THURSDAY, SEPTEMBER 10, 2015 I THE DOMINIONPOST I dompost.co.nz

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NZX 50 NZ$/US$ NZ$/A$ 90 DAY BILLS OIL 5671.42 63.42 90.39 2.67 49.25 Time to fix your loan, but for how long?

SUSAN EDMUNDS said while special rates such BNZ Six months was a happy me- fall. ‘‘There is more chance of reductions.’’ rate for 4.39 per cent. We haven’t and ASB’s 4.35 per cent grabbed dium, he said – short enough to be rates going up than keep coming Her colleague, David Tripe, seen the bottom yet, in my MORTGAGE interest rates are headlines, they would not suit able to take advantage of other down. They can’t keep coming said that five-year rates looked opinion.’’ falling as banks compete for their many borrowers. specials as they came up but not down, how low can we go?’’ almost as low as they would go. Patten said banks had the mar- slice of the home loan market. The one-year term was an un- so long that a borrower risked He said it was possible short- The lowest in the market at the gin to cut rates. ‘‘It’s just whether Another flurry of rate-cutting is comfortable fit for some. coming off the fixed term after term fixed rates would get below 4 moment is 5.09 per cent, from they have the desire. It only takes likely if the official cash rate ‘‘I recommend sticking to six rates had already started rising per cent by the end of the year as ASB. one to get into a competition and (OCR) is cut, as widely predicted, months fixed. That gives you the again. some predicted. Tripe said the Reserve Bank’s everyone starts. I see five-year yesterday. ability to see through the next Patten said two- or three-year ‘‘But at the end of the day if you forecast suggested the current rates getting under 5 per cent. Depending on which rate you three OCR announcements. One rates were another option if are going to wait on floating and downturn in export prices would That’s what I’d be watching for.’’ take, the repayments on a $500,000 year is a long time in finance, a lot borrowers were happy with them. then fix, the gains are negligible.’’ be temporary and they would pick But Matthews cautioned mortgage can be anything from can happen in that period. If you Rates range from 4.65 at Claire Matthews, a banking ex- up again next year. against trying to time the market. $3122 at the cheapest rate in the fix for six months, within four you Kiwibank to 5.25 per cent at ANZ pert at Massey University, said ‘‘That would mean the five-year ‘‘Borrowers should be thinking market of 4.35 per cent fixed for are in the timeframe where you for two years. The cheapest three- further reductions in the official rate may be as low as it is going to about the implications of their de- one year, to $3727, if you stay float- are able to refix if there is a turn- year rate at the major banks is 4.79 cash rate were likely over the rest get.’’ But Patten cautioned against cision to fix in terms of how their ing at the most expensive main around, which could easily hap- per cent at ASB. of this year. fixing for the longest terms unless loan will then operate.’’ bank rate of 6.5 per cent. pen.’’ David Hart, a mortgage broker ‘‘There’s the question of how certainty was very important for a But with rates at record lows, is He said floating rates, of be- and former head of Loan Market, long interest rates will stay down borrower’s budget. Claire Matthews, a banking expert at now the time to fix, or is there tween 5.99 per cent and 6.5 per said it seemed sensible to fix. before they increase again. Fixed ‘‘If we’re going to end up in a Massey University, says further further for them to fall? cent at the major banks, were too But he did not share Patten’s rates currently are looking good, position similar to Australia, in reductions in the official cash rate are Mortgage broker Bruce Patten expensive to justify not fixing. certainty that rates had further to but there could still be further Australia you can get a five-year likely over the rest of this year.

