Interim Financial Statements Of The Government Of New ZealandFor The Ten Months Ended 30 April 2025
The Interim Financial Statements of the Government of New Zealand for the ten months ended 30 April 2025 were released by the Treasury today. The April results are reported against forecasts based on the Budget Economic and Fiscal Update 2025 (BEFU 2025), published on 22 May 2025, and the results for the same period for the previous year.
The majority of the key fiscal indicators for the ten months ended 30 April 2025 were slightly better than forecast. The Government's main operating indicator, the operating balance before gains and losses excluding ACC (OBEGALx), showed a deficit of $7.4 billion. This was $0.1 billion smaller than forecast. While the core Crown results were favourable to forecast, this was largely offset by the results of State-owned Enterprises. Net core Crown debt was in line with forecast at $184.6 billion, or 43.2% of GDP.
Core Crown tax revenue, at $100.4 billion, was $0.7 billion (0.7%) higher than forecast. Corporate tax and other individuals' tax contributed $0.4 billion and $0.2 billion respectively to the above forecast result.
Core Crown expenses, at $115.8 billion, were $0.1 billion (0.1%) below forecast. This variance is mostly timing in nature and was spread across a range of agencies.
The OBEGALx was a deficit of $7.4 billion, $0.1 billion less than the forecast deficit. When including the revenue and expenses of ACC, the OBEGAL deficit was $11.7 billion, in line with the forecast deficit.
The operating balance deficit of $6.7 billion was $2.8 billion higher than the forecast deficit. This reflected both the OBEGAL result and net unfavourable valuation movements. Net gains on financial instruments were $4.3 billion lower than forecast, driven by New Zealand Superannuation Fund (NZS Fund) and ACC's investment portfolios. This unfavourable variance was partly offset by net gains on non-financial instruments being $1.3 billion higher than the forecast loss. This was largely owing to the New Zealand Emissions Trading Scheme with net gains on the liability being $1.1 billion higher than the forecast loss.
The core Crown residual cash deficit of $8.4 billion was $0.1 billion lower than forecast. While net core Crown operating cash outflows were $0.4 billion higher than forecast, net core Crown capital cash outflows were $0.5 billion lower than forecast.
Net core Crown debt at $184.6 billion (43.2% of GDP) was in line with forecast. With core Crown residual cash broadly in line with forecast, this and minor movements in non-cash items contributed to the net core Crown debt result.
Gross debt at $203.5 billion (47.7% of GDP) was $6.3 billion lower than forecast, largely owing to lower than forecast unsettled trades and issuances of Euro Commercial Paper.
Net worth at $181.4 billion (42.5% of GDP) was $3.1 billion lower than forecast largely reflecting the year-to-date operating balance result.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
a day ago
- 1News
Plan to block road access to Cape Palliser 'gem' due to vandalism
Plans to block road access to a remote stretch of the South Wairarapa coastline will deny surfers access to one country's most pristine surf breaks. South Wairarapa District Council wants to close access to a paper, or unfinished, road that leads to the Cape Palliser coast line due to continued vandalism and destruction. The road passes through private and Crown land before ending at the rugged beach. The council said native flora and fauna in the area has been damaged by four wheel drives, quad bikes and campers, who are also a fire risk. The area included wāhi tapu sites — ancestral burial grounds and historic pā settlements. "Council has engaged with local hapū, Ngāti Hinewaka and have agreed the continued vandalism, disrespect to the land and its owners and the poor social behaviours displayed are not acceptable," South Wairarapa District Council said. ADVERTISEMENT If the proposal to block road access goes ahead, there will be no overland route to reach that part of the beach. Michael Gunson first surfed White Rock along that part of the coast in 1976. Gunson told RNZ it was a popular surf spot but really hard to get to, even with the paper road open. He said if the road wass shut, there would be no access for the general public. "It's a gem, it really is a gem. It's on par with Castle Point, as far as I'm concerned, as far as dramatic landscapes go," he said. While Gunson understood where the council and landowners were coming from, he wanted to work to find a solution. "I am not going to defend clowns in any way, shape or form. What I think that needs to be done is some good consultation, some good kaupapa shared with the landowners, DOC and the council, and we need to work this out," Gunson said. He said they needed to find out how to maintain public access in a way that minimised damage to the coastline. ADVERTISEMENT Gunson said said there could be signage and education around how to respect the landscape, and encourage others to report bad behaviour when they saw it. He said there had been a lot of opposition to the council's proposal as it sparked a lot of attention among surfers online. "Not everybody that goes there is a vandal. They go there out of deep respect for the beautiful, wonderful coastline," he said. The South Wairarapa District Council, in a statement to RNZ, said there were 2139 online submissions about the proposal so far. The council said the proposed bylaw was being developed using powers under the Local Government and Land Transport Acts but acknowledged that restricting walking access to the paper road would not be legally enforceable. However, that right of access didn't extend to the adjoining private land, and council was responding to issues raised by the hapu around ongoing damage to land bordering the paper road. It said the consultation provided an understanding of what level of access the community felt was appropriate – balancing the need for safe public access with respect for adjoining landowners. South Wairarapa District Council was accepting feedback on the proposal until August 19. It said all feedback would be reviewed before a final decision would be made.
