In the first of their regular catch ups, Business Canterbury’s Leeann Watson joined John MacDonald in studio to dig into what’s happening on the business front. 

They discussed how business owners are feeling, and what can be done to help them continue to gain confidence and grow in the region. 

LISTEN ABOVE 

In the first of their regular catch ups, Business Canterbury’s Leeann Watson joined John MacDonald in studio to dig into what’s happening on the business front.&nbsp;
They discussed how business owners are feeling, and what can be done to help them continue to gain confidence and grow in the region.&nbsp;
LISTEN ABOVE&nbsp;

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.

It’s all about the conversation with John, as he gets right into the things that get our community talking.

If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio.

With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector.

Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays. It’s all about the conversation with John, as he gets right into the things that get our community talking. If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio. With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector. Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.It’s all about the conversation with John, as he gets right into the things that get our community talking.

Canterbury Mornings with John MacDonald

Leeann Watson: Business Canterbury CEO on the mood of business owners and growing confidence in the region

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2378b569-1f5a-4e22-9f7e-b2960000780b/transcript

This fuel situation is starting to feel like herding cats. 

You’ve got the government, on one hand, going on about seven weeks supply. Don’t panic, keep calm and carry on. 

The government is also talking about this rescue package for low-to-middle income earners.  

Then you’ve got the hoarders filling up drums and jerry cans with petrol and diesel. I met one on the weekend. 

He was doing the drums and the cans but he was also using the fuel tank in his boat for storage. He was a tradie and said all the farming mates he was out with are doing the same.  

And now we’ve got businesses deciding to take their own course of action, and some are either putting their prices up or adding fuel surcharges. 

One in Christchurch has just announced that, unless customers go to them, they’re going to have to pay an extra $5 while the fuel prices remain high because of the situation in the middle east. 

It’s even offering free finance options for people with a community services card. 

Didi, the rideshare outfit similar to Uber which operates in Auckland and Wellington, is also introducing a fuel surcharge from Wednesday. Charging passengers 5 cents per kilometre. 

Which raises the question: is this reasonable, given we’re all in this boat together? 

My view is that a specific surcharge is much more reasonable than a random increase in prices. 

There’s a pie shop in the nelson area that has just announced that the prices of its pies are going up 50 cents. 

The owner of the shop says the increase is happening immediately, and she’s doing it because the fuel prices have increased her costs by 20 percent. 

She says she has no option. 

The thing is, though, how do customers know her costs have gone up 20 percent? How does the bakery owner know that charging 50 cents more for a pie is what’s needed to cover that increase? 

And more to the point, when this is all over and the fuel prices are down again, are the pies going to be 50 cents cheaper? I bet they won’t be. 

Which is why I think a temporary surcharge is a fairer way of doing it. 

LISTEN ABOVE

This fuel situation is starting to feel like herding cats.&nbsp;
You’ve got the government, on one hand, going on about seven weeks supply. Don’t panic, keep calm and carry on.&nbsp;
The government is also talking about this rescue package for low-to-middle income earners. &nbsp;
Then you’ve got the hoarders filling up drums and jerry cans with petrol and diesel. I met one on the weekend.&nbsp;
He was doing the drums and the cans but he was also using the fuel tank in his boat for storage. He was a tradie and said all the farming mates he was out with are doing the same. &nbsp;
And now we’ve got businesses deciding to take their own course of action, and some are either putting their prices up or adding fuel surcharges.&nbsp;
One in Christchurch has just announced that, unless customers go to them, they’re going to have to pay an extra $5 while the fuel prices remain high because of the situation in the middle east.&nbsp;
It’s even offering free finance options for people with a community services card.&nbsp;
Didi, the rideshare outfit similar to Uber which operates in Auckland and Wellington, is also introducing a fuel surcharge from Wednesday. Charging passengers 5 cents per kilometre.&nbsp;
Which raises the question: is this reasonable, given we’re all in this boat together?&nbsp;
My view is that a specific surcharge is much more reasonable than a random increase in prices.&nbsp;
There’s a pie shop in the nelson area that has just announced that the prices of its pies are going up 50 cents.&nbsp;
The owner of the shop says the increase is happening immediately, and she’s doing it because the fuel prices have increased her costs by 20 percent.&nbsp;
She says she has no option.&nbsp;
The thing is, though, how do customers know her costs have gone up 20 percent? How does the bakery owner know that charging 50 cents more for a pie is what’s needed to cover that increase?&nbsp;
And more to the point, when this is all over and the fuel prices are down again, are the pies going to be 50 cents cheaper? I bet they won’t be.&nbsp;
Which is why I think a temporary surcharge is a fairer way of doing it.&nbsp;
LISTEN ABOVE

John MacDonald: The fairest way for businesses to recoup fuel costs

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f5e9c262-54e3-450e-8e6e-b41501827fa5/transcript

I reckon the Government is going about this fuel price rescue package the wrong way. It seems to think it's doing the right thing picking low-to-middle income earners who, it assumes, are struggling to pay the higher fuel prices. 

