AGP Executive Report

Reserve Bank payments overhaul: Finance has endorsed the RBNZ to lead a strategy for modernising New Zealand’s payments system, with consultation on fixes for outdated infrastructure and limited real-time capabilities. Auckland harbour crossing: Transport Minister Chris Bishop is defending commissioning yet another report for a second Waitematā crossing, saying previous work covered the “why” and the next step must answer the “how” via a detailed business case. Retail finance and lending distribution: ASB says its mortgage adviser distribution model is steady at 62% via third parties, while it absorbs higher funding costs; separate lender news shows Bluestone joining the LMG broker panel. Banking and energy earnings: Vector lifted revenue and invested record sums in Auckland’s network; Mercury also reported stronger hydro-driven results and dividend guidance. AI and consumer tech: Woolworths trialled facial recognition in Auckland support operations, while a study finds AI search answers diverge widely across major platforms. Business cost cutting: oOh!media says it has banked $12m in savings from resets and exits, with more expected. Sector policy and jobs: Hospitality NZ released its election manifesto, pushing for immigration settings, skills pathways, and changes to taxes and visitor levies. Local industry support: A $1.5m poultry biosecurity grant targets preparedness for potential H5 bird flu. Corporate moves: Candida’s NZ arm is proposed to wind up, potentially affecting 57 roles. Infrastructure and data centres: Datagrid begins major “horizontal construction” in Southland for an AI data centre campus, with a substation deal and target timelines.

Auckland Infrastructure: The Government has ordered a fresh, Crown-led detailed business case for options for a second Waitematā Harbour Crossing, including a tunnel, and will commission another study into the Meola Reef option backed by Mayor Wayne Brown—pushing key decisions further out. Housing & Cost of Living: ASB says any easing in tightening is unlikely without clearer inflation confirmation, with unemployment still elevated (youth 15–24 at 17.2%) and wage growth lagging inflation, while Westpac flags house sales falling for a fifth straight month and prices diverging sharply by region. Retail & Markets: NZX 50 slipped about 1% as a2 Milk weighed on sentiment after weaker China sales, while JB Hi-Fi’s NZ-linked retail outlook rattled investors after July sales reversed in Australia. Supermarkets & Tech: Coles and Woolworths are testing facial recognition to reduce retail crime, with reporting that Coles researched the tech in New Zealand. Health & Care: The Health and Disability Commissioner found a tetraplegic man was left without proper support for over 12 hours after a carer failed to turn up, highlighting staffing and service failures in contracted aged care. Business Appointments: GHD has appointed Andrew Jackson as regional general manager for New Zealand Pacific, effective 31 August. Energy & Trade: Finnair Cargo appointed ACP Worldwide as its GSSA for Australia and New Zealand ahead of its first-ever Australia service.

Meridian Energy: Meridian has appointed Fraser Whineray as a non-executive director from 28 September, adding governance depth from roles including Mercury CEO and Fonterra COO. Wages & inflation: Employment Hero says NZ wage growth slipped to -0.1% month-on-month and -0.4% year-on-year in July, widening the real cost-of-living squeeze. Prices: Stats NZ reports food inflation eased to 1.9% year-on-year in July, while power and gas keep climbing; fuel prices fell again. Retail demand: Retail NZ says July electronic card spending lifted 3.5% year-on-year, with gains in durables and hospitality. A2 Milk: a2 Milk’s full-year profit fell 44% after China-label infant formula supply disruptions pushed customers to rivals; stock availability is improving and China recovery is expected through 2027. Housing policy: Housing and Infrastructure Minister Chris Bishop says there’s no legal way to pause fast-track housing approvals, rejecting mayor calls for an immediate halt. Property market: Resale data shows more homes are selling at a loss, with loss-making sales rising to 13.1% in the latest quarter. Construction: Fletcher Building commentary points to ongoing input-cost uncertainty and delays, even as concrete production improves. Business & media: oOh!media reported subdued ad-market conditions but expects strengthening into December, with private equity I Squared backing its $1.04b takeover. Tech sector: A new report estimates NZ’s venture-backed enterprise value at NZ$133b, including Rocket Lab and FNZ as top standouts.

