WYSIWYG NEWS, 27 July, 2008

[news at wysiwygnews.com]

Subject: 27 July, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

Under threat of the worst storm to hit NZ in a decade, Mary 
and I set out to do one of our regular day returns to 
Wanganui. The day was grey to begin with and the deep low 
advancing on New Zealand from the North East was still a way 
off as we left Lower Hutt in the damp chill of a mid winter 
morning. Perhaps the publicity surrounding the imminent storm 
deterred other travellers, but for whatever reason, the roads 
were much less crowded than usual. We took the Haywards hill 
option and travelled carefully along Gray's Road as it 
followed the Northern curves of the Pauatahanui inlet, all too 
aware of how easy it would be to take a curve too fast and 
wind up having to be rescued from the mud flats at the edge of 
the road. Even the birds seemed aware of the bad weather on 
its way, and there were few of the customary seabirds wading 
in the shallows as we passed. Joining SH1 at Plimmerton, we 
continued to enjoy light traffic up through Pukerua Bay and 
down along the coast to Centennial Highway. The sea was a flat 
gunmetal colour, with no great force to it as it slid up and 
retreated from the rocky foreshore. Kapiti Island was there, 
dark and brooding, but low cloud prevented any view of the 
South Island. Paekakariki seemed to be still asleep as we 
passed and soon we were swinging up over the new overbridge at 
McKay's crossing, and down towards Raumati and Paraparaumu. 
Not until we reached Otaki was there any sign of New Zealand 
going about its Saturday morning business, but still the 
traffic was light. Further up the road, Levin has a new open 
area, now that a long standing wooden fence has been removed. 
Regrettably, after all this time, the great new surprise is ... 
a supermarket car park. I have to concede that it has been 
nicely executed, and  is delineated with the beautifully made 
rock walls that seem to have been adopted as a theme by the 
town. Out the other side and past the turnoff to Waitarere 
Beach, passed Poroutawhao, and onto the Whirokino trestle, 
where the broad flood channel was looking decidedly wet, 
though the Manawatu River was still within its banks. Foxton, 
at least as seen from the main road, was not yet awake as we 
passed. All of the Foxton Straights seemed empty and away to 
the north against the grey sky was a splash of white. Not 
until we were nearly at Sanson did I realise that we were 
seeing mighty Ruapehu in its magnificent full length winter 
coat, but partly shrouded with a  mantle of grey cloud on its 
Eastern slopes. We paused at Bulls for a cup of very good 
coffee and a nice freshly made muffin at the "Mothered Goose" 
café, and then continued on. As we got up onto the plateau 
above Bulls, the cloud had completely obliterated the view of 
the mountain, and no trace was seen of Taranaki either. 
Through Turakina, and up the long hill beyond, we used a 
passing lane to get past two big rigs travelling in close 
company. Through rich looking farm country, past the turn off 
to Ratana, we came down into Whangaehu and climbed out of that 
valley in its turn. A little drizzle marred the ease of the 
journey thus far, but since there were few other vehicles on 
the road, it was little problem. Soon we were in Wanganui (yet 
again). Mary's parents are doing well, and my own mother is 
a cause for concern! 

Last week I made a request of any readers in Melbourne or 
Brisbane. Several people pointed out that in this 
technological age, I didn't have to be in the same room as my 
research participants, so if you in Melbourne or Brisbane, or 
if you are anywhere else and are Skype capable, and if you fit 
my criteria, I need your help. 

If you are one of those people who has some autonomy in your 
work, and you have the freedom to work away from the office, 
at home or elsewhere, with the aid of technology such as 
laptops or cellphones, then I would love the opportunity to 
interview you for the purposes of my research. Equally, if you 
are someone who is the manager of such people, I would be 
delighted to hear from you. I should say up front that my 
research method is based upon narrative analysis and 
sensemaking theory, so what I ask is that you tell me about 
your experiences in your own words. Typically such interviews 
last from 40 minutes to an hour. I would love to hear from you 
no matter where you are in the world. 

If you can help me (and I would be truly grateful) please 
email me in the first instance: brian.harmer (at) vuw (dot) ac 
(dot) nz
----  
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 my good friends Pat & George 
Berger in Alexandria, VA. Many thanks for your support over a very
long period of time.

----  
On with the News. 

