Tourists arrivals were the highest they’d been this March since before Covid-19, but as the fuel crisis continues tourism may take a hit.

Fuel prices have soared this year due to the conflict in the Middle East, making travel, both domestic and international, more expensive, but visitor arrivals in March totalled nearly 360,000 up nearly 15 percent from March 2025.

Stats NZ numbers showed overseas visitor arrivals hit 3.51 million in the year ended December 2025, up 6 percent from the prior year.

Tour operator Paul Button, general manager of Rotorua Canopy Tours and the Million Dollar Cruise in Queenstown, told Morning Report, there’d been a bit of a hit just recently through April going into May.

He said Rotorua had seen domestic support, but lower numbers from Australia and the United States which were usually two of the biggest markets.

Extreme inflation had also been a challenge recently, he said, noting it had been a tough six or so years.

“The challenge I guess for us, people are the products and we really gotta look after them.

“Last year we had a really good year… really excited for the future, but now it’s just more learning, more challenges.

He said the Million Dollar Cruise on Queenstown’s Lake Wakitipu had been 90 percent up in 2025.

Despite the fuel crisis, Button wasn’t too worried about the impact on tourism as he said many markets, including the Chinese market, saw Aotearoa as a safe place to go and so did many other markets.

“We’re seen as a safe destination to come to with all the chaos. Is a selling point, we’re seen as a really safe destination to visit.”

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

Immigration advisers say residency rules are driving an unprecedented surge in the number of foreign students paying $30,000-50,000 a year to study masters degrees.

Education Ministry figures showed 14,840 full-time equivalent international students were enrolled in masters programmes last year, enough to outnumber domestic masters students (10,830) for the first time.

Last year’s figure was 48 percent higher than 2024, two-and-a-half times the previous high of 5705 full-time equivalents in 2020 and well above 2022’s Covid-driven low of 2820.

Nearly all the enrolments came from Asia, especially China (4465) and India (4235), and most (9535) were in universities, with a further 2125 in polytechnics and 3175 in private institutions.

The total was also close to the 16,100 full-time equivalent international students enrolled in bachelors degrees.

Immigration advisers contacted by RNZ said work and residence rules were behind the increase.

Immigration lawyer Alastair McClymont said the rules would become even more favourable for masters graduates in August.

“The view out there now is that, by doing a master’s degree in New Zealand, you can get all of the points that you need to apply for residency,” he said. “The only thing that’s then going to be required is a skilled job after graduating to enable the students to then apply for residency and that’s what’s really driving the demand in these master’s degree courses.”

McClymont said the looming August rule changes had shifted students’ interest away from qualifications in skill-shortage areas and towards any masters degree at all.

“There was a particular interest in things like early childhood teaching and healthcare workers, and those sorts of qualifications, because there were pathways to residency,” he said. “Now that they’re going to have the potential of getting maximum points simply by having any masters degree, then really people are just looking for the cheapest and easiest masters degrees that they can do, so that they can get the postgrad work visa, then look for a skilled job.”

University of Waikato had 555 international EFTS in masters’ programmes in 2019 and 1700 last year. Vice-chancellor Neil Quigley said the “very substantial increase” was the result of a deliberate strategy.

“Pre the pandemic, so up to 2019, most of our international students were in undergraduate programmes, but even by then, we’d seen international demand shifting more towards the masters degrees, so we used the pandemic to bring on a new range of masters programmes that were aimed at the international market,” he said.

Professor Quigley said most courses were focused on pathways to employment, such as digital business and cyber-security.

He said the growth in masters enrolments at Waikato appeared to have levelled off this year, but international undergraduate enrolments were rising, particularly from China.

Quigley said work and residence rights affected international demand for masters courses, but domestic students were also increasingly interested in postgraduate courses.

Recent international masters graduates Alka Chaurasia told RNZ residence and work rights did not drive her decision to study there last year.

“When I started doing the research, I realised that New Zealand has got a very strong reputation for education,” she said. “It offers a multi-cultural environment so, for me, it looked like a good balance of quality education, natural beauty and quality of life.”

Education New Zealand acting chief executive Linda Sissons said three factors contributed to the growth in masters enrolments – a general shift globally toward postgraduate study, the relatively short-duration of masters courses, and the stability of New Zealand’s post-study work rights and residency rules compared with other countries.

“We’re finding, with global research, that prospective students are increasingly prioritising the return on investment for international education, the labour market relevance and flexibility, and a Masters degree is at a high enough level and it’s a brief enough that it can be seen as as leading to employment.”

Dr Sissons said more postgraduate students were good for tertiary institutions and good for the economy, although she sounded a note of caution.

“Masters programmes are relatively short, so enrolments turn over more quickly and can be sensitive to market changes,” she said.

“There’s a there’s an upside and a downside, but I think, in terms of New Zealand being seen as a focus for people who want higher level qualifications and ones that have a good quality reputation, it’s a very positive trend.”

Sissons said PhD enrolments also increased to an all-time high of 4120 full-time students, compared to 3630 domestic PhD students last year.

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

Explainer – The weather is getting colder and the sneezes are getting louder – which means it’s influenza season.

This year’s season has seen warnings it might be more severe thanks to the H3N2 Subclade K or “super-k” flu strain, which saw flu season in places like the UK ending up particularly brutal this year.

“It is difficult to predict the severity of this year’s influenza season in New Zealand, but we do know that vaccination is the most effective means to reduce hospitalisations and severe outcomes from influenza,” said Dr Joan Ingram, medical advisor for the Immunisation Advisory Centre at the University of Auckland.

There has been a disruption of normal seasonal respiratory virus patterns following the Covid-19 pandemic, University of Otago Professor and Head of Department of Paediatrics and Child Health Peter McIntyre recently told RNZ.

“Covid is with us all year round, although more so in the winter, and the way that flu strains work during the year has changed a bit from the predictable winter peak with not much going on in the rest of the year to a lot more unpredictability with late and early seasons.”

The flu vaccine campaign is now underway – here’s what you need to know about it and how ‘super-k’ factors into it.

Why do we need a new vaccine every year?

Influenza changes a little bit every year, and vaccines are modified each year to match prevailing new strains.

“Everyone from 6 months of age, who is eligible for a funded vaccine and those who can afford a flu vaccine if not already funded, should have one,” Ingram said.

More than 1 million influenza vaccines are administered in New Zealand each year.

Typically around 500 people die each year from the flu, Health New Zealand said.

“For those at higher risk of complications from the flu, which is anyone over the age of 65, and particularly those over the age of 75 or 80, then it’s a very good idea to get in right now with your flu vaccine,” McIntyre said.

This year’s goal is to vaccinate 75 percent of the population over 65 years old.

“It would be wonderful if our flu vaccine uptake was higher,” Ingram said.

“All people 65 years and over are eligible for funded flu vaccine, but last year only around 60 percent had one – so cost is not the only barrier.”

New Zealand’s flu season usually runs from May to October, and the immunisation programme runs from 1 April to 31 December.

In both 2024 and 2025, flu cases saw a later than usual peak towards the end of August, the Immunisation Advisory Centre said.

This year’s funded vaccine is Influvac Tetra, which is free for those who meet certain conditions (see below).

There are also three unfunded flu vaccines available – Flucelvax, Fluzone and Fluad. More on those in a minute.

How do you book a flu shot?

You can make an appointment through Book My Vaccine or by ringing 0800 28 29 26 from 8.30am to 5pm Monday through Friday.

You can also contact your GP for a vaccination, and most pharmacies will also be offering the vaccine – check with your local.

Who gets it for free?

The flu vaccine is free for those who are at the highest risk of getting very sick. This includes:

• people aged 65 years and over
• people aged 6 months and over who have a long-term medical condition like diabetes, asthma or a heart condition
• pregnant people
• children aged 4 years and under who have been hospitalised for respiratory illness, or have a history of significant respiratory illness
• people with mental health conditions, including schizophrenia, major depressive disorder, bipolar disorder or schizoaffective disorder
• people who are currently accessing secondary or tertiary mental health and addiction services

Anyone who doesn’t fit into those categories will likely have to pay.

So how much does it cost?

The price for the vaccine is variable, but a check of multiple pharmacies showed it typically runs between $25 to $40 for the funded vaccine Influvac Tetra.

The three unfunded vaccines will cost more – ask your provider for details.

What happens when I get the jab?

You’ll typically be asked to wait for 15 minutes after getting the vaccine to ensure there’s no adverse reactions.

Vaccines can cause mild reactions, like a slight fever or pain where the needle went in.

Serious allergic reactions are rare and should be closely monitored at vaccination sites. They can also be reported online to the Centre for Adverse Reactions Monitoring, CARM.

For those concerned about vaccines, the Health New Zealand flu kit notes that “The flu vaccine has been around for many decades and has a great safety record. The vaccine does not contain live influenza viruses and cannot cause influenza.”

The vaccine doesn’t guarantee you’ll never catch the flu, but it does substantially lower the risk of serious illness or hospitalisation, health authorities say.

The government research organisation PHF Science said that in 2025, those vaccinated had about a 69 percent lower chance of being infected than those unvaccinated.

For now, you’re going to have to just grit your teeth and deal with the needle, but nasal spray flu vaccines are in development and may come here in the near future.

What is this ‘super-k’ influenza strain and why is it a worry?

Subclade K or H3N2 Subclade K is a strain of influenza that “has spread earlier and faster than typical seasonal influenza,” Australia’s science agency CSIRO said.

While it’s led to a more severe flu season in parts of the world, vaccines still work against it.

And New Zealand is fortunate, as vaccines have been changed for our part of the world to better deal with super-k.

“It is expected that all the flu vaccines in use in New Zealand this winter will provide protection against the K variant,” Ingram said.