NZ Herald
2 days ago
- NZ Herald
Highest-paid public sector chairs – how they compare with the private sector
The company's 2025 survey of directors, which covered 342 organisations across both sectors and 342 chairs, found that private sector chairpersons earn more than double the fees of their public sector counterparts, across an overall median for all entity sizes. Strategic Pay's sample puts median pay for private sector non-executive chairs at $132,815, while the public sector median is just $62,000. Strategic Pay managing director Cathy Hendry. Hendry noted that there is 'always a public sector discount … it's a long-term trend'. She said the lower pay in the public sector is driven by affordability and the source of the funding, which typically comes with much higher public scrutiny. Indeed, Prime Minister Christopher Luxon felt the heat of that public scrutiny last month, when news broke that new guidance would allow public boards to award hefty pay hikes. Labour finance spokeswoman Barbara Edmonds emphasised that the National coalition has found 'no money to help families with rising costs, but when it comes to … pay rises for Crown board members, then suddenly their pockets are full'. For his part, Luxon suggested that low board pay might damage the Government's ability to recruit the right people: 'This is just acknowledging that we need to make sure that we can attract good people … [it's] important that we actually are able to attract really good governance, of the Health NZ board for example.' Systematic fee increases began 7 months ago The Treasury has its own framework for board fee calculation, the Crown Companies Fees Methodology, and this applies to a limited subset of Crown-owned companies, including the state-owned enterprises. Last year, it advised ministers, based on benchmarking it commissioned from Strategic Pay, that 83% of all Treasury-managed Crown boards have fees below 70% of comparative market rates (both the Treasury and Strategic Pay declined to release the benchmarking work; Hendry said it is commercially sensitive). Last August, the Cabinet agreed on a two-step fee increase for these entities (excluding several, such as Southern Response Earthquake Services, which was within the target rate, and NZ Green Investment Finance, whose chair Cecilia Tarrant is on $98,000, which already enjoyed fees above the target rate). Ministers agreed on a January 1 change that increased board fees for 17 entities to 85% of the level Strategic Pay calculated the Crown rate should be – the Crown rate was set 10% below the market rate. A second increase, to bring fees up to the Crown rate, is scheduled for January 1 2026. Across both the public and the private sector, a rough rule of thumb holds that board chairs do twice as much work as regular board members. The Treasury's framework pays board chairs twice the fee of ordinary members; however, shareholding ministers approve a total annual director fee budget, and it's possible, though uncommon, for boards to allocate the chair fees that are below the figure calculated under the Treasury formula. The pay hikes are not related to good performance – the likes of Landcorp and NZ Post, where chair fees are rising 41% and 84% respectively, have been laggards – but the related Cabinet Paper makes it clear that the Government hopes the higher fees will help to attract better candidates. Both Landcorp and NZ Post have new chairs, appointed in the past year. The biggest annual fee increase accrues to Mark Binns, chair of Crown Infrastructure Partners, the remit of which has expanded considerably over his tenure. His pay will more than double. Before the rise, Binns' fee stood at $63,000. That rose to $109,620 at the beginning of the year, and will reach $128,960 in 2026. KiwiRail disclosed chair David McLean's fee was $89,000 in fiscal 23/24. On the Treasury's figures, that fee rose to $142,260 at the beginning of 2025 and will reach $167,360 at the beginning of next year (an 