Banking & legal: ANZ Group says Q3 cash profit rose 2% to A$1.90b, but was hit by a NZ$125m provision tied to a New Zealand class action ruling. Monetary policy: The Reserve Bank kept low-deposit lending rules unchanged as mortgage rates climb, a key signal for housing affordability. Housing & cost pressure: Reserve Bank and market commentary point to a cooling property backdrop, with renters reporting mould and damp despite healthy homes promises. Politics & donations: Opportunity leader Qiulae Wong defends accepting more than $400,000 in large donations while backing a ban on donations above $30,000 and a public lobbying register. Tax debate: National presses Chris Hipkins to clarify Labour’s additional proposed taxes, including a streaming levy and a return of the ute tax. Tech & competition: An Auckland academic argues big tech should face structural regulation, saying platforms now control essential digital infrastructure. Crime & proceeds: Police secure a final forfeiture order in Operation Silk, transferring $92,000 to the Crown after Mongols gang drug-dealing. Trade & jobs: Việt Nam’s exports to New Zealand rose 18.8% year-on-year in H1 2026, led by electronics and phones. Infrastructure & public life: Auckland’s St James Theatre tower is visible again after 70 years as restoration work pauses the cladding. Energy & markets: Commentary says New Zealand’s electricity market, not data centres, is the real problem.

Election 2026 Politics: Winston Peters says the election is a pivotal moment for New Zealand as National tries to reconnect with voters after two leadership confidence votes, with cost of living still dominating the debate. Opportunity Tax Plan Debate: Te Pāti Māori’s campaign launch in Tairāwhiti puts cost-of-living, housing, hauora and whenua at the centre, while Opportunity’s plan is criticised for leaving some Kiwis worse off—especially those returning from overseas. Housing & Tenancy: Aotearoa Renters’ Survey 2026 finds 42.7% of renters report mould, damp or draughts despite healthy homes assurances, adding pressure on landlords and regulators. Retail & Safety Law: Parliament has expanded citizen’s arrest powers, allowing “reasonable force” to detain offenders at any time, a move Business NZ and others warned could raise risks for untrained people. Payments & Tech: Mastercard payments were declined across New Zealand and Australia after a scheduled system update, with the issue later fixed. Energy & Industry: Foxton’s 220MWp solar farm is fast-tracked, while the Government also approved a new onshore Taranaki petroleum permit—fuel and renewables both moving through approvals. Business & Community: Kiwi Park’s “A Day for Dylan” fundraiser backs a local child’s cancer treatment journey, with major support already raised via a golf day.

Health Insurance Pressure: New Zealanders are dropping private health cover faster (policy cancellations up to 9% in 2025) even as insurers pay out more per member, with average claims rising 75% to $1,921—raising affordability pressure across the market. Health System Strain: Middlemore Hospital is hitting “terrifying” emergency department capacity, with corridor treatment and ambulance crews effectively tied up, highlighting ongoing pressure on hospital throughput. Telecom Competition: The Commerce Commission says fibre competition still isn’t strong enough to deregulate key wholesale services, keeping regulation on point-to-point, transport, and co-location/interconnection. Housing & Infrastructure: Wellington’s Mt Victoria tunnel fast-track is moving through consent under the Fast-track Approvals Act, but the project still has no money and no start date—while inner-city traffic changes are being planned. Visa Policy: New Zealand has set out eligibility for a special Pacific Access Category resident visa for citizens of Fiji, Kiribati, Tonga and Tuvalu aged 18–45, with job/partner and income requirements for indefinite stay. Business & Regulation (India, global relevance): India’s NITI Aayog proposes easing professional licensing and qualification recognition across law, accounting, engineering and healthcare—aimed at improving mobility in a services-led economy.

