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Why can't we get the kind of long-term mortgages with low break fees common in the US?
Why can't we get the kind of long-term mortgages with low break fees common in the US?

27 September 2024, 7:35 PM

New Zealanders like a fixed term mortgage - 90 percent of ours are locked in. But we tend to fix for short terms.In the US, 30-year terms are common while here, there is almost nothing fixed for more than five years. Most New Zealand lending will refix within the next year.So what's going on, why don't we get a 30-year fix option, and would we want one anyway?The US's 30-year dealsAntonia Watson, chief executive of ANZ, told 30' with Guyon Espiner that New Zealand options were more limited because of the interest rate risk involved for banks in long-term fixes.When banks lend money for a certain term, they need to know that they can access funding for that same term at a rate that works. They usually need to hedge to protect themselves against future interest rate movements, in case rates move up significantly from the rate the borrower has agreed to pay.The US has the scale and size in its wholesale markets to make that possible, but few other countries do."If I guarantee you that you can pay me 6 percent for the next year, I want to hedge that," Watson said. "No matter what happens, for one year, I'm only I'm going to get 6 percent fee off you whether the interest rates go up and down…"So we go out and say to someone 'who wants to take Guyon's interest 6 percent fixed and give me back as the bank the floating rate'. So that's what's called hedging in New Zealand. We can't hedge for 30 years - in the US, they can. They've just got much deeper markets. They've got government bonds that have been issued out 30 years that can act as that hedge and provide that market for rates that long. We just don't have depth in our market out past sort of about five years."The US also has government-backed lending organisations Freddie Mac and Fannie Mae that helps lenders manage their interest rate risk by buying loans and selling them as mortgage-backed securities.Claire Matthews, a banking expert at Massey University, said even the US banks struggled with the interest rate risk involved. "That's why they have had the bank failures over there. Our market is so much smaller, it would become even more of an issue here."She said borrowers who signed up to a particular rate and then saw interest rates drop would not be as committed to their home loans. In the US, people could often walk away from a loan much more easily than in New Zealand.Watson said a longer-term fix could be expected to cost more because of the lack of supply and demand at that loan term."Because there isn't any trading there, there aren't any ... it'd be very hard for us to hedge, and naturally we'd have to pay more for that. So naturally you would have to pay more for your home loan."In the US at the moment, a typical 30-year interest rate fix might be about 6.75 percent.Claire Matthews says 30-year mortgage terms "could be popular" depending on the terms and conditions. Photo: Supplied/ David WiltshireMatthews said she had been approached last year by someone who wanted to offer a 30-year fix option in the New Zealand market but nothing had come of it."There are people looking at it … parties saying 'is there something we could do to have something different in the marketplace to compete'."It could be popular, depending on the terms and conditions. If you knew you could take out a 4 percent mortgage and it wasn't going to change, people could potentially be reasonably happy about that ... But if it was something that could be being made to work, it would be being made to work."Longer fixes have been offeredIn 2015, TSB offered a 10-year fixed rate at 5.95 percent, which was not taken up by many borrowers.At the time, TSB said the average one-year rate over the previous 10 years was 7.26 per cent and the average three-year rate was 7.49 per cent. BNZ was offering a seven-year rate of 6.89 per cent. In that context, the 5.95 percent fix could have seemed appealing.But anyone who took the deal might have come to regret it when interest rates fell to 2.99 percent for five years in 2020.Break fees matterA key factor for borrowers would be what would happen if they wanted to get out of a long-term fix, for example if they wanted to sell their house, Matthews said.In the US, customers can break a 30-year fix easily. But in New Zealand, when someone wants to break a fixed-term mortgage, they have to pay a break fee.This is calculated according to the amount of time left to go on the fixed term, the interest rate they have agreed to pay and the prevailing market rates.David Cunningham, chief executive of Squirrel and former chief-executive of The Co-Operative Bank, said the break costs for the TSB 10-year fix were "horrific" because of the bank hedging involved."If the customer broke the fixed term they could easily have been up for tens of thousands of dollars of break fees. Even five-year fixed terms can have very big break fees, which reflect the cost to the bank of unwinding the hedging transaction in the wholesale markets. But … if you managed to lock in a five-year fixed rate when they hit 2.99 percent about 4 years ago, you were laughing all the way to the bank."In the 1970s, the government offered low-interest loans to first-home buyers fixed for 30 years via the State Advances Corporation but the rate was reviewed every five years and relied on income remaining below a threshold.

New Zealanders’ Trust in Institutions Falls
New Zealanders’ Trust in Institutions Falls

27 September 2024, 2:44 AM

Coasties may be interested to know that trust in key institutions across Aotearoa New Zealand has taken a notable dip, according to the 2023 General Social Survey (GSS) released today by Stats NZ. This annual survey tracks the public's sense of wellbeing, satisfaction, and trust levels, shedding light on how residents feel about everything from the health system to the media.Sarah Drake, Stats NZ's wellbeing and housing statistics manager, explains, “As a result of recent global events such as COVID-19, our society has faced a number of challenges. Institutional trust, trust in other people, sense of belonging, and a sense of safety are all important measures of people feeling part of society.”While New Zealanders are still generally satisfied with their lives—scoring an average of 7.6 out of 10 in overall life satisfaction—the numbers tell a different story when it comes to trust. Trust in institutions, including the police, parliament, and the media, has dropped across the board since 2021.Trust in Key InstitutionsIn 2023, the highest trust rating went to the police, who scored an average of 7.4 out of 10, though this has dipped slightly from 7.7 in 2021. Trust in the media remains the lowest, now at 4.3, down from 4.7. The most significant decline was seen in trust for parliament, which dropped from 5.7 in 2021 to 4.9 this year.Trust in People and Sense of BelongingThe survey also measured the public’s trust in other people, with a slight decrease from 6.7 in 2021 to 6.5 in 2023. The sense of belonging to New Zealand has also declined, with the total population scoring an 8.2, down from 8.6 two years ago. Interestingly, Māori reported a stronger sense of belonging, at 8.5, compared with other groups like Asian New Zealanders, who reported a drop from 8.3 to 7.8.Safety Concerns on the RiseResidents also reported feeling less safe overall, particularly when using public transport at night or walking alone after dark. Only 42% of respondents felt safe waiting for public transport at night, compared with 49% in 2021. Similarly, just 55% felt safe walking alone in their neighbourhood after dark, down from 59% in 2021.Crime worries have also increased, particularly in regions like Auckland, Bay of Plenty, and Manawatū-Whanganui.Auckland residents reported the highest increase in worry about crime, rising to a rating of 4.5 out of 10 from 3.8 in 2021.

