Category: Business

Source: Radio New Zealand

Forensic accountants are continuing to find “areas of concern” as they look into the accounts of the failed Du Val Group.

Statutory managers have released their latest six-month report into the group of about 70 entities that collapsed in 2024 owing more than $300 million to hundreds of people.

Its founders Charlotte and Kenyon Clarke have had their personal assets and passports frozen.

In the latest report, the statutory managers said they could not give many details about their latest discoveries because they did not want to prejudice any formal action that may come later.

The Financial Markets Authority was also investigating the group and had the power to pursue charges if warranted.

Today’s report showed the statutory managers still had many unanswered questions – the Clarkes had refused to be interviewed and had gone to the Court of Appeal seeking the right to refuse.

The managers said extensive forensic accounting analysis needed to continue partly because of the group’s “materially incomplete” accounting records.

“While investigations have progressed and further related issues have been identified for analysis, to ensure that any potential subsequent formal action is not prejudiced, no further information is currently able to be disclosed regarding our ongoing investigations into these areas of concern,” they said.

Broad concerns identified in earlier reports remained, including about GST transactions and the lack of clarity about goods paid for by the company but possessed by the Clarkes.

Since the last report, the debt owed by the group had fallen from $268 million to $226 million.

That was partly because some of its property developments had been sold including the Earlsworth, Sunnyvale and Edmonton residential projects.

None has been sold for a high enough price to cover the debt owing on them.

Investors in Du Vals Build to Rent Fund were likely to receive about 41 cents in the dollar on their investment after the sale of the fund’s residential properties in May last year, the report said.

Work was underway to sell to more developments, it said.

The report also gave an update on a British legal case against some Du Val entities that had wound up in New Zealand’s courts.

The British courts ordered Du Val to pay $1.35m (NZD) in damages and $164,205 (NZD) in costs.

The person awarded the costs was seeking to have the judgement recognised in New Zealand but the statutory managers opposed that in the High Court, the report said.

The judgement was pending.

The statutory managers are John Fisk, Stephen White and Lara Bennett.

They had previously been working under the PWC banner but the company sold its business restructuring arm to the global firm Teneo earlier this year.

The Authority said today it could not provide any update on where its investigation was at for “legal and confidentiality” reasons.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/du-val-property-group-collapse-forensic-accountants-continue-to-find-areas-of-concern/

Source: Radio New Zealand

Foodstuff’s petrol stations say they will continue to offer discounts despite stores running dry and operating day to day.

Petrol stations across the country are seeing a surge of drivers filling up as fuel prices rise amid fears over the Iran war and potential shortages.

Finance Minister Nicola Willis said as of Sunday, New Zealand has 41.3 days worth of petrol 47 days of diesel and 49 days of Jet Fuel but they are preparing for the ‘worst case scenario’ from a prolonged conflict.

On Friday morning, some Pak ‘n’ Save and New World petrol stores had closed their stations because they were empty and awaiting delivery.

New World Levin had been waiting for more than two days. Consequently, the Gull station across the road was very busy.

Pioneer New World in Palmerston North and Pak’ N’ Save Hawera were also without supplies on Friday morning.

A Foodstuff’s spokesperson said fuel was available across New World and PAK’n SAVE sites, and there was plenty of supply.

“The increased demand has meant some sites have temporarily run out ahead of scheduled deliveries.”

Foodstuff’s said there were no changes to it’s fuel discount program at this time.

“We continue to closely monitor demand and work proactively with our suppliers to maintain continuity at all sites. “

Pak ‘N’ Save Kapiti said it had been without stock but was refilled overnight.

“We’re still operating on a day-to-day basis as demand remains high and our supplier is finding it challenging to keep up.”

Overnight, petrol price app Gaspy updated to allow it to remove stores/stations from the site when they have run out of fuel.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/foodstuffs-petrol-stations-continue-to-offer-discounts-despite-stores-running-dry/

Source: Radio New Zealand

Genesis Energy says its $300 million rights issue has been strongly supported, raising $242.7 million from eligible shareholders – including the Crown, which will maintain its 51 percent stake.

The offer opened on 23 February, giving investors one new share for every 7.9 held, and about 81 percent of eligible shareholders took up the offer.

Genesis said shareholders who exercised all their rights also applied for an extra $48.1 million in additional shares, which will be considered in Friday’s shortfall bookbuild by its underwriter, local investment bank Jarden.

