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Brian Harmer, Wysiwyg editor

WYSIWYG New Zealand News

12 August, 2002

Copyright © 1995 Brian Harmer

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Somehow, I haven't been anywhere for a while, and that makes it a little more difficult to wax lyrical over aspects of the landscape. A highly variable climate has made any kind of travel a less than usually appealing prospect. We have had some marvellous bright winter sunshine, and some truly atrocious gales, and even some snow on the Tararuas. On average, I guess that means the weather has been overcast and breezy. Looking Eastward across the Hutt Valley was really odd this evening. There was a low level haze or fog at the base of the hill and a fairly heavy rain cloud sitting on top of the hills, and layer upon layer of wave cloud soaring up into the sky catching the last light of day ... and all the different layers of cloud were in different shades of grey, alternating light and dark, like some great laminate in the sky. Anyway, I'm late, so I'll keep it short.

See you next week

All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, IRN Ltd. Any text above this point, and all subsequent material in parentheses, and concluded with the initials "BH" is the personal opinion of Brian Harmer as editor of this newsletter, or occasionally "HH" will indicate an opinion from Helen.

In all cases they are honest expressions of personal opinion, and are not presented as fact.

This week's formatting is sponsored by Pamela in Switzerland. Many thanks Pamela.

On with the news:


Tuesday, 6 August

COMMERCE COMMISSION REPORT DISMAYS AIRPORT

A dismayed Auckland International Airport says the Commerce Commission's recommendation that it faces price controls is based on out-of-date data. The airport's shares dived more than four percent in early trading today, following the commission's report. The Commerce Commission has looked at whether competition is limited at our international airports, and whether controls are needed. It has recommended the government implement price controls for Auckland Airport, but not Christchurch or Wellington. It says Auckland Airport is making excessive returns. Commerce Commission Chairman, John Belgrave, says the report should have an impact on the negotiations airlines have with airports. He says it will reduce airfield landing charges if that is the way the Government goes. The Government will decide by Christmas whether or not to accept the recommendation. But Auckland airport says the Commission has valued its assets on a historical basis, and ignored future runway development. Airlines, meanwhile, are welcoming a Commerce Commission recommendation that Auckland International Airport faces price controls. Board of Airline Representatives president, Brendan Fitzgerald, says the report will back up airlines in their consultations with airports over charges. The Commerce Commission says Wellington Airport's recent price increase brought it close to facing controls as well.

(I think everyone except the Airport Company and the Electricity Transmission companies who can now see the spotlight swinging their way was delighted - BH)

CIRCUMCISION BUNGLES CAUSE CONCERN

Surgeons are concerned over the suffering inflicted by GPs on boys, when they perform a circumcision for which they are not qualified. An Auckland pediatrician is concerned about the increasing number of cases where he is performing corrective surgery after the initial operation has gone wrong. Australasian Royal College of Surgeons director of surgical affairs, John Simpson, says the college is aware of the concerns and is concerned that only GPs with the proper qualifications carry out the surgery. But he says often families who want their sons circumcised for cultural reasons cannot afford the cost of having it done privately, and GPs offer to help out. He says part of that is because District Health Boards do not fund the surgery because it is seen as non essential.

LOTR SETS NEW RECORD

Lord of the Rings video and DVD sales today have exceeded previous release records. The take-home versions of the first episode of the trilogy went on sale throughout the country today. Roadshow Entertainment which is distributing the New Zealand-made film on video and DVD, says 180,000 units have been sold today. A spokeswoman for Roadshow says that is a new record for video releases.

NOT GUILTY VERDICT IN POWELL CASE

Relief for Christchurch businessman Derek Powell tonight with a Christchurch jury returning a not guilty verdict on a charge of manslaughter. The charges related to the death of Christine Clarke at a picket-line protest at Lyttelton Port in December of 1999. After four-and-a-half hours of deliberation, the jury returned a not guilty verdict shortly before five o'clock this evening. Derek Powell and his family showed visible signs of relief as Chief Justice Sian Elias told him he was free to go. Outside the court, Derek Powell thanked his lawyer Pip Hall for his hard work and dedication, but made little other comment about the verdict. Pip Hall remained critical of the actions of Lyttelton police in the case.

