From news at wysiwygnews.com Sun Dec 7 08:35:32 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Sun Dec 7 08:35:36 2008 Subject: WYSIWYG NEWS - 7 December, 2008 Message-ID: <5C980AE42F38704494A3D4FD9A6F2E7B036B9D55@STAWINCOMAILCL1.staff.vuw.ac.nz> Subject: 7 December, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. One of Canterbury's best kept secrets, Geraldine, is a picture perfect little town with a population of just under 2,500. Regrettably, after a single night's stay, we had to move on in order to reach Queenstown as early as possible. With the sun barely above the horizon, we set out along SH 79 towards Fairlie. Early geographers in New Zealand had a talent for the obvious when they named places. North Island, South Island, they must have figured that they were on a roll. And so Beautiful Valley was named. Lovely farming country, especially in the bright light of early morning. The next valley is more prosaically named cattle valley, though to my eye, it was no less beautiful. Fairlie was reached just as the school buses were leaving their depot to begin their rural pickups for the day. We turned right onto SH8 on the road to Tekapo and Aoraki/Mt Cook. And suddenly the roadside was aflame with lupins, not the common yellow variety that can be found anywhere, but the riotously coloured Russell variety. These are a joy to the eye and a pain in the neck to conservationists who want them eradicated (see http://www.doc.govt.nz/publications/conservation/threats-and- impacts/weeds/russell-lupin/). A friend said they are not native and don't belong here. Oddly, much the same can be said of almost everyone who has told me that. Blissful in my ignorance at the time, I enjoyed them anyway. Mary was driving and we almost bypassed Lake Tekapo's most famous scenic spot, but she caught sight of it from the corner of her eye, and we did a swift U-turn and went back to the Church of the Good Shepherd on the Southernmost shore of the lake. It was still too early for tourism so we couldn't see inside (except by peering through the panoramic window behind the altar at the back. The lake levels were low and vast expanses of gravel were apparent, or would have been were it not for the stunning display of lupins. It made for good photo opportunities with the snow capped peaks of the alps across a mirror calm lake. Being in something of a hurry, we didn't linger too long and carried on down that colourful highway until we reached the Southernmost edge of Lake Pukaki across whose glassy waters we had a clear view of the Aoraki/Mt Cook (and other only marginally less majestic peaks). Another pause for photographs, and we noted the proliferation of rabbits among the lupins. Every step we took as we walked down to the lakeside caused more bobbing tails to flee through the flowers. Looks like the Calicivirus has lost its power. We paused at Twizel for a morning coffee break, and then carried on across the wide braided Ahuriri riverbed, through Omarama under suddenly threatening skies towards the Lindis Pass. I don't know how, but this is another road I have never previously travelled. Spectacular is an overworked word, and few of the adjectives that come to mind do justice to the scale and grandeur of this landscape. The wildness of the Lindis Pass lasts pretty much 80 km from Omarama in the North to Tarras in the South West. Even in heavy overcast weather, this is scenery to treasure. From Tarras, we carried on SH 8 beside Lake Dunstan to the bridge at Cromwell where we crossed over to Join SH6 near the entrance to the Kawarau Gorge. More rugged landscape, though of a totally different sharper edged character that that which had gone before. The river tumbled through the Gorge, with occasional stretches of white water, and past the tumbling outlets of the Roaring Meg Hydro scheme. Soon, we bypassed the Crown Range turnoff and the road to Arrowtown, and from there it was a straight run to Frankton and Queenstown. Enough for now. More of Queenstown and the Wedding next week. ---- 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 "GS" will indicate an opinion from our editorial assistant. In all cases they are honest expressions of personal opinion, and are not presented as fact. All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, Newstalk ZB News. All copyright in the news items reproduced remains the property of The Radio Network Limited. Sponsorship this week is courtesy of Margaret Ritchie in Canada. Thanks Margaret. ---- On with the News. Monday, 1 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~ MAF CONCERNED ABOUT WATER ON FARMS ---------------------------------- Water availability for the farming sector is being identified as a pressing issue by the Ministry of Agriculture and Forestry. A briefing paper to incoming Agriculture Minister David Carter says freshwater allocation faces significant policy challenges and the water footprint of farming will come under increasing consumer scrutiny. The paper says farming generates some of the biggest environmental impacts on water supply, and water quality is declining to below acceptable standards in some areas. The ministry report recommends greater use of water storage and that the current water management system be better integrated. GREENS ATTACK ETS PLANS ----------------------- The Government is being told it has got its priorities wrong on the Emissions Trading Scheme, as it plans to axe the $1 billion Green Home Fund. The fund, aimed at improving the warmth and energy efficiency of residential homes, is set to be discarded under the National led Government's plans to re- address the ETS. Greens Health spokesman Kevin Hague says, that is flawed thinking, given a recent report that shows, substandard housing is making owners ill. He says the benefits to health, and the energy savings from the Green Home fund are clear. (I wonder how long it will take for the Greens to realise that they have little or no influence on the new government, and for the media to stop reporting on ineffectual protests - BH) AIR NZ POSTPONES BIOFUEL TEST ----------------------------- Air New Zealand has postponed a biofuel test flight following the Airbus crash off France. Of the seven people onboard the Airbus when it crashed on Friday, four were Air New Zealand employees. The airline had planned a two hour flight on Wednesday using a 747-400 powered by a 50-50 blend of jet fuel and a synthetic kerosene. The airline says the biofuel test flight has been put on the backburner as all of the company's resources have been focused on the tragedy. It says it is concentrating on supporting the families of those missing and the investigation into what caused the plane to crash. A new date for the test flight will be announced later this week. UNION CLAIMS NATIONAL'S TAX CUTS UNFAIR --------------------------------------- The Council of Trade Unions is calling on the Government to re-jig its tax cut plan, to provide what it calls a more balanced package. CTU Economist Peter Conway says he understands National will be pushing the cuts through under urgency before Christmas, but he says that does not mean there is not time to look at the unfair parts of the proposal. Mr Conway says a low income worker on $20,000 a year will actually pay $300 more tax in 2010, while someone on $500,000 will pay $9,202 less. He says the CTU realises the Government is committed to a certain level of tax cuts but believes there is still time to make the system fairer. The CTU says the National Party and Act have agreed to catch up with Australian income levels by 2025. He says he presumes that this is an ambition for all New Zealanders not just those on top incomes. Mr Conway says the first piece of legislation by the new National Government is to make those on low incomes worse off and that is not a good start. (Likewise, the unions need to come to terms with the immediate post victory mentality of the new government. It seems unlikely to me that the National Party is likely to adopt any proposals from the left at this stage of their term in office. - BH) SCIENCE AND RESEARCH MERGER --------------------------- The Government is endorsing the merger of two of the country's largest science and research institutes. Crop and Food Research and HortResearch have joined forces and will be known as the New Zealand Institute for Plant and Food Research. The new organisation will have around 900 staff. Research, Science and Technology Minister Wayne Mapp says the merger is a milestone and will combine the knowledge and expertise in the important areas of sustainable production and food and health. NEW RESEARCH ON ABORTIONS ------------------------- New research may have implications for the legal status of abortions in this country. Otago University researchers have found women who have an abortion face a 30 percent greater risk of developing depression and anxiety. In New Zealand over 90 percent of abortions are authorised on the grounds that proceeding with the pregnancy will pose a serious threat to the woman's mental health. The researchers say they do not support either side of the abortion debate, and that the effect of abortion on the overall mental health of the population is very small. It raises the risk of depression and anxiety, but accounts for between just 1.5 percent and 5.5 percent of overall mental disorders in the general population. HOW MUCH WILL OCR DROP? ----------------------- All eyes will be on the Reserve Bank again on Thursday to see the extent to which it will cut interest rates. Money markets are speculating about whether governor Alan Bollard will cut the official cash rate by one percent from 6.5 percent, or go the whole hog and chop it by 1.5 percent. Business correspondent Roger Kerr says some business groups are calling for a two percent cut, but he doubts that will happen. "Mr Bollard is not renowned for being bold and brave but the world economic situation continues to deteriorate although in recent weeks the markets have settled somewhat which is reassuring." Mr Kerr says analysts are looking for another drop in the OCR early next year. GOVT WORKING TO HELP NZERS STRANDED IN THAILAND ----------------------------------------------- Foreign Minister Murray McCully says the Government is doing all it can to get stranded New Zealanders out of Thailand, although there are no safety concerns for them at present. Thai police are in talks with anti-government protesters occupying Bangkok's two main airports. A grenade blast wounded more than 50 anti-government protesters in Bangkok yesterday, fuelling fears of clashes ahead of a major rally in the Thai capital planned by government supporters. Mr McCully says the Government is talking to the Australian Government to help rescue those stuck in Bangkok but he says it is a very complex process. The flights of up to 30,000 passengers are being disrupted daily because of the closures of Suvarnabhumi International Airport and Don Muang domestic airport, where a temporary state of emergency has been declared. Airports elsewhere in Thailand remain open. The Ministry of Foreign Affairs and Trade's advice to New Zealanders in Thailand is to avoid all political rallies, protests and demonstrations as there remains the possibility of further violence. Tourists are being advised to stay in touch with their airlines, travel agents and family members and to monitor developments via the media. NO CHRISTMAS PARTY BETTER THAN REDUNDANCY ----------------------------------------- Workers across the country are being encouraged not to get bitter, as companies find cheaper alternatives to Christmas parties. Wellington Chamber of Commerce CEO Charles Finny says some companies are being forced to spend less on their employees as the recession starts to bite and some have even cancelled this year's Christmas parties. But Mr Finney says disappointed workers should keep things in perspective. Mr Finny says it is better to have a toned down Christmas function, than receive a letter of redundancy. He believes it is good that companies are taking a conservative approach to spending given the current financial turbulence. Mr Finny says workers like to be rewarded for a year of hard work, but at the moment, some companies have no choice but to cut back. "It is starting to hit hard. I really don't think we'll see the full impact until after the Christmas break. Companies can see the writing on the wall and it's good that people are actually thinking of ways in which they can use their scarce funds more efficiently." Tuesday, 2 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ CRITICISM OF DELAYS IN OIA REQUESTS ----------------------------------- The Office of the Ombudsmen is criticising Government departments and some ministerial offices, for ignoring provisions of the Official Information Act. The report says there is a regrettable tendency by some agencies to game the system and delay information releases. The Ombudsmen say this subverts the purpose of the OIA and is unacceptable. They have provided fresh guidance to departments and agencies and say they expects to see improvements. However it is police who have topped the list for being the subject of most Official Information Act complaints. The annual report of the Ombudsmen's Office shows 97 complaints were made last financial year about the way police handled OIA requests. It is more than double the number of complaints made about educational institutes. District Health Boards, the Ministry of Social Development, the Ministry of Health and the Ministry of Labour all ranked highly for being the subject of OIA complaints. (As a letter to the editor of the Dominion Post pointed out this week, the OIA requires that any agency receiving a request must render a decision within 20 days as to whether or not they will provide the information, and thereafter, if the information is to be provided, they are merely required to deliver it as expeditiously as possible. The real surprise to most people, though, is that the Act is toothless. There are no penalties for non-compliance. - BH) ACC $1 BILLION SHORTFALL UNCOVERED ---------------------------------- The Government has been given a shock, with revelations of a billion dollar shortfall in the ACC account. Prime Minister John Key has ordered a ministerial inquiry into the organisation, which he says only has enough money to get it through until March. Mr Key is assuring ACC recipients that their care will continue, but says the Labour-led Government has some answering to do. He says previous ministers knew of the serious funding issue as long ago as last May. He says there are serious questions to be answered about what he calls a "ticking time bomb". Mr Key says the desperate situation at ACC was not revealed when Labour opened the books before the election, even though they knew about it. NOT A GOOD TIME TO SELL BUSINESSES ---------------------------------- Business owners hoping to sell up are thinking twice. The first ASB Succession Planning Monitor shows 82 percent of respondents think it is not a good time to sell their company. Survey spokesman James Mitchell is not surprised by the results. He says people have lost confidence in the market and have lower expectations of what it is likely to deliver. He says the focus for private business owners is shifting more towards sustaining rather than expanding their business. SHOCKING TIME FOR GROCERY SHOPPERS ---------------------------------- A Wellington supermarket is trying to fix a problem that has caused several customers to receive mild electric shocks from new store shelving. Johnsonville resident Vivienne Hill raised the issue with the duty manager at her local Countdown shop on Sunday after being zapped while doing her shopping. She says she received two electric jolts when she went to reach out for packets of biscuits. Ms Hill says the duty manager informed her the shop had received a number of complaints from staff and shoppers about static shocks which seemed to be caused by a problem with the trolley wheels and new flooring. A spokesman for the supermarket's owner Progressive Enterprises says the company is working on a solution and customers are not in any danger. ECONOMY EXPECTED TO PICK UP NEXT YEAR ------------------------------------- The economy is expected to pick up steam next year as tax cuts, lower petrol prices and a drop in interest rates help to pull New Zealand out of recession. The New Zealand Institute of Economic Research has released its December 2008 Quarterly Predictions. Senior economist Johannah Branson expects the lowest point to be the year ending March 2009 when economic activity will contract 0.1 percent, after which, things should improve. Dr Branson expects modest growth for the four quarters of 2009, leading to 1.6 percent growth in the year to March 2010. She says economic growth should accelerate to 3.3 percent in 2011. Dr Branson says from the first half of 2009, the recovery will be led by an upturn in private consumption and strengthening global economic growth. However uncertainty in the housing market and job security may temper the recovery. IMPORTERS WORRIED ABOUT PORT STRIKE ----------------------------------- The Importers Institute is urging the Ports of Auckland and the Maritime Union to sort out its dispute with staff. More than 300 workers will walk off the job for 24 hours tonight over pay and conditions, which is expected to cause frustrating delays for importers. Daniel Silva, secretary of the Importers Institute, says importers are already struggling in harsh economic conditions and the strike will only make things worse. He says importers are getting their last shipments of goods before Christmas and the strike action is making them very nervous. Mr Silva is disappointed the two parties could not reach an agreement after two weeks of negotiating. NZ ARGUES AGRICULTURE CASE AT CLIMATE CHANGE TALKS -------------------------------------------------- The government looks set to mount a special case for New Zealand's agricultural sector at United Nations climate change talks in Poland but the Green Party fears it will back away from targets aimed at reducing greenhouse gas emissions. The two weeks of talks which began overnight, involve more than 10,000 delegates from nearly 190 governments and business groups. Prime Minister John Key says representatives at the Poznan meeting are arguing very strongly that New Zealand has a different position to other countries, in that many of New Zealand's emissions come from agriculture. He says it has to be recognised that New Zealand does not have technological solutions to the problem and to cut production could have unintended consequences. STREETS HIT THE INTERNET ------------------------ People should soon be able to walk the length of the country without leaving the comfort of their home. Google is launching 'Street View' in New Zealand which allows internet users to navigate 360 degree street level imagery of cities, towns, regions and remote areas. Google spokeswoman Annie Baxter says people worldwide will be able to explore parts of New Zealand they have never seen before. She says camera equipped cars have been driving the length of the country for the last 12 months taking pictures. Ms Baxter says the images are not in real time and anyone in the pictures cannot be identified. (It's a fascinating tool, albeit a bit clunky in its execution. Navigation within the image view is clumsy. There are still gaps in the coverage but the extent of it is surprising. - BH) Wednesday, 3 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ ACC BLOWOUT NOT AN EXCUSE FOR PRIVATISATION - GOVT -------------------------------------------------- National