BUSINESS BRIEFS Economic Bus driver wrongly fired A Dunedin bus driver sacked for benefits to letting his wife ride for free has won a $10,000 payout from his former employer. Kevin Hellyer, a bus driver with Go Bus Transport, was dismissed in August 2014 but won compassion his case at the Employment Relations Authority (ERA). Go Bus Transport was ordered to pay $4676 for lost wages, $374 for RICHARD MEADOWS holiday pay, $140 for KiwiSaver contributions, $4800 in ECONOMISTS say the long term compensation, plus interest and benefits of taking in refugees need costs associated with his case. to become as much a part of the debate as the upfront costs. The Government has bowed to Bubble coming public pressure, agreeing to re- Auckland is heading for a housing settle 750 people fleeing war in bubble from falling interest rates Syria over the next 21⁄2 years. and rising hopes of housing However, National has already intensification, the city’s chief said it will block legislation to ex- economist Chris Parker warns. As pand the quota beyond the one-off of July, Auckland house prices had intake. risen 20 per cent in the past year to Prime Minister John Key $735,000. claims each refugee costs more Shamubeel Eaqub than $80,000 in health, housing, education, immigration and social ‘‘The thing we need to bear in Shoppers at one of the Xiamen Seashine Group’s supermarkets visit the dedicated New Zealand product section. Hi-tech Kashin development. mind is [refugees] are coming out ASB’s Kashin piggy bank has been But economist Shamubeel of a trauma situation, and so given a digital makeover. The Eaqub said the benefits side of the they’re different to any other elephant-shaped moneybox, which equation was missing. migrants.’’ Chinese supermarket opens NZ section first appeared in 1964, will no ‘‘The money spent is seen Spoonley said refugees were longer rattle with carefully hoarded purely as a cost, and not as an still likely to make a net positive loose change. It will however let investment.’’ contribution, but over a longer COLLETTE DEVLIN invited Seashine bosses to visit its loose a trumpet each time its owner That contrasted with other timeframe to adjust for resettle- IN CHINA vineyard in May and only a few uses it, displaying the bank account areas of Government spending, ment. FROM WELLINGTON WITH LOVE months later the New Zealand balance on a screen on its such as sport, where the benefits He pointed to Jewish refugees A MAJOR Chinese supermarket A powerful group of civic and business leaders are in China in a bid to wine was being sold in the Sea- stomach.The new box, called were trumpeted. arriving during World War II and chain, which can fast track attract investment into the capital and beyond. The 70-strong delegation shine store. ‘Clever Kash’, lets parents swipe ‘‘We’ve got to be consistent. If Vietnamese fleeing the Vietnam importing, is on the hunt for more attending the inaugural New Zealand-China Mayoral Forum includes 12 Hastings Mayor and Local Gov- virtual notes and coins across from the Rugby World Cup is worth so War as examples of strong and in- Kiwi products to fill its shelves. mayors from across New Zealand. Also in China are some of Wellington’s ernment New Zealand president the ASB mobile banking app. many billions of dollars to the dustrious communities. On Tuesday the Xiamen Sea- key business figures, including Wellington Company head Ian Cassels, Lawrence Yule said the importing economy, I bet refugees are worth Spoonley said the most signifi- shine Group opened its first New Willis Bond director David McGuinness, Port Nicholson Block chief process usually took more than a a lot more.’’ cant consideration was the hu- Zealand products section, selling executive Jason Fox and Morrison & Co chairman Rob Morrison. year but because of the special Tourism key Eaqub said the international manitarian argument. 189 Kiwi items. Projects under discussion include extending the Wellington Airport, the economic zone consideration, it Nelson needs to focus on its evidence was that refugees’ net ‘‘As a wealthy, advanced Seashine vice general manager building of a convention centre and redevelopment of Shelly Bay with took less time. strongest assets, including tourism, economic impact could be posi- country, we should be playing the Xie Yin said New Zealand Chinese investors. ‘‘Seashine came to Wellington to strengthen its economy, says tive, but only with good resettle- role of good citizens.’’ products were highly valued and in May and Wellington reached ANZ chief economist Cameron ment processes. Refugee advocate Murdoch Ste- there was room for many more. out to the rest of New Zealand to Bagrie. The economist also ‘‘It’s not that we’re doing a bad phens, lead researcher for Doing The opening of the New Zea- expand trade cooperation with processing, fresh food and grain supply it with high quality, safe suggested the amalgamation of the job. The big question is whether Our Bit, said almost half of new land section was attended by civic more New Zealand companies to and refrigeration. products,’’ he said. region’s two councils would help we can scale it up.’’ refugees were under age 18. and business leaders who were in supply all sorts of quality It is the biggest chain in the Wellington Mayor Celia Wade- create a stronger economy. The moral argument to act still The $20m the Government Xiamen for the first New Zealand- products,’’ Yin said. Fujian province, which is home to Brown said there were lots of long- had to be the starting point, Eaqub would spend educating