Best of Business

Lower-than-expected tax revenue is causing the Crown accounts to dip further down. The IRD reportedly received $69 million in the previous tax year, sparking concerns about interest limitations. NZ Herald Wellington business editor Jenee Tibshraeny says it's currently unknown why the Government brought in less tax revenue, but $69 million is relatively small in the grand scheme. LISTEN ABOVE   See...

Don't throw out your broccoli stems if you want an an extra source of nutrition.   More than 280 tonnes of stems are being thrown out every year - the equivalent of a blue whale. This is combined with the almost $3 billion worth of food tossed out each year - more than $1500 per household. LeaderBrand Chief Executive Richard Burke told Mike Hosking the stem is a good source of nutrition. He says i...

Fletcher Building insists it's in good shape, despite lower profit. It's dropped its forecast to about $800 million down from its February prediction of up to $855 million. CEO Ross Taylor told Mike Hosking residential builds have been a bit patchy lately, but the commercial sector is doing just fine. He says in the bigger picture, less and less land is the pressing issue. The answer to that is bu...

Only about half of kiwifruit growers expect to break even this year, amid a particularly bad harvest. Production this year is down about 35 million trays on 2022, mostly due to storms. Kiwifruit Growers CEO Colin Bond told Kate Hawkesby there are ways to mitigate the risk like frost protection and artificial shelters. He says the quality of this year's harvest is higher than last year. LISTEN ABOV...

Fletcher Building have downgraded their profit forecast, citing a slowing market and extreme weather. The building and construction company lowered their forecasted operating profit to $800 million, down from February's $855 million. Milford Asset Management Portfolio Manager Frances Sweetman says this figure looks like a material downgrade, but it's not as negative as it suggests. "Management has...

The Government confirmed they have no plans to inject capital into Kiwibank to make it more competitive with the bigger banks. The Commerce Commission is set to investigate banking sector competition and barriers new market competitors face. NZ Herald Wellington business editor Jenee Tibshraeny says the Government, as the owners of Kiwibank, will need to inject more to meet regulatory requirements...

Ruapehu Alpine Lifts is officially in liquidation, after creditors wouldn't agree to let other ski operators take over operations on the mountain. The company appeared at the High Court in Auckland a short time ago. Whakapapa Holdings Chief Executive Dave Mazey is still hopeful his equity partners can stitch up a deal post-liquidation. He spoke with Simon Barnett and James Daniels. LISTEN ABOVE Se...

There's a perception that a generation of New Zealand homebuyers are greedy, acquisitive and are locking young Kiwis out of the property market. Why buy another house when you already have one? Some economists have urged New Zealanders to put any savings into the share market so that local businesses can grow, but if you look back at this country's economic history; you can perhaps understand why...

If you are really interested - and that in part is the problem - are we really interested? We all moan about banks. Banks are big and they are successful, but are they really the robber barons the critics make them out to be? Well, do we have a market study for you. A preliminary paper by August, that will give us a bit of a steer as to what we are looking at. Followed by the full report in August...

A strawberry shortage is looming. Due to damage from the extreme weather and continued labour shortages, it looks like there will be a lack of strawberry plants to sell when the season kicks of in July and August. Last year 13.5 million plants were sold, but this year we are looking at around 9 million. New Zealand Berryfruit Propagators chair and retired strawberry grower Peter McIntyre joined Mi...

Banks are standing by their right to make a profit ahead of a new Commerce Commission inquiry. The Government has ordered the commission to conduct a "market study" into the banking sector's fees and profits, with a report due back in August next year. Further details of the scope and timeline of the investigation will be released this afternoon. Banking Association Chief Executive Roger Beaumont...

A last minute saving-grace has come as the Ruapehu skifields are on thin ice. A government and council-backed option for Whakapapa Holdings and Pure Turoa to take ownership was not voted through yesterday. Whakapapa Holdings Chief Executive Dave Mazley told Mike Hosking he expects Ruapehu Alpine Lifts to be liquidated after court today. Pure Turoa says as liquidators, PWC will go forward with purc...

