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Aotearoa makes top 10 of world's happiest countries again
Aotearoa makes top 10 of world's happiest countries again

18 March 2022, 11:10 PM

Finland has been named the happiest country in the world for the fifth year running, while Aotearoa has dropped one place to tenth.The survey by the United Nations' sustainable development solutions network assesses life expectancy, GDP per capita, social support, low corruption and high social trust.It placed Finland at the top, followed by Denmark, Iceland, Switzerland and the Netherlands.New Zealand at 10th was the highest placed southern hemisphere country, two places ahead of Australia.Afghanistan rated lowest, followed by Lebanon, Zimbabwe and Rwanda.This year marks the 10th anniversary of the World Happiness Report, which uses global survey data to report on how people evaluate their own lives in more than 150 countries around the world.One of the report's authors, John Helliwell, said that with the world still in the grip of the Covid-19 pandemic, there was evidence of a marked increase in helping strangers, volunteering, and donations in 2021."This surge of benevolence, which was especially great for the helping of strangers, provides powerful evidence that people respond to help others in need, creating in the process more happiness for the beneficiaries, good examples for others to follow, and better lives for themselves," he said in a statement.The authors noted that Finland's score was significantly ahead of other countries that made the top 10. They also noted Canada's drop to 15th - 10 years ago it ranked fifth.The US was 16th (up from 19th last year) while the UK was 17th.At the other end of the scale, the report noted the impact of war or conflict on the wellbeing of citizens."Notably we find that people in Afghanistan evaluate the quality of their own lives as merely 2.4 out of 10."This presents a stark reminder of the material and immaterial damage that war does to its many victims and the fundamental importance of peace and stability for human well-being," co-author Jan-Emmanuel De Neve said.The top 10 happiest countries1 Finland2 Denmark3 Iceland4 Switzerland5 Netherlands6 Luxembourg7 Sweden8 Norway9 Israel10 New Zealand

What's happening with coffee prices?
What's happening with coffee prices?

16 March 2022, 6:18 PM

Coffee prices in Australia are going through the roof, but could the same thing happen in New Zealand?"It's kind of the perfect storm," said Joe Stoddart from Havana Coffee Works in Wellington."We've got a scenario where there was a frost in Brazil last year, which meant that heaps of coffee got damaged."Brazil is the largest producer of coffee in the world and it means that there's a limit on how much high quality coffee there is to buy in the world, that was coupled with coming out of a drought and then you've got shipping delays and prices in some situations around the world [are] quadrupling."Right now for producers, it's hard to even get your hands on a container that's food grade, let alone book something that's going to come to this part of the world."Stoddart said the situation was not limited to New Zealand and it was not just shipping delays."You've got a scenario where all costs are going up because of social distancing in developing countries, [which are] coffee producing countries, as well as what we're going through here in Australia and New Zealand. The price of diesel is going up."All in all, the costs are going through the roof."Stoddart said it was supply and demand which dictated the price for high quality coffee. If there is a glut of raw coffee in the world, the price will drop and if there is a limit or a perceived limit on coffee, then the price goes up.Asked if coffee here could reach the sky-high prices of $7 a cup as reported in Australia, Stoddart said potentially but that it was also to do with perception."What you have to understand is that all of it is perception of the costs going up, so in my position I buy most of my coffee directly from the people who produce it, so I don't necessarily let people who are the middle men take some of that profit."I'm in a position where I can get them more money at the same time as not spending too much money so I'm in quite a luxurious position. I'm not buying on a spot price that's set by the market, but my job is as a conduit between the producer and the customer here."Some grocers and people who are selling coffee here are going to be in that position but not necessarily everybody, because it's how you position what you're doing and how far out you see what is happening, is happening."You've really got to understand the the wider picture but also you have to appreciate that the cost of living for producers is through the roof and they may not have necessarily been getting what they should have been getting for a long time."But is now the time to invest in a machine to make it yourself at home?"As a coffee drinker, we average spending about $1800 to $2200 a year on cups of coffee at a cafe," Stoddart said.Stoddart said if you were to buy an espresso machine, even second-hand off TradeMe, you would be looking at about that price to begin with and about $1000 a year maintaining the machine, plus $40 to $60 a kilo for high quality roasted coffee, which New Zealand had a lot of."If you do this ... then you're saving hand over fist, but the real clincher is that the suburban cafes and the cafes that need us to buy coffee from them still need us to buy coffee from them ... you have to be real careful that cafes that you love to socialise in aren't going to keel over because you decided you weren't ever going to go and get a coffee again out, it's a double-edged sword."We really need to support those cafes, but if you really are passionate about high quality coffee then definitely invest in it, because life is way too short to be drinking awful coffee."And is New Zealand coffee really better than Australian coffee?"Part of the scenario is that we've got a really saturated market and that market is of a really high calibre," Stoddart said."For the last 20 to 30 years we've been stepping up to each other's plate but we've all been raising our own bar."We freaked them out when we go to Aussie from New Zealand, because they think that they're great and that nothing has a mark on them, but Australians will come here and say that this is the best coffee they've had and so it's kind of an industry secret to a certain extent."What we're doing to the product, it comes such a long way from overseas that we really treat it with respect, so the industry in New Zealand is cutting edge."We're pushing way above our weight and it's because the customer is demanding it. It is really hinged on the fact that Kiwis hate having a terrible cup of coffee, so we've got to make it amazing."