the future China Mayoral Forum on The stores stocked New Zea- about 40 million people. term benefits of having a sister said. taxpayers could hardly be con- Monday, who Yin urged to take a land infant formula but he wanted A deal to sell the New Zealand city. Quake action ‘‘The fundamental reason why sidered a dead cost, he said. message back to New Zealand. to import fresh New Zealand milk products through Seashine was in- But it was good to see things A group of 107 homeowners is we’re doing is, I think, we’re good Stephens pointed to the money The store was one of six that to sell and was in discussion with itially struck in February during a could also move quick. taking legal action against the people – we have compassion and spent on the new flag, which had a large ‘‘New Zealand corner’’ a Kiwi company, he said. Wellington City Council sister city ‘‘There are plenty of Earthquake Commission (EQC) over empathy.’’ would supposedly be worth but there were plans for more Seashine owns 75 supermarkets visit to Xiamen. opportunities for other New Zea- its repair and cash settlement Professor Paul Spoonley said billions to the country down the stores to stock Kiwi-made and eight large wholesale food Xiamen is a special central gov- land businesses to work with Sea- policies. The group delivered a migrants created a net economic track. products. markets. It has an annual turn- ernment economic zone in China, shine,’’ she said. letter yesterday asking the quake gain for New Zealand, contribu- ‘‘There’s a will there to look at ‘‘New Zealand cities are active over of US$2 billion (NZ$3.1b). so has an importing arrangement Bemrose Estate honey wine agency to clarify its policy ting more to tax coffers than they the benefits. With refugees, with in promoting their products to be The group also owns several that can speed up the process. was currently the only Wellington interpretations under the EQC Act took out. people’s lives, it’s sadly lacking.’’ in the store but Seashine wants to holding companies in food Te Mata Estate wine owners product available in the store. or go to court.

NIBBLISH BUCKS TREND Small businesses’ pessimism increases Business owner Matthew Bennett is bucking the pessimistic trend. He has just launched Nibblish, a company that delivers healthy SUSAN EDMUNDS The results echo the ANZ’s business confidence snack food. ‘This highlights the difference in the report, which showed a net 29 per cent of busi- He said the wider economy would probably SMALL business owners expect a downhill slide effect of the city’s rebuild now it nesses were pessimistic about the general econ- be dragged down a bit over the next year by for the economy over the next year. omy, the fifth consecutive monthly decline in opti- the fall in dairy prices, but that was a short- MYOB has released its latest Business Monitor has reached its predicted plateau.’ mism, and a six-year low. term problem and recovery should not be far survey of 1000 businesses nationwide. James Scollay, Activity, profit, investment and employment away. It shows 51 per cent of small-to-medium business MYOB New Zealand general manager intentions all dropped. ‘‘For 2017 and beyond, the outlook is very owners expect the economy to decline over the next Scollay said Auckland was the driver of the strong. My outlook is still really positive for year and almost a quarter have less work booked economy, with 37 per cent of businesses reporting the New Zealand economy in a variety of for the next three months. improved revenue over the past year. sectors.’’ The number of businesses expecting their rev- Retail and hospitality businesses continued to Bennett said New Zealand was still well- enue to decline over the next 12 months has expect to grow in 2016.’’ perform well, with 39 per cent reporting revenue placed internationally and its food products doubled to 21 per cent. Another 34 per cent expect The survey also shows Christchurch has come growth. were sought after in growing markets such as it to increase. to a halt – the number of its businesses reporting ‘‘While we can clearly see some regions are China. MYOB New Zealand general manager James growth in the past year has fallen 16 percentage already feeling the effect of the slowdown in the ‘‘Businesses that can deliver solutions to Scollay said the survey showed that while some points. dairy industry, other rural areas like Northland, customers that they need in this day and age, small-business owners were seeing signs of a Scollay said: ‘‘This highlights the difference in Bay of Plenty and the Manawatu/Whanganui re- such as healthier products that are easy for slowdown, they were not panicking. the effect of the city’s rebuild now it has reached its gion are holding up well,’’ Scollay said. them, they are going to do well.’’ ‘‘The key point to make is there performance predicted plateau. MYOB’s survey showed 9 per cent of businesses He said it was important for business owners expectations are not falling off the cliff. We are ‘‘However after coming off previously unseen planned to hire more full-time staff in the coming not to become too pessimistic. seeing a considerable rise in the number of busi- highs in activity, businesses in the city remain year. ‘‘You’ve got to be positive about your own nesses who expect their own growth to come off confident of growth, with 38 per cent forecasting A quarter of SMEs planned to put their prices business because otherwise no-one else will.’’ current levels but more than a third of SMEs still their revenue will improve in 2016’’. up.