SPIN DOCTOR SACKINGS DENIED BY ACT

Act's deputy leader is furious over claims two of the party's key spin doctors were sacked, as speculation of a leadership coup gains momentum. At least one of the two press secretaries is said to be completely shocked at being told his services will not be needed for the coming parliamentary term. One of the staff is Act's chief press secretary - the other, leader Richard Prebble's press secretary. The party's deputy leader, Ken Shirley, says failing to renew the men's contracts is not the same as being sacked. He says the decision not to keep the positions was made by Act's entire caucus - including Mr Prebble, who was consulted over the process.

HIKOI SETTLES IN FOR THE NIGHT

The Young Nick's Head protesters outside Parliament appear to be digging in for the night. Earlier today, Speaker Jonathan Hunt agreed that a tent should be allowed to go up, as it is a very cold day in Wellington. However, it was on the condition it would be removed from the grounds by this evening. By six o'clock, there was still no sign of it coming down, and our reporter says it looks as if the protest group is to defy Mr Hunt's authority. Around 30 of the protesters are still occupying the site, drinking soup and singing songs.

CONTROLS ON AIRPORT CHARGES A "CLEAR WARNING"

Air New Zealand is calling for the country's airports to get round the negotiating table, following a Commerce Commission report which says they are making excessive profits. The commission has recommended Auckland International Airport face controls on what it charges for airfield services. It says Wellington International Airport nearly faced a similar ruling. Air New Zealand hopes the airports will take the report as a clear warning. Spokesman David Beatson says Auckland is the third most profitable international airport in the world and is generating margins way in excess of anything an airline can make. He says there is not true competition for airfield activities in New Zealand, because there is only one airport per city. He says the airports have to be careful they do not abuse that position. Airlines are viewing the report's recommendations as a benchmark for future negotiations.

JURORS HUG ACCUSED AFTER VERDICT DELIVERED

Relief for one side, bitter disappointment for another as friends and families come to terms with the aftermath of the Derek Powell manslaughter retrial. After deliberating for four-and-a-half hours, the jury at the High Court in Christchurch has found Mr Powell not guilty of the manslaughter of picketer Christine Clarke. Mr Powell was charged when his Toyota four-wheel drive vehicle hit the 45-year-old at the Lyttelton port late in December 1999. The original verdict of guilty was overturned on appeal as a direction to the jury by the judge was challenged. During the retrial, the defence disputed the Crown's claim that that Ms Clark could be clearly seen as Mr Powell's vehicle accelerated through the picket line. Mr Powell's lawyer Pip Hall acknowledges that the case has been difficult for everyone involved. He hopes Ms Clark's family will be able to put the tragedy behind them and get on with their lives. But Council of Trade Unions president Ross Wilson says the verdict seems to send out the message that it is not necessary to respect others who are exercising their rights to protect their jobs. At the end of the trial, some of the jurors shook Mr Powell's hand and others hugged him.

(Though there is apparently no law preventing post-trial fraternisation, many observers were uncomfortable with the spectacle of jurors hugging Mr Powell after the verdict, and even reportedly drinking in a bar with him afterwards. I have no personal knowledge of whether the reported happenings are true, but I have a preference for maintaining the appearance of neutrality for a few weeks at least. - BH)

FALLING COMMODITY PRICES BLAMED FOR DOLLAR'S DIP

Falling commodity prices are being blamed for the dip in the New Zealand dollar. The kiwi has slipped to 45. 14 US cents after hitting a high of just over 49 cents several weeks ago. BNZ Chief economist Tony Alexander believes the decline is tied to concerns about world growth because of the weak US economy. He says that points to commodity prices going down worldwide. Mr Alexander says the New Zealand and Australian dollars tend to move in response to where people see commodity prices going. Meanwhile, figures due out later this week should be a pointer as to whether the Reserve Bank puts up interest rates next week. The bank is due to review the official cash rate next Wednesday. Figures on retail spending and the labour market are due out this week. Mr Alexander says the bank will be keenly watching those results. He says if the labour market is tighter and retail spending is up, the Reserve Bank could raise interest rates by a quarter of a per cent. But he says the likelihood of that is declining.


Wednesday, 7 August

AIDS FOUNDATION QUESTIONS UNITED FUTURE

The AIDS Foundation says the United Future party's sudden rise in popularity means its MPs' beliefs have not yet been publicly scrutinised. United Future MP, Paul Adams, is facing flak after it emerged that back in 1993, he had lobbied for AIDS sufferers to be quarantined. Mr Adams now says his view is that if a person has a contagious disease, those around them should be made aware of it. AIDS Foundation executive director, Kevin Hague, says it is not good enough for Paul Adams to neither confirm nor deny whether he stands by his 1993 comments. He says some United Future MPs appear to come from fundamentalist Christian backgrounds, and he is calling on leader Peter Dunne to come clean about their beliefs.

