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NZ Herald
11 minutes ago
- NZ Herald
Govt to increase Crown body board members' fee ranges, in some cases by 80%
He said the public sector had got 'out of whack' compared with the private sector. Luxon said when billions of dollars are being spent on the likes of healthcare, it's 'important that we actually are able to attract really good governance, of Health New Zealand for example'. 'This is just acknowledging that we need to make sure that we can attract good people.' Asked what his message was to someone struggling with the cost of living while the Government was lifting board fees, Luxon pointed to other actions the Government had taken. He mentioned efforts to clamp down on inflation, pouring money into new infrastructure, and today's announcement of removing surcharges from card payments. The Cabinet Fees Framework lays out a range of fee levels for appointees to different bodies and criteria that appointees are marked against. The higher their score, the more they could be paid. It applies to members of a range of bodies or groups the Crown has an interest in, such as royal commissions, ministerial inquiries and some governance boards. However, it doesn't cover pay set by the Remuneration Authority, which deals with MPs, the judiciary and the heads of various commissions and authorities. The framework is reviewed every three years by the Public Service Commission, which reports to Cabinet on the fees. A Cabinet Circular today revealed the new pay ranges. Photo / Mark Mitchell The circular issued today says Cabinet agreed to a revised framework that took effect from July 1. A list of 'main changes' from the previous framework include 'an increase of 80% to the fee ranges' for some governance boards and 'an increase of 30%' for other bodies. It is 'not intended to be prescriptive, and judgment will be required to determine best fit', the document says. It enables a 'consistent approach' to setting fees across bodies. The new framework says setting fees should 'support the appointment of appropriately qualified and diverse body members', contain expenditure within 'reasonable limits' and 'provide flexibility'. 'The framework enables fees to be determined by ministers and other fee-setting authorities who are most familiar with the work of particular bodies.' There is a lengthy process of setting or reviewing members' fees, which takes into account the complexity of their role, the degree to which the role is in the public eye, and recruitment or retention issues. 'Fees will continue to be set on a fair but conservative basis to reflect a discount for the element of public service involved,' the framework says. Members occupying identical positions on the same body should be paid the same rate, but the framework says in some cases it 'is necessary to secure people with scarce specialist skills' and therefore consideration may be given to a higher fee. Alternatively, a fee lower than the suggested range could also be paid in some circumstances. The framework says the schedule of fees 'reflects the nature of their business environment and the role requirements'. The 80% increase applies to the fee range for governance boards responsible for most Crown entities. The top range, for those appointees given the highest scores against the set criteria, is between $73,100 and $162,200 for a chair and between $36,500 and $80,400 for a member. This compares to the previous 2022 framework, which had a range of $40,596 to $90,123 for chairs and $20,295 to $44,655 for members. The new bottom range for this group is between $25,800 and $54,200 for a chair and between $12,900 and $27,100 for a member. On the face of it, to be in the top range, an appointee would need to chair the governance board of an entity with a budget in the hundreds of millions of dollars or above, and with more than one primary function. This would require consultation with the commission. The range reflects an annual rate, which the framework says is consistent with the private sector and is appropriate given the workload is 'predictable and/or substantial'. It's expected these members work about 30 days a year, 'which is in line with the amount of time spent by board directors in private sector companies', while chairs are expected to work about 50 days a year. 'The fees for chairs is set at approximately twice the rate of the members to take account of both the differences in responsibility and in workload,' the framework says. 'Where it is anticipated that a chair or members will have a lesser workload than above, it is expected that this be reflected in the fee level.' One group has had its fee ranges increased by 80%. Another grouping with its own fee ranges are members of statutory tribunals and authorities. This is reflected in a daily rate as it is expected their workload will be 'unpredictable'. The top range for these chairs is between $995 and $1550, or between $640 and $990 for members. The bottom range is between $525 and $770 for chairs, and between $416 and $500 for members. A range of additional information is also provided around expenses, how to review current members' fees and where exceptions to the framework could apply. A report from the Institute of Directors in October found directors' fees had not been keeping pace with inflation. 'Despite some claims that directors are overpaid, non-executive director fees rarely increase in line with general employee increases or inflation.' Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. In 2025, he was a finalist for Political Journalist of the Year at the Voyager Media Awards.

