AGP Executive Report

Aviation: Western Sydney International Airport began passenger operations on Sunday, with Air New Zealand scheduled to launch its first international service to Auckland on Monday, adding a new trans-Tasman gateway. Trade: The India–New Zealand free trade agreement is now in force, opening duty-free access for most Kiwi exports and prompting National to pledge a trade mission focused on food, beverage and seafood. Energy: Lodestone Energy’s NZX debut, backed by about 10,000 shareholders, and a newly operational 200MWh grid-scale battery mark fresh momentum for renewable generation and storage. Business Outlook: CEOs report growing concern about skilled young New Zealanders leaving for Australia and say businesses are too cautious to invest. Fisheries: Hundreds gathered on Waiheke Island calling for a ban on bottom trawling in the Hauraki Gulf, putting fishing practices and the gulf’s future in the election debate.

Election & Business: National’s 100-day plan includes KiwiSaver legislation, a trade mission to India and a Commerce Commission probe into Foodstuffs. Boardroom leaders gave party supermarket restructuring plans low marks, warning they could unsettle businesses and investors. Energy & Costs: A survey found 63% of New Zealanders favour a long-term national energy strategy. NZ First says removing the emissions charge from fuel could cut prices by 12–14 cents a litre. Economists expect the Reserve Bank to lift the OCR to 3% as inflation pressures persist. Trade & Investment: The India–New Zealand free trade agreement is now in force, opening duty-free access for most New Zealand exports. Lodestone Energy’s $75 million NZX float drew about 10,000 shareholders, the country’s first major listing in five years. Industry & Infrastructure: NZ First proposes a targeted 50% depreciation rate for manufacturers and exporters. A 200 MWh grid-scale battery is online, while Mercury has awarded a 192 MW wind-turbine contract. A $2.8 million partnership will establish oyster farming and a relay site in Kaipara Harbour.

Business Investment: New Zealand CEOs say firms are too cautious to invest and warn that election-cycle policy changes make long-term planning harder. NZ First is proposing 50% accelerated depreciation for manufacturing and exporters, alongside dual-class shares to help founders raise capital while retaining control. Fuel Costs: NZ First also wants to remove the ETS charge on fuel, which it says would cut petrol prices by 12 cents and diesel by 14 cents a litre. Trade: The India–New Zealand free trade agreement is now in force, with new market-access opportunities and an electronic trade-data pact; Zespri has welcomed the deal. Energy: Mercury has awarded a contract for 192MW of wind turbines, while Genesis has opened a 200MWh grid-scale battery. New Zealand has also opened its first offshore wind feasibility permit round. Aerospace: Rocket Lab completed its 98th Electron launch in New Zealand, underscoring the country’s growing role in the sector.

Energy Transition: Three vehicle-to-grid trials are under way across the North and South Islands, with EECA funding $3 million for chargers and installation. The pilots will test EVs as home backup and flexible power supply. Manufacturing & Exports: NZ First has proposed a targeted 50% accelerated-depreciation rate for manufacturers and exporters, pitching it as an incentive for investment. Aerospace: Rocket Lab launched three HawkEye 360 satellites from New Zealand, completing Electron’s 98th flight and its 19th successful mission this year. Primary Processing: WoolWorks’ flood-hit Hawke’s Bay scouring plant is rising again, restoring capacity to process greasy wool into export-ready fibre. Trade: The India–New Zealand free trade agreement is now in force, with wine, red meat and forestry exporters eyeing expanded market access.

Automotive: Tesla has cancelled plans to sell the Cybertruck in New Zealand and Australia, ending reservations made since 2019 and promising deposits back. Space Industry: Rocket Lab launched three HawkEye 360 satellites from Mahia on its 98th Electron mission, its 19th launch this year. Manufacturing and Exports: New Zealand First proposes a 50% first-year depreciation rate for new plant and equipment in manufacturing and selected export sectors, including mining, to encourage investment. Trade: The India–New Zealand free trade agreement is now in force, opening new export opportunities while easing tariffs, with quotas applying to some New Zealand products such as apples and kiwifruit. Renewable Energy: Lodestone Energy’s $75 million IPO brought New Zealand’s first utility-scale solar-focused listing to the NZX, as the country also opened its first offshore wind feasibility permit round.

