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High hazards newsletter – September 2025

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Source: Worksafe New Zealand

Welcome to the eighth WorkSafe High Hazards newsletter.

In this issue we cover:

  • Introduction from Pelin Fantham, Chief Inspector High Hazards 
  • New major hazard facility (MHF) Notifiable Incident form 
  • MAHB Common Inspection Criteria 
  • Incident insights – coupling failures trend 
  • Safety Case Statistics 
  • Final Reminder – PFAS firefighting foam transitional period ending 
  • HHU incident data and frequency 
  • In the news

Read the full newsletter(external link)

MIL OSI

Working together to keep Crowded Places safe and advice on what to do in the unlikely event of an attack

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Source: New Zealand Police

Police has today released a suite of resources to help increase awareness about what to do in the unlikely event of an active armed attack in a crowded place.

Police is the lead agency of the Crowded Places Strategy.  This work is about protecting the lives of people working in, using and visiting crowded places. Places we go as part of our everyday routine, from our favourite mall to a weekend market or a large sporting event.

“The nature of crowded places means they at times can pose extra risks, as they can be a target for attacks,” says Assistant Commissioner Mike Johnson.

“While there is always the possibility of a Crowded Places attack, Police together with businesses will continue to work together to prevent this from occurring.

“Like anything we do, it’s important to have plans in place. The goal is that none of us will ever need to use this information. It’s about being prepared so people know what to do should something of this nature happen.

“Remember three simple words: Escape. Hide. Tell.  That means moving quickly and quietly away from danger, staying out of sight, silencing your phone and — when it is safe to do so — calling Police on 111.

“Police want to extend our thanks to the current and previous members of the Crowded Places Business Advisory Group and the Crowded Places Community Advisory Group for their work to help raise awareness in the businesses and communities they represent to help keep crowded places and communities safe”.

Crowded Places Business Advisory Group member Scentre Group Director of Security John Yates is supportive of this work:

“The safety and security of our customers, communities and people is our highest priority.

“We support the New Zealand Government’s campaign to raise broad community awareness of the ‘Escape. Hide. Tell.’ messaging,” says John.

“Knowing what to do in the unlikely event of an active armed offender attack is a difficult topic yet a critical one.

“Remaining vigilant when in public and crowded places and remembering these three words could make a difference.

“The ‘Escape. Hide. Tell’ messaging gives guidance to help people find a safe place to hide, move out of harm’s way and to relay critical information to authorities to aid in their response.

“We encourage our customers, business partners and broader community to have conversations with their teams and family members and help to raise awareness as we would for any other important public safety message.

“From this month, we will be supporting the Government’s campaign by displaying the ‘Escape. Hide. Tell.’ message across digital screens within our Westfield destinations.”

Paul Patel Chair of the Crowded Places Community Advisory Groups says:

“The Crowded Places Strategy marks a vital step forward in safeguarding our shared spaces, empowering communities to act with clarity and confidence. ‘Escape. Hide. Tell.’ is more than a message, it’s a commitment to collective responsibility”.

Mat Hellyer Chair of the Crowded Places Business Advisory Group says:

“Crowded places are where much of life happens. Venues, malls, transport hubs, cafés, street activities, places of worship – they are where we gather, celebrate, share experiences, and connect. But with that vibrancy of course comes vulnerability.

“Businesses play an important role in keeping New Zealanders safe, and we take very seriously the responsibility that comes with owning and operating them. The Business Advisory Group is proud to partner with Government and New Zealand Police in launching this campaign, a vital step in strengthening public safety, building resilience, and ensuring our spaces remain welcoming and secure for all. We are committed to doing our part.”

Notes for Editors:

What is a Crowded Place?

Crowded places are locations that large numbers of people access easily and predictably. They include sporting arenas, transport hubs and public transport, buildings and offices, schools, shopping centres, restaurants, hotels, theatres and other entertainment venues, community festivals and markets, houses of worship, tourist attractions, and civic spaces. Crowded places also include open spaces like busy urban streets, parks and pedestrian malls.

A crowded place is not necessarily always crowded: the density of the crowd may vary between day and night, and between seasons; the crowd may be temporary (such as sporting events, festivals, concerts or one-off functions).

‘Escape. Hide. Tell.’ messaging:

In an attack what you do matters, remember the words: ESCAPE. HIDE. TELL.

ESCAPE: Move quickly and quietly away from danger, but only if it is safe to do so.

HIDE: Stay out of sight and silence your mobile phone.

TELL: Call the Police by dialling 111 when it is safe.

Reporting suspicious behaviour:

In an emergency everyone should call 111

If the information is not time-critical, people can report suspicious or unusual behaviour to their local Police by:
• completing a report at 105.police.govt.nz or calling New Zealand Police’s non-emergency number 105
• visiting their nearest Police station
• calling Crime Stoppers if you wish to remain anonymous on 0800 555 111

To report information of national security concern, call the NZSIS on 0800 747 224  or use their Public Contribution Form

Resources and links to further information:

More detailed information on Escape. Hide. Tell can be found on the New Zealand Police website here.

More information on security preparations for Crowded Places can be found here.
 

MIL OSI

Pharmac proposes funding a new brand of ADHD medicine

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Source: PHARMAC

Pharmac is seeking feedback on a proposal to fund a new brand of methylphenidate to help address ongoing supply issues and provide more treatment options for people with attention deficit hyperactivity disorder (ADHD).

If approved, the proposal would see Methylphenidate Sandoz XR funded from 1 December 2025. This is a generic equivalent to the Concerta brand and would be available in the same strengths.

“We know how distressing it’s been for people and their families who haven’t been able to get the ADHD medicines they rely on,” says Pharmac’s Chief Medical Officer, Dr David Hughes. “This proposal is part of our response to the ongoing supply issues and aims to provide more options for people who need these treatments.”

Supply issues have affected all brands and strengths of methylphenidate in New Zealand since September 2023 and are expected to continue throughout 2025. These disruptions are due to global demand, manufacturing constraints, and restrictions on medicine imports and exports.

“Adding a new brand is intended to help increase the overall supply of methylphenidate and reduce the risk of shortages,” says Dr Hughes.

“It also helps us prepare for upcoming changes in February 2026, when more health professionals – including GPs and nurse practitioners – will be able to prescribe ADHD medicines.”

Pharmac is inviting feedback on the proposal to ensure it works well for the people who need it.

 “We’re talking with clinicians, advocacy groups, and others to understand the practical impacts of this proposal. Your feedback will help us understand how this proposal might work in practice and whether it meets the needs of people with ADHD,” says Dr Hughes.

Consultation is open until 5 pm, Wednesday 1 October 2025. Feedback can be sent to consult@pharmac.govt.nz or submitted via the online form linked in the consultation.

MIL OSI

Proposed regulations for managing high pathogenicity avian influenza H5N1 in poultry

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Source: NZ Ministry for Primary Industries

Background information about avian influenza and this consultation

There are various strains of high pathogenicity avian influenza (HPAI). The strain that is the subject of this consultation is HPAI H5N1 clade 2.3.4.4b.

If this virus arrives in New Zealand and becomes widespread in wild birds, it’s unlikely we’ll be able to eradicate it. That is why we need to take a long-term management approach.

The proposals outlined in this consultation would empower the poultry industry to effectively and sustainably support the management of HPAI H5N1 in the long term.

Have your say

The Ministry for Primary Industries (MPI) seeks your feedback on 6 proposals for developing regulations to manage HPAI H5N1 clade 2.3.4.4b in poultry. The proposals focus on commercial poultry, but some proposals might affect other poultry owners.

Submissions opened on 17 September and close at 11:59pm on 2 November 2025.

The 6 proposals

  1. Commercial poultry operators would be required to develop an avian biosecurity control programme to ensure they can sustainably manage HPAI H5N1 if it appears on their farm. 
  2. All poultry operators/owners must meet appropriate biosecurity standards. This proposal would also apply to semi-commercial poultry operators and non-commercial poultry owners (including pet poultry birds), if regulations specify a method (or methods) for disposing of dead birds that could be required to be used.
  3. Commercial poultry operators must keep appropriate records and provide information to MPI when required.
  4. Avian biosecurity control programmes must be audited.
  5. Regulations provide for appropriate offences and penalties.
  6. Costs of auditing are at least partially recovered from commercial poultry operators.

Further details on each of the proposals are available in the discussion document. We have also prepared a summary of the discussion document and more detailed analysis in an interim regulatory impact statement.

Consultation documents

Discussion document: Proposed regulations for managing high pathogenicity avian influenza H5N1 in poultry [PDF, 1.3 MB]

Discussion document summary: Proposed regulations for managing high pathogenicity avian influenza H5N1 in poultry [PDF, 449 KB]

Interim regulatory impact statement: Managing high pathogenicity avian influenza H5N1 in poultry [PDF, 622 KB]

Related information

Commercial poultry and avian influenza

Making your submission

Submit your feedback on the proposals by 11:59pm on Sunday 2 November 2025.

You can use the online form or email or post your feedback using the optional submissions template. Consultation questions in the submission template and online form are identical.

Email us your submission

If you are emailing or posting your submission, we encourage you to use our consultation template [DOCX, 745 KB]

Email your submission to BiosecurityPartnerships.Policy@mpi.govt.nz

Post your submission

While we prefer online or email submissions, you can post written submissions to:

Consultation: HPAI Regulations
Ministry for Primary Industries
PO Box 2526
Wellington 6011
New Zealand.

What to include

Make sure you tell us in your submission:

  • the title of the consultation document (Proposed regulations for managing high pathogenicity avian influenza H5N1 in poultry)
  • your name and title 
  • your organisation’s name (if you are submitting on behalf of an organisation, and whether your submission represents the whole organisation or a section of it)
  • your contact details (such as phone number, address, and email). 

Submissions are public information

Note that all, part, or a summary of your submission may be published on this website. Most often this happens when we issue a document that reviews the submissions received.

People can also ask for copies of submissions under the Official Information Act 1982 (OIA). The OIA says we must make the content of submissions available unless we have good reason for withholding it. Those reasons are detailed in sections 6 and 9 of the OIA.

If you think there are grounds to withhold specific information from publication, make this clear in your submission or contact us. Reasons may include that it discloses commercially sensitive or personal information. However, any decision MPI makes to withhold details can be reviewed by the Ombudsman, who may direct us to release it.

Official Information Act 1982 – NZ Legislation

MIL OSI

Minister Simpson promotes resilience and insurance ties in London

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Source: New Zealand Government

Commerce and Consumer Affairs Minister Scott Simpson travels to London this week to strengthen New Zealand’s international partnerships in insurance, emergency preparedness, and business competition.

“Resilience and disaster recovery are central priorities for this Government. My visit to London is an opportunity to promote New Zealand’s leadership in these areas, and to build stronger ties with global partners who share our challenges and ambitions,” Mr Simpson says.

The Minister will attend meetings involving the Insurance Council of New Zealand, including with Aon, Lloyd’s of London, and the UK Competition and Markets Authority.

Mr Simpson will also receive a detailed briefing from officials at the New Zealand High Commission, and take part in a series of events reflecting the breadth of New Zealand’s relationship with the United Kingdom.

This includes attending the 85th Anniversary Battle of Britain Service and Reception and supporting the Black Ferns in their Women’s Rugby World Cup semi-final against Canada.

Minister Simpson will be in London from 17–21 September.

MIL OSI

Cantabrians say “enough”: Nitrate-polluted tap water returned to ECan – Greenpeace

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Source: Greenpeace

Fed-up locals are rallying outside Environment Canterbury this morning, handing back contaminated drinking water in protest at years of council inaction that has left rural families unable to safely drink from their kitchen tap.
Greenpeace’s Canterbury-based spokesperson Will Appelbe says “Today, we’re delivering nitrate contaminated drinking water from homes across the region to the people responsible for that contamination, because Environment Canterbury have failed in their duty to protect lakes, rivers, and drinking water.”
“Instead of defending Canterbury’s water, ECan has waved through intensive dairy expansion and the excessive use of synthetic fertiliser. That has to change.”
Today’s rally takes place as councillors head into their final meeting before the local elections. At this meeting, councillors will vote on a motion to declare a ‘Nitrate Emergency’ – put forward by Councillor Vicky Southworth.
“We’re calling on all Environment Canterbury candidates running in the local elections to make a serious commitment to fresh water by protecting lakes, rivers, and drinking water in our region.”
In July, news broke that Environment Canterbury had approved more than fifteen thousand extra dairy cattle onto the Canterbury plains in just seven months. Last week an Environment Canterbury study revealed 48% of private drinking wells tested for nitrate near Burnham exceeded the legal health limit of 11.3 mg/L
Appelbe warns that Environment Canterbury hopefuls will face scrutiny over freshwater pollution if elected to council.
“Today ECan councillors will leave this building for the last time before jumping on the campaign trail to try to win Cantabrians’ votes. And we’re here with people from across the region to say that we don’t want more dirty dairying.
“Candidates in the Environment Canterbury election must defend freshwater by committing to end dairy expansion and phasing out the use of synthetic nitrogen fertiliser. The question is, who will step up to the task?”

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Bill to ban surcharges passes first reading

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Source: New Zealand Government

The Government is stamping out another payment pain point – extending its surcharge ban to foreign issued cards and commercial cards to make life easier for businesses and consumers, Commerce and Consumer Affairs Minister Scott Simpson announced today.

“The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill passed its first reading last night. The Bill prohibits surcharges on all in-store EFTPOS, Visa and Mastercard payments.

“Including foreign cards is easier for everyone. A comprehensive ban means businesses don’t have to second-guess what’s in or out, and consumers won’t get stung by surprise add-ons at the checkout.

“International visitors from our big inbound tourism markets like the United Kingdom and Europe, where surcharges are long gone, won’t feel like they’ve stepped back in time or they are being ripped off. 

“I want consumers to enjoy the benefits as early as possible, so the Bill proposes a one-month implementation period once it has been passed. The ban will be in place by May 2026, or sooner if possible. 

“By the time the ban is in full swing, the savings from the Commerce Commission’s latest cut to banking fees will benefit businesses, with expected savings of up to $90 million a year. That’s on top of the earlier savings of $140m from caps set in 2022.

“The ban means Kiwi shoppers will no longer be confronted at payment terminals by a pesky sticker and surprise, sometimes excessive, costs.”

The Retail Payment System (Ban on Merchant Surcharges) Amendment Bill will go to the Finance and Expenditure Committee. 

 Note to editors

  • Transactions through the Visa and Mastercard networks and by EFTPOS are the main method of card payment in New Zealand.
  • The Commerce Commission estimates New Zealanders pay about $150 million in surcharges annually. An estimated $65 million of that is excessive
  • According to the Commerce Commission, approximately 20% of New Zealand businesses surcharge. Most businesses choose to absorb payment costs as a usual cost of doing business.
  • Businesses pay $1 billion in merchant service fees each year, mainly to banks, for accepting Visa and Mastercard debit and credit payments (including online transactions).
  • Interchange fees make up approximately 60% of merchant service fees. The Commerce Commission has decided to cut these fees from 1 December 2025 for cards that are already regulated and 1 May 2026 for cards that will become subject to caps for the first time (foreign-issued cards). The Commission estimates business savings of up to $90 million a year, on top of $140 million in annual savings from previous fee caps.
  • Online transactions and payments through networks other than Visa, Mastercard and EFTPOS are excluded from the surcharging ban.

MIL OSI

Provinces backed by $1.3 billion rail infrastructure

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Source: New Zealand Government

The 2024/25-2026/27 Rail Network Investment Programme has been finalised, providing $1.360 billion over three years with infrastructure investment that backs provincial New Zealand, Rail Minister Winston Peters says.

“When the taxpayer builds an asset, we expect it to be used for the benefit of our economy and not wasting away on the side of the road, which is why we are focussed on a no-nonsense rebuild of the railways,” Mr Peters says.

“Since the first railway was laid in 1863, rail has built New Zealand into an export nation connecting the hinterland to ports and communities to each other.

“Regional summaries of the work show the extent of work by track teams across New Zealand, relaying long lengths of rail, replacing ballast rock and sleepers, enlarging culverts to guard against floods and washouts, protecting bridges and slopes from erosion, and improving the telecommunication systems that manage the national signalling network.

“This is the type of basic day-to-day investment that makes the economy work – grunt work that gets our exports to the rest of the world.

“In 2020 when last responsible for rail, we changed the law to fund rail like roads by establishing a three-yearly Rail Network Investment Programme funding maintenance, renewals and network operations – rebuilding our rail infrastructure sleeper by sleeper after decades of dereliction.

“Our network investment is bolstered by brand new train control centres in Upper Hutt and Auckland, resilient to natural disasters, which were built thanks to our investment when previously responsible for rail, accompanying thousands of new wagons, shunts and locomotives to underpin a thriving rail company.

“And we have secured rail ferries for another generation.

“When we talk about sleepers, we mean what sits under the rails, not those in Parliament,” Mr Peters says.

Regional Summaries of the 2024/25-2026/27 Rail Network Investment Programme

Northland:

2km of re-sleepering and 4km of re-railing
2 culvert renewals
Renewals work on 3 bridges
Renewals work on 1 telecommunications asset

Auckland:

1km of re-sleepering, 1km of re-railing and 9 turnout replacements
Westfield yard renewals

Waikato (North Island Main Trunk and Waikato feeder lines):

400m of re-sleepering, 2km of re-railing and 4 turnout replacements
2 culvert renewals plus work on 5 slopes and river protection assets (along the Ongarue River)
Renewals work on 4 bridges
Renewals work on the active protection at 3 level crossings
Resealing of 1 level crossing
Renewal of points switching equipment at 9 turnouts
Renewal of train-detection assets along 6 sections
Renewals work on 11 telecommunications assets
Renewals of traction assets at 32 sites on the electrified northern section of the North Island Main Trunk
Business case study for electrification extension within the golden triangle
400m of re-sleepering, 2km of re-railing and 2 turnout replacements
1 culvert renewal and work on 1 retaining wall
Renewals work on 5 bridges (including Bridge 125 south of Matata)
Renewals work on the active protection at 1 level crossing
Resealing of 1 level crossing
Renewal of points switching equipment at 4 turnouts
Renewal of train-detection assets along 1 section
Renewals work on 17 telecommunications assets (including replacing the fibre-optic cable between the Waikato and Tauranga)
Signal cable replacements between Awakaponga and Kawerau
Mount Maunganui yard renewals

Waikato / Bay of Plenty (East Coast Main Trunk and Bay of Plenty feeder lines):

Hawkes Bay:

7km of re-sleepering, 5km of re-railing and 3 turnout replacements
Resilience work on 1 bridge (Bridge 156 – Ormondville Viaduct)
Renewals work on the active protection at 7 level crossings
Resealing of 2 level crossings

Taranaki / Manawatu-Whanganui (all lines west of Marton)

7km of re-sleepering and 6km of re-railing
3 culvert renewals and work on 2 retaining walls, 2 river protection assets and 1 slope
Renewals work on 4 bridges
Resealing of 8 level crossings
3km of re-sleepering, 2km of re-railing and 1 turnout replacement
1 culvert renewal and work on 2 slopes
Renewals work on 6 bridges
Renewals work on the active protection at 5 level crossings
Resealing of 7 level crossings
Renewal of points switching equipment at 4 turnouts
Renewal of train-detection assets along 5 sections
Renewals work on 9 telecommunications assets
Renewals of traction assets at 21 sites on the electrified southern section of the North Island Main Trunk

Manawatu-Whanganui (North Island Main Trunk and Manawatu Gorge to Pahiatua)

Wellington: 

300m of re-sleepering, 300m of re-railing and 2 turnout replacements
Renewals work on 6 telecommunications assets

Marlborough / North Canterbury (Main North Line):

3km of re-sleepering, 6km of re-railing and 1 turnout replacement
Work on coastal protection between Claverley and Oaro and on 2 slopes (around tunnel portals)
Renewals work on 12 bridges (including Bridges 189, 195 & 196 near Picton)
Renewals work on the active protection at 1 level crossing
Resealing of 1 level crossing
Renewal of points switching equipment at 1 turnout
Renewals work on 1 telecommunications asset

Central Canterbury (Midland Line section):

2km of re-sleepering and 3km of re-railing
1 culvert renewal and work on 3 slopes
Renewals work on 2 bridges (including Bridge 16, viaduct north of Springfield)
Renewal of points switching equipment at 2 turnouts

West Coast (including Midland Line section):

4km of re-sleepering, 4km of re-railing and 9 turnout replacements
Ongoing track renewals work in the 8.5km-long Otira Tunnel
3 culvert renewals and work on 2 retaining walls and 1 slope
Renewals work on 16 bridges (including Bridges 49, 88 and 89 on the Midland Line, and Bridges 11, 45 and 133 on the Stillwater-Ngakawau Line)
Renewals work on the active protection at 2 level crossings
Resealing of 2 level crossings
Renewal of points switching equipment at 16 turnouts
Renewal of train-detection assets along 1 section
Renewals work on 7 telecommunications assets
Resignalling renewals between Kokiri and Stillwater

South Canterbury (Main South Line):

300m of re-sleepering, 1km of re-railing and 11 turnout replacements
Renewals work on the active protection at 1 level crossing
Resealing of 3 level crossings
Renewal of points switching equipment at 5 turnouts
21km of re-sleepering, 13km of re-railing and 10 turnout replacements
8 culvert renewals and work on coastal protection assets, 6 retaining walls and 6 slopes
Renewals work on 11 bridges (including Bridges 207 and 208 north of Dunedin, and completing the renewal of Bridge 202)
Renewals work on the active protection at 4 level crossings
Resealing of 24 level crossings
Renewal of points switching equipment at 5 turnouts
Renewals work on 6 telecommunications assets

Otago / Southland:

All regions:

Minor renewals (across all asset classes)
Component refurbishments
Ballast top ups
Rail de-stressing
Rail grinding

MIL OSI

New safety campaign for crowded places incident

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Source: New Zealand Government

The launch of a new safety campaign guides Kiwis on what to do to stay safe during an armed offender incident in a crowded place, says Police Minister Mark Mitchell.

“The campaign communicates three easy steps for people to follow that will help them stay safe in the unlikely event of an active armed offender incident in a crowded place,” Mr Mitchell says.

“New Zealanders love to get together and this is all about being prepared in public spaces, such as a sports and events venues, transport hubs or places we shop.

“I want to be clear that we are not expecting increased danger or risk in New Zealand, and while the advice may seem obvious, similar campaigns overseas have been helpful at guiding people.”

“While it’s unlikely Kiwis will encounter an active armed offender in a crowded place – someone with a weapon trying to hurt many people – it’s important everyone knows what to do.

“There are three simple words to remember: Escape. Hide. Tell.”

ESCAPE. Move quickly and quietly away from danger, but only if it is safe to do.
HIDE. Stay out of sight and silence your mobile phone.
TELL. Call the Police by dialling 111 when it is safe. 

“I encourage discussions within businesses, community groups and families. 

We all need to know how to respond in the unlikely event of an armed offender attack.

“Knowing what to do is the best way to keep ourselves and others safe.”’

For more information about the campaign visit: Know what to do: Escape. Hide. Tell | New Zealand Police

MIL OSI

Economic Growth – NZ’s Economy Will Take Three Decades to Double Without Intervention – OECD Data

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Source: Impact PR

New OECD data shows NZ’s economy will take more than 30 years to double in size unless major structural and cultural changes are made to how organisations operate.

The modelling shows New Zealand’s real GDP, currently at US$216 billion, is not expected to double until 2055.[1]

While the nation’s economy is projected to grow by nearly 48% by 2040, this expansion is largely driven by population growth and increased labour input, rather than meaningful improvements in productivity.

New Zealand’s GDP per hour worked, once comparable to Scandinavian countries like Denmark, Finland, and Sweden, is now on average 40% lower than those economies. This long-term underperformance highlights the depth of NZ’s productivity challenge and signals a widening gap not just in economic output, but in living standards, wage potential and long-term competitiveness.[2]

Experts say that the rapid adoption of AI will not be enough on its own to reverse this trend and significantly boost productivity. Despite the transformative potential of AI and automation, they say that without a simultaneous shift in how organisations lead, structure and empower their people, the implementation of new technology risks amplifying the structural inefficiencies holding back productivity gains.

Craig Steel, a workplace performance expert from Vantaset and author of Transforming New Zealand’s Productivity, says the country has overestimated what technology alone can deliver without first building the leadership capability and workplace culture needed to make those tools effective.

“There’s a misguided belief that AI will close the gap for any organisation that applies it. But what we’ve seen is that when organisations adopt technology without modernising their leadership and culture, the gains they were seeking rarely occur

“If AI is layered on top of disconnected leadership models and compliance-based systems, it won’t lift people, it will marginalise them,” he says.

Steel warns that New Zealand is at risk of becoming a two-speed economy, where a small number of digitally advanced sectors pull ahead while the rest fall further behind.

“AI will benefit some industries more than others. High-tech services, finance and digital commerce are naturally positioned to leverage AI quickly. But for our traditional sectors like construction, agriculture, tourism and logistics, the path to impact is slower, more convoluted and more dependent on leadership clarity and workforce capability.”

Steel says that this uneven adoption is already starting to show as tech-savvy organisations begin to accelerate.

“You’re seeing early gains in digitally native firms that have agile structures and strong investment in talent. Meanwhile, labour-intensive sectors are struggling to adapt their business models, and without support, they’ll be left behind.”

Steel says the real barrier isn’t technology itself, but the lack of modern systems and the leadership needed to make it work.

“Despite the hype, AI’s promise of efficiency is often delayed by years of integration, upskilling and business model adaptation. In New Zealand, many small and mid-sized firms lack the scale or leadership frameworks to carry that burden effectively.

“OECD research shows that digital adoption only translates to higher productivity when it’s coupled with managerial capability, workforce training and capital investment. New Zealand firms consistently underperform in all three. Without a cultural and strategic reset, AI risks becoming just another cost with limited return,” he says.

Steel says technology must enhance human capability, not just replace it.

He says organisations that use AI to support clarity, autonomy and purposeful work are far more likely to see sustained productivity gains. When AI is implemented simply to reduce workforce size or centralise control, it can backfire – weakening morale, diminishing trust and stalling innovation.

“The opportunity with AI isn’t automation for its own sake, it’s augmentation – giving people better tools so they can make a bigger difference,” says Steel.

Steel says there are five interdependent drivers of performance: strategy, culture, leadership, capability and performance management.

He says his research shows that organisations consistently fail not because they lack data or technology, but because they fail to align these drivers.

Steel has worked with hundreds of organisations over the past 30 years, including some of New Zealand’s largest exporters across sectors such as agriculture, manufacturing, transport, infrastructure and financial services. He says the common thread among high-performing organisations is not scale or sector, but clarity and conviction.

“Regardless of industry, when people understand the strategy, see how they contribute, and are trusted to make decisions, performance improves. That doesn’t happen by accident; it happens by design.

“New Zealand businesses are at a crossroads. The current economic environment, shaped by global volatility, rapid technological disruption, and the changing nature of work, demands an entirely new approach to organisational performance.”

Darren Shand, former All Blacks manager and now delivery partner to Vantaset says New Zealand must look to the systems that underpin its sporting success.

“The All Blacks didn’t win because of tools. They won because of belief, clarity and discipline.

“Every player knew their role, how they contributed and how to excel under pressure. That same clarity is missing from many organisations right now.”

Shand draws a stark comparison between elite teams and underperforming industries.

“A factory floor is no different from a forward pack. If you have great individuals but no connection to purpose or feedback loops, performance breaks down. AI won’t fix that – systems, leadership and culture will.”

The OECD has further warned that rising energy costs, minimal R&D spending, and fragmented digital leadership are eroding New Zealand’s competitiveness just as other economies accelerate their investment in integrated performance systems.

Shand says the solution is not to discard AI, but to reposition it.

“You can’t fix a performance problem by swapping people for algorithms. You fix it by creating an environment where AI supports human decision-making, where strategy is clear and where people are trusted to lead.”

Shand says the message from elite sport is simple: adapt your model, not just the tools.

“In rugby, if you’re behind on the scoreboard, you don’t wait for momentum to shift. You change tactics. That’s what New Zealand needs now. A new playbook, not just a new platform”, he says.

MIL OSI