Where to next, for the Kiwi economy

business food 9:20 am today
Food prices have risen at their highest rate in 18 months, and inflation is heading towards the top of the Reserve Bank's 3 per cent target. So what are the implications for the economy and hopes the Government has for growth? Stats NZ's latest food prices index was up 4.4 per cent on the last year with - meat, poultry and fish the biggest risers for the year. Butter, milk and cheese drove grocery prices - the average price for butter was up 51 per cent over the past year, with cheese up 30 per cent. Kiwibank says the outlook for growth is cloudier than ever - its economist Mary Jo Vergara explains.

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RNZ News

8 hours ago

• RNZ News

Bidders for Northern Expressway public private partnership revealed

Transport and Infrastructure minister Chris Bishop said there was "very strong" interest in the project. Photo: RNZ/Calvin Samuel Three bidders have been confirmed for the next section of the Northern Expressway from Warkworth to Te Hana. The government has revealed the shortlist for the public private partnership, with the bids made up of three consortia. The groups are bidding to build a 26km, four-lane expressway connecting to the existing Pūhoi to Warkworth stretch. The indicative design includes a 850m long twin-bore tunnel in the Dome Valley, and three interchanges at Warkworth, Wellsford and Te Hana. The government opened up expressions of interest as part of its Investment Summit in Auckland in March. The summit invited representatives from more than 100 companies from 15 countries, who controlled $6 trillion in assets and funds between them. Some businesses indicated they were keen on the project before the summit had even wrapped up, two of which were included in the shortlist. The shortlist consortia are: The groups must now submit a Request for Proposals, setting out how they intend to finance, design, construct, manage and maintain the section of the expressway. Transport and Infrastructure Minister Chris Bishop said the government received "very strong" interest in the project. "The shortlisted consortia are all well positioned to deliver a high-quality motorway that will boost regional resilience, enhance road safety and travel reliability, and strengthen vital connections for freight, tourism and everyday drivers," he said. The preferred bidder will be chosen in early 2026, with the contract finalised by the middle of the year and construction to begin later in the year. In March, Guido Cacciaguerra from Italian firm Webuild confirmed he would bid. "If the government gets this right, it's the most powerful marketing tool to attract more investors in the future," he said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

RNZ News

8 hours ago

• RNZ News

Iwi must deal with us 'whether they want us or not'

A seabed mining protest held earlier in June. Photo: RNZ / Emma Andrews The head of a company that wants to mine millions of tonnes of ironsands from the seabed off the Taranaki coast says local iwi - which unanimously oppose the project - must engage with Trans-Tasman Resources "whether they want us or not", when it gets its consents. TTR has approval to vacuum up 50 million tonnes of sand annually from the South Taranaki seabed for 35 years to extract iron, vanadium and titanium, but the company still needs consent to discharge 45 million tonnes of unwanted sediment a year back into the shallow waters. The company has previously been thwarted through legal challenges right up to the Supreme Court and is currently going through the fast-track consenting process. TTR said it can mine the seabed environmentally safely, and its project would significantly boost the national and regional economies. Managing director Alan Eggers outlined the virtues of the project to councillors and members of the public - many of whom opposed it - for about an hour at a workshop last week. At the conclusion of his presentation, councillor Bryan Vickery asked Eggers why - despite his compelling case - did all eight Taranaki iwi oppose the project, and why was there a disconnect between TTR and iwi. In May, Ngā Iwi o Taranaki released a statement on behalf of the eight Post Settlement Governance Entity iwi of Taranaki, voicing their support for South Taranaki iwi in their opposition to seabed mining off the coast of Pātea. "Our iwi stand alongside our southern iwi to support them and amplify their concerns about seabed mining in their takiwā," said Ngā Iwi o Taranaki pouwhakahaere Wharehoka Wano. "We encourage all iwi to support our South Taranaki whānau in their deep opposition to TTR and seabed mining." Eggers told the workshop TTR had documented its interactions with iwi and they were extensive. "We're very disappointed at the lack of engagement that they have given us. They haven't engaged, they've refused to engage with us. "We would love to engage with them and, let me say this, we are going to be working with South Taranaki iwi when we get our consent, whether they like want us or not. "We're going to want them on board, and were going to want them to actually do a lot of this marine monitoring and research." After the meeting, Eggers told RNZ that iwi previously wanted to invest in the project. "We had a quite good relationship with South Taranaki iwi to start with and they were quite keen, in fact, to join us as perhaps an equity partner in the project, invest in the project. We'd welcomed that." Protect Our Moana group member and Parihaka uri Tihikura Hohaia said he didn't know who Eggers was talking about, when he said TTR had consulted with iwi. "He certainly hasn't come to consult with any of us grassroots whanau, hapū that are keeping our home fires burning on our marae... not at all, I can tell you that right now." Hohaia didn't hear anything in Eggers' presentation that made him think the project could go ahead in an environmentally safe way. "I don't believe it," he said. "It mustn't go ahead. "If it goes ahead, it's going to condemn our already impoverished, trampled uri to generations of protest." During his presentation, Eggers spoke to economic benefits and environmental credentials of TTR's project, while councillors and the public gallery maintained a steely silence. He pointed to the 3.2 billion tonne resource TTR had discovered in the South Taranaki Bight, saying it could generate export revenues of $1 billion a year, making it New Zealand's 11th or 12th largest exporter. The project would create about 1320 jobs nationally, and generate $190 million in government royalties and taxes per annum, Eggers said. Taranaki would benefit significantly. New Plymouth would be the operational headquarters, and Hāwera a training and logistics base. TTR would directly employ 305 people in Taranaki - 270 operational staff and 35 in administrative support. Eggers said 1125 jobs would be generated in the region in logistics, supplies, services and maritime operations. Port Taranaki and Whanganui Port would be upgraded, and TRR would spend $250 million annually in Taranaki. He brushed off concerns about the project disturbing marine mammals and rocky reefs, arguing - with supporting evidence - that there were no reefs in the project area and visits by blue whales anywhere near the mining site were extremely rare. Concerns about the plume created by dredging the seafloor were also dismissed, Eggers arguing that waters near the site would be no more turbid than during a stormy day and reefs would not be smothered. At the conclusion of his presentation, Eggers took about half a dozen questions from councillors, before Mayor Neil Holdom drew the meeting to a close. Eggers thought the meeting went well. "Well, I was pleased to have been given the opportunity, and hopefully I did give them some facts and figures around the project, and its benefits and effects." Hohaia remained unconvinced. "It felt very violent against a backdrop of a cultural upbringing in an area of land loss and so the pure focus on economics for us, the people in the room, sitting in the gallery, it seemed totally bereft of any wairua, of any spirit at all." He said proud opponents of the project sat through the address "with dignity". "These kinds of presentation, as you'd expect, are all about money, all about the supposed benefits through that perspective alone. We've seen enough environmental degradation, we've seen enough cultural degradation here in Taranaki to know better than to be lured by any more sliver coins." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Scoop