Daylight saving: Does an hour really make a difference?
Daylight saving: Does an hour really make a difference?

27 September 2024, 12:00 AM

Can we expect a bunch of grumpy people walking around on Sunday? And how can we take the edge of that transition? And how on earth do I get the kids to calm down when it's still light outside? Here's what the sleep experts say:It's just an hour, will it really affect us?"It does. There's really clear research out there that shows that missing out on sleep by an hour or more can lead to poorer functioning the next day," says Dr Karyn O'Keefe, from the Sleep/Wake Research Centre.That one-hour shift can make it harder to get to sleep, and hence harder to wake up, she explains. So it impacts different aspects of functioning like sleepiness, but also mood, reaction time, motivation, concentration and decision making.What happens to our brain and body clock when daylight saving switches over?Daylight saving, Dr O'Keeffe says, causes what's called "circadian disruption"."Everyone has a body clock in the brain that needs to be synchronised to the sun in order to stay healthy and function well. And of course, when we move our body our bodies to have a different sun time suddenly the internal clock in our brains is not synchronised anymore and that disruption also causes problems."The combo of this with that poor quality of sleep feels a bit like jetlag (without the joy of a holiday)."Suddenly we've made this one-hour shift... which seems like it's really small but it's enough to cause some problems."How long does it take for our body to find a new rhythm?The spring transition is the easier one - going into daylight saving time, putting the clock forward an hour "we just squash an hour out of our day"."What happens is that when we go to bed, it's like 10.30pm our body clocks are actually thinking that it's earlier than that, so we don't actually start to feel sleepier until later than we normally would - so we have trouble falling off to sleep."Then when we go to wake up in the morning our natural wake time is actually an hour later."Dr Karyn O'Keefe is a senior lecturer at the Sleep/Wake Research Centre. Photo: SuppliedIt's not such a problem on Sunday, but on Monday morning we might feel robbed of that extra hour when getting up to start the working week."We're still thinking that we should be waking an hour later with the old body clock time.""So we can be frustrated in the evening or at night and tired and groggy in the morning and have short sleep as well. It's like this combination of feeling really groggy and grotty for, um for a couple of days at least."What can I do to help my brain and body ease through it?If you're organised or a sensitive sleeper you could give sleep shifting a go - starting to adjust your body clock gradually in the days leading up to daylight savings."The way you would do that was you'd go to bed... 20 minutes earlier on Friday night, 40 minutes earlier on Saturday night and then on Sunday morning, you just wake at your usual time."That helps us sort of assist with our sleep and also make sure that we don't sleep in too much and muck up our timing of sleep."The other big thing is getting plenty of sunlight on Sunday, throwing the curtains open in the morning to soak up as much as you can."If we can do that we have a a better chance of actually synchronising our body clocks with the sun pretty fast."On the flipside, at the end of the day, avoid light, black out your bedroom and try and make it feel like bedtime.Does being old/young/healthy/stressed - play any part?"Yeah, there are a couple of things," Dr O'Keeffe says."One of the outcomes that we see sometimes with daylight saving transitions is that people who've are vulnerable to heart problems can have those problems exacerbated. So there is a little bit of research out there to show that daylight saving transitions can lead to a higher risk of having a heart event of some kind."She says people who are extreme early birds or night owls will also have a harder time picking up a new sleep pattern, rather than the average sleeper."When a person is an evening type trying to make this transition in the spring, it's really hard for them in particular to make the shift in their body clock. So it takes them longer basically to get there."It's not as easy or as comfortable as somebody who's sitting in the, like the typical pattern of, of sleep and wake."How do I get the kids to sleep when it's still light outside?"The struggle is when it is lighter in the evenings. or there's lots of the kids in the neighbourhood outside on the street playing," says baby and toddler sleep consultant Cherie Richards."We all want to be out later and longer and it's hard to unwind, so the bedtime routine is really gonna be key here."For those who have early rising kids, this daylight savings change is easy - hopefully you get a sleep in: "You can just roll with it and we're going to wake up to a hopefully later start time to the day."This is definitely the better time shift rather than the other way around. That's the nightmare of a one."Like the advice for adults, Richards suggests making sure children get lots of light exposure through the day, especially in the morning."We want to use light to our advantage. Heading out into the sunshine early in the morning and then again in the early afternoon."Then before their bedtime getting their room super dark is really important. So even though it might be light outside, we can still control the internal environment by getting some really good block out blinds."Mare sure that it is pitch black when it comes to bedtime because that's when we need the melatonin surges to kind of be strong there."Is there anything I can do to make it easier for my kids (and me?)If you have a child who is sensitive and a bit more, what Richards calls "high needs", when it comes to sleep there's some groundwork you can do to be ready for Sunday - taking a more "proactive approach".Cherie Richards helps babies and toddlers get into good sleeping habits. Photo: Supplied"What that would look like is on, you know, Monday and Tuesday say we had all of their nap and feed times 15 minutes earlier... and their bed time's going to slowly shift earlier too, so 15 minutes earlier."So if they're always in bed at 7, we we're popping them down at 6.45. Then say Wednesday and Thursday, you do it again, but it's 30 minutes earlier."So you can do it gradually... if you have more sensitive-prone kids it can really make a difference."Remember for babies who are over three months old and on a routine you have to shift their feed times as well."It's like a jolt to their whole rhythm. So, even though we're like, oh, it's only one hour, one hour is a heck of a lot at that age."But newborns, she says, you don't need to worry about, they are none the wiser.I'm already a really bad sleeper, what's going to happen to me?Anitha Patel, an insomnia and sleep care specialist, points out: "For some people who are already kind of having insomnia issues, it can obviously trigger quite a bit if you're already not sleeping too well.Anitha Patel, an insomnia and sleep care specialist. Photo: SuppliedFor these people, Patel really encourages some homework before daylight savings on Sunday."If we prep and we kind of develop what we call a sleep bank... it shouldn't have so much of an effect."She also suggests easing into Monday morning if you know you're susceptible to poor sleep. Any important meetings or tasks, things that require focus or attention, shove them to the end of the week."Ease into the whole thing," she says.And keep your sleep hygiene up to scratch - consistent wake-up times, trying not to sleep in on the weekend, sleeping away from your devices.If you really need to, you could take a power nap, but time it right."You've got to be really careful about what time you're doing it and you don't want to have it for too long."It's about 20 or 30 min - in the earlier day or earlier part of the afternoon, not too close to your bed time - that is something that's going to build up your sleep bank."So you're not going to have so much of a deficit when you actually have daylight savings."