Chief executive Malcolm Johns said the company was delighted with the response from its shareholders, including the Crown.

“The success of the equity raise is a strong endorsement of the Gen35 strategy from shareholders,” he said.

To complete the shortfall bookbuild, Genesis has asked the NZX and ASX to halt trading in its ordinary shares and subordinated bonds from the start of trading on Friday.

The halt will be lifted once the bookbuild results are announced, or when markets open on 24 March, whichever comes first.

The company said the halt was needed to ensure the bookbuild could be conducted fairly, without some investors having information before others.

Shareholders who did not take up their rights – along with those ineligible to participate – may receive a pro‑rata payment if the bookbuild price ends up higher than the rights‑issue price of $2.05, although this is not guaranteed.

Settlement of the new shares is expected on 24 March for ASX investors and 25 March for NZX holders, with trading beginning on 25 March.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/genesis-says-300-million-rights-issue-strongly-supported/

Source: Radio New Zealand

• Reserve Bank to increase media events after cash rate decisions
• Will have online news conference after cash rate reviews, starting 8 April
• Previously cash rate reviews only had written statement
• Governor Anna Breman to speak about Middle East impact on economy next week

Reserve Bank governor Anna Breman has moved to deliver on her pledge to improve the central bank’s communication and transparency.

She is due to speak to business leaders next week on the RBNZ’s February monetary statement and the country’s payments system, but will now directly comment on the conflict in the Middle East.

“Due to the wider economic impact of the ongoing conflict in the Middle East, this speech will now focus on the potential impacts of this evolving situation on the New Zealand economy,” the RBNZ said in a statement.

The speech will be released ahead of delivery and Breman will do a news conference and briefing for economists.

In the past, the RBNZ has entered a monetary “cone of silence” in the run-up to a meeting and decision about the official cash rate (OCR).

The next decision is due on 8 April and would normally only be a short statement and a summary of the meeting of the monetary policy committee.

But the April decision will be followed by an online news conference, which will now become standard practice.

In the past the RBNZ has only given media conferences after a quarterly monetary policy statement, along with full economic forecasts and interest rate track.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/reserve-bank-head-anna-breman-will-publicly-speak-about-the-iran-conflict/

Source: Radio New Zealand

Rising oil prices are expecting to put pressure on prices across New Zealand.

But from food to coffee and petrol to clothes, what are sectors expecting?

RNZ set out to ask.

Petrol

Mike Newton, spokesperson for fuel monitoring app Gaspy, said if crude oil prices were to remain at Thursday afternoon levels, after rising 10 percent overnight, the national average price for 91 would be about $3.30 a litre.

That was about 15c more than the average at the time but some petrol stations were already charging at that level.

“Some economists and analysts are talking about crude rising ot US$200 a barrel and if that were to happen a $4 national average would not be out of the question. Early on in the Russian invasion of Ukraine, crude topped out at US$119 a barrel.”

Restaurants

Nicola Waldren, general manager of the Restaurants Association said it had been talking to restaurant and cafe members over the past few weeks.

“What we’re hearing at this stage is that significant price changes haven’t come through to them yet so they are in a bit of a wait and see. There are still a lot of unknowns about how long the impacts are going to go on for but we are firmly of the view that prices will get passed through to businesses.”

She said the association was advising restaurants to look at their menus, keep ahead of supplier bills and be across price changes coming through so they could adapt if they needed to.

“How much it might change is a difficult thing to answer because all the businesses are different, they’ve got different menus, they’ve got different supply chains… but hospitality businesses are small, they’re local businesses, we’re slowly coming out of some really tough years and now we’re facing this unexpected headwind.

“If it’s a sustained period of time when those cost pressures come on then we can expect some changes to pricing.”

She said restaurants were aware many households were squeezed in terms of what they could afford to pay but many hospitality businesses were working with such small margins that they would need to pass on increases.

Waldren said some businesses were concerned about being able to access products.

“Businesses are looking at are there ways to adapt their menus, source alternative ingredients… there’s a big focus on sourcing local from local suppliers that will probably help to mitigate some impacts but I think the fuel price changes are going to affect the whole supply chain.”

Coffee

Richard Corney of Flight Coffee said coffee bean prices had dropped from record highs but were still high compared to the past.

But there were concerns about the cost of everything else rising to push up the price of coffee in New Zealand cafes, he said.

“We’re already seeing shipping cost skyrocket back to pandemic levels, adding huge differential costs per kilo to landed coffee imports in NZ.