is dismissing claims from Labour that the billion dollar blowout to the Accident Compensation Fund is being used to prepare the way for privatisation. ACC Minister Nick Smith says former Minister Maryan Street was obliged to make the shortfall public when she became aware of it in May. But Labour says it was under no obligation and has broken no rules. Prime Minister John Key has said he is annoyed that National only found out about the problem after the election and says it should have been disclosed in Treasury's pre- election fiscal update. He has ordered a ministerial inquiry. There have been suggestions that the shortfall gives National an excuse to privatise the fund but Dr Smith says that is scurrilous. He is confident the ministerial inquiry will pinpoint who is to blame. ACC needs $297 million more this financial year and the same amount the next two years to cover its non-earners account, which deals with claims from children, the elderly and students. FARMERS JOIN CALL FOR BIG INTEREST RATE CUT ------------------------------------------- Federated Farmers is joining the chorus of people calling on the Reserve Bank to cut the official cash rate by 1.5 percent tomorrow. Economics spokesman Phillip York says a big reduction in interest rates is essential, particularly in the light of the Reserve Bank of Australia's move yesterday to cut its rate to 4.25 percent. Mr York says even with a 1.5 percent cut tomorrow, New Zealand's interest rates will still be higher than those in Australia, its biggest export market. He says, with farmers facing a rapid cooling in commodity prices and a potential drought over summer, the cut is needed to provide a stimulus for the economy. In October, the Reserve Bank cut the OCR by one percent to 6.50 percent. AIRPORT COMPANY REORGANISES TEAMS --------------------------------- Auckland Airport is putting in place a new organisational structure and leadership team. The company says it will comprise three profit-centre divisions of Aeronautical, Retail and Property, supported by a new aeronautical business development unit and a lean corporate centre. Responsibilities of the former engineering division have been incorporated into other divisions. Chief executive officer Simon Moutter says the focus in recent years has been very much on building infrastructure and capacity. He says the new leadership emphasis will ensure the company makes the most of its recent infrastructure investment and enhances services to airline customers and passengers. The company says the shift in focus away from building infrastructure and capacity to building customer and passenger experience has meant realigning leadership team resources. This has seen the introduction of several new faces and new roles and the departure of general manager engineering, Steve Reindler. Andrew Pirie will join the company as communications advisor, Glenn Wedlock has been appointed as the general manager aeronautical business development and Adrian Littlewood as the general manager retail. Mr Moutter says that with tougher global economic conditions and volatile fuel prices influencing likely passenger and airfreight demand, it is critical that Auckland Airport puts significantly more focus on business development activity, partner support and working on new growth strategies. He says it will also be essential to focus on productivity gains through all levels of the business. SANTA'S HOTLINE OPEN -------------------- Telecom's hotline to the North Pole is open. Last year Santa received more than 650,000 messages from excited children and some adults. Telecom is advising well-behaved children to get their wishes in quickly this year, before Santa is overwhelmed by the numbers calling. The phone number is 0800 222 222. Santa can also be emailed from the Telecom website. SWIMMING SKILLS SINKING ----------------------- The ability of young people to swim and survive is sinking and drownings are forecast to soar. New Zealand already has one of the highest rates of drowning in the developed world, averaging 114 per annum between 2003-2007 and Water Safety predicts the death toll will exceed 150 each year within the next 12 years and will rise to 180 by 2030. Matt Claridge, general manager, says the underlying basis to enjoying aquatic environments and recreation is the ability to swim and survive but he says the decline can be directly attributed to inadequate opportunities to develop the skill. He says swimming lessons used to be an integral component of the education system, but that is no longer the case as changes to the school curriculum and reduced funding have resulted in swimming lessons having a lower priority. Only 50 percent of year six children are able to swim 25 metres. ? Unsurpisingly we have found that it is schools with a high decile rating that are able to provide adequate opportunities. These are also the kids who are also most likely to be involved with additional instruction outside of the school. Sadly, there is a direct correlation between socio-economic status and access to learn to swim opportunities and it's just not good enough.? Mr Claridge says schools need to start teaching swimming again and it should be a compulsory component of the curriculum. ?In Australia and Great Britain the issue has been identified and action taken to ensure school aged children learn to swim. It's remiss that we do not ensure our children develop these fundamental skills. The Government and its Ministries need to consider the priority and level of resource provided to schools in this area. Perhaps most important of all is that communities recognise the importance of the issue and coordinated action is taken to improve the situation. (One of the things that impressed me in Australia was the number of kids being taught to swim from the age of six months and up. Classes of tiny little kids floundering through the water are amazing. No wonder there are so many Olympic gold medals in Australian homes. - BH) Thursday, 4 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ INTEREST RATES SLASHED ---------------------- The Reserve Bank has slashed the official cash rate by 1.5 percent, bringing it five percent. Reserve Bank Governor Alan Bollard says further small rates cuts are possible in the coming months. ANZ AND NATIONAL JOIN IN WITH RATES CUTS ---------------------------------------- ANZ and National have joined other major banks in cutting their mortgage and fixed term rates. They have responded to the Reserve Bank's slashing of the official cash rate by 150 basis points. ANZ and National have made cuts across the board, cutting fixed term rates as much as 0.66 percent and their variable rates half a percent. ANOTHER ACC BUDGET BLOWOUT -------------------------- The Government has found another budget blowout in an ACC account. ACC Minister Nick Smith has revealed the earners account has a shortfall of $1.3 billion. The news comes just days after it was discovered the non-earners account will need a $1.2 billion top up from the Government. Dr Smith says the earners account is funded from employer-levies, which it is now being recommended the Government increase in the coming years. Labour leader Phil Goff says ACC will be under pressure from poor return on investments and rising medical costs. He says that would have happened regardless of whether ACC was state funded, or privatised, which he believes National intends to do. OCR CUTS HURT THE ELDERLY ------------------------- People reliant on income derived from deposits will be hit by the drop in interest rates. Banks have cut their mortgage rates today following a 1.5 percent drop in the official cash rate. They say interest paid on deposits will fall as well. The Director of the Centre for Banking Studies at Massey University David Tripe says people reliant on deposit interest will be faced with a drop in income. He says New Zealanders tend to deposit for relatively short terms, which means in many cases as interest rates come down there will be an impact on their income relatively quickly. Age Concern chief executive Ann Martin says many older people rely on income from interests on deposits to top up their benefit. She says many of the older people have moved investments to their banks, which are being seen as safer than other parts of the finance sector. Ms Martin says now with the lower interest rate it will have a negative impact on their income. (With due respect to Ms Martin, I wonder what mechanism she suggests that would protect the elderly or any other group from the vagaries of the world financial system? - BH) TREASURY SHAKES HEAD AT STIMULUS PACKAGE ---------------------------------------- Treasury is advising the Government not to go ahead with an economic fiscal stimulus package. In briefing papers to Finance Minister Bill English, Treasury says the current budget already incorporates stimulus of almost three percent of GDP in 2008-09, through tax cuts and spending plans. It says it is already larger than moves by other OECD countries with stimulus plans. Treasury says using fiscal stimulus will be costly in the short term and may require savings later to avoid deterioration in the fiscal outlook. SUPERGOLD CARD HOLDERS ON THE BUSES ----------------------------------- The number of elderly people riding buses around Auckland has almost doubled since the SuperGold card scheme came in. The card, introduced by New Zealand First leader Winston Peters, allows senior citizens to travel for free during off-peak times. Figures from the Auckland Regional Transport Authority show 97 percent more senior citizens have travelled on public transport in October this year compared with last year. Spokeswoman Sam Rich says it is great to see people taking advantage of the scheme and using public transport. Friday, 5 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~ CHINATOWN PLANNED FOR AUCKLAND SUBURB ------------------------------------- New Zealand may get its own Chinatown, in the West Auckland suburb of New Lynn. Waitakere City Council is investigating a development, including the possibility of buying ornamental Chinese gates and other related items from the council's sister city of Ningbo in China. Mayor Bob Harvey wants to develop an area reflective of both traditional and modern China. He says it is an exciting idea that stacks up in cities like Melbourne, London and Seattle and would dramatically distinguish New Lynn. The council has not yet considered a budget for the proposal. WHOLESALERS SEE DROP IN SALES ----------------------------- Wholesalers are feeling the pinch with a $219 million drop in sales for the September quarter. Statistics New Zealand says it is the largest quarterly drop since December 2005. The biggest fall was in motor vehicle sales, which were down 11.3 percent. Petroleum-products were down 6.9 percent and primary product food wholesaling declining 3.3 percent. It was partially offset by a 5.6 percent rise in the sales of unprocessed primary products. RED INK ALL OVER GOVERNMENT'S BALANCE SHEETS -------------------------------------------- There is red ink all over the Government's balance sheets in the latest Crown Financial Statement. The Crown now has an operating balance deficit of $3.5 billion, instead of a forecast $1.5 billion surplus. Treasury says this is due to investment losses by the Superfund, ACC and the Earthquake Commission. There has also been a revaluation of long term liabilities for ACC and the Government Superfund. The Crown's sovereign issued debt is $3.7 billion higher than anticipated at more than $33 billion, which is almost 19 percent of GDP. That has been caused by a stronger than expected demand for Government-issued assets and the weaker New Zealand dollar. PETROL PRICES FALL AGAIN ------------------------ Shell has kicked off another price drop at the pumps. Petrol and diesel is four cents cheaper. The price of 91 is now $1.39.9c a litre and octane is $1.44.9c. Diesel is down to $1.16.9c. Shell says the price drop is due to the continuing fall in the cost of crude on international markets. REAL ESTATE AGENTS HOPING FOR MARKET BOOST ------------------------------------------ Auckland's largest real estate company hopes the drop in the official cash rate will help buyers overcome their concerns. Banks have started passing on the benefit of the Reserve Bank's 1.5 percent reduction in interest rates by cutting fixed and floating mortgage rates. The reduction in rates coincides with new figures showing house prices in the Auckland region dropping last month. Figures from Barfoot and Thompson show the average price for November declined 3.7 percent to $500,840 from the same month last year, but managing director Peter Thompson says it is no great surprise. ?The average sale price has been moving around within a band between about $495,000 and $525,000 all year, so I wouldn't read too much into an individual monthly result. The average price for the year to date is $514,000.? Mr Thompson says Barfoot and Thompson's auction rooms were full last month, but buyers were very cautions and held back. "Buyers seem to be waiting to see what price is set in the auction room and are then willing to negotiate post- auction.? He says the auction clearance rate during November was about 35 percent under the hammer and more than 50 percent by the end of the week following auction day. The average weekly rent for November was $381, down from $385 in October. Mr Thompson hopes the interest rate reduction will be the impetus needed to generate fresh activity in the urban residential and rural property markets. ADJUSTMENT WANTED TO ROAD USER CHARGES -------------------------------------- The Government is being challenged to review road user charges. The AA Energy Wise Four Day Rally shows motorists how they can slash their fuel bills by choosing a fuel efficient car. The Supreme winner was the Honda Civic Hybrid which cost $111.72 to run over 1641 kilometres. Hyundai executive director Philip Eustace says if the Hyundai i30 were exempt from diesel road user charges, it would have cost $96.66 to compete. He says the results show that road user charges penalise owners of the most fuel-frugal vehicles. It costs the driver of a private vehicle $370.26 to buy 10,000km of road user charges. Earlier in the year, truck drivers held protests through towns and cities throughout New Zealand to demonstrate against the Government raising the road user charges without warning. (Challenges to the government are in my opinion, premature. - BH) COMPANIES GETTING LITTLE RELIEF FROM BANKS - BERL ------------------------------------------------- An economist believes it is critical that banks cut interest rates for businesses. Major banks have reduced their mortgage rates following a 1.5 percent drop in the official cash rate. Ganesh Nana from the independent Business and Economic Research group, BERL, says the move will make life easier for people with home mortgages, but he says in recent times companies have been offered little relief from banks. He says to ensure jobs remain in place and economic activity continues, businesses need interest rate relief. Dr Nana says the world economy is in serious strife and the situation should not be underplayed. He says anyone who does paint a positive picture is either selling a line, or is very very optimistic. Dr Nana says Reserve Bank Governor Alan Bollard could have cut the OCR even further, but will be waiting to see what happens to the economy down the track. Yesterday, Dr Bollard said New Zealand went into a very shallow recession early on, compared with its trading partners. He said the recession has now ended. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. From news at wysiwygnews.com Mon Dec 15 08:07:48 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Mon Dec 15 08:07:53 2008 Subject: WYSIWYG NEWS - 15 December, 2008 Message-ID: <3F185A541960DB4B9FBBBB4104820BBC04D71B8A@STAWINCOEXMAIL1.staff.vuw.ac.nz> Subject: 15 December, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. Our motel in Queenstown was actually in Frankton, near the airport. Given that we were nearing the summer peak season, we obtained an extraordinarily well equipped three bedroom unit in the Gateway Apartments at a very reasonable, indeed surprisingly low price, and I recommend them to anyone looking for accommodation in the region. For us they were very close Drew and Abbey's house where the wedding was to take place, and like most places in the area, they provided a great view of the Remarkables range. Despite some recent cold spells, there were just the barest traces of ice visible on the tops but, no matter, the mountains live up to their name at any time of year. The morning of the wedding was cool and grey with rain threatening, and clouds curling over the tops, and it stayed much the same through the day Spirits remained undampened. My eldest son, David had been tasked by his brother with the responsibility for pre-wedding photography and then to take whatever opportunities presented for further pictures during the wedding itself. David's camera had done some odd things in the recent past, so he roped me in as the sorcerer's apprentice (he really is a much better photographer than I). In defiance of tradition and superstition, the entire official wedding party was there, men and women. Abbey had chosen a classic white bridal outfit, and nice dresses for her attendants, and thus one might expect that the groom and his attendants would also be formally attired. But no. They had opted for lace fronted shirts over three quarter length dark shorts and sandals. Somehow, it worked. Perhaps because their were five attendants on each side, it came off. It had an air of uniformity a little like the dress uniform of the Tongan or Fijian police in their sulus. The site for the photography was a back lawn looking across the Kawarau River to the North side of the Remarkables. It was a spectacular backdrop, and photos were duly taken, though not without incident. To clear a suitable space on the lawn for such a large group, some rustic furniture needed to be moved, and Damo, one of the groomsmen, managed to drag a table leg across his big toe, tearing the toenail back. It looked agonising, but he gritted his teeth and smiled through the photographs before being carted off to the emergency room of the local hospital. Back at the house, family and friends gather expectantly on the lawn in a lovingly prepared setting, ignoring the grey skies and enjoying each other's company as the arrival of the bride was awaited. Damo arrived back from the hospital with one foot in a sparkling white bandage, and no longer able to get a sandal on the foot. In a weird demonstration of symmetry, sympathy and solidarity, the groom and his henchmen all abandoned their left sandal also, so the wedding proceeded with all the men in the official party wearing just one sandal. (I should add for our overseas readers, that for many kiwis barefoot is not associated with poverty, is almost a way of life, and we do not generally subscribe to old wives tales of plantar warts and fungi.) In due time, music announced Abbey's arrival. Her attendants wore black dresses and carried pale green Japanese parasols. It looked much nicer than my ability to describe it. The wedding proceeded smoothly, and the rain held off. Little Billie didn't want to be left out and after fulfilling her role as ring carrier, leapt into Abbey's arms where she clung for the remainder of the service. It was a very happy occasion, catered mostly by members of the bride's family including a spit roasted pig, wild venison and mutton birds (definitely a taste I haven't acquired). Abbey's