Hong Kong & Investment conversation with Anna Thomas, Summer Times (RNZ)

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I enjoyed joining Anna Thomas on RNZ’s Summer Times show this morning to chat about my recent visit to Hong Kong for the Asian Financial Forum (AFF). Our discussion covered:

📈Cautious optimism in the financial sector: Despite the uncertainty looming over markets caused by the Trump administration, there’s a prevailing sense of confidence in global markets.

🌏Markets to watch: Southeast Asia and the Middle East stood out at the Forum as hotspots for growth and investment opportunities.

🤖AI’s impact on finance: Artificial intelligence is transforming the financial sector, from predicting trends and outperforming humans, to making financial services more accessible to everyday investors.

🛍️Changing shopping trends: Many Hong Kong locals now head to mainland China for shopping, dining and even dental work – thanks to the convenience of high-speed trains and the allure of lower prices and wider options across the border.

🦢The (non-work) highlight: Of course: food! Including a comparison of budget vs. high-end roast goose. (Spoiler: the budget spot came out on top!)

Dynamic Business: Chair of the Year - Port of Auckland’s Jan Dawson wins Deloitte Top 200 Award (NZ Herald)

Dynamic Business: Chair of the Year – Port of Auckland’s Jan Dawson wins Deloitte Top 200 Award (NZ Herald)

Jan Dawson is the 2024 Chairperson of the Year at the Deloitte Top 200 awards.

With extensive experience governing large organisations, this award celebrates the significant transformation of the Port of Auckland that has enhanced safety and delivered strong financial results.

Dawson has been the chair of Port of Auckland since September 2021, and since then, has led the port on a transformative journey that has revitalised its operations, improved stakeholder trust, and set the foundation for long-term growth.

Deloitte Top 200 judge Hinerangi Raumati says Dawson “brings a gravitas that has been crucial in rebuilding trust during challenging times”.

“Under her leadership, the port has made significant strides in overcoming complex issues – from securing a new CEO to addressing an automation project that had become derailed, fostering stronger collaboration with unions, and aligning more closely with Auckland City Council, the port’s primary stakeholder.”

As well as the port, Dawson is a director of Serko and ACC.

She has previously held roles as chair of Westpac New Zealand, deputy chair of Air New Zealand and director of AIG Insurance New Zealand, Beca, Goodman Fielder and Meridian Energy. Before this, she held the chair and chief executive position at KPMG New Zealand, following a career in audit, consulting and accounting services in the United Kingdom, Canada and New Zealand.

The judges note that when Dawson took over as chair of the Port of Auckland, it was grappling with significant challenges including operational disruptions and strained relations with its shareholder, Auckland Council.

She recalls: “The port had been through a tough time with Covid and supply chain disruptions, and it became very clear that we needed to get back to basics.”

The appointment of a new chief executive was a critical first step. Dawson and the board appointed Roger Gray to steer the port towards a sustainable future.

“When Roger came on board, we agreed a nine-year roadmap, focused on delivering cargo to customers in a timely, efficient manner across all businesses of the port,” Dawson says, crediting his expertise and leadership as pivotal in aligning the port’s goals with stakeholder expectations and rebuilding respect as a company.

Her approach as chair has been described by the judges as “calm and consensus-driven, ensuring that every board member has a voice in the strategic direction of the Port of Auckland” – an assessment Dawson embraces.

“If you ever have to take a vote at a board meeting, you’ve failed,” she says, adding that with a good board, everyone has something to add, and the role of chair is about ensuring everyone’s voice is heard and finding solutions that benefit the company. This approach has been instrumental in building trust not only within the board but also among the port’s diverse stakeholders.

Under Dawson’s leadership, the port has built a strong relationship with Auckland Council, the port’s sole shareholder. By maintaining open communication and involving unions in decision-making processes, particularly around safety and productivity, she has fostered a collaborative atmosphere.

“Transparency and communication have been crucial,” she explains. This openness extends to the media as well, with Dawson implementing a proactive approach to media relations to ensure clarity and honesty about the port’s operations.

Dawson says her highlight this year has been overseeing the port’s delivery of key financial and operational goals ahead of schedule.

“We have got to where we thought we would be in three years, in two,” she says.

In the past year, the port increased its dividend to $40 million, a testament to its renewed focus on financial performance and shareholder value.

But Dawson points out that this achievement was not only financial. “We didn’t just focus on financial performance. We are focused on people, safety, and what customers value and want.

“And we did that at a time when there was a lot of distraction for the executive team and the board with the prospect of the Long-Term Plan requiring us to look at a long-term operating lease of the port, which had the potential to distract management away from what we were doing in a transformational sense and from what they needed to do.”

Looking ahead, the port is planning for its next phase of development to ready it for the future.

It aims to enhance Bledisloe North Wharf with upgraded infrastructure that will help the port meet Auckland’s freight needs, support the cruise industry, while also providing more access to the waterfront for Aucklanders and reducing ferry disruptions. Dawson is excited about these initiatives, which she sees as essential to securing the port’s place as a vital asset for Auckland and New Zealand.

“The port will be here for the next 35 years minimum,” she says confidently, looking forward to a new era of growth and innovation.

Finalist: Dame Rosanne Meo, Briscoe Group
Dame Rosanne Meo describes her two-decade tenure as chair of Briscoe Group as “an extraordinary journey” filled with both challenges and achievements.

Throughout periods of market disruption – from the financial crisis to the rise of e-commerce and the pandemic – her steady leadership has kept Briscoe Group on course, reinforcing its resilience.

In recognising her as a finalist for Chairperson of the Year, the judges applaud Meo for her strategic vision and commitment to Briscoe Group’s long-term success.

“Despite the ongoing challenging retail environment, Briscoe Group delivered record sales numbers in its most recent half-year result and an underlying trading profit close to last year,” says Raumati.

“This is an impressive result and Meo’s leadership has reinforced the company’s strong position in New Zealand’s homeware and sporting goods market.”

Meo attributes much of her success to a strong partnership with CEO Rod Duke, whose operational expertise she views as essential to Briscoe Group’s achievements. However, she emphasises the importance of directors maintaining “a very strong hand on the tiller” while respecting management’s responsibility to run the business.

As she explains through a “grandstand” analogy: “Directors must not go on to the field of play. At times, they’ll come down to the sidelines to cheer or shout a bit of advice, but the further up the grandstand you sit, the more you see of the field, and of adjacent fields.”

From this vantage point, she says, “you can have an objectivity that is very hard for executives when you’re living in the company on a day-by-day basis”.

As one of the first professional woman directors in New Zealand, the first woman to chair a state-owned enterprise in New Zealand and the first woman to lead an NZSX-listed company, Meo’s impact on the nation’s corporate landscape is profound. The judges commend her for having “shaped a legacy of governance grounded in inclusivity, respect, and steadfast independence”.

Meo’s extensive board experience has included roles as chair of TVNZ, the Forestry Corporation, AMP NZ, and Baycorp NZ. She currently serves as patron of the Auckland Philharmonia and as chair of AMP NZ’s staff superannuation schemes. Recently, she retired from her roles with the Kelliher Trust and the Middlemore Health Foundation.