(In the final count of votes, the rules of MMP saw Mr Adams as lowest ranked list member, unseated in favour of a Green member. - BH)

POLICE INVESTIGATE GIRL'S DEATH

Hamilton detectives are investigating the suspicious death of a 12-year-old girl. The girl, whose name has not yet been released, was taken to Waikato Hospital on Saturday night with head injuries. She was transferred to Starship Hospital on Sunday, and died later that day. Detective Senior Sergeant Glenn Dunbier says police are not yet certain how the girl received the injuries. Police are waiting for the results of a post-mortem examination, as well as pathology and forensic tests. But they believe the injuries were not accidental.

MAKE CIRCUMCISION ILLEGAL - MCCLAY

The Children's Commissioner is to ask the Government to consider making the circumcision of boys illegal, unless it is for good medical reasons. An Auckland pediatrician is concerned at the growing number of times he has had to perform corrective surgery after the initial operation went wrong. The Royal College of Surgeons says it is aware of those concerns, and wants circumcisions only performed by GPs who have the proper qualifications. Children's Commissioner Roger McLay says it seems to be a tradition that boys are circumcised because their fathers were. He says that is no reason to do something that may infringe a baby's rights.

(Ow! I think there are some very difficult cultural issues here. - BH)

JEWELLERY STOLEN FROM CAMPERVAN

A quarter of a million dollars-worth of jewellery has been taken in a raid on a campervan. The gold and silver chains, lockets and bangles were taken from the vehicle, parked in Tauranga. It belonged to a self-employed jewellery salesman from Auckland. He had left his vehicle to go for a meal. When he returned, he found a young man inside the campervan, but the suspect managed to escape.

END IN SIGHT TO YOUNG NICK'S HEAD STANDOFF?

Hopes have been boosted that a solution to the Young Nick's Head stand-off can be reached before Friday's deadline. Poverty Bay Maori protesting the sale of the headland to a US businessmen are still on Parliament's grounds. But they have removed their tent after Finance Minister Michael Cullen agreed to set up a meeting between protest leader Tu Wyllie and the the lawyer for the proposed buyer. Mr Wyllie's iwi has offered to buy a third of the land. But he says they will try to work with the purchaser to look at options which will not compromise the ownership issues raised by local iwi. Dr Cullen has to decide whether to approve the sale on Friday. Mr Wyllie may try to get that extended.

(Not yet! The struggle is still on as of Monday in the new week - BH)

OVERCROWDING FORCES SURGERY CANCELLATION

There is no immediate end in sight to the overcrowding problems at Auckland and Hawke's Bay hospitals. Auckland Hospital has cancelled all non-urgent surgery, as it tries to make room for acute patients who are waiting for beds. Auckland District Health Board spokeswoman, Brenda Saunders, says the hospital is extremely busy with the annual winter influx of patients. She says by calling off non-urgent surgery they can deal with the emergencies, which are coming in large numbers right now. Ms Saunders says surgical procedures scheduled for tomorrow have also been cancelled. At Hawke's Bay Hospital surgery has been postponed yet again. Large numbers of patients coupled with staffing shortages have caused all operations requiring hospital stays post-surgery to be postponed. The Hospital's Medical Director says people are being admitted with the usual winter ailments, including acute respiratory infections. Dr Richard Meech says postponing surgery is the only way the hospital can reduce the flow of patients coming into the hospital. Medical Services Manager, Alistar Ayto, says general practitioners and rest homes have been informed about how busy the hospital is, and have been asked to limit referral where possible. The situation at both hospitals is being reviewed daily.

WE ARE NOT SHUT OUT - THE GREENS

The Greens are denying they have been shut out of a deal with Labour. Talks between Labour and United, and between Labour and the Greens are all but finalised, with the Greens having what might be their last meeting with Labour negotiators today. There is speculation Labour has turned its back on the Greens, preferring to strike a confidence and supply deal with United Future. But Greens co-leader Rod Donald says anything is still possible. He says his party is trying to work through a range of issues and the final detail of any arrangement has yet to be confirmed. Mr Donald denies the Greens have been difficult during coalition talks.

