Banking Sector – ASB half year result: Profit up 1% as economy moves toward recovery

February 12, 2025

Source: ASB

ASB has reported a cash net profit after tax (NPAT) of $716 million for the six months to 31 December 2024, an increase of 1% on the prior comparative period, as the economy moves towards recovery.

Statutory NPAT is $763 million, a 2% increase on the prior comparative period. The increase in profit reflects a 4% rise in operating income driven by increased lending volumes and favourable interest rate hedging, partially offset by an 8% rise in operating expenses. Home lending grew 5% and business and rural lending grew 2% on the prior comparative period. Margins across lending and deposits remained flat overall.

Profitability, measured by return on equity, fell 0.6% on the prior comparative period. The increase in profit was more than offset by additional capital requirements, with the total capital ratio rising 80 basis points to 16.3%. During the period there was additional shareholder investment of $700 million, bringing total shareholder investment in ASB to $11.4 billion, supporting growth in New Zealand.

Chief Executive Vittoria Shortt says ASB has supported its rural, personal and business customers through more than two years of extremely challenging economic conditions and is well positioned to continue backing them as the economy enters the early stages of recovery.

“New Zealand has been through the most difficult economic cycle in a generation, and we need to be patient with what looks like a gradual recovery. With lower interest rates and inflation providing some relief, and export incomes looking up for a number of sectors, our focus remains on supporting customers and providing capital for the next phase of economic growth.”

Opening doors for homeowners

ASB has cut its one-year fixed home loan rate by a total of 1.65% and six-month rate by 1.35% since July 2024.

“Falling interest rates bring very welcome relief for Kiwi borrowers, but we’re aware most are on fixed mortgages, and the benefit is yet to be felt by many households. Around 45% of our fixed home loan customers are expected to roll onto a lower rate by the end of June, and 70% by Christmas. Since April 2024, we’ve seen borrowers shift toward shorter terms, with close to half of our fixed mortgage customers choosing to fix for just six months.

“ASB helped more than 23,000 customers build, refinance, buy or move house over the half year, including close to 5,500 first home buyers, with around 3,600 using their ASB KiwiSaver for deposits.

“We’re backing the build of more warm, dry homes and making it easier for social housing providers to buy them. Since our Accelerated Housing Fund launched in November 2023, we’ve committed $165 million, supporting around 450 new homes for community, affordable and Māori housing.

“We are continuing to develop new ways to enable Māori to secure lending for housing on Māori land, including supporting papakāinga shared living projects. Through our Accelerated Housing Fund, we’ve now committed $34 million for Māori-led housing developments.”

Strengthening exports, innovation and New Zealand

“ASB provided more than $1 billion in lending to new business, rural and corporate customers over the half year, as we continue to back businesses to compete, scale and drive the growth that will underpin New Zealand’s economic recovery.

“Our $30 million Clean Tech fund and $20 million ASB ACCESS food and fibre fund are accelerating exporters and innovators ready to grow, but lacking capital to do so. We’re partnering with these emerging business at an early stage, finding new ways to approach lending and unlock their potential. Our food and fibre capability within ASB is also expanding to better support this key sector.

“Another area where ASB can make an impact on New Zealand’s future is supporting upgrades to infrastructure. We estimate $1 trillion in infrastructure investment is needed over the next 30 years, with energy one of the critical sectors requiring funding. Enabling investment in renewable energy will be an ongoing priority for us, as our research tells us we can help households, businesses and farmers to cut costs, reduce emissions and improve profitability,” says Vittoria.

Benefit levels fail to keep families out of poverty

LiveNews Publisher

February 12, 2025

Source: Green Party

The Salvation Army’s State of the Nation report is a bleak indictment on the failure of Government to take steps to end poverty, with those on benefits, including their children, hit hardest.

“Poverty is a political choice this Government is choosing for our communities, intentionally exacerbating inequality and pushing thousands of families into hardship,” says the Green Party Spokesperson for Social Development, Ricardo Menéndez March.

“In this country, we have the means and resources to ensure all whānau have the basics for a good life and don’t fall through the gaps.

“Unfortunately half of all children living in material hardship are in benefit households, the very families that this Government is forcing into deeper poverty with policies that sanction and punish beneficiaries.

