From news at wysiwygnews.com Wed Oct 1 18:25:25 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Wed Oct 1 18:25:31 2008 Subject: WYSIWYG NEWS - 1 October, 2008 Message-ID: <5C980AE42F38704494A3D4FD9A6F2E7B03224BA9@STAWINCOMAILCL1.staff.vuw.ac.nz> Subject: 1 October, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. Place names from other lands are bound to sound exotic to outsiders. At home I have often mentioned Poroutawhao as "a name to conjure with". It was with some sense of delight, then, that I was able to join David and Rowena with the children, Grace and Isaac on a trip to an island called "Coochiemudlo". With Rowena's parents Sam & Lorraine we and Sam's brother an sister-in-law, we drove down through the South Eastern suburbs of Brisbane to Victoria Point, from where we could take the ferry across the gap to the island. Coochiemudlo is inside Moreton Bay, which is sheltered from the sea by Stradbroke Island and Moreton Island. On the whole the bay is characterised by mud and mangroves. Coochiemudlo is a happy exception, with sandy beaches, and safe for swimming (with the possible exception of the odd shark passing by). For a long time it has been the place where Brisbane families go for a day at the beach near home if the golden sands and exciting surf of the Gold Coast or the Sunshine Coast seem too far away. The ferry is a diesel powered catamaran that looks to be capable of carrying about 100 or so people, and from the time we got there at around 9:30 it came back every thirty minutes with another load of people. We were lucky and captured a prime spot on the main swimming beach which afforded shade and shelter, should it be needed. I enjoyed watching the youngsters and eating the food provided by the families, and avoiding the burning sun. David took Grace to the rental pontoon on the other side of the jetty where kayaks and aqua-bikes were available for hire. Grace sat in the front seat of the kayak and made her contribution to the forward motion, while David sat in the back and made it go. Then they had a ride on the aqua-bikes. The pedals were too far away fro Grace, and way to close for David's long frame. Mindful of my last submersible venture on small boats, I stayed ashore and used my long telephoto lens to catch the action. The next day David and I took Grace to the Rail Museum at Ipswich. Ipswich reminds me a little of Hamilton to look at, but it is the place inland from Brisbane that has the hottest summers and coldest winters in the region. We struck it on a day where there was an upward spike in the temperature variously reported at 36 or 38 deg C (about 105 F). It was so hot that the paper maps laid out on the table for visitors were uncomfortably hot to touch. The highlight of the museum for me was the possibility of seeing blacksmiths at work forging various items of railway hardware. I can't imagine what it must have been like to work in those buildings in the height of summer. ---- 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 Tina and Ted McCarthy, somewhere in the US. Many thanks again. ---- On with the News. Monday, 22 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ LABOUR ATTACKS KEY OVER SHARES ------------------------------ Labour is on the attack after revelations National Party Leader John Key held more Tranz Rail shares than he had previously disclosed. In July Mr Key acknowledged having 30,000 shares purchased via a family trust. It has now been revealed he actually had 100,000 shares and at a time when he was serving on Parliament's Transport and Industrial Relations Select Committee. Deputy Prime Minister Michael Cullen says John Key's failure to tell the truth shows he knew he was acting unethically and in breach of Parliament's rules when he spoke against Government plans to rescue rail. Dr Cullen says Mr Key lied because he knew he had something to hide. John Key says the criticism is a desperate attack by Labour and an attempt to run a smear campaign against him. (I have declared my position with regard to the elections, and I do not intend to go on about it, nor even to campaign for one side or the other. I will however, comment on issues as they appear relevant to me during this election time. In this instance, I am far less perturbed by John Key's lapse than I am by the collective, and even deliberate failure of the Labour Party to deal properly with the disgraceful investigation into Winston Peters. I am genuinely appalled and disillusioned by that. - BH) ANTI-GST ON FOOD PETITION TO DEFY BAN ------------------------------------- Campaigners against GST on food are planning to defy a council ban and set up their petition in Whangarei's CBD. The Residents' Action Movement is taking the petition through North Island towns on its way to Parliament. It is due in Whangarei tomorrow, where the local council has a longstanding policy banning political activity from its busy Cameron Street Mall. RAM spokesman Grant Morgan says it is the best spot in town and they will be setting up regardless. He says if he is levied with a fine he will refuse to pay it as there is a democratic principle at stake. (People fail to understand that bailiffs can seize property to enforce a court ruling, with the aid of the police if necessary. - BH) GOVERNMENT CHIPS IN FOR CARTER OBSERVATORY ------------------------------------------ The redevelopment of Wellington's Carter Observatory is getting a helping hand from the Government. It has allocated $39,000 for the project via the Tourism Facilities Grant Programme. The Wellington City Council has already allocated $3 million over 10 years to support the Carter Observatory's future. (Must be an election year or something. Weren't they the ones that closed it? - BH) NZ'S SEABED RIGHTS CONFIRMED BY UN ---------------------------------- New Zealand's rights over 1.7 million square kilometres of seabed have been confirmed by a special United Nations commission. Prime Minister Helen Clark says it is the result of more than ten years' work by New Zealand scientists and officials, costing $44 million. The area confirmed by the UN commission is more than six times the size of New Zealand's land mass. Miss Clark says the decision allows New Zealand to pursue mineral and petroleum exploration on the continental shelf surrounding New Zealand, should it choose to do so. MARKET UP 2.5 PERCENT --------------------- The New Zealand market is up 2.5 percent this morning. It has been prompted by the US Government's trillion-dollar bail-out plan to stabilise the financial market. ASB Securities Andrew Kelleher says the plan has given the market some confidence. He says they are waiting for the Australian market to open, given the ban on short selling imposed on the weekend. Mr Kelleher says they are expecting to see activity as some of the financial stocks get bought back aggressively. "LISTEN LOUD AND LOSE IT" ------------------------- The National Foundation for the Deaf is warning people who listen to loud music risk losing their hearing. Deaf Awareness Week 2008 starts today. The foundation's latest research shows 48 percent of 18 to 25-year-olds have experienced ringing in the ears, or tinnitus, for at least a few hours after listening to music. The foundation says it is the first sign of permanent hearing loss. It says it is not just the volume of music being listened to but the number of hours that is doing the damage. CONCERN HEART DISEASE BEING IGNORED ----------------------------------- Alarming new research shows 74 percent of New Zealand women are unaware heart disease is by far their leading cause of death. On average 7 Kiwi women die from heart disease every day. Heart Foundation medical director Professor Norman Sharpe says the results shows the majority of women mistakenly believe breast cancer is their leading cause of death. He says women are a little more difficult to diagnose with heart problems and when they are diagnosed, they tend not to get the same aggressive treatment as men. Professor Sharpe says there is a gender inequality and unfairness here that they want to correct. He is advising all women over 50 to have a heart health check. GREENS TRANSPORT POLICY RELEASED -------------------------------- Spending smarter, not more, is the philosophy the Green Party is putting behind its transport policy. It is urging a major increase in public transport funding - advocating $1 off-peak fares and 50 per cent discounts for children, students, and beneficiaries. Co-leader Jeanette Fitzsimons says they are talking about changing priorities, not about spending any more money in total. She says they would move roads down in priority and instead direct the money at public transport projects. Tuesday, 23 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ FTA TALKS WILL CATER FOR NATIONAL INTERESTS ------------------------------------------- The Government is promising national interests will be catered for in free trade talks with the United States. The Green Party is asking for assurances drug agency Pharmac will be protected as it fears US pharmaceutical companies would require it be broken up under a FTA. Cabinet Minister Annette King says it will be a matter that will be discussed in the talks. She says, as with all FTAs, for the agreement to be signed it has to pass the test of being in the national interest. However Mrs King has not given the Greens a yes or no assurance about Pharmac's future. BUS COMPANY AXED AFTER 103 YEARS -------------------------------- A Napier bus company's urban services have been axed after the Hawke's Bay Regional Council awarded the contract to an out of town company. Hamilton's Go Bus service will pick up services in Napier and Hastings in February. Manager of Nimon and Sons Pete Patterson says it is a huge blow to the company, which has been providing the region's bus services for 103 years. He says its also come as a huge disappointment to the Nimon family. Mr Patterson says the company will lose around 20 drivers, plus maintenance and support staff. LEAKY HOMES ADVICE TO BE ONLINE ------------------------------- A leaky home owner struggling to get information on how to solve his problem is reaching out to others in the same situation. Aucklander Steven McAneney has set up a web site where homeowners can go for information on the issue. He says one of the problems is that the main party involved is the Weathertight Resolution Service - which, as a government department, is not in a position to recommend building inspectors, surveyors or lawyers. He says leaky home owners have been left in the lurch with no one to turn to for advice. Mr McAneney says that is frustrating, and the realisation he would not be the only one in this situation sparked the web site, "leaky home forum". WARNING TO FAMILY TO LOOK OUT FOR ELDERLY ----------------------------------------- Age Concern wants people to stay in contact with their community as they get older. Joanne Smith has been sentenced to 18 months in jail for swindling $85,000 out of the elderly man she cared for. The Rotorua woman lied about needing money for two kidney transplants and treatments for a child with cancer. Age Concern spokeswoman Jayne McKendry says given the man made Smith the sole beneficiary of his will, he may not have had many family or friends looking out for him. She says older people need to stay connected with others, so they can get advice and talk to about these types of situations. Ms McKendry says it is important for people employing caregivers in a private capacity to check their referees. FONTERRA DEFENDS ITSELF OVER MILK SCANDAL ----------------------------------------- Fonterra is defending the way it has handled the Chinese milk powder scandal, after Helen Clark launched a scathing attack. The Prime Minister says the dairy giant took too long to speak out, and responding by video conference was less than adequate. Fonterra chief executive Andrew Ferrier says the company took what it believed to be the most effective and fastest route to recall San Lu products. He says Fonterra now wants to work with the Chinese Government to try to restore the stability to China's milk market. He says Fonterra also wants to ensure consumers in China get safe, quality baby formula and other milk products. (The scandal itself is atrocious and as I understand it, San Lu is but one of 22 companies behaving in this way. Despite the wise after the event wisdom of the Prime Minister, I have seen little evidence to suggest that Fonterra played any active role in the scam, or that it delayed unreasonably in blowing the whistle. - BH) MORE OIL TO BE FOUND IN TARANAKI REGION? ---------------------------------------- Oil companies feel there is more oil and gas to be discovered in the Taranaki region. New Zealand exported oil worth $2.8 billion in the year to July, mostly from the Tui fields offshore from Taranaki. Last night, Government agency Crown Mineral, allocated nine onshore petroleum blocks for exploration to a range of exploration companies including three new players. Petroleum Exploration and Production Association of New Zealand says it underlines the industry's importance, despite recent policy favouring renewable energy. REALITY OF USA FTA STARTS TO HIT -------------------------------- Business New Zealand believes a collective effort is needed to ensure a free trade deal is signed with the United States. Trade Minister Phil Goff is in New York this morning to hold bilateral meetings with the US Administration and congressional representatives. He will also meet members of the P4 nations, including Singapore, Chile and Brunei. Business New Zealand chief executive Phil O'Reilly says the real feature of the deal so far is a story of New Zealand incorporated acting together. He says businesses in both New Zealand and the US are pushing very hard to get a positive outcome. Last night, the Prime Minister announced the beginning of talks with the United States on a free trade agreement. A beaming Helen Clark says it is huge for New Zealand and she expects the deal will be clinched in less than the three years it took for China to sign the dotted line. She says this country had to get to know China's systems from scratch, which is not an issue with the United States. The formalities of the commitment are expected out of Washington today. Business New Zealand chief executive Phil O'Reilly says if a deal is struck, it will have a huge impact. He says communities and companies that exporters serve and support will benefit, which would mean a fantastic outcome for New Zealand. Mr O'Reilly says a free trade agreement with the US would be worth over $1 billion to New Zealand's economy a year. ANGER OVER PATIENTS' PAYING FOR LAB TESTS ----------------------------------------- Southern Cross Healthcare says making private patients pay for their lab tests, is making them pay twice. Auckland's three district health boards are floating the idea. The organisation says since the policy was introduced in Wellington 10 months ago, private patients have spent over $1.5million on tests. Chief executive Ian McPherson says the service should be covered by the taxpayer-funded health budget. He says many patients are choosing to go private so the public system does not have to cover their treatment costs. Mr McPherson is calling for a fair consultation process. He is angry that over 70 per cent of submissions in the South Island were against the idea, and two health boards decided to go with it anyway. (Southern Cross has, nevertheless declined to pay for specialist-ordered lab tests in my family because it believes that the DHB should pay for them. That's as maybe, but in the meantime, its members miss out. - BH) Wednesday, 24 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ TESTS REVEAL MELAMINE IN NZ SOLD LOLLIES ---------------------------------------- The Food Safety Authority has found high levels of melamine in Chinese sweets sold in New Zealand. It began testing for the industrial chemical in White Rabbit Creamy Candy yesterday, after reports from Singapore suggested they sweets could be contaminated. FSA Deputy Chief Executive Sandra Daly says it has been time consuming to test the sticky milk-based lollies because equipment is designed to test liquids and powders. She says they have now received confirmation the candy does contain high levels of melamine. Ms Daly says they have issued a Director-General's statement advising people not to eat the candy, but there are no immediate plans to recall the product. SPEAKER TO RETURN TO UNIVERSITY ------------------------------- Speaker of the house Margaret Wilson will return to the University of Waikato in December as a professor of Law and Public Policy. Ms Wilson was the Foundation Dean and Professor of Law at the university from 1990 to 1999, when she entered Parliament. She is known for her work in overseeing the introduction of the Supreme Court, the Relationship Property Act and the Employment Relations Act. FONTERRA ADMITS SAN LU BRAND IS FINISHED ---------------------------------------- Fonterra admits the San Lu brand in China is finished, but says it is still committed to investing in the country. The dairy giant owns 43 percent of San Lu. It has announced today it has written off $139 million in the value of its investment because of the contamination scandal. The Chinese Government now alleges San Lu management knew in December that some products were contaminated. Fonterra CEO Andrew Ferrier says the company is yet to get to the bottom of the truth. He says he would be appalled if management in China had been lying to Fonterra directors. The contamination scandal is not just restricted to San Lu, with more than 20 companies in China are being investigated by the its Government. Mr Ferrier says the company remains committed to the Chinese market, but admits the situation in China is "cloudy". He says the whole affair has now made Fonterra directors more suspicious, especially when it comes to entering joint ventures. TAX RELIEF WOULDN'T MEAN PUBLIC SERVANTS CUT -------------------------------------------- John Key has promised National's soon-to-be-announced tax cuts will not come at the expense of public services. He has given the assurance to the annual congress of the Public Servants Association, which claims National's tax plan will mean public servants will lose their jobs. The PSA is using an advertising campaign to highlight what it sees as the risk of National's tax cuts. But Mr Key has told the PSA's members that the tax cuts will not require any cuts to the services, and that they are instead intended to lead to economic growth. The National leader has also defended his plan not increase the numbers of bureaucrats in Wellington, a move which has been criticised by the PSA. "LIGHT" AND "MILD" TO BE REMOVED FROM SMOKES -------------------------------------------- The Commerce Commission and Ministry of Health are warning that all cigarettes are harmful, even if they have 'light' or 'mild' written on the pack. A Commerce Commission report has found those cigarettes with the light or mild labelling are not any healthier than normal cigarettes, yet figures show most smokers buy them. The commission has issued warnings to three major tobacco companies, concerned their use of the terms could mislead consumers into thinking cigarettes labelled that way are less harmful to their health. The commission says the cigarettes might have fewer toxins, but there is a body of evidence to show smokers compensate by inhaling more deeply or smoking more. The three companies, British American Tobacco, Imperial Tobacco and Philip Morris have all promised to remove the terms light and mild from their packaging. The commission says it will be checking to make sure they do. Ministry of Health tobacco control senior analyst Brendan Baker says the commission's findings simply show all cigarettes are dangerous. He says it comes just days after it was proved rolled cigarettes are also just as harmful as bought ones. NZ US COUNCIL DISAPPOINTED AT US DAIRY -------------------------------------- The New Zealand US Council says it is disappointed at the US dairy lobby's move to try to exclude all dairy products from any Free Trade Agreement between the US and New Zealand. The US National Milk Producers Federation claims it is really a deal with Fonterra, dressed up as a Trans-Pacific Free Trade Agreement. But the Council executive director Stephen Jacobi says it is surprising the US dairy farmers are reacting in that way. He says the agreement is a lot more than dairy products. Mr Jacobi says there has been very positive reaction from the US National Association of Manufacturers which has come out strongly in favour of the agreement. KIWI INCOME PROPERTY TRUST PORTFOLIO LOSES ------------------------------------------ Kiwi Income Property Trust's portfolio has lost $51 million in value. The trust says it remains cautious in the current economic environment. The reduction was determined by independent valuers and represents 2.5 percent of the trust's portfolio which is now around $2.03 billion. Chairman Sean Wareing says he does not expect the decrease in value to adversely affect distribution to unit holders. He is projecting a cash distribution for the year ended 31st of March 2009 of nine cents per unit. CALL FOR GREATER RECOGNITION FOR SOCIAL WORKERS ----------------------------------------------- The union for social workers wants greater recognition and support for those who work outside government agencies. It is Social Workers Day today. The Association of Social Workers says it is a common misconception that Child, Youth and Family is the major employer of social workers. Spokeswoman Rose Henderson says the biggest employer is the non-government sector including church agencies like the Methodist Mission and family support services like Barnardos. She says research would give a more accurate picture of the sector including types of work, appropriate qualifications and resources needed. NZ FIRST HITS OUT AT GREENS OVER GANGS -------------------------------------- The Green Party is on the receiving end of some New Zealand First barbs for blocking the party's anti-gang legislation. It follows efforts by New Zealand First MP Ron Mark to table his Anti-Gang and Organised Crime Bill in Parliament yesterday. He is unhappy the only dissenting voice that blocked the move came from the Green Party benches. Mr Mark is accusing the Greens of supporting gangs and being soft on urban terrorism. Thursday, 25 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ LABTESTS WINS BACK CONTRACT --------------------------- Labtests has been handed back a multi-million dollar contract for community laboratory testing in Auckland. It has won an appeal to overturn a High Court decision returning the $560 million contract to incumbent provider Diagnostic Medlab. DML took the matter to court last year after it lost the tendering process, citing a conflict of interest concerning Auckland District Health Board member Dr Tony Bierre. But the Court of Appeal has quashed the High Court's ruling which gave the contract back to Diagnostic Medlab. It says there was no improper use of inside information by Dr Bierre, who was connected with Labtests. The court says Dr Bierre acted appropriately once his conflict of interest arose. REDUNDANCY PLAN CONFIRMED BY ANZ -------------------------------- ANZ has confirmed it is exploring voluntary redundancy for retail staff, citing the increase of internet and phone banking as a key reason. The bank says it is conducting a review of customer activity within its branches and expressions of interest for voluntary redundancy is one option being explored. Managing Director of Retail Banking Wayne Besant says customers are utilising and adopting alternative and more convenient ways to conduct their banking transactions, such as over the internet or by phone. He says as a result there is a decline in the volume of over-the- counter transactions in branches. In a confidential memo obtained by Newstalk ZB, the bank says it has put a freeze on recruitment for all roles and will not necessarily replace vacancies when they arise. The memo says casual and overtime usage will be kept to a minimum and unplanned absences will not necessarily be covered. The announcement has angered bank workers' union Finsec, which has branded ANZ managers as liars, after the bank said it would increase frontline staff earlier this year. Finsec Spokesman Andrew Campbell says ANZ customers will also lose out. STAFF BEING CUT TO PREVENT MORE JOB LOSSES ------------------------------------------ Transfield says it is laying off staff now to prevent being forced to get rid of all its engineering positions in the future. The maintenance provider for Telecom has not been able to renew its contract and says its facing tough financial times. Transfield's telecommunications executive general manager Ross Lockwood says they have 1,400 staff, with 170 facing redundancy. He says if they did not take action now, all 1,400 employees could be facing the axe early next year. Mr Lockwood says all employees are being told today and they will go through a consultation period. He says they are prepared to help them in any way to find jobs. Mr Lockwood says there is a shortage of engineers at the moment but it will all come down to what vacancies are offered at other companies. LARGEST-EVER TREATY SETTLEMENT PASSED ------------------------------------- The largest-ever treaty settlement has been passed by Parliament. The Treelords Deal will see the Crown transfer forest land worth $196 million to a collective of seven central North Island iwi. The agreement will also see the iwi receive rentals of an estimated $223 million. BUS DISPUTE GETS BITTER ----------------------- Around 100 bus drivers are on a picket-line outside Go Wellington's Kilbirnie depot, after the bus company locked them out. All Go Wellington services, including school buses, are now suspended indefinitely, and thousands of commuters have had to find another way to work or school this morning. The bus company says it will not lift the lock-out until drivers lift their notice of industrial action, or accept the current pay deal on the table. Drivers who spoke to Newstalk ZB this morning say they are prepared to dig in for better pay. They say teenagers working down the road at KFC are getting more than they get, and that tells them how much the company values them. The drivers say the company knows where they are if they want to bring them a better offer. MORE MONEY FOR AFTER HOURS EMERGENCY CARE ----------------------------------------- Doctors say an incoming government must urgently provide more money for after hours emergency services. The organisation which represents GPs is pointing to a recent survey showing in many regions it costs more than $45 for an after-hours doctor's visit for children and over $65 for an adult. The Independent Practitioners Association Council is very concerned at the impact that is having on patient access. Chairwoman Dr Bev O'Keefe, says the problem is particularly acute in rural areas. FED FARMERS CAUTIOUS OVER MILK PAY OUT -------------------------------------- Federated Farmers says New Zealand's major economic tap is not being turned off, it is being turned down. Fonterra's forecast pay-out for the current season has dropped from $7 per kilo of milk solids to $6.60. The pay-out for the 2007/08 season is $7.66. Federated Farmers president Don Nicolson says we are coming off an all-time high. He hopes the Reserve Bank will take the forecast drop into account when setting the Official Cash Rate. President Nicolson says since the last forecast in May, the world scene has changed considerably. He says commodity prices have trended down and there are concerns about international financing with some clouds on the horizon and it is useful the Fonterra team has signalled that to New Zealand farmers. REASSURANCE GIVEN TO THOSE IN SUPER FUND ---------------------------------------- Reassurance for those hooked into the New Zealand Super Fund. It says it remains 'disciplined' in the face of tough financial times, despite reporting a negative return in the year to June. CEO Adrian Orr says the result