendment Bill meant from early 2023 there could be use of point-to-point cameras, automation of offence processing and fine notices delivered to cellphones.Already 26 of the new cameras are on order to add to the 142-strong network.The agency is calling them "safety cameras" in a Cabinet-ordered attempt "to shift the public away from perceptions that safety cameras are an enforcement, revenue-gathering tool".Medium and high-risk roads will be the target.A camera business case estimates they could save between 1500 and 2400 lives and $1.5 billion across two decades.The privacy implications are still being worked out with the Privacy Commissioner.Waka Kotahi refuses to specify the total cost of the camera system and new tolling system, saying this was to protect "ministers, members of organisations, officers, and employees from improper pressure or harassment".However, just the first phase - choosing the mix of cameras, where to put them and the design of the system - costs $21.6m, which is $10m more than expected, though the documents said that had not impacted the whole budget.Spanish traffic company SICE (Sociedad Ibérica de Construcciones Eléctricas) won the contract for the cameras and tolling.The work is being done quickly alongside a review of road offence penalties with the aim of saving 114 lives a year by 2030.As it stands, relatively few cameras per capita and lack of advanced cameras, along with very low penalties for speeding "greatly undermine the effectiveness of the enforcement approach", the papers say.In New Zealand the speeding fine for being 1-10km/h over the limit in an urban area is $30, compared to $370 in Sweden.Fines are set to rise and demerit points are very likely to be stiffer, and applied for the first time to camera offences.Authorities see all this as crucial to the Road to Zero strategy, with cameras expected to provide 5 percent of the 40 percent reduction in road deaths and serious injuries that is the strategy's primary goal.At present there are 142 safety cameras across its road network: 45 red-light, 54 fixed speed, and 43 mobile cameras, an increase of 30 since 2019.Waka Kotahi is taking them over from police, adding to its 2000 traffic management cameras.It would not say how many cameras it planned to have."ITS and infrastructure will be future-proofed to enable Waka Kotahi to trial and adopt ... smart cameras" with "built-in intelligent image processing and pattern recognition algorithms [that] allow these cameras to detect motion, measure objects, read vehicle number plates, and recognise human behaviours", the camera business case says.Police were already testing prototypes of trailers to carry point-to-point speed cameras that might be used at roadworks.The aim with the network of three types of camera - point-to-point, red light, and standard used in both fixed and mobile operations - is to create an "anywhere, any time" deterrent.Research shows the public thinks speeding is much safer than it is: 44 percent of all road deaths in the last decade were down to speed.Privacy implicationsOn privacy, the business case says "the data and digital images captured by cameras, their storage, and their use all have privacy implications"."New issues will arise with new technologies that can be used for other than current safety-related purposes, such as average speed and mobile phone use detection."The agency expects a small rise in public support for cameras of up to 2.5 percent as people see the safety benefits.On the tolling front, the documents show the current system used on just three highways is on its last legs."As it is now, the current tolling system is a very inefficient way of collecting money," the business case said.One option was to run it to standstill, or outsource it entirely.The is an indication there will be more tolling: "Over time, it should be expected that the cost of an outsourced service will increase as more roads are tolled."Waka Kotahi has chosen Spanish company SICE to provide and run all the back office systems.The business case does not mention congestion charging but the board paper says the upgrade is aimed at "upcoming toll roads as well as to support new capability that may be required, e.g. congestion charging."

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