Auckland City Deal Sets Direction – Now Progress Must Follow, says EMA

Source: EMA

Momentum and progress will mark the success of today’s landmark city deal agreed between Auckland City and the Government, says the EMA (Employers and Manufacturers Association).
“This is the first of the city deals to be announced and it won’t just be Aucklanders watching its progress, but also the other cities and regions wanting to make similar deals with the Government,” says EMA’s Head of Advocacy, Alan McDonald.
“They have succeeded overseas and now we get to try one here. There are encouraging elements to the announced deal – with Auckland’s economy lagging, we need a shot in the arm to get things moving again.
“The announcement rightly notes just how important Auckland’s success is to the national economy and, as a national organisation founded in Auckland 140 years ago, we and our members really want to see the city grow and contribute more to the economy.
“Similar measures in the past, such as the Auckland Transport Alignment Plan (ATAP), brought some successes but this is a much broader agreement in scope. It’s an agreement that should prevent large-scale fantastical plans being foisted on the city, and lead to more pragmatic options that demonstrate real growth and progress.”
McDonald says key elements of the deal will all contribute to momentum and growth. These include the Council/Government partnership approach, the focus on developing precincts, a joint approach to a large-scale events programme, and gaining further efficiencies from existing infrastructure and transport networks
“The new Crown uplift funding tool should encourage Council to think more strategically about how it uses its existing assets, while recognising the important role the private sector can play in prioritising the Drury development and easing congestion at the critical airport hub. Auckland Airport is also one of the region’s largest roading authorities, controlling much of the road network around the airport.
“Getting the most out of the CRL (City Rail Link) by prioritising level crossing improvements just makes good sense, and there is recognition we should take a similar approach to maximising the flow of our roading and public transport networks, not just on the motorways.
“The intent behind the deal looks great. Now we need to see the results flow from the agreement – and quickly.”

Greenhouse gas emissions (industry and household): December 2025 quarter – Stats NZ information release

New Zealand’s environmental reporting series: Our freshwater 2026 – Stats NZ information release

Activist Sector – Wellington March against the War

Source: Peace Action Wellington

Peace Action Wellington is hosting a march against the war on Saturday, 11 April at 11am from Civic Square to Parliament.

“The US and Israeli war on Iran is illegal, immoral and completely without justification,” said Valerie Morse from Peace Action Wellington.

“We call on the NZ government to condemn this war. To call out the US and Israel for their war crimes and to demand an end to this now – for good. This isn’t hard.”

“All of the Coalition is equally responsible for their utter cowardice – NZ First, National and ACT. They have utterly failed to have even the most basic moral compass. They can’t even condemn an illegal war. It is remarkable what utter sycophants they have all been to US power.”

“We should hardly be surprised since they have been so silent and complicit as thousands upon thousands of Palestinian men, women and children have been massacred.”

 “Now we demand that NZ get out of the blood-soaked alliance with the US and its task-master Israel. We say no troops, no SAS, no frigates, no joint training, no business, and out of the Five Eyes intelligence alliance.”

“We demand an independent and principled foreign policy that puts human need, human dignity and human rights at the very forefront.”

Oxfam: Peace talks only successful if ceasefire encompasses the region, as Israel launches deadliest strikes yet on Lebanon

Source: Oxfam Aotearoa

Reacting to news today of a two-week ceasefire between US/Israel and Iran, Oxfam International Executive Director Amitabh Behar said:
“We share in the widespread relief that the world has avoided the atrocities President Trump threatened yesterday and that the war between the US and Iran has paused while diplomatic talks commence. The ceasefire comes after weeks of escalating threats and unlawful attacks by the US and Israel on Iran, as well as retaliation from Iran, that have killed, injured, and displaced civilians across the region. However, until there is an end to all hostilities, across the entire region, no one will feel truly safe.
“This pause must become a stepping stone for wider peace. Israel’s ongoing invasion in Lebanon, its destructive occupation of Palestinian Territory, ground incursion and airstrikes in Syria, its continued attacks in Gaza, and violent attacks and territorial expansion in the West Bank are still continuing despite the provisional cessation of violence with Iran. This deadly toll across the Middle East is intolerable and must stop.
“Israel’s attacks on Lebanon continued with huge strikes today, reportedly killing at least 80 people. Another 1,500 people have been killed and 4,500 injured since last month. Israeli massive forced displacement orders cover more than 20 per cent of the population and humanitarian agencies cannot access critical projects to assist people in the most need.
“Any peace agreement must include the unconditional withdrawal of Israel’s forces in Lebanon and Syria, an end to its unlawful occupation of Gaza and the Syria Golan, and its annexation of the West Bank, including East Jerusalem.”