“Beyond that, packaging companies have alerted us to increase in packaging costs due to the constraint of plastics derived from oil.

“And to top it all off, in the coming months Brazil will need fertilisers to fed next year’s crop, and there’s major constraints on this due to the conflict in the Middle East – so what’s in effect been a great harvest out of Brazil, now faces existential threats that may very well force the commodity price higher or keep it at elevated levels.”

Fuel shortages could also make it hard to move coffee from storage locations to where it needed to be, he said.

But he said coffee prices were already getting to their limit in terms of what consumer would pay.

“We’re discovering, if not some parts of it’s been discovered, the ceiling of what consumers are able to pay … it becomes a point where the market will dictate its value.

“We’ve asked a lot from our customers and they’ve responded wonderfully but you can only go so high, right? You can only pass on so much before it becomes unsustainable.”

Construction

Auckland University of Technology construction expert John Tookey said the cost of building would rise.

“Anything that involves either the formation of materials or the transportation of materials is going to be massively affected … the kicker as far as construction materials are concerned is simply the fact that they tend to be high volume, low value and they are very energy intensive to transport.”

He said prices would probably rise in anticipation.

“Stockists start hedging knowing that it’s going to start creeping up… they’ll start to feed that into their quoted prices.

“We’re already seeing the cost of diesel at the pump going up and as soon as diesel starts going up then transportation of materials goes up and up and up.”

He said he did not want to guess at how much construction prices would rise.

“I think that sort of prediction would age like milk in the sun.”

Retail

Carolyn Young, chief executive of Retail NZ, said the sector was already seeing increases in distribution costs and for things such as couriers.

“It’s a higher impact on goods and services being moved around the country because a lot of freight companies are using trucks that run on diesel.”

She said supermarkets, grocery retailers, fruit and vegetable outlets and bakeries would have increased transport costs and might not be able to absorb them.

“Some will and some won’t. It will depend on the profitability of the business and the reserves they may have,”

People bringing in goods from overseas would also be affected.

“In terms of grocery,. they’ve got good supply of stock in the distribution centres but stock is always coming in.”

For things such as apparel or DIY or jewellery, she said, freight ships were staying in Singapore longer to make sure they were 100 percent full.

“The longer they take to leave port and fill up, the higher the cost of the fuel being passed on.

“If you are importing goods they’re going to land in Auckland, Tauranga or Lyttleton then they’re going to be distributed to your site or sites – so there’s two lots of costs that can be passed on a that point as well because you’ve got costs coming in internationally and then you’ve got domestic costs from the price of fuel in New Zealand.”

She said prices would rise if it was a sustained conflict.

“Retailers that are able to absorb as long as they can – it will impact their margins long-term and their profitability.”

Earlier, Infometrics chief forecaster Gareth Kiernan said fishing was particularly exposed to oil price rises.

BNZ chief economist Mike Jones said food prices were likely to rise faster but it was hard to quantify. He expected general inflation to peak at 3.8 percent in the second quarter.

Uber

Uber said fuel price increases were having an effect across a wide range of industries, including for driver partners and delivery people who used the Uber and Uber Eats app to earn.

“Uber is actively monitoring conditions as they evolve and regularly reviews ways to support driver partners and delivery people as circumstances change.

“We are always looking for ways we can continue to support them, including our Uber Pro programme which offers discounts on fuel and EV charging, as well as other savings to help reduce their expenses.”

Supermarket delivery

At Woolworths, a spokesperson said it was closely monitoring the situation in the Middle East.

“We have no current plans to change our delivery fees.”

Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/how-much-might-prices-rise-and-when/

Source: Radio New Zealand

Lower Hutt businesses say they’re swiftly losing cash, and one’s shut up shop, as roadworks roll on in the city centre.

Authorities are sorry for the disruption, but say the work is essential.

Hutt City Council, Greater Wellington Regional Council and the Transport Agency are running multiple projects to future-proof service infrastructure, improve flood protection, develop the CBD and improve transport connection.

The obstacle course of road cones and closures has caused gridlock and delays, and now businesses are bearing the brunt.

A chunk of the work involves ripping up a roundabout at the Queens Drive/High Street intersection, which began on 2 March and will run until December, shutting the road.

Jinuka Paranavithana runs Lakdiv Supermarket right on the roundabout and said there was a slump the day the works began, with takings down 50 percent.

The cluster of shops in the area are now effectively tucked down a dead end.

