Under the Spotlight - Archived Stories

December 2010

Key warns of major blowout in deficit     Prime Minister John Key has warned that today's half-yearly opening of the books will reveal a "bigger hole" than the $13.3 billion previously forecast.  More.

OCR unchanged at 3.0 percent, interest rates will rise slower     The Reserve Bank has left the Official Cash Rate (OCR) unchanged at 3.0 percent and indicated that interest rates will rise at a slower pace than indicated in September.  This reduced confidence is attributed to the fact that economic growth appears to have moderated.  This is due to below average corporate investment, weak household spending, flat household credit still and housing market activity slowing further.  To view the full report go to the RBNZ website.

Petrol prices highest since 2008     Petrol prices are at their highest in two years.  After a four cent increase at the start of December, 91 octane is now $1.89/litre and diesel $1.29/litre.  More.

Dairy cow population overtakes humans     The nation's milking cow population has overtaken the human population - the 4.4 million cows now outnumber the 4.39 million New Zealanders.  More.

November 2010

WTO verdict backs NZ     Trade minister Tim Groser has welcomed a World Trade Organisation (WTO) ruling that says Australia's 90-year-old restrictions on New Zealand apples are unscientific and break international rules.  Australia imposed the restrictions in 1921 to protect local apple trees from fireblight, a pest that also affects pear trees and rose bushes.  More.

How to avoid mistletoe mishaps     As we move into December, it is hard to ignore the fact that Christmas is nearly upon us.  Indeed, if your office isn't in the Christmas spirit yet, Christmas carols and decorations in the shops make it hard to forget.  For many organisations, the annual Christmas party is an opportunity to thank staff for their hard work throughout the year.  More.

Threat of credit downgrade unless NZ cuts overseas debt     Standard and Poor's has put the country on notice of a possible downgrade to its credit rating - which would be likely to raise interest rates across the board - unless it reduces its reliance on imported savings.  More.

Bumper kiwifruit crop despite disease     Next year's kiwifruit crop could be bigger than this year's, despite the billion-dollar industry grappling with a bacterial disease.  Zespri director of corporate and grower services Carol Ward said based on present information there would not be an impact on next year's crop volume.  More.

IRD chases Serepisos for $3.5m     Terry Serepisos is facing fresh legal action, with the Inland Revenue Department seeking to liquidate five of his companies - including the one which owns the Wellington Phoenix - over $3.58 million in unpaid taxes.  More.

Cost of sick staff could be $13b     Sick days and employees who battle through illness but with reduced productivity are costing the economy billions of dollars every year, a Treasury paper says.  However, the Government says its proposed changes to sick leave are unlikely to reduce the cost.  More.

Kiwifruit fears confirmed     A devastating bacterial Kiwifruit disease has been confirmed in New Zealand, with the industry planning a series of emergency meetings.  The Ministry of Agriculture and Forestry said scientists had confirmed the canker, named PSA, was present on a number of vines tested from a Bay of Plenty orchard when it was first discovered last Friday.  More.

Gold prices hit record high     Gold has powered to an all-time high above US$1,400 an ounce, despite a bounce in the US dollar, as investors sought an inflation hedge from the Federal Reserve's massive bond-buying programme. Gold has risen almost 6 percent since just before the Federal Reserve detailed its plans last week to buy US$600 billion ($760 billion) worth of Treasuries to revive the economy.  More.

Chocolate:  Worth its weight in gold?     The world could run out of affordable chocolate within 20 years as farmers abandon their crops in the global cocoa basket of West Africa, industry experts claim.  More.

Wellington houses at record high     The average asking price for houses in the Wellington region hit a record high of more than $455,000 in October despite homes taking longer to sell.  However, selling prices nationally have not risen since early last year and are about 5 per cent below the October 2007 peak.  More.

Farmers welcome gift duty demise     Gift duty is to be abolished after the Government concluded the tax has high compliance costs but provides little protection for creditors and little revenue.  In June the Government said it would abolish it if concerns over the protection that gift duty offered creditors or social agencies calculating entitlement for rest home or health care subsidies could be addressed.  More.

Hobbit fans warned we could lose it all     Special effects company Weta Digital risks losing lucrative post-production work if The Hobbit goes overseas - with no guarantee it will be involved at all.  United States film company executives arrived in Wellington yesterday for talks with director Sir Peter Jackson to decide the $630 million films' future.  More.

NZX watching deal with intereset     New Zealand stock exchange operator NZX is not concerned it will be left isolated in the wake of the A$8.4 billion takeover offer by the Singapore exchange for its Australian counterpart, announced yesterday.  The Australian Securities Exchange and Singapore's stock exchange have agreed on the first major consolidation of exchanges in Asia-Pacific.  More.