“The Salvation Army’s report also highlights the need to transform Work and Income’s culture to one where people are treated with trust and respect.

“People should not be declined hardship assistance when they are in need of help, and yet more people have been declined for this very critical support at a time when material hardship for children is increasing.

“This report also reinforces what people on the ground have been telling us for years: Māori and Pasifika people have been hardest hit by benefit sanctions, lack of access to adequate support, and ongoing discrimination by the very same agencies meant to support them.

“Poverty is not something we have to accept, we can choose to end it. The Green Party campaigned on ending poverty with our Income Guarantee that would ensure everyone has enough food to put on the table, no matter how tough times get,” says Ricardo Menéndez March.

MIL OSI

Takahē released to grow wild population

LiveNews Publisher

February 12, 2025

Source: Department of Conservation

Date: 12 February 2025

After travelling from Burwood Takahē Centre near Te Anau and Orokonui Ecosanctuary Dunedin, takahē rangers paused briefly at Glenorchy Primary School for children to wave the birds on to the release site.

Mana whenua Ngāi Tahu welcomed takahē with a mihi whakatau before they were released.

The decision to release takahē into the Rees Valley was made after takahē released into Greenstone Valley in 2023 showed early signs of successfully adjusting to their new environment – raising offspring and remaining in a healthy condition.

Thought to be extinct for 50 years, takahē are a taonga of Ngāi Tahu, unique to New Zealand and the largest flightless species of rail bird in the world. They were famously rediscovered in the Murchison Mountains in 1948.

DOC’s Takahē Recovery Senior Ranger Glen Greaves says existing wild sites in the Murchison Mountains and the Greenstone Valley are reaching capacity, so the focus is now on establishing more wild populations elsewhere.

“Finding wild sites with the right habitat, and with predator numbers low enough for takahē to thrive is a challenge – but the Greenstone, Rees, and wider Whakatipu areas likely provide high-quality habitat for takahē.”

Glen says predator control has been a significant factor in ensuring the translocation can go ahead. However, like other large wild sites, predator threats and dispersal into less-protected areas remain.

“Setting up new wild populations takes perseverance, and success is not guaranteed,” says Glen.

“We hope people walking the Rees-Dart track and Routeburn tracks will soon have a good chance of seeing takahē thriving in their natural wild habitat.”

Ngāi Tahu representative on the Takahē Recovery Group, Gail Thompson says the release of takahē into the Rees Valley is a welcome next step towards the goal of increasing the number of takahē roaming free in the wild.

“It is my hope the manu will thrive in this valley as they have so far in the Greenstone Valley and that current and future generations will have the opportunity to see takahē in their natural environment.

“Our tīpuna inhabited the valley to the west of Puahiri/Puahere awa/Rees River and this whenua was part of a well-known network of ara tawhito/trails to pounamu sources. It is heartening that these takahē can now make this place their home,” says Gail.

Today the total takahē population is more than 500 and growing at about five percent a year. More than half the birds now live at wild sites.

Kaiwhakahaere/co-chair of Southern Lakes Sanctuary, Greg Lind, says their organisation’s work has been to prepare the Rees Valley for takahē to hopefully thrive upon their return to this special area.

“We have been servicing a network of more than 500 traps in suitable takahē habitats and have been focused on intensive feral cat control,” says Greg.

“This takahē release is a great example of the power of collaboration, with each party making vital contributions to make this a reality. This includes everyone from donors, iwi, landowners, community groups and DOC.”

A further two takahē releases into the Rees Valley are planned for later this year, with the aim of establishing a population of up to 80 takahē in the Rees Valley in 2025.

DOC’s Takahē Recovery Programme, supported by National Partner Fulton Hogan and New Zealand Nature Fund, together with Ngāi Tahu and Southern Lakes Sanctuary have been working together to create one large self-sustaining population of takahē in the Upper Whakatipu – with the shared goal of restoring takahē to whenua they likely inhabited centuries ago.

Acknowledgments

Ngāi Tahu

Takahē have special cultural, spiritual, and traditional significance to Ngāi Tahu. Ngāi Tahu value takahē as a taonga (treasure) and continue to act as kaitiaki (guardians) of takahē by working with DOC to protect this precious species.