“I’ve never gone after big names,” she says. “I’ve sought out diverse sectors where I could make a meaningful contribution.”

An advocate for continuous improvement, Meo stresses the importance of directors scrutinising themselves to avoid becoming “too isolated in a boardroom”. She believes in openly sharing these evaluations with fellow directors and executives to ensure that everyone is “independent of thought” and responsive to the current conditions.

“Every board should be doing this every year,” she says. “But we should all be doing it whether we’re a director or not. Are we doing our best? That is very important.”

Meo has announced that she will step down as chair of Briscoe Group in two years, concluding her influential chapter with the company. While she plans to spend more time with her family, including her two daughters and five grandsons, she says she will remain engaged in causes and sectors that spark her passion.

Finalist: George Adams, Synlait
George Adams’ leadership has been instrumental in guiding Synlait through a period of financial instability, culminating in a $217.8m recapitalisation.

The Deloitte Top 200 judges recognise Adams as a finalist for Chairperson of the Year for his role in steering the specialty milk producer through crisis and commend him for stabilising Synlait’s future.

Adams was appointed as an independent director of Synlait in March 2024 and became chair in May 2024. Top 200 judge Hinerangi Raumati Tu-ua says his tenure “stands as a testament to resilience, strategic foresight, and a willingness to step into challenging situations when others might hesitate”.

Adams explains that he “thought long and hard about joining Synlait” but ultimately decided its importance to New Zealand made the effort worthwhile.

He believed he could navigate Synlait’s challenges while addressing concerns raised by the Mainzeal case, which left many directors wary of high-risk roles.

“Mainzeal caused a large amount of concern in the director community – and rightly so,” he says.

“I felt there had to be a way to show that directors can guide companies through difficult situations without putting their own assets at risk.”

Adams says that “because something is hard is not a reason to not do it”, candidly describing Synlait’s situation as “frankly bloody hard, but the outcome was worth it”.

Synlait’s troubles reached a breaking point earlier this year, as its debt burden became unsustainable.

“We had to negotiate with the banks, who were running out of patience,” he says. “We had to completely refinance the business to the tune of $450 million, settle years-long disputes with our largest customer, and at the same time ask them for money. Then we had to figure out the best route to raising capital by being fair to everyone while being certain we could raise the amount of capital required.”

At the same time, Synlait lost the confidence of its farmer suppliers, with many issuing cease notices to signal their intent to stop milk deliveries. “A dairy company without a milk supply is just a big collection of worthless stainless steel,” says Adams.

He reflects on this process, noting there were several points where the balance of probability was that a solution wouldn’t be found.

With time ticking, the board had to make swift, decisive moves.

“In this environment, you can’t afford to debate things endlessly, you have to resolve a position and move forward,” he says, describing his role as ensuring necessary conversations and decisions happened within strict deadlines.

The board engaged legal representatives and an investment banker, and constantly evaluated its position, rigorously testing assumptions on directors’ duties and going concern. “Really good advice was absolutely invaluable – it was a safe haven,” says Adams, urging other directors facing crises to prioritise quality advice.

The recapitalisation involved substantial investment from Synlait’s two largest shareholders, Bright Dairy and The a2 Milk Company, requiring intricate negotiations with banks and strategic alignment among stakeholders.

Looking ahead, Adams sees the recapitalisation as “just the end of the beginning” for Synlait. His attention now shifts to business turnaround, with a focus on customers, revenue and cost. He says performance will be critical to give farmer suppliers sufficient confidence to withdraw their cease notices.

Beyond Synlait, Adams is chair of Bremworth, New Zealand Frost Fans, Netlogix New Zealand, Apollo Foods, Insightful. Mobi and the Business Leaders’ Health and Safety Forum. He is a director of ArborGen.

The Chairperson of the Year award is sponsored by Forsyth Barr.

Dynamic Business: Spark NZ wins Deloitte Top 200 Sustainability Leadership Award (NZ Herald)

Dynamic Business: Spark NZ wins Deloitte Top 200 Sustainability Leadership Award (NZ Herald)

Spark NZ’s commitment to sustainability has solidified its role as a leader in environmental and social responsibility within the telecommunications sector.

Deloitte Top 200 sustainability judge Katie Beith praises Spark’s journey, saying it has demonstrated exemplary sustainability credentials. “Since 2020, Spark has been implementing a comprehensive three-pillar strategy, fully integrated into its day-to-day operations and across the entire footprint of the company.”

This approach has seen Spark awarded the 2024 Deloitte Top 200 Sustainability Leadership award, recognising its exemplary governance, accountability and long-term strategic approach to integrating sustainability across its operations.

Leela Ashford, Spark’s corporate relations and sustainability director, says: “We think of embedding sustainability in two ways — through a robust governance structure and by operationalising our strategy into the business.”

This includes oversight through its board, leadership squad and several steering committees that focus on material topics. “We then have three cross-functional squads that bring together a diverse group of people, perspectives, and skillsets from across the business to drive our work across emissions reduction, supply chain and human rights, and governance.”

Electricity accounts for more than 80% of Spark’s Scope 1 and Scope 2 emissions, and it has recognised that its biggest opportunity to achieve its science-based emissions reduction target is to decouple business growth from emissions growth by investing in renewables.

In May, Spark entered into a 10-year power purchase agreement with Genesis Energy. This will see it take 100% of the energy generated by Genesis’ first solar farm in Lauriston, Canterbury, from January 2025 — accounting for around 60% of Spark’s electricity needs. The remaining 40% will continue to be sourced from Genesis via the grid as it is today.

“This will continue to be Spark’s focus in the years ahead, using its electricity procurement to underpin new renewable developments, thus enabling it to meet its target in a way that also supports New Zealand’s broader decarbonisation,” says Ashford.

Spark is also critically aware that New Zealand has an unacceptably wide digital divide, with cost, accessibility, lack of skills or a lack of trust being the primary barriers for those who are excluded.

Both Spark and the Spark Foundation are focused on digital equity, investing in increasing Māori and Pasifika participation in the technology sector, continuing to support low-income households to participate in the digital world, and increasing the accessibility of its products and services.

Through Spark Foundation’s not-for-profit broadband service, Skinny Jump, it supports over 32,000 homes across New Zealand.

Ashford says: “Digital equity is critical to a just transition and at the heart of our sustainability approach.”

This focus on digital inclusion extends to robust cybersecurity, privacy and data ethics practices.

The judges were also impressed with the extent of Spark’s sustainability impact beyond its own internal goals.

“Spark goes beyond its own sustainability goals, actively driving New Zealand’s progress on the agenda. This is reflected in the different leadership positions it has taken to enable access to technology and showcase how it can be used to drive sustainable practices,” says Beith.

Spark’s approach reflects a commitment to addressing the significant challenges that climate change will bring to New Zealand. It recognises the need for a system-wide change across the economy to mitigate these impacts and adapt to a warmer planet.

At the heart of its strategy is the understanding that New Zealand cannot achieve the scale of this change without addressing its long-term productivity challenges and that technology will be essential in enabling the transformation.

This is exemplified through Spark’s thought leadership, public policy approaches and its role as a founding member of the Climate Leaders coalition — a chief executive-led community of almost 100 organisations driving the response to climate change through collective, transparent and meaningful action. Spark chief executive Jolie Hodson has been the convenor of the coalition for the past three years.

Ashford says Spark knows technology has a critical role to play in helping New Zealand transition to a high-productivity, low-carbon future, and its approach to sustainability aims to maximise opportunities as well as manage risks.

“We see it as our responsibility to advocate for the integration of technology into our country’s climate change responses and to invest in the technologies and digital infrastructure that will underpin productivity and sustainability improvements across the economy and within New Zealand businesses.”

The Sustainability Leadership Award is sponsored by Snowflake.

Finalist: Oceania Healthcare
Oceania Healthcare, a leader in New Zealand’s retirement living and aged care sector, has been recognised as a finalist for the Deloitte Top 200 Sustainability Leadership award for its dedication to building sustainable, community-centred villages that put environmental responsibility and resident wellbeing at the forefront.

“By fostering environmental stewardship and social connection, Oceania is leading responsibly, supporting its long-term goals, and making a positive impact across New Zealand’s communities,” says Beith.

Since 2019, Oceania has measured its Scope 1 and 2 emissions, along with certain Scope 3 categories. In FY2023, it completed a detailed assessment of all material Scope 3 emissions sources, using FY2022 as a baseline.

This assessment identified that emissions from capital goods — such as upfront carbon from its developments and emissions associated with our refurbishments — are its most material emissions source. To address these, Oceania has set a short-term science-based target, verified by the Science Based Target initiative (SBTi) in FY2024.

Head of sustainability at Oceania, Stephanie Spicer, says sustainability is a key consideration in Oceania’s decisions around new developments and refurbishments.

“We choose locations where we can add value to the local community, and climate resilience is a key part of our due diligence process.

“Our designs incorporate energy-efficient systems and improve indoor environmental quality, and we have construction waste diversion targets in place during the build process.”

Oceania’s focus on sustainability is embedded in its design and construction practices, with all new developments designed to meet the New Zealand Green Building Council’s certification, such as Homestar, ensuring warmer, healthier living environments for residents and improved workspaces for employees.

The judges recognise Oceania’s Sustainability Linked Loan as being a catalyst for meaningful change. It includes ambitious environmental and social key performance indicators (KPIs) and has driven Oceania to implement emissions reduction projects, divert construction waste away from landfills and enhance care resident wellbeing.

“As a people-centric organisation, the care resident wellbeing KPI was crucial to align with our commitment of providing exceptional care and improving the quality of life for our residents,” says Spicer.

Governance plays a critical role in Oceania’s sustainability initiatives.

The company has established a governance framework that ensures both internal and external accountability.

“We have a board sustainability committee and a management sustainability steering group chaired by our CFO,” says Spicer. These oversee Oceania’s sustainability initiatives, set targets, and ensure transparency in its reporting, helping to integrate sustainability into its strategic decisions and daily operations.

To embed a culture of sustainability, Oceania provides training and workshops focused on sustainability topics and has introduced an annual employee sustainability award.

To drive accountability, the company has linked sustainability performance metrics to senior management remuneration.

“By fostering a culture of sustainability, we ensure that our people are not only aware of our commitments but are also active participants in achieving them,” says Spicer.

Finalist: Precinct Properties
Precinct Properties, a leader in New Zealand’s real estate sector, is setting the benchmark for sustainable urban development.

An owner, developer and manager of real estate in New Zealand’s largest city centres, Precinct is a finalist for the Deloitte Top 200 Sustainability Leadership award and is noted for its strong commitment to environmental, social, and governance (ESG) principles.

“Precinct is dedicated to redefining urban development with a focus on sustainable, community-centric growth that enhances urban living,” Beith says.

“Its robust $3.3 billion portfolio sets a strong example of how cities can grow vibrantly with sustainability, social value and economic growth at their core.”

As the only New Zealand company to sign the World Green Building Council’s net zero carbon buildings commitment, Precinct is leading the charge in addressing climate change in the built environment.

“This commitment underscores our dedication to addressing and managing our built environment impacts on climate change,” says Lisa Hinde, head of sustainability at Precinct.

“Through this, Precinct can leverage the collective expertise of an industry that has contributed and built this framework and position ourselves to deliver meaningful progress toward net zero.”

Precinct’s sustainability programme is deeply embedded throughout the organisation, underpinned by a robust governance framework.

A dedicated ESG committee at board level, along with four sub-committees focused on specific pillars of the ESG strategy, ensures sustainability is integrated across all business levels.

“Our sustainability programme is supported by transparent targets and objectives, both internally and externally,” says Hinde. “With operational control over our development pipeline and investment portfolio, we maintain strong influence in upholding these commitments across our portfolio and supply chain.”

A key focus of Precinct’s sustainability strategy is reducing Scope 3 emissions, particularly upfront embodied carbon — emissions generated before a building becomes operational, mainly through the production, transportation and construction of materials.

“Embodied carbon is a substantial contributor to our overall emissions and a challenging aspect for the real estate sector to manage,” says Hinde. “To address this, we prioritise adaptive reuse projects, retaining as much of a building’s original structure as possible to minimise demolition and reconstruction.”

Precinct is also taking steps to address emissions from carbon-intensive materials like steel and concrete.

“Our current embodied carbon research study is examining global benchmarks and comparing them to local suppliers, aiming to assess their capacity to meet or exceed these standards,” Hinde says.

These efforts not only drive improvement but also incentivise the use of local suppliers, creating industry-wide benefits.

Precinct’s sustainability efforts extend beyond its own operations, actively engaging clients and tenants to create shared value.

“We recognise the many benefits of progressing toward mutual outcomes together — not only for the environment but for building lasting partnerships,” says Hinde. This approach includes initiatives such as quarterly occupier reporting and the promotion of social values such as diversity, inclusion and community engagement.

One standout initiative is Precinct’s joint venture with Ngāti Whātua Ōrākei, a partnership that embeds cultural representation and social value into developments.

This includes the Te Tōangaroa project with capital partner PAG and the upcoming Downtown Carpark redevelopment, which will involve cultural representation, scholarships and social procurement initiatives.

“Across our portfolio, we have the potential to influence other businesses,” says Hinde. “We’re excited about the opportunity to create real change within the procurement space.”

Dynamic Business: Fonterra, Zuru Group's Mowbrays triumph at the Deloitte Top 200 Awards (NZ Herald)

Dynamic Business: Fonterra, Zuru Group’s Mowbrays triumph at the Deloitte Top 200 Awards (NZ Herald)

Fonterra was a standout winner at the Deloitte Top 200 Awards 2024, claiming three prestigious awards. Port of Auckland also celebrated a stellar night with two wins at one of the most anticipated events in New Zealand’s corporate calendar, and Zuru Group’s Mowbray siblings claimed the visionary leadership award.

Held at Auckland’s Viaduct Events Centre, the black-tie dinner brought together nearly 900 business leaders to celebrate resilience, innovation, and strategic leadership driving New Zealand’s economy forward during an era of global challenges.

Dairy giant Fonterra was named Company of the Year, a testament to its transformative journey over the past year.

The cooperative has implemented significant changes — reducing debt, exiting non-core businesses and concentrating on high-quality ingredients and food service products.

This strategic shift, along with disciplined cost management and sustainability initiatives, has solidified shareholder confidence and driven remarkable financial performance.

In September this year, Fonterra posted a net profit of $1.1 billion for the 2024 financial year, following a record $1.6b profit the previous year.

The panel of high-profile judges, convened by NZME’s Fran O’Sullivan, praised Fonterra’s ability to balance transformation with financial discipline, noting:

“Profits have improved markedly. Strong cash flow has driven down debt and supported payment this year of a 50c special dividend to its shareholders — helping to drive a 71% increase in the Fonterra shareholder fund unit price.

“By concentrating resources on areas with the highest potential, Fonterra is well-positioned for sustainable earnings growth, despite tough international markets.

For his pivotal role in Fonterra’s turnaround, chief executive Miles Hurrell was named Chief Executive of the Year.

Hurrell’s leadership has delivered record profits, improved milk payouts to farmers, strengthened the cooperative’s balance sheet, and improved employee engagement.

“Miles has focused on Fonterra’s core operations of processing and selling New Zealand milk efficiently while divesting less critical parts of the business and considering the sale of its consumer division,” the judges said.

“With a collaborative approach, Miles has built an aligned and forward-thinking team, making him a stand-out chief executive.”

The Visionary Leader award went to Zuru Group siblings, Mat, Anna and Nick Mowbray, in recognition of their courage, creativity and innovation that has built a multinational juggernaut.

Established in 2003, Zuru Group now generates $3 billion in annual revenue, employs 5000 people across more than 30 locations globally and spans toys, fast-moving consumer goods (FMCG), and tech building.

The Top 200 judges commended the siblings’ bold decision to leave New Zealand in their 20s to establish themselves in China.

“They have sustained their entrepreneurial spirit, which has seen the company expand into new areas utilising China’s scale and technological prowess.

“Such ambition and success take courage, innovation and a lot of hard work, and in the opinion of the judges best exemplifies the visionary leadership of this award.”

The exceptional leadership of Jan Dawson, chairwoman of Port of Auckland, has earned her the title of Chairperson of the Year.

Since assuming the role in September 2021, Dawson has helped revitalise the port’s operations, improved stakeholder trust, and set the foundation for long-term growth.

The port has built a strong relationship with Auckland Council, the port’s sole shareholder, and this year increased its dividend to $40 million, reflecting its financial turnaround and focus on shareholder value.

“Under her leadership, the port has made significant strides in overcoming complex issues,” the judges said. “From securing a new CEO to addressing an automation project that had become derailed, fostering stronger collaboration with unions, and aligning more closely with Auckland City Council, the Port’s primary stakeholder.”

Meridian’s chief financial officer Mike Roan earned the title of Chief Financial Officer of the Year for his critical role in driving operational growth. Under his leadership, the partially state-owned energy company achieved a 16% increase in earnings before interest, tax, depreciation, amortisation and financial instruments (Ebitdaf), reaching $905m in the past year.

“Mike Roan has been recognised by his board and the market as one of New Zealand’s leading CFOs over multiple years,” the judges said.

“He is an absolutely integral member in chief executive Neal Barclay’s team that has posted market-leading returns.”

Global dairy marketer The A2 Milk Company received the Most Improved Performance award for its operational turnaround and resilient business model.

Amid challenging regulatory environments in key markets such as China and the United States, a2 Milk negotiated new strategic partnerships, strengthened its leadership team, and surprised the market with upgraded earnings guidance. The company will pay its first-ever dividend in February.

“While the journey is not complete, there are good signs that a2 Milk is back on track,” the judges said.

Infratil’s strategic foresight and disciplined approach to long-term infrastructure investments have driven remarkable growth, earning it the Best Growth Strategy award.

With early bets on data centres and renewable energy, the infrastructure investment firm’s strategy reflects bold decision-making and exceptional execution which have been a hallmark of its success. Shareholder returns have been exceptional at a compound annual rate of 23% a year over the past five years.

“These accomplishments reinforce Infratil’s strategy in infrastructure investment, with a focus on driving innovation and sustainable growth around what the company describes as ‘the ideas that matter’,” the judges said.

Continuing Fonterra’s run of success last night, Richard Allen was named Young Executive of the Year in recognition of his exceptional leadership and strategic vision.

Over his eight years at Fonterra, Allen has improved capital efficiency, developed strategic customer relationships, and identified the need to shift from siloed and reactionary initiatives.

Now President Global Market Ingredients, he is focused on expanding Fonterra’s markets and diversifying income streams.

“His strategic restructuring of the Atlantic region and innovative approaches not only strengthened Fonterra’s position in international markets but also contributed significantly to New Zealand’s export legacy,” the judges said.

Port of Auckland was named winner of the Diversity & Inclusion Leadership Award for its transformative approach to addressing deep-seated organisational challenges through a bold focus on diversity, equity, and inclusion.

“By prioritising a people-centred approach, they created a high-engagement, high-performance culture that recognised and served the unique needs of their diverse workforce and stakeholders,” the judges said.

The reset has achieved remarkable improvements in safety, employee engagement, union relationships, and overall performance, demonstrating the power of diversity and inclusion to drive sustainable change and deliver exceptional outcomes.

Spark NZ took home the Sustainability Leadership award for its long-term commitment to embedding sustainability across its operations.

The judges recognise Spark for its governance, accountability, and measurable progress in decarbonisation and digital inclusivity.

“Since 2020, Spark has been implementing a comprehensive three-pillar strategy, fully integrated into its day-to-day operations and across the entire footprint of the company.”

The Deloitte Top 200 awards include a special Judges’ Award, designed to recognise individuals or organisations whose performance has made a significant impact on the business community.

This year’s recipient is Dr Oliver Hartwich, executive director of The New Zealand Initiative, honoured for his outstanding contributions to public policy and thought leadership in New Zealand.

Hartwich has been instrumental in shaping public discourse, not only by identifying critical challenges facing the country but also by proposing practical solutions.

Under his leadership, The New Zealand Initiative has delivered rigorous, independent research that has influenced national debates and informed key policy decisions.

“We recognise his sterling contribution to public policy thinking and his willingness to advocate publicly through significant media engagement,” the judges said.

They highlighted that in recent years, The Initiative’s policy recommendations have played a pivotal role in several critical areas, with a particular mention of its work in improving New Zealand’s education system.

The Deloitte Top 200 Index consists of New Zealand’s largest entities ranked by revenue. These include publicly listed companies, large unlisted entities, New Zealand subsidiaries and branches of overseas companies and the commercial operations of Māori entities; also producer boards, co-operatives, local authority trading enterprises and state-owned enterprises.

An overview of the Top 200 Index, along with New Zealand’s Top 30 finance companies, is featured at the end of this report. This includes insights into revenue, profitability, efficiency and other key metrics. These numbers offer an insight into how the biggest companies in New Zealand operate and are accompanied by commentary and analysis from the Herald’s team of business reporters.

The high-level view of the Top 200 this year shows total revenues increasing by 4.1%, a modest rise compared to the 12.4% growth seen in 2023. However, underlying earnings (Ebitda) fell by 8.1%, and total profits after tax declined significantly, down 57.2% year-on-year.

In the financial sector, the Top 30 finance companies showed a marginal decline in year-on-year assets of 0.9%, while cumulative profits rose slightly by 0.8%.

ANZ remains the largest bank by a considerable margin, with $194b in assets — $61b ahead of second-placed Westpac. ANZ also outpaces all other banks in terms of profit and equity.

 

Dynamic Business: Deloitte Top 200 Index 2024: Mixed results for New Zealand's largest firms (NZ Herald)

Dynamic Business: Deloitte Top 200 Index 2024: Mixed results for New Zealand’s largest firms (NZ Herald)

The 2024 Deloitte Top 200 Index reveals a mixed performance across key metrics, highlighting challenges as well as continued resilience among New Zealand’s largest businesses.

Total revenues for Top 200 companies increased by 4.1%, rising from $235,849 million in 2023 to $245,432m in 2024. This represents a slower pace of growth compared to the 12.4% increase in 2023.

Underlying earnings (ebitda) decreased by 8.1% year-on-year, from $32,690m in 2023 to $30,058m in 2024. This contrasts with the 8.1% increase observed in 2023.

The ebitda margin, an assessment of operating profitability as a percentage of total revenue (total ebitda/total revenue), also declined, slipping from 13.9% in 2023 to 12.2% in 2024, reflecting a 1.7% decrease.

Total profits after tax saw a sharp decline, falling by 57.2% from $11,733m in 2023 to $5,026m in 2024. This is a marked change from the 4.0% increase recorded in 2023. The net profit margin (profit after tax/total revenue) also decreased, from 5.0% in 2023 to 2.0% in 2024.

Total assets increased modestly by 3.8%, from $318,806m in 2023 to $331,076m in 2024, down from a 4.9% increase the previous year.

The No 1 spot in the Top 200 Index has been held by Fonterra since its formation in the early 1990s. This stronghold continues, however, its revenue fell by 7.2%, from $24,580m in 2023 to $22,822m in 2024. This decrease is mainly because of a softening demand in the ingredients channel and a 1% decline in sales volumes from continuing operations.

The 200th-ranked entity in 2024 is Christchurch Airport, with revenue of $233m. This is a 5.0% increase compared to 2023’s 200th-ranked company, Scott Technology, which reported $222m in revenue.

Ebos Group, at No 2, maintained its position with a 6.6% revenue increase, rising from $13,370m in 2023 to $14,254m in 2024. This was driven by organic growth and acquisitions that contributed to growth in its healthcare and animal care businesses. The revenue gap between Fonterra and Ebos decreased by 23.6%, compared to a 2.6% decrease in 2023.

A significant shift occurred as Foodstuffs North Island climbed to third place in the Top 200 (from 10th in 2023), with revenue increasing by 9.1 to $9,235m. Revenue figures for 2023 and 2024 have been grossed up in respect of charge through sales whereby Foodstuffs North Island is now considered to be a principal rather than an agent. Revenue for 2023 has increased from the previous reported figure of $4,299m to $8,462m as a result of this restatement.

The top 10 in the Index has seen some movement in 2024, with Meridian Energy re-entering the top 10 in 10th place (2023: 17th). This pushed Mainfreight out of the top 10 to 11th place (2023: 8th). Woolworths NZ has remained in fourth place, and BP NZ has remained in ninth place.

Fletcher Building has moved down to fifth place (2023: 3rd) and Fulton Hogan has moved down to seventh place (2023: 5th).

Air New Zealand has dropped to eighth place (2023: 6th) and Z Energy moved into sixth place (2023: 7th).

Top profits
The top profit after tax for 2024 was $1168m, reported by Fonterra (ranked first in the Top 200 Index), retaining its position in the top profit rankings from last year.

This figure represents a 5.9% decrease from Fonterra’s profit after tax of $1241m in 2023.

Last year’s second-highest profit was Spark (13th in the Top 200 Index), which reported a profit after tax of $1135m, including a $583m gain associated with Spark’s sale of Connexa. In 2024, Spark’s profit after tax fell to $316m, dropping its ranking to seventh place.

The average profit after tax across all 200 companies decreased from $53m in FY23 to $25.1m in FY24, a 53% decline. This trend reflects challenging economic conditions and broader economic performance.

Infratil (20th) has risen to second place for profit in 2024, up from fourth in 2023. The infrastructure investment firm has seen its profit after tax increase by 28.2%, from $562m in 2023 to $846m in 2024. Infratil acquired full ownership of One NZ, with the result reflecting 10 months’ earnings contribution from One NZ under full ownership.

Retirement village operator, Summerset (174th), is a new entrant to the Top 200 in 2024 and has secured third place with a profit after tax of $440m. This result includes a $442m favourable fair value movement in investment property.

Lotto (31st) has moved up to fourth place in 2024, from eighth in 2023. Its profit after tax increased by 12.8%, from $385m in 2023 to $434m in 2024.

Meridian Energy (10th) has made a significant leap in the rankings, moving from 36th place in 2023 to fifth place in 2024. Its profit after tax rose by 352%, from $95m in 2023 to $429m in 2024.

Spark (13th), One NZ (24th), and 2degrees (37th) have moved out of the top five profits for 2024 but remain in the rankings at seventh, 67th, and 156th place, respectively.

Biggest losses
The biggest loss for 2024 was reported by Woolworths NZ (ranked fourth in the Top 200 Index), with a loss of $1673m. In 2023, Woolworths had the 42nd ranked profit after tax, reporting a profit of $76m. The loss is attributed to lower sales and a $1.6b goodwill impairment loss.

KiwiRail (49th) holds the second biggest loss for 2024, with a loss of $647m. In 2023, KiwiRail had the largest loss of $771m. KiwiRail also had the third biggest loss in 2022 and second biggest loss in 2020.

Goodman Property (193rd) is a new entrant to the Top 200 in 2024, holding the third biggest loss in 2024 of $565m. This compares to a loss of $135m in 2023. Its loss is primarily attributed to fair value losses on the revaluation of investment property.

Wine, spirits and champagne business, Pernod Ricard NZ (121st), and dairy producer Synlait Milk (36th) respectively hold the fourth and fifth biggest losses in 2024.

Most improved profit
Datacom (ranked 34th in the Top 200 Index) recorded the most improved profit, with an 1800% increase, moving from a $2m loss in 2023 to a $34m profit in 2024.

Ngāi Tahu Ltd (138th) achieved the second most improved profit, with an increase of 843%, shifting from a $5.8m loss in 2023 to a $43m profit in 2024.

Mainland Poultry (183rd) holds third place, with a profit increase of 748%. In the current year, Mainland Poultry recorded a profit of $23.5m, compared to a profit of $2.8m in 2023.

Most improved revenue
Costco NZ (ranked 141st in the Top 200 Index) reported the most improved revenue, increasing revenue to $341m in 2024 compared to $21m in 2023, because the current year represents the first full year of trading. This uplift has meant Costco NZ is a new entrant to the Deloitte Top 200 Index in 2024.

Waste Management (83rd), also a new entrant, has the second most improved revenue, with an increase of 325%, from $152m in 2023 to $645m in 2024.

Infratil (20th) achieved the third most improved revenue, with an increase from $1192m in 2023 to $2995m in 2024, because of acquiring full ownership of One NZ, with the result reflecting 10 months of One NZ being consolidated under full ownership.

Gull (46th) holds the fourth most improved revenue, increasing by 117%, from $495m in 2023 to $1076m in 2024. The 2023 figure included revenues for around six months post the change in ownership from Ampol to Allegro.

This is the primary driver of the increased revenue in 2024, as well as increasing fuel prices.

Amazon Web Services (122nd) held the most improved revenue in 2023. Its revenue held largely consistent year-on-year, with a 3.4% increase, rising from $372m in 2023 to $385m in 2024.

Infratil (20th), Emirates Airlines (88th), Auckland Airport (62nd) and Tourism Holdings (60th) are the only companies to be included on this index in both 2023 and 2024.

Airways, Graincorp Commodity, Gull, McConnell Dowell, Mercury, Meridian Energy and Xero are included in both the most improved profit and most improved revenue index in 2024.

Return on assets (ROA) provides an indication of how efficiently a company manages its assets in order to generate earnings. It is calculated by measuring profit against the total assets reported.

Emirates Airlines NZ (ranked 88th in the Top 200 Index) maintains its top position for ROA, achieving 595.4%. In 2023 the airline had a ROA of 325.1%.

Singapore Airlines (123rd) re-entered the Top 200 Index in 2024, and holds the second spot with a ROA of 312.9%.

Lotto (31st) ranked third for ROA, decreasing from second place in 2023, with a ROA of 146.5%.

Pushpay (129th) entered the ROA rankings in fourth place, achieving 48.7% in 2024, a significant improvement from 8.9% in 2023. This is driven by an increase in net profit after tax from $35m in 2023 to $283m in 2024, primarily because of an adjustment in deferred tax.

Aurecon (169th) maintained its fifth-place ranking, with a ROA of 30.6% in 2024, compared to 41.6% in 2023.

Return on equity measures how effectively a company can generate income relative to the amount of money shareholders have invested in the firm.

It is a useful tool for investors, particularly when comparing firms within the same industry and is calculated by measuring the revenue earned against the average equity held over the past two years – to prevent changes in shareholder contributions from skewing the results.

Singapore Airlines (ranked 123rd in the Top 200 Index) has returned to the Top 200 Index in 2024 and occupies first place in the return on equity rankings, with a result of 9164.4%.

Emirates Airlines NZ (88th) has taken second place for return on equity, achieving 808.3% and moving up from third place in 2023.

Lotto (31st) has taken third place for return on equity, moving down from the top spot in 2023, with a return on equity of 623.6% in 2024.

Bunnings (27th) has taken fourth place for return on equity, moving down from second place in 2023, with a return on equity of 499.3% in 2024.

Pushpay (129th) is in fifth place with a return on equity of 179.1%, a notable improvement from 13.2% in 2023 because of its increase in net profit after tax.

This year, 21 companies were added to the Deloitte Top 200 Index. This compares to last year when 22 companies were added to the Index.

Downer (ranked 17th on the Top 200 Index) entered the Index at the highest rank with revenue of $3378m.

Waste Management (83rd) returned to the Index in 2024 with revenue of $645m.

DHL (99th place) with revenue of $522m and Singapore Airlines (123rd) with revenue of $382m were the third and fourth highest-ranked newcomers in 2024.

Just missed the cut
OCS Group (would rank at 201st in the Top 200 Index) narrowly missed the cut by just $3m, with the 200th-ranked company (Christchurch Airport) achieving revenue of $233m.

CablePrice (202nd), Honda NZ (203rd), and DKSH (204th) were close to breaking into the Top 200 Index in the current year, all achieving revenue around $229m.

The Top 30 Financial Institutions Index sees one new addition to the Index, FlexiGroup (ranked 30th).

The Top 30 financial institutions have had a slight decline in their total asset bases this year by $6473m, from $733,803m in 2023 to $727,331m in 2024. This is a 0.9% decrease and contrasts with the 9.3% increase seen in 2023.

The top bank is once again ANZ, holding assets of $194,289m, down 3.4% from $201,134m in 2023. ANZ continues to sit comfortably in the top spot, with a $61,491m gap in total asset value between first place and second place (Westpac). ANZ also outpaces all other banks in terms of profit and equity.

The second place in the Index has been held by Westpac in both 2023 and 2024, with total assets of $132,798m – a decrease of 2.2% from the previous year.

BNZ continues to hold third place, with total assets of $130,065m, a 1.0% decrease from the previous year.

ASB remains in fourth place from 2023, with total assets increasing slightly to $127,089m – up 0.2%.

Of the top four financial institutions, ANZ, Westpac and ASB have had a decrease in profit year-on-year.

ANZ reported a decrease in profit from $2,289m to $2,217m (a 3.1% decrease), Westpac reported a decrease in profit from $1,298m to $1,184m (a 8.8% decrease) and ASB reported a decrease in profit from $1,559m to $1,455m (a 6.7% decrease).

BNZ was the only top four financial institution to report an increase in profit, from $1,414m to $1,509m in 2024 (an increase of 6.7%).

Kiwibank has retained its fifth-place spot, with total assets of $36,650m. Kiwibank’s total assets have increased by 8.3% from $33,838m in 2023. ASB has dropped to fourth place in 2023 from second in 2022, with total assets of $126,896m.

Cumulative profits for the Top 30 financial institutions have increased by 0.8% from $7715m in 2023 to $7775m in 2024.

Cumulative equity has increased by 5.4% from $65,823m in 2023 to $69,356m in 2024.

The top seven financial institutions have remained the same seven entities from 2023 to 2024.

Heartland Bank has moved up to eighth place from ninth place in 2023, which has caused HSBC to move down from eighth place in 2023 to ninth place in 2024.

MUFG remains consistent, holding 10th place in 2023 and 2024.

It is noted that certain financial institutions may have released unaudited earnings announcements that are not reflected in the indices or commentary above.

 

US Business Summit 2024: US capital – The spur for New Zealand’s growth story

Co-founder of Shasta Ventures and a 24-year veteran of venture capital, Rob Coneybeer discussed how New Zealand can position itself to attract foreign direct investment. Rob shone a light on New Zealand’s appeal as an investment destination, sharing insights into how the country could attract much needed foreign direct investment and thrive in the global market.

He was joined by Hon Barbara Edmonds, a former tax lawyer and Labour’s Finance Spokesperson, who spoke about how New Zealand can take advantage of US investment, bringing a fresh perspective on Labour’s approach to fostering stronger economic ties and capitalising on opportunities.

Moderator: Tim McCready Summit MC

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US Business Summit 2024
22 November 2024 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.

US Business Summit 2024: Bright ideas and big markets – Dr Will Barker & Professor Delwyn Moller

Two visionary New Zealand leaders shared how advanced technologies in green metal extraction and aerospace innovation were addressing global challenges, from climate change to resource scarcity, while also creating vast opportunities in international markets.

Will Barker, CEO of Mint, highlighted how urban waste can be transformed into valuable green metals, reducing reliance on traditional mining and enabling a low-carbon, circular economy.
Professor Delwyn Moller presented cutting-edge innovations in aerospace technology, showcasing how Earth observation systems and advanced remote sensing are being used to address global challenges.
Moderator: Tim McCready – Summit MC

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US Business Summit 2024
22 November 2024 at Cordis, Auckland. Brought to you by NZ INC. and Auckland Business Chamber.

Mood of the Boardroom: University of Auckland leads innovation strategy amid higher education challenges (NZ Herald)

Mood of the Boardroom: University of Auckland leads innovation strategy amid higher education challenges (NZ Herald)

Higher education is one of the country’s most valuable assets, and in a time of economic uncertainty and evolving global challenges, we must ensure it is integrated as a critical component of the country’s ambition and broader national strategy.

That is the view of the University of Auckland vice-chancellor, Professor Dawn Freshwater, who believes building a future-focused, quality-driven education strategy for the country is more vital than ever. She highlights the growing intersection between education, industry and Government as crucial to this effort.

Freshwater says education in New Zealand is often overlooked, and siloed, hampering the country’s ability to position itself credibly globally.

“We must be clear on how we differentiate New Zealand on the world stage. We are coming from a strength-based approach in terms of building our economy and engaging internationally for the future.

“But I have not heard a strategy that addresses that.”

She says education is not seen as a business and it is not seen as an integral part of NZ Inc, but rather sitting outside it.

“The absence of a coherent approach across science, innovation, education, research — that links with immigration settings and future employment skills development — is a concern.”

She emphasises the need for businesses to understand their future skills requirements and engage in shaping the conversation.

“Businesses will need more highly qualified graduates with diverse skills for the future, but the reality is they won’t need everyone to be a graduate. We need to work in a much more cohesive way to drive an agenda that truly meets the needs of business.”

Freshwater believes the era of “massification,” or mass participation in higher education, is over.

“That was never a business model that was going to be sustainable, nor does it deliver the right employment outcomes,” she explains, calling for a different approach that is integrated into the country’s long-term planning.

“We need to shift towards a multi-layered education sector that brings about differentiation for future skills, and the quality required to graduate people into highly skilled jobs.”

However, Freshwater cautions against reducing the purpose of higher education to solely prepare students for employment. “It may seem contradictory, but our goal should be to graduate students who can drive business and innovation. That goes beyond just preparing them for jobs.”

Quality vs volume

The balancing act between quality and volume in higher education, she notes, is not unique to New Zealand.

She highlights how some international institutions, including some in the Russell Group (the 24 leading UK universities) and the Group of Eight (Australia’s leading research-intensive universities), tweak their entry requirements to maintain student numbers — often concerning cross-subsidies and in response to the challenges of funding research excellence and maintaining and investing in a world-class student experience that remains competitive.

For the university and New Zealand, Freshwater favours prioritising quality over volume. “As soon as you start to get into volume-driven decisions over quality-driven, you start to lose your credibility internationally and nationally,” she explains.

“Access to higher education is both a privilege and a right. The University of Auckland is a comprehensive university, and so it is important that we focus on breadth, but not at the expense of quality, that doesn’t drive the right message and send a signal about who we are and what we stand for.”

However, focusing on quality at the expense of student volume presents its own risks.

“If New Zealand drops volume and instead focuses on quality, then we are not going to have eight comprehensive universities in this nation,” Freshwater warns.

“And if you drop volume, you need the sector to work through what the overall education sector is going to look like to pick up those people to make sure that everybody has access to an education that is relevant and impactful.”

Forging ahead

In the absence of a clear overarching national strategy, the University of Auckland is taking the lead to do things that will drive the agenda.

“We are really thinking about the innovation strategy for the nation,” Freshwater says.

“We are prioritising entrepreneurship, innovation and the commercialisation of research at the highest levels of the university.”

This commitment is evident in initiatives such as the Business School’s Centre for Innovation and Entrepreneurship (CIE), providing students and staff across all faculties with opportunities to develop entrepreneurial thinking and capability.

Another example is the university’s newest campus in Newmarket, the centre of a growing innovation precinct. Acquired in 2013, the site focuses on engineering, science and health technologies, and is home to more than 20 start-up and growth companies. The precinct includes purpose-built research facilities and co-location amenities designed to advance the university’s broader innovation goals.

By creating an environment that fosters research, innovation, and collaboration, the University of Auckland aims to attract top talent, students, and thought leaders. It’s a strategy Freshwater sees as essential to strengthening New Zealand’s global competitiveness for the future.

The University of Auckland is a sponsor of the Herald’s Mood of the Boardroom project

2degrees Auckland Business Awards finalist announcement

Infrastructure: Government eyes tolls and congestion charging to fund roadingICBC: Innovative funding for green infrastructure

Marking a significant shift in the country’s transport policy, the Government Policy Statement on Land Transport indicates that road pricing, such as tolling and time-of-use charging, will play a key role in delivering the Roads of National Significance programme as part of a broader package of transport revenue and investment tools.When asked if all the Roads of National Significance would be tolled, Transport Minister Simeon Brown said: “I imagine we’ll be tolling every single one of them, which is a recommendation.”Infrastructure New Zealand, the country’s peak infrastructure sector body, supports the Government’s proposed use of road tolling to fund the new Roads of National Significance.

“Safe and efficient four-lane and grade-separated highways are not cheap, yet they are a critical piece of the puzzle when it comes to improving New Zealand’s land transport network,” said Infrastructure New Zealand chief executive Nick Leggett.

“Tolling is the way to go to help deliver these new highway projects.

“The reality is if we want modern first-world infrastructure then that will need to come through greater use of user-charging mechanisms such as tolling.”

Time-of-use charging

While the Auckland regional fuel tax was scrapped by the National-led Government on June 30, legislation will be introduced this year to enable time-of-use schemes to be developed to reduce travel times on New Zealand’s busiest roads.

“Congestion is a tax on time and productivity,” said Brown.

“It means that we are away from home for longer, sitting in gridlock. It results in fewer jobs being done, fewer goods being moved, and delays to services across the city.

“Faster, more reliable travel times will increase productivity, and lower costs for businesses and their customers. That is why we are enabling time-of-use schemes to be put in place.

“Enabling time-of-use schemes is a priority for our Government and a commitment under the National-Act Coalition Agreement.”

Brown stressed that time-of-use schemes will improve network efficiency to increase productivity and enable people and freight to get where they need to go quickly and safely – and that they are not about raising revenue.

“Any money collected through time-of-use charging will also be required to be invested back into transport infrastructure that benefits Kiwis and businesses living and working in the region where the money was raised. Councils will not be able to spend this money on other priorities or pet projects,” he said.

Auckland is set to be a focal point, with the Government prioritising working with Auckland Council. The city already faces severe traffic issues, with private vehicle travel accounting for nearly 75% of commuting across the Auckland region.

The Mayor of Auckland, Wayne Brown, has long been an advocate for time-of-use charging – a term he prefered over the broader “congestion charging”.

“What we’re talking about is time-of-use charging rather than congestion charging,” he explained. “Congestion charging is when you put a ring around the city, like London, and you have to pay to go into it.”

His preference is for dynamic charging, which encourages motorists to adjust their travel time, route, or mode of transportation to keep choke points flowing during peak times.

A 2020 Ministry of Transport report found that time-of-use charging could reduce congestion in Auckland by around 8-12% when fully implemented, similar to the traffic levels seen during the school holidays.

A 2017 report from the New Zealand Institute of Economic Research calculated the economic and social benefits to Auckland if the road transport network was operating at capacity Monday to Friday to be between $0.9 billion and $1.3b. If the average speed across the network was close or equal to the speed limit (free-flow), this benefit would be even greater – between $1.4b and $1.9b.

In June, Auckland Council’s transport and infrastructure committee approved a time-of-use charging scheme to be designed for the Auckland region on the city’s motorways and arterial routes.

“It’s about making the most of what we have and bringing Auckland in line with similar cities,” the mayor said. “It’s a tried and tested solution, and one that’s relatively low-cost.”

Auckland Council has suggested that the initiative would need to be supported by “reliable” public transport, and if the scheme designed is successful, it would likely launch alongside the City Rail Link in 2026.

Timeline for implementation

The Government is drafting a bill to amend the Land Transport Management Act 2003. This will establish the legal framework necessary to introduce time-of-use charging schemes aimed at managing road network demand. This is expected to be introduced to Parliament before the end of this year and will be reviewed by the Transport and Infrastructure Select Committee in 2025.

Once enacted, local authorities will be able to propose and develop time-of-use schemes in partnership with the New Zealand Transport Agency (NZTA), who will act as the majority partner. The Government, through the NZTA, will also have the authority to propose a scheme.

After a scheme is designed, it will be submitted to the Minister of Transport for approval, then implemented through an Order in Council with clear rules governing the scheme, providing road users with certainty about where, when and how much they will be required to pay.

To maintain the effectiveness of these schemes, they will be granted some operational flexibility.

For example, they will be able to adjust charges without the need for public consultation, but only at pre-determined intervals and provided the charge remains below the maximum. They will require regular monitoring and reporting, particularly on changes in travel times and traffic volumes.

Reporting on the amount of revenue generated and its subsequent use will also be required.

The Secretary of Transport will oversee the schemes, ensuring they meet their objectives, and the Government will have mechanisms to intervene if an approved scheme fails to deliver its anticipated objectives.

New York demonstrates the challenges

Congestion and time-of-use charging has been successfully implemented in many major cities around the world.

Singapore first introduced a congestion charge in 1975, requiring drivers to pay a flat fee to enter a restricted zone during peak hours, reducing congestion by 20%.

By 1998, it evolved into a fully automated electronic road pricing system, significantly reducing traffic, boosting public transportation usage and lowering emissions.

Stockholm introduced a seven-month trial in 2006, which saw traffic volume drop 22% per day on average and emissions fall by 30%.

This led to a referendum in 2007, which saw the scheme become permanent. Stockholm’s implementation demonstrated that once congestion charging is introduced, explained, and successfully tested, it was supported by a majority of the population.

Research by the Seattle Department of Transportation, which has explored its own congestion charging scheme, found that once a detailed proposal for congestion charging is established, but before its full implementation, public support is usually low. This can be attributed to the disadvantages of pricing becoming more evident than potential advantages or fears that the technical system might be overly expensive or fail to work.

Once a system is in place, public support generally increases, usually driven by the system working and people happy with the benefits, or their initial fears not being realised.

Nevertheless, overcoming initial fears will need to be carefully managed in any rollout in New Zealand, especially in times of economic pressure.

The recent experience of New York City’s implementation highlights this challenge. Despite years of preparation and the installation of necessary equipment, New York City’s congestion pricing plan – due to be rolled out on June 30 this year – was “indefinitely paused” by Governor Kathy Hochul on June 5.

The first-in-the-nation congestion pricing scheme, approved in 2019, would have seen cars charged $15 to enter a large swath of Manhattan.

Hochul slammed on the brakes at the last minute before its introduction due to concerns about the timing and state of the city’s post-pandemic recovery.

She said she feared New Yorkers could face “unintended consequences” if the plan was introduced.

The pause leaves the city’s public transport system without an additional $1b per year in funding, with delays expected for improvements in traffic congestion, air quality, and its dilapidated subway system.

It may also discourage other US cities from pursuing similar pricing initiatives that were looking to New York City’s implementation as a case study for their own rollout.

Government priorities

The Government is prioritising 17 Roads of National Significance, recently highlighted in the Government Policy Statement on Land Transport (GPS). The New Zealand Transport Agency is expected to begin procurement, enabling works, and construction of the first seven within the next three years.

  • Takitimu North Link Stage 1, connecting Tauranga and Te Puna, is already under way, with construction on Ōtaki to North of Levin set to begin next year.
  • The next phase of projects includes Belfast to Pegasus (Canterbury, including a bypass through Woodend), the Hawke’s Bay Expressway, SH1 between Cambridge and Piarere (Waikato), SH29 Tauriko (near Tauranga), Takitimu North Link Stage 2 (Te Puna to Ōmokoroa), Mill Road (South Auckland), and Ara Tūhono Warkworth to Wellsford (northern Auckland).

Research shows appetite for congestion charge

Aucklanders are up for a conversation on congestion pricing, or time-of-use charging.

Commissioned by policy and advocacy organisation the Northern Infrastructure Forum and delivered by Koi Tū: The Centre for Informed Futures, a think tank and research centre at the University of Auckland, research has explored the views of the community on congestion charging.

It found Aucklanders understand that what is happening now isn’t working, and new approaches need to be considered. While panel members surveyed supported congestion pricing in principle, they had some concerns. The research concluded:

  • The primary objective of congestion charging must be to reduce congestion.
  • There should be the strategic use of discounts and exemptions to mitigate social impacts.
  • Revenue collected must be used exclusively to provide transport options for Aucklanders (particularly public transport options).
  • Congestion charging should be kept simple and transparent.

That means: people need to know what they’re paying and when, with timing and pricing reviewed regularly; initial geographical boundary for the charging zone must not be too complex; it must be user friendly with reliable payment systems; there should be clear communication of benefits, particularly decongestion benefits.