(And we believe that if you sail far enough West you will fall off the edge of the Earth? - BH)

MODEST RISE IN SALES

While the Warehouse has posted healthy sales figures for the last quarter, other retailers are facing a more modest rise in business. The Warehouse has posted sales of $437. 5 million for the fourth quarter, a rise of 10. 9 percent on a year ago. But seasonally adjusted total retail sales for other retail businesses have increased just 2. 3 percent in the June 2002 quarter compared with the March 2002 quarter. Statistics New Zealand says the figure is due to a monthly decrease of 1. 5 percent in May 2002 and monthly increases of 2. 8 percent in April and 0. 5 percent in June 2002. The largest contributor to the rise in sales were the motor vehicle retailing and servicing sectors. The only falls occurred in the food retailing and appliance retailing store types. Regional growth remained strong for the quarter, with all six major regions recording an increase in seasonally adjusted sales, compared with the March 2002 quarter. The largest increase occurred in the Waikato region, which is up 4. 2 percent. Statistics New Zealand says the retail sales trend remains positive, continuing a pattern of growth evident since 1998. Analysts say the retail boom is moderating and that should encourage the Reserve Bank not to increase interest rates when it reviews the Official Cash Rate next week.

INTERNATIONAL NETWORK CAN DEFEAT PAEDOPHILES

The Children's Commissioner believes international co- operation is the only way to stop child pornographers. Internal Affairs in New Zealand, and Queensland Police have just launched a joint operation. Two homes in Christchurch and Brisbane have been raided and material has seized. Children's Commissioner Roger McClay says pornographers are being caught because international agencies are networking to defeat them. He says paedophiles also rely on being able to access a global network to meet and trade material. Mr McClay says the international co-operation ensures pornographers do not get that chance to work together.

(Mr McClay is an idealist, which is not a bad thing, and I suspect, technically naïve - BH)


Thursday, 8 August

UNION URGES QANTAS/AIRNZ DEAL

The union representing three thousand Air New Zealand workers says cultural cringe over Australians buying into the airline could ultimately destroy it. The Engineering, Printing and Manufacturing Union is calling for an end to the campaign against Qantas buying into Air New Zealand. It says enough has been heard from romantic capitalists and it is now time for economic realism. Secretary Andrew Little says what happened to Ansett and Qantas New Zealand has shown that the country cannot sustain two domestic airlines. He says without some sort of relationship, Air New Zealand risks Qantas competing - and the Australian carrier has deeper pockets. Andrew Little says Qantas involvement will secure existing jobs, and offer new opportunities, especially in engineering. He says from the point of view of employees, and the national interest, it is better for Qantas to have a minority shareholding in the national carrier.

(Eh? Qantas has always competed. That hasn't stopped ANZ being a better airline with better customer ratings. - BH)

HESKETH NOT GUILTY

Hastings man Sydney Hesketh has been found not guilty of murdering his wife by reason of insanity. A High Court jury in Napier has given its verdict this afternoon after just ten minutes of deliberations. The defence claimed the 65- year-old accused was suffering an epileptic fit at the time and it affected his state of mind. Adrienne Hesketh died of stab wounds at their Haumoana home last December. Justice Hammond in his summing up told the jury if it found Hesketh not guilty through insanity he would be detained in a hospital.

A NEW GOVERNMENT IS BORN

The Prime Minister says it is a complex set of arrangements which form her new Government. Helen Clark has announced a minority coalition deal with Jim Anderton's Progressive Coalition, a confidence and supply agreement with United Future, and ongoing talks with The Green Party. Miss Clark says the coalition will pursue its legislative programme with the close involvement of United Future, and aim for a good working relationship with the Greens. She says the deal has the objective of providing stable government over the next term of Parliament, in order to implement a comprehensive policy programme. The Prime Minister says those goals include including increasing economic growth and reducing inequality. She says all parties will have to work hard to keep lines of communication open and work "MMP-style". Helen Clark says it is clear the Greens will want to support the Government in areas where United Future will not. Miss Clark says the Government's policy programme over the next term will be that of the coalition partners. However she says it will take into account the policy priorities of United Future. She says as an immediate priority, the Government will, in consultation with Peter Dunne, the United Future leader, develop by the end of this year proposals for a Commission for the Family, one of his party's key campaign issues. She says the government will also give priority to a comprehensive drug education strategy aimed at young people - a key policy of both the Progressive Coalition and United Future. Miss Clark says the Government and United Future will operate on a 'good faith and no surprises' basis, and consult on the broad outline of the legislative programme, and there will be regular leadership meetings. She told Newstalk ZB that although Mr Dunne does not have a cabinet seat at present, she is not ruling anything in or out. Political editor Barry Soper expects Peter Dunne to take up a portfolio some time in the future. He points out that the leaders of the three parties involved in today's agreements were all in the same Labour party caucus back in 1984, so it is likely to be a comfortable and enduring partnership. He says the perception by some Labour supporters that the party has moved to the right by joining with Peter Dunne is a real one, but says it will be interesting to see how United Future works out as a partner in practice. Barry Soper says some of the harsh things that were said during the election campaign by both Labour and the Greens about each other set both parties back significantly in terms of any future relationship.