October 2010

SFO investigates SCF     The Serious Fraud Office has launched an investigation into South Canterbury Finance.  Chief Executive Adam Feeley said after inquiries by the SFO's new fraud detection unit, the SFO had grounds to suspect that a number of related party transactions involving SCF may have involved false statements or other fraudulent conduct.  More.

Kiwis head to US, Britain to cash in on currency     More New Zealanders are holidaying in Britain and the United States because of favourable exchange rates, say travel agencies.  House of Travel retail director Brent Thomas says outbound travel by Kiwis to those countries is up by 30 per cent on last year.  Statistics NZ figures show 1800 more New Zealanders left on trips to the United States in August this year than during the same month in 2009, while 1600 more went to the UK.  More.

New Zealand company designs for Starbucks     A Wellington company's innovative fabric made from wool and recycled coffee sacks is to be introduced at 8000 Starbucks stores worldwide.  The new material - WoJo, made with 70 per cent New Zealand wool woven with jute from recycled coffee sacks - was to be unveiled in London soon.  More.

RBNZ concerned about fraudulent 'banks'     The Reserve Bank is concerned many of the approximately 1000 registered New Zealand companies calling themselves "overseas financial institutions" are running banking operations which may be fraudulent, Commerce Minister Simon Power says in a cabinet paper obtained by Fairfax Media.  More.

Wearable Art boosts Wellington coffers     A wining, dining shopping sisterhood in Wellington for the Word of Wearable Art has filled the tills of retailers, hotels and restaurants, and looks to have topped last year's spending.  Last year's show pumped about $15 million into Wellington and next year's event could deliver a $20 million boost for the capital.  More.

Complaints roll in to watchdog on GST rip-offs     More than 30 people have complained to the Commerce Commission believing they have been ripped off by businesses using GST as an excuse to charge higher prices since the 2.5 percentage point rise on 1st October.  Commerce Commission spokeswoman Allanah Kalafatelis said the majority of complaints appeared to be about prices rising much higher than 2.5 percent.  More.

September 2010

Scrapping GST on produce too complex - retailers     Removing GST from fresh fruit and vegetable will be too complicated, retailers say.  Foodstuffs South Island chief executive Steve Anderson said he expected shoppers would support the removal of GST from fresh produce.  However, he said such a move would provide many challanges.  More.

Bad weather has fruit and vege prices soaring      Fruit and vegetable prices are skyrocketing in Wellington, as the effects of bad weather hits customers in the pocket.  Green vegetables have been in particularly short supply, with shop owners in Wellington saying heavy rain and wind throughout the country has hit crops hard.  More.

Some firms may hold prices as GST rises     Businesses gearing up for the GST increase on Friday are finding ways to impose the increase or even absorb it.  A survey by MYOB accounting systems shows many consumers believe GST will have a big impact on household spending when it rises from 12.5% to 15%.  Of more than 1,000 households, 85% expected it to make a difference and almost 60% believed it would be significant.  Over half believed the impact on businesses would be sizeable.  More.

Rate cuts help home affordability     Falling fixed interest rates have helped make homes more affordable than they have been for a year, according to a home loan affordability survey.  A drop in the average two year fixed rate to 6.78 per cent from 6.98 per cent a month earlier had more than offset the slight rise in the median house price, the report by Roost Mortgage Brokers said.  More.

Christchurch economy might boom like Napier     Canterbury gross domestic product is likely to plummet 2.1 per cent in the September quarter, because of the 7.1 earthquake, an economist says, but the rebuild could lead to a boom.  The 1931 Napier earthquake provides some historical context to a recovery from the September 4 quake, in the view of Westpac senior economist Dominick Stephens.  More.

GST Countdown:  Don't be caught short     Firms should upgrade software to avoid costly errors.  Despite media coverage and public commentary on the tax changes, a number of businesses may have underestimated the preparation needed to ensure a smooth transition.  More.

Telecom's separation still leaves network monopoly:  MED     Telecom's proposal to carve out its network business in a bid to tap the government's ultra-fast broadband fund will still leave a network monopoly, according to the Ministry of Economic Development.  More.

Tech Sector tipped to top dairy despite dip     A 15 percent drop in Fisher & Paykel Appliances' revenue pushed the total export revenues for New Zealand's top 100 technology companies below the $5 billion mark for the past year.  More.

Bridgecorp investors still waiting     Receivers chasing insurers on 19 loans, many of which are disputed, but no date for payout.  More.