Author: MIL-OSI Publisher

Construction costs recorded their largest quarterly increase in over a year during the three months to December, as early signs of a sector recovery begin to emerge.

The latest Cordell Construction Cost Index (CCCI) shows residential building costs increased by 0.9% in the three months to December. (ref. https://www.cotality.com/nz/resources/downloads/cordell-construction-cost-index-ccci )

While this represents the largest quarterly rise since Q3 2024 (1.1%), the figure remains slightly below the long-term average of 1.0%.

13 January 2026 – Following an open recruitment process, the Reserve Bank of New Zealand (RBNZ) Board has appointed Ms Heidi Richards and Professor Prasanna Gai as external members of the Financial Policy Committee (FPC).

The FPC is a new committee of the RBNZ Board, which will make key policy decisions relating to financial stability, including setting the prudential requirements for financial institutions regulated by the RBNZ, and making macro-prudential policy decisions such as Debt-to-Income and Loan-to-Value ratios for lending.

Ms Richards is a former senior prudential regulator and internationally respected regulatory, risk and compliance leader with experience across private industry, government and not-for-profit sectors in the US, Australia and international policy-making organisations. Ms Richards has a deep understanding of prudential regulation.

Professor Gai is Professor of Macroeconomics and Head of the Departments of Economics, Accounting & Finance, and Property at the University of Auckland. Professor Gai is a leader in the fields of financial stability and monetary policy. He has published extensively on macroprudential policy and systemic risk. Professor Gai served on the Board of the Financial Markets Authority from 2018 until his resignation on 31 December 2025.

“I am pleased with the appointments to the FPC that we are announcing today, and welcome Ms Richards and Professor Gai to the FPC,” said RBNZ Board Chair Rodger Finlay.

“The FPC's work will be crucial to promoting New Zealand's financial stability and the wealth of experience of all the FPC members will enhance and bring focus to RBNZ's financial policymaking.

“I would also like to express my gratitude to all those who expressed their interest in serving as external members of the FPC. Ms Richards and Professor Gai were selected from a strong field of candidates.”

Ms Richards has been appointed for a four-year term from 1 January 2026 to 31 December 2029.

Professor Gai has been appointed for a three-year term from 1 January 2026 to 31 December 2028. In addition to serving on the FPC, Professor Gai will continue his service on the Monetary Policy Committee.

The other members of the FPC are Governor Anna Breman and the following RBNZ non-executive Board members – Byron Pepper (who will chair the FPC), Grant Spencer, and Philip Vermeulen. Rodger Finlay will also serve on the FPC by virtue of his position as RBNZ Board Chair.  

The RBNZ Board has agreed a Charter for the FPC, setting out the operational framework for the FPC to ensure its proper management and functioning. The FPC Charter includes the terms of reference for the FPC.

The first meeting of the FPC is scheduled for late February 2026.

Source: Te Herenga Waka—Victoria University of Wellington

A massive black coral, measuring 4 metres high and 4.5 metres wide, has been found by researchers exploring the underwater depths of Fiordland.

The coral, a protected species, is likely to be 300-400 years old and thought to be among the largest ever seen in the waters around Aotearoa New Zealand.

Professor James Bell, a marine biologist at Te Herenga Waka—Victoria University of Wellington, described the coral as “absolutely huge”.

“It’s by far the largest black coral I’ve seen in my 25 years as a marine biologist. Most black corals we come across when we’re diving are small, with the bigger ones usually less than two to three metres tall so finding this one was really cool,” he said.

The discovery is important as large corals provide vital breeding stock for the species, which is slow to grow.

“Pinpointing where large corals occur means we can better protect them by letting people know where not to anchor their boats or drop pots,” Professor Bell said.

Richard Kinsey, senior biodiversity ranger at the Department of Conversation, was also on the dive when the coral was discovered. “To see such a large coral looming out of the darkness was pretty special. I’ve been a marine ranger in Fiordland for nearly 20 years and it’s rare to see a coral so big. It’s easily the largest one I can remember seeing,” he said.

Victoria University researchers are working with the Department of Conservation and the Fiordland Marine Guardians to study and map the distribution of protected coral species in the fiords.

“We’d love to receive reports from anyone who knows of particularly large black corals that are greater than 4 m so we can map their distribution and find out how common such large coral colonies are throughout Fiordland,” said Professor Bell.

Despite its name, the black coral appears white in colour and only its skeleton is black. The coral is listed as a protected species under the Wildlife Act and it’s illegal to deliberately collect or damage it.