FRANZ JOSEPH MELTING

Franz Joseph Glacier is thought to be becoming a casualty of global warming. It is one of six glaciers worldwide showing clear signs of melting. Scientists have been measuring prominent glaciers on six different continents, since 1860. Franz Joseph has retreated around one-and-a- half kilometres in this time. Greenpeace Climate Campaigner, Robbie Kelman, says it is an example of what is happening to thousands of glacier worldwide. He says the temperature is rising because of our excessive use of fossil fuels which are adding to greenhouse gases.

NO LINK BETWEEN DIOXIN AND BIRTH DEFECTS

A new report has failed to find a conclusive link between dioxin and birth defects in Taranaki. The report is based on records kept at the region's main maternity hospital, from 1965 to 1972, and was carried out for the Taranaki District Health Board by Dr Patrick O'Connor, Taranaki's Medical Officer of Health. Residents and pressure groups claim production of the herbicide chemical 2-4-5-T at the Ivon Watkins Dow plant in Paritutu from the 1960s until 1987 caused birth defects. Today's report dealt only with neural tube defects such as spina bifida which have already been linked with dioxin. It found 23 cases - or 2. 5 more than the national average - which it says is not statistically significant. Three cases were recorded for mothers living near the IWD plant - three times the expected number. The report says this can not be linked with any particular cause.

("In Taranaki" is the key phrase here. I seem to recall that early research said Agent Orange was innocent, and that there was no such thing as Gulf War syndrome - BH)

VIRUS HITS DUNEDIN BABIES

Dunedin is experiencing a rise in cases of a potentially deadly virus affecting babies. A number of infants have been admitted to hospital with the respiratory syncytial virus. The virus can hit babies hard, particularly newborns, and there is no vaccine or cure. Record numbers of babies have been seen by the paediatric assessment unit in the past month, with some being admitted. Parents are being advised to keep their babies away from crowded areas, and people with coughs and colds.

SKIES FORMALLY OPENED

A historic air service deal has been reached between New Zealand and Australia. Air services between the two countries have been formalised, with the signing of an open skies agreement. Acting Transport Minister, Judith Tizard, says the treaty formalises a memo of understanding Australia and New Zealand signed back in November 2000. She says it allows airlines of both countries to operate services beyond the other country, over any routing they choose, and with as many flights as they like. Ms Tizard says previously, such services were limited to the equivalent of 12 Boeing 747 services a week, and to a maximum of 11 countries. Airlines were also required to file fares for approval. The deal is Australia's first open skies agreement.

(I have this vision of a ribbon hanging in mid air, and someone cutting it with the words, "I now declare this sky open!" - BH)

NOT GUILTY PLEA IN CHILD PORN CASE

The West Auckland man facing 57 charges relating to child pornography has made a brief appearance in court today. Glen Roberts is believed to be at the centre of one of the country's biggest porn busts. A computer seized by Internal Affairs allegedly contained 190,000 objectionable images. US Customs officials are understood to have interviewed Roberts with a view to prosecuting him. He is allegedly a dealer with hundreds of clients in America and Europe. Roberts today pleaded not guilty to the charges and will reappear in November for a status hearing. It is understood amended charges are likely to be laid.

SURPRISE AT UNEMPLOYMENT FIGURES

A drop in the unemployment rate has come as a surprise to the Government. The number registered as out of work is down to 5. 1 percent. It is the lowest rate in 14 years. The seasonally adjusted figure has been released by Statistics New Zealand in the Household Labour Force Survey for the June quarter. The survey shows that the working age population grew by 1. 8 percent - more than 50,000 people - since June of last year. In terms of unemployment, New Zealand has moved up to 10th equal on the OECD rankings, bringing this country level with the UK and Sweden. Employment Minister, Steve Maharey, says he thought there would have been an increase due to the volatility in the US markets. He says it is great to see our market holding its own. Mr Maharey says if we can continue to minimise the effects of overseas markets, there is no reason why unemployment cannot continue to drop.

