New Zealand - Hard Times

More cuts tipped in discretionary spending

A quarterly consumer credit expectations survey by the agency has found half of respondents are worried about their current financial situation.

Radio New Zealand,

1 August, 2012

Dun & Bradstreet's data shows people plan to spend less because of ongoing economic uncertainty both here and in the Eurozone.

New Zealand general manager John Scott says 66% of people say they are less likely to buy non-essential items.

Respondents say they are less likely to buy non-essential items which until now have resisted recessionary pressures, such as beauty treatments and new mobile phone contracts.

The survey indicates that families are increasingly vulnerable.

It says 56% of those with children are concerned about their current financial situation, 7% above the national average and 13% above the figure for couples with no children.

At the same time, more than a third of families surveyed think they'll have difficulties meeting their credit commitments, as compared to 24% of childless couples.

Provincial rugby revenues falling

A financial review of the 14 ITM Cup rugby unions suggests falling revenues are threatening the future of the game.

Radio New Zealand,

1 August, 2012

The review, carried out by Deloitte, shows their collective revenues have dropped nearly 20% over the last five years.

The review says a total loss of $16 million since 2007 is largely due to a reduction in match-related revenue, such as gate takings and hospitality.

New Zealand Rugby Union chief executive Steve Tew says that is no surprise and unions are adjusting their behaviour accordingly.

Deloitte partner Grant Jarrold of Christchurch says the falling revenues are threatening the game's future.

He says if the unions cannot survive, then the development of rugby at the grass roots will struggle.

The Rugby Players Association says a business approach is needed to turn around the fortunes of the provincial sides.

Chief executive Rob Nichol told Morning Report that teams need to get people back through the turnstiles, as revenues were hit last year by fans saving money for World Cup tickets.