mum, Shona made a wonderful cake, and her father Mike over- rode the groom's informality fetish by making a speech. He wanted to ensure that there was balance, so I joined him in crime and also made a brief but heartfelt speech of the kind commonly made at weddings. The party continued into the night, and as far as I could tell most of the neighbours were invited, so no grumbles there. A great celebration all round. Well, all five of our children are now married, so I feel that's a job well done (or at least entering a new phase). The next day the clearing up was almost finished by the time we got there. Next week, to Hanmer Springs and beyond. ---- 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 "GS" will indicate an opinion from our editorial assistant. In all cases they are honest expressions of personal opinion, and are not presented as fact. All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, Newstalk ZB News. All copyright in the news items reproduced remains the property of The Radio Network Limited. Sponsorship this week is courtesy of Kathy Brierley in the Ipswich in the UK. Thanks Kathy. ---- On with the News. Monday, 8 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~ DUNNE TO HEAD ETS COMMITTEE --------------------------- United Future Leader Peter Dunne has been named to head a special Parliamentary Select Committee reviewing the Emissions Trading Scheme. The review is part of the deal struck between National and Act in their post-election confidence and supply agreement. Prime Minister John Key says Mr Dunne has been chosen to chair the committee, which is likely to report findings back to Parliament in March next year. He says Mr Dunne is a seasoned and neutral MP who will do a good job in the role. Mr Key says its his aim to have a new emissions trading legislation passed through Parliament by the end of September 2009. (I can't help wondering what this signals about the real commitment of the new government to climate issues. - BH) GOVERNMENT TAKES NEW KIWISAVER APPROACH --------------------------------------- The Government is taking a new approach on KiwiSaver. National is likely to change arrangements to ensure people on lower income get the same access to the $1,040 annual Government contribution, as people on higher incomes do. Under its original approach some people would have only received $520 a year. Prime Minister John Key says Cabinet has considered the matter as well as the fiscal implications. He says it would be around $700 million over five years. That impacts on the $3 billion worth of savings National hoped to make when it announced planned cuts to maximum KiwiSaver contribution levels during the election campaign. MPS SWORN IN AT PARLIAMENT -------------------------- Parliament's new MPs have been sworn in. Individually, and in groups, MPs of the 49th Parliament of New Zealand were officially sworn in at a special ceremony in Parliament this afternoon. The 122 MPs, 33 of whom are new to Parliament, have all sworn allegiance to the Queen and her successors. New Mangere MP Sua William Sio had wanted to be sworn in in Samoan, but was refused. That did not stop him - he gave his oath in both Samoan and English. National MP Lockwood Smith has been sworn in as the new Speaker of the House. COUNCIL DEBT LEVELS ON THE RISE ------------------------------- Overall debt levels for local councils are on the rise. Briefing documents to new Local Government Minister Rodney Hide show local authority debt levels rose by more than 60 percent between 2004 and 2007, from $1.9 billion to more than $3.2 billion. Much of the pressure appears to be driven by capital expenditure on infrastructure. The papers says in the last financial year councils spent more than $3.3 billion on fixed assets, an increase of almost 40 percent from 2006. The papers say councils which rely on funding from investments may face substantial losses, because of the decline on world markets. They also indicate some councils are having trouble accessing debt funding and some that have it face severe constraints in servicing their loans. The briefing predicts some councils may cut spending or raise rates to compensate for lost income. RESIDENTIAL BUILDING WORK FALLS AGAIN ------------------------------------- The volume of home building work is at its lowest in six years and has fallen by more than a fifth in the past year. The figures are revealed in statistics for the September quarter showing a 7.9 percent decline. Statistics New Zealand says it is the forth consecutive quarterly fall. In contrast, non- residential building work rose by 5.8 percent in the September quarter, after two previous consecutive quarterly declines. There were a higher than usual number of building jobs that each had a value of work of more than $10 million. However, the figures also showed the third consecutive drop in overall volumes of activity in the building sector. Volumes fell 2.1 percent for the quarter. COUPLES LIVING WITHOUT CHILDREN ON THE RISE ------------------------------------------- The ageing population is changing the face of the New Zealand family. Statistics New Zealand says there are now more older couples living without kids, than families with kids. Statistics New Zealand says this is mainly due to the increasing number of people born after World War II reaching the older ages, where they are most likely to live as a partner in a couple without children family. It says most of these couples will have had children who have left the parental home. The number of families is projected to increase from an estimated 1.17 million in 2006 to 1.44 million in 2031. Statistics New Zealand says 'couple without children families' will account for the majority of the growth, projected to jump from 468,000 in 2006 to 730,000 in 2031. (We find ourselves in this position. All our offspring are living happily elsewhere, and I am proud of them. Love it when they come home, or when we visit them, but at a purely pragmatic level, it is an entirely proper state of affairs. - BH) DEPRESSION, DRUG USE DECREASE AMONG TEENS ----------------------------------------- A follow-up study shows both youth depression and drug use have declined in New Zealand. The study by Auckland University's Adolescent Health Research Group surveyed nearly 9,500 thousand students from more than 100 schools. It claims depressive symptoms, suicidal thoughts, marijuana use and smoking have all reduced, since the first study in 2001. The study found that seven percent more young people are eating breakfast every day. While 92 percent said they have a parent who cares about them, 45 percent of teens wish they could spend more time with their parents. Parents were usually unavailable because of work commitments. JOB FEARS PUT STRESS ON COUPLES ------------------------------- Fears of redundancy are forcing couples to turn to relationship counselling. Relationship Services spokesman Cary Hayward says couples are struggling to stay together as they face money worries in the economic downturn. He says ironically, there is increased pressure on couples planning to separate to stay living together, because they cannot afford to move out. Mr Hayward says the economic downturn is not just affecting couples, but also people's relationships with their children. NEW PARLIAMENT SITTING UNDER URGENCY ------------------------------------ The new Parliament sits for the first time this week. The National-led government will take Parliament into urgency for most of the next two weeks and could even extend sitting until Christmas Eve. Top of the agenda will be the economic stimulus package, as well as signing off on the next round of tax cuts due in April. Leader of the House, Gerry Brownlee, says it is time to send the signal that this is no time to panic. He says the government is encouraging people to make moves to ensure the economy does not grind to a halt. Mr Brownlee says many of the new pieces of legislation will be economic-based, designed to take costs out of the economy. (Mixed reactions from media commentators to the urgency, which means that the legislation is not subject to the usual scrutiny of the select committee processes, and therefore may be flawed - BH) Tuesday, 9 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ UNIONS EXPECT 90-DAY LAW TO BE ABUSED ------------------------------------- The Council of Trade Unions expects some employers to take advantage of the Government's 90 Day Employment Probation Bill. The legislation is set to be passed under urgency before Christmas. It will allow employers with fewer than 20 workers to sack new staff within a three month period, without facing personal grievance actions. The Council of Trade Unions says the bill should not be passed under urgency and public consultation is needed. President Helen Kelly says it will bring about bad practice in small businesses, instead of businesses being very careful when employing people and checking their references. She says people should have dignity at work and be treated fairly. Ms Kelly says unjustified dismissal and unjustified disadvantaged are being removed from the law. She says under the bill people can be sacked for attending their grandmother's funeral or being sick, which have nothing to do with incompetency. Association of Salaried Medical Specialists executive director Ian Powell says the practical effect of the law change will be to increase the vulnerability of new employees at precisely the point when they are most vulnerable. He says denying rights of protection against unfair dismissal is dangerous in the hand of bad or inexperienced employers. Prime Minister John Key disagrees with claims the law would remove basic workers' rights. He says it contains good faith provisions and workers cannot be sacked for issues such as discrimination. (If people go into a job in the expectation of being abused, the relationship seems to me to be doomed to fail anyway, and it would be better to seek different employment. - BH) HANOVER INVESTORS ACCEPT RESCUE PACKAGE --------------------------------------- Hanover Finance investors have voted to accept a rescue package, rather than putting the company into receivership. Hundreds of investors turned out at a meeting in Auckland today which was followed by a vote, while others made proxy votes. The rescue plan could see investors get all their money back over five years - although it means they lose their right to sue the directors if it is found they failed to act responsibly. Hanover Chairman Greg Muir says the company is confident the plan has every prospect of delivering on the repayment schedule. Secured depositors and stockholders will receive a first repayment of capital on March 15 2009, with further payments quarterly from the end of June through to December 2013. WESTPAC MAKING SHARE PLACEMENT ------------------------------ A trading halt has been placed on Westpac shares after the bank announced it is launching a $A2.5 billion underwritten share placement. Westpac Banking Corporation says the move is intended to enhance its balance sheet and position the organisation to capture growth opportunities following its merger with St George Bank. It says its decision was based on several factors including it becoming more challenging to raise capital through hybrid equity markets; expected increasing demand on the company's balance sheet from maturing corporate bonds; and the impact of the slowing economy and any further deterioration in credit and operating conditions. The bank says the St George Bank portfolio continues to perform in line with expectations and Westpac has conservatively allowed for $500 million in fair value and acquisition adjustment. The placement has been fully underwritten by J.P. Morgan, UBS and Morgan Stanley. The trading halt is likely to remain in place until tomorrow. GROWTH AND ECONOMY FRONT AND CENTRE ----------------------------------- The Government has put growth and the economy at the centre of its agenda for the next three years. Governor General Anand Satyanand has delivered a speech written by the Government to mark the opening of the 4th session of Parliament. He says the main goal of the new Government will be to drive the New Zealand economy, while staying out of New Zealanders' lives. "My Government will not seek to involve itself in decisions that are best made by New Zealanders within their own homes and their own communities." Parliament is set to get to business in earnest this week, passing new laws on tax cuts, amendments to KiwiSaver and introducing probationary employment periods. MAORI PARTY URGED TO OPPOSE PROBATION BILL ------------------------------------------ Labour is urging the Maori Party to oppose the 90 Day Employment Probation Bill. National is planning to pass the bill through Parliament under urgency, before Christmas. The proposed legislation would allow employers with less than 20 staff to dismiss employees without any personal grievance claims. Labour leader Phil Goff says the Maori Party can do nothing else but oppose the bill and oppose urgency. He says it would be unthinkable for the Maori Party to allow legislation which strips Maori, and other workers, of fundamental rights. Mr Goff says National never told the public the law change would be a top priority, and gave no warning it would be rammed through under urgency. However Minister of Labour Kate Wilkinson says the policy was well known before the election. (In the event they voted against it, but there were so few of them in the house at the time, that they had little impact. - BH) NEW PARLIAMENT BEING OFFICIALLY OPENED TODAY -------------------------------------------- The Governor General will officially open the new Parliament this morning. Trumpeters from the Air Force band will sound a fanfare and a 100 person Royal Guard of Honour will be held for Anand Satyanand as he is led to the steps of the building at 11am. The Army will give Mr Satyanand a 21 gun salute. Mr Satyanand will deliver a speech written by the Government which will outline National's objectives in the year ahead. Party leaders will respond as MPs debate the contents of the speech, which is likely to last most of the afternoon. Parliament will then go into urgency where the first topic on the agenda is tax cuts. In addition, National's newcomers, Melissa Lee, Parliament's first Korean MP and Sam Lotu-Iiga, will make their maiden speeches. (A splendid occasion it was, too. I watched much of it on the streamed broadcast of the house's proceedings. - BH) Wednesday, 10 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ ELDERLY DUMPED AT HOSPITALS FOR HOLIDAYS ---------------------------------------- Elderly family members at being dumped at hospital so their relatives can take time out for the holidays. Wellington Hospital emergency medicine doctor Paul Quigley says there is no increase in the problem, and it happens every year around holiday season. He says aged care patients, who often are not able to cope on their own, are brought into hospital with relatively minor problems. Dr Quigley says their family then abandons them, so a forced admission into hospital follows. He says the elderly people often need longer in hospital than a normal patient, and can often block care for an acute patient until other care is found for them. Dr Quigley says people who do not know what to do with their elderly family members should speak to their GP about the help that is available. BOLLARD URGES PRICE CUTS ------------------------ The Reserve Bank is telling all sectors they need to play their part in keeping inflation down if monetary policy is to be eased any further. Reserve Bank Governor Alan Bollard says inflation rates remain very high, with the five percent for the September year being the highest since 1990. He says the drivers have been price increases in areas not exposed to a high degree of competition, like rates and electricity prices. Dr Bollard hopes the electricity industry does not take advantage of its position to hike prices and is telling local authorities to keep rate increases below inflation for a change. (Just a few days later the country's biggest electricity retailer increased its prices by around 9%. - BH) HERCEPTIN "BEST CHRISTMAS PRESENT EVER" --------------------------------------- A Rotorua breast cancer sufferer is describing John Key's confirmation the Government will fund 12 months of Herceptin treatment as "the best Christmas present ever". The Prime Minister has also announced that women who have paid privately for the drug since November 19, when the Government was sworn in, will be refunded. Patients receiving the drug through private care will have the option of switching to the public system or staying private and having the drug paid for. It is expected that over time up to 300 women will take the one-year course of the expensive drug. It will be funded from the $180 million the Government has earmarked for pharmaceuticals over the next three years. Rotorua breast cancer sufferer Audrey Martin says she is overwhelmed and even cried tears of joy when she heard the news. "Aside from the financial hardship that it's placing on several other women, it gives us the reassurance to know that everything is going to be done to help us, to help those of us in this situation." Mrs Martin says for some women the cost of Herceptin treatment can be more than $100,000. She says it is amazing that women do not have to have to worry about where they are going to get the money from anymore. Labour is accusing the Government of politicising Pharmac, which resisted funding Herceptin for more than a nine week course because it found it was no more effective than other drugs on the market and was too expensive. Labour health spokeswoman Ruth Dyson says the decision on what drugs to fund should be left to the experts and not to politicians. "Even though I can understand how good it is to be able to fund additional drugs for people who have various conditions, those decisions should be made free of political interference. This has set a very dangerous precedent." The Women's Health Action Trust supported Pharmac's decision to fund only a nine week course of the drug. Director Jo Fitzpatrick says there is no doubt the Government has bowed down to pressure. She says it is giving the message that if groups lobby hard enough, drugs will be funded. "I think that's quite dangerous cause there's quite a lot of drugs coming down the line all the time and until the studies are done on them, you don't actually want to be spending huge amounts on funding them." (The other groups currently denied access to expensive medications may well have cause to feel aggrieved - BH) TASERS REINTRODUCED TO POLICE ----------------------------- Tasers are being reintroduced to armed police officers in Auckland and Wellington, the districts which were involved in a year-long trial. Armed Offenders Squad staff are now trained and certified, while general staff will start their training in February next year. Project manager Superintendent John Rivers says it is a comprehensive training package, which does not just focus on the use of the device. He says officers will need to know the requirements of the standard operating procedure and the post incident procedure. Mr Rivers says tasers will not be routinely carried by police officers. (All the tasers in use by the NZ Police will have a video camera attached which will record what happens whenever the unit is activated. - BH) REFUND FOR HERCEPTIN USERS -------------------------- Some patients who have paid privately for treatment of the breast cancer drug Herceptin may be eligible for a refund. The Government has released