GREENS GO ON ATTACK

Greens co-leader, Jeanette Fitzsimons, says there is no way the Greens can give confidence to a government which her party believes is sabotaging New Zealand's economic future, and putting health and the environment at risk. Jeanette Fitzsimons says the Greens explored all forms of relationship with Labour. The Greens today announced they had no choice but to refuse to back a centre-right government, which they say is what the country is now assured of. The party says it will not support Labour over the critical confidence and supply votes in the House. Greens co-leader Rod Donald says crucial to that was Labour's refusal to maintain the moratorium on GM. He says Labour was not offering any other significant policy outcomes for his party. Mr Donald says it became clear last Wednesday that a deal would not be struck with Labour. He says Labour was firm and assertive throughout the negotiating process, and offered the Greens very little. IRN's political editor Barry Soper says the decision by the Greens confirms Peter Dunne's United Future Party as the power broker but also allows the Greens to court others on the left of the political spectrum including the trade union movement.

LANGE UNDERGOING CHEMOTHERAPY

Former Prime Minister David Lange does not have leukaemia, but he is undergoing a course of chemotherapy. Mr Lange's wife, Margaret Pope, says the chemotherapy is making him feel quite unwell. Ms Pope says Mr Lange is suffering from a plasma disorder, which produces insoluble protein into the bloodstream. Mr Lange underwent heart surgery several months ago and was recovering well when he was struck down with his latest illness. Bad health has dogged Mr Lange since the early 1980s. He had his stomach stapled to reduce weight and whilst Prime Minister he had angioplasty to clear blocked arteries. Mr Lange turned 60 last Sunday.

SUPPORT FOR JUDGE

A Victoria University law lecturer has come out in support of a High Court Judge, who has admitted making a mistake when sentencing a man for a hammer attack on his mother. Justice Salmon did not impose a minimum non-parole period because he believed he could not under the new Sentencing Act. Law lecturer, John Miller, says he can understand the confusion, because the new rules force judges to cross- reference between two pieces of legislation. He says the judge's admission should not affect public confidence in the legal system.

FIRM HAS SECRET WEAPON

A New Zealand IT company says it could not have made it big in the United States without first making it small in this country. Zeacom produces software which helps small to medium size businesses deal efficiently with telephone enquiries. In just two years in the US, it has picked up around 200 clients. It is one of three finalists in the 'Exporter of the Year' section of the 2002 American Chamber of Commerce/United Airlines Success and Innovation AwardsZeacom spokesman Mike Engle says the firm's experience with smaller companies in New Zealand gave them six years' head start when they got to the US. He says rival companies in the US concentrated only on the huge multinational firms. Mr Engle says they were able to present US companies with solutions which were already tried and tested in New Zealand. He says expanding to the US is the dream of many successful New Zealand companies and Zeacom has worked extremely hard to make this happen for them. He says kiwis need to have a bit more confidence in their own technical abilities. He says there are some outstanding, world class people in this country working in the IT industry.

YOUNG NICK'S HEAD MEETINGS CONTINUE

Last ditch meetings over the future of Young Nick's Head have been continuing. The headland is important spiritually to Maori, and historically to Pakeha. Representatives of the Poverty Bay Maori protesting the sale of the headland have met with the lawyers of potential US buyer John Griffen. There are more meetings set down for this afternoon. Protest leader Tu Wyllie says he is not feeling any more confident of a breakthrough following this morning's meeting and he is not sure Mr Griffen understands the depth of feeling surrounding the sale. Finance Minister Michael Cullen has to make a decision on whether to approve the sale tomorrow.


Friday, 9 August

SNOW CLOSES DESERT ROAD

The wintry weather sweeping the country is causing problems for motorists in the central North Island. Snow has closed the Desert Road. The alternative routes are State Highways 47, 4 and 49, but Transit New Zealand says care is needed on all three because of possible snow flurries.

