WYSIWYG NEWS - 12 July, 2008

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Sat Jul 12 12:06:30 NZST 2008


Subject: 12 July, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

What weather we've been having. The media trots out the 
clichéd phrase "weather bomb". Here in Wellington the Weekend 
before last, that amounted to a trough passing through, 
generating high Southerly winds (150 km/h on Mt Kaukau), hail 
and rain, and waves crashing against the Western sea wall 
beside the harbour. Motorists going into the city surely 
needed a full windscreen washer tank, because one definition 
of misery is attempting to drive on a motorway with your 
windscreen smeared with salt water. Even worse as the light 
fails, and the lights reflecting off the wet road surface 
conspire to hide the lane markings. This persisted for much of 
the weekend. We were expecting Helen to visit with her 
husband, Vasely, and they duly arrived dashing in from the 
rain with Tofu, their 8 week old Pug puppy. It was a good 
weekend, yet the weather continued to the extent that the 
Police issued a warning to avoid the motorway section of SH1 
between Johnsonville and Porirua due to the danger of vehicles 
being overturned in the extreme gusts expected. I watched in 
some trepidation as Vasely's friends decided despite my advice 
to take SH2 and go over the Haywards Hill, disappeared up the 
Ngauranga Gorge towing a trailer. Happily no disaster befell 
them, and they got safely back to Gisborne. Last weekend we 
got another dose of truly bleak weather, and the visiting 
South African rugby team must have wondered what hit them 
(apart from a much better team that is). Spectators in the 
Westpac Stadium were wrapped in plastic sheeting and still 
managed to look cheerful. For my part, I value my comfort too 
much to go out on such a night. I heard a customer in my 
optician's today saying that the vast open walkway between the 
railway station and the stadium may have a misery factor 
surpassed only by the Russian steppes. 
I am now on research and study leave, so with some infrequent 
exceptions for trans-Tasman travel, I can work from home until 
next year and need rarely to go into the city. With petrol at 
$2.189/litre, that has to be a good thing! With broadband 
access, a good printer, and a VPN connection I have all the 
resources I need for writing. I need leave home only for data 
collection interviews. 

I must apologise for my erratic deliveries in recent times. 
The causes for that should be behind me now. 
----  
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 Chris Beck in the USA. 
Thanks Chris, your help is much appreciated.
----  
On with the News. 

Monday, 23 June 2008
~~~~~~~~~~~~~~~~~~~~

SMACKING PETITION AGAIN HANDED TO PARLIAMENT
--------------------------------------------

They have fallen short once before, but now supporters of a 
petition calling for the anti-smacking law to be overturned 
are back to try again. Larry Baldock of the Kiwi Party has 
today handed to Parliament 390,000 signatures. The petition 
fell 18,000 votes short of the 280,00 required earlier this 
year, when a number of the signatures were found to be 
duplicates or invalid. Mr Baldock says he is confident they 
have it right this time, as one in every four of the votes 
would now have to be found invalid if they are to fail. He 
says they have received 60,000 extra signatures since the 
petition was rejected in April. Mr Baldock says the 390,000 
signatures represent the largest ever petition for a citizens-
initiated referendum.

NATIONAL TO OPPOSE BIOFUEL LEGISLATION
--------------------------------------

National will oppose the Government's biofuel legislation, 
which it claims will drive up fuel prices. Parliament's Local 
Government and Environment Select Committee has today reported 
back on the legislation. Environment spokesman Nick Smith 
claims every additional cent on a litre of fuel costs New 
Zealanders $60 million. He says the 2.5 percent biofuels 
requirement is estimated to increase fuel prices by 4c a 
litre. Dr Smith says it will compound family budget woes and 
inflationary pressures, for no environmental gain.

(I suspect that most land capable of growing biofuel crops is 
also capable of growing food, and the world needs more of the 
latter. There seems to be a groundswell of opinion that the 
biofuel industry is a significant factor in the rising costs 
of food. Not being an economist, I wouldn't know but it seems 
plausible to me. - BH)

CYF URGES COMMUNITIES TO SPEAK UP
---------------------------------

Child Youth and Family is urging anyone who suspects children 
are being neglected in their neighbourhood to speak up. 
Central regional director Lynda Angus says while reporting of 
neglect has improved in general, sadly there are still cases 
like one in Porirua where three children were regularly seen 
by neighbours scavenging for food, but no one alerted 
authorities. The children's mother has been sentenced to eight 
months home detention after pleading guilty to three charges 
of cruelty to a child. Their stepfather is already in jail 
serving five and a half years for ill-treating them. Ms Angus 
says neighbours sometimes say they did not know who to tell, 
but that is no excuse. She says there are many professionals 
in the community who have made a commitment to pass on any 
such concerns to the right authorities, including GPs, nurses, 
teachers and police.

NO SIMPLE METHOD TO OFFSET STOCK EMISSIONS
------------------------------------------

The Government's proposed emissions trading scheme will impose 
significant costs on agriculture according to the latest 
National Bank Rural Report but establishing forests to offset 
farm carbon emissions is not straightforward. The report finds 
that sheep, beef and deer industries will be the hardest hit 
by the scheme. Kevin Wilson, the bank's rural economist, says 
there are no definitive answers about the economics of 
establishing a new forest to offset annual farm emissions and 
sell carbon credits. The report says carbon is a commodity 
with markets still developing, and the price can be very 
volatile. There is also a significant ongoing policy risk, 
both national and international. The report concludes that any 
decisions to change land use for carbon farming needs careful 
analysis to understand the very long term implications for the 
farm business.

COUNCIL DEFENDS GANG INITIATIVE
-------------------------------

Porirua's deputy mayor is standing by a council decision to 
spend up to $100,000 to help gang members back into work. The 
City Services Committee has voted to support the WINZ 
sponsored scheme which initially involves employing five 
Mongrel Mob members to clear scrub. Deputy mayor Litea Ah Hoi 
says while the initial workers do have gang affiliations, the 
scheme aims to help anyone into work who has been unemployed 
long term. She believes it is a positive way to engage with 
gang members. She says gang members are part of the community 
and the council's role is to look after the social wellbeing 
of the community.

Tuesday, 24 June 2008
~~~~~~~~~~~~~~~~~~~~~

AVERAGE RENT PRICE DROPS TO $295
--------------------------------

The national median rent level has dipped by $5 a week, to 
$295. The figure comes in the latest quarterly report on the 
residential rental market by Massey University's Real Estate 
Analysis Unit. Spokesman Bob Hargreaves says the drop is 
unexpected, given rents had been rising steadily last year and 
at the beginning of this year. He says the drop-off in the 
volume of house sales of around 50 percent compared to last 
year appears to reinforce renting as the better option.

