Best of Business

The Wattie's restructure is likely to have a significant economic impact, where more people could be affected by the shutdown.  Heinz Wattie's has proposed closing manufacturing facilities in Auckland, Christchurch and Dunedin, and a Hastings packing facility - impacting about 350 jobs.  The Country's Jamie Mackay explained how the farmers and growers could be affected by this change.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

Former Reserve Bank economist Michael Reddell says it's getting harder to know how much the economy's growing or shrinking. Stats NZ estimates GDP rose 0.2 percent in the December quarter, below most forecasts. But Reddell says it's also revised the figures for previous quarters. He says the 0.2 for December could still potentially be revised up as high as 0.5 percent, or as low as minus 0.1. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The conflict in the Middle East is continuing on for another week, and it's got experts concerned about the economic impacts. Iran's blocking shipping in retaliation for the US and Israel bombardment - sending oil prices spiking. Milford Asset Management expert Michael Luke explained how markets have continued to drop. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Over in Australia, the Reserve Bank bumped the OCR up to 4.1 percent, up by 0.25 percentage points. This is the second significant hike it two months, and it's got experts speculating about what this means for the economy on the whole. HSBC chief economist Paul Bloxham wondered what this could mean for other global markets.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Resources Minister is insistent Crown funds should help heat the geothermal sector. A Government strategy has been released on its plan to double the use of geothermal energy by 2040. It's also ring fenced $50 million from the Regional Infrastructure Fund for the development of geothermal energy projects.  Resources Minister Shane Jones says it's a worthy investment. "The Crown stepped up to the plate in the 1950s, did an enormous amount of drilling - not always successful, but a number of those drill holes have turned into major electricity suppliers."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's fears there'll be no slowdown any time soon to the rapid rise in food prices. Stats NZ figures show they rose 4.5 percent in the year to February. Steak, mince and chocolate all shot up more than 20 percent. Infometrics head, Brad Olsen, says the spike in oil prices because of the war in Iran will do nothing to help.  "We know that not only oil prices are key to transport costs, but also just the production. Now if you're a farmer, you've got to use diesel to move stuff around to run the tractor and everything else. So this is going to hit." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Australian Reserve Bank has increased interest rates by 0.25 percentage points, up to 4.1 percent. This is the second month the RBA has lifted rates, with the bank hiking up to 3.85 percent in February. Australian correspondet Murray Olds says the vote to increase rates was divided, but there's concerns about inflation brought on by the ongoing crisis in the Middle East.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's praise for Government's aims to smooth the process for venues to serve alcohol during major televised events like the Rugby World Cup. The bill proposes a raft of changes, includes a permanent mechanism to let pubs operate outside licensed hours during major events. Sam MacKinnon from Hospitality NZ explained how these changes will give Kiwi businesses more flexibility. LISTEN ABOVESee omnystudio.com/listener for privacy information.

What I found more outrageous on the internet yesterday was yet another example of this country's propensity for doling out jobs for the boys and indeed the girls. Every political party does it, every government does it, rewards the party faithful and their generous donors and backers with cushy sinecures. Grafter-in-chief would have to be Trevor Mallard's posting to Dublin – although would it? Because there are plenty of other opportunities to point the finger. Look at Simon Bridges, the ex-National Party leader was appointed as the new chair of the New Zealand Transport Agency, Waka Kotahi, in March 24.  There are many, many examples of political cronyism. And in the latest one, a KiwiRail director has quit the board two years early after only a couple of months in the role. That's not the news. What is news is that he was appointed to the board at all given his conflict of interest. Scott O'Donnell is a big player in trucking and freight. And given some of the 10 companies he's involved with supply services to KiwiRail, what on earth was he doing being made a director of KiwiRail? The conflicts required Treasury to put a management plan in place.  The conflict of interest mitigation plan contained seven measures to manage conflicts, including recusing himself from board meeting discussions where there was a conflict of interest. It was simply unsustainable. He was being paid to do a job that he simply could not do because of the conflicts of interest. He ended up leaving meetings early and missing agenda items and, you know, became apparent that this wasn't going to work. He'll be stepping down next week and thanked for his service. But he should never ever have been appointed in the first place.  So not only are there existing conflicts of interest, he's one of four directors of HW Richardson's Transport Tapunui, which donated $20,000 to New Zealand First in July 2024. The company's also involved in a project that recently received a government regional infrastructure loan, Shane Jones slush fund of $8 million. And then he's appointed by Winston to the board of KiwiRail. It's just another example and it's so common that it barely registered. I mean, I have to give credit to Radio New Zealand who were following this all the way through and BusinessDesk pointing it out going, No, no, no, this isn't good, this isn't right, this doesn't work.  Do we have so few people in this country of five million who can do governance jobs and chief executive jobs that we have to accept there'll only be one or two degrees of separation, if that? That there is always going to be a conflict? If you think of the five million of us, how many of us could do a chief executive job or be on a board, take a director's role on a board?  Look at the yawning vacancies that we have for our major companies, with a new one with Fonterra now. I mean, Miles Hurrell could walk into about 20 jobs in this country right now, either in sports governance or in business. There are so few people able to do the job. Do we have to accept that there is going to be a conflict of interest in just about every single appointment made?  Do more of us have to put up our hands and do the directors' courses so that you can find maybe somebody somewhere who doesn't, hasn't made a donation or hasn't worked or hasn't been a politician who can then do the job? Or are we just simply too small?  How we haven't appeared on the dirt list of corruption is beyond me. It shows either a really, really principled closed doors approach to business in this country, being able to separate your different business interests and focus on them solely and leave everything at the door when you go in, or we just haven't uncovered it yet. I'd really love to see an end of the appointments of jobs for the girls and the boys, but then who would do the job when you look at the vacancies that exist right now. See omnystudio.com/listener for privacy information.

