Reserve Bank spurns sunlight, new office products merger pushes envelope

In NBR Print today: Jenny Ruth writes that by recently calling into question Kiwibank’s capital position, the Reserve Bank has cast doubt over the very sector it is meant to maintain Kiwis’ confidence in. “And it’s only exacerbating the confusion by refusing to say exactly what the problem is or what it’s doing to fix it, citing confidentiality.”

Technology editor Chris Keall says Orion Health is unlikely to suffer the same downward death spiral as Wynyard Group – despite a similar cash crunch. But Orion’s ability to survive and thrive is dependent on its chief executive giving up majority control of the company he co-founded, he writes. “It also hinges on Ian McCrae biting the bullet and getting on with a capital raise after shares hit a post-IPO low this week.”

Investigations editor Karyn Scherer says the rivals of New Zealand’s two biggest suppliers of office products are understood to support a merger that could result in a monopoly at the sharp end of the market.” They have apparently told the Commerce Commission they are not opposed to a merger between OfficeMax and Staples office supplies, as they believe it will force large corporates and government agencies to consider smaller players for their pens and paper. But some industry veterans remain sceptical, and fear another fiasco of Dick Smith proportions could be in the pipeline.”

Property reporter Sally Lindsay says Auckland Council is likely to face a legal challenge if it proceeds with Mayor Phil Goff’s proposed 150% plus targeted rate on hotels, motels, backpackers and camping grounds to pay for part of Ateed’s activities. Russell Bartlett QC  says that’s due to the council-controlled organisation’s refusal to identify who benefits from its ratepayer-funded largesse, she writes.

Campbell Gibson finds two associates of tax avoider John George Russell – infamous for owing IRD $500m – are embroiled in a multi-million dollar stoush. Glenda Rogers, wife of disgraced former National MP Trevor Rogers, claims Wellington property developer Chris Mason owes her $4.4 million after she took over one of Mr Russell’s companies. ”Although that bill has so far been dodged by Mr Mason – who has also been pursued for tax avoidance in the past – the case is headed to a full hearing.”

Motoring editor Cameron Officer has the cars you need this autumn in our latest Showroom magazine.

All this and more in today's NBR Print edition. Out now