“One of the strains in each vaccine is expected to provide protection against the K variant and was not included in the northern hemisphere vaccines – so we should have better protection.”

“It’s a good deal better than what they had in the Northern Hemisphere so hopefully that’s going to help us,” McIntyre said.

The super-k is not a new virus, but has undergone mutations in one of its key proteins that affect how it behaves and spreads. CSIRO said “the current best evidence suggests subclade K does not cause more severe disease.”

When it hit the UK last December, it led to record hospitalisations. The NHS’s national medical director called it a “worst-case scenario for this time of year.”

It has already arrived in this part of the world, McIntyre said.

“It turned up actually early in both Australia and New Zealand at the end of last year which was the reason why there was more flu around than would usually be the case in October and November.”

What other flu vaccines are there?

Pharmac funds the Influvac Tetra vaccine for those eligible, but three other flu vaccines are also offered at extra cost. Each is manufactured in a slightly different way.

“Influvac Tetra (funded vaccine) and Fluzone are very similar,” Ingram said, with Influvac containing an extra strain but not one that makes a “meaningful difference” to effectiveness against current strains.

Flucelvax, on the other hand, is a cell-based vaccine using cultured mammalian cells rather than the other, egg-based vaccines that are created in embryonated chicken eggs.

That “can be more effective than egg-based flu vaccines,” Ingram said. “The difference in benefit varies from season to season.”

“Over multiple seasons, Flucelvax was 8 percent more effective than egg-based vaccines. In one Northern Hemisphere season, it reached almost 20 percent more effectiveness in children and adults aged under 65 years.”

The fourth vaccine, Fluad, is free for adults over 65 in Australia, but not in New Zealand, even though McIntyre said there is evidence it’s even more effective for the elderly.

Here, Fluad is only approved for adults over age 50.

“As the name suggests it’s got this added bit in it, which is a thing called an adjuvant, which basically helps kick the immune system along to produce a stronger response,” McIntyre said.

Fluad “provides the greatest additional benefit for older adults aged 75 years and over, and those with multiple health problems,” Ingram said.

As it’s not funded, it will typically run around $50 to get Fluad, McIntyre said.

“In New Zealand, unfortunately, if you want that vaccine … you’ll have to pay for it.”

McIntrye said there are “good arguments” in favour of funding it for over 65s.

Should more vaccines be free?

Cost and access are still factors keeping flu vaccine takeup from being higher.

Ingram said on behalf of the Immunisation Advisory Centre that “we do wish that the flu vaccine was funded for all children under 5 and that older adults could have a funded enhanced vaccine.”

Last year, only 5 percent of children had a flu vaccine despite around 20 percent being eligible for a free vaccine because of health conditions.

“Funding it for all children would improve uptake and reduce sickness, hospitalisations, complications, antibiotic use and transmission in families and communities,” Ingram said.

If you’re making a flu vaccine appointment, it’s worth considering getting other vaccines done too, she said.

“When getting a flu vaccine, it is sensible to also have a dose of the updated Covid-19 vaccine if you are older or have health conditions that will increase your risk of severe Covid-19.”

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

Analysis – Nicola Willis has put her money where her mouth is and reduced her Budget’s operating allowance for a third year running.

For years, the Finance Minister has been relentless in her criticism of the previous minister, Grant Robertson, and his extensive operating allowances – $5.9 billion in 2022 and $4.8b in 2023 – promising to rein in spending and prioritise fiscal discipline.

In her first Budget in 2024 she told reporters in the lock-up that she was “weaning off the addiction to spending” that Robertson had created over six years of a Labour government.

At that year’s Budget, an operating allowance of $3.5b had been forecast, which was ultimately reduced by $300 million to $3.2b.

Last year the slashing was even more aggressive when a forecast $2.4b allowance was chopped in half by her pre-Budget speech to just $1.3b – a reduction of $1.1b.

And on Wednesday the Prime Minister delivered the news for her, telling a Business NZ audience in Auckland that the forecast $2.4b allowance had been nudged down by $300m to $2.1b.

Those operating allowances are tight, but critics will find it difficult to describe them as austerity, especially with the likes of the Taxpayers’ Union arguing the number should be closer to zero.

Singing from that same songsheet traditionally is the ACT Party. When leader David Seymour was asked at Parliament on Wednesday whether he would have liked the cuts to go further, he said his aim would have been a “less than zero” Budget.

“Speaking as the ACT leader, yeah, I think we need to be a lot tougher on reducing the deficit and reducing government spending, but also speaking as the Deputy Prime Minister, I’m proud to be part of this government and I know that we wouldn’t have made the level of savings we have [without ACT].”

Seymour said the savings had ACT’s fingerprints all over them and his ministers were the ones at the Cabinet table putting pressure on the coalition to make “careful use of taxpayer money”.

Willis told RNZ on Wednesday that if it weren’t for the fuel crisis her operating allowance reduction would be larger and more in tune with the cuts seen last year.

“It is the case that without the fuel crisis, yes, we may have been able to have an even tighter allowance, but my view is that we have achieved a great deal by reducing our forecast operating allowance, ensuring that we’re building up buffers for the future, keeping New Zealand financially secure.”

The buffers are needed more than ever given the increasingly volatile world countries are operating in, where in the space of a few weeks a US-Israel attack on Iran can shoot petrol prices at the pump in New Zealand beyond $3 a litre.

That’s required unexpected support packages that are already chewing up some of the operating allowance put aside for this year’s Budget to the tune of hundreds of millions of dollars.

While the operating allowance restraint speaks direct to Willis’ narrative over the past two-and-a-half years, this year’s Budget is accommodating a $2.2b increase on what was forecast for capital expenditure – up from $3.5b to $5.7b.

Christopher Luxon addressed that increase, saying “the recent crisis has acted as a timely reminder that significant levels of capital investment will be required in the coming years”.

But he also signalled it didn’t reflect a “permanently higher rate of borrowing” and that in the years ahead a balance would be found between saving and borrowing.

Seymour also defended the increased capital spend saying it was to deal with “things that are yet to be announced, that I think are significant and timely investment”, adding that in later years in the fiscal cycle the capital expenditure would reduce.

While Budgets are drastically impacted by global and national events and disasters – think the Christchurch earthquakes, the Covid-19 pandemic, or the ongoing fuel crisis – they’re also shaped by individual government’s political decisions.

Willis will be commended by many for slashing the operating allowances at each of her Budgets to date, but remains open to criticism from other quarters about both what the coalition cut and continues to prioritise spending on.

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

Staff at Wellington Hospital say they could do with a hundred more beds, but the year-old High Dependency Unit has gone some way to easing the bottleneck.

The unit has 12 beds for people too sick for the ward, but too well for intensive care.

On this particular Tuesday, nurse manager Stephen James takes us past the family room, staff office, sleuce room, and a desk behind which a number of screens show patients’ vitals in real-time, making it easy for staff to monitor every patient from a central location.

The rooms are light and airy, with windows – unlike intensive care – and it is mostly quiet, aside from the steady beep of machines and the sound of nurses discussing medication at the foot of a patient’s bed.

Many of the processes mirror those used in the ICU, including paper charting.

“This is where we’re not electronic,” James said. “The transition of the technology is still so expensive we’re just not ready to make that yet.”

The staff monitoring patients are looking for trends – someone getting worse will head back to ICU, or if they are getting better, to a ward.

That meant patients were able to recover somewhere a bit quieter, while still being monitored closely, and beds on wards and ICU were freed up, improving patient flow through the hospital.

“Sometimes we would be forced to push patients to the ward sooner than we were happy to,” he said. “And we have statistics and data that we analyse where we see patients bounce back from the ward. So if we transferred somebody in the middle of the night, it’s not great to come in the morning and see that they’re needing to come back.”

James explained planned surgeries would be cancelled if acute patients demanded the bed space, so making more beds available for the sickest patients meant planned surgeries went ahead more often.

But when it came to beds, they could always use more.

“I think you would say we need another 100 beds in every hospital, and that we would fill them. And it’s because there’s so much we can do for people.”

While work was underway at a national level to understand how care in the home could add capacity to the system, the sickest people still needed to be in hospital.

“We’re very much in the middle of it all in the acute setting, so we can be a bottleneck,” he said.

The unit was built following the Covid pandemic, at a cost of $17.3 million, financed through annual hospital depreciation funding.

It was part of a government push in 2024 to bolster the country’s preparedness in the event of another pandemic.

“We were very underdone internationally in our critical-beds-per-100,000-population, and we’ve made great strides in the last several years to improve that, which these 12 beds are part of,” James said.

Winter illness, too, increased demand every year.

Health minister Simeon Brown announced a winter funding boost of $25m earlier this year to increase capacity and staffing nationwide.

Dr Paul Young, intensive care specialist and co-clinical leader in the ICU, said it would not increase the HDU’s numbers, as the unit was at or near capacity year-round.

He said the ICU had 24 beds, and along with the 12 in the HDU, the units required a combined staff of between 250 and 300 nurses, 14 intensive care specialists, and 28 registrars.

Another four were being added to the ICU currently.

“The entire hospital doesn’t have enough beds, and beds need to have people in them,” Young said.

But winter would likely increase the acuity of the patients.

“We’ll probably basically stay as busy as we are now, just looking after slightly different people.”

Variability was a hallmark of the job. On this particular day, Dr Young would work his shift and then remain on-call overnight, treating anyone from trauma patients, to those recovering from major surgery or with acute medical conditions.

“Intensive care medicine is the triangle you get if you chop the top off all the other triangles and make a new triangle,” Young said. “The kind of things that we see from day-to-day are really varied.”

The one thing they had in common was that they were among the sickest people in the hospital – and for them, having one of those 12 beds could make all the difference.

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

As part of the Government’s work to grow the international education sector, new funding for a dedicated support function will help build sector capability and support schools to attract and manage international students, Education Minister Erica Stanford says.