Of course, someone on the minimum wage, for example, is going to be harder hit by $3.30, $3.40, $3.50 a litre than someone earning $100K.

Finance Minister Nicola Willis says the people the Government wants to help are the working New Zealanders who have little option each day but to get in the car and drive to work. It wants to avoid a blanket cut to the fuel tax and it doesn't want to invent a new scheme of income assistance from scratch. 

As the Minister puts it, she wants something that doesn't involve any paperwork. Which sounds like tax credits to me. But I think the Government needs to lift its sights and think a little bit more strategically about this. 

It should be thinking about the wider consequences of higher fuel prices, however long they continue. And, instead of paying a few bucks to people on the lower pay grades, what it should be doing is providing support or providing interventions for the likes of food growers, food manufacturers, the transport and logistics sectors. Because all of those groups, they're paying higher fuel prices. But they don't just suck them up like your average motorist does. They pass them on, don't they? 

Which means the low-to-middle income people being compensated for spending more on diesel and petrol for their vehicles will still be paying more for their bread and their fruit and their veggies. Any savings will just be cancelled-out by costs passed on to them from the food processors or producers, the manufacturers, the transport sector and the farmers at the supermarket checkout. 

Maybe the Government's trying to avoid the type of criticism that would inevitably come its way if it did what I think it should be doing. Because there would be no shortage of people saying it was just looking after its people and the fat cat farmers and the corporate food manufacturers. 

Can't you hear it? But all the Government would have to say to quieten-down those people is that, if it didn‘t, they’d be paying more anyway.

LISTEN ABOVE

I reckon the Government is going about this fuel price rescue package the wrong way. It seems to think it's doing the right thing picking low-to-middle income earners who, it assumes, are struggling to pay the higher fuel prices.&nbsp;
Of course, someone on the minimum wage, for example, is going to be harder hit by $3.30, $3.40, $3.50 a litre than someone earning $100K.
Finance Minister Nicola Willis says the people the Government wants to help are the working New Zealanders who have little option each day but to get in the car and drive to work. It wants to avoid a blanket cut to the fuel tax and it doesn't want to invent a new scheme of income assistance from scratch.&nbsp;
As the Minister puts it, she wants something that doesn't involve any paperwork. Which sounds like tax credits to me. But I think the Government needs to lift its sights and think a little bit more strategically about this.&nbsp;
It should be thinking about the wider consequences of higher fuel prices, however long they continue. And, instead of paying a few bucks to people on the lower pay grades, what it should be doing is providing support or providing interventions for the likes of food growers, food manufacturers, the transport and logistics sectors. Because all of those groups, they're paying higher fuel prices. But they don't just suck them up like your average motorist does. They pass them on, don't they?&nbsp;
Which means the low-to-middle income people being compensated for spending more on diesel and petrol for their vehicles will still be paying more for their bread and their fruit and their veggies. Any savings will just be cancelled-out by costs passed on to them from the food processors or producers, the manufacturers, the transport sector and the farmers at the supermarket checkout.&nbsp;
Maybe the Government's trying to avoid the type of criticism that would inevitably come its way if it did what I think it should be doing. Because there would be no shortage of people saying it was just looking after its people and the fat cat farmers and the corporate food manufacturers.&nbsp;
Can't you hear it? But all the Government would have to say to quieten-down those people is that, if it didn‘t, they’d be paying more anyway.
LISTEN ABOVE

John MacDonald: Fuel relief plan is focusing on the wrong people

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f071e64a-cc77-4d4d-9180-b4120180b2c4/transcript

New Zealand's economy wasn't doing as well as we thought, even before war broke out in the Middle East. 

Latest Stats NZ data shows GDP rose just 0.2% in the December quarter – well under the Reserve Bank forecast of 0.5%. 

Inflation hit 3.1% in the quarter, above the central Bank's forecast of 2.7%. 

The Herald's Liam Dann told John MacDonald if the Iran conflict continues, we could be at risk of "stagflation" – a combination of high inflation and low growth seen in the 1970s. 

LISTEN ABOVE 

New Zealand's economy wasn't doing as well as we thought, even before war broke out in the Middle East.&nbsp;
Latest Stats NZ data shows GDP rose just 0.2% in the December quarter – well under the Reserve Bank forecast of 0.5%.&nbsp;
Inflation hit 3.1% in the quarter, above the central Bank's forecast of 2.7%.&nbsp;
The Herald's Liam Dann told John MacDonald if the Iran conflict continues, we could be at risk of "stagflation" – a combination of high inflation and low growth seen in the 1970s.&nbsp;
LISTEN ABOVE&nbsp;

Liam Dann: NZ Herald Business Editor on the GDP growing by 0.2%

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/d12a916b-6681-41ff-a244-b4120005f4a7/transcript

Leeann Watson: Business Canterbury CEO on the mood of business owners and growing confidence in the region

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