Business Association plans thank you dinner for emergency services
Business Association plans thank you dinner for emergency services

16 March 2022, 4:53 AM

One Mahurangi Business Association is hosting a thank you dinner on the 11th May to acknowledge the hard work from our local emergency services over a very busy summer.The association wants to give a big community thank you to our emergency services, including local Fire departments from Warkworth, Snells Beach, Matakana, and Leigh, as well as local Police, St Johns, Coastguard, and Surf Lifesaving.One Mahurangi Business Association manager, Murray Chapman explains the event's purpose further:"As I sit here in the office the Fire siren has gone off once again and this means more volunteers rushing away from their work or families to help those in trouble. This dinner is a chance for you to give back to our local heroes by either donating funds toward the running of the dinner or by putting your hand up to help on the night. One Mahurangi would like to offer the opportunity for the local community to serve our Emergency Services personnel and to make them feel our gratitude for all of the hours they put in. If you are keen to be involved, we look forward to hearing from you."Support for the evening from local businesses has already begun and One Mahurangi would like to extend the invitation for involvement to the wider community.Possible ways you can be involved and support the success of this event:Help on the night with set up, prep food, service of food and drinks, clean up, and pack down.Donations to help cover the costs of the evening: Account 06 0483 0113551 04(Any leftover funds will be donated evenly to the local emergency services.)This will be an enjoyable evening for everyone involved. For more information please contact Murray at [email protected] or 0274966550Alternatively you can contact Alex Hayward [email protected] or 0275278869For more information on how you can be involved contact: Murray Chapman [email protected] 0274966550 Alex Hayward [email protected] 0275278869 WARKWORTH TOWN HALL EMERGENECY SERVICES GUEST NUMBERS: 100 - 150 11TH MAY 2022*

PM on border reopening plan: 'We're ready to welcome the world back'
PM on border reopening plan: 'We're ready to welcome the world back'

16 March 2022, 12:27 AM

Prime Minister Jacinda Ardern and Tourism Minister Stuart Nash have announced plans to fast-track the reopening of the border.Ardern has announced New Zealand's borders will be open to vaccinated Australians from 11.59 pm on 12 April.She says fully vaccinated travellers from visa-waiver countries will be able to enter the country from 11.59pm on 2 May.The border has already reopened to New Zealanders from around the world and on Monday critical and skilled workers also became eligible to enter without isolation, Ardern says."We have now received guidance that it is safe to significantly bring forward the next stage of border reopening work, bringing back our tourists.""In short, we're ready to welcome the world back."Ardern says New Zealand' strong health response including having the lowest death rate in the OECD is an asset."We are a safe place to visit and New Zealand will be ready with open arms."Ardern says trans-Tasman travellers have traditionally made up 40 percent of tourists to New Zealand, and will be able to travel in time for the Australia school holidays, and provide a boost for the winter ski season.Tourism directly contributed 5.5 percent to GDP before Covid-19, she says, as well as $11 billion generated indirectly, and tourist demand benefits other industries including accommodation, adventure, entertainment, arts and culture. It accounted for 8 percent of the national workforce, she says.Ardern acknowledges the decision comes at a time when we are dealing with a level of Covid-19 New Zealand has not seen before.She says traveller numbers will take time to rebuild and will be lower than they were in 2019.Travellers will not need to isolate on arrival, but will need to provide a pre-departure test and take two RATs on day 0/1 and day 5/6, which is the case for all arrivals at the border.Ardern says this also increases capacity for New Zealand's exports, and will mean lower freight rates and a lower cost of goods, a further boost for the primary sector and contributing to the country's economic recovery.She says she is proud New Zealand can provide a safe place for tourists to return to and extend our manaakitanga once more.She says she will be helping lead the charge on her international trips planned for this year, "encouraging people to buy New Zealand-made and also to come and see us for themselves".Minister Nash, appearing via video link, says this is the most exciting moment for the tourism sector in the past two years.He says in light of the announcement, the government's tourism marketing agency Tourism NZ is beginning a new campaign in Australia, seeking to persuade Australians that "our unique landscapes, hospitality and the friendliness of Kiwis are now, quote, within your wildest dreams".He says it highlights dream experiences sought by Australian businesses, and the ease of travel on the short-haul route.He says historically more than 71 percent of international tourists who came to ski were Australians.Internationally, even some of the world's largest tourism operators like Heathrow Airport are predicting a five-year tourism rebuild, he says."Our 100 percent pure New Zealand brand remains a very compelling driver for tourists and we can't wait to see them again."Ardern says she knows from talking to tourism operators and staff how difficult the past two years has been.Ardern says this is a significant shift forward from the original plan to reopen in July."This will I'm sure be welcome news for our operators."She says at the moment there are gathering limits but these have not limit