reflects widespread declines in global share prices created by problems in the US. He says the fund continues to focus on maintaining a highly diversified portfolio. Friday, 26 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ ELECTION BATTLE BEGINS ---------------------- Parliament has wound up for the battle to begin for the election. Speaker Margaret Wilson has this afternoon pulled the curtain down on proceedings, six weeks before the November 8 election. Parliament will not sit again the next Government is confirmed. Before the MPs left, deputy Prime Minister Michael Cullen reaffirmed what Labour will campaign on. He says the election will be about trust versus the supposed desire for change. John Key had his own parting shot, saying the Government has failed - and now has the audacity to go to New Zealanders asking for another three years. He says it is time for a fresh start, which is what National will offer. Conspiracy theories were to the fore when New Zealand First leader Winston Peters gave his final address. Mr Peters, who was this week censured by his colleagues for knowingly making a false declaration over the Owen Glenn donation, again trained his guns on the media. Mr Peters says in his time in Parliament he has never seen such a grossly irresponsible media and he has always known that behind their agenda is an orchestrated campaign to get rid of the Government. He says he knows who is behind the conspiracy and where the money is, although he did not say who it was. FREE OFF-PEAK TRAVEL WITH SUPERGOLD CARD ---------------------------------------- The country's half a million SuperGold Card holders are to get free off-peak travel on publicly-funded buses, trains and ferries. The initiative will cost the Government $18 million a year. Transport Minister Annette King says most regional councils around the country are ready to roll out the travel concession from next Wednesday. Travel will be free from 9am until 3pm, as well as after 6.30pm during the week. All travel will be free during weekends and public holidays. HOPES CAMPUS WILL DRAW MANUKAU STUDENTS --------------------------------------- It is hoped more South Auckland school leavers will enter study programmes, with the establishment of a tertiary education campus in Manukau. The local council and the Manukau Institute of Technology have signed a memorandum of cooperation for the development of a new tertiary campus, set to be up and running by 2011. Manukau Mayor Len Brown says at present, an average of 2.6 percent of Counties Manukau people are in tertiary education, which is about half of the national average. GDP DOWN - RECESSION CONFIRMED ------------------------------ The Gross Domestic Product has declined 0.2 percent in the June quarter, confirming the nation is in a recession. The fall is less than the market expectations of a 0.5 percent fall. It follows a 0.3 percent decline in the March Quarter. The country now meets the common definition of recession, two consecutive quarters of economic contraction. Market reaction to the data has push the New Zealand dollar up a quarter of a cent. NZ WATER MANAGEMENT SUBSTANDARD ------------------------------- A recent study has found New Zealand has a lot of work to do when it comes to water management. The New Zealand Council for Infrastructure Development has commissioned the report, which gave New Zealand's water infrastructure a mediocre C pass. Council chief executive Stephen Selwood says given the importance of water to the nation's health, environment and economy, water services should be of world-class standard. He says several things are contributing to allow the unsustainable and uneconomic use of water to continue, including a lack of pricing signals like user pays. SLOWING HOUSING MARKET CONTINUES TO HIT --------------------------------------- A subcontractor is hoping his reputation will get him through the slow down in the housing market. Hundreds have been stung by the collapse of big housing developments in the Auckland region. The latest to go under is a 160-resident, 16 hectare waterfront development at Snells Beach. Christchurch plumber Steve Hill says it is easier being a sole contractor because he does not have to worry about paying other staff. He knows of a bigger firm in Christchurch that has its workers on 36 hours a week. Mr Hill says he takes whatever work he gets, even if it is just a small spouting job. NATIONAL WELCOMES WALKING ACCESS LEGISLATION -------------------------------------------- Overwhelming support has seen the Government's Walking Access legislation pass into law. The law, which creates a commission to advise on and implement walking policies, passed its third reading in Parliament last night. National's Agriculture spokesman David Carter is happy with the law that is now much changed from its original form. He says it now recognises and respects the importance of private property rights of landowners. The legislation was opposed by the Maori Party for not paying due heed to the need for consultation with tangata whenua. FAMILY FIRST, WORK SECOND ------------------------- New Zealanders are putting their families ahead of work commitments. Research from the Families Commission shows many people are only taking on jobs that will fit in with their responsibilities at home. About 75 per cent of people not in paid employment would return to the workforce, if they were given more flexibility. Chief commissioner Jan Pryor says the culture of a workplace plays a big part in whether or not staff ask for flexible work arrangements. She says often negative attitudes of managers and colleagues are the main barrier to asking for changes to working arrangements. She says it is important people realise that flexible work options does not necessarily, mean cutting back their hours. LAB CHANGES WON'T AFFECT PATIENTS - DHB --------------------------------------- The Auckland district and regional health boards say a change in blood test provider will have no impact on patients. The company Labtests has won an appeal to overturn a High Court decision giving the multi-million dollar contract back to incumbent provider Diagnostic Medlab. DHB spokesman Pat Sneddon says they will work with both parties to ensure there is a smooth transition period. He says they can provide security of service to the public at large. Mr Sneddon says Diagnostic Medlab will continue until Labtests takes over. He says DML has agreed to co-operate to ensure a smooth transition. FLEXIBLE WORK BECOMING MORE POPULAR ----------------------------------- New research shows more than three quarters of people have access to flexible work arrangements. The Families Commission has used focus groups, case studies and a survey of 1,000 people to get an understanding of how last year's Employment Relations Bill is impacting on families. 4 out of 10 people are able to work from home. Chief Commissioner Jan Pryor says there is still a lot of misunderstanding about just what makes up quality flexible work options. She says some people wrongly thought flexible working hours related to things like taking funeral leave. She says work flexibility could include allowing people to finish work earlier so they are able to pick up their kids from school. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. -------------- next part -------------- An HTML attachment was scrubbed... URL: http://wysiwygnews.com/archives/news/attachments/20081001/e718f752/attachment.html From news at wysiwygnews.com Thu Oct 16 09:34:09 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Thu Oct 16 09:34:18 2008 Subject: WYSIWYG NEWS - 16 October, 2008 Message-ID: <5C980AE42F38704494A3D4FD9A6F2E7B03330792@STAWINCOMAILCL1.staff.vuw.ac.nz> Subject: 29 September, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. About two years ago, while in Sydney waiting for my son David to recuperate from Surgery, I took a train to he RAAF's biennial air show at Richmond, NSW. On Saturday 5 Oct with David and Rowena, Grace and little Isaac, we drove the seventy or so kilometres from the North side of Brisbane to RAAF base Amberley, just a little to the East of Ipswich. So, it seemed did almost every other vehicle owner in Queensland. The first part of the journey went smoothly enough, until just before Ipswich. On the Cunningham Highway, we ran into the tail of the queue for parking, almost 10 km from the airfield. It was a bright clear Brisbane day, one of those whose beauty carries with it the threat of thirst or heatstroke later in the day. The authorities had closed of the highway to traffic in the other direction, thus doubling the capacity of the road by having traffic on both sides of the median strip go towards the airfield. However, as any student of the theory of constraints can tell you, it was never the capacity of the freeway that was the problem. Instead it was the speed at which the four or five large paddocks designated as car parks could be made to accommodate so many vehicles in an orderly fashion so that people could fid their cars afterwards, and get on the road home. Volunteers marshalled us into orderly rows, and soon we were carrying our picnic chairs and bottles of cold drink across the road and onto the base. Despite our early start, there were still many thousands of spectators there before us. Eventually we found a spot in the designated zone along the flight line where we could set up. There were at least three or four rows of people with their chairs and sun umbrellas between us and the fence line, so that was a bit of a barrier to the best photo opportunities. And the sun beat down. As much as the people in front were a nuisance with their sun umbrellas, you could understand the necessity for them. Aircraft on display ranged from quite old (A Lockheed A28/29 Hudson, A Commonwealth Winjeel, North American P51 Mustang, a de Havilland Vampire, a Gloster Meteor, an English Electric Canberra, a Lockheed P2V Neptune, and a Lockheed L1049 Super Constellation) to the quite new (Boeing's mighty C-17 Globemaster). Some rapidly aging, but still front line equipment in this part of the world included F-111, F15, and F16 fighters. All very noisy and lots of fun for the boys. I am not so sure that all the ladies or children in the crowd were quite as enthralled. Comparisons are, as the old saying has it, odious. Nevertheless, Amberley suffered in my view from a much slower throughput of items than the cracking pace set by Warbirds over Wanaka last year, or the RAAF display at Richmond NSW two years earlier. However the biggest problem for me was beyond the control of the organizers. Despite the reported Ipswich temperature of around 28 degrees, my subjective judgement said nearer 35. The natural climate may well have been augmented by the heat storage abilities of all those acres of runway which cooked the crowds from the bottom up, even as the sun baked us without mercy from above. When Rowena judged that the children had reached their limit, David and I intended to help her move the all the equipment to the car and then watch the rest of the show before coming home by rail. By the time we got back to the car, we looked at each other and without the need for much debate, surrendered. We climbed in the car and went home with the family, knowing as we did so that items we wanted to see were happening on the runway. This was just too uncomfortable for human habitation. We surrendered and came home with the consolation that we beat the return rush. Recovering later in the cool of the house, we consoled ourselves as we edited the hundreds of images we did capture on our respective digital cameras. The next weekend, by a happy coincidence, I was able to attend the wedding of a friend and former colleague who struggled alongside me as we each scrambled to complete our doctoral theses a few years ago. Geoff had been kind enough to be my academic host during my time in Brisbane, so it was great to be able to celebrate this joyous occasion as he and Tonya commenced married life together. The venue chosen for the wedding was the pretty little town of Maleny, near the Glass House Mountains to the North of Brisbane. Out past Australia Zoo, the road took us into some pleasant and hilly rural land, predominantly used for growing pineapples, sugar cane and some mangoes. The venue was named "the House of Laurels". I asked one of the staff where all the Laurels were, and was told that although they once had a big laurel tree, it died. It should have come as no surprise then, that the cottage in which I stayed (Peacock Meadows) had no visible peacocks. That aside, the venue performed its task admirably, and the event went very smoothly despite the rain that fell throughout. A marquee had been obtained as the weather forecast became more certain, and as I understand it, the additional cost was shared among the three weddings at the site that weekend. The seats were of the moulded plastic variety, and were covered with elegant white drapes and ribbons, thus cunningly concealing the fact that some of them, situated under joins in the canvas, had filled with water. I discovered this by empirical methods, as I attempted to function as a sort of de facto wedding photographer. I was glad I was wearing black trousers. Tan Chinos would have presented an unsightly spectacle as I squelched up from the chair. Happily, it was not cold, and the trousers either dried out or I became acclimatised. Did I mention that I was also designated as master of ceremonies (MC)? So it fell to my lot to keep things moving, and to cue the movement of various people from place to place as required, and to invite the right people to make witty speeches at the right time. All went well in my judgement, and it was a happy occasion for everyone. Geoff and Tonya are away on their honeymoon now, so I left them a CD of wedding shots. A million other digital cameras at the occasion were firing off continuously so somewhere amongst all those electrons, there must be some good shots. And now, two and a bit months and one very fast trans-Tasman flight later, I am back home in Wellington, exhausted, pleased with my experiences, and very glad to be home. Grandchildren Maggie and Cooper at the airport with a bunch of flowers was a lovely touch to the homecoming. Normal service with a New Zealand flavour should resume soon. ---- 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 former Upper Hutt resident, Brian Newport now in LA. Thanks Brian. ---- On with the News. Monday, 29 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ MINOR PARTIES OUTRAGED AT DEBATE SHUT-OUT ----------------------------------------- The majority of the minor parties are angry over moves by Labour and National to have them excluded from a leaders debate. TV3 has decided to cancel its planned all leaders debate, after National leader John Key and Labour leader Helen Clark refused to appear with any minor parties. However TVNZ will host a 90 minute debate between just Miss Clark and Mr Key on October 14. Mr Key is making no apologies for the move. He says it is going to be an election where people are going to want to compare his leadership directly with that of Labour's leader. He says such a head on head debate gives New Zealanders more clarity than would be possible if all eight party leaders were present. The minor party leaders are infuriated with the two major parties. Maori Party co-leader Tariana Turia says TV3's decision to can the debate is principled. She says the decision by the two old parties not to join in shows extreme arrogance and is taking away the level playing field where all parties can debate the issues. Green Party co-Leader Jeanette Fitzsimons says it is an affront to democracy given it will be the minor parties that determine the outcome of the election. She says the National and Labour leaders have clearly colluded, describing it as bully boy tactics and an affront to democracy. ACT leader Rodney Hide is accusing Miss Clark of trying to have an election with no political debate. He says it is shocking Mr Key has gone along with the plan. Mr Hide says the National leader has to accept some responsibility for shutting out dissenting voices and not allowing New Zealanders an informed vote. United Future leader Peter Dunne, who has always scored well in debates, is going so far as to compare it Zimbabwe. He says there Mugabe stole and election, now Miss Clark and Mr Key are trying the same here. He says the minor parties will dictate which of them is the Prime Minister after November 8. The firebrand Winston Peters is not getting into debating debates, but says he is willing to debate the real issues of the campaign, any place any time. He says it might surprise the media that the election is about real people and not reality TV nonsense. (If I had been in the country at the time, I would have cheered. In principle, the small parties are right. For all practical purposes, I find them almost irrelevant. - BH) FARMERS WANT $150 A LAMB ------------------------ A new campaign pushing for a price of $150 a lamb has been launched in Hastings. Federated Farmers meat and fibre chairman Bruce Wills says the average lamb price received by farmers over the past three years has only been $55. He says the industry has suffered long enough and it is time to do something about it. Mr Wills says the poor returns have caused many to leave the industry, forced freezing works to close and caused huge losses to the economy. He says while the $150 target will not be easy to meet, Federated Farmers believes it is necessary to restore viability to the sector. (I would like a new Jaguar too, please if there are any wish granting fairies in the neighbourhood - BH) GANGS BAN DEPENDS ON AUSSIE SUCCESS ----------------------------------- Corrections Minister Phil Goff says a law banning gangs will only be introduced if it is proven to work. He and Police and Justice Minister Annette King have this morning met with South Australia's Premier Mike Rann, to discuss a new law which bans gangs in his state. Mr Goff says if the South Australian legislation is successful, it will be implemented in New Zealand. He says the Government has been working to strengthen laws since it was elected, and the consideration of the legislation is not an election ploy. The Corrections Minister says statistics show that 75 percent of those involved with drugs are gang members or associates. He says the foot soldiers are bad enough, but its the colonels and the generals that authorities are after because they are the ones that stay behind the scenes and do not get caught. He says gangs are most sophisticated than most people realise. Mr Goff says every murder in New Zealand is on the front page, because it is still an unusual occurrence, unlike other countries. He says the Government has taken a tough stance against crime and says he is not interested in "gimmicks" that are continually played up in the media. (This eludes me. If it is a good idea, what has Australia got to do with it? - BH) MASTERTON-AUCKLAND AIR LINK --------------------------- Air New Zealand is planning direct flights between Masterton and Auckland. The Wairarapa service begin on Monday February 16 and will operate six days a week using a 19 seater Beech aircraft. It will be run by Air New Zealand's subsidiary Eagle Air. General Manager Grant Kerr says there are a number of businesses in Masterton that have strong connections in Auckland, but he is also hoping the service will attract tourists to the Wairarapa. ?Wairarapa region is an extremely attractive destination for both New Zealand and international travellers. Customers wanting to spend a weekend in wine country or attend events such as Toast Martinborough will now have the advantage of being able to fly into the region directly, rather than having to fly into Wellington or Palmerston North and then travel by road. The cost of a flight between Auckland and Masterton will initially be $105 each way. The following schedule is effective 16 February 2009: Masterton-Auckland 0705 0820 Monday-Friday Auckland-Masterton 1830 1945 Sunday-Thursday Auckland-Masterton 1900 2015 Friday only Masterton-Auckland 2030 2145 Friday only SUPER FUND LOSES $716 MILLION ----------------------------- The multi-billion dollar Government super fund - the stash of taxpayers dollars set aside for future pension payments, has seen investment returns go backwards by nearly 5 per cent in the past year. In its annual report released today, the Guardians of New Zealand Superannuation Fund - also known as the "Cullen Fund" unveiled annual returns of minus 4.92 per cent, a loss of $716.5 million. Government contributions of just over $2 billion during the year meant the fund still grew from $13.1 billion to $14.1 billion, despite the fall in investment returns. But double digit returns since it was set up in 2003 means the annualised rate of return is still a healthy 10.3 per cent. Last year's return was 14.58 per cent - a gain of $1.6 billion. In the fund's "Statement of Intent" it estimates its annual return will be 8.1 per cent and it expects a performance like this year's result to happen "perhaps one in every 15 years". Fund chief executive Adrian Orr said that people were "naturally interested in how the fund had performed through the more recent market turmoil, since mid-June. Over July and August, we returned around 0.23 per cent, a small but positive number. However, the market has remained volatile through September," he said. "We are going through a significant and rapid rearrangement of the global financial system. These are dramatic and unsettling times. Even then, however, the aggregate impact on the fund, while not pleasant, is not outside the bounds of our long-term expectations to date." Investment opportunities for a long-term fund like the fund were on the rise, said Orr. Fund chairman David May stressed that today's result comes after four years of "significant outperformance." "The fund has been impacted in the short term by the turbulence in the global equity markets. The negative impact comes despite our lack of any significant exposure to the subprime market, the finance company sector, or to the liquidity strains suffered by many financial institutions. May said the fund deliberately invested in world share markets because the guardians expected that they would perform best over the long term. "The fund's long-term horizon means it is well placed to withstand ups and downs in the market. The board remains confident that this remains the right approach and that the appropriate response to the credit crisis is to remain calm and ready to benefit from the more favourable risk and liquidity premia in the years ahead." The super fund's result is better than the Government Superannuation Fund, which invests pension money for government employees. On Friday it announced an after-tax deficit of $260.9 million - a minus 6.9 per cent return which it also put down to falling share markets. NO QUICK FIX FOR FARMERS AFTER STORMS ------------------------------------- The storm damage caused to North Canterbury farms during the winter is expected to take years to repair. Millions of dollars worth of damage was caused to farmland and roads from flooding in July and August. Chris Sundstrum, the president of North Canterbury Federated Farmers, says although farmers have started the clean up, slips have destroyed many tracks and fences. He estimates the patch up work will take around four to five months but there will be ongoing issues. Some land will never be able to be used as pasture again and may have to be planted with trees. Mr Sundstrum says farmers are feeling the strain financially as many were still recovering from last summer's drought when the flooding struck. HIGHER PRICES LOOMING FOR MAINLANDERS ------------------------------------- Contact Energy is warning South Islanders of rising power prices. An analysis by the company shows there are two separate energy markets developing, with significant price differences for power in the North and South Islands. Contact Energy's communications manager Jonathan Hill says electricity demand has been growing rapidly in the South Island over the past ten years, but generation has grown by just 185- megawatts. That compares to more than 2,000 megawatts in the North Island. Mr Hill says much of the mainland's power is now coming from the North Island, which is a problem for the aging Cook Strait cable. "The impact of that is higher wholesale electricity prices in the South Island from which retailers like Contact need to buy electricity to supply to their customers. So we're seeing higher average wholesale prices in the South Island which will inevitably flow through to consumers." TIME RUNNING OUT TO ENROL TO VOTE --------------------------------- The hundreds of thousands of people not yet enrolled to vote are being urged to get a move on. The enrolment cut-off date to be on the printed electoral roll and be sent an EasyVote card in the mail is looming, with just ten days to go. The enrolment centre says 36,000 people have enrolled or updated their information since the election date was announced, but there are still 235,000 who have not. Murray Wicks National Manager of the Electoral Enrolment Centre says everyone enrolled by Wednesday, October 8, will get a pack in the mail with the information they need to vote, which will make it quicker and easier at the ballot box. NATIONAL'S POLICIES "VAGUE" --------------------------- A political scientist is sceptical about whether John Key's promise to abolish the Maori seats is realistic. The National leader says if his party gets into power it will settle all historic Treaty of Waitangi claims by 2014. Mr Key says National will then begin a constitutional process to get rid of the Maori seats and put everyone on the same electoral role. Dr Alan Simpson, political scientist at Waikato University says no government could just come in and abolish the Maori seats, as it is a constitutional change that would have to be debated in Parliament. He believes the policy is more on National's wish-list and that the party is probably using it to set up a negotiating stance with Maori. National also plans to repeal the Electoral Finance Act and hold a binding referendum on MMP by 2011. PROPERTY DEVELOPERS FACE CASH FLOW CRISIS ----------------------------------------- Some South Island property developers are facing a cash flow crisis due to the global credit crunch. Director of the Massey University Real Estate Analysis Unit Prof Bob Hargreaves says developments such as Pegasus Town in North Canterbury may slow because people have lost confidence in property. He says developers need to be able to pre-sell parts of their development to keep on track. He says because people have stopped buying and developers have borrowed millions, banks are now worried about receiving re-payments. Pegasus Town is intended to house more than 5,000 residents. It is situated around a man-made lake extending to the shores of Pegasus Bay and will feature cafes and restaurants, shops, a resort hotel, yacht and golf club. SHOPPERS PREFER KIWI-MADE ------------------------- Loyalty is high on the list for many people when they hit the shops. A Research New Zealand poll of more than 500 people shows nearly two-thirds of consumers try to buy New Zealand- made products and 59 percent make a point of buying New Zealand-made goods. An additional 13 percent say it depends on the product. Research New Zealand Director, Emanuel Kalafatelis, says it shows that, despite increased globalisation, many New Zealanders still feel a loyalty towards locally-made products. He says consumers in provincial and rural areas are more likely to make a point of buying New Zealand-made. (There seems to be a certain amount of xenophobia in this. People seem to be shying away from foodstuffs from China, and to some extent, the cheaper tangible products from that source. Of course, the many top brand products that carry a discreet "made in China" label pass without comment. - BH) MAORI PARTY NOT DETERRED BY NATIONAL'S PLANS -------------------------------------------- The Maori Party is not ruling out working with National, despite leader John Key's bid