RUSH ON TREATY SETTLEMENTS
--------------------------

National is casting a sceptical eye over a rush of Waitangi 
Treaty settlements being reached by the Government. A half 
billion dollar forestry settlement for North Island iwi is due 
to be signed tomorrow. National Leader John Key says it is 
happening now because Labour has had such a woeful record on 
treaty settlements over the past eight years under past Treaty 
Negotiation Ministers Margaret Wilson and Pete Hodgson. He 
says the current Minister, Michael Cullen, has been brought in 
to resolve issues and counter the growing popularity of the 
Maori Party. 
 
(So, the implication of the record being "woeful" is that 
insufficient were settled. Can the government  be 
simultaneously at fault for doing too many and too few? - BH)

ALUMINIUM UP, AND GOING HIGHER
------------------------------

The price of Aluminium rose to its highest level in more than 
three-months today. Expectations are for further gains as the 
market prices in rising energy costs. The price touched 
$US3,169 a tonne, a gain of about 25 percent since the 
beginning of this year. Prices are only about $US150 from the 
record high seen in May 2006.

WINE HARVEST A BUMPER YEAR
--------------------------

The dry weather has created a bumper year for the wine sector. 
Delegats Group has lifted its profit forecast by two million, 
to $18.5 million. That is due to a 45 per cent increase in 
this year's harvest. Business correspondent Roger Kerr says 
the yield was 20 percent more than expected. He says storage 
facilities were badly stretched over April and May, with 
poorer quality grapes having to be dumped to make room. 
Nationally the grape harvest was up 39 percent on the previous 
year.

ARC STRIKES RATES AT 4.95 PER CENT
----------------------------------

The Auckland Regional Council will spend more on public 
transport and take up a new role in regional tourism 
development, but it comes at a cost. The ARC's latest Annual 
Plan has been adopted. It results in an average 4.95 per cent 
rates increase. Chairman Michael Lee says the rates increase 
is similar to the past three years and reflects the annual 
increase signalled in the council's ten-year plan.

MYTH SURROUNDS FLU VACCINE
--------------------------

Health officials are wanting to debunk the popular myth you 
can catch the flu from the vaccine designed to guard against 
it. About 22 people die from influenza in New Zealand each 
year. Group Director Nicky Turner says people need to take the 
disease seriously, and make sure they have all the right 
information about being protected. She says one of the key 
myths is people believing they have caught the flu from the 
vaccine. Dr Turner says the vaccine is made up of protein, and 
has no live strains of the disease. The influenza vaccine is 
free for people over 65, and anyone with a long-term health 
condition. The National Influenza Strategy Group vaccination 
campaign ends on Monday.
 
(I got mine without ill-effect, but I have colleagues who 
swear they experienced flu-like symptoms within days of having 
the shot. - BH)

NEW INDEX QUANTIFIES COST OF ILLICIT DRUGS
------------------------------------------

A research company has come up with an index that quantifies 
the social cost of illicit drugs in New Zealand. Police asked 
Business and Economic Research Limited to develop the index, 
which has taken about six months. It calculates the total harm 
of illicit drug consumption for the 2005/06 year, and also 
calculates the harm or cost per kilogram for each type of 
drug. BERL economist Ganesh Nana says it allows police to 
measure the harm they have avoided each time they make a 
seizure of an illicit drug. He says it is not just the harm 
caused by the drug user themselves, but also caused by people 
associated with them, along with costs like medical treatment, 
road accidents and extra policing. The data shows the total 
harm of illicit drug consumption for the 2005/06 year was $1.3 
billion. 
 
(Such quantifications usually seem to contain so many 
assumptions that they are not useful to the understanding of 
the ordinary person - BH)

ANTI-SMACKING LEGISLATION WORKING
---------------------------------

The country's largest children's community organisation says 
new police data on the anti-smacking legislation should 
silence the critics. The review of the amendment to the Crimes 
Act, covered a six month period to April this year. In that 
time no one had been prosecuted for smacking, although three 
people had been prosecuted for "child assault." Barnardos 
chief executive Murray Edridge says the review clearly shows 
police are not picking on good parents. He says police and 
courts are exercising sensible judgement, and using their 
discretion under the law change.