The Government is considering its options if petrol prices keep rising, but the head of Freightways is warning people not to panic. The conflict in the Middle East has entered its third week, but the Finance Minister has ruled out measures like reducing the fuel excise. Freightways CEO Mark Troughear says there's plenty of fuel in the country and more on the way - and there's plenty of supply to keep things going.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

The conflict in the Middle East has entered its third week and there's concerns about what it could do to the markets. Iran's still restricting movement through the shipping strategic choke-point as part of its retaliation for the relentless bombing by the US and Israel. Harbour Asset Management expert Shane Solly explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's hopes the war in Iran doesn't reverse gains in our retail sector by making shipping more expensive.  Stats NZ data shows back-to-back increases in electronic card spending for January and February.  Retail NZ chief executive Carolyn Young says it's not happened in a long time.  She says it would be a shame if the conflict dampens the upward trend. "Let's hope it's a short, sharp thing and we can get back to business as usual." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Government's yet to make a call on whether New Zealand would ease sanctions on Russian oil, as the Iran war affects shipments. The US has eased some of its sanctions, as its barrage on Iran continues - alongside Israel. Crude oil prices have skyrocketed since Iran stopped ships traversing the Strait of Hormuz. Finance Minister Nicola Wills is urging Kiwis not to panic, as there's plans in place to keep households supported.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealand Winegrowers are on Cloud Wine over proposed Government changes to alcohol laws. They include allowing licensed premises to meet legal obligations by stocking zero-alcohol drinks. Currently, licence holders must stock 'low alcohol' products containing no more than 2.5 percent alcohol.  Chief executive Phillip Gregan says it's a common sense change. "Frankly, I'm not sure that there are any wines less than 2.5 percent, they tend to be slightly higher than that, or just zero." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The ongoing conflict in the Middle East has sparked concerns about global oil shortages, domestic rising petrol and diesel costs, and it's got experts speculating. The Government is working to find a solution, with Energy Minister Simon Watts meeting with his counterparts in Tokyo for the Indo-Pacific Energy Security Forum to discuss the issue. Nathan Surendran is the chair of the Wise Response Society, and he says the conflict is causing oil refineries all over the world to slow down production.  "There is the National Fuel Plan - the Government has, effectively, a staged incremental rationing type process...it should signal that rationing is a potential possibility, because signalling it gives people time to adjust mentally."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

One expert has suggested Jetstar won't follow Air New Zealand in cutting upcoming domestic flights. The airline plans to cancel about 1100 flights over the next six to eight weeks because of fuel price hikes - impacting about 44,000 passengers. It's already raised fares to help cover costs. Board of Airline Representatives NZ executive director Cath O'Brien, says Jetstar's unlikely to do the same because Air New Zealand's domestic network has a wider spread. "They have a wholly different problem than Jetstar, which is operating trunk services and jets only." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The US President's social media posts suggest he's worried about the price of oil, as the US and Israel bombard Iran into an 11th day. More than 1700 have been killed in the Middle East - most in Iran, and hundreds in Lebanon. Despite this, markets appear to have calmed down following the initial shock, and Milford Asset Management's Brendan Larsen explained why. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The balance sheet is looking strong for Briscoe Group, which managed to score a few goals late in the game.  The retailer's posted record annual sales of close to $800 million, for the year ending January 25th.  Its homeware brand Briscoes saw 1.42 percent sales growth - while Rebel Sport trailed with growth of 0.13 percent. Managing director Rod Duke says the business just changed its promotions approach slightly.  "Generally, the market from about Black Friday just eased up a bit. People just got a bit more confident." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Public health experts have noticed this latest Covid wave is worsening as fewer Kiwis are getting vaccination boosters and tests, and it's renewed debate about sick leave. Wastewater analysis from PHF Science shows that the number of cases is at the highest rate it's been for over six months, and Health NZ says there's been 50 hospitalisations and 19 deaths from the virus this week. Otago University associate professor Paula O'Kane says it's important to let sick leave accrue every year - and stay consistent as Kiwis move jobs. "It would give people access to better sick leave, it might discourage misuse of sick leave, and when people are actually sick for a longer period of time, they're better covered. So it would really help to deal with issues around people's long-term illness, for example."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's predictions Heinz Wattie's won't be the last to shutter operations this year. It's proposing closing three manufacturing facilities in Auckland, Christchurch and Dunedin, and packing operations in Hastings - with 350 jobs at risk. It also plans to phase out sales of products including frozen vegetables, impacting growers. The Employers and Manufacturers Association's Alan McDonald says others will go. "We keep hearing rumblings of others getting ready to exit, significant-sized manufacturers as well as smaller ones. De-industrialisation's been happening, prompted by some very high electricity prices."  LISTEN ABOVESee omnystudio.com/listener for privacy information.