How to get around the banks to buy homes, Watchdog is more bark than bite, Flying sheep endanger McCully, Small, deferred surplus, tiny tax cuts in 2017

Mortgage brokers are questioning the legitimacy of some foreign money used for home deposits, Sally Lindsay writes in today’s National Business Review print edition.

“Obtaining answers on whether the money is borrowed or gifted is difficult. Brokers are calling for the government to collect data on the amount of offshore money in the housing market and whether it is borrowed, instead of worrying about the number of foreign buyers snapping up residential property.”

Jamie Ball reveals that regulators have for the first time stated that the majority of farmers who were mis-sold interest rate swaps could be classified as retail bank customers, rather than wholesale business clients. “This is a significant admission considering this question of sophistication was pivotal in similar circumstances in the UK, where banks have agreed to a redress offer resulting in them so far paying out more than £1.8 billion to dissafected customers.”

The NBR print edition finds that according to NZTE, the Saudi Arabian “agrihub” gifted to Hmood Al-Khalaf at NZ taxpayers’ expense is “bold and courageous. But Mr Al-Khalaf’s business partner, refers to the desert-based “farm” as “compensation.” For columnist Matthew Hooton’s money, however, the $7.45 million deal is “as dodgy as things ever get in Wellington.” And if it doesn’t facilitate an FTA with the Gulf States, then Murray McCully’s foreign affairs portfolio may be on the line. After all, he writes, “The one thing worse than paying a bribe with taxpayers’ money is paying it to no effect.”

Calida Smylie finds Radius Residential Care getting its affairs in order before a possible launch on to the New Zealand stock exchange to raise expansion capital. “But there are problems shrouding the aged care sector that could shove a spanner in the works, including potential wage increases due to a gender-discrimination court case.”She says Radius presents a different model from the four current public retirement home operators, which may interest potential shareholders.

The government budget gets a going over by Rob Hosking, who writes that a promised surplus might be a year away – “or even further, given the wobbly nature of economic forecasts.” But this was a budget aimed at other balances – politically balancing National as what Prime Minister John Key told Parliament yesterday is a “compassionate conservative” party. “The “hardship” package is, at $790 million, much larger than anyone expected. Of more significance is the projected surplus for next year: a transparently thin, almost anorexic $176 million. “

All this and more in today’s National Business Review. Out now.