Stats NZ data delays highlights reliance on Wgtn office

Tuesday 15 November 2016 02:53 PM

Stats NZ data delays highlights reliance on Wellington office

By Paul McBeth

Nov. 15 (BusinessDesk) - Statistics New Zealand's decision to review the schedule of data releases after this week's 7.5 magnitude earthquake left its Wellington headquarters unusable for up to a year has highlighted the agency's reliance on the head office.

The quake damaged the 11-year-old building to such an extent that Statistics NZ's staff won't be allowed back in for up to 12 months, and its website and public data sources are out of action, although its Auckland and Christchurch offices remain open. The agency was scheduled to release the September retail trade survey today, but has put that off until further notice and is reviewing its current release calendar.

While that's seen as more of a nuisance to economists who rely on government data, New Zealand Institute of Economic Research's Christina Leung says the agency has too much emphasis on the Wellington office.

"Even with the Auckland and Christchurch operations, they're so reliant on Wellington and that's out," Leung said. "It's definitely not ideal."

Statistics NZ has been here before after its major data processing site in Christchurch was damaged in the 2010 and 2011 Canterbury quakes, and the agency delayed some key data after that disaster.

Still, the delays to the release calendar won't be as relevant over the next month with largely second-tier data scheduled for publication.

Bank of New Zealand head of research Stephen Toplis said he was quite relaxed given Statistics NZ will get on top of things eventually and that there hadn't any indication of a hold-up in the major indicators, while ASB Bank chief economist Nick Tuffley expects there will be some short-term disruption and slower releases of some data, but says it will "definitely be a temporary thing".

Last week the Reserve Bank delivered its final monetary policy review of the year and won't update its economic forecasts until February. A spokesman said its economics team works with Statistics NZ, but also uses other sources when forming its view on the economy.

Statistics NZ signed an 18-year lease with CentrePort for the Harbour Quays building during the 2016 financial year. CentrePort has suspended operations since the quake, citing damage to buildings and liquefaction in places. Fellow Harbour Quays tenant Bank of New Zealand has been told its Wellington office is "structurally sound", but doesn't anticipate sending staff back into the building this week.

CentrePort's investment property was valued at $47.9 million as at June 30 and generated $3.7 million of revenue in the year.

(BusinessDesk)

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