Monday, 21 July 2008
~~~~~~~~~~~~~~~~~~~~

FISHERIES STRIKE COULD BE ON THE CARDS
--------------------------------------

Staff in another big industry are planning strike action. 
Ministry of Fisheries staff including officers who protect 
fishing stocks from poachers, are considering industrial 
action. Their union says they have a number of concerns about 
their pay, travel allowances, annual leave and fitness 
testing. But Spokesman Martin Cooney says a settlement hasn't 
been reached after 10 months of negotiations. Negotiations 
resume on Wednesday but if a settlement is not reached, a two 
week campaign of industrial action will begin, including a 
series of one day strikes.

TASKFORCE LOOKING INTO CAPITAL MARKETS
--------------------------------------

The performance of the nation's capital markets is to get a 
thorough once over by a group of private sector experts. They 
have been gathered together into a Government task force aimed 
at improving investment and developing existing capital market 
structures. Task force chairman Rob Cameron says the group 
will take a broad approach but indicates he has an interest in 
the performance of the mid-market area. He says he wants to 
look at why such a small number of mid-market companies are 
successful and why many are not able to grow their business.

ANZ NATIONAL TO SELL AND LEASE 16 BRANCHES
------------------------------------------

ANZ National intends to sell and lease back 16 of its National 
bank branches across New Zealand. It is to enable the bank to 
unlock capital to reinvest for growth. The bank says the 
properties are available with secure long term lease - six on 
the North Island and 10 in the South Island. Not an unusual 
initiative, as it owns only 56 of its 314 branches. Auctions 
will be held in September.

ELECTRONIC CARD RETAIL SPENDING FALLS
-------------------------------------

Shoppers have been showing more reluctance to take their 
credit cards out of their wallets. Figures out today show 
electronic card retail spending fell in June. Seasonally 
adjusted retail spending fell by just under half a percent. It 
is a dramatic drop when compared with a 1.2 percent rise the 
month before, and is the biggest fall in two and a half years. 
The figures come as the Reserve Bank considers whether or not 
to cut interest rates on Thursday. Most analysts are picking 
Reserve Bank Governor Alan Bollard will leave rates unchanged 
at 8.25 percent, but will announce a cut in September. 
(Most analysts were wrong - BH)

MAORI URGED TO GET YOUNG PEOPLE OUT OF GANGS
--------------------------------------------

New Zealand First is urging Maori to do more to restore pride 
in their culture by getting their young people out of gangs. 
In his leader's address to the party's conference in Auckland 
yesterday, Winston Peters derided the level of crime in New 
Zealand, saying the country is full of violence, drug dealing 
and intimidation. He is putting most of the blame on gangs and 
is urging Maori to stand up to what is happening. Mr Peters 
says gangs have fused the LA style gangster culture of drugs 
and violence with disenfranchised urban Maori and in doing so, 
have bastardised Maori culture. He says rebuilding society 
needs to happen through traditional values and he would like 
to see women, particularly from Maori and Pacific Island 
communities, playing a more prominent role in the community. 
Mr Peters says people should not be afraid of embracing what 
is strong about women.

POLLS SHOW GAP NARROWING
------------------------

The latest political opinion polls show the gap between Labour 
and National is narrowing. A 3 News poll puts National on 48 
percent support, down two from the last poll. Labour remains 
steady on 35 percent. The Greens are the only other party to 
make the threshold with seven percent. New Zealand First is on 
four percent, Act one percent, United Future 0.3 percent and 
the Maori Party two percent. National Party leader John Key is 
down three points to 32 percent backing as preferred Prime 
Minister, while Labour's Helen Clark is down one point to 28 
percent. A poll by TVNZ, shows broadly similar results. The 
latest One News-Colmar Brunton poll shows the gap between 
Labour and National has closed by one third in a month. 
National is still ahead on 52 percentage points but Labour is 
up six points, sitting on 35. The Green Party, crosses the 
five percent threshold to gain six percent. Mr Key still tops 
the preferred Prime Minister stakes with 38 per cent support. 
Ms Clark is on 31. 
 
(Narrowing is one thing. I would be surprised if anyone 
thought they were likely to catch up. - BH)

Tuesday, 22 July 2008
~~~~~~~~~~~~~~~~~~~~~

VACCINE SHORT TERM, BUT STILL EFFECTIVE
---------------------------------------

Researchers believe the meningococcal disease vaccination 
campaign is working, despite evidence showing more than half 
of the children who received it have lost their immunity. A 
report from Auckland University's Immunisation Centre shows 
the injections give only short-term immunity. In many it wears 
off within months. However senior lecturer Helen Petousis-
Harris says the $200 million mass vaccination campaign was 
successful, because the risk of an epidemic has gone. She says 
the vaccine has been evaluated for effectiveness and has been 
found to significantly reduce the number of cases of disease.

