Fonterra capital return could boost GDP – ANZ Report
The Fonterra divestment capital return should provide “a tailwind to GDP growth” next year, according to a new ANZ NZ report, but it’s not “manna from heaven” for the economy.
Not long after the cyclone, I flew into Hawke's Bay Airport, and while passing over Eskdale and Bay View, I was stunned by the devastation visible from the window.
All across Heretaunga, Te Tai Tokerau, Te Tairāwhiti, Tararua and Wairarapa, the impact of the storm was not only physical, but also been emotional - communities were isolated, demoralised, and set back years, financially.
I joined Kelston Orchards owner Tony Harington on a walkthrough row after row of his silt-flooded apple trees. What really struck me was his deep fear the trees may not sprout in the coming season - the kind of worry you don't shake off.
First came the disaster, followed by what could potentially be a catastrophic financial blow to his business.
Tony's story was just one of thousands - many of our staff had also been affected by the storm - and we recognised the urgent need to step up and support the community.
Our response needed to be swift but also considered. ANZ pledged $3 million to aid recovery efforts.
We wanted to donate these funds directly into the affected communities, where the money would have the greatest impact, rather than relying solely on larger disaster relief organisations.
The funds were ready to help but with much of the infrastructure gone, there was no clear path to get it where it needed to go.
We set about partnering with reputable and established organisations which had a demonstrated need for funds and the capability to deploy resources quickly to those that needed them most.
It became clear that local, regional organisations were best placed to do this, as they have an intimate understanding of their regions, and their unique challenges.
ANZ's donations to various iwi, rural schools, and primary sector groups, along with The Red Cross Disaster Relief Fund, helped provide immediate relief - care packages, food, water, fencing, farm equipment, and generators.
Additionally, they supported mental health and wellbeing facilitators, temporary housing, emotional support, and community events.
The donations to iwi were particularly effective, as they had in many cases been first responders to their communities, which gave them a strong understanding of the most urgent requirements in their rohe.
Another notable recipient of our funding was Hawke's Bay's Evergreen Foundation.
Evergreen's efforts in delivering assistance to isolated communities, supporting education for isolated families, and running mental health advice forums have been outstanding.
Similarly, support from the Hawke's Bay Horticultural Advisory Group, in partnership with the Hawke's Bay Fruitgrowers Association, has been crucial in helping the fruit and winegrowing sectors recover faster.
Those industries are looking more promising this year, with the size and quality of fruit said to be fantastic due to the warm, dry conditions this growing season.
It's a welcome relief not only for the businesses themselves, but for the many families which also rely on these industries for their livelihood.
Stats NZ reports that Hawke's Bay's GDP rose by 5.6% in the year to March 2024, which was above the national average of 5.44%, but the economy is currently navigating a complex recovery path, not only from Gabrielle, but also due to broader national economic challenges.
To help chart a new path forward, ANZ also partnered with the Evergreen Foundation for an event on May 16 in Hastings - Growing Our Future - which aimed to foster discussions around the next steps for Hawke's Bay's economy, and how it can return to growth.
The lessons learned from Gabrielle will have been wide-ranging and, in many places, harsh.
But the main lesson I've come away with is simple - during times of crisis, donations can have the most impact when locals are empowered to help themselves.
Antonia Watson is the chief executive of ANZ.