Fire and Emergency reminds public to be extra careful while strike action takes place

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand is warning the public that the New Zealand Professional Firefighters Union (NZPFU) will be undertaking a strike tomorrow, Friday 10 April, between midday and 1pm. 
The NZPFU has indicated its intention to continue twice-weekly strikes.
“I want to reassure the public that all 111 calls will be received and responded to during the strike periods,” Deputy National Commander Megan Stiffler says. 
“However, our response times will be delayed in impacted areas as volunteer crews will be responding from the next closest location. So, we are asking the public to remain extra careful.
“Our advice remains the same. If there is a fire, evacuate early, get out, stay out, then call 111.” 
During the one-hour strikes Fire and Emergency will prioritise emergencies and may not attend less serious incidents, such as private fire alarms where there is no sign of fire, small rubbish fires, traffic-management assistance, and animal rescues. 
In addition, Fire and Emergency has established a process with Hato Hone St John and Wellington Free Ambulance for responding to medical events in impacted areas. 
“We remain focused on achieving a fair and sustainable settlement with the NZPFU so we can continue working to keep our communities safe,” Megan Stiffler says.

Economy – How New Zealand can get more growth from its infrastructure

Source: New Zealand Infrastructure Commission

Research by the New Zealand Infrastructure Commission, Foundations for Growth: How infrastructure can increase productivity, spotlights the role of infrastructure in driving productivity and economic growth.
“Productivity is essential to lifting our living standards. It’s about being able to get more value out of the time we spend working, while sustaining our natural environment. In turn, infrastructure plays a key role in productivity growth – by tying together our cities and regions, connecting us with global markets, and helping us adopt new technologies,” says Peter Nunns, General Manager – Strategy at the New Zealand Infrastructure Commission, Te Waihanga.
” Foundations for Growth shows that while infrastructure is important, simply investing in new assets may not be a panacea for growth. What matters more is that new infrastructure tackles genuine ‘bottlenecks’ that are holding us back and that the infrastructure we already have is being used efficiently.
“The infrastructure we’ve built up over more than 150 years – our roads, electricity and water networks, hospitals, schools, and more – underpin our current economy. We need to ‘fix the foundations’ first if we want to keep growing, which means investing enough in maintenance, renewal, and resilience against natural hazards to retain the services we rely on,” Nunns says.
“Sometimes, we can get better value from infrastructure we already have. For example, the Commission’s research shows we get less ‘bang for buck’ from our road network than our OECD peers.
“We can boost productivity by enabling more growth in areas with good transport access, improving safety and efficiency through targeted investment, and using time-of-use pricing to fix urban congestion.
“New infrastructure can make a big difference to growth during periods of rapid technological change or significant demographic shifts, like urbanisation and population ageing. Projects that are timely, cost-effective, and well-targeted to emerging needs can help by unlocking ‘bottlenecks’ to growing and transforming our economy,” Nunns says.
“Projects that served our economy best in the past may not be the right fit for the future, however. As economies develop, the value we get from investment in digital infrastructure and energy infrastructure tends to rise, while average returns from transport investment tend to decline.
“As Foundations for Growth highlights, if we want our infrastructure to generate the greatest value for the people who use it and grow our economy, the good news is we know what it takes: a strong focus on planning ahead, choosing projects that stack up economically, and using the right tools to pay for them,” Nunns says.
The report was published alongside the National Infrastructure Plan, which represents the Commission’s advice to the Government on infrastructure investment over the next 30 years.
“Our long-term investment advice in the National Infrastructure Plan reflects the findings in Foundations for Growth. It maps out a path for lifting economic performance through infrastructure investment.
“Improving productivity isn’t about spending more, but investing carefully and strategically. We need to make sure every dollar we invest in infrastructure works as hard as possible for New Zealand's future prosperity,” Nunns says.
Notes