Public transport fares to be halved, fuel taxes and road user charges reduced
Public transport fares to be halved, fuel taxes and road user charges reduced

14 March 2022, 4:01 AM

Fuel taxes will be slashed by 25 cents a litre for the next three months - and public transport fares halved - as the government acts to counter soaring petrol prices.Speaking after today's Cabinet meeting, Prime Minister Jacinda Ardern says the invasion of Ukraine has unleashed a "global energy crisis", with all three fuel types rising for the highest amount on record. Prices have increased 13 percent in the past month."We are in a wicked perfect storm and it's a storm that's impacting many people's lives."She says the impact of Russia's war on Ukraine is expected to mean "continued volatility" for fuel prices.Ardern says Labour has reduced cost pressures on New Zealand families since day one of taking office. She says what is happening now warrants a specific response.She listed the changes expected from the last Budget's Families Package, minimum wage changes and the winter energy payment.Ardern says the government has been working on additional policy over the past week, but says current transport projects and legislative changes - expanding public transport, and making public transport cheaper, and supporting fuel-efficient, hybrid or electric vehicles - must continue."This must continue and I'm signalling today that you will see in the Budget in May greater investment in this area through the climate emergency response fund."Cabinet has agreed to reduce fuel excise duty and road user charges by 25 cents per litre, for 3 months, she says."This means a potential saving of between $11.50 and $17.25 per tank of fuel."In additional all public transport fares will be halved for the next three months. "We hope this ensures that where the option of shifting how we travel is available, this makes it more affordable to take that public transport option up."Finance Minister Grant Robertson says the fuel excise change will come into force from 11.59pm tonight, and it will be reviewed before the three months is up."We cannot influence the global oil price and so therefore if we want to relieve some pain at the pump we need to look at the things we can control."He says the change can be made within hours, rather than the months it typically takes to make changes to the tax system such as GST.Petrol prices are expected to continue to rise and is not over yet, he says, and the government will also outline over the coming days the means by which the change will be reversed, but it is likely to be gradual.He says the road user charges will take longer to implement, but he says it will last for three months.It's possible this could include a change to legislation. The three-month period for road user charges would begin from whenever the order comes into effect, he says.Local authorities in practice set public transport fares, but Robertson says they will be reimbursed. He says the government is unable to set fare reductions but he is confident councils will "welcome this change and implement it speedily".This will feature in Budget 2022, so he thinks it is appropriate for it to last for the three months which would take us up to the May Budget.Robertson says the situation could get worse, stabilise or get better. He says if it got worse the government would not necessarily increase the amount of the reduction, but it could be extended for a longer time.Fuel excise goes directly into the National land transport fund, which pays for roads, public transport and walking and cycling infrastructure across New Zealand. Robertson says this work cannot afford to be delayed so the fund will be topped up for the expected loss of revenue. This is expected to be $350 million."We will be meeting the cost of this through savings and reprioritisation from the Covid response and recovery fund, in particular the reduction in costs related to MIQ."The public transport fare subsidy is expected to cost between $25m and $40m, which will also be met from the Covid fund. Because it is a reprioritisation from the existing fund, it is already factored into the Budget forecast so can be met without increasing debt.He says the situation highlights the shift to decarbonising."The reasons for us to need to do so as a country have never been more stark."Secondly, it highlights the importance of support for those most affected by cost-of-living increases, he says, and the measures outlined by Ardern are intended to address this.Energy Minister Megan Woods says she has been speaking to fuel company chief executives and most are indicating they are ready to reduce the price of petrol from midnight tonight."The government wants clear evidence that the 25 cent a litre reduction in fuel excise duty is passed on to consumers and not absorbed into fuel company profits. To this end I'm writing to all of the companies this afternoon outlining our expectation that the full amount of the excise duty relief is passed on to consumers... in addition I'm seeking daily information disclosure from fuel companies on their rolling seven-day average fuel margins to monitor industry profits."Shes says she intends this information to be publicly available and the companies have indicated they are willing to do this.There are options to pursue more data disclosure after the legislation which resulted from the fuel market study, she says.Ardern says the New Zealand economy overall is well positioned to recover, and she's confident we will get through.Ardern agrees the cost of living now "represents a crisis for many families, absolutely".Asked why it's taken so long to admit we have a cost of living crisis, Ardern says she has "always acknowledged that families have been experiencing pain as a result of the cost of living".She says after three months, the government will assess where prices are, "and then we'll ease off, so we will be careful to make sure that we don't have a jolt at the pump for families".