School Holidays Begin Next Week – What To Do
School Holidays Begin Next Week – What To Do

26 September 2024, 8:14 PM

With the October school holidays starting next week, parents across the Hibiscus Coast are searching for activities to keep the kids busy. Luckily, Ōrewa Community Centre has a lineup of free, creative workshops planned to keep young minds engaged.Located at 40–46 Ōrewa Square, the centre will host fun activities every Wednesday and Thursday during the school break. Most sessions are suitable for children of all ages, with one specifically for older kids.Here’s what’s on the schedule:Wednesday, 2nd October: 1 pm – 2 pmKids can let their imaginations run wild while designing their own steampunk-themed journal covers. All supplies are included.Thursday, 3rd October: 1 pm – 2 pmThis session invites children to craft a personal time capsule, perfect for stashing away treasured memories for their future selves.Wednesday, 9th October: 1 pm – 2 pmFor kids aged 8 and above, a special steampunk jewellery-making workshop will allow participants to create bracelets and necklaces.(This event has an age restriction.)Thursday, 10th October: 1 pm – 2 pmFamilies can close out the holidays by creating a 3D family tree, a fun project that brings parents and kids together.Angela Bell, from Auckland Council, is encouraging local families to join in. “These events offer a great way for children to explore their creativity and have fun during the holidays,” she said.For more details or to register, contact Angela via email at [email protected] or call 09 377 0209.

New Research Focuses on End-of-Life Care
New Research Focuses on End-of-Life Care

26 September 2024, 7:03 PM

Coasties will soon see the results of a research project aiming to improve end-of-life care for older people. Led by Associate Professor Julie Harrison from the University of Auckland, the study focuses on helping seniors, their families, and clinicians make informed decisions regarding healthcare interventions.The project is timely as New Zealand’s healthcare system faces increasing pressure from an ageing population. Harrison, who specialises in health funding models and performance measurement within healthcare, emphasises the importance of supporting older patients and their loved ones in difficult times.Associate professor Julie Harrison (University of Auckland Business School) specialises in performance measurement within health services, health funding models and costing systems in healthcare settings.“End-of-life decisions are tough, especially in stressful situations,” says Harrison. “We want to find ways to better support seniors and their families to make choices that align with their values.”The research, funded by the Health Research Council, is being conducted at Waikato Hospital in collaboration with researchers from both the University of Auckland and the University of Waikato. The team will work closely with clinicians, patients, and families to understand the decision-making process around medical treatments like surgery or extended hospital stays.One key goal of the project is to develop pathways that allow more people to spend their final days at home, reducing the need for unnecessary hospital interventions. Harrison also points to potential cost savings that could be reinvested into other areas of the healthcare system.“A lot of healthcare costs occur at the end of life,” Harrison explains. “These decisions impact not only the individual but also the healthcare system as a whole. We hope this study will lead to better, more informed choices for everyone involved.”By examining how seniors and their families navigate difficult decisions, as well as gathering insights from those who have recently lost loved ones, the research aims to offer practical recommendations for future care.In the words of Harrison, “It’s about helping seniors and their families to understand the treatments available and choose the care pathway that fits their needs.”

Biosecurity Ramps Up for School Holidays
Biosecurity Ramps Up for School Holidays

25 September 2024, 10:29 PM

As the September school holidays approach, Coasties can expect busy skies and a stronger biosecurity presence at Auckland Airport. With international arrivals projected to rise by 2% compared to last year’s 217,195 passengers, Biosecurity New Zealand is stepping up efforts to protect the country’s borders from potential threats.Mike Inglis, Biosecurity New Zealand commissioner, highlighted the preparations underway. “We’re continuing to recruit more frontline border officers, and so far, 70 new trainees have joined, with 51 stationed in Auckland.” Inglis emphasised the need for a solid biosecurity force to handle the increased traveler numbers, which have grown steadily since COVID-19 restrictions eased.In August, biosecurity officers nationwide screened over 474,000 passengers, an increase from the same month last year. The team also seized 7,536 risk items, including common threats like fresh produce, meat products, and used equipment. Among the more unusual finds were dried cow dung patties and a haul of giant clams. "These risk items could introduce dangerous pests, such as the exotic fruit fly or brown marmorated stink bug, which could devastate New Zealand's $54 billion primary sector," Inglis said.To streamline the process, Biosecurity New Zealand rolled out a new risk assessment system at Auckland Airport last year. Passengers with nothing to declare are assessed before collecting their baggage, allowing for faster exits. "This initiative has cut average screening times down to 5 minutes, compared to a peak of over 13 minutes earlier last year," Inglis noted.As more international passengers are expected during the holidays, Biosecurity New Zealand plans to trial similar systems at airports across the country to improve efficiency while maintaining strict biosecurity standards.The upcoming holiday season will test these preparations, but the team remains focused on safeguarding New Zealand from biosecurity risks, ensuring a smooth and safe entry for all passengers.