more details of its pre-election promise to fund a 12 month course of the drug. The commitment was part of National's first 100-days action plan and the funding policy applies from the swearing in of the Government on November 19. Prime Minister John Key says women who have paid for Herceptin treatment privately between November 19 and today can seek reimbursement from the Ministry of Health for the full cost of their treatment. He says he is pleased that women with early Her-2 positive breast cancer now have the option of accessing the one-year course of the cancer drug, or the nine week treatment. Over time, the government expects up to 300 women a year to benefit from the year-long course. MATHS AND SCIENCE PERFORMANCE "AVERAGE" --------------------------------------- The latest findings show New Zealand students' performance in mathematics and science is middle of the road. The international study covers year five students in 36 countries. New Zealand students achievement in maths increased between 1994 and 2002, but remained the same between then and 2006. However, after previous increases, science achievements returned to 1994 levels. The Ministry of Education says the science findings are of concern and the ministry is addressing it. (Average is being excessively kind. The results were below average. We are below Australia and the results caused a storm of moral panic in the Australian media. The lack of similar alarm here is itself alarming. - BH) CALLS FOR POVERTY ACTION PLAN ----------------------------- The Human Rights Commission is calling for a plan to tackle poverty to ensure that during the current economic crisis, the people who are already the most vulnerable are not the hardest hit. The commission is celebrating the 60th anniversary of the universal declaration of human rights today. Chief Commissioner Rosslyn Noonan says the commission has made a submission to the United Nations Human Rights Council about what it would like to see the Government undertake over the next four years. She believes a national plan should be adopted to combat poverty and that it should contain clear indicators to assess its impact particularly on children, marginalised groups and Maori and Pacific people. TAX POLICY DRIVES COUNTRY INTO DEBT - LABOUR -------------------------------------------- Labour's finance spokesman claims the National Government's tax policy will drive the country into debt. The policy will pass through Parliament this week and will allow further tax cuts in April, changes to KiwiSaver and the removal of the research and development tax credits. Labour's David Cunliffe says the decade of prudence under his party will go almost immediately as a result of the Government's tax package and low income people will hurt the most. Mr Cunliffe says debt will rise as a result of borrowing to fund household consumption. ONE IN FOUR WORRIED ABOUT JOB SAFETY ------------------------------------ Research suggests almost one in every four New Zealanders is worried about their job. Research New Zealand has found 24 percent of those in paid employment do not feel their job is secure. Director Emanuel Kalafatelis says predictably, people on lower incomes feel the most insecure and 33 percent of people earning less than $40,000 a year are worried about their employment. The survey also found that younger workers aged 15 to 29 are feeling insecure with one in three worrying that their position is not safe. Nearly 60 percent of workers are not expecting a pay rise within the next 12 months. NZ FIFTH IN WORLD FOR HAPPINESS ------------------------------- Less is more when it comes to being happy. A Nielsen survey has found many poorer and developing parts of the world outranked developed countries in a global happiness survey. Consumer research executive director Susanna Baggaley says a nation's happiness level does not appear to be influenced by factors such as low income inequality or peace. She says people in developed countries face stress and pressure which might not help them to be happy. The survey found people's happiness is driven by their finances, mental health and job or career. It also discovered women may be coping better with the recession than men, who struggle more when their finances are not in good shape. New Zealand was ranked fifth in the world for happiness. TAX CUTS, KIWISAVER CHANGES BY END OF WEEK ------------------------------------------ National is planning to rush through its tax cut plan and changes to KiwiSaver by the end of the week. MPs last night began debating under urgency, the tax cuts which will see the top tax rate drop from 39 to 37 percent. The taxation bill also sets out plans to make changes to KiwiSaver, introduce an independent earner tax credit and repeal the tax credit for research and development. Finance Minister Bill English says tax cuts alone will put around $7 billion into the economy during these tough times. He says this in turn will save jobs and will create more to replace the thousands that will be lost because of the economic downturn. Mr English says the tax package incorporates significant amounts of the previous government's policy. However, he has also revealed that unions had a say in his decision to back down on the overhaul of KiwiSaver. Around $700 million will be spent in ensuring those earning less than $52,000 will not be hit in the pocket by the election policy to lower the employer contribution level to two percent. Mr English concedes National has changed its mind since the election campaign and is pursuing a move he says will make KiwiSaver more enduring such as doing away with the $40 per annum member fee subsidy will bring savings of $203 million. Thursday, 11 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ NZ MARKED 6/10 FOR EARLY CHILDHOOD CARE --------------------------------------- New Zealand has received a six out of ten in a UNICEF report card on early childhood education and care. The report puts New Zealand at seventh equal on a set of 10 benchmarks, which outline basic minimum standards for the care and protection of young children. New Zealand was marked down for insufficient parental leave, low public spending on early childhood services and disparity of access to essential child health services. The child poverty rate was also more than double the minimum standard. UNICEF spokeswoman Barbara Lambourne says the report sounds a clear warning about the need for New Zealand to improve its performance for young children. BIOFUEL REQUIREMENTS TO BE DUMPED --------------------------------- The Government is axing mandatory biofuel requirements. It has announced it will repeal legislation passed in September forcing oil companies to use proportional levels of biofuel in their products. Minister of Energy Gerry Brownlee says there is no way to prove imported biofuels are sustainably produced. He says the Government's view is that the current arrangement could cause more environmental harm. Mr Brownlee sees a future for locally-produced biofuel, but says importing it to create a problem is not what the Government wants to do. Mr Brownlee acknowledges the policy was not flagged in National's 100 day action plan. But he indicates steps had to be taken as requirements on industry are due to come into effect in February. Mr Brownlee says the sooner people know the Government's plans the better. BANKING SCHEME LIABILITY MAY BE $275 BILLION -------------------------------------------- The Government is acknowledging consideration will have to be given to the length and extent of banking deposit and funding guarantee arrangements. Information released today indicates the Government's contingent liability for taking steps to maintain confidence in the banking system is likely to hit $275 billion. Finance Minister Bill English says it is possible the two-year length of the guarantee may have to be extended depending on what other countries do. He says alternatively it might be scaled down or limited. Mr English says they will be looking at New Zealand's unique banking position but will be influenced by the international debate. GOVT ACCUSED OF "HOAX" OVER TAX PACKAGE --------------------------------------- The Government is being accused of "pulling a fast one" on low income earners with its tax package. The legislation, which will deliver tax breaks of around $18 a week to the average worker from next April, has been passed in Parliament this morning. Labour is irate that the lower income tax threshold has been moved from 12.5 percent to 21 percent. It claims those who need tax relief will miss out, while those on higher incomes will get all the benefits. MP Clayton Cosgrove says the package will hurt low income families. He says it is "a typical Tory trick" and a hoax, with National telling people what they wanted to hear on the election campaign. Mr Cosgrove says it will be interesting to see how people react when they realise they have been done over. National's Chris Tremain is in return accusing Labour MPs of crying crocodile tears, saying they did little or nothing for earners by way of tax cuts when they were in power. FOOD PRICES RISE ANOTHER 0.8 PERCENT ------------------------------------ Food prices rose a further 0.8 percent last month, taking the overall rise to 10.3 percent to the year November. The largest increase was a 6.8 percent rise in the price of yoghurt, while bread prices increased 1.7 percent. Vegetables prices fell by 5.4 percent. Rises (November 2008) - Yoghurt up 6.8 percent Bread up 1.7 percent Nectarines up 57.2 percent Apples up 17.5 percent Non-alcoholic beverages up 1.8 percent Restaurant meals and ready-to-eat food up 0.6 percent Meat, poultry and fish up 0.3 percent Ready-to-eat food up 7.5 percent Bread up 18.3 percent Cakes and biscuits up 17.0 percent Cheddar cheese up 35.2 percent Potatoes up 43.6 percent Soft drinks up 9.9 percent Falls (November 2008) - Tomatoes down 29.6 percent Lettuce down 32.4 percent Broccoli down 24.2 percent TAX CUT LEGISLATION PASSES -------------------------- After lengthy and fiery debate, the Government has just passed its tax cut legislation. Labour filibustered hard to delay the law, with the third reading of the bill dragging out into this morning, before being passed by 68 votes to 52. National, ACT, the Maori Party and United Future supported the legislation while Labour, The Greens and the Progressives opposed it. The law will see average income earners get tax relief of around $18 a week when it comes into force next April. MPs are now debating the terms of reference for a special select committee set up to review the Emissions Trading Scheme. BUSINESSES PINPOINT ELECTRICITY SECTOR AS CULPRITS -------------------------------------------------- The business sector is not impressed with Reserve Bank Governor Alan Bollard's accusations that they are not pulling their weight during hard economic times. Dr Bollard says banks should drop their interest rates further and power and oil companies must reduce prices to ease inflationary pressures. He also criticised local body councils for hiking rates. Phil O'Reilly from Business New Zealand says Dr Bollard is right to call price-gougers to account, but he should be careful when telling private companies they are making too much money. "What I always get a bit concerned about is when politicians and bureaucrats start telling private sector companies what to do with their businesses." However, Mr O'Reilly believes the answer to Dr Bollard's concerns is to reform markets so that various sectors, such as the electricity industry, cannot get away with the price rises they have recently imposed. He says some consumers have found it too difficult to change power companies in order to reduce soaring bills. "You need some more visibility about what's going on with (electricity) prices so that customers can actually make some choices and change companies if they feel like it. I think that's the kind of answer (Dr Bollard) should be pushing for rather than just jaw-boning about it in quite tough economic times." Ganesh Nana, an economist with BERL, says private companies probably will not take any notice of Mr Bollard unless he takes action to back up his words. "We've heard these words before. Freeing up the markets as Phil (O'Reilly, Business NZ) is suggesting is one way of doing it. Another way (is for Dr Bollard) to back up his words with some regulations. In particular sectors like electricity where there are several big players, a bit of regulation or a bit of clout wouldn't hurt." Dr Nana says it is a bit much to ask city councils across the board to lower their rates, when in many cases rises are justified, because of the services councils have to provide. He concedes that Dr Bollard's message is a good one, but he says it is one of a series of economic messages that Dr Bollard and other officials are always talking about. "I wouldn't place a huge emphasis on the speech. All it is, is another speech from the Governor making his assessment of the economy as he sees it and pointing a few fingers around inflationary issues." PARLIAMENT URGED NOT TO RUSH THROUGH LAWS ----------------------------------------- The Human Rights Commission wants the Government to stop rushing crucial legislation through Parliament. During Parliament's two weeks under urgency, National plans to pass five key bills, none of which will go through the usual select committee stage. The bills include changes to the tax system, bail laws, education and the controversial 90-day probationary period for new workers. Judy McGregor, the Equal Employment Opportunities Commissioner, says rushed legislation is potentially risky legislation. She says in particular, the probationary period policy is a fundamental change to employment law which requires serious consideration. The commission says often unintended consequences of proposed legislation are identified at select committee stage and wrinkles ironed out. Dr McGregor says select committee debates allows for greater political understanding of opposing viewpoints and for better consideration of the impact of legislation on people's lives.? The select committee process is an important check and balance where both employers and employee rights can be debated in a measured way. Submissions to select committees reinforce democratic principles of transparency, participation and accountability.? The commission is preparing a submission on the proposed legislation to the Transport and Industrial Relations Select Committee. "Now the Commission and other stakeholders such as business, trade unions, the recruitment and human resources industry have been denied their opportunity to support or oppose or suggest amendments to the bill." Dr McGregor says given the current economic conditions, there is no compelling need to take shortcuts in the political process. (Too late - BH) FLOATING RATES SHOULD FALL FURTHER SAYS EXPERT ---------------------------------------------- A banking expert believes banks have room to drop floating interest rates further. Reserve Bank Governor Alan Bollard has already stated that banks should reduce their rates to ease inflationary pressures. He has also accused power and oil companies and local authorities of not playing their part in keeping prices under control and says food, petrol and electricity prices could come down further. In an effort to keep inflation under control, Dr Bollard has reduced the Reserve Bank's official cash rate by 3.25 percent in just over four months in an effort to soften the impact of a global recession. Banking expert, Dr David Tripe from Massey University, says banks have moved on fixed rates but should reconsider their current floating rates. He says while banks are concerned about additional costs they are facing regarding problems on international markets, those have largely already been taken into account. He says on the positive side, banks are now able to raise funds with the government's guarantee scheme. Dr Tripe says the 90 day bank bill rate is a relevant benchmark for floating rates and because it has come down significantly this year, banks now have room to make more adjustments. "(The 90 day rate) is sitting at around 5.3, 5.4 percent. Now historically it would be reasonable to say (floating rates should be) somewhere around two percent higher than that. So that would suggest we should be looking at a floating rate of no higher than about 7.5 percent." MORE TRANSPARENCY WANTED FOR DRUG FUNDING ----------------------------------------- A cancer specialist wants to see more transparency in the way the Government's drug funding agency makes decisions. The government is bypassing Pharmac by providing a 12 month course of the breast cancer drug Herceptin directly through the Ministry of Health. Under the Labour Government, Pharmac would only fund a nine week course claiming scientific information did not prove that a longer course was any more beneficial, but during the election, National pledged to extend funding for the drug Her-2 positive from nine weeks to 12 months. Medical Oncologist Richard Isaacs says he met with the Health Minister in 2006 to discuss the year-long funding and it has taken this long to make what he believes is the right decision. He says Pharmac needs to be encouraged to work together with specialist groups across the medical profession and clearly define its criteria for drug funding. He says that will ensure the right decisions are made. Friday, 12 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ PARLIAMENT PASSES 90-DAY PROBATION LAW -------------------------------------- Parliament has voted 63 votes to 51 in favour of new 90 day probationary employment provisions for small businesses. Labour MP Trevor Mallard is condemning what the opposition has labelled "fire at will legislation". He says it strips away protections and puts the power in the hands of employers. Mr Mallard says "scumbag employers" will take advantage of the new law and sack staff, particularly young employees. UNSCRUPULOUS BOSSES TO BE "DEALT WITH HARSHLY" ---------------------------------------------- The Government is pledging to deal harshly with any bosses who try to manipulate changes to new employment laws. Parliament has passed amendments to the Employment Relations Act which allow small businesses to hire staff on a 90 day probationary period, without being subject to personal grievance procedures if they are sacked. Minister of Labour Kate Wilkinson says there is no place for employers who might choose to abuse the law. "We will condemn any employer who is unscrupulous, unfair and abuses this process." ANOTHER PAY CUT FOR FARMERS --------------------------- There has been a sharp drop in the value of dairy farmers' shares in Fonterra. The fair value share price has decreased by $1.10 to $4.47 for the 2009/2010 season and follows a $1.22 drop the previous season. Fonterra Chairman Henry van der Heyden says the cuts are a reflection of the unprecedented turmoil in world equity and financial markets and the difficult global outlook. SUPERFUND SELLS OFF SHARES IN NUKE COMPANIES -------------------------------------------- The New Zealand Superannuation Fund is selling off shares in six foreign companies that are involved in manufacturing cluster munitions or nuclear explosive devices. The Guardians of the fund are selling $37 million worth of shares, including its parcel in a company involved in the simulated testing of nuclear explosive devices. Chief executive Adrian Orr says the mangers of the $12 billion fund made a commitment to exclude the companies when an international treaty banning it was signed by the Government. CITY MISSION CALLS FOR COMPANIES TO DONATE ------------------------------------------ The Auckland City Mission is encouraging manufacturers to get behind its annual Christmas appeal. Food manufacturer Ernest Adams is donating 45 cases of puddings to the mission, which works out at around 3,200 servings of pudding. Auckland City Missioner Diane Robertson says the large food companies can make the difference this Christmas and their contributions will be passed on to families all over Auckland. Ms Robertson says the mission also needs donations of money and Christmas presents for children. JUDICIAL REVIEW OF DHB CALLED OFF --------------------------------- Health Minister Tony Ryall has called off a judicial review of the dismissal of the Hawke's Bay District Health Board earlier this year. Former Minister David Cunliffe sacked the board and replaced them with Commissioner Sir John Anderson when ructions emerged. There was also a breakdown in relations with hospital management and the DHB had suffered $7.7 million budget blowout. Mr Ryall has now announced that Sir John and his four commissioners will form a governance board which will include the former DHB members. He says he has been determined to put things right and that starts by calling off the judicial review. "This is a major initiative that I took in order to stop the waste of ratepayers' and taxpayers' money on this litigation to clean up the Labour Party's mess." Hawke's Bay's five local councils initially called for the judicial review. (I have the unsubstantiated feeling that this was the right course of action. I was never comfortable with the arbitrary dumping of a democratically elected body. - BH) NZ'S KYOTO COSTS TIPPED TO INCREASE ----------------------------------- The biofuels industry claims the axing of mandatory biofuel requirements will slow the country's move towards self sufficiency, but oil companies say it will mean extra costs will not have to be passed on to motorists. The Government is repealing legislation passed in September which forces oil companies to use proportional levels of biofuel in their products. Bioenergy Association spokesman Brian Cox says the biofuels obligation had given investors the confidence to invest in biofuel manufacturing plants but that has now disappeared. "It means that we're going to continue to use conventional fuels, diesel and petrol and lose the opportunity that we would get by using a blend with biofuel to have an impact on carbon emissions." Mr Cox says the removal of the obligation will increase Kyoto costs as a significant opportunity to produce green fuels is slowed. However, BP says the repealing of the law means oil companies will not have to pass on the costs of the requirement. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. From news at wysiwygnews.com Wed Dec 24 17:18:00 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Wed Dec 24 17:18:08 2008 Subject: WYSIWYG NEWS - 24 December, 2008 Message-ID: <3F185A541960DB4B9FBBBB4104820BBC0CE8F936AC@STAWINCOEXMAIL1.staff.vuw.ac.nz> Subject: 24 December, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. With all the happiness of a very successful wedding celebration behind us, and having bid farewell to Andrew, Abbey and Billie, we set out from Queenstown to retrace our steps, and determined to enjoy the view. I promptly fell asleep soon after Cromwell. Fortunately, I was not driving at the time, and my next conscious thought was in Omarama, and thereby, I missed the entirety of the majestic Lewis Pass. It was still early in the morning, and we were pleased to find a restaurant and caf? open. The coffee was good, and thus revived, we continued our journey Northward. Sadly, the weather was a bit contrary with low grey cloud and drizzle, so apart from the roadside lupins there was relatively little to see. Arriving back in Geraldine, we paused once more for refreshment, at pretty much the same time as two bus loads of Korean tourists. They must have been mystified as to where all the much vaunted scenery was, because there had certainly been none to see up to that point in the day. Like us they needed rest rooms and coffee. We then hastened into the amazing Barker's store which sells all kinds of jams and condiments made from fruit. Generous tasting facilities helped us to reach some conclusions about what we liked and what was spectacular enough to buy. Moving on we pursued SH72 once more and were astounded at the Rakai Gorge by the volume of water thundering under the bridge. On our Southward journey, this was a typical relaxed South Island braided river. Now it was a muddy torrent. No wonder people get trapped by flash floods on these rivers. In my opinion, it had not rained for long at all the night before, so I was all the more astonished by the spectacle. We continued North through Oxford, and Rangiora to rejoin SH1 at Amberley. About 10 km North, just short of Waipara, we turned onto SH7 which takes you in the direction of Reefton. By now Mary was asleep, so she missed some of the stunning rocky scenery on the road to Hanmer Springs, especially on the last stretch from Culverden alongside the Waiau River. Nevertheless we arrived there safely and checked into the wonderfully warm and welcoming Chalets Motel in Hanmer Springs. These chalets are small fully self contained houses constructed in the Lockwood style, and equipped with every necessity. We enjoyed a pleasant drink, an excellent meal, and our own company and had a good night's sleep. Next morning, Mary, who is far fitter than me, wanted to do one of the local walks, so I dropped her off at the start of the Waterfall track which is posted as three hours return. Knowing her, I was at the designated pickup point two hours later, only to find her waiting patiently having arrived fifteen minutes before. We spent a hour or so in the various pools of the hot springs complex, and in one of them, got our ears bent by a farmer who had walked away from the farm for the week. He was (quite rightly, in my view) lamenting that he could not afford to buy his own meat from a supermarket. He spent a considerable amount of time and added to the warmth of the pool, in explaining what a tiny percentage of the retail price went to the actual producer, and how much each of the "percentage men" took as they clipped the ticket on the way by. The pools themselves were most enjoyable, ranging in temperature from about 35 deg C to 42 deg C. After a pleasant lunch in our unit, we went for another walk, this time one appropriate to my fitness level. We did the "Forest Journey" meandering through the Hanmer Forest in a little over half the posted 90 minute time. Dinner in the chalet again, and another good night's sleep prepared us for the next leg of the journey. The next morning, we filled the petrol tank at the only pump in town at full 10c/l more than the prevailing city prices. Ouch! However, with untravelled roads before us, we set out on our way to Picton. The Inland Kaikoura road through Waiau is breathtaking, if somewhat narrow and winding in places. The early morning sun gave flocks of sheep a golden rim and the play of light and shade in the valleys was just beautiful. We arrived in Kaikoura and found a caf? (associated with dolphin watching trips that provided excellent coffee to compensate for the vile brew we got further along the road a week earlier. Northwards beside the sea, we paused with a vague notion of seeing how affordable a cooked crayfish would be at one of the roadside stalls. The smallest available would have fitted in the palm of my hand, and provided no more than a snack and they wanted $30 for it. I remember buying large "packhorse" crays in Mission Bay in my childhood for thirty shillings - the equivalent of three dollars. I couldn't bring myself to do it, so, crayless, we continued. An uneventful journey brought us to Picton a full two hours ahead of our reporting time for the ferry. A quick phone call revealed that, due to our fully flexible seniors ticket, we could switch to the earlier sailing at no extra cost, and so we did. And now it's Christmas eve, cold and wet, grey and damp. But that's only outside. The pohutukawas are in full crimson bloom. Never in my life have I seen so many tuis (and other birds) as there are on the magnificently flowering flax plants. Surely a portent of better things ahead. To all my readers, and to Selenge and Telmen who do the news gathering and formatting, and to all your families and all who are dear to you, I wish the warmest wishes of the season. Not to be mealy-mouthed about it, I wish my fellow Christians a happy and blessed Christmas. To all others, every good wish for whatever reason you have to celebrate, and may 2009 be your best year yet. ---- 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 "GS" will indicate an opinion from our editorial assistant. In all cases they are honest expressions of personal opinion, and are not presented as fact. All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, Newstalk ZB News. All copyright in the news items reproduced remains the property of The Radio Network Limited. Sponsorship this week is courtesy of Kathy Brierley in the Ipswich in the UK. Thanks Kathy. ---- On with the News. Monday, 15 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ POLICE DEFEND USE OF PAID INFORMANTS ------------------------------------ Police are defending their use of paid informants. They maintain the Special Intelligence Group has been monitoring individuals, not domestic protest groups, and has acted within its responsibilities. National crime manager Detective Superintendent Win Van Der Velde says its just one of many police units that has paid informants targeting individuals involved in criminal behaviour. He says members of the public, some of whom are from criminal groups, also approach police with information. Mr Van Der Velde says where there is criminality that puts an individual or their property at risk, then police will do some sort of assessment to mitigate it. He says due diligence is applied when deciding if any action should be taken with the information collected. Mr Van Der Velde says police are never going to confirm who is an informant, because if people were exposed then they would stop coming forward. But explanations from police are not washing well with the Greens. Green MP Keith Locke is not satisfied with the explanation saying emails from a former agent prove the police were spying on groups on many occasions. He says his party wants a full investigation into the matter - something ruled out by the Government so far. (It takes a bit to shake my pro-police stance, but this is little short of sleazy. I usually reckon that if I am at odds with Mr Locke, I am not far wrong. The more that is revealed about this fellow Gilbert, at the centre of the present uproar, the less comfortable I am. - BH) DETAILS OF REDUNDANCY PACKAGE UNVEILED -------------------------------------- The Government has unveiled the details of its restart package for redundant workers. It will cost $50 million and payments will begin in the new year for those made redundant since election day. The package will support those who are eligible for up to four months via tax credits, accommodation supplements and out of work payments. The budget is for 70,000 people over two years, although that is a worst case scenario. Not everyone is eligible - people who receive redundancy payments of more than $25,000 are not covered. (An awful lot of exceptions and exclusions seem to apply - BH) PLANNED CLOSURE ANGERS MORRINSVILLE WORKERS ------------------------------------------- Workers at Meadow Mushrooms in Morrinsville are upset the company is closing rather than paying $2 million to deal with its smell. The company has already spent $2 million trying to remedy an odour problem. It says paying $2 million more to meet the standards set by the Environment Court is simply not economically viable. Meadow Mushrooms hopes to negotiate an exit at the two sites at the end of 2010. Christine Cowie has been with Meadow Mushrooms for more than nine years and is angry at the closure plans. "Pissed off . . . it's before Christmas - people got mortgages, you know, families." Ms Cowie says it is not fair the company is being penalised. "There are other companies around here who make a lot more smell than what we do." RISE IN PEOPLE FILING FOR BANKRUPTCY ------------------------------------ There is further evidence of the tough economic times. Veda Advantage is reporting a 25 percent increase in the number of people filing for bankruptcy or its alternative no asset procedure, compared with last year. Country Director John Roberts says it is not surprising given credit demand has decreased in the past 12 months. Mr Roberts says there has also been a rise in the number of people not paying their bills. He says the numbers are likely to keep going up over the first two quarters of 2009. Mr Roberts says the credit reporting system should be reformed to provide a fuller picture, saying New Zealand needs positive as well as negative data on credit files. He says at the moment, lenders only get to see one side of the scorecard. Mr Roberts says a lot of people being lent money now would not be lent money under a comprehensive reporting system. He says it would help people make better lending decisions and avoid having to file for bankruptcy. MANUFACTURING SALES DECLINE FURTHER ----------------------------------- Manufacturing sales are continuing to decline, falling 2.3 percent in the September quarter to hit their lowest level since the first half of 2003. Meat and dairy pulled down the total manufacturing sales volume for the June quarter. This time around, Statistics New Zealand says the two industries were relatively flat. Three industries that made a significant contribution to the September quarter decline were structural, sheet and fabricated metal products, paper and paper products and machinery and equipment. But increased prices have led to a 1.3 percent rise in sales value. That is mainly due to a rise in the price of meat and dairy products, followed by petroleum and industrial chemicals. AIR NZ ACCUSES COMMISSION OF "GRANDSTANDING" -------------------------------------------- Air New Zealand is accusing the Commerce Commission of grandstanding by prosecuting 13 airlines for allegedly working as a cartel to fix the price of air cargo. The airline's lawyer John Blair says despite extensive reviews of files and interviews with key staff, Air New Zealand has not been able to identify any evidence of price fixing or cartel behaviour. He says to date the commission has been either unable or unwilling to provide evidence Air New Zealand has breached any law. Mr Blair says he understands the court proceedings relate to four former and one current cargo division employee. AIR NZ PROSECUTED OVER PRICE FIXING ALLEGATIONS ----------------------------------------------- Air New Zealand is among 13 airlines being prosecuted for price fixing in the air cargo market over a period of seven years. The Commerce Commission has issued proceedings at the High Court in Auckland today. The commission alleges airlines throughout the world colluded to raise the price of freighting cargo by imposing fuel surcharges for more than nine years. Sven airline staff, including senior executives, are also being prosecuted. The commission alleges the airlines first entered into an illegal global agreement in 1999/2000 under the auspices of the trade organisation International Air Transport Association. It says the airlines imposed the fuel surcharges between 2000 and 2006. The allegations also involve a series of regional price fixing agreements. In addition, the commission alleges that a number of airlines conspired to price fix through the imposition of a security surcharge immediately following the 9/11 terrorist attacks. The commission says airlines earn more than an estimated $400 million each year transporting air cargo to and from New Zealand, and over the nine years the agreement was in place the total revenue was approximately $2.9 billion. Commerce Commission chair Paula Rebstock says the alleged collusion to impose additional charges will have caused extensive harm to the New Zealand economy. "Many New Zealand businesses and every consumer will have been directly affected by the increased air freight costs over many years. It will have resulted in increased costs for exporters and importers and higher overall prices for many consumer goods. ? The commission says some airlines are cooperating with the Commission and an early resolution may be possible in some cases. The airlines the Commerce Commission is filing proceedings against are: Air New Zealand Limited. British Airways plc. Cargolux International Airlines S.A. Cathay Pacific Airways Limited. Emirates. PT Garuda Indonesia. Japan Airlines International Co Limited. Korean Airlines Co Limited. Malaysian Airline System Berhad Limited. Qantas Airways Limited. Singapore Airlines Cargo Pte Limited and Singapore Airlines Limited. Thai Airways International Public Company Limited. United Airlines Incorporated SHOPPERS SPENDING BIG IN WELLINGTON ----------------------------------- The recession does not appear to be impacting on shoppers in Wellington, with retailers reporting Christmas spending is up on the same time last year however, Auckland retailers are having to work harder for their share of shoppers' money. Barry Hellberg from the Retailers' Association says shops in the capital are reporting very strong sales 10 days out from Christmas. Alan Collins from Unity Books says his shop has done nothing new to attract shoppers this season, but are busier than usual for December. He says Unity is probably doing better than other retailers because books are cheap, high quality and enjoyable gifts. The two week shopping peak in the lead up to Christmas has not happened in Auckland. Pedestrian counts are down across Auckland city, and the region's 17 retail centres are competing hard for shoppers' money. Newmarket Business Association head Cameron Brewer says people are seeking value for money and practical gifts are taking priority over the decadent or flippant. He says Newmarket has put a lot of money into marketing and he is still optimistic and predicts the centre is expecting a huge time next weekend and a very big Christmas Eve. He predicts Boxing Day sales will be big this year. FAMILY VIOLENCE FUELLING BULLYING? ---------------------------------- A new survey finds the level of bullying in New Zealand primary schools is amongst the worst in the world. The study, conducted by the International Association for the Evaluation of Educational Achievement, surveyed schools in 36 countries. It finds New Zealand's bullying problem is worse than Australia's, where students are bullied at a rate of almost 50 percent above the international average. Children's Commissioner Cindy Kiro says the study confirms something that educationalists have known for quite some time. She says many schools are working to control the problem which simply will not go away. She believes high rates of family violence may be fuelling the bullying problem in New Zealand's schools. SURGEON WELCOMES FUNDING FOR OBESITY SURGERY -------------------------------------------- A Wellington surgeon says more Government-funded obesity surgery is the only way to prevent the growing problem of type two diabetes. The Ministry of Health is considering spending $47 million over three years to operate on almost 3,000 morbidly obese people. Wellington obesity surgeon Richard Stubbs says the move would mean huge savings for health spending on type two diabetes, which threatens to cripple the