Three Waters: Statement from Kaipara mayor Dr Jason Smith
Three Waters: Statement from Kaipara mayor Dr Jason Smith

12 March 2022, 8:40 PM

Statement from Kaipara mayor Dr Jason Smith following release of the Recommendations Report of the Three Waters Working Group into Representation, Governance and Accountability 09 March, 2022 Kia ora.It was an honour to represent all the people of Northland on this Three Waters Working Group. Gaining new insights into the proposed Three Waters Reforms was helpful to me, as Kaipara District Council had, and still has, many questions about the proposed reforms. The other two District Councils of the North had opted out of the reforms last year, Auckland Council is also out. I was seeking greater understanding, in the hope that I would be able to then share that with others. Being on the Working Group I got many new understandings, but regrettably they sit uncomfortably with me. I now join my fellow mayors of northern New Zealand in not supporting these reforms. Here are some key reflections about the Three Waters Reforms for me now: Strengthen democratic institutions I believed the reforms could be an opportunity for mana enhancement for councils and for iwi, that strengthening our democratic institutions is vital. I’m saddened that I believe the output of the Working Group does not seek to strengthen our democratic institutions or the work those institutions do with and for their people. I will set out my basis for this thinking below. Accountability Accountability is a key matter of the utmost importance in good governance and democracy. In Kaipara District we know the importance of accountability, as our elected Council in 2012 made itself accountable for a bad situation and resigned en masse, to be replaced by a Commission. Local democracy ended for a time in this place, restoration of faith and confidence in elected members was badly damaged and it’s slow to come back from that. With that sensitivity I approach the idea of accountability here with a principled view that public systems must be accountable to everyone when they are for everyone. This Three Waters Review has not demonstrated that will be the case. Participation and belonging The “belonging to everyone” part is core to what makes accountability tick. People who are able to actively engage with and participate with an idea or in a process put themselves into the story, creating a personal sense of belonging with that thing. They share the idea, hold others to account for it. People denied the opportunity to participate have less chance of belonging with an idea or process, no matter how worthy it may be. Te Mana o Te Wai is a worthy idea but with the Working Group recommendations not everyone is able to participate equally. I feel this is both a missed opportunity and a risk. It is a missed opportunity not to have participation and engagement of all people into the same presentations locally of these ideas that clearly affect everyone. Considering the size and scale of problems to be fixed with the Three Waters tasks we need the ideas of everyone to help lift us out of the mud. There’s a risk if people aren’t allowed to participate in the input and creation of all the plans and, instead, plans and directives are imposed on them by others, then they are more likely to reject what’s imposed. Public engagement and everyone being allowed to participate equally in the creation of plans or ideas is simply good governance. If this is done with transparency and integrity then the ideas belong to all the people. And, later on, those people can hold the leaders to account to follow through with those ideas. In these recommendations, with not everyone/only some people participating in the creation of Te Mana O Te Wai Statements as recommended, there can be no accountability in this system, as public accountability is about everyone together not only some people, as a core principle of democracy. The recommendations in the report relating to this are not constructive for our democratic institutions. Trojan Horse As a Doctor of Public Policy, at the end of the work on this policy with the Working Group, I’m reflecting that the Three Waters Reforms are most likely a Trojan Horse for “ending the tyranny of the majority”. I’d never heard of such an idea before being involved in the Working Group but I’ve heard it frequently now and it makes sense of many things that were unclear before. In August 2020 I was interviewed by TVNZ Sunday programme as the Government’s Three Waters Reforms came into view. I said at the time that I believed the Three Waters Reforms were probably a Trojan Horse for something else that wasn’t in view at the time, that we couldn’t see then. Now, here it is. Looking at the proposed reform programme in its entirety, including its new recommendations which have potentially increased the geographic scope away from local broken pipes now to every square inch of New Zealand and 12 miles out to sea, these reforms are becoming about something much larger than infrastructure. Based on the current direction, the Three Waters Reforms bring New Zealand to an extraordinary moment. New Zealand deserves to have a national conversation about what happens next because we have been led to a place between an immovable object and an irresistible force where we can’t stay. While this has started to become clear, I see it as bad policy and a recklessness of the Government to allow this situation to develop. “Ending the tyranny of the majority” is potentially a revolutionary development for New Zealand society, as the majority is where the safe seat of society is found and to up-end that is a very uncertain path. Ending the tyranny of the majority could well mean stopping democratic institutions from doing their best for all the people and I can’t support that. ConclusionsI participated in the Working Group in good faith. There is much that’s good in this journey but at the end it’s become clear to me that while there is a need for some kind of water system reform, this one fails to address the fundamental issue of funding investment in our infrastructure and seeks to adjust governance in a way that limits the ability of all people and communities to engage. In light of this I don’t support the direction of the reforms and believe these Three Waters Reforms are the wrong answer to the right question. At the end of all this journey I’m sad to say these Three Waters Reforms get a “yeah, nah” from me and on behalf of the people I represent I reject these proposed reforms. Nga mihi,Dr Jason SmithMayor of Kaipara District, Chair of Northland Mayoral Forum, Member Council of Communities 4 Local Democracy (C4LD), Member of the Three Waters Working Group on Representation, Governance and Accountability