Transport & Housing Infrastructure: Wellington’s SH1 Wellington Improvements fast-track application is lodged for the second Mt Victoria and Terrace Tunnels, with $185m approved for design and early works but no construction funding or start date yet—critics call it a “ghost project.” Banking & Housing Costs: ASB’s parent CBA links weaker NZ second-half results to higher swap rates and tougher competition compressing fixed home-loan margins. Insurance Affordability: IAG NZ warns natural-hazard risk reduction at the current pace could force it to change pricing or withdraw cover from higher-risk areas. Migration: Stats NZ says net migration rose to +17,600 in the year to June, mainly because fewer New Zealanders left. Media & Jobs: RNZ plans further cuts, reopening voluntary redundancy and signalling about 25–30 roles reduced as government funding drops. Food Fraud Watch: Avocado oil testing commissioned by an industry group alleges some NZ supermarket products were diluted; brands reject the claims. Business Growth & Tech: Sophiie AI raises A$5m seed to expand its AI operating system for trades and service firms across NZ and beyond.

Markets & Tourism: The NZX 50 rose for a second week, helped by stronger international visitor numbers lifting sentiment around SkyCity, while Heartland and ANZ held up as property cooling weighs on lenders. Employment Court: Jarden faces its first face-off with departing senior staff next week in an Auckland Employment Court hearing. Housing & Lending: The Reserve Bank says it will keep current loan-to-value ratio settings after its annual review, arguing housing risks are contained and higher-risk lending remains manageable. Business & Tech: Xero research highlights a financial knowledge gap among small business owners, with many avoiding help despite high confidence. AI in Schools: The Education Review Office calls for a national framework for AI use, warning many teachers see negative effects on students’ critical thinking. Immigration: Visitor visa applications will move to Immigration Online from 24 September 2026, with old forms phased out. Transport Disruption: Fog is causing flight cancellations and delays at Auckland and Wellington airports. Geopolitics: China rejects NZSIS claims of espionage “at scale,” escalating bilateral tensions. Sports Governance: New Zealand Football withdraws support for FIFA president Gianni Infantino, breaking with the wider OFC. Public Health: A new study urges a meth policy threshold u-turn after finding higher residential contamination since the 2018 change.

RBNZ Housing Policy: The Reserve Bank of New Zealand says it will keep current loan-to-value ratio limits, with owner-occupiers still allowed up to 25% of new lending above 80% LVR and investors up to 10% above 70%, alongside existing debt-to-income guardrails. Auckland Transport & CRL Access: Auckland Transport is consulting on bus and transit lane changes on Remuera, Mount Eden and Sandringham roads to speed trips to City Rail Link stations. Insurance Costs & Competition: IAG New Zealand reports insurance profit down to NZ$563m (down 22.9%) as gross written premium slips to NZ$4.06b, while it says retail customers are still growing and about a third of customers saw premium reductions. AI Security for NZ Businesses: CyberCX says one in three security assessments found severe issues, with AI application testing showing severe findings at higher rates than traditional web testing—pushing the message that preparation matters now. South Island Funding Fight: South Island leaders call “highway robbery” over transport funding, saying the region gets just 11% of the 2024/27 National Land Transport Programme despite 24% of the population. Data Centres & Local Backlash: DataCentres NZ launches a sector-wide data centre strategy, but business owners are still asking practical questions about data handling and risk as hyperscale plans spread. SkyCity Restructure: SkyCity begins consultation on potential cuts of about 200 roles, mainly in Auckland, as customers rein in spending. Trade & Agriculture: New Zealand and Vietnam announce expanded agricultural market access, including NZ honey, deer velvet and venison, plus cooperation on research and sustainable farming.

Banking & Costs: ASB says profit fell to $1.318b for the year to 30 June 2026, with a $135.6m class action settlement and higher expenses driving the hit. RBNZ Regulation: Reserve Bank assistant governor Angus McGregor says prudential changes are moving from design to delivery, including the Deposit Takers Act and an insurance supervision exposure draft, while also pushing payments modernisation. Markets: NZX 50 rose 0.6% as inflation expectations cooled in the RBNZ survey; ANZ shares led gains after a smaller mortgage-application decline. Energy Security: NZ approves a 10-year petroleum mining permit for the Puka field in Taranaki, aiming to add gas supply and export earnings. Insurance Outlook: IAG flags tough conditions for intermediated business but expects retail to drive premium growth, alongside an accelerated tech overhaul. Environment & Courts: Forest and Bird returns to court over the Dome Valley landfill case, arguing rules can’t be offset for 12km of streams. Tech & Cyber: A NZ agency releases a free WordPress plugin to identify AI bots and block scrapers that fake identities. Trade & Diplomacy: Luxon and Vietnam’s To Lam agree steps to deepen ties, including an agricultural package expanding market access.

