In case you missed it: News bites for the week.
Statistics NZ data shows an extra 4814 jobs were filled in August, with broad gains across the board.
Overall, there were now 2.35 million filled jobs, up 0.2% from July, with the primary sector, services sector, and goods-producing industries all increasing.
However, on an annual basis, employment levels were below August last year, notably construction down over 10,000 jobs and accommodation and food services down almost 4000.
Auckland led the decline, along with Wellington, Manawatū-Whanganui, and Hawke’s Bay, while Canterbury added more jobs.
Data earlier this month showed the economy contracted by 0.9% in the June quarter. Most economists expect that slump to be short-lived, with a return to growth in the current September quarter.
Even so, Westpac suggested a 50-basis points OCR cut next month, followed by a 25bps cut in November down to 2.25% to support the economic recovery.
The Reserve Bank of Australia has kept its official cash rate on hold at 3.6% at its September board meeting.
In a unanimous decision, the RBA said that although quarterly data from June showed inflation was within its 2% to 3% target band, evidence suggested that third-quarter inflation could be higher than expected.
While the domestic economy was recovering, the outlook remained uncertain and the RBA said it was "appropriate to remain cautious".
Locally listed carpet maker Bremworth risks having trading in its shares suspended if it does not file its annual report by next Tuesday. The company announced late on Monday afternoon that it would not be able to comply with listing rules requiring it to submit its 2025 annual report within three months after the end of its financial year. It missed the September 30 deadline and said it was working closely with its auditors to finalise the report and expected to release its audited accounts by October 7. No reason was given for the delay. This morning, stock market regulator NZ RegCo said trading in the company’s shares would be suspended if it did not release the report by next Tuesday. Bremworth has not responded to NBR’s request for comment. The carpet maker’s board has been completely replaced in the past year, following a coup in March and more recent departures.
There were 34,078 residential consents granted in the year to August, up 1.3% on the comparable period but still down one-third from the peak in mid-2022, Stats New Zealand said. The increase was driven by a 1.6% increase in multi-unit consents, which accounted for more than half of all developments at 18,323, most of which were in Auckland and Otago. Stand-alone homes rose 1% to 15,755 builds. On a seasonally adjusted basis, the number of home consents during the month rose 5.8% on the prior month. Otago, overall, showed the biggest jump, with consents climbing 16% to 2473 homes. KiwiSaver provider Simplicity announced in August it would build 600 build-to-rent units near Queenstown. Westpac senior economist Satish Ranchhod said while the building market had seemingly hit its base, a turnaround was "still a way off", given sluggish house price growth. There were positive signals, he said, as developers looked to bring new projects to market, supported by lower financing costs.
Minister for ACC Scott Simpson has appointed Jan Dawson as chair of the Accident Compensation Corporation board, effective now. “Jan Dawson is a highly respected leader with deep governance experience. Her appointment brings the kind of proven leadership that will be essential to ACC,” Simpson said. “In recent years, ACC has fallen short of the standard New Zealanders should expect. Turning this around will require strong leadership and a clear focus on outcomes." Dawson has been a member of the ACC board since June 2024. She is also chair of Port of Auckland; chair of Serko's audit, risk, and sustainability committee; and Mitre 10's audit and risk committee. Previously, she held the chair and CEO positions at KPMG NZ. Simpson said he would soon announce his plans to turn around ACC. "This will set a new direction to restore the scheme to its founding promise – putting clients first and delivering the fast, efficient rehabilitation New Zealanders expect and deserve."
The Government is introducing a new loan guarantee scheme for community housing providers. It is expected to give them better access to debt at lower interest rates and on more flexible terms from banks. Under the scheme, the Crown will guarantee 80% of loans provided to eligible community housing providers by banks. Housing Minister Chris Bishop said banks would not need to hold as much capital to cover the loan’s debt. “This initiative means banks can provide reduced interest rates to community housing providers. It may also allow banks to provide better lending terms. This will allow community housing providers to make decisions on their preferred financier based on the terms and pricing offered,” Bishop said. The scheme-supported loans are available until June 30, 2027, for a maximum of five years from the date of issue.
The police have found there is insufficient evidence to initiate a criminal investigation into serious or complex fraud as a result of allegations made about the misuse of Census 2023 data and Covid-19 vaccination information at Manurewa Marae during the last election. In February, a Public Service Commission investigation found information had not been properly protected. Now the police, which started an investigation in June last year, have declared they will take the matter no further. The Serious Fraud Office has assessed the matter and has also concluded there is insufficient evidence to proceed. But the SFO is engaging with the Office of the Privacy Commissioner, which is continuing to investigate potential privacy breaches.
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