 Construction sector struggling to retain staff in 'overcooked' labour market
Construction sector struggling to retain staff in 'overcooked' labour market

10 March 2022, 6:49 PM

Desperate construction companies are poaching workers off each other at a destabilising rate.Omicron is making labour shortages worse, with many projects already fiercely competing for staff.Major Auckland firm D&H Steel Construction - which has 100 workers at home out of its 150-strong workshop - blames the government for overcooking the market with too many projects.It had 20 riggers, welders and crane drivers poached in the last eight months."We are being attacked on all sides," said managing director Wayne Carson.In central Auckland, the $4.4 billion City Rail Link (CRL) is struggling to keep workers vital for building stations."The biggest one for us is steel fixers," said CRL chief executive Dr Sean Sweeney.Fixers typically work on a daily or hourly rate, tying steel rebar together, ahead of pouring concrete."I turned up one day in January to a worksite and there was no work happening because the whole steel fixing crew had been poached to another company overnight," Sweeney said.Wellington steel fixer 'Bornch' Davies said he had to raise wages but still couldn't find workers - and the three migrant Filipino workers he employed had been poached."An extra dollar down the road and they were just gone. That was a shame 'cos I looked after them," said Davies.The Construction Sector Accord told RNZ it was talking to Ministers about freeing up entry for critical migrant workers such as steel fixers, though there had been no decision yet.From Monday, the salary threshold for the "Other Critical Worker" border exception will be lowered to 1.5 times the median wage, and there'll be no need to prove the skills aren't readily available here. But that doesn't help fixers, who on $25-45 an hour, might not meet the threshold.The fixers are at the sharpest of the many pinch points in a building sector under seige from Omicron.Waka Kotahi said there had been "significant increases" in labour lost from its road projects across the country in the past week.D&H Steel Construction's major loss of staff early on to Omicron, was "just killing us", Carson said."Production is hugely compromised."City Rail Link had one site with half of workers gone, though overall its loss is 450 out of 2000 workers.Luckily it's not tunnelling just now; but nearby Watercare is, and has had to halt its boring machine, contributing to an "inevitable" delay in completing the project, until 2026, it said.At CRL, Sweeney said Omicron would cause as yet uncalculated but "absolutely material" delays.However, he expected Omicron to peak and pass quickly - in perhaps a month. Resequencing work during Delta last year produced an "amazing"result of losing just six days once the 11 weeks of unworkable Level 4 was factored in, he said.Yet Omicron was now exacerbating a problem likely to have longer legs - worker poaching."The biggest culprits are actually the quasi-government-funded public infrastructure works like CRL," Wayne Carson said."They are high profile, and definitely paying above the market to simply try to secure the limited resources available in the market."An extra $4-$6 an hour was being offered; matching that was a counterweight to having a forward-order book that had never looked better."We can't bring resources in from offshore, Government has... really overcooked it in our opinion, which has created a perfect storm of massive demand," Carson said."All that might be achieved at the end is a short term unsustainable increase in labour rates and a hell of a lot more spending offshore to try to resource projects."Sean Sweeney said poaching had been an acute problem for the last six months. However, relief was in sight."The bigger issue for us is steel fixers tended to come from... the Philippines, and on short-term visas, and that all stopped," he said."Now, that's all going to free up again with the changing of the borders. So even the current problem... it's going to go away in the next three to six months."The Omicron squeeze is not landing evenly, with designers and engineers less hard hit as they can work remotely more."We're not seeing major impacts in terms of projects yet," said head of the Association of Consulting and Engineering Helen Davidson."Businesses are managing it well, they have the right procedures in place."However, Construction Sector Accord transformation director Dean Kimpton, said of the labour pressures, "I think it's a foretaste of what will come".The forecasts were for a shortfall of 120,000 construction workers by 2025, and the only way through was to build confidence that projects would happen, so companies would invest in people and technology, Kimptons said."The sector is a confidence sector."He is in monthly forums with Government and scores of industry leaders, with the last two focused on Omicron.They had raised the problem epitomised by steel fixers - of the immigration bar confronting badly needed workers, who might nevertheless not meet the threshold of earning 1.5 times the median wage."That's an area where the accord is engaging with Ministers."There's been no decision yet, to be fair, but the Ministers are well aware of our concerns," Kimpton said.'Bornch' Davies would hope so.He has had to patch up his 10-man steel fixing crew hit in Wellington, by using five from a crew his brother has."Since they shut the borders, you know, you can't get any migrant workers. I've been trying to get steel fixers for the last three years... you just can't get them. It's nationwide."