Retail Labour: About 300 IKEA workers in Auckland plan a four-hour strike on Saturday over weekend rates, pay and benefits after 95% of voting union members backed action. Monetary Policy: Annual inflation eased to 3.7% in September, but economists and markets expect the Reserve Bank to raise the OCR to 3% next week as fuel and other costs threaten to push prices higher. Trade: The India–New Zealand free trade deal is now in force, opening new opportunities for exporters, including wine, red meat and wood processors; some products, such as apples and kiwifruit, face quotas. Energy and Farming: A Canterbury farmer is diversifying with a 42MW solar farm that will allow grazing to continue beneath the panels, while quinoa growers are seeking new growers to meet export demand and offer arable farmers another option. Infrastructure: The Ashburton second bridge project remains on track and within its $134m–$144m budget, though river and weather risks could affect completion by the end of 2027. Freight: Labour’s pledge to support coastal shipping and better coordinate ports has been welcomed by the Maritime Union as a step towards more resilient, lower-emissions freight.

Markets & Rates: The NZX 50 slipped as oil-price jitters weighed on logistics shares. Annual inflation eased to 3.7%, but sticky underlying pressures have economists expecting an OCR hike next week. Clean Energy: Solar developer Lodestone Energy made its NZX debut after a $75 million IPO, the market’s first substantial float in almost five years. Trade: The India–New Zealand free trade deal is now in force, opening duty-free access for Indian goods and lowering tariffs on many Kiwi exports. Workforce: EIT staff walked off the job amid a six-month wait for collective agreement talks, seeking pay rises and consistent conditions across polytechnics. Agriculture: Asparagus growers welcomed an early-season boost but warned that rising fuel and freight bills are squeezing returns.

Inflation and Costs: Annual inflation eased to 3.7% in September from 4.1%, but remains above the Reserve Bank’s target. New-home construction costs rose 3.2% over the year, with higher material, labour and fuel costs cited. Renewable Investment: Solar company Lodestone Energy raised $75 million and listed on the NZX, its first significant float in about five years, welcoming roughly 10,000 new shareholders. It plans to grow to 16–18 operating solar farms by 2032. Trade and Exports: The India–New Zealand free-trade agreement is now in force, opening new opportunities for exporters; Zespri has welcomed the deal. Energy Infrastructure: New Zealand’s first offshore wind feasibility permits are open for Taranaki and Waikato projects, while a 200 MWh grid-scale battery has come online. Business Costs: The Commerce Commission has capped interchange fees on commercial Visa and Mastercard credit cards, estimating annual savings of about $40 million for businesses. Manufacturing: New Zealand manufacturing activity continued to grow in September, according to BusinessNZ.

Market Pulse: The NZX 50 rose 1% on Wednesday, with Fletcher Building, Ebos and Vulcan Steel among the gainers. Meridian Energy also lifted the index after analysts pointed to strong hydro performance. India Trade: The free-trade agreement with India is now in force, giving Indian exports duty-free access to New Zealand across 8,284 product lines. Kiwi growers and other exporters are looking to build on the new market access. Energy: Genesis has switched on New Zealand’s first grid-scale battery at Huntly, adding 200 MWh of storage to help balance power supply. The first offshore wind feasibility permits have also opened for projects in Taranaki and Waikato. Construction: New dwelling consents rose 5.6% in August and were up 21.1% on a year earlier, led by Canterbury and Auckland. But house prices are expected to keep edging down into mid-2027, and Treasury says the recovery is not yet secure. Manufacturing: New Zealand’s manufacturing sector continued to grow in September, according to BusinessNZ.

Trade: The India–New Zealand free trade agreement took effect on October 20, opening new opportunities for exporters. Kiwifruit gains a duty-free quota of 6,250 tonnes a year, rising to 15,000 tonnes by year six; tariffs outside the quota fall from 33% to 16.5%. Offshore Energy: New Zealand has opened its first feasibility permit round for offshore renewable projects off Taranaki and Waikato, with applications open until April 2027. Dairy: Global Dairy Trade prices rose 2.5% in US dollars, led by gains for milk powders, while butter and cheddar prices fell. Health Technology: Auckland-based AROA Biosurgery has partnered with Mölnlycke to expand US access to its Endoform wound-care product, while retaining manufacturing and supply. Waste: New Zealand generates about 99,000 tonnes of e-waste annually, but only 2% enters formal recycling; TechCollect NZ is seeking approval for a national scheme. Construction: Four people have been charged over more than $4.2 million in alleged bribes linked to government-funded Auckland housing contracts worth over $26 million. Aviation: Wellington Airport won awards for runway safety infrastructure, while Christchurch Airport was named Large Airport of the Year.