AROUND 250 JOBS TO GO AT CHRISTCHURCH MEAT WORKS
------------------------------------------------

Around 250 jobs are being cut at a Christchurch meat works. 
Silver Fern Farms workers have been told two slaughter chains 
will be shut down, impacting about 225 processing workers and 
24 administration staff. There was speculation all 400 jobs at 
the plant could go. The company is apparently going to offer 
70 workers roles elsewhere in the company. There was already 
an air of resignation among the meat workers as they went into 
the meeting to learn the fate of their jobs at 10.30am. Silver 
Fern Farms has already axed a large number of jobs around the 
country.

GOVT OPEN TO TRIALS OF ANTISOCIAL BEHAVIOUR ORDERS
--------------------------------------------------

The Government is prepared to look at least one of the law and 
order policy ideas being put forward by the Police 
Association. Police Association President Greg O'Connor this 
morning launched a policy document titled "Towards a Safer New 
Zealand". It suggests investigating UK style antisocial 
behaviour orders, lowering the age of criminal responsibility, 
allowing DNA sampling of all arrested suspects, and penalties 
for defence lawyers who routinely contribute to court delays. 
Other recommendations include boosting frontline police 
resources and more amendments to bail laws. Police Minister 
Annette King has already looked at UK antisocial behaviour 
orders and says they have aspects that are interesting. "I 
think what we need to do is to test their workability in a New 
Zealand situation, because they are not a panacea, but they 
could be a tool." Legislation allowing the use of antisocial 
behaviour orders in Rotorua is due to come before Parliament 
in the near future. Mrs King suggests the Police Association's 
call for lowering the age of criminal responsibility is not 
likely to gain Government support. She says it is 
internationally recognised that New Zealand has a good 
approach to youth crime issues. Mrs King says New Zealand does 
not jail young offenders too early, because it would put them 
on the road to a life of crime among hardened criminals.

RENTERS QUIDS IN
----------------

A housing expert believes renters are getting the better deal 
at the moment and he is encouraging prospective first home 
buyers to delay their plans. The Property Investors Federation 
says the weekly costs of home owning are now around 2.5 times 
that of renting. The federation's calculations have found the 
average new home buyer shells out $745 a week, compared with 
the national average of $305 for those who rent. Vice-
president Andrew King is advising first home buyers to wait a 
few years and build up their nest egg. He says they could save 
around $20,000 a year by renting in the current climate. He 
says that money could go towards a down payment on a property 
later on. Mr King says, although it is always better to own a 
home, now is not the best time to buy.

(I can't help wondering how "Quids in" translates around the 
world. Roughly, the suggestion is that they are in a 
financially advantageous position. - BH)

INVESTORS HIT BY MORTGAGE TRUST FREEZING
----------------------------------------

More bad news for investors. Canterbury Mortgage Trust has 
frozen $250 million of its clients' money. Its 5,000 
investors, who are mostly from Christchurch, will have to wait 
until at least March next year to make a withdrawal. Business 
correspondent Roger Kerr says the company simply ran out of 
money and needs the cash to stay afloat. He says the fund is 
not being closed, but believes the company is unlikely to 
continuing shelling out a 9 percent return to investors.

VISITOR NUMBERS EASE BACK
-------------------------

Fewer tourists visited New Zealand last month as tougher 
economic conditions bite. The upcoming US election, rising 
fuel prices and growing global economic concerns saw visitor 
arrival numbers fall 2.1 percent to just over 140,000 visitors 
in June compared with a year earlier. Tourism New Zealand 
chief executive George Hickton says fortunately the UK has 
picked up slightly with arrivals up by 2.2 percent in June. 
Germany is also continuing to show healthy growth. There were 
1.9 percent more visitors from Australia in June. However, 
there were fewer visitors from America (down 12.4 percent) and 
Canada (down 3.5 percent). China arrival numbers plunged 24 
percent. There were 17.6 percent fewer Korean visitors and -
4.4 percent from Japan. Mr Hickton says feedback from tourism 
operators indicated business was slower in June, so the 
downturn is much as anticipated. He says Tourism New Zealand 
is working on campaign activity in major markets which will be 
launched in the next few months, with the aim of driving up 
visitors to New Zealand in the spring and summer months.

NEGATIVE GROWTH CONTINUES TO BITE
---------------------------------

The latest data on spending in June has reinforced predictions 
of larger than expected negative growth in the second quarter. 
It is fuelling speculation there could be an interest rate cut 
by the Reserve Bank on Thursday. Electronic card retail 
spending in June fell just over 0.5 percent. Deutsche Bank 
chief economist Darren Gibbs says the decline in retail sales 
will make a significant contribution to what is shaping up to 
be a further negative GDP growth, of 0.5 percent or more. He 
says the economy contracted 0.3 percent in the first quarter 
but the decline in the second quarter is at least 5 percent, 
possibly more. He feels it will be a close call, but he 
expects the Reserve Bank to cut the official cash rate by 0.25 
percent to 8 percent on Thursday. 
 
(Score one for Mr Gibbs - BH)

LAW AND ORDER POLICY DOCUMENT LAUNCHED
--------------------------------------

Frontline police officers will tell the Government how they 
want law and order issues tackled. The New Zealand Police 
Association is launching its first ever law and order policy 
document today. President Greg O'Connor says there is so much 
commentary on law and order issues, but often left out of 
that, are the frontline cops who know more about policing than 
anyone. He says the association has now tapped into that 
police officers' knowledge and perspective and has 
consequently produced a policy document which it believes 
gives solutions and ideas towards making New Zealand a safer 
place. Violence, organised crime and youth offending are some 
of the issues covered in the policy document.