Housing Reset: Kāinga Ora has been given the green light to “reset” the Arlington social housing plan in Wellington, cutting it to 104 homes (from 301) and setting construction for 2027–2029, with up to $6m in support for vulnerable residents. Cost-of-Living Tech: A Taieri dairy farmer has launched CheckMyTrolley, a free grocery price app that helps shoppers compare supermarket online lists to find the cheapest option. Cyber Security: New research says one in three ANZ organisations that faced ransomware still paid demands, and many didn’t get their data back—highlighting weak recovery readiness. RBNZ Financial Stability: Reserve Bank officials set out priorities for a resilient financial system, stressing fit-for-purpose, risk-based prudential regulation with less unnecessary burden. Trade Barriers: ExportNZ warns non-tariff barriers cost exporters more than $9b a year, pushing for faster removal of certification, labelling and customs obstacles. Property Market Standoff: Real Estate Institute data shows July was the fifth-slowest on record, with prices steady but sales down 10% and “days to sell” rising to 50. Digital Compliance for Exports: OwlQR backs ExportNZ’s push for e-labelling and digital trade standards, arguing printed product info locks exporters into costly delays when rules change. Local Infrastructure: The Chatham Islands’ $50m airport upgrade is complete, securing runway and terminal improvements for decades. Online Safety: Netsafe’s week-long Netsafety Week 2026 kicks off 17–21 August, focusing on AI risks, scams, abuse and youth wellbeing.

Politics & Leadership: New Zealand PM Chris Luxon has survived a second National Party leadership challenge in four months, winning a caucus confidence vote after sacking challenger Chris Penk and ending his portfolios; Penk says he won’t seek re-election ahead of the 7 November election. Markets & Currency: The NZ dollar slipped in a risk-off session as oil prices stayed elevated and investors waited for US inflation data; NZX 50 also fell for a second day, with Contact Energy and Fisher & Paykel Healthcare among the movers. Banking & Lending: ASB reported its strongest business lending growth in nearly a decade to 30 June 2026, with business and rural lending driving gains even as profit dipped and costs rose. Insurance & Weather Costs: Suncorp NZ’s profit fell to $316m as more frequent, extreme weather events hit claims, while the wider group flagged claims inflation pressures. Media & Deals: Sports Entertainment Group agreed to buy MediaWorks for NZ$130m, aiming to build a trans-Tasman audio group and lift earnings via identified synergies. Energy & Infrastructure: Aspiring Materials secured $15m from the Regional Infrastructure Fund to build a $31m critical minerals plant in Southland, targeting minerals made from quarry waste. Labour Market: SEEK NZ says job ads fell again in July, though AI-related roles and skills references continued to rise. Transport & Labour Rights: A union alleges Kiwi bus drivers were “duped” into Sydney jobs with a bonding payment that left them unable to return home without paying thousands, with court action underway.

Aviation & Regional Connectivity: Air New Zealand and Air Chathams have expanded their interline partnership so travellers can book a single journey linking the Chatham Islands to Air NZ’s domestic network, with Whanganui added to the mix. Housing & Infrastructure: Auckland and Queenstown mayors have asked the Government to pause fast-track approvals for new greenfield housing, arguing councils can’t service subdivisions fast enough and that ratepayers and taxpayers end up footing the bill. Energy & Industry Investment: Regional Development Minister Shane Jones has earmarked $30m for hydrogen projects and $15m for a Southland minerals plant to extract hydrogen and critical minerals from quarry rock, plus a separate Chatham Islands package for wharves, fuel storage and air links. Climate Adaptation Funding: The Climate Change Commission says New Zealand is spending 97% of hazard money on responding and recovering, with only 3% on preventing damage, warning action is too slow and poorly coordinated. Politics & Business Confidence: Prime Minister Christopher Luxon faces an urgent National caucus meeting in Wellington after leadership speculation, with Reuters noting weak polling amid economic strain. Retail & Consumer Demand: Westpac reports July card spending rose 2% per person, helped by cheaper petrol and World Cup nights boosting restaurants and entertainment. Labour & Gig Economy: Workers First and Uber have agreed a process to settle claims from 1,600+ drivers, with individual confidential offers to be made. Sports Business: Les Mills International has appointed outgoing One NZ boss Jason Paris to lead its next growth phase, while netball’s top league is in talks for a potential private franchise model from 2028.