Seven of the 18 Ngāi Tahu Papatipu Rūnanga have a shared interest in and around Whakatipu Waimāori, Tāhuna and the inland Ōtākou region. Those seven rūnanga are: Te Rūnanga o Moeraki, Kāti Huirapa Rūnaka ki Puketeraki, Te Rūnanga o Ōtākou, Hokonui Rūnanga, Oraka Aparima Rūnaka, Te Rūnaka o Awarua and Waihōpai Rūnaka. The release had their full support.

DOC and the Takahē Recovery Programme

Fulton Hogan joined with DOC as a national partner to the Takahē Recovery Programme in July 2016. The New Zealand Nature Fund has a long-standing association with the programme and joined the DOC and Fulton Hogan partnership in July 2016, providing administration and advocacy support. DOC and the Takahē Recovery Programme are also supported by Air New Zealand, and 18 sanctuary sites throughout the country that provide safe breeding places for takahē to grow their numbers to feed into wild sites.

Southern Lakes Sanctuary

The Southern Lakes Sanctuary Trust is a consortium of six local groups that collectively represent 84 community groups, landowners, and businesses, who in turn have been working for many years to protect and restore the declining biodiversity of the Southern Lakes region. The consortium relies on the mahi of hundreds of committed and dedicated volunteers, throughout the district. Their tireless work, which has been quietly ploughing on for many years, is the foundation upon which the Southern Lakes Sanctuary is built. The group’s extensive predator trapping work in the Rees Valley has been supported by RealNZ, Impact100, Lotteries, Stout Trust, Patagonia, QLDC, CLT, AJ Hackett Bungy New Zealand and Heli Glenorchy.

Takahē thrive in new wild home on Ngāi Tahu whenua in Ōtākou/Otago: Media release 15 August 2024

Contact

For media enquiries contact:

Email: media@doc.govt.nz

MIL OSI

Property solution for Wellington Girls’ College

LiveNews Publisher

February 12, 2025

Source: New Zealand Government

The Government is providing Wellington Girls’ College certainty by confirming funding for the school’s long-term property solution.
“Cabinet has approved funding for the next stage of the school’s redevelopment. It will deliver safe, warm and dry learning environments that will ensure Wellington Girls’ College continues to deliver a world-leading education for generations to come,” Education Minister Erica Stanford says.
The next stage will deliver:

A new two-storey building to deliver replacement classrooms and administration/resource space.
A new replacement school hall.
Earthquake strengthening works on Brook Block.
Relocation of some of the modular classrooms on the school field and two-storey modulars to their permanent location to deliver new classrooms as part of this next stage of the project.
Reinstatement of the school field.
Removal of the end-of-life prefabricated classrooms that will no longer be required.

This stage is on top of the investment to deliver one and two-storey modular classrooms, strengthening works on the Pipitea Block, and delivering covered courts. The new two-storey building and relocated modulars will deliver around 20 classrooms for the school. The total investment across both previous and future works is around $100 million.
“This Government is developing a more efficient and sustainable solution for how we deliver school property. It is our expectation the Ministry of Education prioritises repeatable and modular buildings and is transparent when communicating with schools throughout the planning process.
“The new two-storey modular classrooms delivered ahead of Term 1 are a great example of what we can do when we focus on speed, innovation, and working collaboratively with the market, and I expect to see more of this approach across the country.”
Work is expected to begin on the new two-storey building and hall in 2026. Work on Pipitea Block is already underway and is expected to be completed mid-2025. Strengthening of Brook Block and other redevelopment works are planned to begin onsite by the end of 2025.
“Improving education infrastructure is an important part of laying the foundation for New Zealanders to succeed. This Government is committed to delivering just that,” Ms Stanford says.

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Environment – Climate and public health the winners as big waste incineration proposal fails – Greenpeace

LiveNews Publisher

February 12, 2025

Source: Greenpeace

Greenpeace welcomes news that a land-use agreement in Glenavy has lapsed and will not be renewed, which means a proposed $350 million waste to energy incinerator cannot be built there by the company SRRL.

It would have been the first polluting waste to energy incinerator built of its kind in Aotearoa New Zealand.

“This is great news for the climate and for the health of the local community, which has strongly opposed the building of a waste to energy incinerator in Glenavy in the Waimate district. Aotearoa New Zealand’s energy future is in renewable clean energy such as wind and solar, not burning waste with fossil fuels,” says Greenpeace spokesperson Juressa Lee.