North Harbour Stadium’s Future in Local Hands
North Harbour Stadium’s Future in Local Hands

25 September 2024, 8:45 PM

The North Harbour Stadium’s future is currently in development. Auckland Council’s Long-term Plan noted the stadium was an “important asset” that requires adequate maintenance and management. In May, it was reported the chairs and deputy chairs of the Hibiscus and Bays and Upper Harbour local boards were tasked with leading a local working group, known as the North Harbour Stadium Steering Group, to organise a solution for the stadium. Debbie Klein, Local Communications Specialist for the Hibiscus and Bays Local Board, shares that the working group’s solution is a two-stage approach.The first stage seeks expressions of interest for an operator to manage the stadium and precinct. This approach is locally led, working alongside the current stadium manager, Tātaki Auckland Unlimited. The goal is to have an operator in place from July 2025.The second stage runs concurrently, and will develop a model for the stadium and precinct’s ownership, funding, governance and operation by December 2026. In the meantime, the steering group will regularly update the mayor and councillors on the work’s progress. The next update for stage one will be in December. The Stadium has a 25,000-seat capacity and opened in 1997, being home to North Harbour Rugby and many other clubs. In recent years it has suffered from disuse compared to venues like Eden Park and Go Media Stadium Mount Smart. Aucklanders were previously asked for their thoughts on the stadium’s future via the Council’s Have Your Say website in March. You can find more detailed information regarding this project in the Governing Body meeting agenda of August 29 and the Hibiscus Local Board’s Chair’s Message.

Explained: Auckland’s unfinished luxury skyscraper
Explained: Auckland’s unfinished luxury skyscraper