to abolish the Maori seats. National says it will introduce policy that aims to have all historic Treaty of Waitangi claims settled by 2014 and will then begin a constitutional process to get rid of the Maori seats. Maori Party co-leader Pita Sharples says the plan is six years away and until then, his party will work with whichever party supports the best interests of Maori and New Zealand. He says the Maori seats are still needed to give Maori a voice, because Maori MPs in major parties are bound by different interests. However, Labour doubts a National-led government would be able to settle all treaty claims by its deadline. Treaty Negotiations Minister Michael Cullen says Labour plans to settle the claims by 2020 and even then will be pushing it, so he doubts National's deadline would work. He says it is rare for treaty negotiations to be quick, given the stages each one has to go through. (Why does the fable of the scorpion and the frog come to mind? - BH) Tuesday, 30 September 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ CULLEN BELIEVES IN STRENGTH OF NZ ECONOMY ----------------------------------------- Finance Minister Michael Cullen says the New Zealand economy is strong and should withstand the turmoil on Wall St. The New Zealand stock market has dropped more than four percent as the impact of the overnight melt down on Wall St makes its mark. The slump is on the back of the US Government voting down a $700 billion rescue package. Dr Cullen says there will be some impact here but he is ever hopeful that the Americans will come up with a some sort of a solution. He says Congress has to sort out a package because if it does not the financial crisis will roll into a much more significant economic crisis than we have seen so far. National leader John Key says it is a serious and concerning issue that will have implications on the New Zealand banking sector's ability to source liquidity. He says a Government under his leadership would consider intervening to protect financial systems, should it be needed. MP CONFIDENT FINE WILL DETER GANGS ---------------------------------- New Zealand First MP and chairman of Parliament's Law and Order Committee is confident a $2,000 fine will deter gang members from wearing their patches in the streets of Wanganui. The committee is recommending the ban on the wearing of patches or gang-affiliated clothing in the city become law, however MPs will not vote on the proposal until next year. Committee chair Ron Mark says the fine is satisfactory, but if gang members failed to pay it, further charges could be laid under the Crimes Act. He says options could include imprisonment or community work, which gang members hate. Wanganui mayor Michael Laws says the bill survived assault from civil rights activists in Wellington because it represents the views of the Wanganui community. He says it is time for Parliament to declare gangs illegal terrorist organizations. (It is worthy of note that the total of unpaid fines in NZ is currently estimated at $780 million - BH) FIELDAYS GENERATES BIG BUCKS FOR ECONOMY ---------------------------------------- An independent study has found that this year's National Fieldays at Mystery Creek near Hamilton generated $865 million for the economy. The Management Research Centre at the University of Waikato has found the Waikato region gained $265 million of economic benefit. Professor Frank Scrimgeour and Associate Professor Stuart Locke say the record attendance numbers of more than 131,000 people resulted in $285 million in general sales. There were reported export sales of more than $117 million, up from $50 million in 2007. The survey also found that 33 percent more new products were launched at the event compared with the previous year. Next year's Fieldays will be held from June 10-13 and exhibitor sites go on sale in November. The theme for 2009 will be "My Land, Our Environment." NZX50 PLUNGES ------------- New Zealand's sharemarket has plunged 145 points in the first 20 minutes of opening following the US House of Representatives failure to pass the bailout plan for financial markets. The companies suffering losses on the NZX50 so far include Contact Energy down 38 cents to $7.91, Westpac $3.00 lighter on $25.50, ANZ down $2.29 to $20.40, Fletcher Building down 31 cents to $6.60, PGG Wrightson has lost 12 cents to $1.62, Auckland International Airport is down 5 cents to $1.94 and Air New Zealand down 4 cents to 96c. NEW IMPORT RULES IN WAKE OF TAINTED FORMULA ------------------------------------------- The Food Safety Authority is introducing new rules concerning imported food in the wake of China's infant formula scandal. Since early last week, all identified consignments of products containing dairy ingredients originating in China have been stopped by Customs, pending approval from NZFSA. Importers will now be required to provide the authority with confirmation that the products containing Chinese dairy ingredients currently on the market and those they intend to import, meet New Zealand standards. Investigation and Compliance Director, Geoff Allen, says shipments will be held at the border until the authority approves their release, to aid the identification of any products that could contain the toxic chemical melamine and stop its entry into New Zealand. Four Chinese babies have died after consuming melamine and more than 54,000 other children have fallen ill. Mr Allen says the new rules will ensure New Zealanders are consuming safe dairy products. Meanwhile, New Zealand company Tatua Co- operative Dairy Company based in Morrinsville has suspended exports as it investigates how dairy protein lactoferrin became contaminated by melamine. Last night, confectionery- maker Cadbury recalled chocolate products made at its Beijing factory from shelves in Hong Kong, Taiwan and Australia because of the melamine scare. It is not immediately clear whether the items are sold in New Zealand. POWER PRICES SET TO RISE ACROSS AUCK ------------------------------------ Household power bills are set to rise across much of Auckland. Mercury Energy is raising prices in central Auckland, Manukau and Papakura by between two and six percent, adding $5-$6.50 to the average power bill each month. The company says the increase is to cover general rises in operating costs. Meridian Energy raised its prices by six percent at the beginning of September and Contact Energy increased prices by four percent in May. TAX CUTS LIKELY TO GO TOWARDS GROCERIES --------------------------------------- Many households are likely to spend tomorrow's tax cuts on grocery bills. The cuts will give a full-time worker between $12 and $28 more per week in their pay packets in the first round of the government's personal tax cuts. Budgeting advisor Darryl Evans says putting food on the table is the number one concern among the people he sees. "Families are finding it harder and harder to put good food on the table so the tax cuts will be especially good for more vulnerable and low income families and I would have thought that the money would have gone directly into the food shop." Mr Evans says although savings accounts will not benefit from the cuts, at least fewer people will go without food. Wednesday, 1 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ FUEL PRICES DROP ---------------- Filling up your car has become a little cheaper. The major oil companies this afternoon reduced pump prices by six cents for both fuel and diesel. 91 is now $1.88.9 and diesel is down to $1.47.9 (I was in Australia when this was reported. Prices in Queensland were typically around AUD$1.35 on Tuesdays, AUD$1.41 on Saturdays. - BH) CRIME RESOLUTION RATE RISES TO 47 PERCENT ----------------------------------------- Police have resolved nearly 10,000 more offences in the past year. The latest crime statistics show the resolution rate for offences has risen from 45 percent to 47 percent. A marked 29 percent increase in family violence has pushed violent crime up by 11 percent in all districts. Methamphetamine offences have dropped 18 percent, down again since their peak two years ago. Across the country, districts report tagging and graffiti is the driver behind an increase in property damage, which follows a three-year trend. Police Minister Annette King says officers are doing a fine job resolving crime. She says even better is the fact the crime rate has dropped by one percent. Mrs King believes it is a sign the way police are working with communities is paying off. She also attributes the improvement to the fact almost 2,500 extra staff have been added to the police force. The Police Minister says while rates of violent crime are up, particularly in the category of assaults, she believes it is due to the fact people are now choosing to report domestic abuse offences more often than in the past. LACK OF SOE TRANSPARENCY CRITICISED ----------------------------------- The Government is being taken to task for a lack of accountability in the financial performance of state owned enterprises. Parliament's Commerce Select Committee has published a scathing report, which says the lack of transparency in the management of SOE portfolios is indefensible. The committee says it would be cheap and easy for better financial performance reports to be published, but the fact it is not being done demonstrates improving transparency is not a Government priority. It says if performance in managing assets is not being measured, then it is likely that high performance is not being achieved. WESTLAND MILK PRODUCTS HAS RECORD SURPLUS ----------------------------------------- Westland Milk Products has announced a payout to its suppliers of $8.29 for the past season. It is reporting a record distributable surplus of $356 million, up 2.3 percent on the previous year. Chairman Ross Scarlett says the record payout is mostly the result of buoyancy in international markets, but the company's strong performance also played a part. He says commodity prices peaked then softened, as higher prices encouraged farmers to produce more milk but discouraged consumption. Mr Scarlett says the situation is worrying ahead of the next season, given it is too early to know what impact the US financial crisis will have on the global economy. A FURTHER $121 HANDED TO KIWIRAIL --------------------------------- The head of KiwiRail has an extra $121 million in taxpayer dollars to play with. New Zealand Railways Corporation chairman Jim Bolger says the Government has announced the extra funding today. It is a five year package and is on top of existing commitments. Mr Bolger says the $121 million will allow the corporation to expand its business in both the freight and public transport markets. In May, the Government paid $665 million to buy rail back from Toll Holdings. BOARDS OF TRUSTEES SLAM PPTA REPORT ----------------------------------- A report from the Post Primary Teachers Association is being described as biased and short on facts by the Schools Trustees Association. The document entitled Tomorrow's Schools, Yesterday's Mistakes is being released at PPTA's annual conference. It carries a recommendation that an inquiry into the Tomorrow's Schools reforms be undertaken. School Trustees Association president Lorraine Kerr says the paper blames more than 2,400 boards of trustees for everything the PPTA sees as being wrong with the education system. She says there are all sorts of reports out, which show boards of trustees do a fantastic job given the constraints they are under. ALTERNATE THYROID TREATMENT LOOKED AT ------------------------------------- People with thyroid problems may soon have another option of treatment. Pharmac is looking at introducing an alternative to the Eltroxin brand that is currently funded. The proposal involves listing the Goldshield brand of levothyroxine, which is widely used in the UK. Pharmac Medical Director Dr Peter Moodie says it has been brought about because some people appear to have troubles with the original brand. He says two dosage strengths of Goldshield, 50 and 100 micrograms, would be listed under the proposal. "MARKET TURMOIL" HALTS MEAT FIRM DEAL ------------------------------------- Market turmoil is being blamed for a delay in the merger of the country's largest meat firms. PGG Wrightson has advised Silver Fern Farms that it is not able to complete the transaction. It was set to take a 50 percent stake in the company this week. In a written statement, PGW says it is committed to industry consolidation but has its hands tied by the instability in the global and domestic financial markets. ARRESTING PROCESS BECOMES LESS INVASIVE --------------------------------------- The days of being marched down to the police station after being arrested for a minor offence could be numbered. The new Policing Act takes effect today, updating 50-year-old legislation. Police now have the ability to record a suspect's identification by taking ID photos and fingerprints at locations other than a police station. Police Commissioner Howard Broad says sometimes it is not necessary to take an offender to a police station and the new move is designed to make the arresting process less invasive. (I suppose that the flexibility is a good thing from an administrative point of view, but is being arrested supposed to be a kind and gentle process? - BH) RESERVE BANK SAYS NZ'S BANKS SOUND ---------------------------------- The Reserve Bank believes New Zealand's banking system remains sound, despite turmoil on world markets after the US House of Representatives failed to pass the $US700 billion bailout bill. Around $1.3 billion was wiped off the value of the New Zealand stock exchange yesterday after Wall Street investors took fright, resulting in the Dow Jones Industrial Average plunging 778 points, its worst-ever one day loss. Around $US1.2 trillion in market value was wiped from the index, but this morning, the Dow has bounced back, gaining 287 points to 10,653. Congress' rescue plan involved the US Treasury buying bad mortgage debt from banks, freeing them up to start lending to each other again and relieving credit markets. A majority of House Democrats supported the rescue plan but most House Republicans opposed it. Last week, Conservatives said it amounted to government intervention in the free market and American taxpayer money should not be spent to help banks. They argued the bill was being progressed too rapidly. Reserve Bank Governor Alan Bollard has expressed disappointment with the US leaders, saying their decision has left parts of the financial market in limbo. He says liquidity measures introduced over the past year are handling the pressures from the global markets. In a written statement, Dr Bollard says the Reserve Bank is monitoring the situation very closely and he would consider a local bailout package for banks if it got to that stage. US President George Bush is vowing to revive the bailout plan and a modified scheme could be voted on this week. WAITANGI WELCOMES NZERS FREE OF CHARGE -------------------------------------- The birthplace of the nation is welcoming New Zealanders free of charge. From today and for the first time in 70 years, New Zealand residents will no longer have to pay the $12 entry fee to enter the Waitangi Treaty Grounds in the Bay of Islands. Waitangi National Trust CEO Jeanette Richardson says there has been a charge in place since the 1930s and it has taken many years of sound financial management and planning to reach this stage. Ms Richardson says New Zealanders can also look forward to an expanded offering of activities when they visit Waitangi this summer. Overseas visitors will still have to pay an admission fee of $20. (We should welcome our guests free too. - BH) CHINA TRADE DEAL AND TAX CUTS START TODAY ----------------------------------------- A raft of new Government measures take effect from today. Tax cuts and the Free Trade Agreement with China come into force. Tariffs on 35 percent of exports will be set at zero. Within five years two thirds of exports will enter China tariff free. Trade Minister Phil Goff says the contamination of China's milk supply has shown that New Zealand businesses investing in joint ventures need to ensure they have control over production. He says companies also need to be fully aware of the difficulties of doing business in China. Mr Goff says China is New Zealand's biggest supplier of fee paying international students, so it is important the relationship between the two countries remains strong. It is also International Day of the Older Person and ACC is introducing changes to help the over 65s who are still working. In most centres SuperGold Card holders will be eligible for free off peak public transport. The move affects half a million superannuitants. Auckland Regional Transport Authority communications manager Sharon Hunter says buses, trains and harbour ferries are a critical means of getting about for many seniors. She says the Government has allocated $18 million per annum for each region for the initiative. Card holders are able to travel at anytime during the weekend. The new Policing Act comes into effect, updating legislation that is 50 years old. The country's rail industry will operate under a single banner as the government's buy-back comes into force. Thursday, 2 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ NATIONAL PLEDGES $15 MILLION FOR HOSPICES ----------------------------------------- National is promising to increase the funding for hospices by $15 million. Leader John Key says it will help hospices continue to provide terminally ill patients and their families with the services they need, and help meet the challenge posed by an aging population. Tauranga's Waipuna Hospice is welcoming the campaign promise. Chief Executive Richard Thurlow says they currently receive about 55 percent support through their DHB. He says National's promise would increase funding to almost 70 percent. "You know we're realistic. It's going to be hard for any Government to suddenly jump to full funding, but one day we would really like to see that. It would take a burden off the community that, certainly at this economic time, is finding it very tough." Mr Thurlow says a lot of credit should go to their national body, Hospice New Zealand, which has been busy lobbying politicians. (Hmm ... 38 hospices in NZ, that's about $395,000 per hospice. Better than nothing, but not the great leap that the number suggests at first sight - BH) OMBUDSMAN FLOODED WITH ING COMPLAINTS ------------------------------------- The office of the Banking Ombudsman has been inundated with complaints against ING. ING's funds were frozen indefinitely in March. A large number of the complaints relate to ANZ financial planners who recommended the firm. ANZ owns a 49 percent stake in ING. Acting Ombudsman Susan Taylor says about half of its current work load related to ING. She says they are trying to reach settlements for those suffering severe financial hardship as a result of the freeze first. CONTRACTORS PICKET TELECOM AGM ------------------------------ Line workers contracted to Telecom are demanding that their employer sort out issues with the telco giant before they lose their jobs. Last week, Transfield announced it was planning to make 170 workers redundant, due to issues arising from its contract with Telecom. Transfield workers held a protest outside Telecom's annual general meeting in Wellington this morning to demand action. Joe Gallagher from the Engineering, Printing and Manufacturing Union claims Telecom is using aggressive tactics in negotiating its contract with Transfield. He says Telecom seems to be about short term gains, instead of securing the future New Zealand's infrastructure. Mr Gallagher says Transfield is considering leaving the telecommunications industry altogether, resulting in 1,400 job losses. WELLINGTON GETS NOD FOR SUSTAINABILITY -------------------------------------- Wellington is being recognised as an international trailblazer on sustainability. It is the only New Zealand city to rate a mention in a survey carried out by business ethics and anti- corruption promoter the Ethisphere Institute. It has selected Wellington as one of 10 mid-sized cities around the globe walking the talk on green initiatives. The institute's magazine mentions Wellington's well-established public transport system and the Southern Landfill project, which generates electricity through gas produced from waste. Other mid-sized cities to rate a mention include Copenhagen, Edinburgh, Helsinki, Oslo, and Rotterdam. HEADS IN THE SAND OVER VIOLENCE SAYS MP --------------------------------------- New Zealand First is not happy with the Government's explanation of rising violent crime rates. The Government is attributing a 11 percent increase in violent offending to increased reporting of domestic violence but MP Ron Mark says that is downplaying the issue and is a head in the sand approach. Mr Mark says the figures show what most people already know - that the streets are becoming more violent. ZERO TOLERANCE TO YOUNG DRUNKS SAY POLICE ----------------------------------------- Wellington police are concerned by latest statistics which show alcohol-related crime is on the rise. The figures show crime is down 1.5 percent in the Wellington region as a whole, but property damage is up 12 percent, drugs and anti-social offending has risen eight percent and violent crime is up three percent. Superintendent Pieri Munro says many of the disorder and violent offences are alcohol-related, stemming from drunken young people. He wants them to know police are now taking a zero tolerance approach. Friday, 3 October 2008 ~~~~~~~~~~~~~~~~~~~~~~ CHILDCARE ISSUE HUGE FOR SHIFT WORKERS -------------------------------------- Employers are being encouraged show more flexibility to help out shift workers. A Families Commission report called 'Juggling Acts' says employers need to talk to their staff a lot more about their childcare needs. Deputy Chief Commissioner Sharron Cole says work-life balance is a huge issue for families and remains a major focus of the Commission. She says the days of parents working 9am-5pm have gone. Ms Cole says employers need to start accepting that and consider how they can retain staff who have children. "We talk about the importance of productivity but we also talk about the benefits of having full employment. So, the flip side of the coin is what do we need to do to attract and then keep these workers." RESERVE BANK IN GOOD FINANCIAL HEALTH ------------------------------------- The Government is set to get a sizeable dividend from the Reserve Bank after a good financial result from the institution. The Reserve Bank has released annual report revealing a $535 million surplus for the past financial year. It is proposing to pay a $168 million dividend to the Crown from its profits. The move is subject to confirmation by the Minister of Finance. MELTED CHEESE ON TOAST AFFORDABLE AGAIN SOON -------------------------------------------- Cheese sandwiches could be back on the household menu soon, with the global economic downturn expected to reduce the price of dairy products. Fonterra has reported a 10 percent drop in the price for whole milk powder. The price of the product has fallen 34 percent since July. Analyst Roger Kerr says while the downturn is good for consumers, it is not so good for New Zealand's economy. He says if the country is going to pull itself out of the current recession, it needs an export-led recovery. The original rise in the price of dairy products was driven by demand from emerging markets and the squeeze on dairy production due to the growing of biofuels and Australia's drought. RESERVE BANK SETTING UP AUCKLAND BASE ------------------------------------- The Reserve Bank may set up shop in Auckland. The central bank has an alternative site in the capital to cope with outages at its offices on The Terrace but the agency's annual report says it would not be adequate if a major disaster affected the Wellington region. It hopes to complete plans next year for establishing essential services in Auckland. Monday, 6 October 2008 ~~~~~~~~~~~~~~~~~~~~~~ SHOCK AND AWE AS GOVERNMENT PICKS BIG DEFICITS ---------------------------------------------- Finance Minister Michael Cullen has opened the Government books, and revealed big cash deficits for years to come, with next year's being well over double the Budget forecast, at almost $6 billion. The books show inflation will peak at 4.5 percent next year before falling back. Government spending will balloon and tax revenue will be down as the economy slows. The cost of benefits will also rise because of higher unemployment. However Dr Cullen says New Zealand is in a better shape than many other countries to weather the economic storm. He warns it is not a time for rash political promises. National is accusing Dr Cullen of mismanaging Government affairs, by focussing on spending rather than on policies which would improve productivity and drive growth. Finance spokesman Bill English says the projections are much worse than anyone expected, and spending plans will need to be looked at carefully. Talking to Newstalk ZB's Larry Williams, he described plans for a substantial investment in Foreign Affairs as "a big target." Party leader John Key says decent tax cuts will still be affordable, but is waiting until Wednesday before revealing what National will offer. He admits the party is re-evaluating its policies following today's news. Business is gloomy at the figures. Roger Kerr of the Business Roundtable says in the long-term, the projections are very mediocre. He says the forecast of two and a half percent growth in the next decade, and no increase in productivity means the idea of New Zealand closing income gaps with Australia is no longer a prospect. Roger Kerr says New Zealand should have been thinking long ago about how to keep inflation lower and how to boost productivity. Key points from the finances are: A cash surplus of $2 billion in the year to June, falling to a projected deficit of $5.9 billion in 2008/2009 and further deficits over the next four years. The deficit is projected to reach $7.3 billion by 2012, roughly twice was what estimated in the Budget. Gross government debt to rise from 17.4 per cent of GDP to 24.3 per cent by 2013, accompanied by a 23 percent decline in the value of the New Zealand dollar, with 90-day interest rates down to 6.3 per cent by then. Unemployment at more than five percent by 2010. AIR NZ TO SUSPEND SOME HAMILTON FLIGHTS --------------------------------------- Air New Zealand will suspend its flights from Hamilton to Sydney and the Gold Coast for seven months next year. It says the move is because traditionally there is lower demand between late March and late October. The airline also points out there is an oversupply of trans-Tasman capacity from Auckland. Spokesman Glen Sowry says Waikato residents are either not travelling as much as they used to - or they are setting off from Auckland. There will still be twice-weekly flights to and from Brisbane. BOOKS REVEAL CULLEN'S MISMANAGEMENT - NATS ------------------------------------------ National says the opening of the Government's books has confirmed New Zealand can no longer afford big-spending, low- growth policies. Finance spokesman Bill English says the figures are an indictment on Michael Cullen's economic mismanagement. He says it is a day of reckoning for a Government which has focused on spending, and ignored the need for investment in future growth. Mr English says the view National has held for some time is that Labour's Budget this year was too optimistic. NATS PAROLE POLICY WILL NOT WORK - GOFF --------------------------------------- Corrections Minister Phil Goff has dismissed National's parole policy as ineffective, and says it will be too expensive. National plans to abolish parole for violent criminals sentenced to at least five years in jail, if they have previously been jailed for a serious crime. Phil Goff says under the current policy of preventive detention, the countries most serious offenders will either never be released or released only when they are too old and infirm to be of any risk to the public. He