Uncertainty is plaguing Ruapehu. A bid to liquidate Ruapehu Alpine Lifts is being heard in the High Court in Auckland this morning, dubbed a 'worst case scenario' by some. The Government and local council's preferred option, to allow two companies to take over skifield ownership, did not make it over the line in meetings yesterday. Ruapehu Mayor Weston Kirton told Kate Hawkesby everyone is waiting...

New Zealand's major banks are set to go under the microscope. The Government has confirmed a Commerce Commission probe into banking sector competition and barriers new market competitors face. The Commission will also investigate banks’ profitability and other financial measures. BusinessDesk managing editor Pattrick Smellie says history indicates this probe won't deliver as much as people hope fo...

Ruapehu Alpine Lifts is heading towards liquidation weeks out from the 2023 ski season. Creditors didn't come to an agreement on the company's future today, which went into voluntary administration last year. A hearing is set down for tomorrow at the High Court in Auckland. Ruapehu Stakeholders Association chairman Jason Platt says this scenario was exactly what the organisation expected. "This on...

The Government says there's no quick fix for the banking sector. It's ordered the Commerce Commission to probe bank profits and competition. A preliminary paper's due in August, and a final report a year later. Commerce and Consumer Affairs Minister Duncan Webb says simply pumping money into Kiwibank isn't the answer. "There might be structural issues in the market. It's not my call where the capi...

A high-powered microscope will be trained on New Zealand's banks. The Government has just confirmed a Commerce Commission probe into banking sector competition. Top of mind will be understanding competition issues and barriers new market competitors face, as well as looking into consumers' ability to switch banks. The Commission will also investigate banks’ profitability and other financial measur...

Four new adjustments to the Emissions Trading Scheme have been proposed for consultation - all of which aim to make it less attractive for businesses to offset their carbon emissions using forestry. The most drastic proposed change is to take forestry out of the scheme entirely by creating two separate markets to form different incentives for gross emissions reductions and emissions removals - mea...

Today the Government are set to announce a Commerce Commission inquiry into banks - with the focus expected to be on profits and fees. In 2022, retail banks made a $7.8 billion net profit, $1 billion higher than the year before. Associate professor at the Massey University Business school Claire Matthews joined the Mike Hosking Breakfast. LISTEN ABOVE See omnystudio.com/listener for privacy inform...

The forestry industry is sick of being made into the villain on reducing emissions. The Government is proposing to amend the Emissions Trading Scheme and incentivise innovation over off setting through planting. One option is taking forestry out of the scheme altogether and creating two separate markets. Forest Owners' Association president Grant Dodson says it's a bad idea and he joined Kate Hawk...

Prime Minister Chris Hipkins has locked in a coveted confab with Chinese President Xi Jinping. Hipkins heads to China on Sunday, alongside a large delegation of high-flying New Zealand businesspeople. He'll be travelling to Beijing, Shanghai and Tianjin. NZME business commentator Fran O'Sullivan says Chris Hipkins will use the trip to boost the New Zealand-China trade relationship. LISTEN ABOVE Se...

The Government says the fundamentals of our economy are really strong. When asked how he rates the chances of a credit rating downgrade, Finance Minister Grant Robertson says we're still in a good spot. "The IMF here recently and others, they've had long term concerns about aspects of the New Zealand economy like the current account balance, but they also weigh that up against things like levels o...

This week, OneRoof property commentator Ashley Church weighed in on the state of the market and the signs it may turn. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Upon the release of the GDP figures confirming New Zealand has entered two quarters of contraction and so is in a recession, Grant Robertson issued a press statement headed "Economy takes knock from Auckland floods and Cyclone". Robert McCulloch, who writes the blog Down to Earth Kiwi and is the Matthew S. Able Professor of Macroeconomics at the University of Auckland begs to differ.  He joined Ke...

As the economy sinks, the Government sinks with it. What a shocking week. We have officially been in recession. Don’t let them con you into the “technical recession" line. A recession is a recession and going backwards is going backwards. I have no reason to believe that in the past three months of April, May and now June things have changed. And I have no reason to believe the Reserve Bank is wro...