Markets & FX: The NZ dollar rose versus Australia after the RBA held rates but kept a hawkish warning on inflation, while the S&P/NZX 50 slipped 0.2% with Mercury NZ and Meridian weighing. Financial services deal: Craigs Investment Partners and Barrenjoey confirmed a tie-up covering Craigs’ investment banking, sell-side research and institutional equities, with Justin Queale moving to executive chair of Barrenjoey NZ. Regulation & governance: FMA chair James Miller will step down from Ryman Healthcare and Vista Group boards once replacements are in place. Corporate appointments: Microsoft named Nick Walton as NZ managing director from Sept 7, and One NZ reshuffled its exec team ahead of Nick Judd’s CEO start date. Food & agribusiness: T&G Global reported modest revenue growth and a jump in operating profit, driven by apples, while agreeing to sell T&G Fresh subject to Commerce Commission clearance. Cyber & industry risk: Dragos says ransomware is increasingly disrupting industrial production by targeting enterprise IT systems that support OT environments. Trade diplomacy: Bangladesh asked New Zealand to back its RCEP bid, LDC extension and a bilateral FTA. Housing crime: The SFO alleges a mortgage fraud syndicate used forged IDs and documents to obtain loans against victims’ properties.

Public Finance Debate: Taxpayers’ Union is pushing back hard on Opportunity’s plan to let net core Crown debt exceed Treasury’s 50% of GDP ceiling, arguing the interest bill could hit households and that NZ can’t afford less “headroom” in a high-borrowing-cost economy. Markets & Energy: Oil jumps as Strait of Hormuz reopening talks stay tangled, lifting inflation worries and weighing on Wall Street; NZ investors are watching the same risk spill into local rates and equities. Local Government Reshuffle: Councils are racing to meet Head Start deadlines, with North Canterbury, Wairarapa and Bay of Plenty proposals now in Cabinet’s hands, while Christchurch has appointed Bede Carran as chief executive amid financial pressure. Power & Cost of Living: Consumer NZ data shows switching interest is concentrating on Electric Kiwi and Genesis, while Westpac says it’s blocking $75k+ a day in “subscription trap” payments. Banking Access: The Reserve Bank is considering whether to set a minimum cash access rule as bank-owned ATMs and branches keep shrinking. Business & Innovation: Rocket Lab reports record revenue and is unveiling its GHOST “launch-anywhere” system, while BYD launches the upgraded Atto 3 Evo in NZ. Environment & Planning: A climate adaptation review says progress is too slow, and Forest & Bird warns proposed resource management reforms could weaken nature protections.

Markets & Energy: The NZX 50 rose 0.5% to 13,888.24 as Contact Energy’s strong annual result helped sentiment, with Infratil’s CDC Data Centres exploring a Taranaki data-centre development with Contact. Banking & SMEs: A former Wattie’s boss says NZ banks are leaving SMEs behind, arguing business lending is far lower than in Australia and that banks lean too heavily on property security. Politics & Governance: Labour leader Chris Hipkins has formally ruled out working with NZ First, citing Peters’ “overt racism” and warning it would be bad for social cohesion. Corporate Deals: JBS has agreed a joint venture with Indonesia’s sovereign wealth-linked Danantara, with the plan to expand protein production across Indonesia, Southeast Asia, Australia and New Zealand. Regulation Watch: Commerce and Consumer Affairs Minister Cameron Brewer says conflicts around the FMA chair role can be managed, after concerns were raised about governance overlaps. Housing & Local Government: QV data points to a broad winter slowdown as prices keep falling, while councils face the pressure of the Head Start amalgamation push. Energy Prices: Contact Energy says any residential bill relief is “complicated” as lines and transmission charges are still forecast to rise.