says it is time to put more spending and resources into preventing crime, rather than simply building more and more prisons. SALES UP, PRICES DOWN FOR AUCKLAND PROPERTY ------------------------------------------- Barfoot and Thompson says its residential property sales in Auckland increased during September. It says 559 houses were sold, up from 502 in August, which it says is in line with normal expectations of a springtime lift in the market. However the agency says its average sale price dropped back to below the half a million dollar mark for the third time this year. It was $496,000 for September, compared with $524,000 in August. Managing director Peter Thompson says the month started strongly, but there was a noticeable impact from the credit crisis in the middle part of the month. AXE LIFTED FROM HEADS OF PHONE ENGINEERS ---------------------------------------- Transfield has cancelled its redundancy plans, after reaching a deal with Telecom. The company was planning to cut the jobs of 170 telecommunications engineers. After protest action, the Engineering, Printing and Manufacturing Union says the two companies have reached an agreement. EPMU spokesman Joe Gallagher says the deal also means job security for all 1400 telecommunications workers employed by Transfield. He says they have agreed to top the contract up, and negotiate a longer term agreement going forward. Mr Gallagher says Transfield workers are relieved commonsense has prevailed. SCIENTISTS OFFERED VOLUNTARY SEVERANCE -------------------------------------- AgResearch, the largest Crown Research Institute, is offering voluntary redundancy to some scientists in an effort to save around $5 million in the current financial year. Chief Executive Dr Andrew West says AgResearch is now into the second phase of an internal review, which involves downsizing its complement of scientific staff and reviewing the number of office workers. The cost cutting programme has been forced by a downturn in the sheep and beef industries, leaving with unfunded flocks and herds of rare animals which it can no longer afford to maintain. He says $2 million has already been saved from operating expenditure, and cutting staff is the only way left to get back to a sustainable profit. Dr West says a profitable performance is imperative to sustain reinvestment in commercialisation of discoveries for the benefit of the pastoral sector. The CRI is also working on ways to improve productivity and aiming to achieve annual revenue growth of approximately 8 percent. Whilst jobs are going, AgResearch is maintaining a programme of pay rises for scientists of around 6.5 percent a year, in order for them to catch up with other professions. Dr West says there has also been a substantial rebuild of our laboratories, which began in 2005. By December AgResearch will have commissioned close to $60 million of new labs and glasshouses. (Good grief! I wonder how much it would cost to acquire the research currently generated by those scientists from elsewhere. And what is the value of the institutional knowledge lost? I have the strong suspicion that it will far exceed the $5 million "saved". Can we say "false economy"? - BH) NO EASY MONEY IN CASH BACK DEALS -------------------------------- The Commerce Commission is warning people to be wary of "cash back" offers on things like personal computers and printers. Cash back promotions are becoming increasingly common, and are often made by respected manufacturers working through large retail chains. The Commission says it has had a significant number of complaints from consumers who have had difficulty receiving their cash back, often waiting several months after they have been lured into making a purchase, before they get their money. Despite the complaints, Director of Fair Trading Adrian Sparrow says no breaches of the Act have been detected so far. But he says a lot of retailers and computer manufacturers are pushing the boundaries, and he warns the Commission will crack down on any who break the law. Mr Sparrow is also cautioning people influenced by the cash back offer to be aware of any terms and conditions in the small print. He says these terms sometime force buyers to "jump through hoops", although consumers have the impression the redemption process will be a relatively simple one. Retailers using cash back promotions are also being warned they cannot get away with denying responsibility when their customers are having problems. Adrian Sparrow says it is not good enough for retailers to distance themselves. He says they have a responsibility to ensure consumers receive the cash back. NZ WORKERS HALF AS PRODUCTIVE AS THOSE IN US -------------------------------------------- The productivity of workers in New Zealand has slumped to almost half that of workers in the United States. A Department of Labour report out today shows productivity at the workplace is among the lowest in the OECD. The figures show New Zealand's GDP per hour worked has fallen sharply to just 56 percent of what workers in US produce. Nearly all other OECD nations fare considerably better, with most other countries report their productivity is rising. The report says New Zealand is now in the unenviable position of having a large labour productivity gap. It suggests one of the causes may be having less skilled people taking up lower paid jobs. (GDP per hour is an interesting measure. What an hour of labour is converted to by way of value is often beyond the control of the individual worker. I would be astonished to learn of any evidence that the average kiwi works less hard in that hour than anyone else. In fact I suspect that in many organizations, much of the value of the person at the coal face is diminished through having to support so many central functions and template generators. - BH) NATIONAL'S POLICY - LIFE IN PRISON WILL MEAN LIFE ------------------------------------------------- Life will mean life, if National gets into power at next month's election. Leader John Key will unveil his party's policy on parole today. He is promising that the worst of the country's murderers will be locked up for life and parole will be abolished for the worst violent offenders. Mr Key says 144 people have been murdered since 2002. Ten of the murderers would have fitted into the non-parole category and include Graeme Burton who killed Karl Kuchenbecker in the hills above Lower Hutt in January 2007 and William Bell, responsible for murdering three people at an Auckland RSA in December 2001. National wants those convicted of violent crimes to be eligible for parole, only if it is their first offence for violence. National's plan would require a new $314 million jail which would cost more than $40 million a year to run. The Prime Minister is dismissing the policy. Helen Clark says the worst offenders are already covered by the preventive detention laws which are at a judge's discretion. She says there is also a separate issue in believing there is no space for repentance. (This seems to appeal to some sections of the community, but thoughtful voices are pointing to some problems. - BH) COMMISSION ACCUSED OF FAILING TO OFFER GUIDANCE ----------------------------------------------- An organisation which represents the aged-care residential sector claims the Electoral Commission is failing to offer guidance to lobby groups. Healthcare Providers, a not-for- profit group, wants to mount a campaign to encourage debate on future funding issues for the elderly. However, Chief Executive Martin Taylor says the organisation may have to stay silent for fear of breaking the Electoral Finance Act. "We want to be able to say which party is going to do the best for the elderly this election but we find that very difficult considering we're not getting any guidance from the Electoral Commission." Mr Taylor says the unfair aspect is that while the commission refuses to offer any guidance, it has the right to refer Healthcare Providers to police, if it feels a breach of the act has occurred. He says that is a loss of democracy. POTENTIAL HOMEOWNERS NEED BIGGER DEPOSITS ----------------------------------------- People who have been out hunting for their dream home over the weekend may be in for a rude awakening today when they make enquiries about a mortgage. Other banks are expected to follow ASB's lead this week and shy away from lending more than 80 percent of a home's value. Greg Scott from the Home Loan Shop says his phone always starts ringing on a Monday morning with people wanting to know whether they can get a mortgage for a house they saw at the weekend. He says they are now likely to be told they will have to keep saving. However, he believes there will still be some banks who will take a smaller deposit, as long as people have adequate cash-flow. VOTERS URGED TO GET ONTO ELECTROL ROLL SOON ------------------------------------------- Time is running out for voters to enrol for this year's general election. Around 220,000 people are yet to register and Electoral Enrolment Centre manager Murray Wicks says more than 93,000 of those are between the ages of 18 and 24. Many live in the Auckland Central, Dunedin North and Christchurch Central electorates. Mr Wicks says even although people can enrol right up to the day before polling day, it is important to try to get onto the roll by Wednesday of this week to make the voting process easier. Tuesday, 7 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ BUILDING SOCIETY BECOMES A BANK ------------------------------- Southland Building Society has today become a registered bank, the 18th bank in New Zealand. SBS Chief Executive Ross Smith said the decision to pursue bank registration was one the board had been considering for a number of years. He said the decision had little to do with the current world financial crisis but was more due to proposed changes to the non-bank regulatory regime, and issues around the recent string of finance company failures. SBS secured an investment-grade credit rating last year, and has since been changing its rules to align with the requirements of the Companies Act. Mr Smith says the new bank will remain mutually owned, and so protection of members? rights and privileges has been of paramount importance. Southland Building Society was established in 1869, after the big gold rush, at a time both population and business in Invercargill was declining. FOREIGN AFFAIRS CUTBACKS COULD BE DISASTROUS -------------------------------------------- New Zealand First Leader Winston Peters is belittling suggestions a budget boost for the Ministry of Foreign Affairs and Trade should be cut. Both National Leader John Key and Finance Minister Michael Cullen have signalled the extra $600 million set aside for MFAT in this year's budget could be cut, in light of the poor state of the Government's finances. Winston Peters, who lobbied for the spending as Foreign Minister, says it is the wrong move to cut an area that could help grow the country's exports and wealth, at the first sign of trouble. He says it would be disastrous for the country. PHARMAC CAUTIOUS ON ANTI-PSYCHOTIC DRUGS ---------------------------------------- Pharmac has launched new guidelines on the use of anti- psychotic medicines for the elderly. It follows international concern about the high use of the drugs amongst older people. There are worries the medicines may increase the risk of stroke, and cause high death rates. A British report has pointed to over-prescription of anti-psychotics to people with dementia in rest homes. Pharmac's Medical Director, Dr Peter Moodie, says there is little evidence of harm being caused to elderly patients in this country. However he says the new guidelines, being launched jointly with the College of Psychiatrists, should ensure doctors have the most up-to-date information when prescribing for older patients. LIFELINE FOR HELPLINE --------------------- A deal has been reached to save the Gambling Help phone service. The Ministry of Health has signed a funding contract to keep the lines open running for another two years. It gets around 200 calls a month from people seeking help with their gambling. FUNDING BOOST FOR CARDIAC SERVICES ---------------------------------- The Government has responded to a report criticising the delivery of cardiac services in New Zealand. A working group made up of specialists found cardiac surgical services are being disrupted because of complex requirements for patients and the risk of urgent cases disrupting scheduled procedures. Health Minister David Cunliffe has now allocated $50 million to boost services over the next four years. He says the funding will lift the number of operations by at least 25 percent, or 616 more cardiac surgeries over the four year period. Changes that will be put in place include setting up a nationwide prioritisation system to ensure all patients, regardless of location, have access to the same level of funding; greater collaboration across DHBs to deliver increased services; an implementation taskforce to oversee immediate workforce development initiatives; the redesign of patient, theatre and intensive care scheduling systems to reduce cancellations. The report also recommended a substantial resource increase to move New Zealand closer to the current level of intervention in the UK, similar to what is already being provided at Otago DHB. GROWERS BENEFIT FROM GLOBAL SHORTAGES ------------------------------------- New Zealand growers are showing their resilience, despite tough economic conditions. A Ministry of Agriculture and Forestry report shows many growers had an improved financial outcome for this year's harvest season. It says lower global supplies and bad weather conditions have resulted in higher prices for apples, blackcurrants, lemons, cereal grains, and honey. The report says growers appear to be responding well to the challenges. UNIVERSITY IMPOSES MAXIMUM POSSIBLE INCREASE -------------------------------------------- Victoria University has put fees up by five percent - the highest increase a university can approve. It is the fourth year running the institution has raised fees by the maximum allowable. The university blames the increase on inadequate government funding. The increase means the fees of undergraduates studying arts, social sciences, languages and education will go up by about $191 next year, to $4017. Joel Cosgrove of the students association says the increase will hurt study opportunities for Maori and Pacific Island students in particular. Music student Marika Pratley says the university council is fully aware of the poverty students face, yet has increased the burden anyway. (Though an employee of Victoria, I have no special knowledge or insights into this. Nor do I have any authority to speak on behalf of the university. Nevertheless I have opinions. The budget constraints in recent times have been getting ever tighter, and I believe that without the fee increase, or an increase in government funding, courses would have to be eliminated. Staff in NZ universities are typically paid 40% less than their Australian counterparts, and we can only dream of the resources I saw in my recent trip. I think the fee rises were utterly unavoidable. - BH) AUCK'S REGIONAL FUEL TAX APPROVED --------------------------------- Aucklanders will be paying more at the petrol station from next year, as the Government approves the regional fuel tax scheme. From July next year, two cents per litre will be added to the price of a litre of petrol and diesel. That will increase to five cents a litre from July 2010 and 9.5 cents by July 2011. Transport Minister Annette King says the fund will go towards various Auckland transport projects including the electrification of the rail system. Other projects which will get the green light include the ferry terminals, developing an integrated public transport ticketing system and construction of a new road linking the Whangaparaoa Peninsula to State Highway 1 (Penlink). The levy is expected to raise around $110 million a year, once the full 9.5 cents is being collected. Ms King says the levy is an additional funding tool available to regions for transport projects identified as high priority, but that will not reasonably be funded from any other source within the timeframe required. "The Government has already forecast to provide more than $1 billion in Auckland land transport infrastructure this year, but this levy will see other high priority transport projects of the Auckland region realised much faster than they could have been otherwise." KEY PUSHING AHEAD WITH TAX CUTS ------------------------------- National Party leader John Key says his party is pushing ahead with tax cuts despite Treasury's pre-election report showing economic forecasts being worse than predicted. Billions of dollars worth of budget deficits are predicted for the next ten years. The document says that in the five months since the Budget Update was finalised, there have been several significant domestic and international developments, including the international financial crisis, the slowing housing market and growing pressure on households and businesses from rising prices. It says weaker economic growth is expected over the next few years, resulting in slower growth in tax revenue and probably higher government expenditure. Tax revenue is forecast to drop by as much as $3 billion in the coming years and inflation is set to hit 4.5 percent by next year. Mr Key says the economy, must grow and offering tax relief will help in that process. However, he will not reveal whether National's tax cut would return $50 a week to taxpayers' pockets. An announcement on the policy is due tomorrow. "We certainly need to deliver tax relief and put the right incentives in the economy but we need to get New Zealand growing again, because one of the salient figures that has come out is that growth will be virtually zero by 2009." Mr Key says after nine years of Labour-led governments, New Zealanders are facing a decade of deficit. But National is facing pressure from the Prime Minister over how it plans to pay for its tax cuts. Helen Clark says people are looking for a lot of experience and commonsense to be exercised. 'It's certainly not a time to be going out and borrowing for tax cuts, so all eyes will be on just how reckless the National Party will be." Miss Clark says her Government has responded to the economic crisis by keeping its head, and is refusing to cut public spending. STATE OF GOVT'S BOOKS NO SURPRISE --------------------------------- The state of the Government's books comes as no surprise to the chief executive of the Stock Exchange. Treasury's pre- election report shows New Zealand is set to record a $30 billion deficit over the next five years. The report blames the deteriorating economy and reduced revenue forecasts. The figures do not encompass the turmoil on global markets of the past five weeks, which include US and European banks collapsing and the US government and European countries formulating rescue packages for the financial sector. Mark Weldon, head of the Stock Exchange, says the figures show how quickly things can change in a small economy. He says there is not a lot of surprise that the cupboard is bare, as New Zealand has been in a recession for two quarters and will probably be in one for the September quarter. "We're an economy that's been a one trick pony really, in terms of dairy prices and they are falling." Mr Weldon says the business sector will bear the transition risk, with a slowdown in growth and profit flowing through to workers. He says tax cuts are only half the equation for injecting fiscal stimulus. He says if firms stop investing in people and capital, the predicted recession will be longer and deeper than it needs to be. The NZX50 fell 103 points yesterday to 3,048. This morning, the Dow Jones Industrial Average has fallen another four percent and is now below the 10,000 point mark, for the first time in nearly four years. The price of oil has also shed nearly $4 to trade at $US89 a barrel. WAIKATO BUSINESS LAMENTS ROUTE SUSPENSION ----------------------------------------- Hamilton's business sector says Air New Zealand's decision to suspend some flights between Hamilton and Australia is a major blow for the region. The airline will not fly from Hamilton to Sydney and the Gold Coast for seven months next year, because of weak demand and an oversupply of trans-Tasman capacity from Auckland. Spokesman Glen Sowry says efforts to stimulate demand on the route through significantly lower average fares compared to the rest of the Tasman network have not worked. "Quite simply, Waikato residents are not travelling like they used to, or are choosing to travel through Auckland Airport. The Hamilton-Sydney route for example has operated less than half full over the past six months. That's the equivalent of operating more than 60 empty A320 flights on the Sydney route alone." Mr Sowry says the suspension decision was made as part of Air New Zealand's ongoing review of its network to ensure it operates a sustainable business through the current global economic turndown. He says the turndown is seeing airlines suffer and in many cases fail, the world over. Hamilton will still have an Australian connection, with retention of the twice weekly flights to and from Brisbane. Wayne Walford, CEO of the Waikato Chamber of Commerce, says the news is terribly disappointing for the region, but he says this could be an opportunity for another cheaper airline to pick up the routes. The flights will be suspended from March 29 to October 24. Wednesday, 8 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ NGATI APA SIGN FINAL TREATY SETTLEMENT -------------------------------------- Ngati Apa and the Crown are signing a final Deed of Settlement at Whangaehu Marae, for the resolution of historical claims. The iwi's grievances relate to the Crown's 1849 purchase of the 260,000 acre Rangitikei-Turakina Block, and subsequent failure to adequately protect approximately 35,000 acres as agreed. An initial deed was signed early last month and has been ratified, with a resounding 95.8 percent of Ngati Apa supporting the agreement. Ngati Apa chairman Adrian Rurawhe says it is a hugely significant day for the iwi, not only as a culmination of the claims process, but also in a historical sense. TAX CUTS $47 AND KIWISAVER CHANGES UNDER NATS --------------------------------------------- National Party leader John Key says the challenges facing the economy require a focus on disciplined government spending and a plan for future growth. Unveiling tax cuts which will eventually amount to $47 a week for most workers, Mr Key attacked Labour's handling of the country's finances. "After a decade of the most favourable global economic conditions in our lifetimes, all New Zealand has to show for it is an ocean of red ink 10 years into the future." Tax rates from April next year will be 12.5 percent on income up to $14,000; 21 percent on income from $14,000 to $48,000; 33 percent on income from $48,000 to $70,000; and 38 percent on income about $70,000. The cuts will also entail changes to employer contributions to Kiwisaver, which will cease to be deductible. Mr Key says the surest way out of the red is for the economy to grow faster. He says National's tax and fiscal policies demonstrate his intent to achieve this quickly. He promised a recovery built on improved productivity and a better environment for investment in jobs and growth. National's strategy contains five main areas of focus, including improved productivity in the public sector, dealing with regulatory and compliance issues, reducing taxes, stepping up infrastructure investment and lifting education standards. CONTRACT DOWNGRADES FULL-YEAR EARNINGS -------------------------------------- Contact Energy has downgraded its full-year earnings forecast, but has not given any specific guidance in terms of figures. The power company has had a one percent drop in after tax earnings to $237.1 million for the year to June. It says its first quarter has been well below expectations. Contact says extreme weather conditions and what it describes as systemic power transmissions constraints have had an impact. At an investor presentation today, Contact said it does not expect to outperform its 2008 financial results. Contact shares have taken a hit for a second day in a row, losing 19 cents to $7.29. MORE EMPLOYERS OFFERING FLEXIBLE HOURS -------------------------------------- A new survey of employers has found more than two-thirds are offering their workers flexible hours. The Department of Labour says the most common form of flexible arrangements include allowing workers to choose their start and finish times, have flexible breaks, and take unpaid leave. The survey also talked to around 1,000 employees. It found those who are given the chance of having more flexible working hours are much more likely to believe they have a better work-life balance, than those who do not have the option. DEFENCE FORCE REVIEW ON NATS SHOPPING LIST ------------------------------------------ National is confirming its pledge to review the needs of the Defence Force. Defence spokesman Wayne Mapp says if elected National will publish a Defence White Paper looking at budgetary matters, procurement procedures, and the recruitment and retention of staff. He says the Defence Force has been grappling with several major issues, including substantial blow-outs on major capital purchases. Mr Mapp says National will analyse the quality of spending, and see what can be done better. He sees its primary role as building security within the South Pacific. "Outside our region, we are best suited to providing high-quality contributions that are internationally valued and respected" he said. Ensuring the NZDF is interoperable with Australia's defence forces is also a priority. He says it will look at what improvements can be made, and address recent concerns about some Defence Force practices. Defence Minister Phil Goff is dismissing the announcement as a non-event. He says issuing a White paper is not a policy - it is a process. CROWN BUYS HUGE SOUTH ISLAND STATION ------------------------------------ The Government has spent $40 million buying a major South Island high country station from the Stevenson family, who have owned the property since 1927. Prime Minister Helen Clark says the purchase guarantees public access to St James Station in North Canterbury and protects it from intensive farming and development. She describes the 78,000 hectare property as staggering in scale and in terms of its natural attributes. "The Labour-led Government is committed to protecting and enhancing our country's natural heritage and to ensuring as many New Zealanders as possible can enjoy it." St James Station includes the largest Crown pastoral lease in New Zealand. It spans three mountain ranges and contains the headwaters of two major Canterbury rivers, the Waiau and the Clarence. A total of 11 tramping routes cross the station, which also encompasses the Amuri ski field. The Prime Minister says some 430 indigenous species of flora have been identified on the property and 30 native bird species have been sighted there. Ms Clark says the station's rich historic heritage will also be protected, referring to old Maori access routes across the top of the South Island and several early European historic sites. She says bringing the land into public ownership will boost North Canterbury and in particular the Hanmer Springs area as a tourism destination. The Crown will take possession of St James later this month. CALL FOR MANDATORY WATER METERING FOR HOMES ------------------------------------------- A business group is supporting calls for water meters to be mandatory for all households and for water to be charged by volume. The Institute of Professional Engineers claims people with meters use 40 percent less water than those without. Canterbury Chamber of Commerce chief executive Peter Townsend says Canterbury has one of the most pure water sources in the world and with a flat residential rate for water, people are simply wasting a precious resource. He says international evidence shows that if water is