Wednesday, 25 June 2008
~~~~~~~~~~~~~~~~~~~~~~~

BIOFUELS "NOT SOLVING CLIMATE OR FUEL CRISIS"
---------------------------------------------

Aid agency Oxfam has released an international report slamming 
biofuels, which it says are not solving the climate or fuel 
crisis. The "Another Inconvenient Truth" report says biofuels 
are adding to food shortages and inflation, hitting the 
poorest people hardest. Oxfam calculates rich country biofuel 
policies have dragged more than 30 million people into poverty 
and contributed up to 30 percent to the rise in global food 
prices. It says motorists using biofuels in New Zealand will 
see a sign at service stations saying it has been sourced from 
Indonesia, but that sign will not tell them that indigenous 
people have lost their home to a palm oil plantation.

DISTASTE AT LAB TESTS PROPOSAL
------------------------------

A proposal to force Auckland patients to pay for their own lab 
tests if they are referred from a private specialist is being 
met with distaste. The suggestion is part of a consultation 
exercise the region's three district health boards are 
considering. Southern Cross Healthcare Group chief executive 
Ian McPherson says it is an outrageous shift of costs from the 
public system to private patients. He says it would mean 
people who take out health insurance or pay for their own 
elective surgery and would be penalised. Mr McPherson says if 
the proposal goes ahead, insurance premiums will increase.

(This is already in force at Wellington and Lower Hutt, and is 
proposed for Otago. - BH)

CONTACT WITHDRAWS PROJECT HAYES APPEAL
--------------------------------------

Contact Energy has withdrawn its Environment Court appeal 
against Meridian Energy's Project Hayes windfarm in Otago. It 
was concerned transmission constraints in the lower South 
Island would restrict the amount of energy the two companies 
could send north. That could result in it spilling valuable 
water from its Clutha hydro stations. Meridian is welcoming 
the move. The two companies have agreed to join forced to push 
for the need for an upgraded transmission system with the 
Electricity Commission and Transpower.

TEARS FLOW AS HISTORIC TREATY DEAL SIGNED
-----------------------------------------

Maori wiped tears from their eyes at Parliament today as 
around half a billion dollars worth of forestry and assets was 
handed over to seven central North Island iwi. Treaty 
Negotiations Minister Michael Cullen told a packed Beehive 
Banquet Hall that it is a tragedy of the nation's history that 
the Crown failed to uphold its part of the bargain, since the 
Treaty of Waitangi was signed 160 years ago. He says it failed 
to deliver on its obligations of partnership and respect and 
failed to deliver equality and protect the rights of Maori. 
Prime Minister Helen Clark is commending the efforts made by 
those in reaching the agreement, saying she and her colleagues 
came into politics to address injustice and effect 
reconciliation. She is thanking Maori for walking the path 
with them to reach today's historic settlement.

NATS MAKE SUPER PLEDGE TO ELDERLY
---------------------------------

National is making a commitment to the retired that 
superannuation will keep up with the cost of living. Leader 
John Key made the pledge in a speech to Grey Power members in 
Upper Hutt today. He says National is absolutely committed to 
maintaining national superannuation payments at a minimum of 
66 percent of the average wage. Mr Key says he puts his name 
behind the assurance, promising his party is looking to 
improve the financial situation of elderly New Zealanders.

(Short of some unexpected scandal, I would be astonished if 
this is not the next PM. This should not be read as an 
endorsement. Rather, it is a statement of my belief that 
Labour have irretrievably lost a huge amount of public support 
- BH)

BUSINESSES EXPECT TOUGHER TIMES
-------------------------------

The majority of Auckland companies believe their business 
situation will deteriorate further. The latest Auckland 
Chamber of Commerce survey shows 70 percent of them expect 
costs to continue to rise and only 34 percent believe they 
will be able to increase prices. Almost half of them expect 
profits to decline. Chamber chief executive Michael Barnett 
says firms are pinning improved fortunes on an early interest 
rate drop, something that is obviously out of their control.

SUPPRESSION ORDERS STIFLE CRITICAL REPORT
-----------------------------------------

The Government wants to release a report into the death of a 
20-year-old woman who was killed in a car crash by a man on 
parole. The report is expected to criticise police, 
corrections and probation staff for enabling the man to be on 
the loose at the time of the crash. Suppression orders prevent 
any names being made public. A spokeswoman for State Services 
Minister David Parker says the minister received the report in 
December last year. She says he wants to release the report in 
the fullest form possible, but the suppression orders mean he 
cannot. The spokeswoman says Crown Law is seeking a High Court 
hearing date to have the suppression orders reviewed.

(It all came tumbling out the following week - BH)

ANOTHER FUEL TAX FOR AUCKLAND
-----------------------------

The Auckland Regional Council is hopeful it can introduce a 
regional fuel tax by July next year. Chairman Mike Lee says 
public submissions on the proposal closed in May and more than 
two-thirds support a tax, if it goes towards the 
electrification of Auckland's rail network. He says the 
council has to wait for Parliament to pass enabling 
legislation, which is before the House. Mr Lee says ARC has 
fulfilled its part of the agreement, because it has asked 
Auckland if it wants the tax and Auckland has said yes.

NESTLE SELLS TO FONTERRA
------------------------

Nestle has sold its yoghurt and dairy dessert business to 
Fonterra. The agreement becomes effective on September the 
1st. Under the agreement, Fonterra will also acquire the long-
term rights to manufacture, market and sell Nestle yoghurt and 
dairy dessert brands in Australia alongside its existing 
brands, creating a new competitive presence.

PETROL TAX FOR TRANSMISSION GULLY
---------------------------------

A further petrol tax or road toll is being touted as the best 
way to make up the funding shortfall for Transmission Gully. 
Transport Minister Annette King has announced planning for the 
controversial road, which is expected to cost just over a 
billion dollars, can now move to the next stage. The 
government has already committed 405 million dollars to the 
project, which will re-route parts of State Highway 1 inland, 
but the onus is now on the region's authorities to pick up the 
shortfall. Lower Hutt mayor David Ogden says at a time of 
increasing fuel prices, another petrol tax may not be popular 
with the public, but five cents is a drop in the bucket.

Thursday, 26 June 2008
~~~~~~~~~~~~~~~~~~~~~~ 

IMMIGRATION SERVICE FEELING THE STRAIN
--------------------------------------

The Immigration Service admits it is feeling the strain. Along 
with the Department of Labour, it is currently subject to four 
separate official enquiries relating to the Mary-Anne Thompson 
affair. Department of Labour chief executive Christopher Blake 
says the inquiries are having an impact on operations. He says 
the reviews are unsettling for staff, as the overwhelming 
majority do an excellent job. Mr Blake says none of the 
department's managers are happy about the lapses that have 
occurred.

ACC TO INCREASE VEHICLE LEVY
----------------------------

Petrol prices could again be on the rise, but this time the 
cause is a little closer to home. The Accident Compensation 
Corporation is expecting the average cost of treating a person 
injured in a car crash to increase by almost $10,000 this 
year. So it is increasing its levy across all vehicles from 
Tuesday next week. Fuel companies say they will have to pass 
on the increase, which is just over 2c a litre, plus GST.