Greenpeace – New Zealand’s water quality in a dire state: New govt report

Source: Greenpeace

A new report on New Zealand’s fresh water from the Ministry for Environment has been released, revealing that its quality and safety has been worsening.
The report outlines that between 2019 and 2024, 45 percent of groundwater monitoring sites had E. coli levels above legal limits for New Zealand drinking water on at least one occasion, and 12 percent had nitrate levels above legal limits.
The report also detailed that between 2020 to 2024, modelling estimated that 44 percent of New Zealand’s total river length was not suitable for activities like swimming.
Greenpeace has been ringing the alarm bells on New Zealand’s water safety for years; recently visiting parliament to ask politicians to drink water from rural taps – with nearly all of them refusinghttps://www.greenpeace.org/aotearoa/press-release/greenpeace-challenges-mps-to-drink-nitrate-contaminated-water-at-parliament/
Greenpeace freshwater campaigner Will Appelbe says, “New Zealand is in a freshwater crisis. Lakes are choking with toxic algae, rivers are unswimmable, and drinking water in rural communities is contaminated with unsafe levels of nitrate.”
“This report adds to the growing mountain of evidence that New Zealand’s lakes, rivers, and drinking water are in a dire state.”
The report also clearly identifies the main cause of this freshwater pollution – the agricultural sector, primarily intensive dairy farming. Appelbe says it’s clear that New Zealand’s intensive dairy production model isn’t working.
“The dairy industry has insisted on putting a cow on every square inch of Aotearoa. We have an unsustainable amount of cows on the land, and now it's putting our health – and the health of the environment – in danger. Somehow, the dairy herd is expanding for the first time in more than a decade. That cannot continue.”
“To protect lakes and rivers, and ensure that everyone – no matter where they live – has access to clean safe drinking water, we need to reduce the dairy herd size, and transition towards ecological, regenerative agricultural practices.”
“The Our Freshwater report makes it clear: the time for action is now. Every day that we delay puts freshwater quality at increased risk.”

Property Market – Residential construction cost growth reaccelerates as building activity lifts