88% increase). The new chair is Sue Tindall. Fees for Crown Infrastructure Partners chair Mark Binns are set to more than double. Photo / Mark Mitchell Among those with smaller but still significant increases is Jim Mather, chairman of RNZ. His fees rose to $71,280 at the beginning of the year, and are set to increase to $83,860 at the beginning of 2026 -- a total increase of 41%. In contrast, Alistair Carruthers, the chairman of TVNZ, stands out as an anomaly. Despite the revisions to the fees framework and the Treasury's calculation that he is underpaid, Carruthers received no fee increase this year. The state-owned broadcaster has been struggling through cost-cutting efforts, including job losses, though it is not unique in this. Carruthers and his board opted not to take up the first round of fee increases offered by Media and Communications Minister Paul Goldsmith, who is responsible for signing off on TVNZ board pay. The big exception: Lester Levy, Health NZ Lester Levy, chairman of the re-established board of behemoth Crown entity Health NZ, is the major public sector exception. His headline pay is extraordinary across all sectors, and so is the work required of him. Levy will earn a maximum of $450,000 a year, which breaks down into an expected maximum of $325,000, with a further $125,000 held in contingency, a Ministry of Health spokeswoman confirmed. The figures are predicated on a daily fee of $2500, for up to 130 days' work (the contingency represents an additional 50 days' work). The headline pay of Health NZ board chairman Lester Levy is extraordinary across all sectors, and so is the work required of him. Photo / Mark Mitchell By comparison, the recently updated Cabinet Fees Framework sets a maximum chair fee of $162,200 per annum for the largest and most complex public sector entities; this fee level is predicated on a workload of 50 days' work. The previous chair of HNZ, Dame Karen Poutasi, drew an annualised fee of $219,000 in fiscal 23/24. The spokeswoman said the daily fee rates for the current HNZ board, including the chair, are unchanged from 23/24. In fiscal 24/25, the board was replaced by Levy as commissioner and three deputy commissioners. The spokeswoman said the current HNZ board is in its 'establishment phase' and the current arrangement will last for the next 18 months, at which point it will be reviewed and the ministry anticipates a move to a 'more business-as-usual way of working'. HNZ is the country's single largest health care provider, its largest employer, and the Government's largest Crown entity. It received $27.2 billion in funding in fiscal 23/24, its last disclosed financial year, which fell $722 million short of spending; it is a notable financial mess. Increases for most public board chairs In July, the Public Service Commission issued new guidance providing for sizable fee increases for the vast majority of public boards, their chairs, and other government appointees such as advisory committee members and commissioners. For the largest and most complex public bodies, board chair fees can now reach up to $162,000 (the previous cap was $90,000) – an 80% increase over previous guidance. The matrix of factors that determine which chairs and boards should be best paid includes the operating budget, asset value, and business complexity of the relevant entity. The framework is not prescriptive, and the new levels set don't compel Crown entities to review their fees; the ministers responsible can review fees at any time, and by convention, this typically happens every two to three years. The Minister for the Public Service, Judith Collins, told the Herald that it's common for monitoring departments to conduct reviews across multiple entities within their portfolio, to ensure consistency. Kate MacNamara is a South Island-based journalist with a focus on policy, public spending and investigations. She spent a decade at the Canadian Broadcasting Corporation before moving to New Zealand. She joined the Herald in 2020.
