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Economic Insights – Te Ara Mokopuna – Treasury’s 2025 Long-term Insights Briefing published

Source: The Treasury

The Treasury has published its final 2025 Long-term Insights Briefing (LTIB), titled Te Ara Mokopuna, which explores the circumstances under which fiscal policy can be used to buffer the economy from shocks and cycles, and how to do so in a sustainable and effective way.
The briefing emphasises that monetary policy remains the primary tool for managing economic upturns and downturns. However, there may be circumstances in which fiscal policy has a role to play in responding to shocks and cycles, such as:
– Ensuring critical services and infrastructure are maintained or rebuilt.
– Addressing the distributional impacts of shocks on communities.
– Providing economic stabilisation when monetary policy has less room to move or is constrained by extremes (e.g., near-zero interest rates).
The briefing also underscores that when fiscal interventions are required, they should be timely, temporary and targeted, with clear exit strategies in place. The briefing provides an overview of effective and less effective tools, with lump-sum payments, wage subsidies, and targeted adjustments to benefits or fees seen as more effective; and tax changes, new infrastructure investments, and permanent public consumption increases due to timing and reversibility challenges as less effective.
Reflecting feedback from the consultation period, the LTIB notes that the involvement of other stakeholders, including private businesses, communities and local government is critical. Fiscal policy should not undermine the incentives for others to prepare for shocks.
“Feedback highlighted there may be an increasing frequency and complexity of shocks, particularly due to climate change, and the important roles of insurance and local authorities in responding to natural disasters,” Iain Rennie said.
“The Treasury agrees that maintaining the resilience of the private sector is important, and that responses to shocks requires the involvement of other stakeholders, including local government and private businesses, and encourages others to prepare for these events.”
Treasury Secretary Iain Rennie noted that the ability to use fiscal policy to respond to shocks highlighted the need for governments to keep debt at prudent levels.
“New Zealand’s economy is particularly vulnerable to ups and downs because of our small size, reliance on overseas markets, and high household debt.
“As a country, we need to have the capacity to respond to economic shocks when they occur. This will require successive governments to build a buffer – by setting sustainable medium-term fiscal intentions and running operating surpluses between shocks and downturns.
“Internationally we can see that governments tend to increase spending in a downturn or after a shock but fail to offset this with savings when times are good. This has also been the case in New Zealand, contributing to our rising level of public debt over time.
“The final 2025 Long-term Insights Briefing represents the Treasury's commitment to promoting fiscal sustainability and improving wellbeing for future generations of New Zealanders,” Iain Rennie said.
Te Ara Mokopuna reflects feedback received in a two-phase consultation process. The first phase (June-July 2024) sought input into the briefing’s scope, and the second phase (April-May 2025) focused on the draft briefing. This involved public submissions and targeted engagement including with macroeconomic and fiscal experts.
“I would like to thank everyone who made submissions and those who contributed during consultation on the briefing.
“The feedback has been valuable in helping to shape the final briefing. Contributions will also help to inform our future policy advice and development of the Treasury’s forthcoming stewardship reports,” Iain Rennie said.
Feedback reflected the critical role of our institutional arrangements in delivering sustainable and effective fiscal policy, and also focused on lessons learned from recent fiscal responses to shocks and cycles, the respective roles of monetary and fiscal policy in responding to the business cycle, and the role of the Crown’s balance sheet, including public investments, in managing our exposure and preparedness to shocks.
A summary of the consultation feedback and changes made to the briefing as a result of this feedback can be found at Te Ara Mokopuna 2025 – Submissions.
A  short version of Te Ara Mokopuna 2025 is also available.
The Treasury has two further stewardship reports due for publication which will build on the themes raised in the LTIB. The 2025 Long-term Fiscal Statement will consider long-term pressures on New Zealand’s fiscal position and the choices available to successive governments to return to a fiscally sustainable path. The Investment Statement will consider how governments’ management of the Crown balance sheet, including debt levels and investments, can support New Zealand’s living standards across generations. These are due to be published in the coming months.
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Govt Cuts – Cuts to Health NZ team likely spells end to innovative student placement programme – PSA