country financially within the next ten years. He says surgery is the only way to prevent and cure the disease. Mr Stubbs says the majority of 140 patients who have had the surgery, have been cured of diabetes. Tuesday, 16 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ ACC LEVIES TO RISE ------------------ Higher ACC levy rates have been announced by the Government to cover the big funding holes it has discovered. Employer and worker levies are set to rise in the New Year and the same is likely for the motor vehicle account. ACC Minister Nick Smith says levy costs for employees will rise from $1.40 to $1.70 per $100 of earnings, an average cost of almost $800 a year. Employer levies are to rise around four percent. There are projections the cost of the ACC component of car registration will rise by $50 - that decision will be made next March. CHRISTMAS SPENDING SPREE YET TO BEGIN ------------------------------------- The Christmas spending spree has not started yet, according to the electronic transaction company Paymark. Spokesman Paul Whiston says with Christmas less than 10 days away, spending has been relatively flat. He says last year, New Zealanders spent more than $4 billion through the Paymark network in the weeks before Christmas. "This year so far we've seen $1.76 billion go through in the 14 days to Sunday night. So we've got a little bit of a way to go to hit that $4 billion mark, but I'm confident that those numbers will appear by Christmas Eve." Paul Whiston is expecting spending to pick up the three days leading up to Christmas, which was the trend in 2003 when Christmas Day last fell on Thursday. GENEVA FINANCE IN TROUBLE WITH NZX ---------------------------------- Geneva Finance is in trouble with the New Zealand Stock Exchange after failing to file its half yearly report. The NZX is warning trading in Geneva Finance's securities will be suspended next Tuesday unless the company complies with the listing rules. Geneva Finance was the first finance company to go into a moratorium after hitting problems in November last year. Four thousand investors were owed $138 million, 25 percent of which has been paid back by the company. ACCOUNTANTS NOT WORRIED ----------------------- New Zealand's finance and accounting professionals are more worried about achieving a work-life balance than job security. A survey by recruitment group Robert Half shows finance workers are amongst the least concerned in the world about the effects of the global financial crisis, with only 17 percent saying job security is their biggest worry. Senior manager Megan Alexander says because New Zealand has had such a severe skills shortage in the finance sector for several years, the impact now is that the shortage is just less severe. It is being filled by expats heading home, who ironically, sparked it by heading overseas in the first place. The survey says employers are opting for contractors rather than permanent staff. ACC SHORTFALL LIKELY TO BITE INTO TAX CUTS ------------------------------------------ The Government has already indicated that Accident Compensation Corporation levies will be increased and further announcements on higher levies are expected today which could bite into April's tax cuts. On taking office, National discovered there would be future shortfalls in various ACC accounts. In the earners and motor vehicle account there is a funding gap of $1.33 billion over three years, which will need to be met through taxpayer funds, which will claim around a third of next April's tax cut for someone on the average wage and up to a half for higher earners. Prime Minister John Key says the Government has had limited room to move in what will be a tough economic year in 2009. ACC is under pressure from rising medical costs and a shortfall in revenue from its investment caused by the global financial crisis. UNION SUSPICIOUS ABOUT REDUNDANCY PACKAGE ----------------------------------------- Unions are concerned that employers could use the Government's redundancy package to justify not supporting laid-off workers. National's $52 million ReStart rescue plan will help up to 70,000 workers who may lose their jobs over the next two years, by providing tax credits, an extra $100 in the accommodation supplement and out of work payments for 16 weeks. It is designed for people with families who are on moderate incomes and face high housing costs but the redundant workers must be actively seeking jobs. Self employed people with struggling businesses will also be helped. Couples with savings of more than $16,200 or single people with $8,000 or workers with redundancy payments of $25,000 will not be eligible. Andrew Little from the Engineering, Printing and Manufacturing Union says New Zealand needs to follow other countries in adopting minimum redundancy standards. He says Australia recently announced minimum redundancy rights with a sliding scale based on the size of the business and length of a person's service. Wednesday, 17 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ GOVT BLOCKS $250 MILLION IRON SAND DEAL --------------------------------------- The Government has blocked a $250 million deal to sell New Zealand Steel's iron sand business to Hong Kong based Cheung Kong Infrastructure. Finance Minister Bill English says the application has been declined because current global economic conditions means the buyer cannot meet Overseas Investment Act criteria. Permission is needed because the deal involves what is considered to be sensitive land. Taharoa Iron Sands is based south of Raglan in Waikato and mines and exports iron sand to China and Japan. GOVT WON'T PAY FOR TAXI CAMERAS ------------------------------- The Government is ruling out funding the installation of security cameras in taxis. Transport Minister Steven Joyce has met with representatives of the Taxi Federation to discuss what safety measures are in place to protect drivers. It follows the fatal stabbing of a Christchurch taxi driver earlier this month. The Taxi Federation has raised the idea of making cameras mandatory, but Mr Joyce says the costs will not be picked up by the Government. He says the Government has to be careful about getting involved, as there are a lot of professions where security has to be provided. (I can't help agreeing with this. Owning a taxi is a business. Every business is a risk. Every participant in a risky business should take his or her own measures to mitigate that risk, and not expect the tax payer to do it for them. - BH) WIZARD CLOSURE MAKES GETTING MORTGAGE HARDER -------------------------------------------- The closure of Wizard Home Loans is expected to make it a lot harder to get a competitive mortgage on a house. GE Money is shutting down its Wizard Home Loan business, blaming the global financial crisis and New Zealand home loan market conditions. Spokesman Geoff Lynch says the writing has been on the wall since May. "The market conditions have certainly worsened, the last few months have been particularly difficult. But it's just become clear now that there isn't a buyer or a strategic partner." Interest.co.nz editor Bernard Hickey says the announcement is unsurprising. "The credit crunch is filtering its way down to New Zealand and we now have one less competitor in the market. And it's now that much more difficult to get an easy loan to buy a house." Mr Hickey says the company was a product of an era where you could get easy money on wholesale markets, and those days are now gone. LOWER HUTT GRIFFINS FACTORY CLOSES ---------------------------------- Today is the last day at work for those left at the Griffins biscuit factory in Lower Hutt. Earlier this year the company announced the iconic factory would close at the end of the year, with the loss of more than 200 jobs. It said much of the factory's equipment was nearing its end date and it could not justify the investment to bring it up to scratch. Production is being relocated to Griffins' newly redeveloped plant in Papakura, South Auckland. Staff have been made redundant in four phases since the announcement and today is the last. They are having a gathering this afternoon at the Petone Workingmen's Club. STRESSED, TIRED STAFF LED TO LATE DIAGNOSIS ------------------------------------------- Inadequate systems and staffing at Hutt Valley Hospital's emergency department have been blamed for a delay in the diagnosis of a head injury. A Health and Disability Commissioner's report has found a 67-year-old man likely suffered a subdural haematoma two months before it was eventually diagnosed. Commissioner Ron Patterson has found some responsibility lay with the doctor in charge of the first examination. But he acknowledges the doctor was under huge pressure because he had been working long hours. Mr Patterson has placed the lion's share of responsibility with the Hutt Valley District Health Board. He says there is always a danger that exhausted and stressed staff will provide substandard care, although he has praised the DHB for improvements made to processes since the case. COST BLOWOUT ON SUPREME COURT BUILDING -------------------------------------- The Justice Minister is extremely unhappy at a $12 million cost overrun on the new Supreme Court building in Wellington. The project involves restoring the historic old High Court along with a new purpose-built building. The cost has jumped to $80 million. Justice Minister Simon Power says it is far more than it would have cost for a standalone building, but the restoration project is far too advanced to ditch now. Mr Power is not impressed the Government is having to fork out even more taxpayer money and says he will be running an iron ruler over the project to ensure there is no further blow out. CHALLENGING YEAR AHEAD FOR FARMERS ---------------------------------- Farmers are expected to face a challenging year ahead. The Ministry of Agriculture and Forestry's Pastoral Monitoring Report 2008 shows that 2007/08 has been a tough season for sheep, dairy, beef and deer farmers. Deputy director general of policy Paul Stocks says New Zealand's biological economy depends heavily on the weather. He says the country is looking a little dry at the moment, which could make life hard for farmers. He says a major challenge ahead for farmers will be drought recovery and managing spending as prices for core services and products rise. Mr Stocks says the medium term outlook for farmers is good, as New Zealand's food products are seen as safe and sustainable. The report says the 2007/08 year was dominated by drought and relatively poor prices, apart from the significantly improved dairy payout. Widespread drought caused by La Nina weather conditions affected many regions and meant supplementary feed reserves were lower than usual. Hay, silage and grain prices increased steadily. The strong New Zealand dollar constrained returns and was more noticeable in the sheep and beef sector than in the dairy sector where the large dairy payouts masked exchange rate related constraints. NZ DOLLAR JUMPS 2C AFTER FED RESERVE CUT ---------------------------------------- The New Zealand dollar has jumped around two cents following today's unprecedented move by the US Federal Reserve. It has cut American interest rates to practically zero - saying it wants them in a range from nought to 0.25 percent. ANZ Chief Economist Cameron Bagrie says markets have reacted reasonably well, with the NZ dollar popping up a little bit to sit at around 57.79. "Which of course is good news for importers. But exporters are not going to like that story too much." Mr Bagrie believes New Zealand will have to wait weeks, or even months, to see the big picture effect FOR SALE - ABC CHILDCARE CENTRES -------------------------------- New Zealand's 120 ABC childcare centres are up for sale. The Australian company has around eight percent of the childcare market in New Zealand and is Australia's largest provider. It went into receivership in November, owing more than $1 billion. Expressions of interest are now being sought in the New Zealand centres that cater for 8,000 children a day. Also included in the deal is the Christchurch-based New Zealand College of Early Childhood Education, which ABC owns and operates. The company intends to issue more information in January. EMPLOYERS RESIGNED TO ACC COST RISES ------------------------------------ The Employers and Manufacturers Association believes the Accident Compensation Corporation levy increase is unavoidable, but says it comes at the wrong time for many businesses. The Government has announced that on April 1, the average employer levy will increase by four percent, from $1.26 to $1.31 per $100 of payroll. Workers will pay $1.70 per $100 of earnings, up from $1.40. A $50 dollar rise in vehicle registration fees and increasing motor vehicles levies will be considered next year. ACC Minister Nick Smith blames forecast ACC cost rises of more than $4 billion until 2011. EMA Chief Executive Alasdair Thompson says it is an unfortunate increase in costs, but says there is no other option. He says the reality is the cost of healthcare and the number of claims has increased and the extra liability was not disclosed by the previous government. Mr Thompson says while employers will not like it, they will understand why the cost is going up. However, he says the timing is not good and adds another burden on top of falling sales, lower margins, difficult debt collections and falling consumer demand. GREEN LIGHT BULB DECISION OVERTURNED ------------------------------------ The new government has moved to reverse a decision forcing people to use energy efficient light bulbs. Energy Minister Gerry Brownlee has announced the overturning of regulations that would have phased out old style incandescent bulbs and required the use of more energy efficient alternatives. Labour MP Pete Hodgson is condemning the Minister's decision saying it is at odds with trends currently being seen in Europe. He says Mr Brownlee needs to explain why he is ramming the country into reverse gear. Energy Minister Gerry Brownlee says the Government is committed to energy efficiency but believes that when it comes to light bulbs, it should be a matter of consumer choice. (Having converted our entire house to compact fluorescents, despite their aesthetic and practical shortcomings, I now wish I hadn't. No fewer than four of these supposedly long life bulbs have died. One over my desk exploded and showered me with glass and who knows how much mercury. - BH) Thursday, 18 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ BLEAK PICTURE FOR THE ECONOMY ----------------------------- A budget policy statement released today predicts 52,000 more people will become unemployed over the next 18 months and Crown debt will balloon. Finance Minister Bill English is confident New Zealand can ride out the storm, saying the Government will inject around $9 billion into the economy over the next two years, much of it borrowed. "The plan in essence is quite simple, that is to maintain significant short term stimulus in the economy to protect people from the sharp edge of recession." Business Roundtable spokesman Roger Kerr says the Government must convince the business world it knows what it is doing. "The Government has got to do a lot now to create business confidence, to give business a clear lead that they're on the right track in terms of dealing with the huge fiscal problems that they've inherited - Government spending just rocketing away." But Labour's Finance spokesman David Cunliffe is defending the shape his party has left the Government's coffers in. "We start off in a better state than most countries. Our levels of debt are low compared to what they used to be, they're about a quarter of where they were under Muldoon and half what they were when we inherited the Government last time from National." INNOVATIVE HEART OPERATION IN WAIKATO ------------------------------------- Waikato Hospital surgeons have successfully completed an innovative heart operation on a 78-year-old Thames man. Noel Howard has had an aortic valve replacement, under a new procedure - the first of its kind successfully performed in New Zealand. The procedure involves making a small incision in the chest while the heart is still beating, rather than going up through an artery in the groin. The operation took over an hour. Mr Howard had been suffering from aortic stenosis, which is the most prevalent heart disease in the western world. It causes restricted blood flow, putting a strain on the heart, eventually causing it to stop. NZ MAORI THE VICTIM OF BUDGET CUTS ---------------------------------- The 2009 New Zealand Maori programme has been cut from the rugby calendar. The New Zealand Rugby Union is trying to chop $1 million from the national teams budget as well, as it tries to ride through the economic crisis. Along with the 2009 New Zealand Maori programme, the men's Provincial B competition has been scrapped, while the Black Ferns' programme will be reduced. The Junior All Blacks will be reinstated to the Pacific Nation Cup, but CEO Steve Tew is sounding a warning about their future. He says if the economic situation changes they may have to look at the juniors programme too, as it is a team which costs a lot of money. There will be no overseas tour next year for the Heartland 15. SHELL DROPS DIESEL PRICE 5C --------------------------- Shell has dropped the price of diesel by five cents a litre. It now costs $1.11.9 per litre. The reduction will be welcome news for diesel users, with the price of petrol repeatedly dropping over recent weeks. DIRE PREDICTIONS FOR THE ECONOMY -------------------------------- There are dire predictions for the economy over the next few years, with unemployment predicted to rise by 52,000 to 6.5 percent by mid-2010. Treasury's budget policy statement released this morning says the global financial market upheaval is one of the biggest shocks to the world economy in the past 50 years. Its ultimate impact on New Zealand is still highly uncertain. However Finance Minister Bill English is confident New Zealand will ride out the storm. "This is the rainy day that Government has been saving up for and the plan in essence is quite simple - that is to maintain significant short term stimulus in the economy to protect people from the sharp edge of recession." The pruning knife will be taken to KiwiRail, the billion dollar insulation fund for housing will be scrapped and Government spending will be cut back. MEN LEAVE STUDIES CARRYING MORE DEBT ------------------------------------ Men earn more money than women - but leave their studies with more debt. Statistics New Zealand has released its 2007 figures showing men earned 13 percent more than women when they finished studying, but owed an average of nine percent more on their student loans. That equates to average earnings of $31,500 for men and a debt level of just over $15,000. Women take in an average of just under $30,000 and had average debt of around $14,000. DOMESTIC VIOLENCE BILL PASSES FIRST READING ------------------------------------------- New laws toughening up police and court in dealing with family violence have passed their first reading in Parliament. The Domestic Violence Safety Enhancing Bill was passed unanimously by MPs shortly before midday. The legislation allows police to issue on the spot protection orders, allows courts to issue protection orders on behalf of victims and also provides for courts to provide more protection to children via bail conditions. The bill will go to select committee for consideration in the New Year. THERMAL BAN OVERTURNED ---------------------- Parliament has passed new legislation overturning restrictions on thermally generated electricity. The law overturns the ?thermal ban?, which made it a criminal offence to construct new thermal power stations, including gas-fired plants. Labour's Rimutaka MP Chris Hipkins says it show the country is turning its back on renewable energy. "Another day in this house, another bill from this Government denying climate change, another sad day for the planet as this Government turns its back on climate change." MPs passed the new legislation by 63 votes to 58. INVESTORS CONTINUE TO FAVOUR RESCUE PLANS ----------------------------------------- A financial advisor says the decision by Dorchester Finance investors to approve a rescue plan rather than receivership, is consistent with the stance taken by other investors in troubled finance companies. The deferred repayment plan will see Dorchester's 7,200 investors get back the $168 million they are owed in 12 repayments over three years. The company ran into trouble mid-year when the struggling property market fell even further. Financial advisor Chris Lee says investors voted 97 percent in favour of the plan. He says some of the money is locked into troubled property loans, but the company is confident it can get its way out of the mess. He says the decision made by Dorchester investors comes as no surprise as other finance companies including North South, Hanover and St Laurence have voted in favour of moratoria and next week, Strategic Finance investors will vote. "I think it had been well-signalled that investors prefer to have a moratorium than a receivership providing they trust the management and the board to act properly and there is no indication whatsoever that the new board of Dorchester will not act properly. One has to wish them luck in what will be a very, very difficult market." Friday, 19 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ MAYOR SAYS GANG TENSIONS EASING IN MANUKAU ------------------------------------------ Gang tensions in Manukau are beginning to ease according the city's Mayor Len Brown, who has met with Prime Minister John Key at Parliament this afternoon. The pair discussed recent violence in the city, with the Prime Minister reaffirming the Government's commitment to put 300 new police officers on the streets of south Auckland by 2010. Mr Key says the 300 new police are an important start. He says they will make a difference as they will have a physical presence on the streets. Manukau Mayor Len Brown says the gang tensions in Manukau are cyclical, occurring in the 70s, 80s and again now in 2008. But he says there actually appears to be less trouble at the moment. Mr Brown says it is not an issue that will be resolved in the next six months, or when the 300 extra police arrive, but authorities have a real focus on the situation. He says he is pleased with progress already achieved already. WORKING FOR FAMILIES "JUSTIFIED DISCRIMINATION" ----------------------------------------------- The Child Poverty Action Group is claiming a partial victory in its fight against Working for Families. The Human Rights Review Tribunal has ruled the in-work tax credit for families does not breach the Human Rights Act. It acknowledges the credit for working parents is discriminatory, but says it is justified. Action Group spokeswoman Janfrie Wakim says she is pleased the discrimination has been proven, even though the ruling is weak. She says all children should be treated the same, whether their parents are in paid work or not. Ms Wakim says the in-work tax credit undermines 200,000 children in New Zealand. She says many families are constrained due to the economic circumstances, and to deny children the support is cruel. Ms Wakim says allowing low income parents to get the tax credit would be the best anti-child poverty and anti- recessionary spending the government could do. CHINATOWN NOT A THREAT SAYS MAYOR --------------------------------- The mayor of Waitakere in west Auckland is urging residents not to lose sleep over the a proposal for a Chinatown. The council is considering several options to attract visitors to New Lynn, including building a Chinatown. Some locals are so opposed to it, they have formed an action group and have started a petition calling for the council to ditch the idea. Mayor Bob Harvey says they should stop panicking. He says Chinatown is simply a marketing idea and has got nothing to do with cultural or social change. GOVT URGED TO ACT ON EMBRYO DECISION ------------------------------------ Right to Life campaigners are urging the new government to act as soon as possible on a controversial recommendation on embryos. The Advisory Committee on Assisted Reproductive Technology says surplus embryos left over from fertility treatment should be used for research, but the recommendation has been sitting on the health minister's desk since June last year, with the implication being the issue is too hot to handle. Right to Life spokesman Ken Orr hopes National opposes the recommendation. "It will be argued that these are spare embryos that are not required. From the moment of conception, the human embryo is entitled to be given the respect that is given to a person." Mr Orr says a line needs to be drawn in the sand on the issue. DECISION ON BOOSTING POWER LINE IN NEW YEAR ------------------------------------------- Transpower has submitted an investment proposal to the Electricity Commission in the hope of building a new double circuit 220 kilovolt transmission line in the North Island by 2013. Grid development general manager Tim George says the line will help to provide needed capacity for new geothermal generation being built or planned in the central North Island. He says the national grid operator wants to ensure electricity runs smoothly between Wairakei north of Taupo and Whakamaru in South Waikato. "The amount of geo-thermal generation that is being planned for that area is such that the existing transmission lines can't cope with it. We looked at a wide range of options and we came down with a proposal." Mr George says Transpower has been working closely with the local community on the plan. The Electricity Commission is expected to make a decision on the proposal early next year. UNION SLAMS BANK FOR HIRING FOREIGNERS -------------------------------------- ANZ National Bank is being accused of turning its back on New Zealanders in favour of cheap non-resident workers. The company has made an application to the Department of Labour to review its accreditation to allow it to employ foreigners for certain roles. Andrew Campbell from the banking sector's union Finsec, is calling on the Department of Labour to reject the bank's application. He says there are plenty of New Zealanders needing work and the bank should look in its own backyard. Mr Campbell says considering the bank made $1 billion profit this year, it can afford to pay New Zealanders a decent wage. He says the Department of Labour is obliged to act in the interest of New Zealand. An ANZ spokeswoman says on rare occasions the company cannot locate suitably qualified people in New Zealand and has to look offshore. GOVT URGED TO TAKE STEPS TO BOOST ECONOMY ----------------------------------------- The Government is being urged to take urgent action to help boost the economy. The latest Treasury figures forecast lower profit margins, less investment, Government debt ballooning from 17.5 percent of gross domestic product to 33 percent in five years and up to 7.5 percent unemployment by mid-2010. Michael Barnett , chief executive of the Auckland Chamber of Commerce says the situation is worse than what his organisation was expecting. He says bringing forward tax cuts and cutting public spending is not enough and says the Government needs to provide something positive for businesses so that the marketplace does not lose all hope. Mr Barnett says in addition to bringing tax cuts forward and cutting public spending positive initiatives are needed to keep businesses alive and employing staff. He says those more likely to survive are the ones that have been around a while and have a sound base. Peter Conway, the Council of Trade Union's economist says the Government is preparing for the economic downturn, but it needs to be more transparent and reveal which areas of the state services could be affected after it was signalled there would be cuts. But Mr Conway welcomes Government's commitment to increase capital spending. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. From news at wysiwygnews.com Sun Dec 28 23:06:18 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Sun Dec 28 23:06:24 2008 Subject: WYSIWYG NEWS - 28 December, 2008 Message-ID: <3F185A541960DB4B9FBBBB4104820BBC0CE8F936CE@STAWINCOEXMAIL1.staff.vuw.ac.nz> Subject: 28 December, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. Wanganui on Christmas morning was cool and grey, the occasional touch of light rain and just a hint of blue sky breaking through now and then. It was one of those days on which no sign of either mountain was during our drive from Wellington. We checked early into the Riverside motel on Somme Parade, since it was here that we planned with my brother Laurie and his wife Fran, to set up Christmas lunch for my mother. It came as a bit of a shock to discover that our former hosts of many years, Warren and Claire, had sold up and moved out six days earlier, and were apparently enjoying a rest from being moteliers. They used to greet us like long lost family members whenever we turned up. Well, wherever they have got to, we wish them well. After a brief check-in with Mary's parents, we met up with Laurie and Fran, and went to collect my mother from the rest home. There were many comings and goings, and lots of cheerful staff waving farewell and giving Christmas greetings to their charges. We borrowed a wheel chair and made our escape with Mum to the car, and from there down through the leafy oak- lined Halswell St, and onto Somme Parade. From there we could see the impact of heavy rain in the high country as the river, combined with a high tide was higher than at any time in recent memory. Driftwood was everywhere, and my thought was that the Jetboat sprints scheduled for the 27th December would be much more hazardous than usual with so many obstacles to avoid. I suppose that some sort of boom could be rigged, but I am unsure of the legality of blocking a navigable waterway to other traffic. Anyhow, we arrived at the motel, and there we shared a Christmas lunch for the first time in many years, and even persuaded Mum to wear one of those silly paper hats that are found in Christmas crackers. Of course, the rest of us were then obliged to wear one too. Lunch was much appreciated, and at last my mother needed to be returned to her bed to rest, and so that part of the day came to an end. In the evening, we shared another Christmas meal with Mary's parents, Cath and Jack, her Brother Gerry, and his wife Viv, and their daughter Ashleigh. Two full-on festive meals in one day played havoc with my weight-control programme, but were somewhat unavoidable in the circumstances. Light meals and more walking for the next few days should bring things back on track. The next day, as the air was rendered hideous with the scream of large motorcycles redlining as they howled around the "cemetery circuit" in Wanganui's annual boxing day event. After appropriate farewells to our elder citizens, we left Wanganui behind. This time, the journey was in bright sunshine, though we still had no glimpse of either mountain through the cloud barriers to the North. I am sure I have said it before, but the overwhelming characteristic of the rolling pastoral landscape between Wanganui and Bulls is the infinite variety of textures. There are the soft greens of new growth in various stages, the rich crumbly browns of ploughed and harrowed fields, the dry golden stubble of some long harvested crop, and the burnt toast colour of a field that has been set alight to prepare the ground for its next crop. Not just colours but feel alters according to the kind of plants growing there. I harbour faint hopes of being able to capture them using my favourite medium, hard chalk pastels, and plan on attending a course in January to help acquire the necessary skills. For most of the trip, we were lucky to have very light traffic. Someone somewhere has determined that the best way to achieve maximum traffic flow is to block off all the passing lanes. I have seen an article in Scientific American many years ago which likened vehicle flows to molecules of gas in a tube. I am willing to believe, from a mathematical perspective that they are probably correct. I suppose that my disagreement arises solely from the fact that, regardless on its effect on traffic flow as a whole, it seems to slow me down. At Otaki, we diverted from the main highway down to the beach where for thirty minutes, Mary accompanied me on some of that necessary therapeutic walking I referred to earlier. Otaki Beach is a typically West coast black sand beach, and when the wind is in the wrong quarter, it can be a miserable place. On this day, it was wonderful, with warm dry conditions and a light onshore breeze. Families were making good use of the grassed areas above the beach to enjoy picnics from their Christmas leftovers, or in some cases, unfolded paper parcels full of steaming fast foods from the many outlets in the town. We resumed our journey and met up with our good friends Jane and Roy in Waikanae. We arrived reasonably early in the afternoon, and with the weather still putting on a great show, we decided to go for a walk. The walkway along the Northern bank of the Waikanae river is very attractive indeed, and we could see in the distance a flock of Royal Spoonbills nesting in trees beside the river. Other birds of numerous varieties flitted about and birdsong, together with the gurgle of the river over its stony bed was very pleasant indeed. The only insects to be seen were bumble bees doing their lazy best to extract nectar from the widest variety of flowers. I did notice with some sadness, the complete and unusual absence of honey bees. I think the phenomenon known as colony collapse disorder (CCD) is at work here. Even in fields full of clover and dandelions, no honey bees! I did discover the hard way, as the pathway passed between two horse paddocks, that the top wire being threaded through those plastic guides in that funny way was to ensure that I and the horses would get the full belt if we were foolish enough not to recognise an electric fence when we saw one. I think the composition of the soles of my walking shoes protected me from a heavier jolt. Some 45 minutes later, we were back at the house, and soon enjoying good wine, good food and good company in the third excellent meal in what seemed like a short space of time. All very nice. And just like that, yet another Christmas is over. Warmest wishes to all my readers everywherefor a prosperous and healthy new year. Thanks too to my excellent sponsors, OneSquared, and to Newstalk ZB Without whose news we would cease to exist. ---- 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 "GS" will indicate an opinion from our editorial assistant. In all cases they are honest expressions of personal opinion, and are not presented as fact. All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, Newstalk ZB News. All copyright in the news items reproduced remains the property of The Radio Network Limited. Sponsorship this week is from Helen Aitken and Doug Jay in Buladelah, NSW, Australia. Thanks to you both. I remember an excellent meal in a restaurant on a very wide main street, and a rest stop overlooking a river. Hope all is well in that pretty town. ---- On with the News. Monday, 22 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ STRATEGIC SHAREHOLDERS SUPPORT MORATORIUM ----------------------------------------- Shareholders have voted in favour of Strategic Finance's moratorium proposal. The vote held at a meeting in Wellington gives the troubled finance company an opportunity to put in place a plan, to repay 14,000 investors $315 million in instalments from next year, if and when funds are available. Last week Hanover Finance secured a similar moratoriums approval from its investors. In the past two and a half years more than 30 finance companies have run into trouble affecting around $3.7 billion of investor money. PATIENTS RECOVERING FROM LANDMARK SURGERY ----------------------------------------- An elderly woman who is just the second person in New Zealand to undergo an innovative new heart procedure is recovering well in Waikato hospital. The procedure involves replacing a valve in the aortic artery through a small incision in the chest while the heart is still beating. Normally surgeons go up through an artery in the groin. The 89-year-old says she has had a weak heart for years and normal surgery would have been of no benefit. The first person to have the operation was a 78-year-old Thames man, who is also recovering in a ward at Waikato Hospital. (I seem to recall that this seemingly good news turned bad - BH) DEFICIT SHOWS LACK OF SAVINGS ----------------------------- The Council of Trade Unions is blaming a lack of savings and investment in New Zealand for the current account deficit. One of the main factors leading to the rise in the deficit rising to $15.5 billion or 8.6 percent of GDP for the year ended September is higher prices for petroleum and petroleum products. However, Peter Conway from the Council of Trade Unions says the focus on exports and imports of goods and services should not obscure the fact that $13.7 billion (88 percent) of the current account deficit is due to the negative investment income balance. ?This reflects interest on overseas debt, dividends and capital repayments accruing to overseas owners of New Zealand firms and offshore bank borrowing to fund mortgage lending.? He says greater savings and investment levels are needed. He says the $166 billion net accumulated debt is a huge drag on the economy and means there is now a high reliance on relatively low public debt to assist heading off the worst effects of the global financial crisis on jobs, firms and households. Mr Conway says the attitude to saving will improve if wages also improve. SANTA'S WORKSHOP IN OVERDRIVE ----------------------------- The old favourites are still the most popular. Santa reports that the most popular toy request from children calling his Telecom Santa Line this year is a bicycle. The iPod ranks second, followed by cartoon character Ben 10 toys, Playstation 3, Lego and mobile phones. Trampolines are at number seven and many girls want Bratz or Barbie dolls. The Santa Line has received 668,000 calls since December 1 and his workshop is reportedly in overdrive as Mr Claus and his elves try to churn out the requests. DEFICIT CONTINUES TO CLIMB -------------------------- The current account deficit has continued to climb. Statistics New Zealand figures show that seasonally adjusted, the September quarter deficit was $4.1 billion. That is $571 million smaller than the June quarter deficit. But for the year ended September, the deficit stands at $15.5 billion, or 8.6 percent of GDP. The figure is up from 8.4 percent of GDP in the June year. The main driver was an increase in the value of imported goods, due to higher prices for petroleum and petroleum products. WAGE GAP STILL IN KEY'S SIGHTS ------------------------------ Prime Minister John Key is not giving up his push to close the wage gap between New Zealand and Australia. Earlier this year, the Council of Trade Unions estimated the wage gap with Australia was around 30 