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Industry associations are working towards further coordination of the Christchurch relief operation.  More than 30 BusinessNZ-affiliated industry groups met today to exchange information on continuing relief efforts and undertook to spread the word that ‘business is open’ in Canterbury.  Member businesses of the industry groups are helping in many ways, including free use of helicopters, road vehicles, equipment and personnel, and financial, food and other donations.  BusinessNZ Chief Executive Phil O’Reilly said the extent of industry and official government help for Christchurch individuals and families has been extraordinary.  “In the midst of this unfolding tragedy we have seen the courage and resilience of Christchurch people and the genuine desire for businesses to help.  “Industry associations will help coordinate those efforts and promote the fact that Christchurch is open for business.   “The Affiliated Industries Group believes the quickest way to help Christchurch get back to normality is to buy things from there.  “People and enterprises elsewhere can help greatly simply by doing business with Christchurch firms.”   

The second-generation of the iPad has been released. The device that kicked off the tablet computing boom. is 15 per cent lighter than the original iPad and sports front- and rear-facing cameras. The iPad 2, will start at $US499 and ship in the US on March 11 and expand to 26 more countries on March 25. It has the same 10-hour battery life, though it has a more powerful dual-core processor. The new iPad 2 is a third thinner than the  iPhone 4.      Since the tablet debuted in April last year  Apple shares have risen 48 per cent, 37 percentage points more than the Standard & Poor’s 500, according to FactSet. 15 million iPads were sold in 2010 generated around $US10 billion in revenue for Apple.

Forward indicators were pointing to an upturn for the New Zealand economy until the Christchurch earthquake, according to the BusinessNZ Planning Forecast for the March quarter 2011. The BusinessNZ Planning Forecast incorporates BusinessNZ’s Economic Conditions Index (ECI) which tracks 33 indicators, including GDP, export volumes, commodity prices and inflation, debt and confidence figures. The ECI for the March quarter – prior to the Christchurch earthquake – had improved 6 points from the previous quarter. However, growth for 2011 will be severely dented through production foregone in the wake of the earthquake. On the positive side, commodities exports are going from strength to strength, taking New Zealand’s terms of trade to a 35-year high.ÊÊ Continuing robust growth in New Zealand’s major trading partners Australia and China is a positive indicator for 2012. The BusinessNZ Planning Forecast for the December quarter 2010 is here on www.businessnz.org.nz

ASB has  announced it will be dropping its home loan fixed interest rates by up to 0.5 of a percentage point. The new Housing interest rates will be effective from 2 March 2011. For a fixed term of 6 months the new rate is 5.85 percent per annum, with the new 12 months Housing fixed rate being 5.95 percent per annum. There will also be reductions to all other home loan fixed rates. The ASB decision to reduce fixed lending rates reflects changing wholesale funding rates and market forecasts that the Reserve Bank of New Zealand is likely to lower the Official Cash Rate next week. With wholesale call and 90 day rates reflecting little change at present theywill continue to monitor variable home loan interest rate leading up to the OCR announcement next week. ASB’s Term Deposit rates have also been reduced to reflect the changes in wholesale rates. The new Term Deposit and Term Fund interest rates are also effective as from 2 March. The full list of interest rate changes is attached. For more information about ASBÕs interest rates please visit the ASB website.

According to Tower Insurance, one of the country’s oldest and most trusted providers, and Patron of Business Mentors New Zealand, some companies are trimming the scope of their insurance cover in a bid to cut costs. However, Tower warns this false economy could leave businesses open to huge bills and in many cases force their closure. Tower is asking business mentors to help guide their clients away from underinsuring. “As 2011 gets underway, it is becoming clear some business owners think they can get away with spending much less on insuring their companies. They are being more selective, only taking out small chunks of insurance and not protecting their businesses to the full extent. They don’t think it’s necessary and they don’t want to spend the money. We’re asking BMNZ’s 1700 mentors to be on the look out for client companies that might be falling into this trap and counsel them against it,”says Julian Lough, National Manager – Commercial Sales at Tower Insurance. “This year is going to be financially challenging for many businesses but now is not the time to be cutting back on insurance. If another natural disaster or other unforeseen situation occurs, then being underinsured or not having the right type of insurance could be the final straw for many companies that are already struggling.” Julian points out that most New Zealand business owners only realise their mistake when they make an insurance claim, at which point it is too late to rectify. He advises catching up with an insurance advisor at least once a year to check that the business is adequately covered. “Businesses change over time – new equipment is invested in, replacement costs for items go up and premises are upgraded,” says Julian. “If the insurance policy is not kept up to date, the […]

CEOs of 50 leading New Zealand companies have  developed a Steering Group to co-ordinate private sector support for Christchurch following the  devastating earthquake. Members of BusinessNZ’s Major Companies Group CEO Forum were briefed by Prime Minister John Key, Finance Minister Bill English and Earthquake Recovery Minister Gerry Brownlee at a meeting in Auckland. The Forum identified a number of key areas where major companies could provide additional help to the city, including water, housing, infrastructure, health services, telecommunications and financial services. Each area will be led by a CEO with specialist knowledge to develop action plans in consultation with Civil Defence and the Government. Following that, the Steering Group will liaise with government agencies and co-ordinate private sector assistance in Christchurch to maximise the wealth of expertise and resources within New ZealandÕs leading companies. Forum convenor, BusinessNZ CEO Phil O’Reilly, said there was overwhelming willingness from the business community to help Christchurch through this crisis and beyond as it rebuilds. Forum chairman, Fonterra CEO Andrew Ferrier, said there was 100% commitment to the future of Christchurch. “Everyone around the table was absolutely committed to helping Christchurch through this terrible tragedy and to get back on its feet again. We heard that many of New Zealand’s companies are already doing a lot to help Christchurch and clearly there is a lot of experience we can draw on,” Mr Ferrier said. The Steering Group, chaired by Mr Ferrier and working with the co-ordination of BusinessNZ, will develop an agreed set of action plans for each priority area in the near term.