25 September 2024, 7:20 PM

By Lloyd Burr, StuffIt was promised as a magnificent sculptural addition to Auckland that will deliver new levels of luxury and glamour to the city's downtown.But all the Seascape development has delivered so far is a skeletal eyesore, a legal spat, and council inspectors checking it out every month to make sure it's not a danger to those navigating the streets below.So what went wrong and who's to blame? And will Auckland's second tallest building ever be finished?The projectIt's been on the cards for more than a decade, with Chinese developer Shundi Customs and Chinese builder China Construction joining forces in 2015. Contracts were signed in 2017 but Covid saw delays and contract extensions.It's called 'Seascape' for a simple reason: residents look out at a seascape, not just a landscape and cityscape. The views over the Waitemata Harbour are epic and every single apartment will get to see them as they are all north facing.The entire Seascape project occupies four sections on Customs Street East (numbers 69, 71, 87, and 95-105) but the new tower itself only sits on numbers 71 and 87. On the eastern side of the precinct (on the 95-105 section) is Ballantyne House, a 12-storey building that's being refurbished and quake-strengthened. It will become a hotel. On the western side (on section 69) is a heritage building known as Britomart Hotel which will also be refurbished.It will be New Zealand's tallest building behind Auckland's Sky Tower, and is only seven metres taller than the current tallest building PwC Tower just down the road from Seascape at Commercial Bay. It will beat the incumbent tallest residential building The Pacifica by 10 metres.However, Seascape's claim to be the tallest building (other than the Sky Tower) will be surpassed by the 209 metre NDG Ritz Carlton Hotel building proposed near the new Aotea CRL Station.Seascape residential tower in Auckland. Photo: Sharon BrettkellyFigures:187 metres tall52 stories (48 are occupiable)5 underground stories of basement car parks2 car lifts for VIP car parks5 penthouses ($22m each)10 sub-penthouses221 apartments (options are: studio, one bedroom, two bedroom duplex, and three bedroom)5 stories of retail and offices1 grand lobby linking Customs Street East to Gore Street Lane1 swimming pool and gymCost: $300mThe structure's strength comes from the impressive outer shell of criss-crossing steel which is called a form and lattice mega-brace. This allows better views. There's about 10,000 tonnes of steel for this part of the structure from three steel mills in China: Nanjing Iron and Steel, Jiangyin Xingcheng Special Steel Works, and Nanyang Hanye Steel. The mega-brace structure has been completed and the tower reached its finished height (construction lingo: 'topped out') in June 2024.Finish date: Originally it was 2021, then it became 2022, then 2023, then most recently mid 2024 (which has been surpassed). There is no new date for completion.FUN FACT: Cranes. There are two tower cranes attached to the eastern and western sides of the building. Both are made by German machinery giant Liebherr. One is a 280 HC-L 12/24 which has a maximum lifting capacity of 24 tonnes and a 40m radius. The other is the bigger 542 HC-L 18/36 which can lift a maximum of 36 tonnes with a 50m radius.Meet the playersDeveloper: Shundi Customs. It's a subsidiary of Shundi Group, a global development company headquartered in China's Shanghai. It has a number of New Zealand projects including apartment project Te Tauoma in Auckland's Stonefields, and a proposed (and delayed) luxury hotel in Queenstown.Builder: China Construction. It's a subsidiary of the world's biggest construction firm China State Construction Engineering Corporation. It built the Shanghai World Financial Centre (the one that looks like a giant bottle opener), Beijing's Olympic aquatic venue known as the Water Cube, and Donald Trump's golf club in Dubai. CSCEC has built dams, bridges, stadia, motorways, railways, airports). It's relatively new to our shores but was part of Auckland's new Park Hyatt Hotel in partnership with Hawkins Construction.Architect: Peddle Thorp. Touted as one of Australasia's leading architect firms, Peddle Thorp has done a heap of high-profile, recognisable buildings in New Zealand. They include Wellington's Meridian Energy HQ, Waikato Stadium, and Christchurch's new ANZ Centre. Why has construction stopped?In short, the developer and builder have had a falling out. China Construction claims it's owed $30m(ish) from Shundi Customs and it's been coming to a head over the last few months.Signs of the stoush were noticeable on site with the pace of construction work beginning to slow in May. By early August, the council had been notified that work on the building had been "paused". Then on August 21, China Construction had had enough and issued a stop work notice, telling its 25 subcontractors to leave the site.The current relationship is a stark contrast to how it started. Seascape's website says: "To ensure Seascape is built with the speed and expertise required for such a tall tower, Shundi have procured China Construction with whom they share a strong working relationship."You can buy with confidence that Shundi will achieve this magnificent building within the stated programme"It goes on to say "Shundi have chosen to engage one of the world's leading builders to ensure Seascape is delivered on time and on budget".How times have changed.Builders working on Auckland's Seascape tower were told to down tools in late August. Photo: Sharon BrettkellyThe Building Disputes TribunalChina Construction took Shundi Customs to the Building Disputes Tribunal (not a government agency but an authorised nominating authority under the Construction Contracts Act 2002), which appointed adjudicator John Green to investigate. Green has been adjudicating property disputes for nearly 30 years and has overseen more than 1200 cases, including many relating to the leaky building saga.His conclusion? Shundi Customs must pay China Construction $33,019,696.01 plus interest, according to reports from The NZ Herald. The law requires that amount to be paid within two working days. He also reportedly implemented what's called a 'charging order' which allows China Construction to apply for Shundi Customs to be blocked from receiving money from people who have purchased Seascape apartments.The High CourtShundi isn't accepting Green's determination and is seeking a judicial review of the case at the High Court at Auckland. The first hearing is on 27 September.Stuff put a number of questions and an interview request to Shundi Customs but its marketing and sales manager Tashunka Bolton declined both."Thank you for reaching out," he says. "As you may have heard, Seascape's construction has currently been put on hold due to formal disputes raised with the main contractor. We don't have any comment to give as this is before the Court, and because all these information are confidential at moment (sic)."China Construction is a little more difficult to get comment from. Their China-based head office and Australia-based Oceania office haven't replied to requests for comment.Both companies have engaged top legal teams, with Bell Gully representing Shundi Customs. A Bell Gully spokesperson told Stuff: "We don't have any comment given the matter is currently before the Court, and because the adjudication to which the matter relates is confidential under the Construction Contracts Act."It's understood Dentons Kensington Swan is acting for China Construction but is yet to confirm that with Stuff.Architect Peddle Thorp's director Bradley Luck is optimistic about the project restarting soon."As far as we are aware Shundi are committed to completing the project and have their team working to that end," he told Stuff."As with all other challenges this project has faced, Shundi have found a way forward and we believe that they will find a way through this challenge to complete what will be a truly magnificent addition to the Auckland skyline."Is the unfinished building safe?There are a lot of temporary fixtures on site including vast scaffolding structures, netting, and two cranes. Given it's not yet fully glazed, the building isn't watertight meaning it's exposed to seaspray, wind, and rain. However, Auckland Council says it's safe.Even though construction has halted, the safety obligations for China Construction haven't. The project is still inspected monthly by Auckland Council, led by its Building Inspection Manager Jeff Fahrensohn.The last inspection took place on 30 August and involves them starting at the top of the building and walking their way down. They check everything to ensure there's no deterioration of steel, concrete, and other structural elements.Some of the more technical inspections are done independently by specialists, including a weekly scaffolding check, a monthly fire hydrant check, and mandatory check on the cranes."There was some loose scaffolding we asked them to remove," he says. "But no real areas of concern".How long will it be safe in this condition? At least another couple of years, Fahrensohn told RNZ."The building is designed to be open to the elements during construction. Five years would be a comfortable time-frame. The steel has a temporary coating on it. The exoskeleton has its finished coating which will last 50 years," he says."If things started getting really bad in terms of deterioration and safety, we would have to act."Once the spat is sorted, he estimates it will take at least three months to get everyone back on site and construction restarted. He doesn't want to estimate a finish time frame.Other construction delaysThere have been a number of delays throughout the project's construction (which isn't unusual for complex projects like this).Fire safety plans. In early 2017, the council raised concerns about Seascape's fire safety plans and asked MBIE to look into it in 2018. An element of this was plans for just one fire staircase for the top five levels, instead of the required two. The following year, MBIE concluded Seascape's fire safety plans didn't comply with building regulations. Shundi had to redesign them and apply for a new consent, which was granted.Basement walls. Seascape features the deepest basement in Auckland, plunging 5 stories - or 21 metres - below ground level. They built these in 2017 by excavating soil around the perimetre, lowering huge pre-tied steel cages into them, and pouring cement into them. The soil essentially acted as a mould. Once the cement had fully set, the soil within the building's footprint was excavated.But in 2018, six sections of these walls - called diaphragms - were identified as needing remediation work. During construction, the cement had been waiting in the truck too long and had started to set. They used it anyway and when the soil was excavated to reveal the wall, there were hollows and air bubbles in the concrete.In some cases, reinforcing steel was visible, and in others, soil had mixed with the cement when it was poured. Consultancy company Beca was tasked by the council to check it out and its report found numerous deficiencies, concluding the strength and durability of the walls may be below building regulations.Remediation work was done and signed off by the council in March 2021.Has something like this happened before?It's happened once on this scale before back in the 70s and 80s in Wellington. The Bank of New Zealand Centre (subsequently the State Insurance Building, and now called the Aon Tower) was left half-finished for 10 years. During construction in 1974, there was a standoff between the Muldoon Government and the Boilermakers Union (which represented the workers) and they walked off the job. The strike lasted an entire decade, leaving a steel skeleton languishing on the capital's skyline. There's a Facebook page dedicated to its construction with great pics.