GOFF DEFENDS POLICE HOUNDING ALLEGATIONS

The lawyer for the man found dead in his car in West Auckland this week is carrying on plans to seek compensation for his client. Richard Hunia had earlier in the week been labeled by police as a sexual predator after an alleged attack on a Chinese woman in his home on Saturday. Before these allegations Hunia was seeking damages for serving 15 months extra on his prison sentence for a rape he committed in 1993. His lawyer Tony Ellis says his client had also asked him to file proceedings against the police for making false allegations over the alleged assault and attempted sexual violation of a young Asian woman in Auckland. He says he is unsure how he will put his case together. Police found Hunia's body in a car at Huia, in West Auckland. However, Justice Minister Phil Goff says police were absolutely right to warn the public of the dangers posed by Hunia. He says Mr Ellis' claim that police were hounding his client and the threat of legal action is bizarre and inappropriate. Mr Goff says police would have been remiss in their duties not to sound a public warning about the potential danger posed by Hunia. He says Hunia had a 24-year history of offending. For his most recent conviction, he was sentenced to 10 years imprisonment for sexual violation. Mr Goff says Hunia was considered such an ongoing risk to the safety of the community that the Parole Board made an order requiring him to serve his full sentence because it was thought that he would reoffend. "In the circumstances given Hunia's history of offending and the fact he was placing advertisements to meet women, the police were right to issue a public warning. It is bizarre that in this case, Hunia is being made out as the victim by his lawyer when the real victims were those who Hunia was convicted of sexually violating and allegedly attempting to sexually violate".

EURO CREDIT FOR PIPFRUIT ORCHARD

A Napier orchard is the first in New Zealand to become a fully EUREP GAP accredited pipfruit orchard. EUREP GAP is the Euro Retailer Produce Working Group Good Agricultural Practice AssessmentThe Protocol sets out to develop best practice for global production of fresh produce and horticultural products. Once it is awarded, it demonstrates to customers a company's commitment and ability to produce safe and clean food, under an exhaustive system verified by an internationally recognized independent third partyWaima Holdings has completed the certification process. Manager, Mark Ericksen, sees it as an investment. He says it means that the orchard can sell its produce in the supermarkets of choice without limitations.

MAN CHARGED WITH GIRL'S DEATH

Detectives have charged a 35-year-old unemployed Hamilton man with the murder of a 12-year-old girl. Kelly Gush died of head injuries last Sunday. Detective Senior Sergeant Glenn Dunbier says the man was known to the girl and police are not looking for anyone else in connection with her death. He cannot elaborate further on the identity of the man, other than to confirm he is not Kelly's natural father. Mr Dunbier says police have not been able to find the girl's father, Kevin Gush, to inform him of his daughter's death, which is why Kelly's name has not been released earlier. Police say the death of any child is difficult for the enquiry team, but they are glad to have been able to conclude the matter for the sake of Kelly's mother. The accused man is appearing in the Hamilton District Court.

GREEN LIGHT FOR YOUNG NICK'S HEAD SALE

The sale of Young Nick's Head to a US millionaire will be approved this afternoon by Finance Minister Michael Cullen. It is understood the sale will have conditions place on it to recognise the historical importance of the Poverty Bay headland. Members of Ngai Tamanuhiri have been protesting outside Parliament this week in a last ditch effort to try to stop the sale. The Gisbourne hapu has also gone into last minute talks with the lawyers of the buyer, New York millionaire financier, John Griffin. However the group may have to consider other options to try to stop the sale and have hinted that legal action may be considered. Meanwhile the protesters have re-erected a tent on Parliament's front lawn. Earlier this week they defied the Speaker by breaking his rules and keeping the tent up overnight. The protesters want to buy the site's headland, which comprises a third of the 600ha site, arguing the site has spiritual significance to both Maori and Pakeha, as it was the first part of New Zealand spotted by the crew of Captain's James Cook's ship, Endeavour in 1769.

(Notwithstanding an apparent settlement on Friday, the outcome was not well received back in Gisborne, and it seems the dispute is alive and well - BH)