Wednesday, 23 July 2008
~~~~~~~~~~~~~~~~~~~~~~~

REPAYMENTS FROZEN BY HANOVER FINANCE
------------------------------------

Hanover Finance has announced it will suspend acceptance of 
new investments and repayment of existing deposits. It says it 
is working with trustees on a plan to restructure the business 
going forward. Hanover Finance says it continues to meet its 
Trust Deed obligations and has ongoing financial capacity to 
trade. It says it is acting early to preserve value in the 
business, as market conditions continue to deteriorate and 
uncertainty mounts over borrowers' abilities to repay as 
forecast. Shareholder Mark Hotchin says against a backdrop of 
global credit uncertainties, falling property prices and lower 
reinvestment rates, the industry model has collapsed. 
"Alternate financiers are increasingly unwilling to step in, 
and we're also now starting to see borrowers trying to take 
advantage of the uncertainty to delay payments, further 
compounding the situation." Mark Hotchin and fellow 
shareholder Eric Watson have pledged continued support for the 
business and say they will also work closely with the trustees 
to deliver the restructure arrangement. 

(There seem to be few of these sorts of organization that have 
not yet fallen over. - BH)

INVESTORS CONFIDENT IN KIWISAVER
--------------------------------

KiwiSaver may be causing significant political debate, but the 
scheme appears to be getting the thumbs up from private 
investors. An ING report says despite market volatility, 95 
percent of investors who have joined KiwiSaver believe they 
have made the right choice. Investor services manager Steven 
Giannoulis says generally people are put off from these sorts 
of schemes, especially in poor market conditions. However, he 
says KiwiSaver is getting a good reputation for being a safe 
option.

PACIFIC BLUE TO CHARGE FOR BAGGAGE
----------------------------------

Domestic passengers on budget airline Pacific Blue will soon 
have to pay to check in their baggage. The airline will 
introduce an $8 charge for bags collectively weighing up to 23 
kilograms from September. Spokesman Phil Boeyen says the 
rising price of fuel is to blame for the new cost. He says 
there are a lot of people who travel domestically and do not 
have any luggage to check, so they are therefore subsidising 
those who do travel with bags. Mr Boeyen says a carry on bag 
will be free and items such as wheelchairs will be exempt. 
 
(They would have been smarter to follow the lead of the Qantas 
subsidiary, Jetstar, and pitch the difference in terms of a 
discount for those who travel light. - BH)

NOVEMBER 8 PICKED AS ELECTION DAY
---------------------------------

Centrebet is picking a November 8 election day. The bookie's 
media chief Neil Evans believes the steam has gone out of an 
earlier pick of October 18. He says Helen Clark is likely to 
announce a date that is later rather than sooner, particularly 
as she is now facing a sensitive public clean up over 
allegations swirling around Foreign Minister Winston Peters.

MORE FOREIGN STUDENTS IN MAORI PAPERS
-------------------------------------

Auckland University says it has record numbers of foreign 
students enrolling in Maori papers. In the eight years its 
kapa haka course has been running, the number of students 
enrolled has exploded from 10 to almost 90. Tutor Angela Smith 
says international students are flocking to the course, with 
only ten Maori students in last semester's class. She says 
more than half of the students were from the US and that they 
are drawn to the culture as it is so different to their own.

FERTILITY PRACTICE DISCUSSION SOUGHT
------------------------------------

Proposals to allow two previously banned fertility practices 
are now being opened up to discussion. The first would allow a 
woman about to undergo cancer treatment to have her eggs 
frozen so they could be used later to create a baby. The 
second is the screening of embryos to see whether the 
umbilical chord stem cells can be used to treat non-inherited 
diseases in close family members. Current guidelines restrict 
this practice to cases where the disease is genetic, and only 
allow it to benefit a baby's brother or sister. Discussion 
papers on both have been released for public comment today.

GOVT WATER POLICY UNDER FIRE FROM GREENS
----------------------------------------

A green-wash is the Green Party's take on a Government water 
policy statement due for release later today. The Government 
has signalled the intention of its national policy statement 
for freshwater management is to have all New Zealand waterways 
safe for swimming for a generation. However, Green Party co-
leader Russel Norman has obtained a leaked copy of the policy 
and says it contains no targets, no dates for standards to be 
met, and no pledge to restore ecological values to rivers and 
lakes. He says it is more evidence the safety of water 
resources have been hijacked by vested interests.

CAUTION URGED OVER PROSTATE CANCER DRUG
---------------------------------------

The Prostate Cancer Foundation is urging sufferers to be 
cautious of miracle drug claims. A new treatment being testing 
in England is showing promising results. The study has been 
published in the Journal of Clinical Oncology. Prostate Cancer 
Foundation president Barry Young advises people to proceed 
with optimistic caution, to make sure no one holds out false 
hope. He says far more testing is needed for the drug, 
abiraterone, before it is rolled out anywhere. The drug would 
be used on patients who have not been cured by surgery or 
radiotherapy, and are living chronically with the disease. It 
works by targeting male hormones that drive the cancer. It is 
hoped the drug will become widely available within three 
years.

LONG TERM HOUSING LEASES COULD RETURN
-------------------------------------

Long term leases for housing could be making a come back. The 
idea has gained traction at a symposium on affordable housing 
hosted in West Auckland. The forum included politicians, 
social service agencies and housing experts from both here and 
across the Tasman. Community Housing Aotearoa director Therese 
Quinlivan says 30 to 90 year leases would have a massive 
impact on families. She says currently when a family's time is 
up they not only have to move, but re-establish themselves as 
well. It is believed long term leases would also give more 
security to the landlord.

NUMEROUS REASONS FOR SHEEP DECLINE
----------------------------------

Meat and Wool New Zealand says there is a myriad of reasons 
why sheep numbers are declining. This follows Silver Fern 
Farms' announcement yesterday it is to close two lamb 
slaughter chains in Christchurch, meaning 160 workers are 
jobless and 70 others will have the chance to move to other 
departments. Meat and Wool spokesman Rob Davison says sheep 
returns have not been too flash for the past 3 years. He says 
over 90 per cent of our lamb production is exported, so world 
prices dominate what farmers get. He says the strong exchange 
rate means exporters are getting less for what they ship.

POWER SAVING CAMPAIGN ENDS THIS WEEK
------------------------------------

The electricity conservation campaign over the past six weeks 
has seen power savings of around 4 percent. The campaign will 
come to an end this Sunday, thanks to the southern hydro lakes 
beginning to fill up. The campaign was launched last month, 
because of fears a lack of rain would lead to blackouts. 
National claims it is luck blackouts were avoided, but Energy 
Minister David Parker says it is good management. He says it 
is thanks to the Electricity Commission, greater industry 
cooperation, and improved supply margins. 
 
(Certainly the spectre of dry lakes is receding rapidly - BH)

Thursday, 24 July 2008
~~~~~~~~~~~~~~~~~~~~~~