Greenpeace Aotearoa has opposed the proposal since it became public in September 2021 and subsequently wrote to the Minister for the Environment to call-in the proposal under the RMA. With a change of government in 2023, the Luxon government decided to include the proposal in its list of projects that could apply for consent under its new Fast-track Approvals legislation, under which community concerns, public health and environmental considerations would be set aside in favour of the company’s own questionable claims for economic benefits.

The local community in the Waimate district, including local iwi, Te Rūnanga o Waihao, Why Waste Waimate, Waimate Doctors and national environmental groups, including Zero Waste Network Aotearoa, 350 Aotearoa and others, have all campaigned to stop the proposed waste incinerator. Greenpeace pays tribute to all of them and shares in their delight at the news.

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Energy Sector – Energy Competition Task Force identifies new ways to empower electricity consumers

LiveNews Publisher

February 12, 2025

Source: Electricity Authority

The Energy Competition Task Force (the Task Force) has identified new ways to give consumers more control over their energy costs and to harness the power of rooftop solar and batteries. The Electricity Authority Te Mana Hiko (the Authority) is now seeking feedback on three proposed changes to regulation to promote competition, reliable power supply, and efficient operation of the electricity market for the long-term benefit of all New Zealanders.

Two of the three proposed changes are about rewarding consumers for supplying electricity to the network at peak times, typically through their own solar and battery systems. The other would make ‘time-of-use’ power plans (plans that reward off-peak electricity use) available to most New Zealanders.

Electricity Authority Chair and Task Force member Anna Kominik says there are real benefits if consumers are empowered to more actively participate in the electricity market, including increased energy resilience and reduced power costs over time.

“New Zealand’s electricity market currently relies on a few big generators to supply electricity at select locations and transmit it to households and businesses across the country. But as uptake of solar and battery systems continues to increase, more consumers will be able to contribute to our electricity system. And as smart electronics and vehicles become more ubiquitous, consumers will also be able to more actively manage their own energy use and costs.

“We’re proposing three changes to help support this consumer empowerment and decentralisation of our energy system. Over time, this will increase community resilience and lower power costs for everyone,” she said.

The proposals would require:

Consumer-supply rebates from distributors: lines companies to provide a rebate when consumers supply energy into congested parts of the network (Task Force Initiative 2A)
Time-varying retail pricing for consumption: large electricity retailers to offer at least one time-of-use pricing plan to all their customers (Task Force Initiative 2B)
Time-varying retail pricing for supply: large electricity retailers to offer at least one time-varying rate for when they buy electricity from consumers (Task Force Initiative 2C).

Making ‘time-of-use’ power plans more widely available for Kiwis

Commerce Commission Chair and Task Force member, Dr John Small, said the Initiative 2B proposal would significantly increase availability of ‘time-of-use’ pricing plans. These plans reward consumers for using power during off-peak hours, meaning they can take advantage of cheaper off-peak power, instead of paying a single flat rate.

“While time-of-use pricing plans aren’t new, many consumers don’t have access to one through their current retailer. As these plans provide a simple, effective tool for consumers to manage their energy use and costs, we’d like to see all major retailers offer them, so more consumers have this choice.”

Dr Small said the plans have the additional benefit of reducing overall electricity costs for consumers across the country.

“People on these plans are incentivised to shift their use away from peak periods when electricity is most expensive. The more consumers shift their use at these times – for example by running EV chargers later at night when electricity demand is generally lower – the less high-cost electricity needs to be generated, and this lowers costs for everyone,” he said.

Rewarding consumers for supplying electricity to the network at peak times

Kominik explains that the initiative 2A and 2C proposals would reward consumers who can supply electricity when demand on the network is peaking, typically through their own solar and battery systems.

“We’d like to see people fairly rewarded for supplying power when it’s needed, and incentivise efficient uptake of flexible, small-scale electricity generation systems such as rooftop solar and batteries. Energy from rooftop solar supplied at peak times can ease pressure on the electricity network, reducing demand and keeping the lines costs we all pay for through our power bills to a minimum.