SIX MONTHS VISA-FREE IN UK TO REMAIN
------------------------------------

New Zealanders will continue to have six months of visa-free 
access to the UK. The British Home Office announced the move 
overnight. Prime Minister Helen Clark says it follows 
extensive consultation, after Britain announced a review of 
its immigration policy which could have seen New Zealand's 
visa free period cut to three months. She raised the issue 
personally with British Prime Minister Gordon Brown and there 
has been intense lobbying to the Home Office by our High 
Commission in London.

(Apparently there is a special provision for academics. While 
I think this is a good thing, I am intrigued that it exists  - 
BH)

NEW RULES FOR SECURITY INDUSTRY
-------------------------------

New laws are being drafted for the security industry. 
Associate Justice Minister Clayton Cosgrove says there are 
several main areas of reform planned. They include extending 
licensing requirements to cover bouncers, bodyguards, and 
private security staff. The legislation will also require 
private security staff to undertake training if they are 
involved in guarding property or persons, or keeping order. Mr 
Cosgrove says a dedicated enforcement body would also be 
established to ensure the sector complies with the new 
regulations.

NELSON GETS HUGE RATES INCREASE
-------------------------------

One of the country's single largest rates increases has 
formally been cemented in this morning. The Nelson City 
Council has adopted its annual plan for the coming financial 
year, along with an 11.95 percent rates hike. The rates rise 
is an average of around $200 a year, or a little over $4 a 
week. A group of about 30 Grey Power and Nelson Residents 
Association members, some carrying protest placards, sat 
silently in the public gallery of the council chamber as the 
increase was confirmed by councillors - 11 votes to one.

CONSUMER CONFIDENCE TAKES NOSE-DIVE
-----------------------------------

It may not come as much of a surprise that consumer confidence 
has taken a nose-dive to a 17 year low. The Westpac-McDermott 
Miller consumer confidence index fell 15 points in the June 
quarter to 81 percent. That is its lowest level since the 1991 
recession. Westpac senior economist Donna Purdue says the high 
cost of living is playing a key role, but she says it is not 
all bad news, with Fonterra announcing a much better than 
expected dairy payout for the 2007/8 season. 
 
(There is a certain degree of self-fulfilment in this 
prophecy. Every time they tell us that we are more 
pessimistic, we tend to believe them. Guess what happens next 
time they ask us! - BH)

NO KIWISAVER TO MORTGAGE DIVERSION JUST YET
-------------------------------------------

Banks will not take applications from people wanting to divert 
part of their Kiwisaver contribution to their mortgage, for at 
least another month. As of July 1st, those who have been in 
Kiwisaver for 12 months can apply to have part of their 
contribution diverted to a conventional loan to help reduce 
their debt. But the legislation excludes all loans with a 
revolving credit facility, where consumers can add to and take 
away from the debt at their leisure, which some people have 
attached to their mortgages. Bank Association spokesman Alan 
Yates says banks are holding off while Inland Revenue revises 
the wording of the legislation.

BONUS FOR UNION WORKERS ONLY
----------------------------

National claims Ministry of Social Development workers who are 
not with a union are missing out on bonuses those affiliated 
with a union are getting. MP Judith Collins says she has been 
told by a staff member that union members are receiving a 750 
dollar bonus this year and other workers are receiving 
nothing. Mrs Collins says most people would expect bonuses to 
be paid to an employee for performance, not for joining a 
union. Judith Collins says the bonus to union members also 
appears to coincide with election year, as similar bonuses 
have been paid out in 2002 and 2005. Social Development 
Minister Ruth Dyson says the matter is up to the Ministry's 
chief executive.

(The other point of view - not necessarily mine - is that the 
non-union members should not expect benefits negotiated by the 
unions on behalf of their dues paying members - BH)

NO STATE HOUSING FOR GANGS
--------------------------

New Zealand First wants gang members living in state houses to 
be booted out, and those on waiting lists to be struck off. 
Housing New Zealand is investigating complaints from some 
tenants that gang members are living in state houses and 
causing trouble for their neighbours. MP Pita Paraone says it 
is just not on. He says gang members are the type of people 
who should not be encouraged to occupy state assets.

JOHN KEY'S COMMENTS INSULTING TO MAORI
--------------------------------------

Comments by John Key which appear to ignore the Maori land 
wars of the 19th century are infuriating Maori. Just hours 
after the signing of the country's largest ever treaty 
settlement, the National leader said that New Zealand's a 
country that has come together peacefully. Maori Affairs 
Minister Parekura Horomia says the comments are beyond naive, 
given the events of the 19th century with land wars, 
confiscation and deaths. He finds them unbelievable. Parekura 
Horomia says it is insulting for the comments to be made on 
such a significant day for Maori.

(To be honest, I think other politicians are gleefully leaping 
on a cynical media beat-up. I am not part of Mr Key's natural 
support base, but anyone who can read for more than three 
consecutive sentences understood that Mr Key was saying that 
the treaty came about without war or conquest. The fact that 
warfare erupted afterwards is undeniable, but that is not what 
he was talking about. - BH)

Friday, 27 June 2008
~~~~~~~~~~~~~~~~~~~~

COMMISSIONER COULD OVERSEE MARITIME ZONE
----------------------------------------

The Government says proposals aimed at regulating activities 
in the maritime exclusive economic zone are a positive move. 
Legislation is being drafted that will set up a consents 
regime to manage activities such as seabed mining, marine 
farming, power generation, and carbon capture and storage. 
Environment Minister Trevor Mallard says creating a 
commissioner to manage the regime is also proposed. He says it 
might well slow down some organisations who are relying on 
doing damage to New Zealand's ecosytem, as well as charging 
them for a consent process.

WAREHOUSE DOWNGRADES EARNINGS FORECAST
--------------------------------------

The Warehouse Group has downgraded its expected after-tax 
earnings by approximately 10 percent. It is now predicting 
between $84 million and $88 million for the year ending July, 
including reversal of warranty provisions of $7.2 million. The 
previous range was $94 million to $98 million. The Warehouse 
Group says the key contributing factor to the revision has 
been a marked downturn in consumer spending since the latter 
part of May. It says it has significantly reduced the 
company's sales and margin expectations for the remainder of 
this financial year.

ENGLISH UNSURPRISED AT DROP IN ECONOMIC GROWTH
----------------------------------------------

National is not surprised at latest figures showing negative 
economic growth. Data released today shows GDP fell 0.3 
percent in the March quarter National's finance spokesman Bill 
English says the numbers were expected as households have been 
hurting and businesses struggling. He says most people know 
the economy is at a standstill and is probably going 
backwards. Mr English believes the economy is pretty resilient 
but says the task is now to do the things needed to get the 
nation through the downturn and back on a growth path.

GDP FIGURES SHOW SHRINKING ECONOMY
----------------------------------

Confirmation the economy has shrunk and household spending is 
down. Statistics New Zealand has released GDP figures for the 
March quarter showing economic activity fell 0.3 percent. It 
follows a rise of just 0.8 percent in the December quarter. 
Spending by New Zealand households was down 0.4 percent. 
Drought in many parts of the country is being blamed for a 5.6 
percent drop in agricultural activity. This latest result 
means the economy grew three percent in the year ending March.

PROPOSED TERTIARY FEE LEVEL CAP 2.6 PERCENT IN 2009
---------------------------------------------------

The Government has proposed tertiary fee cap levels for 2009. 
The fee maxima rates set a maximum level at which 
universities, polytechnics, and other tertiary education 
providers are able to raise student fees. Tertiary Education 
Minister Pete Hodgson says next year's fee maxima is set to be 
2.6 percent. The figure will be finalised after sector 
consultation concludes next month.

(The squeeze on university budgets is astonishing. Extra money 
has to come from somewhere if we are to simply stand still. - 
BH)

CONTACT CONFIDENT ABOUT WIND FARM
---------------------------------

Contact Energy is confident it will get the green light to 
build a massive wind farm. The listed company has applied to 
Environment Waikato to build a $2 billion wind farm on 17,000 
hectares of isolated farmland south of Port Waikato. The 218 
turbines will stand 150m high. Jonathan Hill, Contact 
spokesman, says the Resource Management Act can make the 
application process lengthy but he is confident it will be 
approved and the project can be completed by 2015. He says 
there has never been a better time to build a wind farm, given 
low water levels in the hydro lakes. The project will be able 
to produce enough power for 250,000 homes.

BUDGET CARRIER FORCED TO RAISE FARES
------------------------------------

Pacific Blue says the continuing rise in jet fuel prices has 
forced it to increase fares. Prices are rising by around two 
percent on many of the company's international routes and by 
one percent on some domestic flights, but other domestic fares 
will actually drop as part of a fare review. Pacific Blue's 
Commercial General Manager, Adrian Hamilton-Manns, says 
because the airline is low-cost, the company is making the 
move reluctantly. He says such increases are a commercial 
reality, with jet fuel now costing $US165 a barrel compared to 
$US90 a year ago.

KUMARA PRICES RILE GREENS
-------------------------

The Green Party wants the Commerce Commission to investigate 
grocery prices. The Greens say they have received information 
from a supermarket industry insider showing that in April, 
consumers were being charged a mark up of 195 percent on the 
price of kumara and 286 percent on pumpkin. Green MP Sue 
Kedgley questions whether Foodstuffs and Progressive 
Enterprises are monopolising their market position with high 
prices. She says the companies control about 95 percent of the 
market and the time has come for them to open their books to 
the public and prove they are not monopolising the market with 
high prices.

Monday, 30 June 2008
~~~~~~~~~~~~~~~~~~~~

NATS WANT THE EMPHASIS ON SPORT
-------------------------------

National wants funding for anti-obesity programmes to be 
redirected into getting children into sport. Leader John Key 
has released the party's policy on children and sport, an 
issue he says is a priority. Mr Key says schoolchildren could 
do with a bit more sport in their lives, and he is concerned 
at the number of overlapping Government programmes aimed at 
encouraging people to eat healthier and exercise more. He says 
a National Government would bring re-prioritise Government 
funds currently dedicated to a host of "bureaucratic" anti-
obesity campaigns.

BUILDING CONSENTS DIVE
----------------------

The number of consents sought for building new houses has 
taken another dive. Statistics show there were 1,653 new 
housing units authorised in May, down 669 from the same time 
last year. It is a decline of almost a third. Statistics New 
Zealand spokeswoman Kathy Connolly says it is a nationwide 
trend, with only three out of 16 regions showing an increase 
in building consents. She says building consent numbers are 
quite volatile so it is not uncommon to see large movements, 
but a drop of a third is reasonably high.

MAJOR SHAKE-UP LOOMING IN MEAT INDUSTRY
---------------------------------------

A $220 million deal has been proposed between two major 
players in the meat industry. Rural services company PGG 
Wrightson wants to buy a 50 percent share in Silver Fern 
Farms, which was formerly known as PPCS. The companies say 
they would work together to lift the earnings of New Zealand 
meat producers. They say the partnership would create an 
integrated supply chain "from plate to pasture," with every 
stage geared to meeting the needs of meat consumers around the 
world. The companies say their relevant parts would work 
together on a complementary basis. PGG Wrightson would provide 
access to advisory and other services inside the farm gate, 
and procurement for prime and store stock. Silver Fern Farms 
would provide its processing capacity, technology and 
expertise in logistics, marketing and branding. The deal is 
subject to a number of proposals.

FLEXI HOURS COME INTO FORCE TOMORROW
------------------------------------

New legislation comes into force tomorrow, giving employees 
with dependents the right to flexible working hours. The bill 
was drafted by Green MP Sue Kedgley, who hopes the new 
employment right will see flexible working arrangements become 
a legitimate and productive working arrangement as opposed to 
being viewed as a favour. Ms Kedgley says similar changes in 
Britain led to a culture change and she hopes the same will 
happen in New Zealand. 
 
(As far as I can see, this legislation is surrounded by so 
many ifs and buts that it is almost toothless. - BH)

NEW FACILITY OFFERS MORE RECYCLING
----------------------------------

Auckland now has the most advanced recycling centre in the 
Southern Hemisphere* as a new materials recovery facility 
opens in Onehunga today. Using an array of screening 
techniques and optical sorting devices to separate recyclable 
materials, the centre is capable of sorting up to 80,000 
tonnes of recycling every year, allowing people in Auckland 
and Manukau to put a wider range of recyclable products into 
wheelie bins. It is hoped recycling can increase by 25 
percent.

(The most/biggest/best/fastest **** in the Southern hemisphere 
is a claim that should always be distrusted. It usually means 
that we asked in Melbourne and Sydney, and if we did unusually 
thorough research, we asked about Adelaide and Perth. I would 
usually guarantee that no inquiries were made in the great 
cities of Sao Paulo, Santiago, Lima, Buenos Aires, Rio de 
Janeiro ... I cringe at the cultural insecurity to prompts such 
fatuous claims, even in the few cases where they are true - 
BH)

Tuesday, 1 June 2008
~~~~~~~~~~~~~~~~~~~~

PAY RISES COME INTO EFFECT FOR TEACHERS
---------------------------------------

Thousands of teachers are receiving pay rises from today. It 
follows the successful settlement of a number of collective 
agreements last year. The agreements, which were among the 
largest ever set of pay deals in the education sector, were 
negotiated by the education union NZEI Te Riu Roa. They impact 
more than 30,000 kindergarten, primary teachers and principals 
and deliver a four percent annual pay increase for up to three 
years, depending on the agreement expiry date for each group. 
Many early childhood teachers, as well as non-teaching early 
childhood staff, will also be receiving increases. The four 
percent increase will bring the starting salary for a 
beginning primary school teacher for example, to $42,642.

FOOD AD RESTRICTIONS BEING PHASED IN
------------------------------------

A system restricting some food ads during children's 
television shows is being phased in from today. The Children's 
Food Classification System has been developed by the 
Television Broadcasters' Council, which represents the major 
free-to-air broadcasters. The classification system is based 
on the one used for the catering of food in schools and 
applies during programming hours aimed at children aged five 
to 13. The initiative consolidates an agreement made between 
broadcasters and the Government last year.

DHBS BREACHED GOOD FAITH IN JUNIOR DOCTOR TALKS
-----------------------------------------------

District Health Boards have been found to have breached their 
good faith obligations in talks with junior doctors. The 
Employment Relations Authority has ruled the DHBs should have 
provided information to substantiate their claim junior 
doctors were being offered a deal consistent with the one 
senior doctors were offered. Junior doctors began negotiating 
with DHBs in June last year. The authority has ordered the 
boards to supply the requested information to an independent 
reviewer within 21 days.

KIWISAVER EXCEEDS EXPECTATIONS IN 1ST YEAR
------------------------------------------

More than 700,000 people have now signed up to the 
Government's KiwiSaver scheme. The savings programme turns a 
year old today and the Government is celebrating the sign up 
rate, which has been far greater than first anticipated. 
Finance Minister Michael Cullen says latest figures have 
718,000 people using KiwiSaver, well ahead of the 275,000 that 
had been forecast. He says on average 1,969 people joined 
KiwiSaver each day in its first year.

MAP SHOWS NZ'S MOST DEPRIVED AREAS
----------------------------------

A map showing New Zealand's socioeconomic landscape has been 
released by the Ministry of Health. The Atlas of Socioeconomic 
Development in New Zealand shows the differences between the 
21 District Health Boards. It shows parts of the Bay of 
Plenty, East Coast and Northland are the most deprived. In the 
South Island, parts of the West Coast are the most deprived. 
Health and Disability Systems Strategy deputy director-general 
Deborah Roche says the deprivation scale is determined by 
variables like income, family support, employment and 
transport. She says the map is used to monitor inequalities 
and to determine funding formulas for DHBs.

LINK BETWEEN MENTAL HEALTH AND OBESITY
--------------------------------------

A New Zealand study has found a link between anxiety disorders 
and obesity. The research from Otago University in Wellington 
involved nearly 13,000 New Zealanders. Lead investigator Dr 
Kate Scott says people with obesity are more likely to have 
certain mental disorders. Dr Scott says research into 
emotional eating could explain the nature of the link. She 
says people eat in response to negative emotional cues like 
depression or anxiety, rather than eating because they are 
hungry. Dr Scott says if people are eating in response to 
emotions, it is likely to lead to weight gain.

USE POSTCODES OR MISS OUT ON DISCOUNTS
--------------------------------------

As of today, New Zealand Post business customers have to use 
postcodes if they want high-volume discounts. The two-year 
transition period is over and businesses that do not fully and 
correctly address their mail will pay significantly more to 
have it delivered. New Zealand Post CEO Peter Fenton says 
around 20 percent of mail is incorrectly addressed. He says 
working with business customers to ensure correct addressing, 
means they can take costs out of their process and ensure 
accurate and reliable delivery.

PARTNERSHIP PROPOSAL OVER TO SHAREHOLDERS
-----------------------------------------

Meat and Wool New Zealand believes farmers should own more 
assets in the meat industry. PGG Wrightson wants a 50 percent 
stake in Silver Fern Farms, formerly known as PPCS, in a deal 
worth $220 million. Silver Ferns Farms is a Dunedin 
cooperative with 9,000 farmer suppliers. Mike Petersen, Meat 
and Wool NZ chairman, welcomes the move to restructure the 
industry, but says the final shape of the deal lies with 
farmers. He says there is no doubt such a type of ownership is 
starting to become commonplace in the industry and may be the 
way of the future. Mr Petersen says it is not up to him to 
make recommendations about the proposal, as it is now a 
company and shareholder issue. The scheme needs approval from 
75 percent of shareholders. He is dismissing claims the price 
of meat in New Zealand will skyrocket because of any deal. He 
says New Zealand consumers pay the price set by international 
markets and the price locally would only rise if there was an 
increase in the cost of meat overseas.

OFFICIAL RAIL HANDOVER TODAY
----------------------------

The country's rail operations are now back in the Government's 
hands. The $665 million takeover of Toll Holdings' rail and 
Cook Strait ferry operations came into effect at midnight. It 
is the first time the Government has controlled the rail 
operations since the National government privatised the 
business in 1993. National has attacked the rail buy-back, 
claiming the true cost of the deal might actually be closer to 
$1 billion. The handover will be officially marked by Prime 
Minister Helen Clark and Finance Minister Michael Cullen at a 
ceremony at the Wellington Railway Station this morning. They 
will announce the governance and management structure of the 
rail operation, with former Prime Minister Jim Bolger widely 
tipped for the role of chairman.

Wednesday, 2 June 2008
~~~~~~~~~~~~~~~~~~~~~~

COMMERCE COMMISSION REVISES GUIDELINES
--------------------------------------

The Commerce Commission is revising the guidelines for 
business acquisitions and takeovers. It wants to speed up the 
process and improve business certainty for companies seeking 
clearance. Commission spokeswoman Paula Rebstock says mergers 
play an important role in the market and can benefit the 
economy. But she says some mergers might have anti-competitive 
effects. One of the high profile mergers is the battle for the 
takeover of The Warehouse by Woolworths and Foodstuffs. The 
commission says the move will lessen competition, but the two 
supermarket chains are challenging the decision which is now 
before the Court of Appeal in Wellington.

GANG MEMBERS "BECOMING HARDER TO TRACK DOWN"
--------------------------------------------

Police bosses have fronted up to a Parliamentary select 
committee and admitted they need to become more sophisticated 
to crack down on gangs. Deputy Commissioner Rob Pope has tried 
to clear up recent confusion about the number of gang members 
in New Zealand, at the Law and Order Select Committee. He says 
police believe there are up to 3,000 gang members in the 
community, but they are becoming harder to track down. Mr Pope 
says gang members are not putting their hands up to be 
arrested, so police need to be more sophisticated with their 
investigation techniques. The select committee appearance 
comes after The Organised Crime Bill passed its first reading 
in Parliament last night. The legislation would double the 
jail term for those convicted of being part of an organised 
crime group. Police bosses have also been grilled on the 
recent spate of killings and violence in South Auckland, with 
particular focus on the fatal shooting of Manurewa liquor 
store owner Navtej Singh. National MP Chester Borrows says the 
ethnic community is worried about the violence and robberies, 
with many choosing not to report criminal activity. He says 
they feel police do not respond to the ethnic community the 
way that they should, or could. But Mr Pope says police are 
working with the more than 200 ethnic communities in South 
Auckland. He says police are trying to ensure they provide the 
appropriate engagement with them.

DEFENCE FORCE LAUNCHES DOUBLE DIPPING INQUIRY
---------------------------------------------

The Chief of the Defence Force has called for an inquiry into 
why officers have been double dipping into housing allowances. 
Lieutenant General Jerry Mateparae has convened a Court of 
Inquiry to find out why Defence Force allowances were being 
paid to officers who are also receiving an allowance from the 
United Nations. He says he wants to determine how the 
situation came about and ensure the force is complying with UN 
rules. The court has been directed to find out whether defence 
force practice was in breach of UN rules, whether officers 
knew that, and if so why they continued with that policy.

HUGE BENEFITS FROM ADULT EDUCATION
----------------------------------

Adult and Community Education is good for the economy, 
according to research by business advisory firm 
PricewaterhouseCoopers. Almost half a million New Zealanders 
take part in community-based informal education every year. 
The report says the estimated economic benefit to the country 
is between $4.8 billion and $6.3 billion and is due to the 
fact that most learners have a lower socio-economic profile, 
so there is greater added value in investing in them. Margie 
Scotts CEO of Adult and Community Education says adult 
education is likely to have one of the highest added values of 
any community activity, because it focuses on improving 
people's productivity. She says for every dollar the 
Government puts in, it gets between $16 and $22 in return. The 
report found that 409,000 people take part in adult education 
each year. In the year ended June 2008, the Government put $66 
million into the sector.

REPORT FINDS ONTRACK HAS WORK TO DO
-----------------------------------

The company responsible for managing the country's rail 
network has some work to do according to the Auditor-General. 
Kevin Brady has released a report into how Ontrack is 
maintaining and renewing the rail network. He has found the 
organisation has significantly more work to do as its systems, 
plans, policies, and procedures are not complete, connected, 
or able to be used together when needed. In addition, Mr Brady 
says there is not enough information to form a clear picture 
of the state of the network and until there is, it will be 
difficult to determine effective management options and their 
likely costs. Finance Minister Michael Cullen says Ontrack is 
responding to the issues raised and accepts it has work to do. 
He believes Ontrack's problems are due to a lack of asset 
planning in the past, before the Government bought the rail 
network back. National's transport spokesman Maurice 
Williamson says the findings are a damning indictment of the 
way Ontrack is being run. He says if he was a member of its 
board he would be tendering his resignation. Mr Williamson 
says the Auditor-General's report also leaves huge question 
marks over the Crown's ability to operate the newly reacquired 
rail fleet.

DESPITE EARNING MORE WORKERS NERVOUS
------------------------------------

Workers are nervous about their future employment amid rising 
costs, but are still upbeat about their income. The latest 
Westpac McDermott Miller employment confidence index has 
fallen eight points to 120.8 in the June quarter. It is the 
biggest drop in the four years the survey has been running. An 
index above 100 indicates there are more optimists than 
pessimists and a number below 100 indicates more pessimists 
than optimists. Economist Donna Purdue says the labour market, 
which has been the pillar of the economy, is vulnerable to the 
economic downturn and many are concerned it will deteriorate 
over the next year. Ms Purdue says despite the poll's results, 
people are earning more now than they were are year ago, so 
remain optimistic about their salaries.