charged by volume, no matter how small the charge, consumption is reduced significantly. Mr Townsend says other than Christchurch, the only city in the world that uses untreated water is Evian in France. BOOZE STILL ON THE SHOPPING LIST -------------------------------- Many people would rather go without new shoes than cut back on booze. Survey company Nielsen has been looking at how people are coping with the economic squeeze coming from rising petrol prices and interest rates. It has found 47 percent of people do not feel the need to spend any less when it comes to buying alcohol. While many are feeling some pain in the pocket, they are holding on to some luxuries. Spokesman Michael Walton says instead of having a big night out, more people are having quiet nights in. While they may be drinking a little less, they are opting for quality over quantity. RESERVE BANK UNDER PRESSURE FOR MAJOR RATE CUT ---------------------------------------------- A major interest rate cut in Australia is expected to boost that country's real estate industry and is putting pressure on New Zealand's Reserve Bank to be just as generous. The Reserve Bank of Australia has slashed the official cash rate by a full percentage point and Australia's five major banks have passed on 80 percent of the rate. For borrowers with a $300,000 mortgage, it translates to a saving of $164 a month. Phil Naylor from Australia's Mortgage and Finance Association says it is good news for Australians wanting to get into the housing market. "It was a massive surprise but a very great welcome as well. This will be a great kick-start for mortgage industries. People who have been hovering on the sidelines for some time will come back into the market." Analysts say the move will put pressure on New Zealand's Reserve Bank to follow suit when it makes its next official cash rate announcement on October 23. ANZ National Bank chief economist has told the Herald that he believes the RBNZ will cut the rate by a percentage point to 6.5 percent by the end of the month and possibly before the next scheduled review. Australia's rate cut from seven to six percent, is the biggest the RBA has made since 1992. It was double the amount analysts had been expecting. America's Federal Reserve is also mulling with the idea of cutting rates. US Fed Chairman Ben Bernanke says he must consider whether the current interest rate policy remains appropriate. Thursday, 9 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ COMPENSATION FOR REDUNDANCY LOOKED AT ------------------------------------- Labour's proposing a plan to ensure anyone who's made redundant is entitled to a minimum level of compensation. It would mean workers who are made redundant, and do not have protections negotiated into their employment agreement, would receive at least a certain amount of compensation. The current law offers no such entitlement. Labour Minister Trevor Mallard says the details are still being worked through, but it will be Labour Party policy. He says the idea will now go out for public consultation. (I noted that the Rudd government in Australia just dropped such a provision at least in respect of small business. - BH) CONCERNS OVER RISING CREDIT CARD DEBT ------------------------------------- Many young Kiwis and middle income earnings are pulling out their credit cards just to pay everyday bills. A report by credit reporting agency Dun and Bradstreet shows that those earning between $30,000 and $50,000 are going into huge debt using their credit cards. General Manager John Scott says the situation appears to be getting worse in the lead up to Christmas. He says there is the potential that many people will not be able to pay off their debt. Mr Scott says the global credit crisis appears to be having an impact on spending behaviour. NO COMMENT ON INCREASES - MERIDIAN ENERGY ----------------------------------------- Meridian Energy is staying silent over its decision to slap consumers with a massive increase of its so-called Electricity Commission levies. The Commission, which oversees the industry, was to increase its levies to retailers this year by 80 percent, but then decided on a 40 percent increase. Some retailers choose to pass Commission levies on to consumers. Meridian Energy is now increasing its Commission levy charges by as much as 151 percent. $33.8M TO BE SPENT ON 2011 RUGBY WORLD CUP ------------------------------------------ The Auckland City Council wants to spend $33.8 million on the 2011 Rugby World Cup. Its Arts, Culture and Recreation Committee confirmed the proposed allocation at today's meeting. $1.8 million is going towards traffic management and implementation, while $852,000 will be used to prepare and process bylaws and consents. Mayor John Banks says the figures will go out for public consultation before they are approved. He says a man with 44 years in business is at the helm, and they will be very cautious, very careful and very measured so people have very little to worry about. Mayor Banks says it is important to spend big money on an event that is attracting over 66,000 international visitors. NATIONAL DEFENDS KIWISAVER PLANS -------------------------------- National is defending its proposed changes to KiwiSaver, maintaining it is trying to get more people into the savings scheme. The Government is slamming proposals to set minimum contribution levels for employees and employers at two percent of a salary claiming it discourages saving and guts the scheme. But National Leader John Key disagrees saying those that find it hardest to save are those on lower incomes and they would have issues with maintaining four percent contributions. He says getting people into the scheme and staying there is his aim. Mr Key says offering tax cuts gives people the chance to put more money into KiwiSaver if they choose. RESIDENT DOCTORS SETTLE 15 MONTH PAY DISPUTE -------------------------------------------- It has taken 15 months of negotiations - but resident doctors have settled their collective agreement with DHBs. The deal includes an 8.68 percent pay rise, which came into effect in August, as well as a further two percent rise in eight months time. There is also a five percent back payment for the months of negotiations. Hourly rates for overtime night shifts have been increased to between $75 and $100. The salary scale for registrars has been increased - they will also receive more conference leave and recognition for time spent in research. RESERVE BANK WON'T CUT INTEREST RATES ------------------------------------- The Reserve Bank is not following the lead of other countries and cutting interest rates just yet, but it has announced further measures to improve liquidity in the market. Governor Dr Alan Bollard says he is monitoring international developments closely. But he says at the moment New Zealand's financial system is working satisfactorily and says the next monetary policy review is scheduled for October 23. To improve liquidity he says the bank is prepared to lend on the basis of fully-secured Residential Mortgage Backed Securities. This means banks can package up these mortgages and use it as collateral to borrow cash from the Reserve Bank. The full text of Dr Bollard's announcement is as follows: "At the moment the New Zealand financial system is working satisfactorily. It has held up relatively well in the face of the volatility and disruptions that we are seeing internationally," he said. "New Zealand banks have high-quality assets. Fortunately they do not have the poor quality assets that have proved so damaging overseas." Dr Bollard said that over the past year the Bank has announced a number of measures that will make it easier for financial market participants to maintain liquidity during a period of financial market disruption. "To further improve liquidity prospects for the banking system, we are announcing that the Reserve Bank will temporarily broaden its security programme. We will, if required, be prepared to lend on the basis of fully-secured Residential Mortgage-Backed Securities (RMBSs), prior to those securities achieving formal ratings." He said there has been good progress by institutions in developing RMBSs should they be needed. "While we believe these measures are sufficient at this stage, the Bank retains a number of other regulatory powers. We are committed to ensuring the ongoing health of the financial system and remain ready to respond as appropriate. The centre of the financial crisis is in the United States and Europe and, while there will be ramifications for our economy, the next review of monetary policy is scheduled on 23 October. In the meantime we are staying in very close touch with the banks, and also with the Government." MODERATE GROWTH IN INCOMES -------------------------- Figures released today by Statistics New Zealand show there has been a slight rise in the median weekly income over the past year. In June the average income was $537 a week. There has been a $19 rise, which is equivalent to 3.5 percent, in the median wage compared to a year ago. But that rise is the lowest annual rise since June 2003. Statistics New Zealand also looked at wage and salary earners finding there had been a 2.7 percent rise in the median wage. That now stands at $729 per week compared to the figures from last June. WAREHOUSE PULLS OUT OF SUPERMARKET FORMAT ----------------------------------------- The Warehouse is pulling out of its 'Extra' supermarket format. The $12 million cost of the move, which includes $5 million in write downs, will appear in the 2009 financial year. Chairman Keith Smith says the company has analysed the format and concluded that it will not achieve the 10 percent boost expected on general merchandise and apparel. The Warehouse plans to continue to develop its pharmacy business and the health and beauty category, which it says are proving to be highly successful. No decision has been made in respect to liquor which is currently available at six of the company's 85 stores. After plunging 16 points on opening, and following continuing gloom on Wall Street, The Warehouse decision seems to have aided a late morning rally of New Zealand's share market as investors see the company become a takeover opportunity again. The NZX50 is now eight points down at 2,941. The Warehouse shares have gained 36 points to $3.45. DAMAGE TO STATE HOUSES COSTS MILLIONS ------------------------------------- State housing tenants owe a total of more than $2 million dollars for damage to their properties. Housing New Zealand figures released to Newstalk ZB under the Official Information Act show the amount being billed to residents has almost doubled over the past seven years. Since 2001, residents have caused around $48 million worth of damages to their properties. The majority has been recouped through enforced weekly payments. During this time the number of state houses increased from 60,000 to 68,000. Over the eight year period only one person was evicted solely for damaging a property. NO MORE LONG, LINGERING SHOWERS ------------------------------- Plumbers say most showers currently on the market will not work with the pathetic flow rate the Government is introducing. Having a great shower may soon be a thing of the past as the Department of Building and Housing changes the allowable flow rates for showers in new homes. Under the new law, which will come into force in February, the maximum flow rate is six litres a minute. At the moment most showers run at 16 or more litres a minute. Darren Waith from the Plumbing Distributors Association says six litres a minute is little more than a dribble and it will be impossible to have a good quality shower at that rate. He says the association is annoyed with the way the measure has been pushed through. He says although submissions have only just closed, the Government has already announced it will be law by next year. (This lunatic proposal was bizarre in the extreme. If drought- ravaged Queensland legislates 9 litres per minute, why does waterlogged New Zealand need to undercut that by a third? Possibly because it was seen as an election spoiler, the Labour Party have now dumped this inane idea. - BH) R&D CREDIT AXING "DISAPPOINTING" -------------------------------- The Employers and Manufacturers Association is disappointed National is planning to scrap the 15 percent tax credit for research and development. National's package offers slightly larger tax cuts than Labour. The average worker will get around $47 more a week by 2011 and there will be a rebate for singles and couples who do not have children and earn between $24,000 and $50,000 . The tax cuts will be paid for by taking some money away from Kiwisaver and scrapping the research and development tax credit for business. Chief executive Alasdair Thompson says the R&D scheme has only just been introduced and should be given time to see if it works, because there is a need for innovation in New Zealand firms. He says the tax credit would also have stimulated much needed economic growth and was one of the only advantages New Zealand firms had over their trans-Tasman counterparts. Mr Thompson says National is indicating its priority is personal tax cuts rather than business tax incentives. Labour claims nothing about National's tax cuts package will help kick start growth. Prime Minister Helen Clark says it offers a short term boost to consumer spending, at the long term cost of growing a smart economy and saving. Miss Clark says if there is one thing New Zealand needs, it is a full Kiwisaver scheme. Friday, 10 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ NZ FIRST CLEARED OF FRAUD BY SFO -------------------------------- The Serious Fraud Office has cleared New Zealand First of any fraudulent activity. It has been investigating the donations given by Sir Robert Jones and the Vela Family to the Spencer Trust, which then ended up with New Zealand First. The SFO says its investigation has found no fraud, but other laws may have been broken. Director Grant Liddell says there is no basis for laying of fraud charges relating to the donations. He says there is however information that laws relating to election returns may not have been complied with, and the party's election expense returns for 2005 are also incomplete. Grant Liddell says the information has been provided to the Auditor-General, who audits members' returns to the Registrar of Pecuniary Interests. ("no fraud, BUT ..." so this is not yet the exoneration claimed by NZF. - BH) LABOUR JUST 3% BEHIND NATIONAL IN NEW POLL ------------------------------------------ A new opinion poll shows the gap between Labour and National has dramatically narrowed to just three percent. The Roy Morgan poll seems to be out of kilter with all the other recent polls, which put Labour at between 10 to 20 percent behind National. This poll shows National taking a significant hit, losing seven points to put it on 40.5 percent to Labour's 37.5 percent, a point ahead of where it was last poll. The poll of 923 voters was carried out between September 22 and October 5, which is before John Key announced National's tax cuts package on Wednesday. The Greens are the next most popular party, picking up three percent to reach nine. New Zealand First dropping one to put it just below the five percent threshold. ACT has polled well, up to 3.5 percent. Roy Morgan poll results: National 40.5% (down 7%) Labour Party 37.5% (up 1%) Greens 9% (up 2.5%) NZ First is 4% (down 1%) ACT NZ 3.5% (up 2%) Maori Party 2% (up 0.5%) Progressive Alliance 1% (up 1%) United Future 1% (up 0.5%) Others and Independents 1.5% (up 0.5%) (Now that really surprised me. I can see no obvious proximal cause for such a recovery. - BH) RODNEY THE HEALTHIEST PLACE TO LIVE ----------------------------------- If you want to live a long and healthy life then the Rodney District is where you should be. It has topped the list of the 10 healthiest places to live in New Zealand, in a report commissioned by the ASB Bank. The Top Spots report shows Rodney residents are the most physically active, have a healthy body weight and residents claim they seldom, if ever, experience high levels of stress. Wellington came second followed by Auckland's North Shore, Christchurch, Dunedin and Nelson. Seventeen of the largest cities and district health boards in the country were surveyed on a wide range of points. They included life expectancy, smoking, stress levels, alcohol consumption and unemployment levels. NEW DOUBT ABOUT TRANSMISSION GULLY ---------------------------------- Wellington City Council is again casting doubt on the prospect of Transmission Gully ever being built. It may pull its support for the alternative highway project if plans for a business park in the Pauatahanui/Judgeford area of Porirua go ahead. It would be near where the gully would connect with State Highway 58. One of the conditions of the council's acceptance of the Transmission Gully proposal is that no new developments are built near its interchange. Councillors are concerned it would pull shoppers away from established retail areas, including central Wellington and Porirua. Councillor Andy Foster says when they accepted the gully plan, it was also under a condition that wider Wellington would have to think and act as a region, not as separate cities. Mr Foster adds Transmission Gully still has several large hurdles to clear, including funding. TAXPAYER FUNDING FOR PARTIES FINALISED -------------------------------------- The Electoral Commission has finalised the amount of taxpayer money allocated to the political parties for the election campaign. Labour and National will both get $1 million. The Green Party, New Zealand First and the Maori Party each get $246,000. ACT, United Future and the Progressives will each receive $102,000. Seven parties, which are not in Parliament, have been allocated just over $10,000 each. The traditional party political broadcasts get their first airing tonight, with Labour and National outlining their campaign messages. NO LUXURY SUITE FOR AUCK'S HOMELESS ----------------------------------- A councillor claims Auckland City plans to cast aside the homeless during the Rugby World Cup but mayor John Banks says no round up will be carried out. The council is dedicating $20,000 of the $33.8 million budget for the 2011 tournament on a plan to manage transients during the tournament. Councillor Glenda Fryer says the council is just after a quick fix by hiding away the homeless. She believes it should be working with social agencies to deal with the issue on an ongoing basis. But Mr Banks is promising transients will not be swept under the carpet. "I've been a homeless man myself. I know what it's like to sleep rough. I know most of the homeless. I treat them with respect and dignity. One day I may be homeless again." Mr Banks says the homeless will not be pushed out of the city limits and will not be living it up in luxury hotels with full course meals and room service. He says funding will go towards out-reach programmes to help organisations which deal with the homeless, such as the Auckland City Mission and the Salvation Army. BUS COMPANY SLAMMED AS FARES RISE FOR ELDERLY --------------------------------------------- The Wellington bus company that has more than doubled fares for some passengers in the past week is under fire from a local MP. New Zealand Bus, the company that operates Go Wellington, Hutt Flyer and Airport Flyer buses, has scrapped its $5 day passes, meaning the cost of a trip between Wellington and the Hutt Valley for 60 to 65 year olds has risen to $12. The increase comes after the free off-peak public transport travel for the over 65s came into effect at the beginning of the month. Hutt South MP Trevor Mallard says New Zealand Bus has already been reimbursed for the free transport for over 65s, so its behaviour is outrageous. Mr Mallard is calling on the company to act ethically. RETENTION HOPES FROM SETTLEMENT ------------------------------- District Health Boards are hoping long term solutions to keep doctors in the country can be found before it next meets with junior doctors. Members of the Resident Doctors' Association have ratified a collective agreement negotiated with the DHBs. The settlement features an 8.6 percent pay rise with an extra two percent next year and brings the 15-month dispute to an end. David Meates, spokesman for the 21 DHBs, says the settlement clears the way for a workforce commission to look at long term issues facing the sector, including training and development and staff retention. He says the deal the union has accepted is essentially the same as the one on offer before doctors went on strike. The settlement includes five percent back pay to cover the months the parties have been negotiating, better pay scales for registrars and higher hourly rates for doctors on night shifts. DHBs will go back into talks with the doctors' union late next year. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. From news at wysiwygnews.com Mon Oct 20 09:17:34 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Mon Oct 20 09:17:44 2008 Subject: WYSIWYG NEWS - 20 October, 2008 Message-ID: <5C980AE42F38704494A3D4FD9A6F2E7B033309BA@STAWINCOMAILCL1.staff.vuw.ac.nz> Subject: 20 October, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. Home once more, and I am wearing more layers of clothes than I have for the best part of three months. My flight from Brisbane left a beautiful bright morning, and with the aid of a strong tail wind, arrived almost 30 minutes ahead of schedule into a cool grey overcast Wellington, with whitecaps on the Cook Strait, and a typically vigorous arrival into a stiff Nor'Wester. I was seated near the front of the aircraft so was among the first off, but Murphy intervened, and my bags took a while to arrive. Even so, there were no other international arrivals ahead of us, and I was able to walk straight through an almost empty arrivals hall to the first available customs officer and, having nothing to declare and an apparently honest face, I was passed through very quickly. And there, waiting to meet me ... no-one. I rang Mary and she was on the motorway, fully expecting the plane to touch down half an hour hence and then for me to progress slowly through the lines in customs and the various border security inspections. She arrived at last, and it was indeed great to see her. About ten minutes after that, Anthony and Sarah arrived with grandchildren Maggie and Cooper. There was much hugging and exchanges of tall stories before we all drove home for coffee and refreshments. Since I have been home, the weather has remained at somewhere around the 15 degree mark which is typical of Wellington at this time of year, with persistent cloud cover while Brisbane has remained in the mid to high twenties and bright sunshine. I am more convinced than ever that the greatest single factor in persuading kiwis to emigrate to Australia is the overpowering feel-good factor of endless sunny days. Admittedly they overdo it at times, and suffer droughts and a surfeit of flies, but there is nothing like blue skies and sunshine to predispose you towards smiling. Of course, here in New Zealand, we are also in the midst of an election campaign, and that tends to exacerbate any tendency to depression even if we weren't also participating fully in the global financial melt-down. This weekend, after a regular visit by Mary and I to parents/in-laws, we came home via Palmerston North as I had purchased an item on Trade-Me (NZ equivalent of e-Bay). I can't remember the last time I came through "Palmy". A clear fine day and light traffic made this an ideal day for it. I must say that the management of traffic through the Square is the most incompetent piece of traffic engineering I have ever encountered. If ever there was a case for the implementation of a one-way system this is surely it. Anyway, once through the city and on the road South we drove past Massey University's magnificent home campus at its leafy spring best. Up the hill and past the Dairy Research block, the Beef and Sheep research blocks (each block being a substantial farm in its own right), we carried on past Linton military camp and encountered a stream of inbound camouflaged Unimogs, probably indicative of a lot of territorial army activity over the weekend (American readers, think "National Guard"). The desert style sandy brown camouflage was not especially effective at concealing them in the lush green of the Manawatu in spring time. We passed the steam museum at Tokomaru, and since this was not one of its active days, all was quiet. A great deal of visible rust on the exhibits outdoors suggests that it is hard to attract sufficient volunteers even to such a splendid collection in a place as isolated as this. A little further down the line we paused for some excellent coffee at Shannon before resuming the journey down the Western edge of the Tararuas towards Levin. As I said, it is a long while since I last travelled this road, and for the first time in my memory, there are no active areas of road works. I have to say that this road seems to me to be seriously under-engineered. It seems far too lightly built to carry the significant tonnage of freight bound from the Lower North Island through to the Manawatu Gorge and thence on to Hawkes Bay and Gisborne. With the demise of rail freight in that area, the problem gets worse year on year, and the road is crumbling in places. Nevertheless, it is straighter, better aligned than it used to be when it ducked and dived to negotiate every creek and gulley. At last, the road turns West past the now deserted Kimberly hospital which was for so long home for youngsters with disabilities. I was ambivalent about its closure until I learned that, at its opening in 1945, it was entitled "Levin Mental Deficiency Colony for feeble minded and defective boys". Dear God in heaven! Nevertheless I admire those who worked with the young people who were committed to their care. Over the railway line and left onto SH1 a little North of Otaki, we rejoin the still surprisingly light main road traffic on the all too familiar road home. ---- 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 Bob O'Donnell in Corvallis, OR. Many thanks Bob. ---- On with the News. Monday, 13 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ MAJOR BANKS INTEND TO SIGN UP TO SCHEME --------------------------------------- The country's major banks are planning on signing up to the Government's deposit guarantee scheme. Kiwibank and ASB were the first. They were followed by Westpac, ANZ National and BNZ. Finance company UDC has also announced its intention to opt in. The Government guarantee is available to credit unions, building societies and finance companies that take deposits and are meeting the terms of their trust deeds. It does not apply retrospectively to finance companies that have already collapsed. LABOUR UNVEILS UNIVERSAL STUDENT ALLOWANCE ------------------------------------------ Labour has announced it would introduce a universal student allowance by 2012. Prime Minister Helen Clark says it would be phased in gradually and when fully implemented will cost $210 million a year. It would benefit around 50,000 students. (Given the length of time for which Labour has vigorously resisted this, one has to ask, "why now?" Surely the imminent election is just coincidental? Yeah, right! - BH) GREENS CONCERNED AT CONTENTS OF TROLLEYS ---------------------------------------- The Green Party says a snapshot grocery shopping survey has revealed disturbing trends in buying habits. After speaking to shoppers at a handful of Auckland and Wellington supermarkets, it has found 95 percent of people with an income of between $30,000 and $75,000 are opting for cheaper and less healthy due to rising food prices. Of those surveyed, it says 60 percent did not purchase items they had planned to purchase on the day they were questioned due to the price. The Greens say 50 percent did not buy any fresh fruit or vegetables, 75 percent did not buy milk and 90 percent did not buy cheese. Many respondents said that they were purchasing less meat, vegetables, milk, cheese, and rice and instead buying more snack foods, instant noodles, canned spaghetti, biscuits, chocolate, cordial, fast foods and takeaways to feed their families. Green MP Sue Kedgley says the results are a huge concern as affordable fresh vegetables are essential to good health. She says it is time for the Government to address the affordability of healthy food. The food affordability survey was conduced at supermarkets in Auckland and Wellington in the suburbs of Remuera, Mangere, Khandallah and Porirua. (The Greens are concerned with far too many things that ought to be the private concern of responsible individuals, from shopping to shower flow rates, and family sizes. - BH) JETSTAR OFFERS DISCOUNT TRANS-TASMAN FARES ------------------------------------------ Trans-Tasman air travel is about to get cheaper. Qantas budget airline Jetstar has announced new services from Auckland. From April next year Jetstar will offer cheap flights daily from Auckland to Sydney and Auckland to the Gold Coast, adding to the company's trans-Tasman services out of Christchurch. The airline says both flights will cost $199, but it is offering a $89 flights for today only. Jetstar is also offering a competitive Auckland to Bali same day route. It says the expansion is due to the consistent and profitable performance of the Christchurch services. NATIONAL NOT TOLD OF BANKING PACKAGE ------------------------------------ The Reserve Bank says the National Party was not told about a package which guarantees bank savings. Prime Minister Helen Clark announced the new scheme at the Labour Party launch yesterday. She said that National had been kept in the loop. National leader John Key denied knowing about the scheme, now Reserve Bank spokesman Mike Hannah has confirmed National was not briefed by the bank before the announcement. Mr Hannah says the party is being briefed on the full details today. Mr Key says National expected a heads-up, as it is the usual code of conduct regarding financial packages this close to an election. (Somewhere up in the top right hand corner of my brain, I can hear a ghostly "Heh! Heh! Rob Muldoon was lambasted for failing to observe the conventions at election time. This is not respectable. - BH) PARTIES LEFT OUT OF GUARANTEE PLAN ---------------------------------- United Future is criticising Labour for unilaterally deciding to take steps to protect the banking sector. At Labour's election campaign launch in Auckland yesterday, Prime Minister Helen Clark revealed plans to introduce a deposit guarantee scheme. United Future leader Peter Dunne claims Labour went about the issue in the wrong way. "This is not a not a political issue, this is an issue that is a New Zealand issue that all parties should have been involved in because this transcends the life of this particular government or the next government. To try to make it a particular issue was a very short-sighted and damaging move." National says it was not consulted on the move either. DEPOSITORS WILL PAY FOR GUARANTEE SCHEME ---------------------------------------- Lower and middle income earners are expected to feel a lot more confident now the government is guaranteeing bank deposits but it is likely to mean people with money in the bank will get lower interest rates. The government is following Australia's lead by guaranteeing bank deposits in an effort to stop panic withdrawals. The guarantee will cover savings in banks, building societies, credit unions, finance companies and cash portfolio investment schemes. Victoria University financial expert Dawn Lorimer says New Zealand's banks are incredibly strong compared to the rest of the world, but the guarantee will provide added confidence. "It makes people who can least afford to lose money, those that have small amounts to deposit and feel uncomfortable about losing it, it protects them." Ms Lorimer says deposit guarantee schemes are common around the world but this is the first time New Zealand has put one in place. However, Roger Kerr from Asia Pacific Risk Management, says small depositors will end up paying for the scheme. He says a bank's first $5 billion of deposits will be free but a guarantee fee will kick in for sums above that amount. Mr Kerr says that is likely to be funded from retail deposit rates that banks pay small depositors. "If there's a government guarantee on it, effectively the retail deposit rates should drop from their current rates of between six and seven percent, down to where the government 90 day and one year rates are, which are down between 5.3 and 5.5 percent." Mr Kerr believes that will cause a dramatic drop in deposit rates and reductions in mortgage interest rates as well. He believes there is no risk of a run on a bank in New Zealand and there was no need to introduce such a measure to restore people's confidence but he says the rest of the world has gone this way and New Zealand has had to follow suit. SPRING RESURGENCE IN HOUSING MARKET UNLIKELY -------------------------------------------- Pessimism in the housing market has crushed any sign of a spring resurgence. QV's September statistics for residential property show a 5.8 percent decline in national property values in the past year, down further from the 4.5 percent drop reported in August. The average New Zealand sale price for September was $379,854. Spokesman Mark Dow says indications last month that an optimistic mood had come over the market have since evaporated. He says pessimism is being driven by factors including the country moving into an economic recession, uncertainty about the impact of the global credit crisis, the usual lack of activity prior to an election and significant tightening of lending policies by the banks. Mr Dow says there is plenty of speculation that things will get worse before they get better and he cannot see the situation getting any better in the next six months. "The requirement to have a significant deposit will take many first home buyers and investors out of the market, reducing demand and putting further downward pressure on prices." Across the Auckland area, property values are down 7.0 percent compared to the same time last year, Hamilton city's values have slipped slightly to -8.8 percent, Tauranga to -7.6 percent, Wellington to -5.4 percent, Christchurch to -7.1 percent and Dunedin to -8.5 percent. Whangarei has declined further to - 6.6 percent, Rotorua -6.4 percent, Napier -4.4 percent, Hastings and New Plymouth -7.0 percent, Wanganui -5.5 percent and Palmerston North -9.4 percent. Gisborne is the only centre to improve slightly to -10.1 percent compared to the -10.4 percent reported last month. Nelson dropped further to -4.0 percent, Queenstown Lakes to -5.3 percent and Invercargill to -1.6 percent. (QV is the government owned property valuation agency that is responsible, among other things, for assessing the rateable value of every property in the country. - BH) NAT'S REVEALING STATE SECTOR PLANS THIS WEEK -------------------------------------------- The National Party is expected to reveal its plans for state sector employees this week. Increasing efficiency and cutting waste in the civil service bureaucracy has been a consistent element of the party's rhetoric on the subject over the past two years. LABOUR PROPOSES MORE INFRASTRUCTURE SPENDING -------------------------------------------- Prime Minister Helen Clark says Labour will consider bringing forward infrastructure spending if economic conditions do not improve. In response to the financial instability around the world, the government will guarantee all bank deposits in order to stop panic withdrawals. The Australian government made a similar move last week. The guarantee will cover people who have savings with building societies, credit unions, finance companies and cash portfolio investment schemes. Banks with deposits up to $5 billion will not be charged for taking part in the scheme, but for deposits over that amount, a fee will be charged. Miss Clark made the announcement at the launch of the Labour's election campaign in Auckland yesterday. She also outlined a spending plan which is intended to stimulate the economy if needed. It includes bringing forward infrastructure spending and building projects such as school properties and extending the rail line from Whangarei to Marsden Point. Miss Clark says if Labour wins next month's election, it will devise a mini-budget in December. A spokesman for National leader John Key says the party had been in contact with the Reserve Bank about its plans for the banking sector, but was not consulted at all, about Labour's proposal to guarantee bank deposits. Tuesday, 14 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ KEY GIVES CLARK A RUN FOR HER MONEY ----------------------------------- John Key gave Helen Clark a real run for her money in the first televised leaders' debate. The feature of the 90-minute programme on TVNZ were questions asked by members of the public through the internet website You Tube. The 16 questions ranged from climate change to law and order, leadership qualities and the economy. Helen Clark focussed many of her comments on the international financial turmoil, while John Key used much of the debate to push National as a party with fresh ideas. There were questions leading into the debate whether newcomer Key would be able to handle debating with one of Parliament's longest-serving politicians. But early on he showed he would take the fight to Helen Clark. The Prime Minister looked unusually ruffled at times, and took task with a grinning John Key as the pair talked over each other. Some talkback callers to Newstalk ZB were critical of the apparent discrepancy in microphone levels between Key and Clark, while others said host Mark Sainsbury should have exercised more control over the leaders. Another person was critical of John Key for being the first to interject. Studio journalists Barry Soper, Guyon Espiner and Shane Taurima gave a points victory to John Key. The next televised leaders' debate between the two main leaders will be held later in the month. MAORI POLICIES INCLUDE WIPING GST ON FOOD ----------------------------------------- The Maori Party has released its economic and whanau policies at Te Aranga Marae in Flaxmere today. It includes wiping tax completely for the first $25,000 of earnings and removing GST on food. The Maori Party also wants to see a five percent cut in tax for businesses which earn less than $100,000 a year. Other policies include adjusting superannuation for those people who have a lower life expectancy and free health care for the under-six-year-olds and over-65-year-olds. It also wants to increase the minimum wage to $15 an hour and stricter controls and monitoring of gambling. LABOUR LOOKS AT RAIL LINK TO THE NORTH SHORE -------------------------------------------- A rail network connecting Auckland to the North Shore is a possible option in Labour's plan to invest in infrastructure as part of its economic policy. Finance Minister Michael Cullen says a post-election mini-budget would feature the announcement that infrastructure projects are being brought forward to stimulate the economy. He says Labour would borrow more to pay for the plan, but he will not say how much. Dr Cullen says part of a 20 year plan for expansion of rail services in Auckland would include a rail link to the rapidly growing North Shore. He says consideration would be given to creating a new rail tunnel, or rail bridge, across the harbour. Dr Cullen says the plan would be developed after the current five year schedule for rail and Auckland's rail network were worked through. LABOUR RELEASES ECONOMIC POLICY ------------------------------- Labour's economic policy promises a mini-budget to stimulate the economy in December. It will bring forward infrastructure spending on roads and rail, sewerage and water projects and upgrade state housing stock and schools. In the short term there will be more sympathetic treatment of businesses that underestimate their provisional tax by charging them less in interest. There will also be a drive for the Superfund and KiwiSaver providers to invest more in New Zealand and Labour will guarantee annual adjustments to the minimum wage, so that it keeps pace with rises in the average wage or inflation. Finance Minister Michael Cullen was not prepared to cost the latest initiatives, saying a lot depends on how the international economic turmoil impacts on New Zealand. KEY PROMISES MORE MATERNITY CHOICE ---------------------------------- National is promising mothers more choice surrounding their baby's birth and check-ups in the first nine weeks. Leader John Key says women would not be rushed out of hospital after giving birth. He is also pledging more home visits for babies during their first nine weeks. The four-pronged policy will cost just shy of $16 million a year. It will increase the maternity care workforce, birthing facilities, postnatal support and care for at-risk mothers. Mr Key has also reconfirmed National's commitment to fully funding the Plunket helpline. Meanwhile the National leader says he is ready for his first televised leader debate with Labour leader Helen Clark. The two will go head-to-head on TV One at 7pm. Mr Key says all debates are important as they gives voters a chance to compare and contrast. He lists his concerns as the state of the economy, increasing crime rates and the underperforming health sector. Questions for the debate have been submitted by members of the public via You Tube. UNIVERSITY STAFF CALL FOR FUNDING BOOST --------------------------------------- The Association of University Staff is welcoming the Labour Party's plan to phase out parental income testing for student allowances. But it is warning the Government must also increase funding to universities. Association spokesman Dr Grant Duncan says all parties must announce policies that would grant greater investment in universities. He says it is important to maintain the high quality and good reputation of New Zealand's university system. Dr Duncan says university income has fallen in real terms by over $20 million a year, over the last six years. His comments come as New Zealand institutions have slipped down the Times Higher Education rankings of the world's top 200 Universities. Auckland comes is at number 65, 15 places down from last year. Otago is at 124, down from 114 last year, while Canterbury has moved up two places to 186. (The comment about rankings could be taken to imply some level of poor teaching or research performance. In fact most of the ranking criteria are related to funding related issues such as the ratio of teachers to students, the number of computers, the number admitted as a percentage of applicants, etc. - BH) NATS COULD WIDEN DEPOSIT GUARANTEE SCHEME ----------------------------------------- The retail deposit guarantee scheme could be altered if National wins the election. The party's unhappy about not being briefed by the Government ahead of its decision to provide support for retail deposits over the next two years. National leader John Key says some changes to the scheme would be possible under a National-led government, including widening the scheme to include wholesale deposits. SURVEY GIVES THUMBS UP TO POLICE -------------------------------- An independent survey has found most people believe the police are doing a good job. Of more than 4,000 people who had contact with the police in the past six months, 80 percent are either satisfied or very satisfied with the level of service they received. Eighty-nine percent say police staff are competent. Assistant Commissioner Grant Nicholls says policing is a complex and challenging job, particularly as staff are often dealing with people who are emotionally distraught. He says the survey is part of an ongoing improvement project being run by police. 2010 TAX CUTS STAY - PM ----------------------- Labour is rejecting suggestions it plans to cancel next year's planned tax cuts. National has raised questions about whether a planned mini-budget by Finance Minister Michael Cullen in December would spell the end to the second round of tax cuts in 2010, but Prime Minister Helen Clark says that is not on her agenda. She says John Key is dreaming if he thinks the planned future tax cuts will not be going ahead. PSA WORRIED ABOUT IMPACT OF TAX CUTS ------------------------------------ The union representing public servants is concerned about the possible impact of tax cuts on Northland's economy. The Public Service Association has released a report saying tax cuts will probably be funded by job cuts in communities throughout New Zealand. National secretary Richard Wagstaff says there are close to 6,000 public sector jobs in Northland and if jobs are lost, it will not only be services which suffer. "They (the public sector) bring $57 million into this economy and if you reduce those services then people in business, shops and so forth, will notice a reduction of public service spending in this economy." Mr Wagstaff says hardworking Department of Conservation rangers, fisheries officers and social workers deserve better than being dismissed as bureaucrats. NZ UNIS SLIP ON WORLD'S TERTIARY RANKINGS ----------------------------------------- Most of New Zealand's tertiary institutions have slipped down the rankings of the world's top 200 universities. The list by the UK-based Times Higher Education is out for 2008. Auckland comes in at number 65, fifteen places down from last year. Otago has slipped to 124, down from 114 last year but Canterbury has moved up two places to 186. Topping the list are the two universities in the United States, Harvard and Yale. They are followed by prestigious British institutions Cambridge and Oxford. The highest ranked Australian university is the Australian National University at 16, with Sydney coming in at 37. (So fund us. Let us perform. Let us employ good international staff. Hard to do when the NZ academic salaries are 40% lower than Australia's. - BH) SHONKY OPERATORS ENCOURAGED --------------------------- A financial analyst says Labour's plan to guarantee savings deposits could lead New Zealand into dangerous territory. The current international financial turmoil has led the Government to offer protection to anyone with money deposited in banks or financial institutions. Analyst Brian Gaynor says the plan will probably save a few people's money but it also presents potential problems. He says it looks as though the Government will bail out companies who have been very poorly managed and have made poor investment decisions. "...You could set up a new finance company, which of course would be Government guaranteed. You could then go with the money to Sky City Casino and gamble it all, and if you lost it, well, the investors would get their money back anyway." Brian Gaynor thinks the scheme will be good on a temporary basis, but shonky companies will have to be weaned off the Government guarantee very quickly. Wednesday, 15 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ MORE DETAILS OF DEPOSIT GUARANTEE SCHEME ---------------------------------------- Treasury has just released more details of the Government's deposit guarantee scheme. It includes tighter requirements for non-bank deposit takers such as finance companies. Those with a risk rating of BB or lower will have to pay a fee to get the government guarantee. They will also face increased reporting requirements and assessments of their business practices. HOME OWNERSHIP SCHEME ANNOUNCED BY LABOUR ----------------------------------------- A new home ownership scheme has been announced by Labour, aiming to get more people into their first home. Prime Minister Helen Clark has announced details of the scheme on a public estate development in West Auckland this afternoon. Under the scheme, the homeowner will pay for their new house to be built, but the Crown will own the land. Miss Clark says the plan will dramatically lower the cost of home ownership. She says 1,500 sites will be made available over the next four years. The scheme effectively makes the government leaseholders. It has been targeted towards low income families and follows on from the Shared Equity and Welcome Home schemes. IN ALL, 681 PEOPLE STANDING IN ELECTION --------------------------------------- The figures are all in, showing 19 parties and 681 candidates are contesting the general election. The Chief Electoral Office says a total of 488 men and 193 women are hoping to become MPs, 58 fewer than in 2005. Of the candidates, 35 are standing as independents or are representing unregistered parties. The electorate with the most candidates is Wellington Central, with 14. Three electorates have just two candidates standing, Hauraki-Waikato, Waiariki and Te Tai Hauauru. NATS WANT MORE NZ SUPER FUND INVESTMENT --------------------------------------- National is proposing changes to the Super Fund which would see it invest more in New Zealand. Leader John Key says his party has set a target of 40 percent of domestic holdings. He says it will have positive short and long term benefits on the economy. Equity, bonds, commodities and infrastructure have all been identified as areas for investment. TEENS DISCOURAGED FROM TEXTING WHILE DRIVING -------------------------------------------- A programme will be launched at Parliament today aimed at stopping teenagers texting while they drive. The teaching aid for secondary school students called "a msg in contxt" comes after teenage sisters Lucy and Isabelle Simon were killed when their car struck a truck north of Otaki in January 2007. The Levin Coroner pointed to worn snow tyres as a major factor in the crash, but also found it was likely that Lucy was distracted by a text message and overcorrected her steering. Police Commissioner Howard Broad says the programme has been trialled in a range of schools with excellent results. "It is compelling, not only because it is so well considered but also because it is a story that could be about many other families." He is thanking Lucy and Isabelle's mother, Anne McCabe, who he said had the courage to share her grief for the project. The resource pack includes moving personal testimony from Lucy and Isabelle's brother Jimmy, who was 12 at the time of the accident, and the driver of the truck involved who was unable to work for two months following the crash. A survey earlier this year by AA Insurance, suggested two thirds of young people sent and received text messages while driving and new research just out in Australia shows Generation Y drivers are becoming increasingly distracted by their music playing, photo taking and text messaging on mobile phones. AAMI's survey found that 71 percent of drivers aged under 25 have either sent or received a text while driving. FUNDING CUT TRAINING COURSES ---------------------------- Financial cutbacks in the education sector are expected to disadvantage many unemployed. The Tertiary Education Commission has announced it will reduce funding to the Salvation Army's Employment Plus training programme by 15 percent next year. Salvation Army spokesman George Borthwick says courses will be closed at 11 sites nationwide, including in Christchurch and Dunedin. He says hundreds of people will miss out on improving their chances of getting work at a time when unemployment is rising. Mr Borthwick says the Salvation Army has sought a meeting with the commission to try to get some of the funding reinstated. He is disappointed with the lack of consultation prior to the commission's decision. PROPERTY MARKET MORE AFFORDABLE ------------------------------- Housing affordability has improved to its best level in two years thanks to tax cuts and a drop in the property market. The Wizard Home Loans Affordability report shows that last month, it took 71.4 percent of the median take-home pay to service the mortgage of an average house, down from 73.6 percent in August. Financial expert Bernard Hickey says while it might be a buyers market, he doubts there will be an increase in sales due to the financial turmoil. He predicts a sharp fall in house prices, as banks stop lending to anyone wanting to borrow more than 80 percent of the value of a house. Mr Hickey expects interest rates to fall again when the Reserve Bank reviews the official cash rate on October 23. Southland's home affordability remains the best in the country at 44.4 percent. Thursday, 16 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ ACT WANTS TO CUT TAXES AND GST ------------------------------ ACT's tax policy advocates lower income tax and a cut to the GST rate. Finance spokesman Sir Roger Douglas wants a flat rate of 12.5 percent for income up to $20,000, and 15 percent for higher incomes and companies. Sir Roger introduced GST and now wants it cut by 2.5 percent to 10 percent, as well as tax on petrol cut by half a billion dollars. He would fund the tax cuts by curbing increases in Government spending to 3.6 percent, rather than the six percent it has been increasing at in recent years. The only exception will be for law and order, where ACT is committing a billion dollars, and the half a billion it wants spent on easing hospital waiting lists. (Sir Roger lingers on, like the late Queen Mother, or Emperor Hirohito, long after their contemporaries had gone. I want no part of him or his philosophies. - BH) "NO FREE LUNCHES" FOR STATE SECTOR UNDER NATS --------------------------------------------- National is proposing a cap on employees and potential restrictions in spending for the state sector. Leader John Key has confirmed the number of employees in the civil service will be capped at the current 36,000. Over time that number is expected to reduce due to natural attrition. Mr Key is also proposing an expenditure control committee to examine departmental spending, which both he and his deputy Bill English would be on. He is warning there will be no free lunches, saying some departments may be forced to forgo new initiatives. Mr Key has also confirmed the Maori seats are not a bottom line for National this election. He says Maori Party co-leader Pita Sharples has raised the issue with him on a number of occasions and he has acknowledged the matter. Mr Key says he is not pre-judging any deals as he does not know what terms and conditions the Maori Party would bring to the table. (I am convinced that the way to diminish the number of employees is to get rid of the obsession with templates, with "one best way" of doing things. There are more people now in head offices and central bureaucracies telling other people how to do their jobs than there are people actually doing the core jobs. - BH) PHARMAC KEEPS TO BUDGET ----------------------- Pharmac admits it has made some difficult decisions, but has kept spending on medicines to just under its $635 million budget. The actual amount spent was $634.4 million. The little bit left over is less than 0.1 percent of its budget, or the cost of half a day's medicine dispensing. Spending is $35 million up on last year. The increase is largely due to a seven percent rise in the number of prescriptions. (Pharmac spending less than its budget is a cause for shame - BH) NZ FIRST WANTS DROP IN IMMIGRANT NUMBERS ---------------------------------------- New Zealand First wants to cut immigrant numbers. Leader Winston Peters has made the announcement during a speech to Grey Power in Nelson. He says New Zealanders should not have to compete with immigrants for jobs. Mr Peters also outlined his intention to allow only immediate family members of immigrants into the country for family reunification, and implement an education policy to teach the New Zealand way of life. The second part of Mr Peters' speech focussed on the elderly, where he promises to increase superannuation by more than $70 a week for married couples and $40 a week for singles. CREDIT APPLICATIONS DOWN, DEFAULTS CLIMBING ------------------------------------------- There are predictions things are going to get tougher for retailers ahead of Christmas. Figures from credit information company Veda Advantage show the number of defaults has doubled since 2004. It says applications for credit are down 10 percent on last year. Veda's New Zealand director John Roberts says it reflects that people