RNZ News
4 days ago
- RNZ News
Te Arawa Lakes Trust calls for stronger partnership to protect Rotorua lakes
Lake Rotoiti, which is connected to Lake Rotorua by a small channel. Photo: RNZ/ Libby Kirkby-McLeod Te Arawa Lakes Trust says it has no "exclusive seat at the table" when it comes to Crown-led water management, as ongoing issues with the Ōhau Diversion wall raise concerns about the water quality of Lake Rotoiti. The trust are owners of the lake bed under the Te Arawa Lakes Settlement Act, and are calling for greater recognition of its role as kaitiaki and a more meaningful seat at the decision-making table. The Ōhau diversion wall stretches across 1.3 kilometres and was built in 2008 to improve the water quality of Lake Rotoiti by stopping nutrient-rich water flowing in from Lake Rotorua. However, holes have appeared near the surface of the wall, raising concerns about increased algal blooms and water quality. The $11 million structure was expected to last 50 years but showed signs of corrosion as early as 2014. The Ōhau channel diversion wall was built in 2008 to divert polluted nutrient-rich water from Lake Rotorua, which otherwise flowed into Lake Rotoiti through a small channel, but critics say holes from corrosion allows water through. Photo: Supplied Chairman Wallace Haumaha said the ongoing issues with the Ōhau Channel diversion wall were "yet another symptom of a broken, Crown-led water management system that continues to ignore our role as kaitiaki". Earlier this year, the Bay of Plenty Regional Council said it would "accelerate" trials to address the problem. Haumaha welcomed this progress but said all voices, especially those of mana whenua, needed to be part of the decision-making process. "As we work together to find solutions, it is vital that all voices, especially those of kaitiaki and local communities, are included in the decision making processes that impact our waterways and the wellbeing of our people," he said. Under the Te Arawa Lakes Settlement Act, the trust is responsible for the rights and obligations that come with lakebed ownership, including existing structures, commercial activities, and public utilities. In June, over 60 Māori land trusts, representing more than 150,000 landowners, hapū and iwi, filed legal proceedings in the High Court against the Crown. They allege the government has repeatedly failed to uphold Māori rights and responsibilities over freshwater. Te Arawa Lakes Trust is a part of this claim. "This is about restoring balance and our ability to exercise proper kaitiakitanga. Māori have never relinquished our relationship with our ancestral waters," Haumaha said. "This collaborative approach is the driving force behind the coalition Wai Manawa Whenua, which brings together Māori landowners, hapū, iwi collectives, and national organisations such as the Federation of Māori Authorities (FOMA) who together have filed legal proceedings in the High Court to hold the Crown accountable to ensure that Māori rights and responsibilities over freshwater are upheld, fostering a responsible stewardship that benefits everyone," Haumaha said. In a statement to RNZ, Toi Moana Bay of Plenty Regional Council chief executive Fiona McTavish said the Ōhau diversion wall remained "structurally sound and is compliant with its resource consent," though microbial corrosion has created holes in the top metre of the sheet piling. "It continues to divert most of the flow from the Ōhau Channel (Lake Rotorua) to the Kaituna River, bypassing Lake Rotoiti." McTavish said the water quality of Lake Rotorua has "markedly improved" since the Ōhau wall was installed in 2008, due to alum dosing, catchment land use and land management change. "This means that even without the corrosion, the wall would not be having the same water quality benefit as it did when it was installed." Potentially toxic algae bloom was found near Ohau Channel. Photo: Supplied / Bay of Plenty Regional Council Last week, McTavish said the regional council adopted a strategy which uses a "dynamic adaptive pathway approach to decision making," focussing on making decisions in a flexible way that adapts to changing circumstances, rather than relying on rigid, long-term plans. "This enables regional council to make the best informed and most timely decisions about the ongoing investment in the wall, ensuring those decision are good environmental decisions that will deliver water quality benefits, but are also financially practical. "Under this strategy, decisions about the future of the wall are timed to consider updated science and engineering advice, community voices and alignment with central government expectations." She said making good environmental, but also financially sensible decisions was critical. "We want to ensure that any investment delivers the outcome the community desires, is based on the best information and is not unnecessarily rushed." McTavish said Ngāti Pikiao Environmental Society, representing mana whenua Ngāti Pikiao and Te Takinga, had been briefed and "continue to support the wall so long as it is providing benefit to lake water quality." "Regional council staff will continue to work with Ngāti Pikiao Environmental Society on the decision making in respect of the wall and ensure that decisions made about the wall are informed by the best available science regarding water quality." The working relationship between Te Arawa Lakes Trust and regional council governance, leadership and staff continues to be productive and positive, McTavish said. "Regional council staff have briefed Te Arawa Lakes Trust kaimahi regarding the wall and sought their guidance on how Te Arawa Lakes Trust would like to provide advice regarding the issue. "TALT staff have advised they will brief their Komiti Taiao as a first step, we have offered support for this briefing and await further direction from Te Arawa Lakes Trust kaimahi." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