Source: Cotality

New Zealand residential construction costs recorded a further lift in the March quarter, with annual growth accelerating as signs of a recovery in the country’s building activity boost industry momentum.
The latest Cordell Construction Cost Index (CCCI) shows residential building costs increased by 1.0% in the three months to March. The quarterly result was slightly above the 0.9% rise in the three months to December and remains in line with the long-term average. (ref. https://www.cotality.com/nz/resources/downloads/cordell-construction-cost-index-ccci )
More notably, the annual pace of growth accelerated to 3.0% from 2.3% in the December quarter, marking the fastest increase in two-and-a-half years, albeit below the long-term average of 4%.
Cotality NZ Chief Property Economist Kelvin Davidson said the shift in the annual growth rate was a key signal the sector is moving into a more active phase.
“The quarterly figures have been relatively steady, but we’ve recorded a couple of modest increases and the acceleration in the annual rate shows cost growth is starting to find some upwards momentum again,” Mr Davidson said.
“That increase reflects a gradual pickup in activity, with more projects progressing, which has placed renewed pressure on parts of the construction cost base.”
He said the latest figures suggest the period of easing cost growth seen through much of 2024 and 2025 has shifted and is moving back into a growth phrase.
“We’re still well below the extremes experienced during the post-COVID period, but two consecutive quarters of growth indicates change is occurring and costs are edging higher again as the sector recovers.”
Dwelling approvals on the rise
Recent data on dwelling consents reinforces the improving outlook for construction activity, with the annual number of new dwellings approved increasing to a two-year high of around 37,000.
Mr Davidson said the rebound from the mid-2025 trough adds to the early signs of recovery seen late last year.
“We’ve moved beyond that period of flat or declining approvals, and the recent rise in consents would suggest there’s a more sustained recovery taking shape,” he said.
“Lower mortgage rates will have improved feasibility for some projects, while policy settings continue to support new builds relative to existing housing.”
He added that consents weren’t a guarantee of completed projects, but remain a forward-looking indicator of activity, with the full impact on costs unknown.
“There’s typically a lag before those approvals translate into work on site, but the momentum is moving in an upwards direction with builders becoming busier again, and that tends to coincide with an increase in cost pressures.”
Increases were recorded across a range of materials and finishes, including a 12% lift in the cost of masonry, 5% for wallpaper, 4% for LED lighting and declines in plumbing-related products such as PVC piping and bathroom fitouts.
“We’re not seeing widespread cost surges, but enough inputs are rising to push overall costs higher. That’s consistent with a market where demand is returning and capacity is starting to tighten again at the margins,” he said.
Cost pressures to challenge construction recovery
While the construction sector is expected to continue its recovery through 2026, supported by improving demand and a stronger pipeline of approved projects, Mr Davidson said the outlook is sensitive to both domestic and global factors.
He said a lift in migration and housing demand would likely support further building activity, with the potential for construction costs to trend higher.
“More activity in the construction sector is ultimately a good thing, but even relatively modest increases can impact borrowing requirements or project feasibility, particularly at a time of broader cost-of-living pressures,” he said.
Mr Davidson noted that build costs haven’t fallen in any meaningful way, meaning many households considering a new build or renovation are still working from a high starting point as conditions begin to firm up again.
He said global uncertainty, including the US-Israel-Iran conflict and higher fuel prices, is already beginning to filter into the supply chain, with some suppliers signalling potential price increases.
“Domestic conditions are improving, but global factors will also play a role. The US-Israel-Iran conflict and higher fuel prices are unknowns that could have an impact, particularly if they flow through to freight and material costs,” he said.
Mr Davidson said these dynamics align with what the Reserve Bank has described as first-round, indirect inflation effects, and will be closely monitored for any broader flow-on impacts.
“For the construction industry itself, this will be a challenging period as firms adjust to higher fuel prices just as activity is starting to recover,” he said.

Economy – OCR on hold, ceasefire adds a new element – Cotality

Source: Cotality – Commentary by Chief Property Economist Kelvin Davidson

As widely expected, the Reserve Bank’s Monetary Policy Committee held the official cash rate (OCR) unchanged at 2.25% today. Even though Governor Breman’s speech from 24th March certainly wasn’t intended to pre-empt today’s OCR call, that’s effectively what it did, given that the content was pretty similar.
Indeed, the Bank reiterated the reluctance to respond to the initial effects of higher oil prices but also that they’re firmly focussed on the risks of ‘second round’ impacts such as higher wage negotiations which could see wider inflation (and expectations) become more embedded. They indicated swift and decisive OCR rises should those risks become reality.
On the flipside, however, the record of the meeting also contained a fair amount of discussion about economic activity risks if/when the conflict got really drawn-out and we ran into fuel shortages. Reduced economic activity would of course tend to have a downwards influence on inflation (alongside pre-existing spare capacity).
Ultimately, we’re still in wait-and-see mode on Iran, inflation, the economy, the official cash rate, and a whole lot more besides – with the news earlier in the day of a two-week ceasefire just adding to this fast-moving situation.
For the property market, uncertainty still prevails too. A lasting ceasefire may limit any effects on housing activity and prices. But there’s already been a drift higher for mortgage rates and/or a softer economy would also tend to be restrictive for property.
Given that there’s already a mood of caution amongst buyers and sellers in the housing market, it would not be a surprise to see recent tentative signs of rising property values peter out in the next few months or even go back into reverse.