Source: PSA

Health New Zealand Te Whatu Ora has proposed cutting a project team responsible for removing one of the key obstacles in growing New Zealand’s health workforce: finding student placements.
Public Service Association Te Pūkenga Here Tikanga Mahi national secretary, Fleur Fitzsimons, says that they’re extremely disappointed to hear that Health NZ has decided to cut another essential group of staff.
“The Health NZ Workforce Development team, who have been tasked with growing New Zealand’s health workforce, is one of the latest groups to be put up for disestablishment at the agency,” she says.
One of the Workforce Development group’s major projects, developing a new digital tool to centralise opportunities for student placements, is also set to close, despite receiving high praise from educators brought in to test it.
“Student placements has been identified as a long-standing, critical obstacle in growing the number of skilled health workforce in New Zealand that our population needs, and that this project was set up as a direct result of feedback from the health and education sectors. This decision will make fixing our health workforce shortages even harder.
“The team has seen from its testing stage that this digital tool could make the whole placement process much more efficient for both educators and clinicians.”
Currently, education providers must manually contact health providers (such as hospitals) to organise places for their students. As a result, student placements – which are a requirement for dozens of qualifications – can be highly competitive.
On the other side, the general administration of placing students at placement providers is pushed to already over-stretched clinical staff.
“It’s pretty clear that this is a short-sighted development. The Government has committed to a whole new medical school, with a whole new cohort of students who will need placements.
“By cutting this team, you might save a few dollars now – but as the country’s population ages and the need for health services increases, we’ll pay dearly for the under-investment.”
AUT Head of Department for Perioperative Practice, Megan Richardson, says the tool has been transformative for her team, who used a pilot version of it to place student anaesthetic technicians at medical providers around the country.
“It has successfully facilitated placements across more than 40 hospitals in Aotearoa New Zealand, opening access to both public and private providers, and significantly reducing the administrative burden on both the health sector and my clinical coordination team at AUT,” she says.
“As the only national provider for the qualification for anaesthetic technicians, the tool has helped AUT secure more placements each semester, ensure equitable distribution and allowed us to focus on workforce development rather than coordination.
“The tool has been well received, and the support and training from the workforce development team has been instrumental in delivering a solution that works for us.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Weather News – Rainy end to the week, followed by frosty mornings for many – MetService

Source: MetService

Covering period of Thursday 7th – Sunday 10th August

  •  A departing high-pressure system clears the way for incoming cold fronts.
  •  Heavy Rain Watches are in effect for several areas across the South Island.
  • Temperatures are expected to drop sharply over the weekend.
  • Snow is likely across many of the country’s mountain ranges.
  • Strong to gale-force winds and rough seas are forecast along the eastern coastline on Saturday.

Rain is expected in the far south today (Thursday), spreading to the upper South Island by evening with a few Heavy Rain Watches in place. This is brought about by a series of cold fronts.  
 
The upper half of the North Island is also likely to see a few afternoon and evening showers today but expect more widespread rain on Friday as the front crosses the North Island. High pressure moves in after the rain, bringing colder temperatures and widespread frosts to end the weekend.
 
On Friday, conditions remain unsettled across the South Island, while rain is expected to develop in more areas of the North Island throughout the day. Persistent rainfall over the headwaters of the Canterbury lakes and rivers, as well as in the Tasman region, has prompted MetService to issue Heavy Rain Watches, effective from 4pm Thursday to 3am Friday for Canterbury, and from 11pm Thursday to 5am Friday for Tasman. Rainfall in these areas may reach warning criteria.
 
As the fronts move across the country, snow may fall to 800 metres in the ranges of the North Island, and as low as 500 metres across the Canterbury High Country and Southern Lakes, delivering a fresh layer of snow for the ski fields. Some Southern Alpine passes have Road Snowfall Warnings in force for Friday morning, but more may be required as we head further into the weekend.
 
MetService meteorologist Kgolofelo Dube says, “Some relief is on the way Saturday, with clearer skies expected in western regions as another high-pressure system moves in. However, this new system will also bring a significant drop in temperatures, with widespread frosts returning across much of the country.”
 