are wary of burdening themselves with extra debt in the current climate. He says it shows just how far confidence has slipped. Mr Roberts predicts it will get worse before it gets better, saying it is "a classic pig and python situation". He says the snaking line of credit will be choking down the pig of defaults until around May next year, when he expects things to settle down. GUARANTEE SCHEME STILL LACKING SAY BANKS ---------------------------------------- The banking sector is concerned the Government's deposit guarantee scheme does not go far enough. The Government has announced further details of the retail deposit guarantee scheme, including tighter controls on non-bank deposit-takers such as finance companies. The scheme will include tighter requirements for non-bank deposit-takers and a three percent annual fee on deposits for finance houses rated BB or lower. Concern has been raised that because banks with $5 billion in deposits will have to pay a fee of 10 basis points, they will end up subsidising smaller banks and finance companies which will receive the guarantee for free. The move would allow finance companies to grow their bank deposits and lend to riskier areas of the economy such as building developments. BNZ head of market economics Stephen Toplis hopes the scheme will be extended to include wholesale funds, as it is in other countries, because he says that is where investors are flocking to. Mr Toplis says if the scheme is not extended, there is a risk the banking sector will have fewer funds available to lend to the wider economy and the business sector will suffer. "Our real concern is not the health and well- being of the banking system, it's the health and well-being of the economy and quite simply if businesses can't borrow, particularly in the current environment, then they're going to struggle to cope." Mr Toplis says if banks cannot get money in the door, they cannot lend it out. SUPPORT FOR SUPER FUND INVESTING LOCALLY ---------------------------------------- The head of the Stock Exchange believes National's Super Fund policy comes at a good time. National leader John Key says if his party gets into power, the Super Fund would hold at least 40 percent of its portfolio in New Zealand businesses. Critics claim the move would compromise the fund's independence but NZX CEO Mark Weldon says the models purists are using are the same ones bankers used to make decisions that led to the current credit crunch. He believes National's idea would grow the economy and comes at a perfect time, as it would utilise New Zealand's savings pool at a time when firms cannot access capital globally through banks. Mr Weldon says it makes sense for the taxpayer who wants a good return, because assets are cheap and the exchange rate means it is a good time to invest locally. He says sovereign funds around the world are moving towards cornerstone strategic shareholding, in order to generate the best returns. GOVT CALLED TO BAIL OUT MILL ---------------------------- The Maori Party wants the Government to bail out Carter Holt Harvey's pulp and paper mill in Putaruru. The company is expected to axe 212 jobs in the Waikato township by the end of the year. A further 100 jobs are likely to be lost at the Mt Maunganui mill. Maori Party co-leader Tariana Turia wants the Government to intervene. She says the country is going through turbulent times and that calls into question conventional thinking that governments do not intervene in free markets. Mrs Turia says the Government has acted before in such situations. If the government can save jobs in Air New Zealand, bail out the Bank of New Zealand, buy back the rail and guarantee investments in finance companies and banks, why can't they help to save 200 jobs in the Carter Holt mill in Putaruru?" Mrs Turia says the near collapse of global markets and banking systems shows that markets do not always serve the interests of the people. Friday, 17 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ SHELL DROPS PETROL AND DIESEL PRICES ------------------------------------ Shell has dropped the price of petrol by 8c a litre to $181.9. It has also dropped the price of diesel by 6c a litre. The company says while crude oil has been steadily falling, there is now been a decrease in the cost of refined product. It says kiwi dollar has also stabilised over the last couple of days, which Shell says has helped in passing on this significant saving to motorists. PSA WARY OF "RAZOR GANG" ------------------------ The union representing public servants says John Key's plans for the state sector are another reason not to trust the National leader. Mr Key says a National government would cap the number of people employed within the state sector at the current level of 36,000. He is also proposing an expenditure control committee to examine departmental spending. National Secretary of the Public Service Association Brenda Pilott says the union's concerns are not around the cap, but more so about the "razor gang" Mr Key plans to set up, which clearly sets out to cut staff numbers. She says Mr Key told the sector one thing, but has now announced something completely different. DRIVING AGE COULD BE RAISED NEXT YEAR ------------------------------------- Transport Safety Minister Harry Duynhoven says the driver licence system could be revamped and the driving age raised as early as next year. It comes after Coroner Sue Johnson has called for the driving age to be lifted. She says there also needs to be an increase in the time new drivers spend on restricted licenses. Ms Johnson has made the comments over the death of Christchurch City Councillor Graham Condon, who was killed by a 15-year-old restricted driver last September. A Government proposal to raise the driving age to 16 and extend the learner licence period is before the parliamentary transport select committee. Transport Safety Minister Harry Duynhoven says a bill to raise the driving age could be considered by Parliament as early as next year, whatever the outcome of the election. Mr Duynhoven says the current learner and restricted licence rules have been in place for 20 years. He says they have found many of the crashes involving young people occur when they are breaching the conditions of their licence. RALLY TO ERADICATE POVERTY -------------------------- Hundreds of people are expected to gather in Wellington today for live music, a free lunch and a serious cause. It is International Day for the Eradication of Poverty, with millions around the world taking action against poverty in the developed world. The Stand Up event is part of a global programme organised by the UN Millennium Campaign and will be in Civic Square around the middle of the day. Several MPs including Labour's Charles Chauvel and Sue Kedgley from the Green Party will speak on the issue, before serving everyone soup for lunch from a Salvation Army van. People attending the event will take a pledge, read by Mr Chauvel, to help end poverty by 2015. IMMIGRATION POLICY "SHORT SIGHTED" ---------------------------------- New Zealand First's immigration policy is being branded as short sighted. The party led by Winston Peters wants the number of immigrants reduced and those who are allowed in, taught the kiwi way of life. He says during the global financial uncertainty and as Treasury forecasts a rise in unemployment New Zealanders should not have to fight with foreigners for jobs. Islamic Association president Javed Khan says by and large, most immigrants integrate well into New Zealand. He says many take jobs New Zealanders are not keen on, including being shop assistants or taxi drivers. He wants Mr Peters to have more of an open mind and to focus on the economy. Mr Khan says immigration is good for the country. Prime Minister Helen Clark is also rejecting New Zealand's First's immigration policy. She says cutting back immigration numbers is not the answer to the slowing global economies. Miss Clark says there has never been a time in the country's history when skilled people did not need to be brought in. However, she says if unemployment numbers worsen, the Government may look at reducing the number of work permits it issues. RECESSION FEARS INCREASE AGAIN ------------------------------ The world's financial markets have dived again overnight, as efforts to bail out the financial sector fail to ease fears of a global recession. Japan's Nikkei has suffered its worst one- day loss since the stock market crash of October 1987. Across Europe, Britain's FTSE 100 has lost 5.4 percent, Germany's DAX is down 4.9 percent and France's CAC-40 ended 5.9 percent lower. The Dow Jones Industrial Average has been on a roller coaster ride again losing hundreds of points at one stage and then going into positive territory briefly as the price of crude oil dropped by more than $US4 a barrel. It is currently trading at $US69.75 a barrel, a fall of $4.79. US investors are reacting negatively to dismal manufacturing data. Largely due to the impact of Hurricanes Gustav and Ike, the amount factories produce has recorded the largest drop in nearly 34 years. Adding to Wall Street's woes, steep mortgage and credit-related writedowns have resulted in Citigroup and Merrill Lynch reporting large quarterly losses. Switzerland is the latest government to bail out a financial institution. The country's largest bank, UBS, will receive a multi-billion dollar rescue package. TWO FERRY SERVICES CEASING -------------------------- Almost a thousand Auckland ferry passengers may have to find another way of getting to work as Fullers ceases two services, but it is hoped another operator will come to the rescue. Fullers is giving 90 days notice that it is stopping its services to Half Moon Bay in Howick and to Bayswater on the North Shore. Mark Lambert from the Auckland Regional Transport Authority says the move is disappointing as around 800 people a day use the services. He would like to see a repeat of the situation in 2005, when Fullers abandoned its commercial service to Half Moon Bay and ARTA stepped in to provide an emergency public subsidy. Mr Lambert says ARTA has offered to increase the public subsidy and reduce Fullers' costs, but Fullers has rejected the proposal. He says Fullers also wanted a fare increase, which ARTA was against. Mr Lambert says ARTA is committed to providing ongoing ferry services to both areas and will be approaching ferry operators. "ARTA is very conscious of financial pressures on its customers and is working to minimise any additional cost impact." SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. From news at wysiwygnews.com Mon Oct 27 17:45:46 2008 From: news at wysiwygnews.com (news@wysiwygnews.com) Date: Mon Oct 27 17:46:01 2008 Subject: WYSIWYG NEWS - 27 Ocober, 2008 Message-ID: <5C980AE42F38704494A3D4FD9A6F2E7B03330FBA@STAWINCOMAILCL1.staff.vuw.ac.nz> Subject: 27 October, 2008 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer. Based on my theory of sunshine as a producer of happiness, I ought to be feeling pretty miserable, but somehow I'm not. With the exception of Sunday last (when we did the trip to Wanganui described in the previous issue), there has been no day (until today) without rain and wind. Grey, and bleak, albeit with the occasional narrow shaft of bright sunshine. One of the season's first cruise ships came on Monday, and out at the harbour mouth, its vast white hull was picked out like some luminous space craft arriving on a new planet. I suspect most of the passengers elected to stay aboard rather than brave the struggle along the uneven footpaths of Jervois Quay into spiteful rain flung by a stiff Southerly. Nevertheless she was a fine sight, moored between the container vessels and the interisland ferries. Today, which is the Labour Day holiday in New Zealand, is fine at last, but with a fairly stiff cold Northerly to dispel any illusion that summer is yet here. Mary and I went over the hill to Wainuiomata and thence down the coast road to the sea, since Mary needed some driftwood for artistic purposes. I haven't had such a clear view of the Seaward Kaikouras for a very long time. A measurement on Google Earth shows those lofty peaks to be 150 km from the beach where we sat. With the high peaks covered in snow from the preceding weeks of cold weather, they were truly spectacular against the deep blue of the Cook Strait and the Pacific Ocean. Close to the steeply shelving stony beach, the wind whipped great sheets of spray from the tops of the thundering surf and hurled it Southward at high speed. To the Western end of the beach, sheep were grazing on the salt laden grass around the mouth of Wainuiomata River, and as we sat on our rug in a sheltered spot below the road, I saw a dog bounding towards the sheep. It was a woolly hearthrug of a dog, of indeterminate breed, clearly not a farm dog with any legitimate purpose other than to harass the animals. A family group which had turned this stupid dog loose were meandering along the beach oblivious to the panic in the flock by their pet, and without thinking about it I let out a bellow that I haven't used since parade ground days as Squadron Warrant Officer in the Air Training Corps at school. The owner became aware of the problem and sprinted after the errant hound, which, to its credit, responded to his call. With the dog properly on its leash as it should have been to begin with, the pair slunk back down to the beach. They were lucky , I think, that it was me and not the owner of the sheep who saw the incident, or the dog would have been shot out of hand, and no court in the country would have upheld any complaint. We are now in the last two weeks leading up to the election (in NZ) and I am daily more disappointed in the conduct of most candidates. I shall just try to ignore everything until the election day comes, and then try to figure out how to live with whatever the result is. I have to say that there are no foregone conclusions here, and that is surprising me. ---- 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 Chip Chenoweth, president of Prater's Foods Inc, Texas. Many thanks Chip. ---- On with the News. Monday, 20 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ REPORT PUTS "TOO MUCH EMPHASIS" ON MARRIAGE ------------------------------------------- Relationship Services says the importance of marriage is being overstated. It comes after new figures suggest family breakdowns and decreasing marriage rates cost taxpayers an estimated one billion dollars a year. Relationship Services says the report by the New Zealand Institute of Economic Research puts too much emphases on marriage. The counselling service says peoples' commitment to a relationship is not dependent on their marital status. National practice manager Cary Hayward says the making any relationship work for the long haul is hard and people should feel confident to seek help if they strike problems. (While I disagree vigorously with Relationship Services on this, I recognise that both positions are likely to bee entrenched. I think it is impossible to over-emphasise the value of a good marriage - BH) CAMERA FINDS NEW MARINE LIFE ---------------------------- There is excitement about the discovery of a whole range of unknown marine species off the Northland coast. The Department of Conservation has been using a remote-operated camera in the Poor Knights Marine Reserve. It can survey depths of up to 300 metres. Marine scientist Dr Debbie Freeman says very little is known about New Zealand marine life at depths below 40 metres so the technology opens a new frontier. She says they have found a tropical fish never seen before in New Zealand waters, a new sea slug, and other sponges and organisms which they have no idea what they are. FIRE AT WELLINGTON INTERNATIONAL AIRPORT ---------------------------------------- Wellington International Airport's terminal has been evacuated due to a fire. A Fire Service spokesman says the fire started just after 2pm on an escalator near the Qantas Lounge. He says six appliances are at the scene, although the fire has been brought under control. Special devices have been brought in to hunt out additional hotspots. An airport spokesman says flights have been delayed. GREENS PICK LABOUR AS PREFERRED PARTNER --------------------------------------- The Green Party says Labour is its preferred coalition partner, because its policies are more aligned with its own. However the Greens have not completely ruled out working with National. Co-leader Jeanette Fitzsimons says the party's analysis shows it that on the whole, National would take New Zealand in the wrong direction. She says many of its policies head off down a dead end street. "This means that we can not form a government with National, or support them on confidence and supply, although we could work with them in areas where we have common ground." Ms Fitzsimons says Labour also seems to be heading off in the wrong direction in some areas, while in others they are on the right track. "Whether we could form a government with them would depend on reaching a policy agreement that advanced green policies on a number of fronts." The party's other co-leader Russel Norman says the Greens are a strong and independent voice. "We don't exist to prop up anyone else's government." (On Saturday, Peter Dunne who is a cabinet minister in the present Labour-led government has announced that he (and his party) will no longer support Labour and instead will support National next time round. I have never warmed to Mr Dunne, though I believe him to be a conscientious electorate MP. However, this latest piece of "waka-jumping" brings back ugly memories of the disastrous Alamein Kopu. - BH) NATS PROMISE MORE POLICE OFFICERS --------------------------------- National is promising to increase police numbers and put more new officers on the front line. Leader John Key says National will add an extra 220 officers to the 1,000 more currently promised by the Government. He is also promising to boost the number of serving police staff in South Auckland, saying 300 extra officers will be assigned there by the end of 2010. National says the policy would cost $18.5 million a year. (It will be a good trick if they can do it. I believe that the shortage of numbers at present is not due to the unwillingness of the police to recruit. Rather, there is a shortage of suitable qualified people willing to take on the task of being involved in everyone else at their worst. - BH) PM'S NON-SPENDING "A SMART MOVE" -------------------------------- The Listener's political columnist, Jane Clifton, believes the Prime Minister made a smart move by promising Labour will make no more big spending policy announcements before election day. Ms Clifton says the government was expected to promise more in the childcare area, but the current economic crisis has prompted her to say 'there is no more money, we can't do it.' "It's pretty clever politics I think to say, OK, we're going to be really responsible, whereas National is likely to have more spending in the policies it announces in the coming weeks." Ms Clifton also says National leader John Key's call for a bi-partisan approach to the economic crisis was worth a try. "Funnily enough, Michael Cullen is not buying it. His view is 'thanks for the advice sonny, but run along we're managing it.'" National wants to work with the Government on the $150 billion deposit guarantee scheme and is particularly keen to see it follow Australia's lead by including cover for wholesale lending. CLARK TURNING FOCUS TO LEADERSHIP --------------------------------- Labour leader Helen Clark is turning the focus of her party's election campaign towards who is best to lead New Zealand through the financial crisis. Miss Clark says that during the campaign, Labour will not announce any more significant spending initiatives. She says instead, she is looking at an economic stimulus package, which will come in the first 40 days in office if Labour is re-elected. She says strong leadership is becoming increasingly important. "It is not a time for someone with the learner wheels on, it's a time for the people who have proven that they can lead, that they do have strength of purpose, consistency to get on and do the job." Miss Clark suggests a change to a new leader no longer seems as interesting as it might have even a few weeks ago. NATS WANT ACTION OVER WHOLESALE GUARANTEE ----------------------------------------- National is adamant wholesale deposits must be covered by the bank deposit guarantee scheme as soon as possible. Under the scheme, the Crown guarantees retail bank deposits up to a total $150 billion but has not gone as far as the Australian Government, which also guarantees wholesale deposits (the money lent to Australian banks by foreign banks). National leader John Key wants a bi-partisan approach from Labour. "I'm concerned that officials will be distracted by the political process. I'm concerned that the Australians themselves might not be sure about what's happening because of the political uncertainty in New Zealand because of the election." Mr Key says not only do the Reserve Bank and Treasury believe the issue should be handled swiftly, but trading banks and other stakeholders also want action. Prime Minister Helen Clark says National is being briefed on developments. "Michael Cullen has been keeping Bill English fully abreast of the work that's being done by the Reserve Bank and Treasury to look at this issue." MARRIAGE BREAKUPS COSTLY ------------------------ Marriage breakups are costing taxpayers at least $1 billion a year according to a lobby group. New Zealand Institute of Economic Research (NZIER) has completed a report commissioned by Family First entitled "The Value of Family - Fiscal Benefits of Marriage and Reducing Family Breakdown in New Zealand." It found that over the past decade, family breakups have cost taxpayers approximately $8 billion. Family First spokesman Bob McCoskrie says the study shows that the decline of marriage, the high teenage fertility rate and the rate of solo parenthood is not just a moral or social concern but should also be of concern to government and policy makers. Mr McCoskrie says more must be done to strengthen marriages and help family succeed. He claims the investment will pay for itself. ?The report states that even a small reduction in family breakdown and increases in marriage rates could provide significant savings for taxpayers. ?The focus has been on ?child poverty? but this misses the real issue ? that is, poverty among families with children, and the way that divorce, unwed childbearing, teenage pregnancy and sole parenting contributes to that poverty. For example, sole parents have the lowest average living standards of all economic family unit types.? Senior economist Dr Patrick Nolan says he took quite a moderate approach to the figures. He says the $1 billion sum reflects spending on welfare benefits, Working for Families tax credits, justice and health. He says it is based on assumptions about the relationship between family breakdown and poverty. Tuesday, 21 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~ STOLEN MEDALS BACK ON DISPLAY ----------------------------- The Waiouru Army Museum's stolen war medals are back on public display. The 96 medals, including nine Victoria Crosses, were returned to the museum in a celebration which started at 7am. They were taken in a smash-and-grab in December and have been in police custody since their return in February. During the ceremony Detective Senior Sergeant Chris Bensemann was awarded a special commendation for the Chief of Army for the police's efforts in restoring the military honours. Mr Bensemann says he is very honoured and it is a day that he is proud to be a detective. Two men were last week charged over the medal burglary. BNZ RECORDS $657 MILLION PROFIT ------------------------------- BNZ has announced an after tax profit of $657 million for the year ending September, a nine percent increase on 2007. Chief executive Andrew Thorburn says the bank is well positioned in the current challenging economic environment. He says the BNZ has a conservative approach to lending and that means it has a quality loans book. Mr Thorburn says lending volumes continue to be strong, although they are slowing from the historical highs of recent years. NATIONAL WILL NOT FLOAT KIWIBANK -------------------------------- National has responded with a firm no to New Zealand First's proposal to float Kiwibank on the stock exchange. Winston Peters is proposing the bank be opened up to investment, restricted solely to New Zealanders. National Leader John Key says National will not sell Kiwibank. He says asset sales are off National's agenda until 2011 Mr Key also believes it would be impractical to adopt Mr Peters other proposal, that Kiwibank pick up all the government's business, as he does not know if it has the capability to do that. Progressive MP Jim Anderton, who fought to see Kiwibank established, is aghast at the proposal. He says selling Kiwibank would destroy it. PIG CELL TRIAL COULD HELP DIABETES SUFFERERS -------------------------------------------- Type 1 diabetes sufferers could have an alternative to injecting themselves with insulin, if an approved trial is successful. The Ministry of Health has agreed to let Living Cell Technologies carry out a trial where eight patients will receive insulin producing cells from pigs. Living Cell Technologies medical director Professor Bob Elliot says the pigs are specially bred in ultra clean conditions, and the cells will be coated with a material to make sure they are not rejected by the body. He says the cells will be injected into the tummy cavity where they will set up shop and produce insulin similar to how a pancreas would without diabetes. Professor Elliot hopes it will make a huge difference to sufferers, who can hopefully reduce the amount of insulin they would usually inject into themselves. He says many sufferers are living on a knife-edge, not knowing where their levels will be each hour. Professor Elliot hopes the trial could begin after Christmas. INFLATION AT 18 YEAR HIGH ------------------------- The Consumer Price Index, which is a measure of the price of goods and services purchased by households, rose 1.5 percent in the September quarter bringing annual inflation to 5.1 percent for the quarter. The Reserve Bank aims to keep inflation between one and three percent over the medium term. The increase is the highest annual increase since the year to the June 1990 quarter. The transport group made the most significant contribution to the annual increase, rising 11.3 percent. Higher prices for petrol (up 29.3 percent) accounted for just over a quarter of the rise. If petrol prices had remained unchanged from the September 2007 quarter to the September 2008 quarter, the CPI would have risen 3.7 percent. Grocery food also recorded a significant increase of 12 percent, housing and household utilities were up 4.67. For the September quarter, food prices increased 3.7 percent. The main driver was an increase in vegetables prices (up 20.0 percent), as a result of unusually wet weather. Prices for the housing and household utilities group were up 1.4 percent, with the most significant contribution coming from local authority rates and payments (up 4.7 percent). The transport group increased 2.0 percent, mainly due to higher prices for petrol (up 4.6 percent), which were offset by lower prices for second-hand cars (down 8.0 percent). GLOBAL TURMOIL BITES STH ISLAND BUSINESSES ------------------------------------------ A new survey shows worldwide upheaval in financial markets has eroded significant value from South Island business. The Deloitte's South Island index, which tracks the progress of 30 South Island listed companies, has recorded a 15.2 percent decrease in the third quarter of this year. In contrast the NZX50 was down 3.3 percent. Deloitte's spokesman Paul Munro says September proved to be a particularly challenging month and the decline means significant value has been taken off the shares of South Island companies. "Overall, the Index's value decreased by $676 million to a total market capitalisation of $3.78 billion." Mr