ASB DROPS INTEREST RATES
------------------------

ASB Bank has reduced interest rates, following this morning's 
reduction in the Official Cash Rate. The Reserve Bank dropped 
the OCR by a quarter of a percent to eight percent. ASB has 
now dropped its two year fixed home lending rate by 0.25 
percent to 8.95 percent. The two year fixed rate is the most 
favoured term for New Zealand homeowners. None of the other 
major lending banks have dropped interest rates. 
 
(This happened within hours of the announcement of the OCR 
rate change, and very soon after some pundit announced that it 
could take months for the Reserve Bank's action to filter 
through to consumers.- BH)

FTA WITH CHINA PASSED INTO LAW
------------------------------

Parliament has passed into law the Free Trade Agreement with 
China. MPs have voted 104 to 17 in favour of the historic 
trade deal, the first the Chinese have had with a developed 
nation. Those opposed to the deal were New Zealand First, the 
Greens and the Maori Party. Trade Minister Phil Goff says the 
FTA will bring major benefits for New Zealand exporters, with 
trade between the two countries already worth more than $2 
billion a year. The deal still has to be approved by the 
Governor General, and is likely to come into effect in 
October.

MORE MAORI LEAVING SCHOOL WITH QUALIFICATIONS
---------------------------------------------

Maori are making the biggest gains at secondary school. 
Figures from the Ministry of Education show 66 percent of 
students left school last year having achieved level two NCEA 
or above, up from 60 per cent in 2006. Education Minister 
Chris Carter says the rate of Maori leaving school with little 
or no formal qualifications has more than halved. He says the 
figure was 22 percent two years ago, but has now dropped down 
to 10 percent. Mr Carter says while that number is still too 
high, it is a big improvement. He says for the first time, 
more than half of Pasifika students achieved level 2 NCEA or 
above.

POLICE WANT TASERS, NOT GUNS
----------------------------

Police agree they should be armed - but not with guns. A 
Research New Zealand survey claims 50 percent of New Zealander 
support the idea of frontline police officers carrying guns. 
Police Association President Greg O'Connor says police are 
already able to draw firearms when needed, but on a day to day 
basis he believes they should be carrying Tasers. Mr O'Connor 
says besides the personal burden of having to shoot someone 
with a firearm, there is always a huge amount of scrutiny when 
it does happen. He says Tasers would make a real difference to 
the safety of the public, police and even offenders 
themselves.

RESEARCH SHOWS 4WDS ARE IN FEWER ACCIDENTS
------------------------------------------

New research shows four wheel drives are involved in fewer 
accidents than other vehicles. Otago University and 
Australia's Monash University Crash Accident Research Centre 
have been investigating the safety of SUVs. They have looked 
at 17,000 injury crashes on both sides of the Tasman and 
concluded SUVs are not generally dangerous. Public Health 
Researcher Dr Michael Keall says sports cars have the worst 
safety record of all vehicles. He says they set out thinking 
that SUVs would be relatively dangerous, so it is a surprise 
to find they are not. Dr Keall does warn that 4WDs have some 
features that make them unsafe, such as a liability to roll 
over. He says they are also aggressive vehicles, which means 
that if they crash the outcome is not always very nice.

COMMERCE COMMISSION INVESTIGATING HANOVER
-----------------------------------------

The Commerce Commission has launched an investigation into 
troubled finance company Hanover Finance. The company has 
frozen repayments to 16,500 investors who are owed more than 
half a billion dollars. Hanover Finance has been operating 
since 2001 under the directorship of Eric Watson and Mark 
Hotchin. The investigation will look into whether Hanover 
Finance has breached the Fair Trading Act by making misleading 
representations to prospective investors. 
 
(Much comment has been made about the dividends in the order 
of $20 million each, apparently taken from the company by the 
two directors in recent times - BH)

MIXED REACTION TO OCR CUT TO 8%
-------------------------------

There has been a mixed reaction to news Reserve Bank Governor 
Alan Bollard has cut the Official Cash Rate to 8 percent. 
Macquarie Private Wealth's Kerry Porter says it is significant 
news for exporters. He says not only has it been cut this 
morning, but with the signalling of further drops, the New 
Zealand dollar weakened immediately after the news. Mr Porter 
says that will be particularly good news for exporters. 
However, BNZ chief economist Tony Alexander is warning it will 
take some time for the effects of it to trickle down to the 
retail sector. He believes it is not reasonable to expect firm 
conditions until at least 2010 when interest rates will be at 
a "neutral level." The political reaction from the opposition 
has been swift. National says it is bad news for the country. 
Finance spokesman Bill English says homeowners will welcome 
the relief but any gains will likely be eaten up by rising 
living costs. He says it also shows the economy is not doing 
well. Mr English says worryingly the decision to cut interest 
rates is a reflection the economy is not growing and that 
unemployment may become a big issue. He also fears the 
Government will use the rate cut as an excuse to make big 
spending promises at the election.

40 HOUR WORKING WEEK "A MYTH"
-----------------------------

The 40 hour working week is a myth for more than 400,000 New 
Zealand workers. Research released by the Department of Labour 
today shows more than a third of the full-time workforce say 
they work 50 hours or more a week. Occupations where a large 
number of long-hour workers are found include farm managers, 
chief executives and general managers, education 
professionals, hospitality and retail managers and train and 
truck drivers. The department says it is a timely reminder 
about safe working conditions and work-life balance.

NATIONAL CONFIRMS 90 DAY PROBATION POLICY
-----------------------------------------

No major surprises in the employment and industrial relations 
policy from National. Leader John Key confirms intention there 
will be a 90 day probationary period for new staff employed by 
businesses with less than 20 employees. He says it will 
increase flexibility, let businesses grow, and give young and 
inexperienced workers a greater chance of getting work. Labour 
and the Greens have previously condemned the move saying 
vulnerable workers will be open to exploitation. However, Mr 
Key says safeguards, such as good faith provisions and 
mediation, will be in place to protect workers' rights.

MAJOR CITIES MORE EXPENSIVE TO LIVE IN
--------------------------------------

New Zealand's major cities are becoming more expensive to live 
in. A worldwide cost of living survey has shown Auckland and 
Wellington have moved up the rankings by a significant margin 
in the past year. A year ago, the Mercer survey ranked 
Auckland as the 99th most expensive city to live in - it is 
now up to 78. Wellington has moved up 18 places to become the 
93rd most expensive city. Moscow is the most expensive city to 
live in, followed by Tokyo then London. In relative terms - 
this means a cup of coffee will cost you $4 in Auckland, $6.30 
in Tokyo, and $5.43 in London.

GUN SURVEY RESULTS QUESTIONED
-----------------------------

The validity of a survey suggesting one in two people want 
police to carry guns is being questioned. Research New Zealand 
conducted the poll of 500 people, which found more than half 
of those surveyed are more worried about their personal safety 
than they were a year ago. Auckland University of Technology 
criminologist Dr John Buttle doubts police will show much 
interest in the survey. He says research companies always tend 
to put out these types of surveys, and these kinds of results 
are to be expected after a spate of violent crime as has been 
reported in the media. Police have made it clear they are not 
interested in routinely carrying guns. Dr Buttle says the 
survey should be conducted over a four year period.

TIME RUNNING OUT FOR EMISSIONS SCHEME
-------------------------------------

The Government remains confident it can pass its Emissions 
Trading Scheme before the election. But Leader of the House 
Michael Cullen is admitting they do not yet have the political 
support. With Parliament due to rise for the election no later 
than October 6, the pressure is on to lure the Greens, New 
Zealand First or the Maori Party for their support. National's 
Nick Smith says the Select Committee was given only three days 
to consider over 1,000 amendments to the scheme. He says that 
was on the basis that the Government urgently wanted it 
returned to the House, and it has subsequently stalled for the 
past seven weeks. Dr Smith says the Emissions Trading Bill 
should go back to the Select Committee for more hearings.

Friday, 25 July 2008
~~~~~~~~~~~~~~~~~~~~

FISHERIES EMPLOYMENT DISPUTE SETTLED
------------------------------------

An industrial dispute at the Ministry of Fisheries has been 
settled. Chief executive Wayne McNee has announced the 
ministry has reached agreement in principal with the Public 
Service Association and National Union of Public Employees on 
new employment contracts. The deal has still to be ratified by 
union members. Fisheries staff had been threatening to strike 
if their demands were not met.

UNITED FIRE BRIGADES ASSN IS IN RED
-----------------------------------

The United Fire Brigades Association is in the red. It has 
posted an interim financial deficit of just under $450,000 
dollars for the past year. Chairman Peter Guard says there has 
been some overspending and some significant under-estimation 
of costs involved in a number of events. He says the board has 
learnt some important lessons and appropriate measures are 
being put in place to deal with the deficit. Volunteer 
firefighters receive a grant from the Fire Service and also 
rely on fundraising.

NEW CABINET RULES MANUAL RELASED
--------------------------------

As pressure mounts on Foreign Minister Winston Peters, the 
Government has just released a new Cabinet manual. The manual 
outlines rules governing ministerial behaviour, including the 
acceptance of gifts and political donations. It states gifts 
above $500 in value must be declared on an MP's pecuniary 
interest register, and they must be relinquished unless the 
minister has the express permission of the Prime Minister. The 
manual allows ministers to accept political party donations - 
however, it states ministers must pass on the money to their 
party as soon as possible.

FURTHER FUEL PRICE DROP
-----------------------

A little more relief for cash-strapped motorists. Shell is 
leading the charge - shaving another 4c a litre off its fuel. 
It takes 91 grade petrol to $2.06.9 per litre and diesel to 
$1.83.9 per litre. It is now the second drop in a week - the 
first came on Monday.

ALMOST 46,000 MAORI VOTERS OFF THE ELECTORAL ROLL
-------------------------------------------------

Almost 46,000 Maori voters are missing from the electoral 
roll. Elections New Zealand has released new figures that show 
just under 29,000 voters previously on the Maori Roll are not 
enrolled to vote. It has also discovered 17,000 Maori who were 
on the General Roll are now no longer there. The Electoral 
Enrolment Centre says they have obviously let their enrolment 
lapse by not updating their details after moving. It is urging 
them to re-enrol as soon as possible.

WARNING OVER CELEBRITY FINANCE ENDORSEMENTS
-------------------------------------------

There is a warning to Mum and Dad investors to do their 
homework on finance companies, and not be blinded by celebrity 
endorsements. Former TV One newsreader Richard Long was the 
voice of Hanover Finance, which this week froze $554 million 
worth of investor funds and started work on a restructuring 
plan. All Black great Colin Meads endorsed Provincial Finance 
before it went into receivership in 2006. Professor Larry Rose 
from Massey University's College of Business says it is 
understandable that some investors feel betrayed, because 
these people are New Zealand icons. But he says their 
endorsement does not mean they have any expertise in finance 
and the onus is on investors to make sure they get expert 
advice. Professor Rose says it is one thing to be attracted to 
a product or service by a celebrity endorsement, but it is 
quite another to hand your money over on the basis of that 
endorsement. He says undoubtedly those who endorse companies 
that fail will feel bad about it, but it is no different to 
endorsing any other product.

10,000 FELTEX SHAREHOLDERS GO TO COURT
--------------------------------------

A group of about 10,000 Feltex shareholders will band together 
on Monday to take their claim against Feltex directors to the 
High Court at Christchurch. The Feltex public share float was 
worth $254 million in June 2004 but shareholders lost 
everything when the company went into receivership in 2006. 
Auckland businessman Tony Gavigan says shareholders will argue 
they were misled by the company's prospectus. He says from 
Monday, the two sides will hold hearings, with a number of 
applications to be heard. Mr Gavigan says they were surprised 
that only about 100 shareholders opted out of the legal 
action.

1 IN 5 STUDENTS DROP OUT UNQUALIFIED
------------------------------------

Principals are worried that too many secondary students are 
leaving school unqualified. The 2007 national school leavers 
report shows nearly 1 in 5 students dropped out of school 
without NCEA level one. Secondary Principals Association 
President Peter Gall says it is heartening that the figure has 
dropped 6 percent from 2006. He says it is important for 
students to gain qualifications which will give them access to 
tertiary education and courses. Mr Gall says there is a way to 
go to maximise the number of young people who are going to be 
productive members of our society and add to the economic 
success of New Zealand. He says parents have an important role 
to play to ensure their children are successful at school.

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