“Through the Govenrment’s Going for Growth plan, we are focused on doubling the sector’s value to $7.2 billion by 2034. We are already well on our way with enrolments growing 11 percent in 2025,” Ms Stanford says.

“As part of that, we’re helping to ensure that schools have the resources they need. Today’s commitment will see specialist support provided by a tendered organisation with deep knowledge and experience in school-based international education.

“This will support schools with marketing, resourcing, finding homestays, and with resources to understand their obligations to ensure student wellbeing and safety.

“The sector has already made strong progress in 2025, with school enrolments continuing to recover toward pre-pandemic levels. This investment will help schools build on that momentum and grow their international programmes with confidence.”

Ms Stanford says that all schools who choose to participate will be able to benefit this from this support, including those that not yet enrolling international students.

“International education is a large contributor to New Zealand’s economy. Enabling schools to support more international students will allow this economic growth to continue in a way that is high quality and sustainable.”

The tender will be available on the Government Electronic Tender Service (GETS) by the end of June 2026.

MIL OSI

Prime Minister Christopher Luxon has promised “careful” immigration policy and signalled more capital spending than expected in an annual pre-Budget speech,

Speaking about the need for social cohesion, Luxon highlighted his own electorate of Botany as “more diverse than most”, saying many of Chinese, Korean, Malaysian and Indian New Zealanders were being “unfairly and unreasonably vilified”.

He said during the Covid-19 pandemic, ministers had “too often prioritised their own political interests over the interest of the public”, and the media “determined to flatter New Zealand’s relative performance, also failed”.

“Since then, failed immigration policies in Europe and North America have also stoked a politics of division online. Despite prudent policies and the natural advantages of geography, immigration now seems to be an emerging political issue in New Zealand, too,” he said, in what could be seen as a swipe at New Zealand First’s criticisms of the India free trade deal.

He pointed to the government’s moves to tighten immigration law and said National would be watching closely.

“And you should expect to see careful policy on immigration from National as we get closer to the election … when it comes to immigration, when faced with a choice between social stability and your bottom line, I will choose the former every single time.”

Pointing to the United States “now focusing more exclusively on its own view of its own interests – America first”, and Russia having made “its brutal intentions clear in Europe” and China “expanding its influence”, Luxon painted a now-familiar picture of an erosion of the international rule of law.

“When you turn on the news at night and see alliances straining, trade wars flaring and the rules being rewritten by the powerful, it is only natural to feel as though the ground is shifting beneath you,” he said, before offering an optimistic observation.

“We have faced similar challenges before, and we have overcome them.”

He hearkened back to world wars, giving a message of hope in an increasingly volatile world.

“The outcome was not inevitable. It was not guaranteed. People were frightened, and they were right to be frightened,” he said. “They didn’t just win a war. They built the peace that followed.”

Also addressing a need for cooperation with like-minded partners on defence and trade, he also drew attention to the need for energy independence.

“On too many occasions, private capital, eager to bolster domestic energy production, has been pushed to the sidelines by overzealous planners and politicians in recent years,” he said.

“The reality is that when faced with energy shock after energy shock, it’s very hard to justify backing the skink over the solar farm.”

He pointed to the government’s responses to the fuel crisis, while noting “more action is required”.

That could be delivered through changes to Budget allowances – with less operational spending at $2.1b, down from $2.4b; but more capital spending at $5.7b.

“The recent crisis has acted as a timely reminder that significant levels of capital investment will be required in the coming years,” Luxon said.

“That doesn’t reflect a permanently higher rate of borrowing – we’ll need to get the balance right in the years ahead, as we rebuild our fiscal buffers … The truth is that as a country we don’t save nearly enough, and rely too much on money borrowed from overseas to support our lifestyles. That must change.”

Finance Minister Nicola Willis will deliver her third Budget on 28 May in what are constrained fiscal times.

The conflict in Iran and the global fuel crisis it has triggered required a certain level of re-forecasting and reprioritising of the Budget in recent months.

There were no pre-Budget announcements expected in Christopher Luxon’s speech to a Business NZ audience on Wednesday, though some are due to trickle out from other ministers in the coming days.

The only policy announced to date is the scrapping of the third year of fees-free tertiary study.

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

The rising cost of fuel appears to keeping more drivers off the road, with light traffic down 1.7 percent last month, though still up on the year earlier by 2.4 percent.

The latest ANZ Truckometer shows the heavy traffic index – a real-time measure of economic activity – was holding up a bit better with a drop of 1.2 percent in April over March, but was still trending higher with a 2.6 percent year-on-year rise.

ANZ chief economist Sharon Zollner said the light traffic index tends to be a predictor of economic activity six months ahead, though the fuel crisis had created some uncertainty about the outlook.

“Higher fuel prices is bad for activity more generally. It’s not just about driving less, it’s about people shopping less as well,” she said.

“We can certainly see that in our card spending pack, and we’ve also seen a sharp drop in business and consumer confidence. So it’s obviously going to reduce driving, but it’s reducing broader economic activity as well,” she said.

Zollner said the heavy traffic was still holding up quite well, with support from the agriculture, construction and manufacturing sectors.

However, she said the activity could be a sign of some stockpiling of critical goods, as businesses may be concerned about the potential for supply chain disruptions, as seen during the Covid pandemic.

“There’s a lot of talk about how this isn’t just fuel, it’s plastics and other chemical inputs as well.

“So maybe there’s a bit of front loading going on, but the anecdote would certainly suggest that the economy is taking quite a hit in terms of activity. So it wouldn’t be surprising to see that start to turn-up in the heavy data. But for now, it’s holding up.”

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

The number of New Zealand students studying on Massey Univeristy’s campuses is rising after halving over the past 10 years, it says.

Meanwhile, a union leader says the university’s Albany, Palmerston North and Wellington sites feel like ghost towns.

Official figures showed Massey had 12,345 equivalent full-time domestic students in 2025 including 4770 on-campus and 7575 studying remotely.

The number studying remotely was one of the highest on record and nearly 2000 more than in 2016, but the on-campus figure was the lowest point in a steady decline from a high of 9705 in 2016.

The university also had 4040 full-time equivalent international students giving it a total of 16,385 EFTS last year – slightly more than in the previous two years but about 2500 fewer than in the years prior to the start of the Covid-19 pandemic in 2020.

The university’s annual report showed its Albany and Palmerston North campuses had nearly 2900 full-time equivalent students each last year and Wellington had 1997.

The university recorded a financial surplus for the year and the report said it had reduced its floor space by 23 percent since 2023.

Tertiary Education Union Massey branch co-chair, Te Awatea Ward, said staff were very aware of the decline in on-campus enrolments.

“They’ve noticed. Particularly last year and the year before there was a great concern at how empty our campuses were, particularly the Albany campus,” she said.

“This year staff have got very excited from the orientation day and seeing more students on campus… that lasts for about two or three days, and then it goes back to a ghost town.”

She said there were a lot of theories about what was to blame.

Ward said Massey had emphasised its online courses and staff noticed the contrast with Canterbury University, where domestic enrolments were well up.

“If you want students on campus, you have to provide courses on campus. If you’re wanting to have the maximum number of students qualify or complete with the least amount of financial input you have online courses,” she said.

“There’s definitely a competition for students between the eight universities.”

Ministry of Education figures showed nationally the number of on-campus students grew four percent last year to 104,420, slightly more than in 2016.

There were 13,905 full-time equivalent domestic students studying remotely, fewer than in recent years but 60 percent more than in 2016.

In a statement, Massey University said its drop in on-campus domestic students “reflects a combination of sector-wide shifts and changes in student behaviour – particularly over the pandemic when campus-based students shifted online (which has consistently grown), as well as a move back to campus learning at a time when our portfolio was changing”.

It said the university was “moving into a growth phase” by refreshing existing programmes and introducing new ones.

“We are already seeing positive indicators in our pipeline with new domestic on-campus learners up by 4.3 percent year on year, particularly in the Manawatū,” it said.

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

The number of New Zealand students studying on Massey Univeristy’s campuses is rising after halving over the past 10 years, it says.

Meanwhile, a union leader says the university’s Albany, Palmerston North and Wellington sites feel like ghost towns.

Official figures showed Massey had 12,345 equivalent full-time domestic students in 2025 including 4770 on-campus and 7575 studying remotely.

The number studying remotely was one of the highest on record and nearly 2000 more than in 2016, but the on-campus figure was the lowest point in a steady decline from a high of 9705 in 2016.

The university also had 4040 full-time equivalent international students giving it a total of 16,385 EFTS last year – slightly more than in the previous two years but about 2500 fewer than in the years prior to the start of the Covid-19 pandemic in 2020.

The university’s annual report showed its Albany and Palmerston North campuses had nearly 2900 full-time equivalent students each last year and Wellington had 1997.

The university recorded a financial surplus for the year and the report said it had reduced its floor space by 23 percent since 2023.

Tertiary Education Union Massey branch co-chair, Te Awatea Ward, said staff were very aware of the decline in on-campus enrolments.

“They’ve noticed. Particularly last year and the year before there was a great concern at how empty our campuses were, particularly the Albany campus,” she said.

“This year staff have got very excited from the orientation day and seeing more students on campus… that lasts for about two or three days, and then it goes back to a ghost town.”

She said there were a lot of theories about what was to blame.

Ward said Massey had emphasised its online courses and staff noticed the contrast with Canterbury University, where domestic enrolments were well up.

“If you want students on campus, you have to provide courses on campus. If you’re wanting to have the maximum number of students qualify or complete with the least amount of financial input you have online courses,” she said.

“There’s definitely a competition for students between the eight universities.”

Ministry of Education figures showed nationally the number of on-campus students grew four percent last year to 104,420, slightly more than in 2016.

There were 13,905 full-time equivalent domestic students studying remotely, fewer than in recent years but 60 percent more than in 2016.

In a statement, Massey University said its drop in on-campus domestic students “reflects a combination of sector-wide shifts and changes in student behaviour – particularly over the pandemic when campus-based students shifted online (which has consistently grown), as well as a move back to campus learning at a time when our portfolio was changing”.

It said the university was “moving into a growth phase” by refreshing existing programmes and introducing new ones.

“We are already seeing positive indicators in our pipeline with new domestic on-campus learners up by 4.3 percent year on year, particularly in the Manawatū,” it said.

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Explainer – The internet is filling with panic about hantavirus, but is it really as dangerous as Covid-19? Here’s what we know so far.

Three deaths and several infections on a cruise ship off South America has raised alarms for many, in a world where some are still mentally and physically recovering from the Covid-19 pandemic.

“This is not going to be another coronavirus pandemic, from all we know about this agent,” said epidemiologist Michael Baker – a man who knows his pandemics and was one of New Zealand’s most prominent experts during Covid-19.

“This is not another Covid,” World Health Organisation Director-General Dr Tedros Adhanom Ghebreyesus has also said. “The current public health risk from hantavirus remains low.”

What’s happening with this outbreak? Could it come to New Zealand?

Three people have died and at least six others appear to be infected after an outbreak of hantavirus on the cruise ship MV Hondius, which was travelling around South America last month.

Passengers on the cruise ship have been evacuated in the Canary Islands. One New Zealander has been confirmed to be among them.

That person will eventually return home.

The Ministry of Foreign Affairs and Trade confirmed that “we are providing consular assistance to a New Zealander on board the MV Hondius. This will include repatriation assistance.”

MFAT indicated no further information on the New Zealander would be provided for privacy reasons.

“We currently have no reason to believe that any New Zealanders have contracted hantavirus,” said Dr Richard Jaine, deputy director of public health for the Ministry of Health.

“However, it is important that we respond appropriately and take all possible steps to manage any potential risk to individuals or the public.”

The person may likely face precautions on their return to New Zealand.

“Depending on the risk it is possible this may also include a period of quarantine for any exposed individual on their return to New Zealand.”

What is a hantavirus?

Hantavirus is typically spread by the inhalation of contaminated rodent droppings.

This particular strain, the Andes virus, is endemic to Argentina, and is the only strain of hantavirus that has been known to have human to human transmission – typically through very close contact such as sharing a bed or food.

Its symptoms typically include fever, headache, muscle aches and gastrointestinal symptoms.

Hantavirus cardiopulmonary syndrome (HCPS), a severe respiratory illness that can develop, has a case fatality rate up to 50 percent. It’s the same thing that killed Betsy Arakawa, the wife of the late actor Gene Hackman, last year.

“The (hantavirus) in the Americas are particularly dangerous because they have a fatality rate of about 40 percent,” Baker told RNZ Afternoons. “They’re very unpleasant infections if you get them.”

No vaccines or specific treatments exist for hantavirus, but quick hospital care can often prevent symptoms turning deadly.

Hantaviruses are found in small mammals such as rats, mice, voles, shrews and lemmings, but no New Zealand rodents carry these viruses, University of Auckland associate professor of infectious diseases Dr Mark Thomas said.

“The only way a New Zealand resident could become unwell with a hantavirus infection would be as the result of travel to a country where the virus is present.”

WHO has said the investigations so far suggest possible exposure to rodents during bird watching activities.

“A Dutch couple, who unfortunately have now died, probably got infected in Argentina, and the other thing that was very bad luck was that the Andean species of this hantavirus is the only one that has occasionally caused person to person transmission,” Baker said.

How is it transmitted?

Hantavirus is contracted from direct contact with urine, droppings or saliva of infected rodents, or rarely through rodent bites.

But the Andes variant has shown some ability to move between humans in certain conditions.

“Andes virus has demonstrated limited human-to-human transmission in previous outbreaks, typically occurring among close contacts and within household settings, generally requiring prolonged close exposure,” WHO’s database states.

However, Covid-19 is a far more efficient airborne respiratory virus that spreads much easier than hantavirus does.

Human-to-human transmission of hantavirus is rare and requires prolonged and direct exposure to a case, Jaine said.

“This isn’t like the flu or Covid-19.”

Cruise ships have often been incubators for diseases and outbreaks.

Baker said the combination of the Andes hantavirus and cramped quarters on board a ship have made for a “really bad sequence of events”.

“The ship environment presents an increased risk due to close living quarters, shared indoor spaces, prolonged exposure, and frequent interpersonal interactions, all of which may facilitate transmission,” WHO wrote.

Health authorities in several countries have also been tracking passengers who had already disembarked and anyone who may have come into contact with them.

The lengthy incubation time of the virus – as long as eight weeks – could also complicate efforts to contain the disease.

So is this really going to be Covid-19 part 2?

The general consensus for now is that while it’s worrying and health authorities are paying close attention, this isn’t the same kind of quick-spreading disease Covid was.

“It has all those echoes from a very tough period in our history,” Back said, with an infection that’s come from an animal to humans. But it’s not the same kind of illness.

“It’s very different. They’re usually very hard to catch. There are several hundred cases a year but they are linked to rodents.”

The images of masked medical workers and return of contract tracing is bringing back memories of the pandemic for many people. “Covid PTSD” is a real thing, with people anxious about a return to lockdowns and cracking dad jokes on social media about stocking up on toilet paper.

Is there any danger of it turning into a global pandemic?

So far, the advice is not to panic.

“This is not the start of an epidemic. This is not the start of a pandemic,” Dr Maria Van Kerkhove, director of WHO’s Department of Epidemic and Pandemic Management, said at a press conference.

“I think it’s very important that listeners are not overly concerned about this particular outbreak … It is being very well managed,” Baker said.

Viruses do mutate, so health authorities are taking the hantavirus situation very seriously, Baker said.

“They’ll certainly be looking at it to see if it has changed in any way.”

For the passengers on the ship, “precautions being taken are very intense,” he said.

“Anyone being evacuated is going to be treated as if they are quite infectious.”

WHO’s emergency alert and response director Abdi Rahman Mahamud told AFP he believed any further spread would be “a limited outbreak” if “public health measures are implemented and solidarity shown across all countries.”

WHO has said it advises against implementing any travel or trade restrictions based on current information about the hantavirus.

The majority of the approximately 150 passengers and crew on board the cruise ship appear not to have contracted the virus.

“If it was highly infectious it wouldn’t just be maybe half a dozen people infected on this ship,” Baker said.

“You’d see a high proportion of people on board showing some evidence of infection.”

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Police say alcohol is fuelling a rise in bad behaviour by rowdy teenagers in Nelson and they’ve increased patrols over the weekends to deal with the problem.

Police officers are worried the behaviour will lead to violence and the problem has co-incided with the closure of a Nelson charitable trust that helps kids stay out of trouble.

Nelson Senior Sergeant Byron Reid said police noticed the increase in youth on the streets about a month ago, between the hours of 8pm-4am, and that often, they were drunk.

“Generally, the age is around 13-18 and they are not in big packs,” he said. “They are individuals, or they might be in groups of three to four or more.

“We are talking about 20-odd children in regular contact with police or regularly in the CBD during those hours over the weekend.

He said seeing young teens on the street late at night, intoxicated, was worrying.

Reid said violence often occurred when people were overly intoxicated.

“It’s always a concern, when you’ve got youth around alcohol. You might not have intended to go out at night to make bad decisions, but once the alcohol comes on board, bad decisions can be made.

“We just don’t want any of our local community injured or affected by this.”

He said police had identified some of the young people’s famililes and they were working with them to prevent them being out on the streets late at night.

“Our rangatahi, we want to make sure they’re safe and not put in situations that can cause them harm.”

He said police weren’t sure how the youth were getting alcohol and they had conducted an investigation in Nelson, which found bottle shops and supermarkets selling alcohol to minors on four occasions. They had been referred to the Alcohol Regulatory & Licensing Authority.

Closure of youth-focused service

Whanake Youth co-founder Lee-ann O’Brien said the health and wellbeing service was started to provide holistic support for vulnerable and marginalised young people into adulthood.

The charitable trust closed last month after nine years, because of financial difficulties.

It had a drop-in space called ‘The Lounge’ for 12-24 year olds, behind the Stoke Memorial Hall, and offered employment opportunities through SYP Cafe, along with school-based services and community programmes.

O’Brien said she worried about where the young people who used the service and spent time at The Lounge would go.

“They said, ‘We come here, because it’s safe… we come here, because it’s fun to do… we come here, because I can’t go home or can’t go to my friend’s place’.

“For me, the concern is, if they’re not here, then where are they and what are they doing?”

O’Brien said lots of services supported young people, but didn’t focus on them and Whanake Youth’s aim was to take into account whatever a young person needed, working alongside family and education providers, including those who had been excluded from mainstream education.

“There is no other service that looks at that bigger picture, with that particular young person in mind and follows their journey.”

She said she had noticed an increase in 10-12-year-olds causing trouble a couple of years ago and the reasons for the behaviour were not clear, but post-pandemic, some young people struggled with resilience.

“We’d seen some young people consuming alcohol, which we hadn’t seen for a really long time, and presenting drunk during the daytime and leaving school to steal stuff.”

She said school and home were places of connection for youth, but they didn’t necessarily feel that, so it was important they felt they had somewhere they belonged.

“I worry, particularly for the young people that we would work with, who seem to have gaps in that ability to feel connected.

“I worry that some of their decision-making may not be so good – what young person makes a good decision anyway? – but then who picks that up and awhis [embraces] them along in that journey?

“How do we restore that relationship with that person? How do we do differently next time?”

O’Brien said she was having conversations with Nelson Bays Primary Health, after the closure of Whanake Youth, to ensure there wasn’t a long break between services.

“We weren’t the whole jigsaw, but we were part of it, and now it won’t be a complete picture.”

‘Nip it in the bud’

Nelson Mayor Nick Smith said he was pleased police were increasing patrols, given the problems, but said that parents needed to do their bit too.

“I’m not sure what has led to the increasing numbers of these quite young youth congregating in our central city at the early hours of the morning,” he said. “What I do know is I’ve had multiple reports of it.”

Smith said he had heard from hospitality business-owners, who were used to dealing with 16 and 17-year-olds trying to get into bars and nightclubs, but that they were now seeing 13 and 14-year-olds trying to get in.

He said teen drinking was problematic and he was worried someone would get hurt.

“That’s where we need to nip it in the bud to make sure that we’ve got age-appropriate curfews for our young people and asking our parents, particularly of those 13, 14, 15-year-olds, to work with police, so that we’re not going to end up with a young person being injured or harmed in our CBD.”

Smith said the closure of Whanake Youth was disappointing, but there was plenty of effort through sports clubs, theatre, music, cadets and other community organisations to support young people, and he was open-minded on whether more could be done.

“If there is more that we can do so that our city is providing the opportunities for our young people to be able to enjoy themselves and be able to develop without this high risk behaviour that’s occurring in our CBD, we do need to think about that.

“It’s just making sure that those social services work. I haven’t heard they’re not, I want to give the police the community support.

“If we find that there are gaps, then we need to see how we fill those.”

Police said the increased police presence in Nelson’s CBD would continue for as long as it was needed.

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Led by Te Herenga Waka Centre for Justice Innovation, this research project will examine when and how remote participation should be used in criminal court proceedings, with the goal of supporting fairer and more effective justice processes.

The use of remote participation in courts refers to where one or more participants take part in court proceedings using audio-visual link (AVL) or audio technology, rather than appearing in person. Since the Covid-19 pandemic, remote appearances have become more common in courts around the world, but there is a need for more evidence about the impact on vulnerable defendants, victims, and the integrity of court processes.

“There are many barriers to participation in the court and those who are neurodivergent or have disabilities often require special accommodations. We need to know whether remote participation is a help or a hindrance for these people and determine how we know who is who, and who needs what to enable effective participation,” says retired judge John Walker, a co-director of the Centre, and project co-lead.

“There are many benefits of remote participation by AVL but we hope our research will enable decisions to be made which balance these benefits against the right to fully participate in court” he said.

The project, which is supported through a Michael and Suzanne Borrin Foundation grant with additional Ministry of Justice funding, will build an evidence base through empirical research with court users and stakeholders, along with a review of international experiences.

Research from this project aims to ensure that technology enhances people’s experiences of court systems and proceedings. “We will focus initially on the effects of remote participation on defendants, especially those who are neurodivergent, have mental health needs, or have intellectual disabilities. We will also examine the experiences of victims, impacts on Māori and Pasifika court participants, and consider the impact on those in custody, including the management of transitions from custodial settings to courtrooms via AV link,” explains John Walker.

“We anticipate that the project findings will contribute to government and judicial decision-making regarding the scope of remote participation, such as the types of proceedings, rights protections, and procedures necessary now and in future,” says project co-lead, Professor Yvette Tinsley.

As an independent voice on justice issues, Te Herenga Waka’s Centre for Justice Innovation is well placed to lead this work. The Centre, based at Te Kauhanganui Tātai Ture—Faculty of Law at Te Herenga Waka—Victoria University of Wellington, brings together multidisciplinary expertise to support change in the way that justice is delivered in Aotearoa New Zealand.

The project will be led by the Centre’s co-directors, Professor Yvette Tinsley, John Walker, and conflict resolution practitioner, Everard Halbert (Rongowhakaata, Ngāti Tama, Ngāti Whiti), with support from colleagues across the Faculty of Law and wider university.

The Centre held a valuable forum in March, bringing together representatives from the disability and neurodivergence spaces, justice sector agencies, and the judiciary, for a conversation about the challenges and benefits of utilising remote participation for defendants facing barriers to participation.

“The forum raised issues that will guide us in the areas we need to concentrate on in our research”, says John Walker.

A summary report of this forum is now available on the Te Herenga Waka Centre for Justice Innovation website and is the first of a series of publications from the project.

“We are grateful for our funders’ support of this project, and for the Michael and Suzanne Borrin Foundation’s ongoing support of the Te Herenga Waka Centre for Justice Innovation’s work in addressing cross-cutting justice issues,” says Professor Tinsley.

Website: https://www.wgtn.ac.nz/cjinz

Direct Link to Remote Participation Project: https://www.wgtn.ac.nz/cjinz/research/remote-participation-criminal-proceedings

MIL OSI

A $1.26 half-year billion profit for ANZ. A $545 million half-year for Westpac. A $494m result for BNZ.

As New Zealand’s economy reels from one hit to the next, some commentators have asked whether the run of recent profits for banks show they are one of the few businesses that can turn a healthy profit no matter what.

David Cunningham, chief executive of Squirrel and former chief executive of The Co-Operative Bank, said it was fair to suggest that banks were generally able to make money regardless of the wider business environment.

“Imagine if a bank did nothing for a year, stopped lending, stopped doing anything for a year, they’d still make 90 percent of the profit.

“Every year, over 150 or 200 years for many banks, they build up an annuity stream and every year they’re topping that up. The banking sector will typically grow at around the nominal GDP rate. If you think of inflation at 3 percent and real growth at 2, so nominal GDP at 5, that’s pretty much what you’d expect banks to achieve consistently over time unless they’re in a big cost-cutting mode or in a high-growth sort of phase.”

He said there would be times when credit provisions and credit write-offs could affect the reported profits but it did not necessarily mean they lost money.

Many banks set aside large loan loss provisions heading into the Covid-19 pandemic, which then were reversed out.

“They’re providing against the risk that in future they will lose the money… [but] there’s a great saying, the only thing worse than a profitable bank is an unprofitable one.”

He said most customers would be most concerned that banks were supporting investment in the economy and helping people when they needed loans for things like buying houses.

“The question in New Zealand is, are they for a very low-risk business? I mean, it’s almost utility-like. Utilities tend to have predictable, long-run, fairly stable earnings. So is a return on equity sort of near a 13 percent, 14 percent for some of them fair, or, you know, is a return nearer 10 percent like the overall of yield of banks in Australia fairer?”

But Claire Matthews, a banking expert at Massey University, said it was not true that banks were unaffected by wider forces.

She noted Westpac’s result said its impairment provisions were due to worsening economic conditions and margin compression as the official cash rate dropped.

BNZ’s profit was down 38 percent, although largely because of a change in the way it accounts for software spending.

“The banks have managed not to lose money in recent recessions, which reflects careful financial management and the fact that we haven’t had a really substantial downturn. As I’ve said in the past, we don’t actually want the banks to make losses, but they do feel the impact of economic conditions. It is also worth remembering that they are usually affected later by economic downturns, because it takes time to work through to the banks.’

Generate investment specialist Greg Smith said earnings were sensitive in a nuanced way.

“They can generate profits through the cycle, but recent results from ANZ, NAB and Westpac show earnings are clearly being shaped by slower growth, higher bad debts, intense competition and the impact of higher interest rates. The Middle East is a factor.

“They can perform well early in a rate tightening cycle because they typically reprice mortgage rates quickly, while deposit rates adjust more slowly, which leads to a temporary expansion in net interest margins. That dynamic helped support profitability over the past couple of years.

“However, what we’re seeing now across ANZ, NAB and Westpac is the other side of that cycle starting to dominate. Higher rates are now feeding through to customers, with banks lifting provisions for bad debts and flagging stress in parts of the economy. Credit growth is slowing, with businesses and households pulling back. Competition for deposits and mortgages is intensifying, putting pressure back on margins. Profits remain high in absolute terms, but earnings growth is limited or declining.”

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LOS ANGELES, US – Newsaktuell – 7 May 2026 – The newly released 2026 Berggruen Governance Index (BGI) paints a mixed picture of global governance heading into a future of mounting shocks, finding widespread gains in public-goods provision from 2000 to 2023 even as democratic accountability edged down and state capacity showed little overall improvement.

The BGI, presented Wednesday by an international group of governance scholars, analyses measurable benchmarks of democratic accountability across 145 countries.

On a 100-point scale, the global score for democratic accountability slipped slightly from 65 in 2000 to 64 in 2023, the most recent data used in the project. The wave of democratisation observed in the closing decades of the last century has stalled in the last 15 years. Democratic accountability fell in 54 countries while it improved in 48 countries.

Yet the BGI — a collaborative project of the Luskin School of Public Affairs at the University of California, Los Angeles (UCLA), Berlin’s Hertie School and the Berggruen Institute, a think tank headquartered in Los Angeles — captures remarkably widespread growth in provision of public goods.

Encompassing healthcare, education, infrastructure, environmental sustainability and conditions to foster employment and rising prosperity, public goods improved in 135 of the countries studied, while declining slightly in just four. The global average jumped from 58 to 69 points from 2000 to 2023.

The third component of what the BGI authors refer to as the “governance triangle” is state capacity, defined as the ability to tax, borrow and spend, control territory, operate scrupulous, competent bureaucracies and administer predictable rule of law. The index finds the global average ticking up from 48 to 49 points; 56 countries had increased state capacity while 57 declined.

“What does it tell us about the world ahead?” Prof. Helmut K. Anheier, a Luskin School sociologist and BGI principal investigator, asked during the public release of the 2026 BGI on the UCLA campus.

“Countries are not really improving in their governance performance in significant ways. … We’re not really having forward-looking investment in governance capacity. There is considerable inertia.”

The largest improvements across all three BGI components occurred in Gambia, which the report groups with “low-capacity developing states.” These states score low across the board, particularly in the provision of public goods. This cluster constitutes the poorest countries with the least developed economies, which face the most serious challenges.

“They have the greatest exposure to likely future crises, whether it’s global warming, whether it’s a new pandemic, whether it’s another financial crisis, whether it’s the impact of AI,” Anheier said. “And they have the least capacity to respond to it.”

Bhutan, Georgia, Iraq and Tunisia — which make up the remaining top five countries with the largest improvements in the BGI — are classified as “capacity-constrained states.” They tend to be middle-income with struggling democracies. These countries score higher across the board than the low-capacity developing states, but their state capacity tends to lag compared to public goods and democratic accountability.

The capacity-constrained states risk falling into “a cycle that erodes the institutions they have built,” Anheier said.

“Consolidated democratic states”, a cluster of most of the world’s richest countries, which score highly in all three BGI components, have to confront domestic complacency. Further, in the United States and some others, “political dysfunction” is leaving mounting problems unaddressed and risking erosion of state capacity, Anheier said.

At the other end of the spectrum, the country with the farthest fall on the BGI since 2000 is Nicaragua. Second from last is Venezuela, followed by Hong Kong, Hungary and Turkey. The rest of the bottom 10 are Russia, Iran, Poland, El Salvador and Belarus.

Since 2023, which is the last year of data available for the study, Poland and Hungary have both seen government changes via election, despite serious democratic backsliding. Both had fallen out of the group of “consolidated democratic states” by 2023 and moved into the capacity constrained cluster.

The other eight countries at the bottom of the list are all places that once had some semblance of competitive elections, but by now have little or no remaining pretense of democracy. They are grouped by the authors among the “authoritarian and hybrid states”, which have by far the lowest democratic accountability but outperform even some struggling democracies in delivering public goods.

These regimes have tended toward faster economic growth in the period observed. But that seeming prosperity, typically fueled by extractive industries or overreliance on exports, masks “serious institutional weaknesses in these countries, including divided elites,” Anheier said.

Relatively few countries — 21 of the 145 — changed enough for better or worse to be classified in a new group by the end of the 23-year study period.

“Movement between them is rare, but this is largely what we should expect,” said Stella Ghervas, a UCLA historian on a panel of experts who discussed the BGI findings Wednesday. “Government systems are not created in a moment. They evolve over long periods of time.”

Local conditions shaping governance in each country can rarely be quickly reset through political will or even external shocks, Joseph C. Saraceno, a Luskin School data scientist and BGI co-author, said Wednesday.

“Despite all the talk of major transformations happening in global affairs, the underlying configuration of governance simply doesn’t appear to change very much,” Saraceno said. “We use the term inertia to describe this reoccurring pattern. In other words, the structures of global governance are resistant to movement as the conditions beneath them are quite sticky: political economies, demographics, resource endowments. These are deeply layered, and they push each country toward the world that it already inhabits.”

But the challenges lurking around the world may not wait for the slow and difficult processes of political change and development to catch up.

“With the few exceptions of those countries in the consolidated democratic world,” Anheier said, “the great majority of the countries in the world is ill-prepared for the future.”

The full report, ‘ 2026 Berggruen Governance Index – The Four Worlds of Governance’, can be viewed and downloaded from the website of the UCLA’s Luskin School.

Frank Fuhrig, DNA

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When artificial intelligence (AI) comes up in Australian enterprise IT discussions, the focus tends to centre on generative tools, intelligent copilots, and innovation at the edges of the business. However, some of the most concrete and measurable uses of AI are emerging deep in enterprise operational workflows, such as corporate travel management.

According to Jonathan Beeby, managing director, SAP Concur Australia and New Zealand business travel in Australia is gaining real momentum. “SAP Concur data shows that flight bookings in Australia increased almost 10% in 2025 compared to 2024. March 2025 achieved the highest velocity, with corporate bookings surging more than 44% compared to March 2024, reflecting a sharp rebound in corporate travel demand,” he said.

As travel activity continues to accelerate in 2026, Australian organisations are rethinking how travel decisions are controlled and authorised. This shift isn’t just about updating corporate travel policies. It’s about making smarter decisions earlier, moving intelligence upstream of expenditure rather than downstream of it.

Consequently, pre-travel authorisation powered by AI is quietly becoming one of the most pragmatic AI applications in enterprise finance, according to SAP Concur.

Jonathan Beeby, managing director, SAP Concur Australia and New Zealand said, “Travel and expense management is no longer about post audits but preventative control. In traditional travel and expense programs, compliance was largely reactive: employees book trips, later file expenses, and finance teams audit them against policy afterwards. That approach can identify where policy was breached, but it offers little in the way of early prevention, and cost visibility and management.

“In Australia, that shift toward proactive governance is gaining momentum. Business travel surged over the past year as organisations resume commercial travel and business events post-pandemic. Demand for control over discretionary spend is tightening as finance leaders seek earlier visibility, and internal audit teams push for stronger evidence of upfront approval. Modern travellers also expect digital workflows that are intuitive and fast. These combined pressures are driving enterprise adoption of intelligent pre-travel authorisation, where AI and automation inform decisions before bookings are confirmed.”  

Pre-travel authorisation workflows require employees to submit structured trip requests, including rationale, cost estimates, and any policy exceptions. AI and agents are transforming the process.

In contemporary enterprise platforms, AI and agents are being deployed to automatically suggest or pre-fill estimated travel costs based on historical spend patterns; flag out-of-policy items in real time; and tailor approval routing according to risk categories, spend thresholds, and employee profiles.

Jonathan Beeby said, “Intelligent automation interprets context and provides richer guidance at the point of request rather than relying solely on rigid, static business rules. This helps organisations scale governance controls without multiplying manual checks, giving finance teams early insight, and travellers clearer guidance toward compliant choices.

“One of the most compelling benefits of AI-driven travel requests is the quality of data created. Rather than free-text explanations submitted after travel, structured requests capture why the business travel is necessary, anticipated costs, and which manager approved the itinerary and under what conditions. This produces a defensible, machine-readable audit trail that shows approvals, edits, and exceptions over time; a powerful asset as Australian organisations face greater oversight from boards and internal audit functions.”

Solutions such as the Concur Request capability maintain a detailed audit trail showing approvals, changes and exceptions over time and automatically raise flags for review, providing advance spend visibility for Australian finance leaders.

One of the standout advantages of embedding AI in pre-travel authorisation is that it shifts travel data from being a lagging indicator to a leading signal of future expenditure. By consolidating authorised travel commitments ahead of time, finance teams gain a clearer view of upcoming costs long before they hit the general ledger.

This early insight supports better forecasting and proactive budget management, which is particularly valuable in Australia’s geographically dispersed market where aviation and accommodation pricing can vary significantly by region. This proactive intelligence helps CFOs understand emerging travel trends and cost pressures without having to manually wrangle spreadsheets or disparate systems.

Jonathan Beeby said, “The common concern around pre-travel authorisation is the risk of creating process friction that delays routine travel. Smart AI workflows are central to addressing this. They can reduce repetitive data entry and minimise back-and-forth between travellers and approvers, so that low-risk or recurring trips can move quickly through the system, while higher-risk requests trigger additional scrutiny.

“This typically means fewer rejected expense claims for employees, fewer surprises after trips have been taken, and a smoother overall experience; a valuable differentiation in Australia’s increasingly competitive talent market.”  

Pre-travel authorisation is a standout AI example because of its practical utility. This isn’t research code or speculative innovation, it’s an operational capability delivering measurable outcomes including reduced risk, stronger compliance, better data, and faster decisions. Embedding intelligence into day-to-day workflows can demonstrate how AI can be applied sensibly to deliver tangible business value.

As corporate travel continues to rebound, more Australian organisations are recognising that the most impactful place to apply intelligence is before spending is committed, at the moment of intent. AI-driven pre-travel authorisation is emerging as a clear example of how enterprise technology can strengthen governance not by adding layers of control, but by embedding smart decision support where it matters most.

MIL OSI

• Reserve Bank warns of heightened uncertainty due to Iran war
• Economic recovery expected to be “somewhat slower”
• Financial institutions well-placed to support economy

Risks to financial stability have increased due to the Middle East conflict, with a bleaker outlook for the economy, potentially making it harder for borrowers to service debt.

In its half-yearly Financial Stability Report, the Reserve Bank (RBNZ) stressed the country’s financial system remained resilient, and the banking system was well-placed to support customers even if conditions worsened.

The RBNZ said the longer the Iran war continued, the greater the risks to global financial stability, with New Zealand already feeling “significant economic effects”.

Governor Anna Breman said high diesel prices were having the biggest effect on the transport and logistics sectors, as well as primary industries, including forestry and fishing.

“While economic growth had been recovering prior to the conflict, we are now likely to see a somewhat slower recovery, affecting job growth and debt servicing,” Dr Breman said.

The RBNZ said banks had strong capital and funding buffers, meaning they were not only “well-placed” to help struggling customers, but also manage stresses in offshore funding markets.

It said stress testing results showed banks’ ability to withstand significant economic shocks, including geopolitical events like the Middle East conflict.

The RBNZ expected the impact on insurers to be limited, noting health insurers have raised premiums and adjusted policies following several years of high claims costs.

The RBNZ said it was working on a stress test of life and health insurers.

Fuel prices close to their highest levels in 50 years

Unsurprisingly, the RBNZ said higher oil prices will increase costs for firms, including those already facing weak demand.

“Prices for these important inputs are now close to their highest levels in the past 50 years after adjusting for inflation,” the RBNZ said in its report.

It warned that in addition to increased costs for firms, higher oil prices will reduce consumers’ spending power.

“Higher near-term CPI [consumer price index] inflation due to the conflict will reduce real wages,” the RBNZ said.

“While it seems unlikely at this stage that the impact on real wages will be as large as it was over 2021/22, even a small decline in spending power could create financial hardship for some households given the existing cost-of-living pressures.”

Meanwhile, low profitability in recent years meant firms were in a “more vulnerable position”.

“Business deposits were elevated after the pandemic, given fiscal support and the strong economic recovery,” it said.

“However, over the past three years, business deposits, particularly for smaller firms, have declined as a share of GDP [gross domestic product].”

The RBNZ said mortgage arrears have also declined from the recent peak as the economy improved, with non-performing loans at around 0.6 percent of lending.

However, it said arrears and non-performing loans remain higher than pre-pandemic levels.

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Explainer – New Zealand has signed a deal with Singapore that will ensure exports of essential supplies like food and fuel keep flowing, even during a crisis.

A bit like the one we’re facing now.

While it was inked this week, negotiations concluded last year, and Singapore has kept the fuel coming since the outbreak of the war on Iran.

Neither Christopher Luxon nor his Singaporean counterpart Lawrence Wong would have known just how handy that deal was going to become back in October.

It’s a pretty simple equation, crisis or no crisis: New Zealand needs fuel, Singapore supplies fuel. Singapore needs food, New Zealand supplies food.

With no refinery in New Zealand since the closure of Marsden Point, we’ve had to rely on importing refined fuel from elsewhere. Singapore has supplied around a third of that.

The background

New Zealand and Singapore have a longstanding trade relationship.

In the year to June 2025, two-way trade was worth $11.07 billion.

The two countries signed a free trade agreement (the New Zealand-Singapore Closer Economic Partnership, or CEP) all the way back in 2000.

In April 2020, they committed to a declaration on trade in essential goods, in response to the Covid-19 pandemic.

That declaration ensured neither New Zealand nor Singapore would impose export restrictions like tariffs on 120 essential goods like various foods, pharmaceuticals, and medical equipment.

While the declaration was non-binding, in 2022 former New Zealand prime minister Jacinda Ardern and former Singapore prime minister Lee Hsien Loong established a supply chain working group to build on those commitments and spirit of cooperation.

In October 2024, Cabinet agreed to launch negotiations, and a year later the Agreement on Trade in Essential Supplies (AOTES) was agreed to.

Were we at risk of fuel being cut off?

Singapore has made it clear it was hardly going to turn the tap off anyway, given the relationship and how much it runs counter to our general trade philosophies.

New Zealand farmers are pretty reliant on diesel, in order to produce the food that is then exported to Singapore.

So there was never much of a motivation for Singapore or New Zealand to all of a sudden become more protectionist.

But now it’s in writing, with legal obligations, and sitting within the CEP.

“Unlike the declaration, the AOTES is a binding, treaty level agreement and is not responding to an immediate supply shock but helping both of our countries prepare for future crises,” Ministry of Foreign Affairs and Trade officials wrote in a national interest analysis.

Countries can use a critical shortages exception under the General Agreement on Tariffs and Trade (GATT), but this new deal is “novel,” officials said, because it prevents that from happening.

Not that New Zealand has ever used that exception. To the best of their knowledge, officials couldn’t find an example.

So, even if Singapore experiences a supply shock, it still can’t apply that shortages exception, which gives New Zealand more certainty.

But what if the worst happens?

If we’re talking about the absolute worst of the worst of situations, like a nuclear apocalypse which wipes out all of our crops, or the island where Singapore’s refineries are based all of a sudden sinks into the sea, then yes, sure, Singapore and New Zealand could technically circumvent the agreement.

The countries can still use other provisions or exceptions in the GATT or their World Trade Organisation agreements, so they can still impose export controls for “reasons such as national security threats, the protection of human, plant and animal health, public morals, or the regulation of classification, grading or marketing of commodities in international trade.”

That’s where a rapid review clause comes in, meaning both parties can call an emergency meeting to discuss adding or removing goods to or from the list.

Singapore and New Zealand have also promised to share information with each other in the event of a significant or imminent supply chain disruption, such as the predicted impact on their economy or national security, or how long it may last.

There is a provision within Singapore and New Zealand’s CEP which allows Singapore to adopt “any measure” to address critical shortages of essential imports.

So, if there’s a supply chain crisis, Singapore could use the provision within the CEP to prove an exemption from the AOTES.

But, officials said, the threshold was high, as the “relevant goods need to be listed as essential in Singapore’s domestic law, the critical shortages need to give rise to major difficulties for Singapore, and the measure should not be used to arbitrarily discriminate against New Zealand or to impose a disguised restriction on trade.”

So why is fuel still so expensive?

While the deal reduces New Zealand’s risk of fuel shortages, it doesn’t reduce our exposure to prices.

The AOTES ensures both countries continue to “expedite and facilitate” the flow of supplies, and prevents them from imposing export restrictions.

It does not “cut across” the role of the private sector in the production or management of supply chains, and there’s no regulation within the agreement for the private sector.

It also doesn’t mean New Zealand or Singapore have to commit to procurement, or guarantee the supply of goods.

New Zealand importers still have to pay the market rate for the fuel, and that inevitably gets passed on to consumers.

Singapore’s refineries have had to adapt to process sweeter crude than they’re used to, and sourcing it from elsewhere has also brought in extra costs.

The fuel companies can source it. They can refine it. They can transport it. But it’s still going to cost us, especially if that supply gets more constrained.

That’s why, even though the fuel is still coming into New Zealand, we’re still seeing those prices at the pump.

Both Wong and Luxon have been bleak in their assessments of the fuel crisis, with neither thinking it’s going to end any time soon.

What else is in there?

Food and fuel are the headline items, mainly because they’re the most pressing things the respective countries would need in a crisis.

The lists can be changed, but only if both parties agree to the edits.

New Zealand’s list includes petroleum and oils (other than crude, which we wouldn’t need anyway without a refinery), hydrocarbons, medications, vaccines, polymers, medical equipment, and building materials like steel and glass insulation.

Officials on the New Zealand side said the list was chosen to reflect what New Zealand already imported from Singapore, as well as “whether New Zealand could or could not stand-up production of the specific good in the times of crisis, how substitutable the good is, and whether we can easily source the good from elsewhere.”

Singapore’s list is almost entirely food: meats, vegetables, legumes, fruits, dairy, grains.

Coal is also on Singapore’s list, as are photographic cameras, for some reason.

Is it really a world first?

The “first of its kind” definition is technically true.

Australia concluded negotiations on a similar economic resilience deal with Singapore last month, committing to keep supplying Singapore with liquefied natural gas while Singapore promised to keep supplying Australia with refined fuel.

But even though New Zealand’s deal has only just been signed now, it has been locked in for longer.

Luxon has used that to rebuff criticisms that he should have got on a plane to Singapore sooner. The deal was agreed to in October, Singapore promised to abide by it in-principle once the war started, there was no rush.

“We didn’t need to, because the Australians didn’t have what we have. They probably still haven’t got what we have. We put this in place in October, Prime Minister Wong and I are good friends, and we agreed that we would work to this and formally sign it on this visit. So it’s served us incredibly well. We haven’t needed to go sooner as a result of this,” he told RNZ ahead of the trip.

Can we expect others to join in?

Luxon is pointing to the deal as an example of smaller countries innovating and modernising trade architecture, rather than responding to the United States’ tariffs with a tit-for-tat protectionism.

Both he and Wong have expressed openness to other countries wanting to join in.

Singapore and New Zealand’s deal had an advantage because they came from a running start, and had identified the products each other wanted, but both prime ministers have said others can sign up, as long as they can meet the same standards, guarantees, and commitments.

In July, New Zealand will chair a meeting with 15 other like-minded economies such as Malaysia, Switzerland, Norway, and the United Arab Emirates, and Luxon has said it’s possible some of those countries may want to give it a go.

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

New Zealand and Singapore have today signed a major agreement to protect the movement of essential goods such as fuel and food.

The signing of the Agreement on Trade in Essential Supplies (AOTES), witnessed by Prime Ministers Christopher Luxon and Lawrence Wong, guarantees neither country will impose export restrictions on the other, and formalises practical cooperation on supply chain resilience. 

“The past few months have shown we live in a volatile world – Kiwis are seeing that every time they fill up their car. That is why we are hustling in the world to protect New Zealand and build our resilience in uncertain times,” Mr Luxon says.

“The AOTES is a demonstration of New Zealand and Singapore working together as trusted partners. In times of crisis, we know we can rely on each other.

“With a third of New Zealand’s fuel refined in Singapore, this Agreement turns trust into action – and right now, that’s keeping fuel flowing to New Zealand when it matters most.

“As the best food producer in the world, New Zealand has what the world wants. With this Agreement we are leveraging that special skill to protect what Kiwi communities need,” Mr Luxon says.

Trade and Investment Minister Todd McClay, who signed the AOTES, says it aims to reduce the risk of supply‑chain disruption.

“It is built on cooperation forged during the COVID‑19 pandemic and recognises that reliable access to essential goods is most critical during times of crisis.

“New Zealand and Singapore have a strong record of developing practical, modern trade rules together, including through the Trans-Pacific Strategic Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Future of Investment and Trade Partnership and the Digital Economy Partnership Agreement.

“This Agreement is a world first and the latest example of our shared commitment to keeping fuel, food, medicines and other critical goods moving when they are needed most,” Mr McClay says.

The AOTES establishes binding commitments preventing either government from imposing export restrictions on an agreed list of goods – including fuel, foodstuffs, construction materials, and other essential supplies. 

It will be incorporated into the existing New Zealand-Singapore Free Trade Agreement, following domestic approval processes in both countries.

MIL OSI

A gynaecologist and women’s health expert says Pharmac’s rationing of menopause drugs is reasonable from an equity perspective, given the global shortages.

Progesterone capsules will now be dispensed on a monthly basis, instead of three-monthly.

Auckland University associate professor Dr Michelle Wise said it’s a fair call from Pharmac.

“It’s a response that makes sense from the perspective of equity, so it’s not like I can go down to my pharmacy and get a year’s worth, and someone else can’t get it at all.

“I like the idea that it’s seemingly fair across wherever you are in the country, that you can at least get a month’s supply.”

Wise said the global shortages are driven by more women requesting menopause hormone therapy and demanding better healthcare in mid-life.

She said she’d expect the trend to continue and hopes regulators and suppliers around the world can keep up with the demand.

Wise said there have been shortages of estradiol patches on and off since the pandemic.

However, she believed New Zealand was facing shortages of progesterone capsules for the first time.

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

Homeware and furniture shops around Auckland and nearby regions appear to be losing some of their traffic to Swedish retail giant Ikea.

Data from Dot Loves Data shows that, as a category, home and furnishings is growing significantly.

Director Justin Lester said he could not comment on specific businesses but the total amount spent in the home and furnishing category in Auckland was $59.9 million in March, 5.82 percent up on the previous year.

People were travelling to Auckland to buy things in that category, he said. The total spend within Auckland by domestic visitors was up 72 percent in December compared to the year before. In March it was up 89 percent compared to March 2025.

In November 2025, before Ikea opened there was just over $7 million spent in Westgate on furniture and home furnishings. Just under $7m was spent in Mt Wellington. About $6m was spent in Glenfield, just under $5m in Newmarket, Just under $6m in Manukau and just over $6m in East Tamaki.

The next month, after Ikea’s opening on December, there was more than $20 million spent on total home and furnishings in Mt Wellington, and only just over $5m spent at most in other suburbs.

Lester said that trend had continued through the year. “It looks like Mount Wellington’s become a real hub within the Auckland precinct. It’s a real driver of the local economy there.”

Retail consultant Chris Wilkinson, from First Retail Group, said he would expect Ikea to have an anchoring effect, pulling shoppers in to the area.

But he said nearby retailers would benefit.

“You get inspired by what’s going on at Ikea… You might think, oh, I might like a little bit more style or I might like a little bit more whatever. So you go into Ikea but then perhaps you’re going to go to the Nick Scali afterwards, or you’re going to go to Freedom, or maybe availability is not there, so you’re going to look further.

“The anchor value of Ikea is incredibly significant.”

He said people would travel to Mt Wellington to shop. “When you are going to Ikea, you are very purposeful. This isn’t a place you just pop into and spend five minutes there. It’s not lie a normal strip business where you pop in, have a quick cast of your eye and go ‘yep it’s for me’ or ‘no it’s not’… people make a very determined decision and when they make determined decisions they’re purposeful and that typically results in a transaction.”

He said Ikea encouraged people to come back by having a range of things to pull them in, from meatballs and ice-cream to furniture, and ever-changing store displays.

“It really does keep people very sticky with the brand. And once you’ve got that habitual visitation, that’s starting to benefit everyone.”

He said people had been more focused on their homes and living environments since the pandemic.

“There’s been quite a shift in people’s mindset about the role of their houses because they’ve spent more time in them, more flexible working and all those aspects. It really has just changed the dynamic quite significantly. And of course, played into these nesting categories, as we would call them.”

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

If a new pathogen emerged today, the world would be largely unprepared, former Prime Minister Helen Clark says.

The Pathogen Access and Benefit Sharing Annex [PABS] could not be agreed to in time for adoption at the next World Health Assembly.

It’s an essential part of the WHO Pandemic Agreement, which aims to strengthen global prevention, preparedness, and response to future pandemics.

The agreement as a whole cannot proceed towards ratification, if the annex is not agreed to.

Clark, co-chair of the Independent Panel for Pandemic Preparedness and Response, said it was a disappointing result.

Clark said some sticking points prevented the annex from going through.

“The huge issue is about equitable access to vaccines and to the technologies which develop vaccines. That’s been the sticking point.

“As well, the developing countries have wanted an undertaking, that in return for honouring their obligations under the international health regulations to make information about a new pathogen available, they would then get the benefits of sharing that information from whatever new innovation comes along.

“It’s stuck on this basic principle of equity, with at this point, developed countries not being prepared to concede enough on the equity side, to satisfy developing countries,” she said.

Clark said, as a result, the world would be unprepared, if a new pathogen emerged.

“[I have] several concerns around the lack of preparedness now, one that, of course, vaccine misinformation and disinformation is rife, so that’s a more difficult context to be implementing 101 public health measures in.

“Secondly, a lot of countries still have a lot of fiscal issues arising from having to spend their way through the Covid-19 pandemic.

“Then you have the issue of not enough international finance for developing countries for preparedness and for response, so there’s so many issues and areas where we’re not prepared.”

Clark said co-ordination was key.

“Co-ordination is critical and it’s needed… at the regional level as well as at the global level.

“There’s a whole ecosystem, around vaccine development, procurement, distribution, financing, which needs to work, and we’re not there yet.”

Geopolitical conflicts were also having an impact on preparedness, she said.

“The key issue is the distrust between north and south. There’s a very bad taste from the last pandemic where developing countries did not get a fair shot at getting the vaccines, developed countries gobbled up most of what was available, the production wasn’t sufficient to then supply developing country populations.

“When some of us were beginning to get our boosters, health workers and some poor countries had never had as much as a single shot of a vaccine.

“There’s a lot of resentment about this and a determination from the developing countries not to settle for something that will be inequitable in future,” she said.

Clark said, while political leaders were dealing with immediate issues, they could not afford to neglect foreseeable risks.

“Right now, leaders are grappling with the cost of living, the spill-over impacts from the war on Iran, so pandemic preparation response is not top of mind.

“Unfortunately, that means that negotiations like these can founder, because they don’t have sufficient political attention,” she said.

The 79th World Health Assembly will be held in Geneva, Switzerland, on 18-23 May, 2026.

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The cost of calling out an air ambulance helicopter is skyrocketing to over $13,000 an hour – and not because of Iran war fuel price rises.

The hike of almost 65 percent from the current $8200 an hour kicks in from Friday.

“The cost increase for third-party customers does not include the recent fuel price increase as it was calculated prior to the rise in jet fuel costs,” said Health New Zealand and ACC which ordered the rate hike.

The main third-party customers were police and the Rescue Coordination Centre which used the helicopters on almost 3000 operations a year.

The two agencies have been approached for comment, with RNZ asking if they might have to cut back on using the aircraft.

Civil Defence callouts could also cost more, for councils or NEMA.

Health NZ and ACC, which separately fund about 12,000 medical flights and hospital transfers a year, paid for jet fuel for the air ambulances directly, and said that cost had risen due to the Iran war by over $500,000 a month.

“As joint funders of air ambulance services, Health New Zealand and ACC will keep reviewing service costs annually to support service sustainability,” they told RNZ in a statement.

Some of the cost of medical flights has always been met by fundraising for the 23 helicopters by various trusts.

On the search-and-rescue or SAR side, the increase could cost the RCC another $8m a year based on 1400 flight hours in 2024.

Northern Rescue which covers Auckland, Northland and Coromandel said it was not in a position to comment, other than that it was “committed to serving our community and continuing to provide a high-quality, reliable aeromedical service when tasked” and that it was “important to note that we do not control the coordination or dispatch of aircraft”.

The NZ Helicopter Association said the rise would help but still left a gap.

“The full amount will still not cover the operating costs for the air ambulance,” association chair Scott McKenzie said.

“They’ll still need to do a significant amount of fundraising to cover some of their training costs and for purchasing new equipment.”

A big driver was the cost of spare parts in some cases up 80 percent or more since the pandemic – he cited a major part that used to cost $300,000 and was now over a million.

As for higher fuel prices, “This price increase was coming before the fuel price increase hit the country – there’s still a requirement that money will be covered somewhere,” McKenzie said on Thursday.

“In one week, we had an 83 cent per litre increase in the price of Jet A1, which all of the aircraft operate.”

HNZ and ACC said the $8200 an hour rate set in 2024 was not covering costs. The rates were the minimum they set that the country’s three rescue chopper providers had to charge.

“This earlier rate was a partial cost recovery that did not fully cover fleet renewal, capability uplift, and long-term sustainability,” they said.

“In addition, service delivery costs have since increased significantly because of fleet modernisation, pilot upskilling, and inflation.”

“As a result, we have advised air ambulance providers that from May 1, 2026, the full hourly cost of $13,450 must be recovered from third-party customers.

“This approach ensures that third-party customers are fully funding costs generated and supports the financial sustainability of the air ambulance service for patients with urgent health or injury needs.”

The government in the last two years has spent about $27m replacing 16 of the older air ambulance helicopters.

Councils and the National Emergency Management Agency might also be exposed to the latest hourly rate hike if they have to call on the aircraft, as happened in Cyclone Gabrielle.

After the storm, some councils struggled to get reimbursed for aviation and other expenses.

SAR operations sometimes use cheaper regular helicopters but these are usually not as large or well equipped, or able to fly in bad weather or at night so readily.

Cost recovery and who pays for what around air ambulances and other rescue aviation responses has been a factor causing headaches for NZ Search and Rescue, Police, the RCC, ambulance providers, HNZ and Fire and Emergency (FENZ) for at least several years.

In 2023 a FENZ internal email referred to legislative complications and “our logistical problems and double/tripling up of same resource request”.

HNZ stepped in last year with FENZ to remind it was not allowed to directly order up an air ambulance helicopter to transport its cliff rescue crews, even if they did not have another option to get to a rescue over an hour by road away.

Just last month the RCC was given the job of developing a new SAR aviation coordination system to resolve the longstanding problems.

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

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