Munro says until now, the South Island has proved to be relatively well-insulated against tightening market conditions but the resilience gave way in the past quarter. He says it is a tricky and unpredictable market and the volatility and uncertainty has started to bite. ?The nervousness that has swept through the market should provide the catalyst for companies to undertake sensible planning in areas such as the management of cash flow, liquidity, and debt/equity positions. There's no better time than now to put some effort into getting this right.? Despite the reduction in the South Island index, 53 percent of the companies recorded an increase in their market capitalisation during the quarter. In previous quarters, the declines were mainly being felt by the smaller companies but in the past quarter the larger companies such as PGG Wrightson, Pike River Coal and NZ Farming Systems Uruguay have felt the heat. "Their relative significance in the South Island Index has meant their declines in market capitalisation have had a major impact.? Notable percentage increases in market capitalisation were achieved by Pacific Edge Biotechnology (+63% in the quarter), Connexionz (+50%), Apple Fields (+38%), and Scott Technology (+29%). Homeware company Smiths City (+25%) also had a positive quarter, bucking speculation about pain being felt at the retail counter. "As with the second quarter of 2008, five of the eight South Island sectors experienced declines in Q3. Primary (-30.5%) and technology (-16.1%) led the falls, while the best performed was the port sector (+3.5%). "With a 1% increase in market capitalisation, Ryman Healthcare enjoyed the largest increase in dollar terms and remained the South Island's largest listed company ($805.0m) as at 30 September 2008. It was followed by PGG Wrightson ($462.9m) and new entrant Pike River Coal ($431.5m)." HOMEOWNERS ANGRY ABOUT CHARGES ------------------------------ The Banking Ombudsman is looking into the fees banks charge when customers want to pay off their fixed mortgage early. There has been a flurry of complaints over the charges in the past month. It is the first time in several years the issue has been raised with such vigour. Deputy Banking Ombudsman Susan Taylor says the complaints cover a range of issues. "People have been taken aback by the size of the fee and are questioning how it has been calculated. Some of the complainants have been saying that they only found out on the day of settlement what exactly they were going to be charged." Ms Taylor says the banks' calculation processes and disclosure policies are being investigated. But better news for homeowners is likely later in the week. Economists are tipping the Reserve Bank will cut the official cash rate by one percent on Thursday, which should bring down mortgage rates further. The OCR is currently 7.5 percent. ANZ's Chief Economist Cameron Bagrie says a substantial cut is needed to help moderate the flow-on effects of the carnage in international financial markets. "While it's encouraging the Reserve Bank is cutting the official cash rate, in New Zealand, that's going to pull the rates down, it's going to be partially offset by higher international funding costs. So, it's good news to households, but it's certainly not the full story." Mr Bagrie says an OCR of 6.5 percent is still too high and there is plenty of scope for further substantial cuts. PRIVATE WORKPLACE SUPER SCHEMES THREATENED ------------------------------------------ A retirement policy specialist fears private workplace superannuation schemes outside KiwiSaver are in danger of becoming extinct. Michael Littlewood from Auckland University says research shows 75 percent of employers operating super schemes would in retrospect not start one again and the sentiment seems to be increasing due in part to KiwiSaver. Mr Littlewood says the government is effectively setting the rules as to what employers should provide and so employers are asking what competitive advantage is gained by doing something different. He says in regard to KiwiSaver, employers are tiring of the undue clumsiness of the scheme and the constant changes taking place. He fears that further changes to the scheme under a new or revised government might cause "terrible harm" to employers' confidence in workplace superannuation. Mr Littlewood says there is a risk confidence will be undermined and infrastructure supporting workplace superannuation outside KiwiSaver will disappear. "If this happens, it could take a minimum of five to ten years before enthusiasm returns, given that a stable economic environment eventually prevails. That is unlikely at the moment, and we could see a completely new superannuation scene in the future as one that may not cater for retirement savers like those currently in existence do now." Mr Littlewood says superannuation is particularly ill- suited to the kind of politicised treatment it is currently attracting and New Zealand should have learned from the "superannuation mess" of the 1975-1993 period in preventing the subject being haggled over to score political points. He is calling on political parties to de-politicise superannuation. "Superannuation is one of New Zealand's most important pieces of social and fiscal policy and in this current climate of uncertainty, the issue has to be considered out of the political limelight in an apolitical and rational way." Private superannuation schemes cater for 290,000 current and retired workers with $14.2 billion in assets. Wednesday, 22 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~~ RETAINING MAORI SEATS KEY FOR MAORI PARTY ----------------------------------------- The Maori Party has today left National in no doubt that the retention of the Maori seats in Parliament is the bottom line for any coalition deal. National has signalled it wants to abolish the seats. The Maori Party has released a policy priority statement saying the seats will stay as long as Maori want them to and that they want them entrenched. Entrenchment means that it would take 75 percent of Parliament to vote for their abolition. The Maori Party wants the billion dollar spending cap on Treaty settlements to be abolished and the Foreshore and Seabed Act scrapped. It also wants compulsory heritage studies to be taught in schools and immigrants to complete a course in the history of the country. National seems prepared to possibly remove the fiscal cap on Treaty settlements. Leader John Key says it is important there is enough money to make sure claims are settled on a relatively fair basis. Mr Key says his understanding is possible to achieve the bulk of settlements without going beyond the cap, but it is something National would have to look at. NEW PRESCHOOLS FOR SOUTH AUCKLAND --------------------------------- The Government has announced $9 million of spending over the next two years for nine new early childhood education centres in South Auckland. The centres will be built on existing school sites. Education Minister Chris Carter says they will provide places for up to 450 children currently not participating in any pre-school education. He says early childhood education participation rates are lower in the Counties Manukau region than in any other part of the country. CLAIMS OF MASSIVE OIL DISCOVERY "MISLEADING" -------------------------------------------- Reports of a massive oil discovery in the East Coast Basin are being described as misleading. Canadian oil explorer Trans- Orient Petroleum believes there are 12.6 billion barrels of oil in the Waipawa and Whangai Shales. It intends to start drilling late next year. The Petroleum Exploration and Production Association says the assessment of the prospect is an estimate of potential and not a discovery of oil. It says while there is potential, there is no guarantee that amount of oil is underground. The association says the only way of confirming there is oil is to drill a well. (Trans-Orient have reportedly been in trouble before for exaggerated claims. We shall have to reserve judgement on this one. There is plenty of scepticism in the industry. - BH) NATIONAL MP "REGRETS" REMARKS ABOUT WORKERS ------------------------------------------- National's immigration spokesman Lockwood Smith says he regrets remarks about Asian and Pacific Island workers. Dr Smith says he was taken out of context when he said Asian workers are more productive because they have small hands and some Pacific Islanders need to be taught how to use toilets and showers. Dr Smith made the comments while campaigning in Blenheim, where he was speaking about expanding the Recognised Seasonal Employer Scheme to include workers from Asia. He says he was simply reporting strong concerns voiced to him by many employers. National leader John Key says Dr Smith understands his comments could be considered offensive. "I think it is possible the statements he made yesterday could be offensive and I think it's totally appropriate for him to apologise this morning." Mr Key believes voters will look at the context of the event, the comments made by Dr Smith and the apology he has given. HOUSING MARKET STILL GOING DOWN ------------------------------- A real estate company expects the housing market to continue to slide due to the uncertainty of the global credit situation. Figures released by Harcourts show sales across New Zealand are down by 11 to 15 percent for September but in Auckland, they have plunged 35 percent on the same time last year. Bob Hargreaves, Professor of Property at Massey University, says people have lost confidence in the market and banks have become tougher in issuing credit. "People are finding it harder to get mortgages. It looks like house prices are continuing to slide, so from the point of view of a buyer I suppose, people are thinking, well, we may as well hold on. There's no hurry." Mr Hargreaves believes the property market has not yet bottomed out. CONTACT DIRECTORS CRITICISED FOR FEE RISE PLAN ---------------------------------------------- The Energy Minister is sending out a warning to Contact Energy, describing as "extraordinary' the company's plans to increase directors' fees and bring two more onto the board, while at the same time raising power prices by 10 percent. The Australian-owned company wants to boost the board to six directors and raise the current directors fee pool which is split among four directors from $770,000 to $1.5 million. The company's deputy chairman Phil Pryke is already paid fees of $1,000 a day. The issue will be discussed at Contact's Annual General Meeting in Auckland tomorrow. Minister David Parker says the Commerce Commission inquiry on competition in the market, designed to ferret out unfair business practices, is imminent. "It's an inquiry that's been going on for some two years. It's very technical. There's a lot of information that experts at the Commerce Commission have to wade through, but they're expecting that report within weeks." Mr Parker says cost structures such as high directors' fees give weight to the view that companies are not being constrained by competition and people are being charged more than is proper. Bruce Sheppard from the Shareholders Association says the fees hike is obscene. He believes the increase will be shared between just three of the six directors, giving them $500,000 each which he say is absolutely ridiculous for a part time job. "On top of all of that, you have the fact that the company economically has underperformed for the last three years, profits are flat and are not rising." Mr Sheppard says it becomes even more insulting when Mr Pryke's earnings are taken into account. He says last year, he earned $330,000 in fees from Contact, making him the highest paid non-chairman director in New Zealand. He says Mr Pryke is paid more than Roderick Deane who chairs Fletcher Building. (Not bad for part time positions in an under-performing company. Where does one apply? - BH) NURSES UNION WANTS MORE AGED CARE SPENDING ------------------------------------------ Labour and National are being accused of not committing enough funding to the aged care sector. Prime Minister Helen Clark is promising an additional $13 million for the next financial year, and National leader John Key has committed $18 million. Nurses Organisation industrial advisor Lynley Mulrine says caregivers' pay has not been mentioned by either party. She says workers barely earn more than the minimum wage. Ms Mulrine says people working in the public sector are paid $3 or $4 more an hour than those in the private sector. She believes Labour has a long term strategy for the aged care sector and appears to have a better understanding of the issues than National. LABOUR'S BOOKLETS "SMART USE OF LOOPHOLE" ----------------------------------------- A legal expert believes Labour has made smart use of a loophole in the electoral law. The party has issued around 64,000 booklets for people aged over 60, which give advice about government entitlements and the impact of this year's tax cuts on the pension. Associate Professor of Law Andrew Geddis from Otago University says the electoral law still allows MPs to communicate with their constituents. "Labour has just chosen to do that around election time to remind everybody of what their MPs are doing. If they had used the word 'Labour' or they'd even used the colour red, that may have fallen foul of the election spending rules." Mr Geddis says the way Labour has crafted the pamphlets means the money spent on them is kept outside the Electoral Finance Act rules. But National is accusing Labour of dipping its finger back in the public purse in a bid to round up votes. MP Gerry Brownlee claims the booklets are a twisting of the rules. He says the intention is to have the candidate photograph sitting on the coffee table with the subliminal message that they should be voted for. Labour was caught out at the last election for spending $800,000 on its pledge card. (Smart uses of loopholes are not admired in the light of other recent abuses. - BH) FAMILIES STRUGGLING AS INFLATION SOARS -------------------------------------- The Salvation Army says inflation figures show just how much families are hurting. Inflation is running at 5.1 percent, an 18 year high. For the year to September, food prices rose 10.8 percent, petrol prices were 29.3 percent higher, electricity was 6.9 percent higher and housing rents rose 3.1 percent. The Salvation Army has distributed around 30,000 food parcels in the year to September, a 5,000 increase on the previous 12 months. Social policy spokesman Major Campbell Roberts says it has been increasingly tough for those on low incomes to provide for their family. He says children are suffering the most, as one in five live below the poverty line. Poverty is defined as living in homes earning under half the national median income. In Christchurch, Steve Lapslie from the Salvation Army's budgeting centre in Linwood says there has been a 15-20 percent increase in the number of people asking for help in the last six months. He says the essentials are getting more expensive and many people find they do not have enough money to pay their bills. He says the best piece of advice he can give, is to keep purchases to the essentials and keep track of spending, no matter how small the amount. Mr Lapslie says typically people on lower incomes ask for help, but the Salvation Army is now seeing more middle income earners struggling. Thursday, 23 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~~~ NATIONAL ACCUSED OF DANCING TO BANKS' TUNE ------------------------------------------ The Finance Minister is resisting calls from National for urgency in guaranteeing wholesale deposits with banks. Michael Cullen says the public could be forgiven for thinking John Key and Bill English have become the spokespeople for the Australian-owned banks. He says he will proceed with the deposit guarantees at an orderly pace. "We are not going to be stampeded by the Australian banks into hasty decisions. That doesn't mean to say there's an indefinite wait at all, but I am actually getting quite concerned at the sign that Mr Key and Mr English simply dance to a tune played by the Australian banks." Dr Cullen says he is not going to be rushed and would prefer to reply on the advice of his officials before finalising anything. The Australians are expected to move on the wholesale deposits any day now. PETROL PRICES FALL AGAIN ------------------------ A big drop in crude oil prices is said to finally be flowing through to the pumps. BP has joined Mobil, Shell, Caltex and Gull in dropping prices by 4c a litre. That makes 91 $1.72.9 a litre, except for Gull where it is $1.71.9. In total, oil companies have dropped petrol by 16c a litre over the past week, cutting 4c on Friday, 8c on Monday and another 4c today. Caltex spokeswoman Sharon Buckland says the price of crude fell significantly a short while ago and that has now flowed through to refined prices. She says there is often a lag between a drop in crude and a drop in refined. Ms Buckland says the other factor is that the New Zealand exchange rate, which was plummeting, seems to have stabilised. (Sounds good. How long until the cartel decides to push back? - BH) NATIONAL TO INCREASE MEDICINES FUNDING -------------------------------------- National is planning to establish unilateral agreements with certain countries to provide New Zealanders greater access to medicine. Leader John Key has made the announcement at a Grey Power meeting in Hastings this afternoon. He says National is planning to boost the funding for medicines by an extra $180 million over the next three years. He says this will expand the availability of subsidised medicines. Mr Key says National will also set up a process of unilateral recognition of medicines that have been registered and approved in countries like Australia and the US. The National leader is also pledging to restore the Hawke's Bay District Health Board to democracy. The board was sacked by Health Minister David Cunliffe in February. Mr Key says many Hawke's Bay residents feel a sense of injustice about the sacking, and National wants to restore the region's input into the health board as fast as possible. He says National will invite the seven sacked board members to assist the commissioners in the DHB's governance. Mr Key says National also wants to ensure fair analysis of the board's performance at the time it was dismissed, and to release as much information as possible on their sacking, including material that is being withheld by the minister. SHAREHOLDERS LASH CONTACT'S "CRIMINAL GREED" -------------------------------------------- Contact Energy is getting a grilling from shareholders at the company's annual general meeting. Contact wants to increase the money pool for its directors' fees from $775,000 to $1.5 million. Shareholders at the AGM at the Hyatt Regency in Auckland are accusing the company of corporate and criminal greed. One shareholder compared the directors with those responsible for America's crumbling economy. Another shareholder said the directors are corrupt, should be ashamed of themselves and should all be fired - which was met with loud applause from the hundreds of shareholders. Director Tim Saunders was asked if he felt he was underpaid, his response was "yes I am". (If I was with Contact, I would have swapped suppliers - BH) PRICE REGULATOR WANTED FOR ENERGY COS ------------------------------------- Progressive Party leader Jim Anderton says it is time energy companies were made to justify any power increases to a price regulator. As Contact Energy prepares to raise customers' power bill by ten percent, shareholders at the company's AGM in Auckland are being asked to vote on a resolution nearly doubling the pool for directors' fees to $1.5 million. The proposal is likely to be adopted due to the support of 51 percent owner Origin Energy. Mr Anderton accuses energy companies of making consumers pay for directors' fees set at greedy levels. He says Contact is guilty of rapacious behaviour and pillaging consumers by raising the fees while increasing prices and making a profit of $232 million. Mr Anderton believes Contact should never have been privatised. KEY WANTS BRAIN DRAIN ADDRESSED ------------------------------- National leader John Key says slowing down New Zealand's brain drain is critical to the country's future. Statistics New Zealand figures show more than 47,000 people left for Australia on a permanent or long-term basis during the year to September. Around 13,000 came back. Mr Key says the numbers have to be slowed down, especially because young people are fleeing to Australia. He says the worst departure figures since records began are a reflection of our low wage problem. "One of the really worrying things is one in four people who have been to university have now left New Zealand and live overseas. That is the worst brain drain of any country in the developed world." Mr Key does not accept the argument that Australia is so attractive, New Zealand cannot compete. He says New Zealand is incredibly well-placed to take advantage of the growth coming out of Asia. He says with ultra-fast broadband services, businesses such as niche manufacturing, can be successfully run out of New Zealand. OFFICIAL CASH RATE SLASHED -------------------------- The Reserve Bank has slashed the official cash rate by one percent. It has gone from 7.5 percent to 6.5 percent, its biggest ever single reduction. ALL MAJOR BANKS CUT INTEREST RATES ---------------------------------- All the major banks have cut mortgage interest rates today after the Official Cash Rate was reduced by one percent. Kiwibank and Westpac have dropped their variable interest rates by one percent. They are now 8.7 percent at Kiwibank and 9.45 percent at Westpac. ASB has left its variable rate unchanged but dropped other term rates, with its six monthly mortgage rate going down to 7.99 percent from 9.25 percent. The biggest drop for ANZ and National Banks has been their one year fixed rates, they are both down from 8.99 percent to 7.90 percent. UNCERTAIN TIMES FOR HOTEL INDUSTRY ---------------------------------- Credit card company American Express says the global economy is creating an environment unlike anything seen before in the hotel industry. The American Express 2009 Asia Pacific Corporate Hotel Rate Projections and Market Forecast has found that the double digit room rate increases of the past two years cannot be sustained and some cities around the world are more exposed than others. It says many factors are at play including political instability, oversupply of hotels in some cities, under supply in others, contracting leisure and corporate demand and emerging new markets and industries. It suggests Auckland will escape the worst of any downturn as occupancy has been running around 75 percent this year the highest rate in New Zealand, few new hotels are planned and forecasts predict more in-coming visitors. It says demand for hotels should be strong for 2009 onwards as improving inbound arrivals are forecast for 2009 onwards and preparations are already underway for the city to host the 2011 Rugby World Cup. It is a similar situation in Wellington where occupancy rose to around 70 percent at the beginning of the year. American Express says Wellington boasts the biggest events calendar in New Zealand. In Asia, the expansion of low cost airlines should help keep hotel occupancy in many areas stable. The survey says Beijing made considerable investments in hotels due to the Olympics which may result in discounting post-Olympics. In Hong Kong, many new hotels scheduled to be built over the next two years face increased competition from new casino resorts in Macau. Hotel occupancy is Adelaide is expected to remain static until Crowne Plaza opens at the end of next year but demand growth will be driven by domestic business over the next few years. In Brisbane, occupancy rate will continue to rise over the next few years, although there are no major new hotel openings until 2011. A slowing economy may result in softer demand in Melbourne over the next 18 months and Sydney may be vulnerable to any softening in corporate travel this year. The survey says corporate clients should be nimble and negotiate rates with hotels. Friday, 24 October 2008 ~~~~~~~~~~~~~~~~~~~~~~~ POLLS REMAIN VOLATILE AS ELECTION LOOMS --------------------------------------- The opinion polls continue their volatility a fortnight out from the election. The latest Roy Morgan poll puts the gap between National and Labour at nine percent. Two weeks ago the same poll was showing a gap of just three percent. Other more mainstream polls are showing the same volatility, with the gap at between 10-20 percent in National's favour. The constant result has been the Greens' strong polling, with their average solid above the crucial five percent. The Morgan poll puts the Greens at its highest ever rating for the party - 11.5 percent. GREENS PUSH FOR ORGANIC FARMING ------------------------------- Greens co-leader Jeanette Fitzsimons wants 15 percent of New Zealand's farming production to be organic by 2015. Ms Fitzsimons says it would help maintain the country's clean green image. She insists making common sense changes towards sustainable farming techniques would be a pivotal investment for New Zealand. Ms Fitzsimons says the other crucial part of the Greens' agriculture policy is to keep farming GM free. PEOPLE SPENDING LESS ON POKIES ------------------------------ Figures released by the Department of Internal Affairs show spending on gaming machines has dropped off in the past year. Director of Gambling Compliance Mike Hill says the total annual spend to the end of June was $927.1 million, compared with $938.3 million in 2007. He says given people are spending less at restaurants and bars, the drop off does not come as a surprise. The number of pokie machines in operation has remained at around 20,000. INTEREST RATE DROP BRINGS RELIEF FOR HOMEOWNERS ----------------------------------------------- A property analyst says the cut in the Official Cash Rate is a big help for those with mortgages greater than the value of their house. All the major banks cut mortgage interest rates yesterday after the OCR was reduced by one per cent. Property Professor at Lincoln University, Chris Eves, says because of the slowdown in the property market around 130,000 homeowners are facing negative equity, where their mortgages are greater than the value of the home. He says the drop in interest rates will help. "It's meant that people may have been on the brink and in a situation where their home loan repayments were getting too much for them, where they may have had to think about selling, it's probably given them a breather." Kiwibank was the first of the banks to react yesterday, lowering its floating home loan to 8.70 percent. Prof Eves says the lower interest rates coupled with the steady decline in the property market could restore housing affordability to levels not seen for several years. MINISTER PLEASED ABOUT PARTIAL BACK DOWN ---------------------------------------- Energy Minister David Parker is endorsing a partial back down from Contact Energy over its directors' fees. After an at times stormy annual general meeting in Auckland yesterday where shareholders called directors "pigs in a trough" the company decided not to proceed with its original plan to increase the amount it pays its board's directors. However, the scheme to raise the directors' fees pool from $770,000 to $1.5 million had the backing of Contact's majority shareholder Origin Energy and was approved. Contact chairman Grant King said the company would not be using the funding straight away and came to the decision after consideration of the current economic climate. Energy Minister David Parker says he is pleased that Contact has responded to public concerns by not raising directors' fees. The company's plans had also been criticised by both Prime Minister Helen Clark and National Party leader John Key. Contact's share price fell 29 percent to $7.02 yesterday. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.harmer@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian.