Source: BusinessNZ
Budget 2026 – Budget must balance discipline with bold choices for growth – Business Canterbury
Businesses across Canterbury are looking for a Budget on Thursday that shows the Government is responding to current conditions in the same way they are, through careful cost management and clear prioritisation, while still maintaining a strong focus on the future.
Business Canterbury Chief Executive, Leeann Watson says, “The signals from Government to date have been encouraging. Our latest Canterbury Business Survey, which closed last week, shows 35 per cent of businesses are positive about the Government’s response to conflict in the Middle East, with 47 per cent remaining neutral. This is an indication that businesses are recognising pragmatic decision-making from the Government in a challenging global environment.
However, while short-term discipline is essential, it cannot come at the expense of long-term growth.
“It’s in an environment like this that bold decisions matter most. In its Budget this week, the Government must keep its eyes firmly on lifting productivity, encouraging investment, and supporting sustainable economic growth.
“With limited room for large-scale spending or relief on core cost pressures such as fuel and other inputs, productivity-focused policies are the most practical and impactful pathway forward. There are existing tools that could be strengthened quickly to deliver meaningful gains.
Some opportunities include:
Expanding and enhancing Investment Boost, including opening eligibility to a wider range of asset classes such as second-hand assets and increasing the claimable percentage.
Raising the instant asset write-off threshold from $1,000 to $20,000 as it is in Australia (for small businesses) to improve cashflow and reduce barriers to investment.
Introducing a targeted R&D grant or tax credit for small and medium-sized businesses, bridging the gap between the ‘New to R&D’ grant and the RDTI scheme, where current compliance requirements can be a barrier.
“Businesses have navigated disruption after disruption over the past five years. They are resilient, but they need the right settings to invest, hire, and grow.”
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.
Employment Issues – Te Puni Kōkiri restructure heads to mediation – PSA
Source: PSA
Openings – New inclusive café expands Delta’s services, creating more ways to connect
Source: Rata Foundation
ASB: Strait closure may squeeze NZ far beyond fuel
As the Middle East conflict enters its 12th week, new ASB analysis suggests the economic fallout for New Zealand is spreading well beyond the pump, with supply chain costs rising and household spending expected to come under further pressure.
“While the immediate effect has been higher fuel prices, that’s only one piece of the puzzle. The broader story is how the entire cost shock (which includes fertiliser and petrochemicals) spreads through supply chains, lifting the cost of manufactured goods, packaging, freight and farm inputs, and the flow on effects of that to consumer spending,” says Kim Mundy, Senior Economist at ASB.
Those pressures are already showing up in real costs for some businesses with freight operators providing the clearest early examples. Earlier this month, shipping giant Maersk applied a 27% fuel surcharge while the Interislander almost doubled its fuel surcharge for commercial vehicles crossing Cook Strait – increases likely to be felt across a broad range of New Zealand businesses.
ASB expects the initial inflationary pressure to be felt most acutely in food, freight, plastic products and other goods with high transport or packaging costs. At the same time, discretionary sectors such as retail, hospitality, arts and recreation may face softer demand as higher fuel costs reduce household spending power.
“The effects of the Strait’s closure reach further into the economy than may have first been apparent, with few sectors likely to escape entirely. Agriculture, manufacturing, construction and transport appear most exposed, but even less fuel-intensive businesses could be hit as households shift spending towards essentials. That creates another headwind for economic growth,” says Mundy.
“Roughly a quarter of our economy has a high, or very high, exposure to at least two of the key disruptions we analysed in our research so for businesses, the message is to look beyond direct fuel use and assess their exposure across suppliers, freight, packaging inputs and customer demand while the conflict in the Middle East persists,” says Mundy.
Other recent ASB reports covering a range of commentary, can be accessed at our ASB Economic Insights page: https://www.asb.co.nz/documents/economic-insights.html
Opinion – From Victimhood to Empowerment: Palestine Through the Eyes of Its Indigenous People
Rural News – Major breakthrough in battle against wilding pines – Federated Farmers
Source: Federated Farmers
Activist Sector – New spend on war is lunacy – Peace Action Wellington
“The government is allocating another $215 million to the frigates – both of which were just upgraded at an actual cost of $700 million – nearly twice what was budgeted with years' long work overruns by Lockheed Martin. This is the usual rort of the weapons industry,” said Valerie Morse, member of Peace Action Wellington.
“This announcement shows where the Coalition's priorities are. Instead of building hospitals, schools, houses, aged care facilities and a clean energy transition, this government is intent on waging war alongside the United States.”
“The Minister likes claims the world is more dangerous. What he is not saying is that country most responsible for that very instability is our 'friend' the United States. The US is engaged in an illegal war on the people of Iran, and are arming and funding the ongoing genocide in Gaza. In 2025 alone, the US bombed nine different countries.”
“It is the US that has been pushing this government to spend more on war since the 2023 election. There has been a constant stream of US military and State Department people in and out of Wellington to ensure the government commits to a massive military build up – and interoperability with US forces.”
“Instead of signing up for the US empire's endless wars – and spending our children's inheritance on weapons – we need to build a strong and vibrant Aotearoa New Zealand that ensures everyone here has what they need to lead a dignified life.”
“The announced spending on new weapons will be funneled straight into the pockets of global weapons companies like Lockheed Martin, instead of into ensuring people here are fed, clothed, housed and employed.”
Budget 2026 – Defence boost must ensure civilian workers get pay rise – PSA
Source: PSA
Universities – Climate change is reshaping migration worldwide, new research shows – UEA
New research showing how climate change is reshaping global migration patterns will be revealed during a major conference exploring the issues this month.
Climate change is already altering where people live and work across the world – from rural communities to rapidly growing cities. Now new findings highlight how governments can respond, suggesting migration may need to be integrated into climate adaptation planning rather than treated simply as a problem to prevent.
The conference, Mobility in Adaptation to Climate Change, takes place at the Wellcome Collection in London on May 19-20 and will bring together leading scientists studying migration and climate change.
Sixteen papers will be presented over the two days on every aspect of migration and climate change, by researchers from Africa, Asia and Europe.
The event is organised through a collaboration between UK-based researchers at the University of Exeter and the University of East Anglia (UEA), working with partners across Asia including India, Nepal, Bhutan and Bangladesh.
The research is part of a £5 million UK–Canadian programme funded by the Foreign, Commonwealth & Development Office and Canada's International Development Research Centre, examining whether migration can serve as a successful adaptation to climate change.
Key findings to be discussed during the conference include:
- Climate change is altering migration patterns across south Asia – from the high mountains of Nepal and Bhutan to the coasts of India and Bangladesh. Rural areas are losing populations through migration to cities. But government actions are helping to build capacity to cope.
Dr Amina Maharjan, from The International Centre for Integrated Mountain Development, says: “When mobility is supported, it reduces risk, secures livelihoods, and strengthens agency. When it is not, it increases precarity and inequality.”
- Migrants are moving into climate risk hotspots – migration to cities across South Asia exposes people to rising heatwaves and chronic heat.
As cities expand, from Bengaluru to Dhaka, they need to protect new migrant populations that disproportionately work in highly-exposed sectors – from construction to transport. Public health providers are now offering mobile clinics, reaching 6000 migrant workers in multiple languages across Kerala state in India, for example.
Dr Chandni Singh, from the Indian Institute for Human Settlements, says: “Safe destinations are as important as safe journeys. New measures can make cities safe, secure and resilient.”
Global research by Prof Halvard Buhaug tests for the presence of an 'urbanisation bomb' – the idea that migration to cities causes more conflict through ethnic tensions and scarce services and resources. His team from the Peace Research Institute Oslo largely dispels this myth – pointing to the need for integration of migrant populations to successfully avoid conflict.
- Climate-related displacement has limited legal protection – yet Italy, Finland, and Cyprus have explicit legal provisions that may allow protection in cases of displacement linked to environmental disasters.
In her research, Prof Raya Muttarak of the University of Bologna highlights 124 cases in Italy since 2018 where protection has been allowed and shows that new science attributing climate change as impacting current weather could be the basis for more claims.
- Movement from Pacific Island nations are increasingly being influenced by China – for the past 50 years the dominant flows have been from island countries to Australia, New Zealand, and the United States.
Now China seeks greater influence in the region: there is increasing movement of people between the Pacific and China. Australia seeks to counter China in part through a range of seasonal and permanent visas, and recent US immigration policies are affecting migration options for Pacific island communities.
Prof Jon Barnett from the University of Melbourne argues that this 'mosaic' presents more risks than opportunities for adaptation for small island countries in the Pacific.
The conference organisers are Prof Neil Adger (University of Exeter), Dr Chandni Singh (Indian Institute for Human Settlements), Dr Amina Maharjan (The International Centre for Integrated Mountain Development) and Dr Mark Tebboth (UEA).