TELECOM IN THE RED

Telecom has reported a net loss of $188 million for the year ended 30 June 2002, after a partial writedown of its Australian investment, AAPT. However, net earnings before abnormals and the Southern Cross dividend were $670 million, up 9. 1 percent on comparable net earnings last financial year of $614. Abnormal items included a $850 million writedown in the carrying value of AAPT and an additional charge of $8 million after tax resulting from the close down of the CDMA rollout in Australia. Telecom's capital expenditure of $778 million is down 49 percent on a year earlier and is forecast at $780 million for the 2003 year. The company says the reduction reflects tight control on capital programmes and completion of major projects in the previous year. Total group revenue is down $5. 54 billion, versus $5. 65 billion a year earlier. Telecom Chairman Roderick Deane says the core result shows Telecom's strong operating performance in a challenging environment. He says Telecom has performed well in relation to its international peers with strong cash flow and tight control on spending. He says the company is maintaining its dividend at 20 cents per share for the financial year. Dr Deane says the adjustment reflects current expectations of future cash flows of AAPT within a changed telecommunications environment. He believes the writedown will not have a material impact on Telecom's financial position and ability to access debt markets. The company purchased AAPT for $2. 5 billion in 2000. Telecom shares are trading seven cents higher at $4. 94.

NEW BANK DROPS RATES

Kiwibank has dropped home mortgage interest rates. The new bank's floating rate is now 6. 95 percent. Kiwibank claims that rate is now one percent lower than its main rivals. Kiwibank is also dropping fixed term home loan rates for new loans by 0. 15 percent. The one year rate is now 7. 15 percent, two years 7. 35 percent and five years 7. 70 percent. Chief executive Sam Knowles says the downward move follows a decline in the 90-day bank bill rate and longer- term interest rates. The NZ-Post operated bank now has 250 branches which it claims makes it by far the biggest network of any bank in New Zealand.

PM AWAITS MORE GM INFO

The Prime Minister is waiting for more information on the latest GM corn scare. Maize grown in Pukekohe and Gisborne has tested positive for possible GM contamination, despite the seed being tested in the United States before importation. MAF says the seed was grown under contract for an Australian firm and was not intended for human consumption. The crops are now being gathered for further testing. Prime Minister Helen Clark says the first test may have provided a false positive. She says the Government is waiting for more advice from the experts investigating the case. However, Miss Clark says it may be that GE is now so widespread in maize around the world that New Zealand cannot import any without risk of contamination. The Ministry of Agriculture and Forestry says its first priority is to trace and secure all of the seed. Policy director Larry Fergusson says the soil the seed was grown in will be checked to see if there is a risk of residual seed. The surrounding area will also be checked for possible cross-contamination. Mr Fergusson says MAF is grateful to Australian firm Pacific Seeds for promptly reporting the problem, but ERMA and the Ministry for the Environment may want to consider what else can be done to protect New Zealand from GM seeds.

PM HOPES LAW-MAKING PROCESS FASTER

The Prime Minister believes the new coalition agreement will speed up her legislative programme through parliament. Labour has signed a coalition deal with Jim Anderton's Progressive Coalition and a confidence and supply agreement with United Future. Helen Clark says she had difficulty in the last parliament getting the house to sit in urgency to keep up with its legislative timetable. She says she will be talking to Peter Dunne about getting extra time in Parliament to progress the plain and ordinary legislation which traditionally has had trouble getting any debating time. And Miss Clark admits the views of some of United Future's new MPs are not the views of the party in general but says leader Peter Dunne has her full support. She says she has known Mr Dunne for 18 years and he has always been a mainstream, moderate person. She says that is the basis on which the new relationship has been formed. Mr Dunne has signalled that he may reverse his stance on the type of legislation he has previously opposed, but is adamant that does not mean he is selling out key party philosophies. He says the situation has changed now that he will have input into the design and shape of legislation. He says United Future is committed to offering stability for the next three years and beyond. Meanwhile, the Greens could end up becoming a more broad-based party of the political left, following its refusal to team up with Labour. Green's co leader Jeanette Fitzsimons says it may be that the Greens fill some of the vacuum left by the Alliance as there is no other party in Parliament that shares their views. Co- leader Rod Donald believes his party's stance on issues such as foreign policy and free trade will attract new support.


THE FINANCIAL PAGE

Date: 8 August 2002          Brian Dooley
                             Wellington  New Zealand

CURRENCIES
The currency codes given below conform to ISO 4217, which
can be found at http://www.xe.net/currency/iso_4217.htm.

The rates given are for telegraphic transfer and are
as given in the Wellington Evening Post today.

To Buy NZD 1.00

USD  0.4606
AUD  0.8555
GBP  0.2995
JPY  55.56
CAD  0.7270
EUR  0.4738
HKD  3.6012
SGD  0.8142
ZAR  4.8361
CHF  0.6916

INTEREST RATES (%)
Call  : 5.75
90 Day: 5.86

Brian M. Harmer

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