“By incentivising households and businesses to invest in their own generation, we can help meet New Zealand’s electricity needs when demand is high and improve community resilience,” she said.

The Task Force invites feedback on these proposals through the eight-week consultation period, which closes at 5pm on Wednesday 9th April, with two further weeks for cross-submissions.

As part of this consultation package, the Electricity Authority is releasing an issues paper that explores whether the existing pricing rules for distributed generation are fit for purpose. The issues and potential solutions explored in this paper support the proposals in the Task Force initiative 2A consultation paper. Visit this Authority webpage for more information on the issues paper.

The Energy Competition Task Force was established by the Commerce Commission Te Komihana Tauhokohoko and Electricity Authority Te Mana Hiko in August 2024 to investigate ways to improve the performance of the electricity market.

The Task Force is considering eight initiatives that will encourage more and faster investment in new electricity generation, boost competition, enable homes, businesses and industrials to better manage their own electricity use and costs, and put downward pressure on prices.

The attached diagram illustrates the various charges between distributors, retailers and consumers and where proposals for initiatives 2A and 2C would be incorporated.

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Tenants’ privacy rights in the spotlight

LiveNews Publisher

February 12, 2025

Source: Office of the Privacy Commissioner

The hunt to land a flat over summer shouldn’t come at the expense of people’s privacy rights, warns Privacy Commissioner Michael Webster.

“There’s often a lot of pressure on people, especially students, to find a flat quickly, which risks privacy shortcuts being taken and that can put both tenants and landlords at risk.

Tenants should be aware they have privacy rights when applying for a flat and that landlords have obligations under the Privacy Act, Mr Webster says.

“Tenants are often desperate to find a flat, so they might disclose a whole lot of personal information that isn’t legally required. Essentially, they’re giving others power over their own details and that isn’t a great strategy.”

The desire to get a tenant quickly could also lead some landlords to take privacy shortcuts, which puts people at risk.

“The majority of landlords care about their tenants’ privacy, but there can be a lot of factors to weigh up when considering applications and it can be tempting to over collect personal information and to get details that aren’t legally allowed. It can also mean they can end up with a large amount of information with no way to manage or store it safely.

“Landlords need to know what information they can legally collect, and when. They also need to make sure personal information collected during the rental application process is kept secure and is not disclosed without authorisation.”

“Personal information has value and is protected under the Privacy Act at all stages of the rental process. It’s important shortcuts aren’t taken to fill a flat and that only the necessary personal information is supplied and only when its needed.”

Personal characteristics, including relationship status, age, gender identity and employment status are protected under the Human Rights Act. Things like spending habits, experience of family violence, employment history and social media URLS are protected under other Acts.

To help educate landlords and tenants OPC had updated its guidance for the rental sector to help make sure that privacy is respected throughout the application process.

Information for both landlords and tenants is available at privacy.org.nz.

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Finance – ASB drops mortgage rates further

LiveNews Publisher

February 12, 2025

Source: ASB

ASB has today announced decreases on some of its most popular mortgage terms, with market-leading rates across the major banks on 6-month, 1-year and 18-month terms from today. The 6-month term drops 10 basis points to 5.89%, the 1-year rate drops to 5.49% while the 18-month term falls 15 basis points to 5.19%.

ASB’s Executive General Manager Adam Boyd says today’s rate changes will be welcome news for home loan customers and those looking to refix or buy.

“We’ve lowered rates across several terms three times in the past month, giving our customers and prospective buyers a range of options – whether they’re after short-term relief or longer-term certainty. We already know how popular the short-term rates are, and we’ve seen growing interest in the 18-month term this year. Competition is fierce when it comes to interest rates, and we’re pleased to be offering lower mortgage rates for New Zealanders”, says Boyd.

In line with falling wholesale rates, ASB has also reduced some of its term deposit rates. “We know that an easing interest rate environment can mean different things for homeowners and for savers. We’ve got a range of options available to support our customers and we encourage them to reach out to us for tailored guidance and advice.”

All rate adjustments are effective immediately for new and current customers.