Paranavithana was not confident the supermarket would last until the works were completed, so he was looking for leases elsewhere and could be forced out to Naenae.

A few doors down, Raquib Gondal had already shut his kebab shop for good.

He also reported a 50 percent drop in business, saying only the regulars would pop in, once a week at best.

“I feel really bad, because when I bought this business … I’ve taken all the money from my friends and family and we gathered the money … just to have a secure kind of income,” he said.

Gondal didn’t want to close, but he was getting into debt, he said.

“Opening it for longer, it will be … really a disaster for me.”

Another stretch of High Street is shut for four weeks, right outside City Green fruit and vege shop.

Owner Patrick Gao said he was only just hanging on, also reporting 50 percent less takings.

“I’m not making enough to pay my bills, my rent, my wages … tough going,” he said.

He may have to consider closing, but thinks he can stick around another month or two, with the community behind him.

Gao put out a plea on social media on Tuesday, asking for local support to help get him through.

On Wednesday morning, Rachael Trudgeon answered the call, and walked out of the store carrying a box full of produce.

She urged others to do the same, noting the deserted street.

“Just get out there, support our local shops that we have here, especially the small business owners, they are struggling so we want to help them out as much as we can.”

Across the road at cafe Espresso High, barista Rane Magno said the cafe was definitely quieter with a lack of parking.

“Nobody wants to drive in this corner of the Hutt any more,” she said.

“On the flip side, we’ve been able to see how our community’s really supported us, and our regulars have come in and made their efforts.”

Works essential for Hutt resilience

Many spoken to by RNZ believed the roadworks were necessary but it was too much all at once.

Lower Hutt Mayor Ken Laban said there was not much council could do.

“I can’t take people’s pain away, if I was … affected by the business, or I was stuck in traffic trying to get mum to the hospital for her appointment, equally I would be frustrated and angry and all of those kinds of things.

“We are just trying the best that we can to minimise the disruption, but this is a hugely inconvenient time for everybody.”

The work included a “once in a generation upgrade” of flood defences to protect the city, including the hospital and thousands of homes, said Laban.

Greater Wellington Regional Council transport committee chair Ros Connelly said disruption was certain no matter how the work was carried out, and the parties involved had chosen “the most efficient work programme from a cost perspective and also from a logistics perspective.”

“We absolutely understand that the roadworks are disruptive and we’re really sorry for the impact that this is having on businesses and commuters.

“But unfortunately, the works are essential to improving safety and flood resilience and reliability for everyone who uses the road.”

Once the work was done, the city would be better protected and connected, Connelly said.

The transport agency said it was continually considering whether the work could be sped up, and there would be night work in some places.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/lower-hutt-businesses-report-50-percent-drop-as-roadworks-roll-on-in-city-centre/

Source: Radio New Zealand

New Zealand is preparing for a prolonged conflict in the Middle East as attacks on the world’s largest natural gasfield in Pars create even more uncertainty at the pump.

Prime Minister Christopher Luxon has warned the fuel situation could get worse, before it gets better.

Brent Crude prices surged to US$109 a barrel on Thursday following the attacks, prompting motorists to fill up before prices got even higher.

Some people were unlucky, arriving at the pump after it had run dry.

At an NPD in Christchurch, many were nervous about how much a trip to the service station could soon cost.

“I’m currently studying, so it’s not really helpful. I live 40 minutes out of town and then commuting, and so it’s kind of like a bit of a sting in the butt trying to get through study, and it’s like, let’s add more stress,” one student said.

Another person had been checking prices daily: “I’ve been keeping an eye on it, looking at the apps and just checking each day whether or not today’s the day I should go fuel up.”

While others were more optimistic, and said they had just started to take the bus.

As of Thursday, New Zealand had 41.3 days worth of petrol, 47 days of diesel and 49 days of Jet Fuel.

Luxon assured New Zealanders officials were doing what they could to prepare for a fuel shortage.

“Like all New Zealanders, we hope that the conflict is ending quickly, but hope is not a plan, and so we are preparing for the worst case scenario where the conflict is prolonged,” Luxon said.

But energy analyst David Keat did not think New Zealand would run out of fuel for long periods of time, if at all.

Keat said the country should be ok.

“I imagine we might miss a few cargos, but in terms of the physical supply, I can’t see us running out for long periods, if at all.

“The price though is a different thing, because everybody is bidding for these cargos and it’s a seller’s market, so the price could go very high.”