Thursday, 3 June 2008
~~~~~~~~~~~~~~~~~~~~~

FUEL TAX LEGISLATION PASSES
---------------------------

New legislation allowing regional fuel taxes has been passed 
by Parliament. The Land Transport Management Amendment Bill 
also merges the offices of Land Transport New Zealand, the 
director of Land Transport, and Transit New Zealand into a 
single crown entity. The bill passed by 70 votes to 51 with 
National, ACT, and Gordon Copeland opposing the legislation.

AIR NZ INCREASING FARES AGAIN
-----------------------------

Air New Zealand airfares are rising again. The increase will 
take place from the July 17 in response to continued high jet 
fuel prices. Airfares sold in New Zealand for Tasman and 
domestic flights will rise by an average three percent while 
fares to North America, Asia and United Kingdom will rise by 
an average five percent. Deputy CEO Norm Thompson says with 
jet fuel now above $US170 a barrel, the airline cannot 
continue to absorb the significantly higher cost of fuel. He 
says the increase will only partially recover those costs.

UNIVERSITY PLANNED FOR MANUKAU
------------------------------

Plans to build a university campus in Manukau have been 
confirmed. Prime Minister Helen Clark and Tertiary Education 
Minister Pete Hodgson have announced the Government will give 
Auckland University of Technology a $25 million cash injection 
to develop the campus, at the old Carter Holt Harvey 
headquarters near Rainbow's End. The Prime Minister says 
Counties Manukau is home to New Zealand's largest and fastest 
growing population of under-25s. She says the campus will help 
ensure they get every opportunity to realise their career 
aspirations.

COMMUNICATION THE KEY TO RELATIONSHIPS
--------------------------------------

She nags and he does not listen. Those age-old complaints have 
come through in a survey by Relationship Services which shows 
78 percent of couples experience some form of ongoing 
disagreement. Spokeswoman Hillary Smith says the same topics 
seem to occur again and again and include money and financial 
security, housework, or time pressures. She says some people 
react to arguments by becoming curt or heated which often 
leaves the issue unresolved. Ms Smith says it is important to 
maintain a relationship by keeping to talk and staying 
connected.

BROADBAND MEETING IN ROTORUA
----------------------------

The spread of broadband to rural New Zealand is being 
discussed in Rotorua today. The Telecommunications Users 
Association is holding a two day symposium on how to make the 
vision happen. TUANZ CEO Ernie Newman says broadband will 
probably start to be laid in rural areas within the next 
couple of years as it is at last being seen as a significant 
economic change that can be brought to farmers. He says the 
Government has recently announced a $75 million rural 
broadband fund to help the cause.

Friday, 4 June 2008
~~~~~~~~~~~~~~~~~~~

UNIVERSAL STUDENT ALLOWANCE "SMART BANKING"
-------------------------------------------

Student leaders are adamant the allocation of allowances 
should not be judged on parents' income. The New Zealand Union 
of Students Associations has launched a campaign promoting 
independence from debt by increasing access to student 
support. Co-president Paul Falloon says student debt is 
increasing by one billion dollars each year, which is totally 
unsustainable. He says a universal student allowance is smart 
banking and an investment in New Zealand's future. Mr Falloon 
says the Government must take action now to prevent more 
students heading offshore.

ARC WELCOMING FUEL TAX LAWS
---------------------------

New legislation allowing regional fuel taxes will not be 
welcomed by motorists, but has pleased authorities in 
Auckland. The law was passed last night and Auckland Regional 
Council chairman Mike Lee says it means the region can finally 
have an electric rail system. He is congratulating politicians 
for making the decision at a time when petrol prices are 
already sky high. He says the five cent increase will be 
gradual, with the first cent being added to a litre of petrol 
next July. Mr Lee says the aim is to have the tax fully 
implemented by the 2011 Rugby World Cup.

TEACHERS PLEASED WITH ANTI-BULLYING INITIATIVE
----------------------------------------------

The Government's new anti-bullying initiatives are getting a 
pass mark from the primary teachers union. Schools will be 
required to put in place programmes to cope with bullying and 
students will be given resource cards listing ways they can 
deal with situations and keep themselves safe. A new website 
called 'Team Up' also offers advice for children and schools. 
NZEI national president Frances Nelson says the Government has 
acknowledged just how serious bullying is. She says the cards 
in particular are a great idea, as children often forget what 
resources are available to them. Ms Nelson says parents and 
the wider community have a huge role to play in identifying 
bullying and the new initiatives recognise that.

TRUCKIES ON THE MOVE
--------------------

The first of the truckers involved in this morning's 
nationwide protest are beginning to arrive into city centres. 
The drivers are protesting about the unexpected rise in road 
user charges for diesel vehicles and thousands of rigs from 
Dargaville to Southland are taking part. Around a dozen trucks 
have already arrived in the CBD in Auckland and are lining 
Queen St from Karangahape Rd to the Town Hall. Roads in the 
region were busy early this morning as commuters took heed of 
warnings to leave home in plenty of time, but wet weather 
caused a number of minor crashes on the motorways, causing 
delays. At least three crashes have been recorded on the 
Southern Motorway and one on the North Western. Taranaki 
truckies are taking a different approach to the protest. 
Spokesman Tom Cloke says the drivers want to minimise 
disruption to motorists, and rather than blocking traffic, 
they are holding a go-slow by reducing their speed. In the 
Wellington region, Inspector Simon Perry says motorists should 
expect delays of at least 90 minutes. In Christchurch, 
truckers are gathering in Kaiapoi in the north and at the 
Riccarton Race Course as they prepare their convoy into the 
city. Dunedin police are out in force. Around 35 extra 
officers are on duty and will try to divert traffic away from 
the protest route.

GROUP WANTS MORE MONEY FOR POOR FAMILIES
----------------------------------------

A child lobby group wants the Government to provide an extra 
$60 a week for poor families. Latest figures from the Ministry 
of Social Development show the poverty rate has fallen from 17 
percent in 2004 to 13 percent in 2007. But Mike O'Brien from 
the Child Poverty Action Group says more than 160,000 children 
are living in poverty and their plight is getting a lot worse. 
He says it is unfair that families on benefits are not 
entitled to the Working for Families subsidises and is 
demanding the Government gives all low income families more 
money each week. Mr O'Brien says the much talked about 
recession is going to cause even more hardship to low income 
families.

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