Government Reinstates Offshore Petroleum Exploration
Government Reinstates Offshore Petroleum Exploration

24 September 2024, 11:00 PM

Locals, here's something to keep an eye on—offshore petroleum exploration is making a comeback. The Coalition Government has introduced the Crown Minerals Amendment Bill, aimed at reinstating offshore oil and gas exploration, a key step in addressing New Zealand’s ongoing energy security concerns.Resources Minister Shane Jones highlighted the urgency of the situation, stating, “Natural gas is critical to a secure and affordable supply of energy in New Zealand—now and into the future.” The Bill reverses the 2018 ban on new oil and gas exploration beyond onshore Taranaki, a move that Jones says will reinvigorate investment in the sector and ensure stable energy supplies for Kiwis.The current decline in New Zealand's gas fields has led to rising costs for consumers and industrial users alike. Limited gas supply has been squeezing large industrial companies, some of which have halted production or shut down entirely due to skyrocketing energy prices. The Bill aims to provide more certainty for investors and encourage increased production to mitigate these issues.On top of reviving offshore exploration, the Bill proposes changes to decommissioning regulations to better align with international best practices, giving the sector the confidence to operate without excessive red tape. "This legislation will better balance the regulatory burden and ensure long-term energy affordability," Jones added.Alongside these changes, the Bill also introduces new provisions to simplify the permitting process for small-scale gold mining, offering a more streamlined approach to non-commercial activities.The Bill is set to have its first reading today, and the Government aims to pass it by the end of the year following a condensed select committee process. This is part of a broader strategy to ensure New Zealand’s energy future remains secure while supporting regional economies and job creation.

Thousands flock to Auckland's newest mall
Thousands flock to Auckland's newest mall

24 September 2024, 6:57 PM

Auckland shoppers and transiting travellers have continued to flock to the city's newest outlet mall - Mānawa Bay - despite traffic woes over the precincts' first weekend since opening.Thousands of shoppers visited the outlet - just three kilometres from Auckland Airport - causing long delays along the main highway to the airport on Saturday and Sunday.Around midday on Monday, the mall's 1400 car parks appeared to be nearly fully occupied, long queues remained outside a boutique chocolate store, and the food court was bustling with people.While some told RNZ that they picked a working day to avoid the traffic, others like Avi, who had popped in over his lunch break, said traffic was still slow coming off the nearest motorway exit."Coming in, obviously there was a bit of a wait to get off the motorway, so immediately the traffic starts, and car parking was pretty full, and pretty hard to find parking, but you expect that - it's a new entity that's opened up," he said.Treza Mekhaiel, who had driven from the North Shore, said it was great to have a local outlet on par with ones she had visited overseas."We usually go to the Gold Coast and Brisbane, and the outlets there and it reminds us so much of that, so I was just telling my husband there's no point going to the outlets there anymore, we've got it here which is fantastic."Several shoppers told RNZ the outlet was an "upgraded" version of Onehunga's Dress Smart, and one said it was "glorified Onehunga".Rachel Brennan, right. Photo: RNZ / Lucy XiaHowever, some who were making a stop at the outlet before taking a flight, said the lack of a free luggage storage service was disappointing.Rachel Brennan had just come off a cruise and had a few hours to kill before her flight home to Christchurch.She and her friends felt it was not worthwhile paying $16 to store a single luggage case."If they really wanted to attract lots of people travelling back to the airport, if they did a receipt - if you spend money you get your bag held for free - it would be huge," Brennan said.Others were questioning if mega stores and shopping precincts like Mānawa Bay and Costco were a good thing for New Zealand.Mt Eden resident Dallas Young, who had come to check out what the hype was about, said he wondered how long the buzz would last."Does New Zealand really actually need another one of these? I mean, does that place there, another Rodd and Gunn, is that still gonna be there in two years' time, or are they gonna find it very hard, because the gloss will wear off and the buzz will wear off?"Photo: RNZ / Lucy XiaMeanwhile, a spokesperson speaking on behalf of both Auckland Airport and Mānawa Bay said they were well prepared to manage the increased traffic flow during this period.They said they believe traffic volumes will ease in the coming weeks.Restrictions have been placed on Auckland Airport's construction workforce's use of the airport roads heading south during peak periods, they said.Auckland Council's head of resource consents James Hassall said the resource consent submitted to council for Mānawa Bay had included a "detailed transport assessment".He said the council required a number of conditions to be fulfilled, relating to access, parking and traffic circulation within and around the site.Hassall said they would continue to monitor the site to assess whether the consent conditions need adjusting - but the council did not expect to see the level of traffic seen over the weekend long term.Photo: RNZ / Lucy Xia

New Work-from-Home Guidance for Public Servants
New Work-from-Home Guidance for Public Servants

23 September 2024, 11:56 PM

The Government is encouraging more public servants to return to their workplaces daily, aiming to reinforce this message among chief executives. Public Service Minister Nicola Willis announced updated guidance that specifies working from home is not an entitlement but rather requires mutual agreement and monitoring.“While carefully defined working from home arrangements can benefit workers and employers, if the pendulum swings too far in favour of working from home, there are downsides for employers and employees,” Willis stated. She highlighted potential impacts on Central Business District (CBD) retailers, restaurants, and cafes, emphasising the importance of in-person collaboration.Willis explained that face-to-face interactions foster better communication, skill-sharing, and relationship-building. “It supports younger and newer employees to observe, learn from and form connections with their more experienced colleagues,” she added.In light of these considerations, the Minister has directed the Public Service Commissioner to communicate the Government’s expectations to public service chief executives and to issue revised guidance on work-from-home policies. The new guidelines outline three main expectations:Working from home arrangements are not an entitlement and should be agreed upon by both the employee and the employer.Such arrangements should only be approved if they do not compromise employee performance and agency objectives.Agencies must actively monitor the prevalence and impact of working from home agreements and regularly report this information to the Public Service Commission.Currently, data regarding the prevalence of work-from-home arrangements is not centrally collected by the Public Service Commission. Willis has called for improved data collection practices to allow for better comparison across agencies.“I intend to then make this information public in a user-friendly way early next year,” she said, underscoring the Government’s commitment to transparency and accountability in public service employment practices.