India Trade: The New Zealand–India free trade agreement took effect on October 20, creating new export opportunities for wine, meat, forestry and engineering businesses. India has set quotas for New Zealand apples, kiwifruit and mānuka honey, so access will vary by product. Energy: Genesis has opened a 200MWh battery at Huntly, adding fast-response storage to support peak demand as the power system adds renewable generation. Markets and Services: The NZX 50 fell 0.2% for a third straight session, while utility software firm Gentrack gained after winning Australia’s Momentum Energy as a cloud-platform customer. New Zealand’s services growth also cooled in September, with retail activity contracting as wholesale expanded.

Trade: The New Zealand–India free trade agreement is now in force. Tariffs are gone on sheepmeat, wool and coal, and more than 95% of forestry and wood exports qualify for immediate tariff-free access. Wine tariffs will fall over 10 years, while apples and kiwifruit receive preferential quotas. Energy: Meridian Energy reported record hydro generation for the first quarter of FY27, with lake storage well above historical averages. Its $370m–$410m capital spending outlook is unchanged. Agriculture and Water: Environment Canterbury is urging farmers and growers to prepare for El Niño, which could bring dry, windy conditions, lower river flows and greater wildfire risk in parts of the region. Alpine-fed rivers may also rise quickly. Infrastructure: Infrastructure New Zealand says parties share common ground on key priorities and is urging the next Parliament to turn that into lasting improvements to project planning, funding and delivery.

India Trade: The New Zealand–India free trade agreement takes effect on October 20, with initial concessions including zero duty on sheep meat and a 15% tariff on kiwifruit. New Zealand apple representatives are also working with Indian growers on a proposed Centre of Excellence. Energy Investment: New Zealand has opened its first offshore renewables permit round for areas off Taranaki and Waikato/South Auckland, with applications due by April 19, 2027. Christchurch Airport’s new 150MW solar farm is also online, expected to generate as much electricity as 36,000 homes use annually. Digital Infrastructure: Data Vault plans a North Shore data centre, with 11 launch partners signed up, targeting demand for flexible colocation space. Business Activity: Manufacturing continued to grow in September, while services activity extended its growth streak to four months.

Trade: New Zealand’s free trade deal with India begins its first tariff cuts on October 20, including zero duty on sheep meat and a 15% rate for kiwifruit, opening new opportunities for exporters. Manufacturing: The sector accelerated in September, while dairy companies urged the next government to back export growth with better trade access, infrastructure, energy and biosecurity. Energy: New Zealand’s largest solar farm has opened at Christchurch Airport, and Mercury’s planned Puke Kapo Hau wind farm is set to become the country’s biggest. The government is also advancing talks with an unnamed preferred supplier for an LNG import terminal, drawing criticism over the timing. Industry and regions: A potential buyer has emerged for Winstone Pulp’s Karioi mill site, with biocoal maker Te Ara Hiko identified as a contender. Pacific operations: New Zealand and Fiji authorities used solar-, wind- and wave-powered uncrewed vessels to monitor Fiji’s waters, identifying 137 vessels for further scrutiny during a four-week deployment.

India Trade: New Zealand exporters are preparing for the India free trade agreement, effective October 20. India’s first tariff notice gives qualifying sheepmeat zero duty and sets a 15% rate for specified kiwifruit imports, alongside concessions for wine and manuka honey. Energy Imports: New Zealand bought €19 million in oil products from refineries in India, Türkiye and Brunei that process Russian crude, according to CREA; the report says exports from the three countries to sanctioning markets rose 43% in September. Circular Manufacturing: Glide’s Pukekohe plant is re-refining used oil into base oil for new lubricants, turning a waste stream previously burned for fuel into a reusable local product. Renewable Power: Fonterra has contracted output from the planned 110MW Karioi solar farm in its second power agreement with ANZA. Food Innovation: Mycofeast has acquired Daisy Lab’s precision-fermentation assets, taking over technology developed by the New Zealand dairy-protein startup.

Inflation Watch: Economists expect annual inflation to ease slightly in September, but rising fuel prices and a weak dollar keep an October 28 OCR hike firmly in view — a concern for businesses facing higher costs. Circular Manufacturing: Glide’s Pukekohe plant is re-refining used oil into base oil for new lubricants, turning a waste stream into a reusable resource. Trade: India has notified its first tariff cuts under the New Zealand FTA, effective October 20: eligible sheep meat enters duty-free, while qualifying kiwifruit faces a 15% duty, opening new opportunities for exporters. Transport and Retail: Auckland’s City Rail Link has lifted ridership, and some Karangahape Road hospitality businesses report stronger trade since opening; others are still weighing whether the construction disruption paid off. Food Technology: Mycofeast has acquired precision-fermentation startup Daisy Lab’s assets to develop fermented lactoferrin, adding momentum to New Zealand’s emerging food-tech sector.