Fuel prices expected to keep climbing - Grant Robertson
Fuel prices expected to keep climbing - Grant Robertson

09 March 2022, 10:15 PM

New Zealanders are being warned to expect fuel prices to keep climbing as long as the war in Ukraine continues.Petrol is now hitting $3 per litre in some regions.Deputy Prime Minister Grant Robertson told First Up he did not see prices going to $4 per litre "but I don't think we've seen the end of petrol price rises"."We'd seen a 30 percent rise in the last quarter of the last year ... that was before the Russian invasion of Ukraine."We do need to understand that the longer the conflict goes on in Ukraine, the biggest impact economically for New Zealand will be around the cost of fuel."He said every cent collected from petrol tax went straight back into roads, so making changes there would have long-term consequences.Robertson acknowledged there was a lot of pressure on households' finances."We've got huge pressure to build roads, to reduce congestion in Auckland, so there's a balance to be struck there."Automobile Association principal advisory Terry Collins said the short-term outlook was that things would only get more expensive.He told First Up the last time barrel prices were this high was back in 2008, around the global financial crisis.He said last week a barrel of oil was $92, today it is $128 - a 37 percent increase in a week."I am seeing 91 petrol in Wellington ranging from $3 and to $3.33."Collins said generally larger towns and cities had cheaper fuel.He said the high price of petrol would be reflected in higher prices across all products that were made using petroleum like plastic, tyres, and in the pharmaceutical industry.And fuel retailers are rapidly increasing prices at the pump, as sanctions prevent the purchase of Russian crude oil.Russia is the third largest oil producer in the world; and the BBC says oil and gas made up 60 percent of Russian exports in 2019 and funded about 39 percent of the federal budget.Now, energy companies are seeking assurances they are not inadvertently funding Russian President Vladimir Putin's regime.Gull general manager Dave Bodger told Morning Report about 5 percent of world crude oil supply would become unavailable for countries that were abiding by the ban."It's effectively stopped now for future flows."But does Iran come online? They have large floating storage. Is there a leak of Russian crude into the likes of China and India, and that enables supply to flow to other places."He was certain that supply would flow into Aotearoa."I think overall from the New Zealand point of view, supply will continue to flow."This is about a ... very unpleasant price effect, but supply will continue to come through."He said he was optimistic about refined oil prices a few days ago when they stabilized in Singapore for a day."Let's cross fingers that there is some stabilization ... but I'm not optimistic at this stage, unfortunately."He was hoping prices did not reach $4 per litre.Bodger said it could take up to five days for the impacts of barrel costs to reach the fuel pump here.However, looking at world markets Reuters reported that energy, which has been the standout sector performer in 2022, fell 4.3 percent as benchmark brent crude slid to about US$110 a barrel from over US$130 earlier in the week.And there are reports that Iraq and the United Arab Emirates are ready to increase production to offset bans on Russian imports.