Library Renovations Supporting Growing Coast Community
Library Renovations Supporting Growing Coast Community

23 September 2024, 8:32 PM

Visitors to the Ōrewa Library have increased to more than 235,000 a year. In response to this, the Hibiscus Coast and Bays Local Board has approved an extensive upgrade to cater for the growing demand. Totalling $5.5 million, the upgrades are scheduled to be completed by June next year. Auckland Council General Manager Parks and Community Facilities Taryn Crewe says construction progress has largely been concurrent with the original timeline. “Progress has been steady, and while the foundation work took slightly longer than anticipated, it won’t delay the timeline by much. Fortunately, the extra foundation work has only added about a week to the timeline.”Albany Ward Councillor John Watson comments on some of the improvements the upgrades would contribute to. He says these improvements are “more important than ever” to providing spaces and facilities useful to meeting the needs of the community. “There’s just going to be more space for people to move around in – at the moment, it can be pretty cramped if there’s a lot of people inside. Specifically, there will be a large children’s library downstairs with plenty of room for collections and programmes – for young and old alike.”Completed looks of renovations provided by Auckland Council.Emphasis has also been placed on accessibility, with an added lift to grant access to the mezzanine floor intended to improve disability access. “A more open downstairs area will provide better sight-lines with lower shelves and better spacing of fixtures and fittings.” Finally, an extra 240m2 of space has been added to extend the mezzanine floor. These new spaces will be for meetings and study spaces for students. This will be easily adapted for different situations, just like at Whangaparaoa Library, where events, exhibitions and community gatherings can be held because of the larger open areas.

eGates Now Open to EU Travellers
eGates Now Open to EU Travellers

23 September 2024, 7:31 PM

As the holiday season approaches, locals are excited to welcome friends and family from across the European Union. From this week, ePassport holders from all 27 EU Member States can now use New Zealand’s automated eGates on arrival and departure, making travel more convenient than ever.This recent change aligns with Customs’ ongoing efforts to streamline border processing for international travellers. In May, the age eligibility for using eGates was also lowered from 12 to 10 years, bringing New Zealand in line with Australia and the United Kingdom. Now, travellers from a total of 37 countries can access these efficient border processing systems, which account for over 85 percent of all arriving and departing passengers in New Zealand.Dana McDonald, Group Manager of Border Operations, expressed enthusiasm about the expansion. “This latest change meets Customs’ previously signalled plan to open eligibility to all European Union Member States,” he said. “We intend to open eGates to even more countries later in the year, subject to feasibility trials proving successful.”The eGates, which first opened in New Zealand in 2009, use advanced biometric software and information from ePassports to perform essential checks in mere seconds. This technology allows Customs frontline officers to focus on other important tasks, such as identifying high-risk travellers.“Our connections with the European Union are strong, and New Zealand is a popular destination for European visitors,” McDonald noted. “This expansion to all EU Member States is further good news for travellers from that part of the world.”With the eGates now available to ePassport holders aged 10 and older, locals can look forward to smoother travels for their guests, enhancing the experience of visiting the stunning Hibiscus Coast.

Students using artificial intelligence to cheat on assessments, teachers warn
Students using artificial intelligence to cheat on assessments, teachers warn

23 September 2024, 2:01 AM

Secondary teachers warn students are increasingly using artificial intelligence to cheat on their school work - and some are getting away with it.They told RNZ that AI had huge potential for improving education, but misuse of the technology was a big problem.Schools were using computer programmes to scan essays and reports for evidence of AI use, but teachers said it was not foolproof.St Patrick's College Wellington head of science Doug Walker said misuse of AI had grown rapidly and the school now ran an AI-detector over all computer-based essays and reports."If I gave students just free rein, I suspect the majority of them would use AI," he said."Most often I'm dealing with cases where students have been told not to use it and then you're investigating what has happened in terms of using AI. That can be quite hard to unpick and to work back through to see how much of the work is the student's own or how much has used or relied on AI."AI detection tools could give wildly different estimates of the likelihood that a report or essay contained AI-generated content, he said.If those tools raised a red flag, Walker said he looked at the various changes and edits a student had made to their work.In one recent instance, this checking process revealed a paragraph giving instructions to Chat GPT to reword the essay it had created in the style of a 17-year-old.A common tell-tale sign was copying and pasting of large blocks of text.Students were, however, becoming more sophisticated, Walker said."They've got to the stage now where they've realised that can be spotted quite easily and so now they'll have an AI-generated response and then physically type that AI-generated response so that you can't see large blocks of text suddenly appearing in the history of the student's work," he said."Some students are genuinely using it to try and generate sources, like websites, to go to learn about something. Some would be using it to help break down a more complex concept into language that's more suitable for their understanding."But I think there's a very fine line between that and then having it generate the report and then claiming that understanding as their own," Walker said.Auckland English teacher Kit Willett said he got a shock after as many as one in five students misused AI for assessments early last year."I haven't seen anything on that scale. There has always been plagiarism and cheating, but when tools like this are so accessible and so easy to use and so easy to generate large amounts of content, it becomes a lot easier to plagiarise."Onslow College deputy principal Michael Bangma said those students who had been caught using AI to do their work were just the tip of the iceberg."For every piece of work that is detected, there'd be a lot that's not detected in every school - I'd be pretty confident of that. But I think some schools are saying, 'Oh well, we all just have to do it on pen and paper.' That's just going backwards and trying to deny the future."Westlake Girls High School science, technology and maths coordinator and fellow with Unesco's International Research Centre on Artificial Intelligence, Susana Tomaz, said problems with misuse were over-stated."We get stuck on the misuse and and a lot of those progressive conversations just stop there on the plagiarism. Research has shown that AI has not increased plagiarism - it's just another way of plagiarising."The Education Ministry said both it and the Qualifications Authority had advice for teachers on AI and the level of acceptable use.But Hamilton secondary school teacher Benny Pan said students and teachers needed more."We don't have national guidance... [and] because we don't have that, students feel like they can do whatever they want and because educators don't know what is right, what is wrong or what is allowed, what is not allowed, it's pretty hard to judge what is misuse or not sometimes."Pan said he and other educators were working through the AI Forum to fill the gap."You will see many passionate educators working on this," he said.An AI-generated image used by pupils at Maungatapu School in Tauranga to illustrate a story about Maui and how he stole the sun. Photo: Maungatapu School / suppliedThreat to creativity?At Tauranga's Maungatapu School, the seven and eight-year-olds of Room 14 created a highly polished picture and song about the legend of Maui stealing fire.Or did they?Teacher Chris Dixon said his class wrote their own versions of the story and then used AI to improve and edit their stories, create a song and illustrate it."The stories had been changed - these wonderful pieces of writing - but you couldn't tell they were ever written by the child; [they had] completely lost their voice," he said."We had some very interesting conversations around, 'Is this still your work?' [and] 'You're really proud of this - but is it really yours?"Some of his pupils said the work was no longer theirs, but others were delighted with the results and wanted to show their parents.It was a great way to get the kids thinking, but Dixon said he was worried about the effects on children's creativity."There needs to be a space for children to develop creativity themselves. I don't want to see that replaced by machine learning or an artificial intelligence tool."If it's used to enhance learning, that's fantastic - as long as it's not taking away the skills that children are developing at this age."It would normally take a class weeks to illustrate a story, but using AI the work was done in about an hour, with very high production values, Dixon said."Why would we go to the effort of drawing when we can use a tool to do it for us?"