While settled weather is expected to round out the weekend for many, a few showers may linger in the eastern North Island, driven by cooler southerly winds. Alongside these southerlies, strong to gale-force winds and rough seas are forecast to affect the eastern coastline. MetService will continue monitoring the evolving situation and provide updates to warnings and watches as needed.

Please keep up to date with the most current information from MetService at https://www.metservice.com/

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Federated Farmers – Big rural turnouts should ring police alarm bells

Source: Federated Farmers

NZ Police should have heard loud and clear at two public meetings last night that rural families and businesses are deeply concerned about proposed staffing changes, Bex Green says.
The Federated Farmers North Canterbury president says the turnout of more than 500 people at the Culverden meeting alone should ring alarm bells for Canterbury Police District Commander Tony Hill.
Superintendent Hill told the meeting one of the reasons behind the proposal to reduce staff at a number of rural stations, and close the Arthur’s Pass station, was a relatively low level of crime reported from those areas.
“That’s where we’re misaligned on this,” Green says.
“It was very clear last night from audience comments that it’s all the preventative, behind-the-scenes work done by the officers who live and work in our communities that heads off so much offending.
“That sort of work isn’t always logged – but it’s extremely effective.
“Our local cops know every single detail about our community; they know the people, who their children are, who to contact if there’s something amiss.”
Green says police offered assurances over new rural liaison officer roles and roading officers, and that the Rangiora police hub is not that far away.
“But those officers won’t know all that crucial work that our local officers do.
“The rural people who spoke up last night with such passion made it very clear how vital they think that local police presence is for them.”
Federated Farmers also organised a second public meeting at Leeston, also held last night.
Local farmer and Federated Farmers national dairy chair Karl Dean thought the turnout of more than 50 residents was a clear signal of local concern given there had only been 48 hours’ notice.
Like Bex Green, he gives credit to Canterbury police leaders for fronting up, but says residents were critical this was the first they’d heard about proposed changes in a review process that started 18 months ago.
“I understand they’ve got to work things through with their staff affected, but when were local residents going to be clued in? It all seems to have been so hush-hush.
“They said last night they were waiting for people to ask for meetings with them but if you don’t know a change is being considered, how do you know to ask for a meeting?” Dean says.
There was also frustration over the lack of detail on the role of proposed new rural liaison officers (RLOs), Dean says.
“It seemed they hadn’t decided the hours of these RLOs and the scope of their work, but we heard if there was a call-out, and they were closest, they’d still be activated.
“So, what’s the difference between that and having the police staff we have at our local stations as now?”
Dean says if Rolleston needs more police, then numbers there should be boosted – but not at the expense of rural coverage.
“The likes of Lincoln and Leeston are growing towns as well. They deserve an increased police presence – not a lower one.”
Police patrol cars driving through rural towns from time to time isn’t the same as having officers stationed there who know the community intimately, Dean says.
“Police assured us last night that these are only proposals and not final decisions, which might have settled the concerns of some people.
“But it certainly didn’t take away the angst of everyone in that room.” 
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EPA seeks to ban chlorthal-dimethyl weedkiller

Source: Environmental Protection Authority

The Environmental Protection Authority (EPA) is proposing to ban weedkiller containing chlorthal-dimethyl (DCPA) during a reassessment of the chemical.
We are calling for submissions on the proposal during a public consultation from 7 August to 6 October 2025.
Chlorthal-dimethyl is a herbicide used to control wireweed on vegetable crops before the vegetables emerge from the soil.
In 2024, the EPA imposed restrictions on the chemical due to significant concerns about its effects on foetal development. This followed an emergency suspension order issued by the US Environmental Protection Agency.
“We analysed the toxicological studies, and these confirmed the potentially harmful effects of chlorthal-dimethyl,” says Dr Shaun Presow, Acting Hazardous Substances Applications Manager.
“Evidence indicates that chlorthal-dimethyl presents risk primarily to pregnant bystanders, or pregnant workers who work with chlorthal-dimethyl, or those who enter treated fields after the substance has been applied.”
For anyone pregnant and exposed to the chemical, the endocrine effects could harm the development of the foetus and lead to significant impacts on offspring. These effects range from low birth weight to irreversible and life-long impacts, such as impaired brain development and motor skills.
“Even the strictest application controls, such as wearing respirators and gloves during spraying, will not sufficiently protect pregnant workers.
“Our research of the data also showed that there is a risk of chlorthal-dimethyl contaminating groundwater regardless of controls put in place,” says Dr Presow.
Independent economic research found that the agricultural use of chlorthal-dimethyl was already fairly low. Information from chemical suppliers showed that about two-thirds of New Zealand growers have turned to using alternative products that are readily available and cheaper.
Among products containing chlorthal-dimethyl, Chlor-Back 75 WG is the only one currently registered under the Agricultural Compounds and Veterinary Medicines Act. Dacthal and Deramot Xtra products have been de-registered since the temporary restrictions were imposed.
The chemical is now banned in Australia, Canada, the European Union and the United States.
The Hazardous Substances and New Organisms Act 1996 requires an extensive review and risk assessment before revoking substance approvals,” says Dr Presow.
“We have now reviewed the use of this substance and the risks and mitigations in detail. We believe the human health and environmental risks outweigh the benefits of continued use.
“If revoked, all herbicide approvals containing chlorthal-dimethyl as an active ingredient would no longer be approved under the HSNO Act and banned for import and manufacture in New Zealand.” 
The ban would come into effect immediately, and we would then propose a six-month period for disposal of existing stock.
Submissions close on Monday, 6 October 2025.
We are seeking feedback on health and environment impacts, the economic impact if banned, and from Māori on potential benefits or concerns.
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BusinessNZ – Product labelling review welcomed

Source: BusinessNZ

BusinessNZ welcomes today’s announcement by the Ministers for Regulation and Commerce and Consumer Affairs of a long-overdue review of New Zealand’s product labelling system.
BusinessNZ Chief Executive Katherine Rich says the move has the potential to reduce unnecessary compliance costs for business and expand product choice for consumers.
“For years, businesses have raised concerns about the fragmented, outdated and overly prescriptive nature of current labelling rules, many of which are unique to New Zealand. These rules create cost and complexity without delivering additional benefit to consumers.
“Many imported products must be repackaged specifically for the New Zealand market. Others never make it to our shelves at all because the cost of bespoke production runs for our small population is simply uneconomic. That means fewer choices for Kiwi consumers.
“We hope the review’s Terms of Reference will be ambitious and wide-ranging. Labelling is not just about what’s printed on a sticker – it’s about the entire packaging system. Bespoke New Zealand-only requirements, such as mandatory pack sizes or unique wording, often force manufacturers into inefficient short production runs that raise per-unit costs and restrict market entry.
“Businesses frequently cite excessive requirements for physical labels that lead to cluttered, unreadable packaging – while the current system offers little support for digital solutions like QR codes or digital product passports.
“A review is timely. Other countries are modernising their systems to enhance traceability, sustainability, and access to product information. New Zealand should not fall behind.”
BusinessNZ supports moves to:
– Further align with key trading partners like Australia
– Increase mutual recognition of trusted international labelling standards and systems
– Enable digital labelling options where appropriate
– Streamline regulation and reduce agency duplication
– Make the system more responsive to technology and change
“We look forward to contributing to this important review. Getting it right means better outcomes for consumers, exporters, small businesses, and the wider economy,” Mrs Rich said.
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
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Auckland man gets almost 6 years prison for $1.7m COVID-19 fraud

