Governance news bites

Governance is always a busy space, and the past few weeks are no exception. New relevant-to-governance items in the news include:

Fletcher Building leadership turmoil

Former Port of Tauranga boss Mark Cairns CFInstD withdrew from the race to chair Fletcher Building, criticising the company’s prolonged selection process. Despite strong shareholder support, Cairns cited internal politics and governance issues. Fletcher Building faces leadership upheaval with vacancies for a chair, three directors, a CEO and a CFO following significant financial losses. Critics, including Sam Stubbs of Simplicity, blame the board’s inaction and self-interest. The company remains under pressure to stabilise its governance and rebuild shareholder confidence.

Gender pay gap stagnation

Despite increasing female representation at executive levels, New Zealand’s gender pay gap remains stubbornly high. The latest Strategic Pay survey highlights only 27 per cent of board chairs and 42 per cent of directors are women, with minimal improvement in pay disparity. The private sector lags in female inclusion, particularly in high-paying industries such as IT and wholesale. Calls are growing for NZ to adopt EU-style gender balance targets to drive meaningful change.

Government AI development

Judith Collins, Minister for Digitising Government, suggests the Government might develop a bespoke AI to handle sensitive data securely. This move aims to address privacy concerns and cyber security risks posed by tech companies’ AI services. Collins envisions AI’s potential in health diagnostics and education, citing successful international examples. A proposal for a unified government services app is also in the works, inspired by New South Wales’ digital solutions.

Māori AI ethics

Dr Karaitiana Taiuru MInstD is urging transparency and cultural sensitivity in the use of AI by New Zealand government agencies, especially in healthcare. As a leading voice on Māori data and tech ethics, he advocates for policies that protect Māori data sovereignty and ensure fair access to emerging technologies. Taiuru highlights AI’s potential benefits but stresses the need for ethical considerations and culturally appropriate practices.