Advocates upset with tame reforms mooted for grocery sector
Advocates upset with tame reforms mooted for grocery sector

08 March 2022, 7:19 AM

Critics hoping for sweeping changes to the supermarket sector to bring down the cost of groceries are unimpressed with the Commerce Commission's final recommendations.Its final report into the $22 billion industry out today said Foodstuffs and Woolworths have been making profits at the expense of consumers, small food retailers and manufacturers.The commission's report highlighted that New Zealand's retail grocery prices appeared comparatively high by international standards and the profitability of major retailers also appeared high.The government is not ruling out forcing supermarket chains to sell stores if the recommended changes fail to reduce prices for consumers.The Commerce Commission's preliminary report floated some big ideas - forcing the big two supermarkets to sell some stores, and even possibly government intervention to get a third operator into the market.But its final recommendations out today are much tamer - making more land available for new stores and improving access to wholesale supply for third party retailers.Changes may not reduce prices - Food and Grocery CouncilMeanwhile, Food and Grocery Council chief executive Katherine Rich said the changes tipped the balance back towards suppliers."Certainly over the last 20 years we've just seen a shift of risk and cost onto suppliers and profits to the retailers and bad behaviour with that as well."Ideally, there would be four or five major players in the sector rather than the duopoly, Rich said.Until there was genuine competition there might not be much movement on prices for consumers, she said.And the government is not ruling out forcing supermarket chains to sell stores if the Commerce Commission's recommended changes fail to reduce prices for consumers.Commerce and Consumer Affairs Minister David Clark said he unequivocally accepted the findings, but would go further if needed.He told Checkpoint that as a result of government pressure, the supermarkets had promised to make their pricing more transparent, end land banking and look at introducing a code of conduct."Those things weren't happening before, the supermarkets have accepted them ...and that will mean that people get fairer prices and a more competitive sector."He expected that if the supermarkets acted immediately on recommendations such as making loyalty programmes and promotions easier to understand, it would lead to cheaper prices.Asked why the government did not force the main two players to sell some of their assets so that a third retailer could be set up, he said it was not something that could be achieved overnight.A new big player would need to have access to the wholesale suppliers who were working with Woolworths and Foodstuffs at present. Clark has asked for a new regime to be set up so that this could happen.Clark denied that the final report meant that Labour had broken a pre-election promise to break the supermarket duopoly and fairer food prices."There is a very big sea change in the way those supermarkets are behaving."He expected to have a new law introducing changes before Parliament this year."This stuff is too important not to get right for consumers."The supermarkets respondWoolworths said it was good to have clarity about the path ahead.Managing director Spencer Sonn said it supported the recommendations."Like the government, we want New Zealanders to be confident that our supermarkets are good places to shop, and that as a business we are good to work with."As we've heard through the market study process, we know that some changes are not only required, but expected of us."Foodstuffs North Island chief executive Chris Quin said competition could work better for consumers."As a result, we accept that the sector does need to change and we are committed to our role in doing that."Work to implement the recommendations in the final report is a priority for us and has already started."We've been clear throughout this process that [Foodstuff's] strategy is to become one of the most customer driven retailers in the world. This process has shown that we need to do more and we will continue to focus on improving value for customers, investing in innovation and delivering on our customer promises."

Auckland property values soar by up to 59 percent
Auckland property values soar by up to 59 percent

08 March 2022, 2:09 AM

Aucklanders can see their updated property values from today, with homes in Great Barrier Island soaring by 59 percent.Auckland Council valuations show an average increase of 34 percent since 2017, with individual information by address found here.The valuation process is a statutory one, used to work out each property's share of the city's rating burden, which will be carved-up using the new data next year.It's usually every three years but was deferred in 2020 due to Covid-19 uncertainty. An audit conducted by the Office of the Valuer General in 2021 determined that the council and its valuation partner Quotable Value needed to do more work on the values before they would be ready for release, but the figures have been certified since that work was completed.The property valuations reflect the likely sales price in June last year and will be used to determine the share of rates next year.It's therefore a double edged sword - residents' homes are worth more, but for some that could bring with it a big hike in rates.The council says local board areas which saw high rises - between 41 and 49 percent in Māngere-Ōtāhuhu, Henderson-Massey and Maungakiekie-Tāmaki - had all undergone intensification in recent years.Its chief economist Gary Blick said the effects of the Unitary Plan implemented in 2016 can be seen in the valuations."We started to see these impacts in the 2017 revaluation but realistically the effect is showing now," he said."The value increases have moved out from the city centre, which is what we would expect as housing in those areas becomes more desirable."Standalone dwellings have increased by 34 percent while increases for already intensified housing types like apartments (8 percent) are slightly lower.Waitematā, which has a large share of apartments, has a lower overall average increase of 15 percent.Group Treasurer John Bishop explains that percentage increases aren't the only consideration. "It's worth noting that though we are seeing the highest value increase on Aotea Great Barrier this year, it is still one of the lowest valued areas in the region at around 43 percent of the average".Council's financial policy manager Andrew Duncan told a briefing yesterday it was not yet clear whether Three Waters reforms would change its plans to charge a targeted rate."Council will be working with the government to carry out the water reforms in the way directed and final decisions by the government haven't been announced yet, they're still working through it. And so the final form of the water reforms will then affect what the council does with its various funding instruments for stormwater."

