News } TBK Capital

New Government - New Opportunities

As a few of us stood around at our local watering hole awaiting Winston Peter’s announcement as to who he was to partner with in the new Government, there was a fair amount of apprehension as we predicted that he would partner with Labour.

As a few of us stood around at our local watering hole awaiting Winston Peter’s announcement as to who he was to partner with in the new Government, there was a fair amount of apprehension as we predicted that he would partner with Labour.

However in retrospect there was an inevitability of this once Jacinda Ardern became Labour’s leader. See July article here when Andrew Little was heading the Labour Party. And of course it’s hard for any government to win a fourth term.

Now that the NZ First and Labour coalition has become a fact, and we have seen the results of Jacinda Ardern’s immediate and powerful introduction, and her choice of Ministers – which includes James Shaw from the Green Party - there appears to be an acceptance from traditional National followers to the change.   

Her coalition policies did show a typical Labour approach. I’m not go into detail on this, but for an excellent commentary download Tony Alexander’s Weekly Overview of 26 October.

His observation that Labour went with NZ First because their policies are closer to that of National’s really sums it up. Their policy includes:

  • Restricting foreign buying of NZ assets.
  • Reducing immigration.
  • Raising minimum wages.
  • Altering the Reserve Bank Act.
  • Cutting the Superannuation age of eligibility back to 65.
  • Restarting contributions to the NZ Super Fund.
  • Boosting regional investment.
  • Raising student allowances.
I’m not sure what the restriction on buying New Zealand assets entails, but if it is restricted to buying existing homes I can’t see much of a problem. Were it to extend to pre-sales on apartments, or residential subdivisions, then this would be disastrous in fixing the chronic housing shortage here.

It’s hard enough to get bank finance on apartment and housing developments as it is, and without pre-sales virtually impossible. And the non-bank lenders have the same view. TBK Capital organises development finance and we know this. But this does bring up the opportunity for investors to participate in developments providing both debt and equity. If that’s of interest email or call me.   

If there’s anything that does concern me - and my friends and business associates - about their policies it’s immigration. See my February Newsletter,Immigration the Key to Growth.

As Tony Alexander says in his 26 October BNZ Weekly OverviewIn fact staff availability all up is about to get worse. This will not just be because he plans to cut immigration, plans to put people to work planting 100 million trees each year, but the free year for first time entrants to tertiary level study. Next year it seem reasonable to expect some young people to opt for a year receiving a (rising) student allowance, burning some couches and drinking rather than immediately making the hard decision to enter the workforce. Options to start work immediately abound in the primary sector, hospitality, construction, retail. Not everyone need or is suited for a degree.

“As was put to me recently, what some current students would prefer is that the last year of study be free – not the first. The first year of uni study largely sorts out the wheat from the chaff. Better to reward and encourage this who apply themselves. Presumably universities will receive the extra funding for the extra chaff to come?”

For another rather analytical view on immigration I was reading the view of another favourite columnist of mine, Rodney Dickens, in which he asks “Will the government’s immigration cut pose a threat to tourism?”

He introduces this Rodney’s Raving by saying “It is likely that the government’s plans to cut immigration and to some extent its policy to ban foreigners from buying existing buildings will have negative impacts on tourist visitor arrivals.”

He admits it’s a rather technical approach and concedes the chart shown in the article “is somewhat of a curiosity rather than something that I take as gospel.” However let’s not forget last April tourism became New Zealand’s biggest export earner.

Working Visas, Happy to be Here, Opportunities
Whatever government policy may be, New Zealand is internationally a favoured place to visit or live and is well advertised internationally via the 100% Pure New Zealand website.

Much of the labour force here is a result of Working Visas - we have a delightful lady from Beijing on a working visa staying with us at the moment and I’ve learnt a lot from her about New Zealand’s attraction. The relationship between the two countries remains strong and a new international agreement focuses on attracting high-value Chinese visitors who stay longer, spend more and travel independently. 2019 is to be the China- New Zealand year of Tourism.

As I write this newsletter, I’m reminded of a one I wrote 5 years ago entitled Happy to be Here, China and Opportunities. Much has changed in the world economies since then and it’s hilarious to remember those times about Quantitative Easing - aptly recorded here. Students who study here are encouraged to remain and investment is stimulated by the government through NZTA and immigration.

Exporting is essential to our economy and for it to remain a great place for us to live. Government advice is available on both export planning and funding. At TBK Capital a major part of our service is arranging the funding for business, both equity and debt.

It was great to see an article in the New Zealand Herald earlier this year reporting young company investment here has hit a new record as 8 companies managed to raise at least $1.5 million each. The number of new companies was 41. And rumour has it Jacinda Ardern is to consider tax breaks for small businesses.

At TBK Capital we offer participation in property and business for those who qualify as a “Wholesale” investor. See Projects on our website. And if you’re looking for a way in which you might be able to invest in our meat export industry should visit our website here. This particular offer will only be available over the next few weeks before the lamb season starts.

Want to Know More?
I'm always happy to hear from you if you'd like to comment of matters raised in our newsletter - or of course if you're looking to raise debt or equity or would like to find out about any of our current offers.

The best way to keep in contact is to email or give me a call on +64 21 902 901 or +64 9 307 3257.

Any reference above to investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.


John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10, 120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901

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