RNZ News
11 minutes ago
- RNZ News
Carpet maker Bremworth rebuilding Napier yarn plant
Carpet maker Bremworth is rebuilding its Napier yarn plant that was destroyed in Cyclone Gabrielle, which means 40 more jobs will be on offer. Before the flood it employed about 150 staff at the Napier factory, but most of them lost their jobs. For the last couple of years Bremworth has been importing yarn to bolster supplies from its Whanganui spinning plant. Bremworth CEO, Craig Woolford spoke to Lisa Owen. To embed this content on your own webpage, cut and paste the following: See terms of use.

RNZ News
41 minutes ago
- RNZ News
One year, 27,850 jobs gone Stats NZ latest data shows
Photo: 123RF New data shows there were 27,850 fewer jobs in New Zealand in June compared to the year before, and young people are feeling the impact of the weak labour market . Stats NZ's latest data shows the number of filled jobs was up 0.1 percent month-on-month but down 1.2 percent year-on-year. Compared to the year before, construction had lost 12,169 jobs, or 6 percent, manufacturing 5850 jobs, or 2.5 percent, professional, scientific and technical services 5150 jobs, or 2.7 percent, and admin and support services 4860 jobs, or 4.7 percent. Education and training and primary industries added jobs. People aged 15 to 19 had 10 percent fewer jobs, those 20 to 24 had 3.5 percent fewer and those ages 25 to 29 had 3.9 percent fewer. Hugh Hawkins, 23, has been looking for a job since finishing an honours degree last year. "Now we're in late July and I've managed to find a tiny bit of casual work through connections of people I know. Otherwise I've been serially ghosted with absolutely no success." Hawkins had set a target of 10 applications a week. "A couple of jobs I was excited for, I felt genuinely directly qualified for, I've gone for and not reached the interview stage. The rejection email often comes with a total of applicants they've had and one I was qualified for had 630 people apply." It seemed a widespread problem, Hawkins said. "Chatting to my coworkers they're virtually all in the same situation. They have to rely on the benefit to pay rent with casual work on the side. People from different walks of life, most young and very qualified…I worked hospitality roles through uni and took volunteer roles and internships relevant to my degree to set myself up as well as possible… if I'm struggling it must mean terrible things for what other people are also going through." Infometrics economists noted that May's month-on-month increase in filled jobs had been revised down in the latest data to a decline. "June's narrow rise could also be revised to flat or negative growth in future releases." Auckland had a 1.9 percent year-on-year fall in filled jobs and Wellington was down 2.3 percent. Canterbury was up 0.1 percent. ASB senior economist Mark Smith said it had been noticeable in the last year or so that young people were being most affected. He said there were likely to be more job losses than the data indicated because some businesses would have added roles during the year. "This is normally a cyclical phenomenon. The hope is that some will go into training if it's available but it's not available for everyone. "The labour market tends to be the last thing to move." He said it was concerning that the revisions in the data in recent months had all been down. "The trend is still falling. It has dragged on… Covid was huge and there are hangovers from that." He said the unemployment rate was likely to move higher in the coming months. Some people who had lost work had dropped out of the labour market, which meant the participation rate fell. The unemployment rate only counts people looking for work. "If that participation rate did not keep falling we would have a much higher unemployment rate, it would be closer to six. "Really the primary sector and the South Island are the good news stories. There is weakness still in the goods sector and the major centres." BNZ chief economist Mike Jones said he still expected the "mid-year activity air pocket" would pass. "The underlying drivers of the recovery remain in place and should reassert themselves in coming quarters. "But the recent weakness does push back the likely timing of the eventual labour market recovery. We doubt the current undershoot of firms' labour requirements relative to worker availability will change appreciably this side of Christmas. Our forecast peak in unemployment has been shunted out to 5.4 percent in the final quarter of the year. Wage growth should thus continue to slow through to the middle of next year." Green Party spokesperson for social development and employment Ricardo Menendez-March called on the government to "take charge and create jobs that help us build a better future". He said the Green Job Guarantee in the party's alternative budget would create 40,000 jobs to rebuild infrastructure, restore nature and build state housing. "We know people out there need opportunities, instead they are being punished and pushed into poverty."