Viv Beck standing for Auckland mayoralty
Viv Beck standing for Auckland mayoralty

06 March 2022, 8:55 PM

Heart of the City chief executive Viv Beck is standing as an independent candidate for the Auckland mayoralty at this year's local government elections.In a statement Beck said she was standing for mayor because the city needed "someone with local and central government experience, business understanding, and someone who can work constructively with people to get the best results for Aucklanders".The city was in an important time and needed the right choices made for its future, she said."There are many great things about our city. However, the reality is that we have crippling congestion, we have people stuck in a housing emergency and our streets are less safe. At the same time, Auckland has borne the brunt of the Covid-19 pandemic with many of our small businesses and communities struggling to survive."Now, more than ever, Auckland needs a mayor with the passion, determination and skills to get things done. To be Auckland's greatest champion, to tackle our biggest challenges while making sure we spend wisely as we invest in the future of Auckland."The supercity we were promised is ours to make happen. We can't accept that things are as good as they get. Aucklanders deserve better. They deserve more say in decisions that affect them, transport that meets their needs, affordable housing and safe streets. They need to see that their rates are delivering value in their community."She would work across across the city's diverse communities to earn their trust and confidence, she said.Efeso Collins, Leo Molloy and Craig Lord are also confirmed candidates. Collins, a councillor representing Manukau since 2016, has been endorsed by the Labour Party.Two-term mayor and former Labour Party leader Phil Goff last month confirmed he would not seek re-election.The local government elections will be held on Saturday 8 October.

New Zealand borders set to reopen this year but could be bumpy road ahead - Tourism NZ
New Zealand borders set to reopen this year but could be bumpy road ahead - Tourism NZ

05 March 2022, 10:08 PM

The head of Tourism New Zealand says 2022 looks like the year of reopening, but he acknowledges it will be a bumpy road ahead. The borders have been closed for nearly two years with only a few attempts at a trans-Tasman bubble.In response - and at the request of the then tourism minister - the organisation began honing in on the domestic market, including launching the campaign 'Do Something New, New Zealand'.Its chief executive René de Monchy said Tourism New Zealand would continue to play a role in domestic marketing and supporting the industry and regions, but its primary focus would be back on international markets."The group of people that are most likely to travel outside of the peak season and are most likely to travel furthest afield in New Zealand are New Zealanders so we'll be certainly focused on that as well, continuing to entice ourselves to travel around this beautiful country,When it came to enticing overseas travellers back, he said removing self-isolation requirements would be key."As we think about off-shore customers and off-shore trade partners, absolutely that's the news they're looking for is when those isolation requirements will come down so that people start to have the confidence to make the bookings for a trip to New Zealand."The announcement of the phased border reopening meant the long haul travellers would have time to start preparing and be able to confidently book their summer trips, he said.De Monchy did not anticipate that the lack of certain border reopening dates would impact future bookings from visitors, despite the uncertainty causing concern in the tourism industry.In recent weeks, several tourism operators have described the state of their industry as decimated.He acknowledged the hit the industry had taken and that scaling back up would be a challenge, but said it was a positive challenge."I think the industry will be focused on reopening, coming out of being dormant, reopening their doors, rehiring and hiring new staff."Bear in mind for some of these operators, they're going to have to start hiring people and spending more money before they actually start getting money through their tills so it's going to be quite challenging for them to get restarted."Last year, Tourism Minister Stuart Nash unveiled his vision for the future of the industry, including attracting more high-value tourists and a greater focus on sustainability.It was a vision that de Monchy said was playing a strong role in how Tourism New Zealand moved forward and its marketing."We talk about high-quality visitors, so part of that is going [to be] how much money do they have to spend when they come here on a holiday."But on that is also, what time of year do they like to travel, do they want to go off the beaten path, and it's really about having a portfolio of different markets and audiences that you can promote within that."For Tourism New Zealand, part of their plans was a ramp up in travel trade with the organisation training up to 80,000 travel agents to ensure they were ready to sell Aotearoa, he said.Pre-Covid, close to three quarters of arrivals in New Zealand from long haul markets would book that travel through an intermediary.

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