Medsafe Updates Guidance on Nitrous Oxide Use
Medsafe Updates Guidance on Nitrous Oxide Use

22 September 2024, 8:59 PM

Locals across the Hibiscus Coast should be aware of a recent update from Medsafe regarding the misuse of nitrous oxide, often referred to as “laughing gas.” As concerns about its recreational use grow, Medsafe has issued updated guidance aimed at clarifying the legalities surrounding the sale and use of the substance.Medsafe, New Zealand's regulatory authority for medicines and medical devices, has confirmed that when nitrous oxide is sold with the intention of inducing a psychoactive effect, the Psychoactive Substances Act 2013 comes into play. Under this law, no products containing nitrous oxide have been approved for recreational use. This means selling or possessing the substance for such purposes is now clearly illegal, with harsh penalties for those who break the law.In its statement, Medsafe warns, “People who sell, offer to sell, or possess nitrous oxide for recreational use may face up to two years imprisonment or a fine of up to $500,000 for companies.” Additionally, individuals found in possession of nitrous oxide for recreational use could face fines up to $500.For some time, nitrous oxide has been viewed as a medicine under New Zealand law when used for inhalation in therapeutic settings. However, as the substance has become more popular for recreational use, Medsafe has shifted its stance to regulate these activities under the Psychoactive Substances Act. This change comes amid increasing public concern over the drug’s potential for harm.Medsafe also advises against recreational use of nitrous oxide due to its serious health risks. These risks can include dizziness, loss of coordination, and in more severe cases, long-term neurological damage or even death. “Using nitrous oxide can lead to dangerous situations, particularly when people perform tasks under its influence,” Medsafe cautioned.The move is part of a broader effort to curb the rising misuse of nitrous oxide in New Zealand, and Medsafe’s guidance serves as a reminder for locals to stay informed about the risks associated with psychoactive substances.

Auckland Transport officers need to be deployed outside of the central city - driver
Auckland Transport officers need to be deployed outside of the central city - driver

22 September 2024, 7:14 PM

New transport officers are not deployed where they need to be to prevent attacks, an Auckland bus driver says.Violence and aggression on public transport, and against operators, have been on the rise in Auckland. The latest numbers of risk events reported by Auckland Transport operators from July showed a 35 percent increase on the previous month, with 27 cases reported across the month.The majority of those, over 80 percent, were violence, threats or aggression.The bus driver, who did not want to be named, said drivers were powerless to stop disorderly passengers from getting onboard when they did not pay a fare. He said drivers were being put in dangerous situations with aggressive passengers "once a week"."We are not allowed to refuse to [take] a ride," he said. "Auckland Transport ask us to just record that on the console. Because there are no checks on these people, these people come back [and] create problems."He said if a driver was to refuse, they put themselves at risk of getting beaten up.Auckland Transport recently debuted newly trained transport officers, bringing the workforce up to about 60. But the bus driver told RNZ he had not seen a transport officer on any of the routes outside of central Auckland."[Transport officers] have the authority to take them off the bus, give them fines for evading fares. So when these fare evaders see them regularly, they won't coming on the back on the bus, or they will be willing to pay."He said without a visible officer presence, passengers were encouraged to not pay and have unruly behaviour.Auckland Transport public transport services operations manager Duncan McGrory said transport officers were deployed across buses, trains and ferries, and worked between stations, seven days a week.He said there were between 19 and 22 officers on the network at any given time - but with 1.6 million public transport trips a week in the city, it was impossible to cover the entire network."You could argue that there's not enough, but I don't think we could ever find enough transport officers to cover every single trip on bus, ferry and train that we do."McGrory said fare evasions had increased since the Covid-19 pandemic - likely due to the removal of cash fares to minimise contact, which was causing risks for drivers from thefts."We would prefer that everybody pay a fare - but at the same time, if questioning someone about paying a fare is going to cause an issue, then we tell the operators 'just let them ride for free'.""There's lots of arguments about 'everybody needs to pay' and we understand that and agree with that, but at the end of the day, drivers' safety is our priority."Protective screens for bus drivers were fitted to all new buses, but 80 percent of the fleet needed screens retrofitted, which McGrory said was a longer process.Sixty screens would be installed over the next two to three months, and 300 over the first half of 2025."It's a society-based issue, it's nothing that were doing or that anyone's doing in particular. There just seems to be a feeling at the moment from a small demographic of our society that they should be able to ride public transport for free."

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