10 hours ago

• Scoop

Analysis: Tensions And Timing Test Luxon On First Official China Visit

, Deputy Political Editor in Beijing Analysis - Luck was not on Christopher Luxon's side for his first official trip to China. Even before the visit began, the prime minister was battling for control of the narrative, as a suite of former political leaders - including Helen Clark and Don Brash - accused the coalition of antagonising China through its embrace of the US. A clearly irritated Luxon batted away the warning - "maybe listen to fewer former politicians" - but the commentary persisted. In fact, the superpower struggle was given more prominence by events unfolding in the Middle East as Israel launched open warfare on Iran, with the US and China backing opposing sides. No surprise New Zealanders at home showed more interest in US President Donald Trump's "will-he-won't-he" contemplations than in Luxon's Shanghai sales pitch. Then came news of the Cook Islands diplomacy crisis right on the eve of Luxon's big sit-down with President Xi Jinping. Luxon had to have been cursing the timing, as his pre-meeting media conference was consumed by questions about the government's decision to suspend funding to the Pacific nation after its controversial agreements with China earlier this year. He tried valiantly to characterise New Zealand's issue as being solely with the Cook Islands government, but it was impossible to ignore China's contribution as one-half of the deals in question. That was evidenced by a pointed response from China's Foreign Ministry: that its cooperation with the Cook Islands "should not be disrupted or restrained by any third party". Was the trip a success? Such comments were not repeated, however, in the brief public parts of Luxon's high-level meetings at the Great Hall of the People. The leaders on both sides were direct in their opening remarks but not at all confrontational. President Xi Jinping acknowledged "ups and downs" in the relationship while Luxon pointedly noted the importance of "stability in our region". But both also stressed the value of their ties. Premier Li Qiang even welcomed the "candid" nature of the conversations. Certainly, there was nothing to suggest China is contemplating economic retribution, as some have suggested. Supporters of the government's approach will see that as proof its strategy is working. Its critics will caution it means only that there is still time to change course. To understand China's perspective, one can look to the state media for an indication. On Thursday, state tabloid Global Times hosted a piece by Qin Sheng, associate professor at the Chinese Academy of Social Sciences. Qin said the China-NZ relationship could provide an example of "healthy interaction" in a world of "rising geopolitical rivalry and pervasive uncertainty". At the same time, he warned that the US was "actively wooing" New Zealand to join its "small circles aimed at containing China" including AUKUS pillar two. "For New Zealand, it is important to see the broader picture and ensure that its choices align with the prevailing trend of history." From a personal perspective, the PM would've been thrilled that Xi had been "impressed" by him in their first meeting at APEC last year. Alas, that sentiment is unlikely to filter through to the NZ public in any meaningful way. All travelling media noted the paltry audience interest in the stories filed as they landed on the afternoon of the public holiday Matariki. More bad luck. Broadly speaking, business leaders in the delegation were enthused and positive about the China visit, but there were some quiet grumblings. Two particular gripes came up multiple times in conversations. The trip's length - just two nights in Shanghai and one in Beijing - was considered too brief from a business perspective. It was hard not to notice the extra empty seats on the 757 returning home with several delegates clearly deciding to stay on in Beijing a little longer. Several businesspeople also questioned Luxon's strategy for luring back Chinese tourists and his characterisation of the issue as a "marketing challenge". When speaking to reporters, Luxon repeatedly insisted the problem was that New Zealand lacked "share of mind" in China and simply needed more promotion. The blame, he said, lay with Labour for being too slow to come out of Covid-19. Never mind that China itself had been slower. Those spoken to by RNZ suggested the more pressing concern was cost - and pointed out the coalition had hiked visa fees and tripled the International Visitor Levy. What next? Luxon's focus will now shift to the NATO forum which is he due to attend in the Netherlands in the coming days. In his final media conference in Beijing, Luxon made clear he considered his attendance there to be quite separate from his China mission. But he must know the two are very much connected and will be viewed as such. In recent comments, NATO chief Mark Rutte has grouped China together with Russia, Iran and North Korea, as effective foes of the West. Asked about the remarks, Luxon said he had seen "no evidence" of those four powers actively working together against the West. One wonders how that "difference of opinion" - as Luxon put it - will go down when the PM arrives at the Hague. Just last week, China expert Jason Young told RNZ that one of New Zealand's biggest challenges over the next two decades would be navigating that tension between its Western security partners and its largest trading partner China. There can be no relying on luck for that.