The government would consider more details in the fuel escalation level plan next week.

It had four levels of concern, similar to the levels seen during Covid-19.

Rural Contractors New Zealand said its members were already being hit hard, with one larger contractor’s fuel bill rising by $5000 a day.

CEO Andrew Olsen said the agriculture industry needed to be a priority.

“Everyone’s important and naturally will say we are, but I think this is Covid 2.0 and agriculture received dispensations to continue to operate and it’s important, it’s our GDP, 20 percent of it.”

Olsen said the conflict and resulting fuel shortage had come at the worst time.

“It’s a very busy part of the year, we’ve got the maize harvest in full swing in the North Island and we’ve still got a lot of grass work occurring elsewhere, big machines, lots of fuel consumption.

“We’ve also got the viticulture harvest right now and we’ve also got the kiwifruit harvest,” he said

Business Canterbury CEO Leeann Watson believed there were takeaways from the Covid-19 response that should be considered.

“There’s quite a lot of learning’s here from Covid. You know, in some cases we were quite slow to do some planning and you know while we in particular as Business Canterbury at this stage we’re not being alarmist.

“We think it’s really important that businesses do start to do some planning and thinking about the options that they do have moving forward.”

Watson said it was crucial officials kept businesses informed.

The government’s next update on the fuel crisis will be on Monday.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/nz-prepares-for-uncertainty-at-the-pump-as-it-eyes-prolonged-middle-east-conflict/

Source: Radio New Zealand

Taxpayers who have debt for the 2023 and 2024 tax years are being given another option to avoid paying penalties to Inland Revenue.

As part of an amendment to the Taxation Bill, a pilot programme is being launched that will allow people with tax debt to settle it via tax pooling, if they meet eligibility criteria.

They will have until 1 October this year to enter an arrangement with a tax pooling provider, and then must settle the debt by 1 October 2027.

Tax pooling allows people to smooth out their tax payments and borrow from those who have overpaid their tax as required.

Tax Traders co-founder Nicola Taylor said the programme would be a big help to people with tax debt.

“There’s $1.2 billion in income tax debt across the two tax periods that this amendment is focused on. Tax debt is not about not wanting to comply. It’s actually usually about cash flow and timing.”

Inland Revenue has been chasing overdue tax hard in recent years.

If people had a tax bill they should approach a tax pooling provider with their debt, Taylor said.

“What they won’t be hit with is the late payment penalties and the use of money interest that they would have been hit with otherwise.

“Let’s say a taxpayer has a $10,000 unpaid income tax bill… by the legislation and using Tax Traders, you’ll be able to save about $800 of late payment penalties and use of money interest that otherwise you’d be hit with. And you know, $800 is not nothing.

“And the core tax gets paid … I think IRD’s been really sensitive and empathetic here and also very innovative. So I think we should, you know, I think there’s much to applaud IRD for taking this approach.”

The amendment also removes a tax issue that affects infrastructure investment.

Thin capitalisation rules stop multinational companies from allocating an excessive proportion of their debt to to New Zealand to affect the tax they have to pay.

But they can interfere in situations where there is a large amount of debt associated with an infrastructure project and some interest deductions can be denied even when the debt level is not normally considered excessive.

The Corporate Taxpayers Group told the government this was sometimes stopping foreign investment in New Zealand projects.

The new rules provide an exemption from the thin capitalisation rules for investments in qualifying infrastructure assets to the extent they are funded by limited-recourse third-party debt.

Deloitte partner Robyn Walker said it was likely that transport infrastructure, water, energy and telecommunications might be included in the projects that could opt into the rules.

Corporate Taxpayers Group chair John Payne said it was pleasing to see the rules progressing.

“We regularly see that tax rules can be an impediment to investment in important infrastructure, and these amendments help clear a barrier and that is why the Corporate Taxpayers Group has been involved in consultation on these rules.”

Revenue Minister SImon Watts said the change removed a barrier to make it easier to access capital and talent.

“New Zealand’s thin capitalisation rules limit the amount of tax-deductible debt that foreign investors can put into New Zealand investments. These rules prevent income being shifted offshore and protect our tax base.

“However, there is a risk that these rules can unduly disincentivise investment, particularly in capital-intensive infrastructure projects that are typically funded by large amounts of debt.

“The government is making changes to ensure that rules strike a balance between protecting the tax base while not discouraging investment in infrastructure.”

Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/how-people-and-businesses-with-tax-debt-can-avoid-ird-penalties/

Source: Radio New Zealand

Higher fuel costs mean higher transport costs, and that means higher prices across the board – and that’s a hard pill to swallow for Kiwis three years into a cost-of-living crisis.

Kiwis are already feeling the expensive ripple effects of the war in Iran – and economists are warning that the real impact is only just beginning.

What started as a distant geopolitical conflict has quickly landed squarely on our country’s economy, driving up fuel costs, squeezing household budgets, and threatening to slow growth.

If it continues, New Zealand could be staring down the barrel of another recession.

“So this sort of shock, if it gets worse, will definitely increase the risk of a recession here,” Kiwibank chief economist Jarrod Kerr tells The Detail.

“And we have only just gotten out of recession, so to fall back in would be horrendous for households and businesses.”

At the centre of the crisis is oil.

Global prices have surged past US$100 a barrel as fighting disrupts supply routes through the Strait of Hormuz – a chokepoint for about 20 percent of the world’s oil.

And for New Zealand, which imports almost all of its fuel, the effect has been immediate.

Petrol prices are already climbing rapidly, with forecasts that they could push toward $4 a litre – or higher – if the conflict escalates.

And when fuel costs rise, everything that relies on transport follows – from groceries to clothing to construction materials.

“The direct impact that we are seeing right now is the rise in petrol prices, and that affects, I would say, every household, particularly those on lower incomes who are forced to drive to work,” Kerr says.

“It is just another cost that they have to wear. And they have been in a cost-of-living crisis for the past three years.”

He warns that the conflict could push inflation higher while slowing growth, with Kiwi households already tightening spending, cutting discretionary purchases, and reducing travel and fuel use. Delaying big buys and trading down to cheaper brands are likely on the horizon.

“Yes, we are going to see a spike in inflation, but what I don’t agree with is the commentary that that automatically leads to a rate hike. I disagree.

“That is only going to put greater pressure on a household that is already under pressure. That would be the exact thing not to do … for me, the bigger risk is that households get hurt, the economy doesn’t recover, and the central bank may be needed to come in and provide support.”

He said economists entered the year “quite optimistic, because we had been banging the table for a long time, because the Reserve Bank had not cut interest rates to a level that was actually stimulatory and helpful for the recovery.

“They finally got there in November last year, took them far too long to get there, but they got there. We came into this year saying, ‘this is it, we are going to recover, the settings are about right, let’s go, c’mon let’s get some growth happening’, and mid-way through that sentence, we were cut off with missile strikes in Iran.

“It’s just another international shock that we have to deal with, and it’s just another headwind that all households and businesses have to face into.

“It’s hard for households to pay the food bill and power bill, which is up 35 percent on the year, petrol prices, which will be up a similar sort of amount, it is very, very difficult.

“We need to see policymakers stepping in to help, not hinder. So calls for rate hikes from the RBNZ [Reserve Bank] are tone deaf.”

On this episode, The Detail also speaks to Retail NZ chief executive Carolyn Young, who says retailers and consumers throughout the country are feeling the fallout of the war.

She says prices for goods and services will increase and “we will see that relatively soon”.

“We are seeing increases in insurance … increases in the fuel to get the ships to New Zealand,” she says. “Those additional costs are being passed on to the retailers and, at some point, those costs will be passed on to consumers.”

She says, right now, it’s “a really uncertain time for everyone”.

“Ultimately, uncertainty is not good for business. And I think that’s the thing we have to remember, and right now everyone is in a state of flux and uncertainty.

“And for any business owner, whether you are a retailer or other business, it’s going to have an impact on your sense of how you are going to move forward, and therefore it will have an impact on your profitability and ability to spend money in other areas.”

She fears some businesses might not survive the war.

“It will be difficult for people, and we will see some people who are perhaps a bit more pessimistic about what the future holds and may decide to close the store, and there will be others who will try to hang in there.”

She says recovery will depend on how long the conflict lasts.

Economists say a short conflict will see a sharp but temporary spike in prices, while a prolonged war will mean sustained inflation, weaker growth, and reduced spending.

And an escalation? Enter the risk of recession.

For now, the message from economists is simple: New Zealand may be far from the conflict, but it is not insulated from its consequences, because a war a world away involving oil doesn’t stay overseas for long.

Check out how to listen to and follow The Detail here.

You can also stay up-to-date by liking us on Facebook or following us on Twitter.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/20/iran-war-hits-kiwi-wallets-hard/