Source: Ministry of Social Development

An Auckland man was jailed today for more than $1.7m in fraud related to COVID-19 relief schemes.
In one of the largest fraud cases of its kind to date, Luke Daniel Rivers (aka Mai Qu) was sentenced in the Auckland District Court to 5 years and 11 months imprisonment.
Rivers pleaded guilty to 29 charges, including Wage Subsidy and Small Business Cashflow Scheme fraud, and money laundering.
The charges were brought jointly by the Ministry of Social Development (MSD) and Inland Revenue (IR).
Large-scale fraud
MSD Group GM Client Service Delivery George van Ooyen says this is an example of large-scale fraud which was premeditated, sophisticated and solely for personal financial gain.
“This case involved wage subsidy fraud, money laundering and the use of forged documents. The volume of fake documents and the repeated nature of the conduct, point to a significant degree of premeditation and sophistication,” van Ooyen says.
“What he did is an abuse of the COVID-19 relief schemes, solely for personal financial gain.
“The wage subsidy was a high trust scheme providing rapid payments up front for businesses to keep their employees in their jobs and provide some form of financial security.”
Inland Revenue Customer Segment Leader Small to Medium Enterprises Bernadette Newman says Rivers used forged documents to get IRD numbers for people who had never set foot in New Zealand, let alone worked here during the pandemic.
“Rivers used his specialist knowledge as an accountant to game the system. And he used the identities of more than 200 other people to carry out his scheme – all to maximise the amount of funds he could apply for,” Bernadette Newman says.
“He abused both the public trust in the accounting profession and his clients’ trust in him to keep their information private.
“His tax offending is effectively ongoing as he hasn’t remedied his failure to file GST and income tax returns for his four companies.”
What’s to come?
Van Ooyen said the case represents MSD’s ongoing enforcement work to uphold the integrity of the $18.8b in COVID-19 wage subsidy payments made in 2020 and 2021.
“We have active investigations ongoing. Court outcomes and debt recovery will continue beyond this.”
“As of today, 46 people have now been sentenced with a further 49 people still before the courts.
“We’ve also made civil recovery decisions in relation to 52 businesses. More than 25,000 repayments have been made, totalling $830.4 million.”
Bernadette Newman says Inland Revenue has already prosecuted 14 people for fraud involving the SBCS, the Covid Support Payment (CSP) and Resurgence Support Payment (RSP).
“Eleven cases are progressing through the court system, 5 cases where defendants are awaiting sentence, and a number of active investigations around other COVID-19 support fraud cases.
“Increased funding this year means IR can do more audits and debt collection work, and investigations into specific sectors can continue.
“It also means the great majority of New Zealand taxpayers who meet their obligations can continue to be confident that IR will find those who aren’t.”
Background:
COVID-19 relief
The Wage Subsidy scheme was administered by the Ministry of Social Development, and used a high trust approach to provide rapid payments up front to businesses affected by COVID-19 restrictions so employers could continue to pay their employees.
The SBCS loans scheme was administered by Inland Revenue, also under a high trust model. The amounts available under the scheme were determined by the number of employees employed by a business.
Wage subsidy fraud
Rivers made 28 wage subsidy applications on behalf of eight companies, with 12 of those applications being fraudulent. He got $906,818.40 in wage subsidy funds and tried unsuccessfully to get another $724,106.60.
To make the applications look real, Rivers made fraudulent IRD number applications using forged documents (including bank statements, a passport, and Immigration New Zealand documentation) and fake contact details.
He also used the details of innocent individuals that he had obtained as a tax agent and accountant to inflate the wage subsidy payments.
All the money he obtained went into bank accounts he controlled.
More information about wage subsidy cases is available here.
SBCS fraud
Rivers obtained $29,800.00 following a successful SBCS loan application. He made failed SBCS loan applications for a further $41,600.00. Rivers was not entitled to these loans for the same reasons he was not entitled to the wage subsidy funds.
Three other applications were made by Rivers on behalf of companies who he had done accounting work for. He was supposed to have deregistered two of them but instead used their details to apply for the SBCS loans.
Money laundering
When Rivers received money from MSD and IR he transferred large amounts from his New Zealand accounts to bank accounts in Singapore. One of these accounts was in the name of Lei Zhang, Rivers’ fake identity, and another was in the name of Mai Qu, his previous name.
Child Support fraud
Rivers came to New Zealand in February 2001 as Mai Qu and applied for an IRD number in April 2001. He changed his name to Luke Daniel Rivers by statutory declaration in June 2004 but continued to use both names. He applied for a new IRD number under the name Rivers in 2006, while retaining his IRD number under Mai Qu as well.
As a result of holding the two IRD numbers, Rivers was able to misrepresent his total income over seven years, enabling him to pay $45,588.90 less than he was supposed to towards the care of his child.
Income tax and GST
Between March 2020 and March 2023 Rivers failed to file income tax and GST returns for the companies he controlled.
The charges
29 charges, brought by the Ministry of Social Development ( MSD) and Inland Revenue Department ( IRD):
Knowing provision of false information to the Commissioner of Inland Revenue in relation to a matter under the Child Support Act 1991 ( representative);
Using forged documents, in respect of the IRD number application forms, bank statements and a letter from Immigration New Zealand ( representative) (x 2);
Dishonestly using a document, in respect of Wage Subsidy applications, false electronic employment information returns and Small Business Cashflow Scheme ( SBCS) loan application and IRD number applications (x 17, including six representative charges);
Money laundering ( representative) (x 2);
Aiding and abetting another person in knowingly not providing information to the Commissioner when required to do so by a tax law ( representative) ( x7).
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Business Events – First-ever Raine & Horne National Conference celebrates growth, resilience, and community in New Zealand

Source: Raine & Horne

Highlights

  • Raine & Horne will host its first-ever standalone New Zealand National Conference at Rydges Rotorua on 12–13 August, bringing together real estate professionals from its 60+ office network.
  • The event featured inspiring keynotes from adventurer Kevin Biggar and psychologist Dr Paul Wood, powerful success stories from within the Raine & Horne network, and the announcement of a major two-year partnership with Kiwi children’s charity KidsCan.
  • The conference will conclude with a Gala Awards Night hosted by television presenter Hilary Barry, celebrating excellence in sales, property management, and administration.

Rotorua, NZ (7 August 2025): Raine & Horne, one of Australasia’s leading real estate brands, has marked another significant milestone in New Zealand with its first-ever national conference, uniting agents from its 60+ office network.

The two-day event, held on 12–13 August at Rydges Rotorua, comes just over a year after Raine & Horne cemented its footprint in New Zealand by acquiring the Mike Pero Real Estate Group from Liberty Financial Group.

James Shepherd, General Manager, Raine & Horne, said the conference marks a defining chapter in the super brand’s New Zealand journey.

“When we launched into the New Zealand real estate market in 2023, we knew it was the start of something special,” Mr Shepherd said.

“Fast-forward just over two years and not only have we grown to over 60 offices, but we’ve also welcomed the Mike Pero Real Estate network into the Raine & Horne family.”

Mr Shepherd continued, “Our inaugural conference is about more than celebrating growth—it’s about connecting, sharing ideas, and setting the stage for even bigger achievements in the future.”

A landmark program of ideas and inspiration

The 2025 Raine & Horne New Zealand Conference promises an inspiring program featuring keynote presentations from adventurer and author Kevin Biggar, who famously won the 2003 Transatlantic Rowing race and became the first Kiwi to trek unsupported to the South Pole.

Also taking the stage is Dr Paul Wood, renowned psychologist and motivational speaker whose journey from prison to best-selling author is nothing short of extraordinary.

Conference attendees will also hear powerful stories from within the Raine & Horne network, including some from agents who have overcome extraordinary challenges, to achieve remarkable success.

“What sets our conference apart is that it’s not solely focused on business operations,” said Mr Shepherd.

“This event is about connection, inspiration, and celebrating resilience during a time of significant change for our network.”

Community partnership with KidsCan

Another key highlight of the conference will be the announcement of a significant two-year financial partnership between KidsCan—a charity dedicated to helping Kiwi children living in poverty—and Raine & Horne.

“Giving back to the communities we serve is part of who we are,” said Mr Shepherd. “Partnering with KidsCan allows us to make a tangible difference where it matters most.”

Networking, learning, and celebration

The two-day conference will wrap up with a spectacular Gala Awards Night at Rydges Rotorua, hosted by prominent television presenter and Seven Sharp host Hilary Barry.

The event will celebrate excellence and innovation in sales, property management, and administration across the Raine & Horne network.

Drawing inspiration from the nearby Redwood Forest, the gala will reflect the natural beauty of the central North Island location.

“Our people are our greatest strength. The Conference in combination with the Gala Awards is about recognising their achievements and ensuring they have the tools and connections to thrive,” Mr Shepherd concluded.

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Economy – Strong relationships highlighted in RBNZ Relationship Charter Survey

Source: Reserve Bank of New Zealand

7 August 2025 – Strong relationships continue to be built and maintained with New Zealand's banks, insurers, and Non-Bank Deposit Takers, the Reserve Bank of New Zealand's latest Relationship Charter Survey shows.

In this year's Relationship Charter Survey, 97% of regulated entities rated their relationship with the Reserve Bank as 'good' or 'very good'.

The relationship charter sets out principles for maintaining the best regulator-regulated relationships possible and commits Te Pūtea Matua and the financial sector to a mutual understanding of how both parties will work together to achieve this.

Director Specialist Supervision, Scott McKinnon says building good relationships with industry, guided by the Charter, helps to keep New Zealand's financial system stable and resilient.

“It is heartening to see through the Relationship Charter Survey results that we have continued to maintain positive relationships with the deposit taking and insurance sectors.”

“Half of stakeholders highlighted our communication as a key strength of the past 12 months. In particular, they appreciated our responsive, visible and timely communication style.”

“We will also be taking on board some of the valuable suggestions about how we could do things better and make changes where appropriate,” Mr McKinnon says.

The Relationship Charter was launched in 2018, and this is the sixth year the Reserve Bank has commissioned a survey of how key stakeholders consider it is performing against the commitments in the Charter.

The 2025 edition of this survey was focused on more senior stakeholders who we have the most regular contact with, reducing the number of respondents from previous years, but providing more valuable insights.

More information

Relationship Charter Survey 2025 Results: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=87367991d6&e=f3c68946f8

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Insurance Sector – Insurers call for stronger direction on reducing natural hazard risk

Source: Insurance Council of NZ

The Insurance Council of New Zealand | Te Kāhui Inihui o Aotearoa (ICNZ) is urging the Government to provide stronger national direction to better manage natural hazards risks like flooding and landslips and avoid developments in high-risk areas.
The Government has recently consulted on a National Policy Statement (NPS) for Natural Hazards, aimed at improving how natural hazard risks are considered in land-use planning decisions.
“New Zealand faces significant natural hazard risks, including flooding, landslips, coastal inundation and sea level rise and these risks are intensifying with the science indicating the prospect of more frequent and severe climate related events,” ICNZ Chief Executive Kris Faafoi said.
“As Prime Minister Christopher Luxon acknowledged recently, we can’t keep building in dumb places that put Kiwis in harm’s way. By reducing the risk, we keep insurance accessible for our communities.
“We support the Government’s focus on strengthening the planning system to deal with natural hazards. A strong, clear national policy will empower councils to control development in areas exposed to high hazard risk.
“The draft NPS from the Ministry for the Environment is an important step forward and an improvement on the current approach.
“However, we believe it doesn’t go far enough. Many councils are already following the intent of the draft NPS in their natural hazard decisions. What’s needed now is a policy with real strength.
“We support strengthening the NPS to give councils greater confidence to stop development in high-risk areas. We believe the NPS in its current form creates more uncertainty which may increase the risk of councils having their decisions relitigated.
“ICNZ and its members have been engaging with councils and agree that clearer rules and stronger tools are needed to help them make better decisions to reduce risk and protect their communities. This will also support the future accessibility of insurance in these areas.
“The proposal also risks undermining national consistency by offering too much flexibility, which could dilute the effectiveness of the policy.
“We all know it makes sense to act before disaster strikes, rather than start over, particularly as New Zealand faces increasing risks from climate-related events.
“A clear and strong national direction will help lay the foundation for a more resilient future that protects communities, supports informed planning decisions, and ensures insurance remains accessible,” Kris Faafoi said.
You can read ICNZ’s submission on the NPS for Natural Hazards here.