Fixed home lending term	Previous rate	New rate	Rate decrease
6-month	5.99%	5.89%	– 10 bps
1-year	5.54%	5.49%	– 5 bps
18-month	5.34%	5.19%	– 15 bps

MIL OSI

SH76 Brougham Street upgrades prioritised as a Road of Regional Significance

LiveNews Publisher

February 12, 2025

Source: New Zealand Government

The Government will prioritise delivery of upgrades to SH76 Brougham Street in Christchurch as a Road of Regional Significance, including an overbridge between Collins and Simeon Streets, Transport Minister Chris Bishop says.

“The Government is committed to delivering transport infrastructure that boosts economic growth and productivity, reduces congestion, and creates a safer and more reliable transport network for people, vehicles, and freight,” Mr Bishop says.

“Carrying over 45,000 vehicles per day, SH76 Brougham Street is a critical route servicing the commercial, industrial, and residential areas south of Christchurch. It is also the main freight route to the South Island’s largest port at Lyttleton.

“In May last year, the Government confirmed funding for the pre-implementation phase only for this project. This funding ensured a no-frills and value for money approach to design could be completed by the NZ Transport Agency (NZTA), and strategic property purchases and consenting work could continue in parallel.

“Cabinet has now confirmed funding will be provided by the Crown to NZTA to deliver this important Road of Regional Significance, with construction to begin by mid-2025, subject to statutory approvals. The overbridge is expected to be completed within two years, and wider improvements started once property and consenting requirements are completed.

“The intersection upgrades and other interventions along the corridor will improve efficiency and safety as well as making travel times more reliable.

“Once completed, the overbridge will enable local residents and school children to safely cross over the highway, rather than using the existing level crossing, as well as improving travel time reliability for freight going to and from the port.

“Prioritising the delivery of roading investment across New Zealand is part of our plan to boost economic growth, and I look forward to construction starting on the SH76 Brougham Street upgrades as soon as possible.

“Overall funding will be confirmed once a contractor has been appointed.”

Notes to Editor

Cabinet has confirmed funding will be provided by the Crown to the NZ Transport Agency to deliver the SH76 Brougham Street upgrades.
This funding will be a drawn down from the tagged contingency set aside in Budget 2024 to enable the NZ Transport Agency to bring forward priority projects that would otherwise be phased to begin from 2027 onwards.
Overall funding to deliver the SH76 Brougham Street upgrades will be confirmed publicly once a contractor is in place to deliver the project.

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Consultation opens on fisheries reforms

LiveNews Publisher

February 12, 2025

Source: New Zealand Government

Feedback is being sought on proposed changes to the Fisheries Act which Oceans and Fisheries Minister Shane Jones says are the most significant reforms in the sector for decades.
“The Coalition Government is committed to the success of the fishing industry, which generates around $1.6 billion in exports each year and employs 9000 people directly. The proposed changes, which I flagged in September last year, will remove unnecessary regulations that impede productivity and the potential of the sector. It is through changes in industries like this that New Zealand is going to fight its way back to economic prosperity,” Mr Jones says.
The proposals in the consultation document released today, set out options to strengthen, streamline, and add to the tools available to set sustainable catch limits, improve privacy protections for fishers on vessels with onboard cameras, and more effectively deal with fish discarded under the Quota Management System.
The proposals were developed following a seafood industry forum established last year.
“Sustainability will always be the bottom line for fisheries management, and there’s an opportunity to lift export revenue by improving productivity and efficiency, rather than catch volume,” Mr Jones says.
“These proposals make the most of improvements to data collection to drive an effective and efficient fisheries system, while continuing to ensure healthy sustainable fisheries.
“They recognise the need to cut red tape from decision-making processes and improve responsiveness, efficiency and certainty. They include a range of options that would be applied to set sustainable catch limits while accounting for the strength of information available, the characteristics of the fish stock, and environmental and socio-economic factors.”
The rollout of cameras has provided more and better-quality information about the fishery but consideration must be given to protecting the privacy of Kiwis going about their work at sea.
“This includes enhancing protections for on-board camera footage, amending the scope of where monitoring is not practical or necessary, and clarifying when cameras must be used,” Mr Jones says.
“Finally, the proposals set out ways the rules around discards can be made more practical and workable for fishers where there is monitoring by onboard cameras or fisheries observers.
“I encourage anyone with an interest to read through the proposals and provide feedback.”
The consultation document and other details, including how to make a submission, can be found on MPI’s website.
Submissions close at 5pm on 28 March 2025.

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