Finance Minister downplays lower deficit
Updated at 9:35 pm on 6 June 2012
Finance Minister Bill English downplayed a $1.4 billion improvement in the Government's latest monthly accounts, saying it does not lessen the Government's need to keep control of its spending.
The deficit before gains and losses on the Government's investments was $5.9 billion to the end of April, $1.4 billion dollars less than forecast in the Budget in May.
The deficit was smaller due to a higher than expected tax take and lower than expected spending.
The tax take was $770 million more than forecast. But Mr English says tax is still nearly $1 billion down on the Treasury's pre-election forecasts in October last year.
Mr English says a tight rein on spending is still needed to hit the Government's target of a surplus by 2014-15.
The minister says the Government knows where the money is going, but the revenue is uncertain and this month it has been higher than expected. The big task is to do everything possible to lift economic growth.
Returns from State Owned Enterprises and Crown Entities were $300 million more than forecast, while spending was $320 lower than predicted.
The Green Party says the new figures showing stronger-than-expected returns from SOEs is further proof the Government should retain them in full ownership.
The Treasury says company tax was $450 million more than it forecast in the Budget. Crown expenses were 0.6% lower than expected. The debt balance is slightly better than forecast at 25.9% of gross domestic product.
Infometrics economist Benje Patterson says the better-than-forecast deficit does not signal a dramatic turnaround in the Government's books and more spending cuts will be needed to hit the surplus target.
Copyright © 2012, Radio New Zealand
Forex: USD/CHF falls to 10-day low - FXStreet.com
Finance leaders report demands on the 'finance function' are increasing further - Director of Finance online
Finance leaders report demands on the 'finance function' are increasing further.
Finance Leaders are bucking the current trend for negativity on the economic outlook with over 60% of attendees at PwC's Finance Leaders' Summit expecting positive growth in their industry over the next 12-18 months.
The summit, which was held in London by PwC for CFOs and finance leaders from 98 multi-national companies, also touched on how the emerging markets continue to be important for growth.
Top locations were identified as China followed by Brazil, India, the US and Russia.
As the push for growth in new markets continues, an increasing importance is placed on understanding local requirements and demand with 90% of attendees saying they were increasingly moving away from simply exporting products towards developing products and services that are modified to meet local market needs.
Nick Atkin, partner in PwC Consulting's Finance Effectiveness practice said:
"In today's competitive economic landscape and global marketplace, it is no longer enough to export your home-grown products and services. Understanding the opportunities and risks in the local target market and innovating to develop tailor-made products and services is pivotal to success in the emerging markets."
When looking at business in the emerging markets, 60% of finance leaders cite finding and retaining the right talent as the key consideration for their function, followed by compliance and regulatory control risk.
Talent issues remain a concern for finance functions also when doing business in their own countries. Whilst 89% of finance leaders said that the demands on the finance function have increased over the past year, an overwhelming 92% of attendees reported gaps within their existing finance talent base to be able to effectively deliver against the business strategy - with more than a quarter saying those gaps are significant.
Nick Atkin, PwC partner, continues:
“Finance leaders are increasingly focusing on talent management, on attracting and retaining the right talent and on developing the skills of their teams. As organisations grow and expand internationally this is a top priority for business leaders today."
The drive for finance to become a partner of the business and driver of strategy as opposed to a department of report churners seems to continue unabated. Over half of the finance leaders believe that finance should have the responsibility for driving the right data, information and analytics across the business.
Yet a quarter of the respondents stated that the management information produced by finance failed to meet the needs of the business, with a further 37% only neutral about its impact.
Nick Groves, PwC partner and global leader of the enterprise performance management team said:
"Far too much time is still spent on manipulating data rather than on analysing information to deliver insightful solutions. Whilst finance leaders clearly recognise the importance of their role in driving the right data, significant opportunity remains in aligning management information to the needs of the business."
Whilst adding insight and maintaining control are clearly high on Finance Leaders' agendas, continuing to strive for an efficient organisation is still an important balancing act. 70% of Finance Leaders' said that they are now considering a move towards multi-functional shared services, with Finance, IT, HR and Procurement functions being the top candidates. This generates significant benefits to organisations yet also creates certain complexity
Nick Atkin, PwC partner, concluded:
"Organisations continue to look to drive efficiency across the support functions and deliver high quality services to internal customers freeing up time for finance leaders to support more effective decision making. With more free time, finance can focus on putting information at the heart of the organisation to drive better outcomes, growth and prosperity for the business, its employees and shareholders."
Saving money for some items could cost you - MyFox Atlanta
Why People Are OK With Stealing Coca-Cola, But Not Money - The Business Insider
In order to test "what 
Ariely notes that this could very well be because students are used to seeing sodas in the fridge, so taking it — even if it's not theirs — doesn't seem so immoral, but the actual presence of money is out of place so every action associated with it may seem wrong altogether.
In another experiment, Ariely found that if money is one step removed from a direct transaction, people are twice as likely to lie. For example, if you receive tokens — like you do in casinos — you will be more willing to cheat than if you directly received cash during those situations, even though those tokens represent cash and will later be traded in for it.
Furthermore, this explains why many white-collar criminals don't classify their actions as crimes — lying about numbers that ultimately represent money, but isn't actually money doesn't trigger people's moral values as sternly.
Ariely says that this way of thinking could become a problem in the future "the more cashless our society becomes," because the separation that the immoral act has to actual money "might also separate us from the reality of our actions to some degree." He writes:
"If being one step removed from money liberates people from their moral shackles, what will happen as more and more banking is done online? What will happen to out personal and social morality as financial products become more obscure and less recognizably related to money (think, for example, about stock options, derivatives, and credit default swaps)?
"The good news is that once we understand how our dishonesty increases when we are one or more steps removed from money, we can try to clarify adn emphasize the links between our actions and the people they can affect."
9.5% rise for finance directors - MSN UK News
A study suggests the median income for finance directors in the UK's top companies is more than one million pounds
Finance directors in the UK's top companies received a 9.5% increase in pay and bonuses last year, taking median income to more than £1 million, according to a new study.
Increases in the pay of finance executives in FTSE-100 companies were driven by large bonus payments, said Incomes Data Services (IDS).
Median earnings rose to £1.6 million when long-term incentive plans and share options were included, said the report.
Basic pay increased by 2.4% in the last financial year for the directors, and by 1.9% for finance executives in other firms, according to the research.
Adam Cohen, author of the report, said: "The so-called 'shareholder spring' has seen executive remuneration in the spotlight once again. While salary rises in the FTSE-100 have been modest, bonuses, which account for a greater proportion of pay, have increased much more strongly."
IDS said some companies have felt under pressure to build more attractive bonuses into pay packages for finance directors to retain them, or to entice skilled finance directors away from their existing employers.
According to IDS, the median bonus payment for a FTSE-100 finance director was equal to 127% of salary in the last year.
Firms in the finance, utilities and construction sectors showed the greatest disparity between basic salary and total earnings, suggesting these sectors are most highly geared towards variable pay, the report added.
TUC general secretary Brendan Barber said: "The growing wage inequalities between those at the top and everyone else was a key cause of the financial crash and global recession. Worryingly, lessons have not been learned and excessive pay is creeping back into boardrooms, even as the wages of ordinary workers continue to fall.
"Shareholders, employers and Government all have a role in ensuring that executive pay is clearer and fairer. Allowing worker representatives on to remuneration committees would be a start, adding a sense of reality that many of those setting boardroom pay seem to lack."
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