percent, however, Treasury figures show wages are closer to 27 percent higher in Australia. Mr Key says it is not something that can be turned around overnight, but it is still the Government's medium term objective. He will not concede that last week's gloomy opening of the books puts the kibosh on that aim. "The opening of the books have simply spelled out that we're going through a period of global weakness but so is Australia. Australia's gone from a position where it running what looked like a reasonably strong growth numbers. They're evaporating fast." Mr Key still believes that rectifying the situation in National's first term is not impossible. (I seem to recall that NZ's PM has a bigger salary packet than Australia's PM. - BH) SURVEY FINDS OVERSPENDING A BIG CONCERN --------------------------------------- Overspending has been pinpointed as the biggest stress factor for shoppers this Christmas and they are obviously doing something about it. Sales are down as economic gloom hits shoppers. Retailers are hoping the next three days will see a rush to malls. Department store Farmers has conducted an online survey asking customers what stresses them most about the season. Overspending topped the list followed by having to buy presents for difficult people. Respondents listed overeating in third place, followed by finding the time to shop and of preparing the house to host out of town friends and family. A thousand customers took place in the survey. Dean Cook, head of marketing at Farmers, is not surprised by the results saying that excessive hype about economic doom and gloom will see people tighten their purse strings. ?People are naturally worried about what is happening economically right now so they're sticking to a tight budget." BUSINESS RELY ON NEXT 3 DAYS SHOPPING ------------------------------------- Retailers are banking on the next 72 hours to make up for the shopping drought. Newmarket Business Association head Cameron Brewer says it has been a tough year. He says retailing margins have been squeezed, importing costs are up because the dollar is down, operational costs are up and consumer confidence is down. Mr Brewer says EFTPOS provider Paymark says the volume of transactions are comparable to previous years, but people are spending less. WAITING TIMES "WORST SINCE RECORDS BEGAN" ----------------------------------------- The time people spend waiting to be attended to at emergency departments is getting longer. Health Minister Tony Ryall says in the last quarter the performance was in many areas the worst since records began around eight years ago. He has received a report from a task force looking at ways of speeding up emergency departments. Mr Ryall says one of the key recommendations is that there should be a target of how long people wait to be seen in emergency departments so that all hospitals can work towards that. He says while patients facing life threatening conditions are seen at once, other seriously injured or ill patients have to wait far too long in over crowded and struggling departments. Tuesday, 23 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ CHARGES LAID AGAINST FINANCE CO DIRECTORS ----------------------------------------- Criminal charges have been laid against the directors of two troubled finance companies. The Securities Commission has taken action against Nathan Finance directors John Hotchin, Donald Young and Kenneth Moses. The chairman of Bridgecorp Bruce Davidson and non-executive directors Gary Urwin and Peter Steigrad have also been charged. Bridgecorp executive directors Rod Petricevic and Robert Roest are already facing criminal charges after the Registrar of Companies took them to court earlier this year. NZ$ EXPECTED TO TAKE A BIG HIT ------------------------------ Economist Gareth Morgan expects the dollar to take a big hit after the latest fall in GDP. Statistics New Zealand figures show the Gross Domestic Product, which represent the country's income earned from production in New Zealand, contracted 0.4 percent in the September quarter. It is the third consecutive quarter the GDP has fallen confirming the economy is experiencing its darkest period in a decade. Dr Morgan says the country is in the midst of a very serious recession. The latest figure follows drops in the GDP of 0.3 percent in the March quarter, and 0.2 percent in June. "We can see it in terms of next year being a bit bleak in things like our export prices, dairy prices in particular, advance payments. So I expect the currency to take quite a hit on this over 2009." Dr Morgan says on the bright side, there is nothing wrong with an economy having a bit of a recession as it squeezes out the excesses. LIQUOR BAN AT LAKE HAWEA ------------------------ The Queenstown Lakes District Council has imposed a temporary liquor ban for the township of Lake Hawea. It will apply from 8pm on Saturday, December 27, until 8pm on January 5 and brings to four, the number of towns in the region with holiday liquor bans in place. The other towns are Queenstown, Arrowtown and Wanaka. People found in breach of the bylaw are liable to a fine of up to $20,000. NINE MONTHS OF RECESSION SO FAR ------------------------------- New Zealand's economy been in recession for the past nine months. Statistics New Zealand figures show the country's gross domestic product fell 0.4 percent in the September quarter, the third consecutive decrease. The biggest decline is in manufacturing, down 2.5 percent for the quarter, with food, beverage and tobacco manufacturers the hardest hit. Construction was down 1.2 percent. The 2.1 percent increase in primary industries was mainly due to agriculture (up six percent). Dairy production and cattle processed for meat were the main drivers within the agriculture industry. Service industries were down 0.2 percent, with the transport and communication, wholesale trade, and retail trade industries making the largest downward contributions. Household consumption expenditure (which measures the volume of goods and services purchased by households) dropped 0.2 percent, its third consecutive quarter of decline. Spending on furniture and household appliances was up during the quarter. Gross fixed capital formation, which measures investment in fixed capital, was down 8.6 percent, with the main driver being investment in plant machinery and equipment, which was down 15.6 percent. Other large declines were for investment in residential buildings (down 7.7 percent) and transport equipment (down 18.2 percent). Exports of goods were down 2.6 percent, with exports of agriculture and fishing primary products and dairy products showing the largest falls. Imports of goods were down 6.6 percent, with imports of machinery and plant the main contributor to the decline. For the year to September, GDP, rose 1.7 percent. Disposal income increased 4.4 percent for the year. BIG TICKET ITEMS REMAINING IN SHOPS ----------------------------------- People are shying away from buying big ticket items for Christmas. Electronic transactions company Paymark says transaction volumes are up five percent on last year, but spokesman Paul Whiston says the value of the transactions are down, indicating that people are not spending as much as usual. He says with only a couple of shopping days before Christmas, spending is down by just over $1.2 billion on last year. Mr Whiston says while there may be a ramp up in sales over the next two days, it is unlikely to reach the same levels as previous years. HUNDREDS CAUGHT DRINK DRIVING ----------------------------- Around 300 people have caught drink driving in the central North Island this month. Waikato Road Policing Manager Inspector Leo Tooman says the two distinct groups being caught driving under the influence are youths and drivers aged over 45. He one major concern is that one in 120 cars could have an alcohol impaired driver behind the wheel. He says it only takes a momentary lapse in concentration before a vehicle is driven across the centre line and into the path of oncoming traffic. Mr Tooman says it is disappointing the road safety message is not getting through. GDP FIGURES EXPECTED TO BE GLOOMY --------------------------------- Economists are expecting more gloom when latest GDP figures are released this morning. The consensus is that they will show New Zealand has been in recession for nine months. The BNZ expects to use the figures as a basis for revising down New Zealand's economic projections which are already weather than those published last week by Treasury. It warns that despite economic stimulus coming from tax relief, plunging fuel prices and declining interest rates, an even bigger disappointment looms. The BNZ says any hope of a rebound in growth has been quashed by the degree of global recession New Zealand is now staring at. Yesterday, Statistics New Zealand figures showed that the annual current account deficit had risen from $15 billion to $15.5 billion to stand at 8.6 percent of gross domestic product. The BNZ says the current account deficit seems on course to breach 10 percent of GDP next year. It believes that while imports will slump as a consequence of cooling domestic demand and falling raw material prices, the global recession will have an impact on export volumes and prices. The bank says whatever way they are sliced, the export and import details of the Balance of Payments are not good news for economic activity. PARTY HARD TO EASE RECESSION ---------------------------- The hospitality industry is encouraging people to do their part to ease the global financial crisis by partying and spending up large. Bruce Robertson from the Hospitality Association says despite gloomy international economic conditions, most people are in a position to celebrate and have a holiday over the summer. He says rather than tripping off overseas, people should holiday that in New Zealand to support the local economy. "We think that if we can get New Zealanders spending money in New Zealand we can get New Zealand moving forward and that will result in more jobs being retained next year." Mr Robertson says with interest rates and petrol prices coming down and tax cuts kicking in, people now have a few extra dollars in their pockets to spend. He says if the economy is not kick started with a boost in confidence, there is a risk the country will spiral further into recession. PARENTS WHO ABUSE CHILDREN OFTEN VICTIMS THEMSELVES --------------------------------------------------- The Paediatric Society says it is hard to understand why anyone would abuse young children. A 15-month-old Kerikeri boy remains in a critical condition in Starship Hospital after suffering injuries doctors believe are non-accidental. He has been left legally blind and brain damaged. Northland police are continuing to speak with the relatives of the injured boy. Far North Area Commander Inspector Chris Scahill expects the scene examination of the boy' home to be completed today. Society president Rosemary Marks says poor parenting is an issue in abuse cases. "These are families who have not experienced good parenting themselves, parents who don't know how to respond to their children, when, for example, their baby cries." Dr Marks says often parents who abuse their children are the victims of abuse themselves. She says there were more than 60,000 notifications of child abuse in 2006, which is an appalling figure. Wednesday, 24 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ NO WORK FOR NANNIES ------------------- A childcare expert says government changes to the rules for nannies are shortsighted and discriminatory. The Education Minister has reversed a law change that allowed early childhood educators under the age of 20 to work in home-based services. PORSE In-home Childcare and Training spokeswoman Jenny Yule says there are a huge number of nannies graduating at 18 who will not be able to work for two years. She says the sector is experiencing huge staff shortages, at the same time young nannies are giving up or heading overseas because they can't work in New Zealand. SFO INVESTIGATES NATHANS FINANCE -------------------------------- The Serious Fraud Office has confirmed it's investigating the affairs of Nathans Finance. It follows a complaint from the finance company's receivers. The SFO says Nathans' parent company, VTL Group, owes its subsidiary approximately 112 million dollars, and Nathans is owed another 59 million dollars by parties associated with VTL's business activities. Those two figures combined come to just a little more than the 166 million dollars Nathans owed investors, when it went into receivership in August. COLLAPSE OF FONTERRA'S CHINA PARTNER "MINIMAL" ---------------------------------------------- Fonterra is confident the impact of Sanlu collapse on the business will be minimal. The dairy giant owns a 43 percent stake in the Chinese company which has been forced into bankruptcy. Six babies died and thousands others fell ill after being fed melamine-tainted baby formula made at the Sanlu dairy company. Fonterra CEO Andrew Ferrier says he was aware San Lu was in a very difficult position, and faced mounting debts as a result of the scandal. "We still have directors on the board and there is a lot of work going on inside China finding an orderly way to ultimately transition Sanlu to some form of new ownership." Mr Ferrier says as minority investors, Fonterra is cooperating to make sure things play out as efficiently as possible. HUNDREDS HELPING WITH XMAS DINNER --------------------------------- Around 450 volunteers will help to table a mammoth meal tomorrow as the Auckland City Mission prepares to feed 1600 people. The feast, to be held in Auckland Town Hall, will be the country's biggest Christmas dinner. Auckland City Missioner Diane Robertson says volunteer chefs are starting to prepare the food today. They will cook 200 kilograms of ham, 200kgs of turkey, 250kgs of potatoes and plenty of other vegetables. Most of the food for the dinner has been donated to the mission. MANY AVOIDING DOCTOR BECAUSE OF COST ------------------------------------ A survey has found that alarming numbers of people are avoiding going to the doctor because it is too expensive. Private health insurer Southern Cross Medical Care commissioned the survey which shows 71 percent of respondents have avoided visiting a GP when unwell, specifically because of the high cost. Another 22 percent have avoided taking their unwell children to the doctor for the same reason. One in four adults have not filled their prescription because they thought it would cost too much and one in four have not visited a GP or specialist for fear of discovering a medical problem. Southern Cross thinks the high numbers of people avoiding medical treatment may be linked to the current tough economic times. Spokesman Ian McPherson says the results are concerning for the nation's health. "Early detection and treatment is extremely important in the successful treatment of many illnesses, from the common flu to cancer. When people don't seek treatment and medical advice they risk exacerbating the problem which not only leads to a further deterioration in health but could ultimately cost more money to treat.? Dr McPherson says one's own health and that of their family should always be the first priority. RECESSION ONLY HALF WAY THROUGH ------------------------------- An economist is predicting further job losses following further contraction of the economy. Gross domestic product fell 0.4 percent in the September quarter, the third quarterly contraction in a row. Darren Gibbs of Deutsche Bank says declining business activity is forcing employers to cut staff numbers. He says in the past six to eight weeks there has been evidence of businesses down-scaling their labour force to meet the lower level of demand. He believes that will be a feature throughout next year. Mr Gibbs says Reserve Bank Governor Alan Bollard was too optimistic earlier this month when he suggested the recession was over. Mr Gibbs says the GDP figures indicate New Zealand is only half way through the recession and more negative quarters are likely. Thursday, 25 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ BURGLARY CLAIMS JUMP 20 PERCENT ------------------------------- A new survey shows almost half of us feel apprehensive about leaving our homes, because of the risk of break-ins. The AA Insurance Home Security Index talked to almost 1800 people. Spokesman Martin Fox says it is not surprising so many people are concerned about leaving their homes empty, given there has been a 20 percent increase in burglary claims leading up to the holiday season. He says people can easily protect their property by securing their homes before heading out of town and by keeping Christmas gifts out of sight. Police have added to the cautionary note, suggesting people take care disposing of packaging after ripping open their gifts. They say leaving the box for a high-tech present advertises what lies inside your home to thieves. HAWKES BAY DROUGHT FEARS RECEDE ------------------------------- Hawke's Bay farmers are holding off declaring a drought for the moment. An emergency meeting on Tuesday concluded the region is not in a drought just yet. As if to confirm the decision, yesterday brought up to 30 millimetres of rain. Farmers say they are more than happy with the slow and steady downfalls, and so is Hastings Mayor Lawrence Yule. He says the rain has come a little late, but should be enough for some of the farms which have become brown to green up. Mr Yule says the situation was not dire earlier in the week and it certainly is not now, providing there is some additional relief soon. He says the rain will provide most relief for stock farms, increasing feed. Friday, 26 December 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ LATE PAY DAY BEHIND SPENDING SURGE ---------------------------------- The last minute spending surge on Christmas Eve might be explained by something as simple as people waiting to be paid. EFTPOS operator Paymark handled four million transactions in the final hours of Christmas shopping. Well over $200 million changed hands which is a record amount and up 20 percent on last year. Paymark's Paul Whiston says it would have come as a relief to retailers, after a very slow couple of months. "People have held off and left (shopping) to the last minute. Another factor that we believe would have had some influence was that a lot of people would have got their final pay packet on Tuesday night." BALMY NEW YEAR'S EVE FOR MOST ----------------------------- New Year's Eve is shaping up to be a scorcher in many parts of the country. TRN weather analyst Philip Duncan says temperatures could reach 25 to 30 degrees in eastern parts of both islands and in central areas such as Queenstown and Taupo. He is also predicting strong northerlies in Wellington, where winds could reach gale force. Rain or showers are possible along the South Island's western and southern coastlines where cooler air is also expected. MISSION NEEDS MORE FINANCIAL HELP --------------------------------- The Auckland City Mission says like any other business right now, it is looking at how it can keep going. The mission fed around 1600 needy Aucklanders the annual Christmas lunch yesterday. It says demand for all its services continues to rise and the organisation may need a bigger venue next year where everyone can be seated in one area. City Missioner Diane Robertson believes the organisation has bigger challenges than most businesses, as it is growing. She says more and more people need its help, so it needs more financial support to keep going. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian.