WYSIWYG NEWS - 6 August, 2007

[news at wysiwygnews.com]

Subject: 6 August, 2007 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer. 

Rats! Another week slipped by for reasons that will become 
apparent. Last weekend, and on Monday, we were in Wanganui 
again, getting my mother settled into managed care. After yet 
another spell in hospital she has taken up residence in a very 
pleasant facility looking down on the river and town of 
Wanganui, and on a clear day there is an excellent view of 
Ruapehu. This bright, open and airy place is vastly different 
to the rest homes of an earlier time. From my perspective, we 
can now be sure that if my mother's health goes off course, 
someone is there to check at any hour of day or night, and 
there is a specialised hospital downstairs. The journey up and 
back to Wanganui was largely unremarkable, except for what 
must have been some of the earliest spring lambs I have ever 
seen. I have this feeling that winter has not yet passed, 
though it is lighter in the mornings and evenings are getting 
visibly longer.  In the weekend just ended, we spent time at 
home, with family. Remember that saying "be kind to your kids, 
they get to choose your rest home!" We took dinner round to 
Anthony and Sarah's house, but poor Anthony got delayed. As a 
police officer with special responsibility for Search and 
Rescue, he gets to coordinate the activities of local 
searches, and in this case, an elderly man was missing, 
presumably in the hills behind Stokes Valley. As at the time 
of writing no trace has yet been found of him. I can only 
imagine the desperation of his family and my heart goes out to 
him. Anthony eventually arrived and we were able to share 
dinner together, and then read stories to lovely little Maggie 
before she went to bed. Cooper, being much younger was already 
asleep. 

Now its time once more to gauge what level of support there 
still is for the continuance of WYSIWYG. I believe that about 
1,800 people subscribe, which is indicative of something. 
Please note, I am not (yet) asking for financial support, so 
please don't send any money. Just let me know in a sentence or 
two if you still find this (more or less ) weekly effort of 
value. I am willing to keep going if I judge there is a 
sufficient level of reader support. If you do respond, please 
do delete this issue of WYSIWYG from what you send or you will 
blow my email quota. Just the sentence or two please. 

---- 
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. 

Formatting this week is again sponsored by Chip Chenoweth, 
President of Praters Foods in Lubbock, Texas. Many thanks 
Chip.
----  
On with the News.  

Monday, 23 July 2007
~~~~~~~~~~~~~~~~~~~~

PETERS RAILS AGAINST AIRPORT SALE
---------------------------------

Winston Peters is urging Auckland International Airport 
Shareholders to do all they can to prevent the sell-off of 
more than half the company's shares to Dubai Aerospace 
Enterprise. The New Zealand First leader says the proposed 
transaction is a totally unnecessary sell-out. He says it 
would give another New Zealand plum to a foreign-owned 
company, adding that it is very hard to see the benefit of 
foreign ownership to New Zealanders. Mr Peters believes the 
sale will prove counter-productive for the country's economy. 
Mr Peters also questions whether the airport's directors are 
acting in New Zealand's interests or their own. His sentiments 
are being echoed by Green Party co-Leader Russel Norman, who 
says having such a strategic asset controlled by a foreign 
corporation raises serious concerns about how it will be used. 
Airport executives say they are ecstatic a Dubai based 
consortium wants to invest in the future of the business. The 
proposal from Dubai Aerospace Enterprise puts almost three 
billion dollars on the table to secure up to 60 percent of a 
new company which will control the airport. Auckland 
International Airport chairman John Maasland says he 
understands Auckland plays a major role in DAE's plans. He 
says he is pleased DAE are taking a developmental interest, 
rather than just investing cash for a return. The deal is 
worth about $3.80 a share to current shareholders, who will 
receive a mix of cash and securities. However, Mr Maasland 
says it is a long way from being complete, with about eight 
parties who could yet make an offer undertaking due diligence. 
Ironically, the recent speculation about a potential takeover 
of the airport will lead to lower profits this year. The 
company has advised the NZX it needs to make an additional 
provision of $9.9 million for bonus payments to senior 
management and staff, which are linked to the share price. 
Profit for the year to 30th June is now expected to come out 
at between $91 and $92 million. Airport shares traded as high 
as $3.50 on news of the Dubai proposal. They were up 12 cents 
at $3.43 mid-afternoon.

(It disturbs me that some people have a kneejerk negative 
reaction to the proposal on the grounds that the new owners 
would be of Arabic origin. My own kneejerk is on the grounds 
that the airports in this country were all developed using 
public money and should have remained as public assets. Under 
the present scenario, every aspect of each airport's operation 
is to maximise shareholder profits by extracting the maximum 
possible from the travelling public. Simple things like a 
bottle of water for $4, the astronomical site rents that cause 
mediocre food to be charged as for cordon bleu silver service 
restaurants, the parking fees that ought to buy a significant  
chunk of land rather than a mere hour long stay. Modern piracy 
is not confined to the coastal shipping lanes of South East 
Asia ... it is visible every day at any public transport hub. - 
BH)

RAISE DRIVING AGE CALL
----------------------

United Future has renewed its call for the driving age to be 
raised, saying it will help reduce the road toll. Following a 
weekend of carnage on the roads, United Future leader Peter 
Dunne says the driving age should be raised from 15 in order 
to reflect busier roads, more powerful cars, and to catch up 
to international norms. Mr Dunne says if the country is 
serious about changing driving behaviour and cutting the road 
toll, we should not be allowing our 15-year-old children loose 
and unaccompanied on the road. He says the 15 to 19 year age 
group make up nearly one in five deaths on the roads. Peter 
Dunne says a rise in the driving age should be accompanied by 
better driver training, including practical defensive driver 
training as part of the process of getting a restricted 
licence. He also wants to see compulsory third party 
insurance, and believes there would be widespread support in 
Parliament. 
 
(There is a considerable backlash from the rural community 
each time this is proposed. Many farming families depend upon 
their fifteen year olds to release their parents to attend to 
the farm while the youngsters deal with less urgent tasks like 
shopping or getting to and from school or town. - BH)

HOSPITAL ALERT STATUS DOWNGRADED
--------------------------------

Wellington Hospital has reduced its alert status to Code 
Orange today, after running at Code Red for four days. The 
alert status was elevated on Thursday when every available bed 
at both Wellington and Kenepuru Hospitals was in use. Clinical 
Director Dr Robyn Toomath says the numbers coming through the 
Emergency Department were slightly down for the weekend 
compared with the previous few weeks, allowing them to get 
back on top of things. However she says demand in general 
remains very high, and the hospital is still asking people to 
see their GP in the first instance unless it is a genuine 
emergency. She says there has been an encouraging response to 
calls for additional nurses, and as a result the hospital may 
be able to bolster its Casual Resource Team.

'GET USED TO IT' - PM ON DOLLAR
-------------------------------

The Prime Minister says kiwi exporters will have to get used 
to living with a high dollar. Helen Clark would not directly 
say whether the Reserve Bank Act should be changed to give the 
Governor new tools to tackle inflation. But she says we have 
only one dollar - and it cannot be adjusted to suit dairy 
farmers, exporters and homeowners. Miss Clark says the 
challenge for our economy is to move upmarket as quickly as we 
can. She says an enormous number of exporters have already 
done that, and can now set the price for their goods rather 
than just take the price. Over the weekend the dollar flirted 
with the 80c mark, hitting 79.93 US cents on Saturday, before 
falling back. Helen Clark says you cannot blame overseas 
investors for liking the New Zealand dollar with our economy 
booming, and the US dollar weakening.

(Odd. Within days of this the dollar fell to a little under  
76 cents - BH)

COUNCIL STAFF WORRIED ABOUT SUPER CITY
--------------------------------------

There is concern the super city proposal for Auckland may mean 
bad news for council employees. The plan, supported by several 
business organisations, aims to cut costs and improve city 
services by abolishing the eight current Auckland councils and 
replacing them with one super council. But the Public Service 
Association, which represents local government staff, is 
opposed to the idea. Assistant Secretary Warwick Jones is 
concerned about its impact on Auckland's 2,500 local authority 
staff. He says proponents of the super council plan need make 
it clear whether costs cuts will equal job cuts. 
 
(I would have thought that job cuts and resultant cost savings 
was the entire reason for such proposals - BH)

HOPES THAT HARD-HITTING ADS WILL MAKE AN IMPACT
-----------------------------------------------

The country's first ever Rail Safety Week starts today with an 
advertising campaign highlighting the dangers when roads and 
railway lines meet. It follows the deaths of five people at 
level crossing crashes in the space of a month. Kevin Ramshaw 
from rail infrastructure operator ONTRACK says steps to 
improve safety include erecting more signs to make sure that 
motorists are aware a level crossing is coming up. 
Improvements will also be made to roads to remove blind spots. 
Mr Ramshaw says everyone must play their part. "It's a two-way 
street. You have a responsibility to recognise that the 
crossing is there, that you have to look out for trains and 
expect that a train could be coming." Mr Ramshaw says the new 
safety campaign has hard-hitting advertisements which he hopes 
will be in motorists' minds as they approach a level crossing. 
ONTRACK will also run a separate initiative to raise awareness 
of safety at level crossings on private roads.

LABOUR CLAWS BACK SUPPORT
-------------------------

The recent launch of major policies could be behind Labour's 
claw-back in the polls. The latest Herald-DigiPoll shows 
Labour is regaining lost ground with 42 percent support, but 
National could govern alone with its 48.5 percent. Helen Clark 
has pushed well clear of John Key in the preferred Prime 
Minister stakes with 48.7 percent support as opposed to Mr 
Key's 37.9 percent. If the numbers were translated to votes, 
minor parties New Zealand First and the Greens would fail to 
get over the five percent threshold. The poll was taken during 
the period which saw the launch of KiwiSaver, 20 hours' free 
pre-school education and the final roll-out of cheaper 
doctors' visits.

ONCOLOGY POSITION MAY BE HARD TO FILL SAY DOCTORS
-------------------------------------------------

Senior doctors are warning that a reduction of child cancer 
services at Wellington Hospital may prove to be more than just 
temporary. The hospital has been forced to cut back its 
paediatric oncology services, after the resignation of one of 
two cancer specialists in the department. Some families will 
have to travel to Auckland or Christchurch to have their 
children's cancer treated. The Capital and Coast District 
Health Board claims the cutback is a temporary step while a 
replacement doctor is found but Dr Ian Powell from the 
Association of Salaried Medical Specialists says it will be a 
real challenge to fill the position, when specialists can get 
better pay and conditions by taking up positions overseas. 
Senior doctors are currently holding a series of rolling 
stopwork meetings to consider whether to take strike action in 
support of a ten percent pay rise over two years.

SPECIALISTS LIKELY TO STRIKE
----------------------------

It is looking more likely senior doctors will hold their first 
ever nationwide strike. Specialists voting at each of the five 
stopwork meetings held so far have opted for strike action. 
Another 21 meetings are planned over the next fortnight. Ian 
Powell, executive director of the Association of Salaried 
Medical Specialists, says it is the turn of senior doctors at 
Hutt Valley District Health Board to hold stopwork meetings 
today. They will consider the resolution calling for a 
national ballot on holding strike action. So far, there has 
been overwhelming support for the motion. The specialist 
doctors are seeking a 10 percent pay rise over two years. They 
claim DHBs could save more than $100 million by granting the 
pay rise and retaining staff, rather than calling in temporary 
doctors to cover shortages, which incurs costs such as agency 
fees, travel and accommodation. Dr Powell says more local 
doctors are moving to Australia as DHBs refuse to bridge the 
considerable salary gap between New Zealand and Australia.

DRINK DRIVING CAMPAIGN MAY BE REVISED
-------------------------------------

Land Transport New Zealand says some teenagers need to be 
exposed to the hard hitting message about the dangers of drink 
driving after a blitz uncovered a high number of teenagers 
over the legal alcohol limit for driving. The weekend's police 
operation netted 125 drink drivers, many of them repeat 
offenders. A significant number were teenagers. Inspector 
Heather Wells says police are shocked that many of the young 
drivers clearly felt they were above the law. She says one 
teenager was apprehended in Otara, South Auckland, on Friday 
night, had his licence suspended and was delivered home. 
However, he drank more alcohol, drove into Auckland city and 
was apprehended at another checkpoint early on Saturday 
morning. Ms Wells says another offender was a lawyer who had a 
very blasé attitude to being caught drink driving for a third 
time. LTNZ spokesman Andy Knackstedt says the drink driving 
campaign is being revised because there is almost a generation 
that has not been exposed to the same sort of hard hitting 
advertisements as people were 10 years ago. He says it is 
disappointing when people who are not even at the legal 
drinking age get behind the wheel of a car drunk. Mr 
Knackstedt says in many cases it is parents and family members 
who supply alcohol to teenagers and the wider community needs 
to take responsibility as well.

Tuesday, 24 July 2007
~~~~~~~~~~~~~~~~~~~~~

WINSTON WANTS DOLLAR INTERVENTION
---------------------------------

Winston Peters says Finance Minister Michael Cullen should 
invoke his powers under the Reserve Bank Act and intervene in 
monetary policy. The dollar this afternoon broke through the 
US81c cent barrier. Mr Peters says intervention should have 
come long before the dollar was allowed to rise so high. The 
former Treasurer says the delay has been a disaster to 
exporters. He says people are losing their markets which will 
take a decade or more to get back, which he says is 
destructive to a productive economy. 
 
(I am not at all clear just what intervention might achieve 
that. - BH)

ANALYST THINKS AIRPORT WORTH MUCH MORE
--------------------------------------

An American investment analyst who specialises in New Zealand 
equities thinks the Dubai bid for Auckland International 
Airport undervalues the company. Dubai Aerospace Enterprise is 
offering $3.80 a share but William Buechler from Barclay 
Partners Asset Management in California believes Auckland 
Airport is nearly three times that. He believes the intrinsic 
value of the company is probably closer to $10. Mr Buechler 
says Auckland Airport makes up one of the largest components 
of a hedge fund his company runs, and he is holding on to his 
position at the moment. He predicts other bidders will come in 
before shareholders' vote on the Dubai bid in November. Mr 
Buechler thinks the Cullen superannuation fund may even be 
interested in bidding for Auckland Airport. Prime Minister 
Helen Clark doubts the Manukau and Auckland City Councils will 
sell their combined 23 percent stake in the airport company, 
nearly enough on their own to block the deal. Manukau mayor 
Sir Barry Curtis is adamant his council will not give up its 
stake. He is against foreign companies taking controlling 
interests in New Zealand's infrastructure. Auckland City's 
mayor Dick Hubbard is non-committal on the issue. Miss Clark 
believes it would be political suicide for councillors to vote 
in favour of a sale. She says her main priority is that 
whoever owns it, keeps it as a hub. She says it would be bad 
news if the airport was downgraded and New Zealanders had to 
use Australian airports to catch international flights.

DROUGHT AND FLOOD RELIEF OCCUPY HAWKE'S BAY
-------------------------------------------

Several agencies are continuing to meet on a daily basis 
following last week's flooding in Hawke's Bay. The worst hit 
area was Maraekakaho, where more than 200 millimetres of rain 
was recorded in about 48 hours, forcing people from their 
homes and cutting water supplies. Hastings District Council 
Operations Manager, Kevin Deacon says 22 homes have been 
visited so far and officials have found some bore water is 
still not suitable for drinking. Ironically, the flood relief 
meetings are being held at the same time as the Hawke's Bay 
Regional Drought Committee becomes concerned about how farmers 
are coping with the aftermath of the recent dry spell. The 
organisation has developed a website which contains contact 
numbers for committee members along with advice on how to 
manage workloads and overcame the problems caused by the 
previous dry period. The site is available by going to 
www.hastingsdc.govt.nz

DHB DISCUSSES CHILD CANCER TREATMENT
------------------------------------

Auckland District Health Board officials meet today to discuss 
the logistics of taking child cancer patients from Wellington. 
Staff shortages at Wellington Hospital's paediatric oncology 
unit are forcing patients to be redirected to Auckland and 
Christchurch for treatment. It is not known how many extra 
child patients Auckland will need to treat but the DHB is 
meeting today to work out how the extra workload can be 
managed. Tony Ryall, the National Party's health spokesman 
says it is not good enough that cancer services in a capital 
city have reached this point. He fears other hospitals are 
facing the same predicament because of a lack of resources for 
recruiting staff.

HOSPITAL WORKERS FIGHTING FOR BACK PAY
--------------------------------------

Around 800 hospital workers are seeking compensation after the 
Employment Court overturned their lockout order. The cleaners, 
kitchen staff and orderlies had been locked out of 12 
hospitals by their employer, District Health Board contractor 
Spotless Services as they fought for a pay rise. Service and 
Food Workers Union spokesman Alastair Duncan says after ruling 
the lockout illegal, the court asked for submissions on back 
pay, which the union will do because in some cases, workers 
had been forcibly prevented from going to work and they want 
every cent that is owed. The union has lifted strike notices 
allowing the workers to return to their jobs today and Mr 
Duncan says Spotless should now do the right thing and sign up 
to the national pay deal. Spotless Services staff are seeking 
the same rates as their colleagues employed by District Health 
Boards, ranging from $14.25 to $16.45.

NO SIGN OF NZ$ EASING
---------------------

Finance Minister Michael Cullen will be under more pressure to 
do something about the high New Zealand dollar, which has 
cracked the 80 US cent mark, a record since it was floated 22 
years ago. The dollar is trading at 80.42 US cents this 
morning. The Reserve Bank is reviewing the official cash rate 
on Thursday and there is concern that if interest rates rise 
again, it could have too much of a negative influence on the 
economy, putting homeowners under more pressure from higher 
mortgage rates on the one hand but enticing investors to put 
more money into New Zealand, making the currency rise even 
higher and making imported products cheaper. Dr Cullen has 
raised the prospect of intervening in the Reserve Bank's 
policy of keeping inflation under three percent, in an effort 
to dampen the buoyant housing market. ANZ chief economist 
Cameron Bagrie says the factors driving the currency are not 
New Zealand-specific and include the strong performance of the 
Australian dollar and the weak US dollar. Mr Bagrie says the 
market will keep pushing the dollar up until investors see a 
strong reason to sell it.

(Just wait a day or two for the US sub-prime mortgage market 
to get the jitters - BH)

Wednesday, 25 July 2007
~~~~~~~~~~~~~~~~~~~~~~~ 

FUEL TAXES BEING SPENT ON TRANSPORT
-----------------------------------

The Automobile Association says it has been calling for the 
money gained from fuel excise duty to be ploughed back into 
the transport system for years. Transport Minister Annette 
King has told a transport sector conference in Christchurch 
that the money collected from motorists through road user 
charges and petrol tax will go towards transport activities 
and not into the consolidated fund. AA spokesman Simon 
Lambourne estimates an extra $35 million will be made 
available for transport but he says it will be important that 
the Government strike the right balance between investing in 
roading infrastructure and investing in public transport. The 
change will roll out from the July 1, next year. 
 
(I would swear that about six months ago the Minister Annette 
King told us this was already happening. - BH)

TELECOM HANGS UP SCHOOL CONNECTION
----------------------------------

Telecom is pulling the plug on its School Connection 
programme. The scheme, which has been running for almost 15 
years, has raised more than $120 million to help schools log 
onto the digital age. Chief Operating Officer Kevin Kenrick 
says the company is talking to new sponsors which might be 
interested in taking over the School programme. When the 
scheme winds up at the end of July 2008, Telecom will instead 
focus on its Community Connections programme which supports 
charities and not-for-profit organisations. The Connections 
programme allowed residential customers to earn points for a 
nominated school based on their monthly Telecom bill. The 
schools could spend the points on equipment including 
computers, camera, broadband services or phone lines. Points 
can continue to be collected until January 31 and schools have 
until July 31 to spend their accrued points.

WORK EXPERIENCE MOOTED FOR YOUTHS
---------------------------------

Teenagers entering the workforce could soon have to put in 200 
hours with an employer before qualifying for the minimum youth 
wage. The work experience idea is being proposed as an 
amendment to Sue Bradford's Youth Wage Bill. Labour Minister 
Ruth Dyson says it is a better alternative than scrapping the 
youth wage altogether and work experience could be gained 
across several employers.

FONTERRA'S PAYOUT REVEALED
--------------------------

Dairy farmers will get a final payout for the 2007 year of 
$4.46 per kilogram of milk solids, 11 cents more than the last 
payout forecast announced in May. Fonterra Chairman Henry van 
der Heyden says it means a total payout of $5.6 billion for 
the season. He says it is a good result given the high 
exchange rate and the fact that commodity prices did not surge 
until the final quarter of the year. But he says with 
commodity prices now significantly higher, margins are 
beginning to come under pressure and the company cannot afford 
to be complaisant. He says Fonterra needs to ensure the next 
generation of farmers can also enjoy good returns. "We need to 
successfully implement our strategy, which means an on-going 
focus on the strength of the New Zealand supply chain, coupled 
with substantial growth in other countries." Mr van der Heyden 
says despite the highest ever average conversion rate of 67 
cents for the season, revenues increased $881 million to $13.9 
billion as a result of record sales and record production. 
Fonterra is holding with its forecast of $5.53 for the 07/08 
season.

BORN TO BE FAT?
---------------

Scientists have found new clues to help explain why some 
people are more likely than others to put on weight. New 
research from the Liggins Institute in Auckland suggests a 
foetus' metabolism can store and conserve fat if the foetus 
receives a poor diet while in the womb. Lead researcher 
Professor Peter Gluckman says interestingly this genetic 
switch can be changed by injecting leptin, the hormone that 
regulates appetite and signals to the body when enough has 
been eaten. The use of leptin in rats has been proven to 
reverse metabolic settings to stop the obese tendency. Prof 
Gluckman says the next stage is to find ways to apply the 
research to humans. Prof Gluckman says the data fits with the 
phenomenon is known as polyphenism and is seen frequently in 
insects and amphibians. An example is female honey bees, which 
develop as either queens or workers depending on whether they 
are fed royal jelly as larvae. He says the studies are helping 
scientists to understand the complexity and interdependence of 
early life interactions between genes and the environment. Dr 
Gluckman says the research highlights how important it is to 
have healthy lifestyles before and during pregnancy.

WELLINGTON ON TRACK WITH TRAIN TALKS
------------------------------------

The Greater Wellington Regional Council is about to start 
negotiations for 70 new electric train carriages planned for 
2010. Half-a-billion-dollars is being spent on the region's 
rail network over the next five years. The council will 
negotiate with a Japanese and a Korean company for the 
delivery of the trains which it is hoped will ease commuter 
pressure. It is anticipated negotiations will finish by the 
end of August.

EXPORTERS WORRIED ABOUT POSSIBLE RATES RISE
-------------------------------------------

There is a mounting chorus from exporters, pleading with the 
Reserve Bank governor to hold off further interest rate hikes. 
Alan Bollard is expected to increase the Official Cash Rate 
tomorrow morning, to keep inflation under control and dampen 
the buoyant housing market. The economy is also under pressure 
from the New Zealand dollar which is showing no sign of 
slowing after hitting another high yesterday of 81.10 US cents 
before falling back to 80.46 this morning. Danica Hampton 
Currency Strategist at the BNZ says other key economic 
indicators which will also impact on the exchange rate this 
week include GDP data from America, Australian inflation 
figures and elections in Japan. Exporters say another rise in 
interest rates will cause unnecessary hardship for them and 
their employees. Hawke's Bay orchardist Phil Alison is 
wondering if there is any point in continuing to export. "Why 
would you even bother? The economists say they don't 
understand Bollard. As an exporter, I don't understand what 
the Reserve Bank's policies are. I think the Reserve Bank Act 
is out of date." CEO of the Canterbury Manufacturers 
Association John Walley says the settings in the economy need 
re-appraising. "We basically have CPI that weights property 
and we have a number of policies that drive people towards 
property. So we see property inflation driving general 
inflation." He says there are several things that can be done 
including imposing capital ratios on lenders and borrowers, 
non-resident withholding tax, mortgage levies, variable GST, 
capital gains tax and changes to the way the CPI is measured 
and used. Mr Walley agrees with other analysts who claim 
another interest rate rise tomorrow would cause further 
problems for exporters, leading to job losses and business 
closures.

RESERVE BANK URGED NOT TO RAISE RATES
-------------------------------------

The Council of Trade Unions is urging the Reserve Bank not to 
increase interest rates, claiming inflation is not a major 
problem. The bank reviews the official cash rate tomorrow and 
it is widely expected to hike interest rates by another 
quarter of a percent. CTU economist Peter Conway says 
inflation is only two percent on an annual basis, half of what 
it was last year. He believes the Reserve Bank's tactic of 
raising interest rates to cool the housing market and keep 
inflation under the three percent mark does not stand up to 
scrutiny. Mr Conway says there is a great deal of economic 
stimulus from the housing market and the economy is on a 
hiding to nothing if interest rates keep going up. The CTU 
suggests a capital gains tax on investment housing and a 
variable mortgage levy on upper income households as a way of 
dampening the housing market.

CARS CHECKED OUT BEFORE PETROL FLOWS
------------------------------------

BP is making no apologies for introducing its "check-out-the 
driver first" policy at the company's petrol pumps. Under the 
new system the cashier is alerted by a beep when a motorists 
lifts the pump nozzle. The petrol will not start flowing until 
the staff member has checked the vehicle is displaying 
registration plates. BP began introducing the system worldwide 
at the end of April. Spokeswoman Diana Stretch says it is a 
response to the growing number of people driving off without 
paying. She says a large number of those remove their car's 
registration plates so that they are not caught on security 
cameras. She says the move is a compromise as the only other 
option was to introduce a total pre-pay system. Ms Stretch 
says cashiers will also check safety issues such whether a 
person is smoking or using a cell phone.

Thursday, 26 July 2007
~~~~~~~~~~~~~~~~~~~~~~

LION BREWERIES SELLS SITE FOR $162M
-----------------------------------

Lion Breweries has sold its Auckland Brewery site in Newmarket 
for $162 million. Its new owner AMP is believed to be planning 
a residential, retail and office space development on the 
site. But that is up to four years down the track. Lion 
Breweries will not move out until it has developed a new $250 
million manufacturing and warehouse facility at a yet to be 
determined site elsewhere in Auckland.

MAORI TV LAUNCHES MAORI-ONLY CHANNEL
------------------------------------

In a bid to further promote Maori language and culture, Maori 
Television is launching a new channel in 2008. The new, as yet 
unnamed channel, will be broadcasting on the Freeview Digital 
Platform. Maori Television chief executive Jim Mather says 
they have designed its programming schedule to complement the 
first channel. He says they are planning to have a 100-percent 
Te Reo Maori line-up throughout the afternoon on the main 
channel: And he says if viewers want to continue with Te-Reo 
only programming, they will have the option to flick over to 
their new channel in the evening.

PUBLIC SERVANT REGISTER LABELLED UNDEMOCRATIC
---------------------------------------------

The involvement of the Auditor General in the establishment of 
a register for public servants has angered Peter Dunne. The 
United Future leader says tracking the personal and political 
status of Government employees it is heading in the direction 
of new McCarthyism, where public servants are employed on the 
basis of what they believe or who they live with, rather than 
competence or expertise. Mr Dunne says the Auditor General is 
also outside his remit. He is demanding Parliament moves 
swiftly to stamp on what he says is an undemocratic idea.

CALL FOR REAL ACTION AGAINST CHILD ABUSE
----------------------------------------

New Zealanders are being called upon to make a tough stand 
against child abuse. A three-year-old Rotorua girl is in a 
coma in Auckland's Starship Hospital after three weeks of 
repeated abuse. She was admitted to Rotorua Hospital on Sunday 
with a head injury. Police say that was at least 36 hours 
after she was last bashed. Three men and a woman have been 
arrested and charged with assaulting the girl. Garth McVicar 
says the Sensible Sentencing Trust is branching out to fight 
against child abuse and it wants the nation to also take a 
stand. He says Parliament's cross-party group set up after the 
death of the Kahui twins has been totally ineffective.

PHARMAC BUDGET BOOSTED BY $36M
------------------------------

The Government is boosting its medicines funding by $36 
million, bringing the total spend for the coming year to $636 
million. PHARMAC says the six percent increase is the largest 
in dollar terms for decades. Acting chief executive Mathew 
Brougham says it will enable PHARMAC to meet funding 
commitments it has already made. He says the number of 
prescriptions doctors are writing continues to grow and that 
is driving up pharmaceutical spending. Matthew Brougham says 
there will only be limited scope for new purchases and PHARMAC 
will have to be careful with its choices to see it gets good 
value for money.

TIME TO SAVE SAYS RESERVE BANK
------------------------------

Interest rates are on the rise again with Reserve Bank 
Governor citing high international commodity prices, 
particularly for dairy products, influencing his decision. The 
official cash rate will increase by 25 basis points to 8.25 
percent. Governor Alan Bollard says the New Zealand economy is 
running strong with world demand for New Zealand's products. 
"This is very good news for New Zealand. Given this positive 
situation, some of the negative commentary circulating about 
the economy is unwarranted. However, the continued tight 
labour market, high capacity use and rising oil and food 
prices all point to sustained inflationary pressures. That is 
why we are increasing the OCR." Dr Bollard says the New 
Zealand dollar has reached very high levels recently, driven 
by the weakness in the US dollar and New Zealanders' heavy 
demand for borrowing which is hurting exports. He says the 
currency level is not sustainable in the medium term and 
raising the OCR should give a strong incentive for New 
Zealanders save. "New Zealanders have been showing early signs 
of moderating their borrowing. Provided they keep this up and 
the pressure on resources continues to ease, we think the four 
successive OCR increases we have delivered will be sufficient 
to contain inflation." 

BAD NEWS FOR HOMEOWNERS
-----------------------

Interest rates are going up. The Reserve Bank has just 
announced an increase in the official cash rate of quarter of 
a percent. The OCR now stands at 8.25 percent, as Governor 
Alan Bollard struggles to keep inflation in check.

WELLINGTON DOCTORS REJECT PAY OFFER
-----------------------------------

Senior doctors in the Wellington region are the latest to 
reject a proposal to settle their long-running employment 
dispute with the district health board. More than 130 doctors 
from Wellington and Kenepuru Hospitals gathered at a two hour 
stopwork meeting yesterday and rejected the proposal from 
Capital and Coast DHB offering a deal spanning 46 months and 
an annualised increase of just under four percent. Specialist 
doctors around the country are holding meetings to discuss 
whether to vote on taking unprecedented national strike action 
to end the year-long pay dispute. Wellington doctors are 
supporting the proposal. Wellington physician David Jones says 
a salary scale needs to be set up to stop doctors going 
overseas for better pay and conditions. He says doctors want 
to be sure that in 10 years there is a vigorous senior 
workforce.

NO FREE BUILDING CONSENTS
-------------------------

National and ACT have fought a losing battle to shake up the 
way local councils handle building consents. National MP Nick 
Smith's Private Member's Bill, which would have resulted in 
building consent fees waived if an application was not 
processed within 20 days, was voted down overwhelmingly in 
Parliament last night. ACT was the only party which supported 
the bill. Leader Rodney Hide argued that the failure to have a 
timeline whereby applications must be completed, was resulting 
in consent work taking too long. Mr Hide claims that if 
councils cannot process building consents in 20 days something 
is seriously wrong. However, Building Issues Minister Clayton 
Cosgrove said the bill failed to acknowledge there would be 
costs incurred to ratepayers if councils had to hand out free 
consents and Dr Smith is naive to think councils would not 
raise rates to absorb those costs.

PUBLIC AGAINST SALE OF AIRPORT SHARES
-------------------------------------

If public opinion carried any influence, Auckland and Manukau 
City Councils would not sell their Auckland International 
Airport shares. Eighty-four percent of respondents to a UMR 
poll oppose any council sale of airport shares, saying they 
want them kept in public ownership even if the councils were 
offered a good price. The poll was conducted in late June when 
a Canadian pension fund expressed interest in taking over the 
airport. UMR director Tim Grafton says opposition will almost 
certainly be just as strong against the proposal from Dubai 
Aerospace. The poll of 750 people has a margin of error of 3.6 
percent.

Friday, 27 July 2007
~~~~~~~~~~~~~~~~~~~~

BENSON-POPE RESIGNS FROM CABINET
--------------------------------

David Benson-Pope is out of Cabinet. Prime Minister Helen 
Clark has made an announcement in Papakura, south of Auckland, 
that she has accepted the Environment Minister's resignation. 
Mr Benson-Pope refused to comment publicly before the 
announcement, but said he would make a statement after the 
Prime Minister had spoken. Miss Clark has reviewed transcripts 
of Mr Benson-Pope's comments over the past few days following 
an apparent about-face over the controversy surrounding the 
departure of Environment Ministry communications manager 
Madeleine Setchell after just three days in the job. Her 
partner is National leader John Key's press secretary. Mr 
Benson-Pope admits telling Environment Ministry Chief 
Executive Hugh Logan he would probably be less free and frank 
in meetings with Ms Setchell. That contradicts earlier 
comments that he never told Mr Logan his views about Ms 
Setchell's employment with the ministry. This morning 
Environment Ministry head Hugh Logan and Iain Rennie from the 
State Services Commission were seen meeting with head of the 
Department of Prime Minister and Cabinet Maarten Wevers. Both 
the State Services Commission and Environment Ministry are due 
to give their version of events to the media at midday. 
 
(I have to admire the way that Ms Setchell has maintained a 
dignified and appropriate silence throughout this. I 
understand that she now has another job in Wellington - BH)

NZ SHARES DROP AMID GLOBAL JITTERS
----------------------------------

New Zealand shares are down in early trade, as investors react 
to the worldwide slump in equities. The NZX50 was down 79 
points to 4246. Earlier on Wall Street the Dow ended the day 
down more than 300 points. Investors have reacted to figures 
showing the US economy is weakening. BNZ Currency Strategist 
Danica Hampton says the frantic selling on the global stock 
exchanges has been triggered by growing evidence that problems 
in the US sub prime mortgage market are spreading. She says 
businesses are finding it difficult to get financing through 
leverage buy out options or raising debt. Ms Hampton says that 
is starting to trouble business growth out look and weight on 
investor confidence. The jitters on the world markets have 
done what the Reserve Bank's intervention in the currency 
market could not do. The dollar is below the 78 US cents mark, 
losing three cents overnight.

INTEREST RATE RISE TIPPED BY CHRISTMAS
--------------------------------------

A financial institute is predicting there will be another rise 
in the official cash rate by the end of the year despite the 
Reserve Bank Governor indicating an easing off of monetary 
tightening. In rising interest rates by 0.25 basis points 
yesterday, governor Alan Bollard said four successive 
increases will be sufficient to contain inflation for the 
immediate future. Andrew Blackler from BT Funds Management 
says domestic inflation is not under control yet, with 
commodity prices rising and a labour shortage pushing up 
costs. He says Fonterra's payout to farmers and Government 
spending will also fuel inflation. Mr Blackler says the 
Reserve Bank has adopted a wait and see approach, but economic 
data in December may push the bank towards another rates hike. 
Mr Blackler claims Dr Bollard has achieved nothing by stating 
he has finished raising rates. Meanwhile, the New Zealand 
dollar has continued its post-OCR slide against the US 
currency overnight. It is trading at 78.34 US cents, after 
finishing local trading yesterday at 79.88.

MPS URGED NOT TO PICK ON NEW SETTLERS
-------------------------------------

Political parties are being urged not to make immigration a 
political football in the lead up to the election. The 
Association for Migration and Investment is holding its annual 
conference in Auckland today and is worried migrants will be 
targeted by politicians. Chairman Bernard Walsh says Foreign 
Affairs Minister Winston Peters and Immigration Minster David 
Cunliffe have already taken a swipe at migrants, blaming them 
for increasing house prices and inflation. However, he says 
there is no firm evidence immigration is to blame for those 
issues and like so many problems in New Zealand, migrants are 
an easy target. 

NZ$ NOT ONLY REASON FOR FACTORY MOVING
--------------------------------------

Staff at a Christchurch-based outdoor textile manufacturer 
have until the end of September to find employment as the 
company winds up production in New Zealand and moves to China. 
Craig McCallum managing director of Gale Pacific says despite 
being given the heads up several weeks ago that the board was 
considering moving offshore, staff were still shocked when it 
was finally announced that 92 would be made redundant. Mr 
McCallum says the company expects to vacate the factory by 
Christmas but will fulfil most of its manufacturing contracts 
in the next few months. He says staff will receive help 
finding alternative employment. Gale Pacific says the high New 
Zealand dollar has not been the only reason for its decision. 
The company also wants to move its manufacturing closer to 
Northern Hemisphere markets. Gale Pacific makes breathable 
knitted fabrics for outdoor sun protection and umbrellas. It 
also manufacturers polyethylene and polypropylene coated 
fabrics for horticulture purposes.

MENINGOCOCCAL CASES DESPITE VACCINE
-----------------------------------

Five children in Wellington and the Hutt Valley regions under 
the age of eight have been diagnosed with meningococcal 
disease despite two of them being vaccinated against it. Three 
of the cases are confirmed and the other two are probable. Two 
of the cases are in one family but the others appear not to be 
linked. Medical Officer of Health, Dr Margot McLean says two 
of the patients were fully immunised with the MeNZB vaccine 
and some of the others were partially immunised. Dr McLean 
says that all of the children had a rapid onset of illness and 
in most cases a rash. In all cases, the parents were alert to 
the signs and symptoms of meningococcal disease and sought 
medical attention early. The children are now recovering. 
Regional Public Health is reminding parents to be aware of the 
signs of the disease and to seek help if they are concerned, 
regardless of whether their children have been vaccinated 
against meningococcal disease. The early stages of the disease 
include symptoms which may look like a case of influenza. It 
can progress very quickly and be difficult to diagnose. In a 
child, signs include fever, being sleepy, floppy or hard to 
wake, being unsettled or crying, dislike of bright lights, 
refusal to drink or feed, having a rash or spot, vomiting. 
Adults may have similar symptoms including a fever or 
headache, be sleepy, confused, delirious or unconscious, have 
a stiff neck, dislike bright lights, have joint pain and 
aching muscles.

HEALTHCARE CHEATS BEING FLUSHED OUT
-----------------------------------

Patients seeking surgery at Waikato Hospital are being asked 
to verify their eligibility for healthcare, after a woman 
received care for a taxpayer funded birth after supplying 
false details. Police are investigating an incident where a 
woman presented a fake passport to Waikato Hospital last year 
and then managed receive free birth care costing $5,000. 
District Health Board spokeswoman Mary Anne Gill says 4,000 
patients have been asked to provide formal identification, in 
a bid to flush out ineligible patients from waiting lists. The 
DHB is working closely with the Immigration Service on several 
suspicious cases. Ms Gill says the problem used to be confined 
to Auckland, but appears to have headed south.

ANTI-MINING GROUP SCORES LOGO VICTORY
-------------------------------------

The Christchurch-based protest group that has opposed the 
mining activities of Solid Energy on the West Coast has scored 
a win of sorts. Solid Energy went to court to protect its 
trademark after the Save Happy Valley Coalition hijacked it 
for a spoof annual report. A Christchurch judge has ruled that 
the protest group only needs to make a few changes to the 
design and protest organiser Frances Mountier says they will 
alter seven words and the logo on the front page to clearly 
identify the document as a mock report put out by the 
coalition. Ms Mountier says the decision largely allows the 
group to continue to parody of the coal company's 
environmental record.

BUDGET FOR INTEREST RATE RISES
------------------------------

The Retirement Commission is encouraging mortgage holders to 
start planning to cope with interest rate rises. The Reserve 
Bank has hiked up the official cash rate to 8.25 percent and 
as a result mortgage rates are expected to rise at least a 
quarter of a percent. Commission spokeswoman Robyn Cormack 
says it is tempting for people on fixed mortgages to ignore 
interest rates rises, but even a small increase can have a 
significant impact on home loans when they need to be renewed. 
She says the key is to soften the blow by working out a budget 
ahead of time and making adjustments. A homeowner renewing a 
two year mortgage of $200,000 at 7.5 percent with monthly 
payments over 25 years will be paying $270 more a month if 
they renew their loan at 9.25 percent. Ms Cormack says the 
commission's website sorted.org.nz has resources to help 
people work out the real cost of their mortgages.
 
Monday, 30 July 2007
~~~~~~~~~~~~~~~~~~~~

INQUIRY INTO ONE COUNCIL FOR AUCKLAND
-------------------------------------

The Government is establishing a Royal Commission of Inquiry 
to look at local government in Auckland. The inquiry will look 
into the possible creation of a strengthened regional council 
which would be responsible for promoting Auckland. The move 
comes as calls grow for the number of councils in the region 
to be slashed. Local Government Minister Mark Burton says any 
"Greater Auckland Regional Council" would carry out more than 
just the same functions as the current council. He said it 
would include tourism promotion, regional economic development 
and significant events management.

FLEXI WORKING HOURS BILL TO BE DEBATED
--------------------------------------

A Green MP's bill which would giving workers more flexibility 
in their working hours is to be debated in Parliament. Sue 
Kedgley's Flexible Working Arrangements Bill seeks to make it 
easier for employees to choose what time they start and finish 
each day. It would also allow more people to work from home. 
Ms Kedgley says there is strong support for a right to request 
flexible hours, at least for employees with young or disabled 
children. She says similar legislation has worked well in the 
United Kingdom.

POLICE RECRUIT REPORT QUESTIONED
--------------------------------

Prime Minister Helen Clark has spoken to the Minister of 
Police about claims police have doctored a report to the 
government about the quality of police recruits. Documents 
released to the Dominion Post newspaper suggest test results 
from recruits who performed poorly were left out of the 
report. The report was then used to counter another study 
critical of a decline in recruiting standards. Miss Clark says 
she has contacted Police Minister Annette King about the 
claims and has been told the issue is a continuation of the 
row that blew up a few weeks ago. The matter is now the 
subject of an independent inquiry. Miss Clark says it is too 
soon to judge whether police have misled the government over 
the quality of recruits. Chester Borrows, National's police 
spokesman, wants to know why the report was changed and who 
did it. He says it is unacceptable Ms King will not do 
anything until a third report on the issue is released next 
month.

MAYOR REJECTS SUPER COUNCIL FOR WGTN
------------------------------------

Upper Hutt's mayor is concerned that if a regional super 
council gets the go-ahead, it will prevent locals from having 
any influence on their councillors. National list MP and 
former Wellington mayor Mark Blumsky has drafted a private 
members bill proposing the amalgamation of Auckland's councils 
and a super council for nine of Wellington's local bodies. 
Upper Hutt mayor Wayne Guppy disagrees with the idea for the 
capital. He says people feel more connected to smaller 
councils, with larger bodies becoming impersonal and faceless. 
He believes a super council would not effectively serve the 
needs of residents in different areas of a region. "In a 
situation like Upper Hutt people know who you are and 
regularly tell you what you are doing right or wrong, or put 
you on the right track. The larger organisations get so big, 
the local people have no input whatsoever." 
 
(Fascinating that here, as in Auckland, those most opposed 
would lose their nice little jobs. - BH)

TREASURY TO INVESTIGATE RELEASE OF FIGURES
------------------------------------------

Treasury is conducting an inquiry into how it managed to pass 
on sensitive currency trading material to the media. The 
office of Finance Minister Michael Cullen provided the 
information to a newspaper, after being told by Treasury the 
material was cleared for release. The data, which related to 
Treasury's intervention on the dollar, was not published. Dr 
Cullen's office says the data was historical in nature.

MORTGAGE RATES SLOWING HOUSING MARKET
-------------------------------------

There are clear signs of fading confidence in the housing 
market under the impact of rising interest rates. The latest 
ASB Bank housing confidence survey for the three month period 
to July shows a sharp decline in the number of people 
expecting higher house prices. Forty-seven percent of 
respondents expect higher house prices compared with 61 
percent in the previous survey. The number of people expecting 
lower house price more than doubled from six percent in the 
previous survey to 15 percent. The number of respondents who 
said it was a bad time to buy a house now, increased from 28 
percent to 37 percent. ASB chief economist Nick Tuffley says 
price expectations generally indicate house price growth 
trends and in the past year the strong lift in price 
expectations foreshadowed the housing pick up. He says the 
current downturn in price expectations, points to some 
unwinding in the recent spurt in house price growth. Mr 
Tuffley says the good news for investors is that the bank is 
predicting the slow down will be protracted but relatively 
mild. He says a tight labour market will give the market some 
insulation. The survey shows that over the past 45 years, 
house prices have increased on average by 2.8 percent annually 
above the inflation rate but in the past 10 years the annual 
increase has averaged 5.6 percent and been double that rate 
over the five years of the housing boom. Mr Tuffley says there 
are signs that higher interest rates are reducing borrowing, 
thus slowing the housing market.

NZ$ FIVE CENTS OFF PEAK
-----------------------

As trading opens today, financial analysts are predicting the 
New Zealand dollar to fall even further against the greenback. 
The kiwi is trading at 76.6 US cents this morning, five cents 
off last week's peak. Business correspondent Roger Kerr, of 
Asia Pacific Risk Management, says while it is usually hard to 
predict the short term currency market, the dollar's movements 
of late are likely to put off investors. He says speculators 
will find their trades are not so profitable as the currency 
declines and will sell, causing the dollar to drop further in 
the short term.

Tuesday, 31 July 2007
~~~~~~~~~~~~~~~~~~~~~

BRIDGECORP INVESTORS FACING MAJOR LOSSES
----------------------------------------

Bridgecorp investors could get as little as 24 percent of 
their money back. The company's receivers have today broken 
the news to the failed company's 18,000 investors. They say 
preliminary estimates indicate secured debenture holders may 
recover anywhere between 25 to 74 percent. Receivers say the 
wide range is because Bridgecorp has $157 million out in loans 
to offshore companies, including in Australia and Fiji. They 
say how much of those can be recovered depends on a number of 
complex issues, including political uncertainties.

WOMEN TO BE QUIZZED ABOUT VIOLENCE
----------------------------------

The Government will tomorrow announce details about a new 
initiative, where women will be questioned about violence when 
they visit a hospital. The approach has been piloted for the 
past 18-months at National Women's Hospital in Auckland. 
Social Development Minister Steve Maharey believes families 
with violence problems will see it as a very good step 
forward. He says people understand the nation has a serious 
family violence issue, and having frontline staff in contact 
with potential victims is a good way of providing support to 
those in need.  
 
(Is this research? If so, who granted it ethical clearance? 
Where is the informed consent from participants? - BH)

RURAL BROADBAND SET TO COST TWICE AS MUCH
-----------------------------------------

Broadband providers are set to pay twice as much for the use 
of Telecom's lines in rural regions as they are paying in 
urban areas. In a draft decision, the Commerce Commission has 
suggested Telecom can charge Internet Service Providers $16.49 
a month for the use of its lines in urban areas and $32.20 a 
month in rural areas. It follows the Government's moves to 
unbundle the local loop and encourage faster and cheaper 
broadband. Orcon chief executive Scott Bartlett says the rural 
charge is unworkable, claiming companies will not be able to 
make any money out of any charge above $25. He says the charge 
recommended for urban areas is also at the high end of Orcon's 
expectations. Telecom says it will make a submission to the 
Commerce Commission in a few weeks and will not comment 
further now.

CLEAR MESSAGE FOR FARMERS SAYS JUDGE
------------------------------------

The Food Safety Authority is satisfied with the fine handed 
out to an Auckland farmer who pleaded guilty to using a plant 
pesticide on his cattle. Carl Houghton of Waimauku has been 
ordered to pay $15,000 plus court costs for spraying 
endosulfan on his animals at his farm at Waimauku and failing 
to notify the processing plant when the animals went for 
slaughter. His actions led to the suspension of New Zealand 
beef exports to Korea in September 2005. Beef exports to seven 
other markets were also potentially affected. Judge Moore told 
Houghton that what happened was a disaster of national 
importance. He says while the sentence was the absolute 
minimum, it highlighted the need to send a very clear message 
to the farming community. He says there was still a major 
problem concerning farmers' attitudes towards agricultural 
chemicals. Geoff Allen from the Food Safety Authority, says 
the contaminated meat resulted in the loss of lucrative Korean 
military contracts which accounted for around 35 percent of 
New Zealand's beef exports. The farmer's actions also caused 
the biggest and costliest investigations Food and Safety had 
ever carried out.

A JOINT CAUSES THE DAMAGE OF FIVE CIGGIES
-----------------------------------------

New research has found smoking a marijuana joint has the same 
effect on the lungs as smoking five cigarettes. The study from 
the Medical Research Institute of New Zealand divided 339 
volunteers into four categories: those who smoked only 
cannabis, those who smoked only tobacco, those who smoked both 
and those who smoked neither. Research head Richard Beasley 
says it is common knowledge the negative effect cigarettes 
have on the lungs, but there is a lack of knowledge 
surrounding sustained cannabis use. He says the real advantage 
of the study is people can now understand the risks of smoking 
cannabis from a physical health perspective, not just a mental 
health one. Professor Beasley says the damage appears to be 
caused because marijuana joints are usually smoked without a 
filter, and are smoked down as far as possible, which means 
the smoke is hotter when it arrives in the lungs.

APPLES ON TRADE TALK AGENDA
---------------------------

Top level trans-Tasman talks are underway in Auckland today. 
Trade, economic, and agricultural ministers from New Zealand 
and Australia are meeting for annual Closer Economic Relations 
discussions. Trade Minister Phil Goff says it is a chance to 
endorse further collaboration and discuss trade policy issues. 
He says this year's meeting will include food regulation and 
market access to free trade agreement agendas. The ongoing 
dispute over the access of New Zealand apples to the 
Australian market will also be on the agenda.

NATS SET ON WORK FOR DOLE SCHEME
--------------------------------

National promises businesses would not be undercut by its 
planned work for the dole scheme. The party is holding a forum 
today with MPs and NGO representatives as they continue to 
work on the framework of the policy. Welfare spokeswoman 
Judith Collins indicates National would use the approach used 
in Australia as a model. She says what is proposed is that 
work done under the scheme be totally non-commercial and is to 
benefit charities and voluntary groups. Ms Collins says the 
policy is still being worked on and she cannot give any 
indication of when it will be finalised.

FIZZY DRINKS OUT, MILK IN AT RUGBY GAMES
----------------------------------------

Anchor is taking milk back to its grass roots, announcing a 
sponsorship deal that will see milk replace fizzy drink at 
provincial rugby grounds. The deal, which incorporates the G-
nine, or non-Super 14 rugby unions, aims to promote healthy 
lifestyle changes by completely removing carbonated drinks 
from sale. G-nine spokesman Warren Goddard says like the 
education sector, the rugby unions felt it was time to set a 
good example to kids by offering positive options. He says 
participating rugby stadiums will offer water and juice, along 
with regular, low fat and flavoured milk.

EMPLOYERS' UNION WELCOMES COUNCIL INQUIRY
-----------------------------------------

Employers and manufacturers are welcoming the Royal Commission 
of Inquiry into Auckland's local government structure. The 
inquiry will explore whether Auckland's local bodies need 
radical restructuring. The government has already been working 
with the regional's eight councils to find out whether there 
can be improved organisation. Alasdair Thompson of the 
Northern Employers and Manufacturers Association says it is 
exactly what the city needs to progress. The EMA has been 
pushing for major changes to the region's governance with its 
fixauckland.com campaign and Mr Thompson believes there is 
widespread support for the idea. Mr Thompson says 72 
organisations have been consulted with most in favour of one 
governing body with two levels. Mr Thompson hopes the end 
result of the Commission of Inquiry will see a greater 
Auckland council handling the five big issues of transport, 
water, planning, economic development, regional facilities and 
parks.

CROSS PARTY ACCORD ON FAMILY VIOLENCE
-------------------------------------

Prime Minister Helen Clark denies the problem of young 
children being attacked by family members is solely a Maori 
issue. United Future leader, Peter Dunne, is urging Maori to 
recognise and deal with child abusers in their families, but 
Miss Clark says it is a wider issue for the country to deal 
with, as violence against children occurs in every community. 
Maori Party MP Te Ururoa Flavell says community groups have 
the solution to stop issues in their tracks, but are not being 
supported enough. The Waiariki MP says more government support 
is needed for people who have expertise and networks in the 
community to connect with those who need help. He says people 
will rescue dogs who are off their leashes, but little 
attention is given to struggling families. Mr Flavell says 
problems may include an inability to cope with issues 
including housing, unemployment and poverty. A cross party 
accord on family violence will be held at Parliament tomorrow. 
Four of the five people accused of abusing three-year-old 
Rotorua girl Nia Glassie have appeared in court. They include 
her stepfather and uncle. Nia remains in a serious condition 
in Starship Hospital in Auckland. Her alleged abuse reportedly 
includes being pegged to a clothes line and swung around and 
being put into a tumble drier. In the second case of alleged 
abuse on a Rotorua child, a 12-week-old is in a stable 
condition in Starship Hospital with suspicious head injuries.

Wednesday, 1 August 2007
~~~~~~~~~~~~~~~~~~~~~~~~

JULY WEATHER FROM ONE EXTREME TO ANOTHER
----------------------------------------

July's weather was a mixture of extremes and contrasts. NIWA 
says it included severe floods, tornadoes, destructive winds, 
ice and severe frosts. Temperatures tended to be below average 
in the lower South Island and above average in much of the 
North Island. Twice as much rain as normal fell in Hawke's 
Bay, parts of Northland and the South Canterbury and Otago 
coasts. But north and west of the South Island received just 
half their normal July amount. 

LAW CHANGE WOULD SUPPORT BREASTFEEDING
--------------------------------------

Mothers may soon have the assurance they can breastfeed 
wherever they like, without being asked to leave. Rotorua MP 
Steve Chadwick has today launched her Infant Feeding Bill, 
which would give mothers the right to breastfeed regardless of 
where she is, without discrimination. It would require a 
change to the Human Rights Act. In her bill, Ms Chadwick is 
highlighting cases of businesses asking women to leave when 
they feed their babies. In one case, Te Papa staff asked a 
mother not to breastfeed in their library. In another a 
Dunedin cafe banned a group of breastfeeding women, claiming 
it displayed the wrong image to the public. 
 
(My memory says that this initiative was triggered by an 
incident in which an Auckland woman was breastfeeding a four 
year old at a kindergarten or playcentre, and this caused 
other mothers some discomfort. - BH)

GOVT WANTS NATS ANSWER ON MEDICINES BILL
----------------------------------------

The Government is seeking an urgent meeting with the National 
Party over the future of the Therapeutics Medicines Bill. It 
follows media speculation the party would support a two-tier 
compromise proposal for a regulatory body. National leader 
John Key maintains his party's position has not changed, as it 
has not seen any draft legislation. State Services Minister 
Annette King is demanding Mr Key clarify his position and 
wants an urgent meeting with him to discuss the matter. She is 
asking him to bring his pen with him if he is ready to sign up 
to a deal, as she is convinced the legislation is in the 
country's best interests.

MORE BEING SPENT ON POKIES
--------------------------

People are spending more at the pokies. Department of Internal 
Affairs figures on non-casino gaming machines shows an 
increase of nearly five percent in the year to June. Spokesman 
Mike Hall says there have been concerns that pokie spending 
was falling, affecting the amount of money being distributed 
to the community but he says the data from the new electronic 
monitoring system has revealed that is not the case. 
Approximately 20,000 gambling machines in 1,600 pubs and clubs 
are now monitored by Internal Affairs. 

DIGITAL DIVIDE UNACCEPTABLE SAY FARMERS
---------------------------------------

Farmers fear they will be left in the slow lane of the 
internet super highway. The Commerce Commission has 
recommended charges for rivals' use of Telecom's unbundled 
local loop set the rural rate at $32.20 a month - twice the 
price of urban areas. Federated Farmers Vice President, Don 
Nicholson, says that two-tier price system will discourage 
telcos from investing in rural areas. He says farmers are 
acutely aware it costs more to service rural customers, but 
says there is already a digital divide between town and 
country and it cannot be allowed to grow wider. Mr Nicholson 
says the Government's work on a rural telecommunications 
package must take account of the differing rental costs and 
find a solution to under-investment in rural areas. "We will 
be looking to understand the implications of the "two tier" 
pricing model on investment levels, competition levels, 
service and pricing levels in rural New Zealand." Federated 
Farmers plans to make a submission after considering the 
Government's draft determination.

ARTIFICIAL SWEETENER BAN MOOTED
-------------------------------

Schools are being urged to put in place a 60 day ban on 
artificially sweetened drinks and chewing gum. Health 
watchdog, the Soil and Health Association, believes the common 
sweetener aspartame is linked to many symptoms including 
anxiety, depression, dizziness and irritability. Spokesman 
Steffan Browning says the 60 day challenge would be worthwhile 
in schools, which have taken a lot of sugary food out of 
canteens. He is confident that it would result in a marked 
improvement in pupils' behaviour and wellbeing. Mr Browning 
says while sugar is not a good food, the health impacts of 
aspartame are probably worse. He says diet drinks and other 
sugar free products are already being withdrawn at schools 
overseas. 

PAY OFFER FOR SENIOR DOCTORS REVEALED
-------------------------------------

District Health Boards have revealed the pay increase they 
have offered senior doctors. The Association of Salaried 
Medical Specialists says 80 senior doctors have left for 
Australia in the past 18 months or plan to because better pay 
and conditions are on offer. Executive Director Ian Powell 
says stopwork meetings indicate members are keen to vote on 
the unprecedented step of taking industrial action. Dr Nigel 
Murray, lead negotiator for the DHBs, say the hospital boards 
have offered the specialist doctors a $45,000 pay rise which 
is very competitive and would mean specialist doctors receive 
an average salary of just over $243,000. The offer was put on 
the negotiating table in June, but has not been accepted.

Thursday, 2 August 2007
~~~~~~~~~~~~~~~~~~~~~~~

CHARITY MUST PAY RATES ON PRIME REAL ESTATE
-------------------------------------------

The Supreme Court has ruled a charity must pay rates on a 
prime piece of Auckland land it owns. The High Court had ruled 
the Royal New Zealand Foundation of the Blind's property in 
Parnell was exempt, but that was overturned by the Court of 
Appeal. The Supreme Court has upheld the Court of Appeal 
decision and has also ordered the foundation to pay the 
Auckland City Council costs of $15,000.

GULL DISMISSES CLAIM BIOFUEL IS UNSAFE
--------------------------------------

Gull has dismissed claims its new biofuel is unsafe for some 
cars as scaremongering. The company has launched a new blend 
of petrol and ethanol derived from milk by-product, whey. The 
Motor Trade Association, AA and Toyota have expressed concern 
the fuel may not be suitable for Japanese imports. Gull 
general manager Dave Bodger says some people reading too much 
into a Japanese study into corrosion, carried out some time 
ago. He says that test was set up to make corrosion happen 
with an acidic fuel. Mr Bodger says Gull has addressed the 
issue by adding a corrosion inhibitor that protects the 
engine. He says it is widely used in the United States, Brazil 
and Australia.

SISTER CITY DEALS BRING DOLLARS TO AUCKLAND
-------------------------------------------

New economic analysis shows Auckland's economy receives 
significant financial benefit from sister city relationships. 
Independent analyst Covec has studied the impact of the 
partnerships and other programmes for the five years ending 
March 2007. It found $55 million is added annually to 
Auckland's economy by the links. It says further social and 
cultural benefits exist because of the links, but they are not 
quantifiable. The standout was the education sector, with $53 
million generated each year. The report also points out that 
Auckland's economy benefited from tourism to the tune of 
around $1.5 million annually as a result of the partnerships. 
Auckland has formal international partnerships with Brisbane, 
Busan in South Korea, Fukuoka, Shingawa and Tomioka in Japan, 
Guangzhou in southern China, Hamburg and Los Angeles. 

NZ'S STORIES BRINGING ECONOMIC BENEFITS
---------------------------------------

The Prime Minster is highlighting the economic benefits of New 
Zealand-made film and television productions. Helen Clark 
attended the Air New Zealand Screen Awards last night, where 
Outrageous Fortune stole the show bagging six awards including 
best drama and three acting prizes. Miss Clark says such 
programmes do a power of good for New Zealand because we get 
to tell our stories not only at home, but abroad. She says 
turnover in the screen production industry is just about 
equivalent to that of the forestry industry, which shows how 
important the sector has become to the country. Last night's 
award winners include Robyn Malcolm, Antony Starr and Frank 
Whitten, who took out three of the four acting awards for 
their roles as various members of the West family in 
Outrageous Fortune. Shortland Street's Anna Jullienne won the 
other acting award for her part as Maia Jefferies, the only 
award for the soap opera this time around. In the laugh 
department, Bro' Town picked up the prize for best comedy 
show. Dancing With The Stars won best lifestyle-entertainment 
programme and its host Jason Gunn has been named best 
presenter.

SPRING COMES EARLY
------------------

While it is still officially winter, a change in weather 
patterns has resulted in early spring conditions. Philip 
Duncan, TRN Weather Analyst, says the coldest temperatures of 
winter have passed, due to westerly winds over much of the 
country. Temperatures in northern regions and some southern 
areas such as Canterbury have reached temperatures in the 
upper teens in the last week and the trend is set to continue 
for the week ahead. There will be more showery weather in 
western regions and dry, warm weather in the east. "We're now 
getting more than half an hour of sunlight a day which marks 
the end of the solar winter. That means temperatures will now 
start to creep up a little, but obviously severe cold 
outbreaks are possible right up until November". Mr Duncan 
says it is not all bad news for snow enthusiasts, as there are 
likely to be some big snow falls before winter draws to a 
close. 

(Hah! - BH)

INTEGRATION TEST WANTED FOR NEWCOMERS
-------------------------------------

New Zealand First wants immigrants to undergo a test to prove 
they would fit into New Zealand society. The Australian 
Government has announced plans for an integration test to 
crack down on migrants deemed unfit to live Down under. New 
Zealand First deputy leader Peter Brown says with the volatile 
world we live in, a similar test needs to be introduced in New 
Zealand. 

(Someone has been taking lessons from John Howard, perhaps? - 
BH)

BILL GIVES UNUSED LAND BACK
---------------------------

People who have lost their land due to the Public Works Act 
could will have a shot at getting it back if a Maori Party 
initiative succeeds. MP Te Ururoa Flavell has drafted a 
private members' bill aimed at giving former landowners the 
right of first refusal to get their land back if the Crown is 
no longer using it. He claims the bill is not just aimed at 
Maori land issues. Mr Flavell says if people lose their land 
for the betterment of the state and it turns out the state no 
longer needs it then surely that land should go back to them 
regardless of whether they are Maori or Pakeha.

BIOFUEL CHECKS NEEDED FOR OLDER CARS
------------------------------------

The organisation which represents car dealers and petrol 
stations is applauding the move by Gull Petroleum to introduce 
biofuels to the commercial market, but warns care must be 
taken with older cars. The petrol company has launched a bio-
fuel that is ten percent ethanol made from milk. It is four 
cents cheaper than 98 and suitable for any vehicle using that 
petrol. Andy Cuming from the Motor Trade Association says 95 
per cent of new cars on the market will be able to use the 
fuel but checks will need to be done on older cars to make 
sure they are compatible. He says if biofuel is put in an 
incompatible car there is a risk of fuel leaks and fuel line 
deterioration. Oil companies will have to start offering 
biofuels from April 1 next year to meet the Government's 
target of a biofuel component of 3.4 percent in petrol and 
diesel by 2012. There will be no excise tax charged on the 
ethanol.

COMMISSIONER SAYS BILL IGNORES HUMAN RIGHTS
------------------------------------------

The Human Rights Commissioner believes a fundamental rethink 
is needed of a bill designed to stop criminals profiting from 
crime. The Criminal Proceeds Recovery Bill would establish an 
office through the Serious Fraud Office to seize assets which 
are thought to have been gained through criminal activity, 
even if someone is not found guilty in court. At the moment 
only the assets of convicted criminals can be taken. Chief 
Human Rights Commissioner Rosslyn Noonan says the bill 
reverses the fundamental principle of justice, the presumption 
of innocence. She says the onus of proof should be on the 
state and the standard required should be beyond reasonable 
doubt to make sure serious miscarriages of justice do not 
occur. But Justice Minister Phil Goff says the bill would help 
to fight organised crime. "International evidence suggests 
that asset forfeiture that is not dependent on criminal 
convictions is a crucial part of tackling organised crime by 
targeting its profits and asset base." He says the Serious 
Fraud Office is well placed to be involved in dealing with 
assets. "That requires a high level of forensic accounting 
skills; in-depth knowledge of techniques used to conceal 
money; the ability to reconstruct the financial affairs of 
individuals; specialist investigative expertise in dealing 
with serious or complex finance fraud, and strong links with 
other law enforcement agencies.

Friday, 3 August 2007
~~~~~~~~~~~~~~~~~~~~~

AIR NZ BUYS FOUR NEW AIRCRAFT
-----------------------------

Air New Zealand is replacing the jumbo jet in favour of newer 
models. The airline has today announced it will purchase four 
Boeing 777 300 Extended Range aircraft. The planes will be 
delivered along with the airline's Boeing 787s between 2010 
and 2011. Chief Executive Rob Fyfe says the 747's and 767's 
are being phased out as the new aircraft are introduced to the 
network.

TELECOM MAKES $3B PROFIT - BUT NOT SO ROSY
------------------------------------------

Telecom has made a $3 billion profit. However $2 billion of 
that is a one-off from the sale of its Yellow Pages Group. The 
company has declared a dividend of 14.5 cents per share. 
Analysts say underlying earnings in Telecom's domestic market 
were sluggish. Once one-off items are stripped out, the profit 
drops to $955 million. Telecom says net profit for the current 
financial year will be more like $600 million, because of the 
loss of earnings from Yellow Pages, and lower income from its 
other activities in New Zealand. 
 
(How the media love headlines like this. For the shareholders, 
the return on investment is marginally different to what could 
be gained by putting their money on term deposit with a bank, 
but is much more risky. - BH)

MANUKAU DEFENDS HOUSE TAX PLAN
------------------------------

Manukau City Council is defending itself over its proposed 
Real Estate Transfer Tax. It is part of a submission the 
council made to the Local Government Rates Inquiry looking at 
alternatives to rates funding. Finance Manager Robert Trautz 
says property sales taxes are commonly used overseas to fund 
things like low-cost housing and redevelopment. He says it is 
simply a charge on a real estate transaction. He says if a 
house sold for $400,000 and the policy was that the first 
$300,000 exempt from the tax, people would pay tax on the 
$100,000 difference. But Mr Trautz says it is not something a 
local council can enforce on its own. He says it would have to 
be legislated for by Parliament. 
 
(I hope that parliament would have no appetite for such a 
poisoned pill - BH)

STUDENTS URGED TO RIP OFF WINZ
------------------------------

An article in a Wellington student magazine called 'How to rip 
off WINZ' hasn't gone down well with Work and Income. Victoria 
University's Salient magazine has detailed ways students can 
work the system to get a free cellphone, have their power 
bills paid and qualify for regular food grants. It also tells 
readers that if they have earned some money, they should spend 
it quickly on things like alcohol, so they will qualify for 
benefits again. WINZ Wellington regional manager Mike Bryant 
admits a lot of the information is correct, but taken out of 
context. He says the department sometimes does help fund 
cellphones, if people are genuinely looking for work and have 
no other way of being contacted. But he says that is decided 
on a case by case basis and is not common. He says the tone of 
the Salient article is disappointing.  
 
(The tone of Salient? Blessed is he who expects little. He 
shall not be disappointed. In my exposure to student 
newspapers around the country they all aspire to cleverness 
rather than high ideals. It goes with the territory. - BH)

CITY SPLURGES ON PERFORMING ARTS
--------------------------------

Auckland City Council is again digging deep to help support 
the performing arts. Grants approved for the coming financial 
year include $500,000 for the Auckland Philharmonia. Another 
$105,000 has been set aside for the Auckland Theatre Company, 
and $75,000 has been earmarked for New Zealand Opera. 

SMALL BUSINESSES SECOND CLASS
-----------------------------

The government is being accused of treating small business 
owners as second class citizens. Massey University researcher 
Claire Massey says both small and medium businesses get very 
little by the way of support and encouragement. She says the 
only exceptions are firms with high tech products or those 
boasting an exceptional export opportunity. As for the rest, 
she says the government effectively says - "we don't want 
you". Claire Massey points out New Zealand has just under 
1,500 firms employing more than 100 staff. The rest of the 
workforce are scattered across another 400,000 firms.

SALARY EXPECTATIONS OVERBLOWN
-----------------------------

Despite the tight labour market, a lot of people are 
apparently expecting a bigger pay rise than their bosses have 
in mind, according to a new survey. One thousand people were 
spoken to by recruiting company Hays New Zealand, which found 
three out of four are expecting a salary increase this year. 
Just over 30 percent are expecting a rise of more than 10 per 
cent, but they are likely to be disappointed. Only two percent 
of employers say they intend to increase salaries that much. 
The majority of employers are looking to give rises of between 
three and six per cent. Hays says workers getting the biggest 
increases at the moment tend to be in professions, or work in 
advertising, the media, construction, property engineering and 
mining. 

COUNCILS DRIVE BROADBAND ACCESS
-------------------------------

Auckland City Council is behind a move to make faster Internet 
access available to businesses in the city's centre and inner 
suburbs. Spokesman Richard Northey says demand for improved 
broadband access is skyrocketing throughout Auckland's 
business districts and suburbs. And he says the wait for many 
is almost over, with plans to build a network utilising 
existing ducts running alongside railway lines. The plan would 
involve linking the Auckland, Manukau and Waitakere districts. 
Richard Northey says current broadband speeds provided by 
Telecom in areas like Point Chevalier and Penrose are not up 
to scratch. He is confident the new system can be up within 
the next few months. Mr Northey says the councils are looking 
at what kind of direct financial support and contributions 
they will need to make it happen.  
 
(My "up to 7.5 Mb/s" ADSL service has never exceeded 4 Mb/s 
and more usually hits around 2.8. The whole broadband industry 
needs a sever injection of honesty. - BH)

HOTLINE SET UP OVER TOXIC TOYS
------------------------------ 

Toymaker Mattel has set up a toll-free number for worried 
parents, after announcing a massive recall. More than a 
million toys here and around the world have been finished with 
an unapproved paint which may contain too much lead. The 
Fisher Price toys include popular preschool characters like 
Elmo and Big Bird. The massive recall comes amid heightened 
concern worldwide about the safety of goods imported from 
China. Anyone with concerns can call 0800 174 063.

EMPLOYERS WARY OF SACKING STAFF
-------------------------------

There are concerns employers are becoming increasingly nervous 
about trying to dismiss unsatisfactory members of staff. 
Employment Relations Authority decisions from 2006 show there 
were 238 cases of disadvantage brought by former employees. 
David Lowe of the Northern Employers and Manufacturers 
Association says 70 percent of decisions in these cases went 
in favour of the employees. He says 64 percent of all claims 
are adjudicated in favour of sacked workers. Mr Lowe says the 
significant drop in constructive dismissal cases is further 
proof employers are worried they cannot fire people who do not 
measure up, under the new dismissal laws. He says the overall 
number of actual and constructive dismissal claims dropped 
from 312 the year before, to 217 in 2006. 

ROW OVER PATERNITY TEST BILL
----------------------------

A private member's bill which would give Family Courts the 
power to order paternity tests is being condemned as a breach 
of civil rights. Family law barrister Stuart Cummings says the 
measure, which is being promoted by United Future MP Judy 
Turner, is unnecessary and unacceptable. United Future is 
portraying the step as an attempt to level the playing field 
between men and women. Judy Turner says it will finally allow 
a man and child to know for certain whether they are related. 
She says at the moment the Family Court has no power to order 
a DNA test, even if it's asked to do so by a possible father. 
At present family courts can only recommend a test, leaving 
the power in the mother's hands. Ms Turner says New Zealand 
law is lagging behind technology, which now allows for non-
invasive ways of obtaining a DNA sample. Mr Cummings says he 
is not aware of any inquiry being made over the issue, so 
finds it hard to think there is a need for compulsory tests. 
He says people deserve the right to choose what tests they 
undergo. But a fathers group has thrown its weight behind Ms 
Turner's bill. Jim Bagnall of the Coalition of Fathers says 
such a change will allow the truth to come out. He says the 
proposed change is long overdue, and it is about time we had a 
level system of justice. 


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 at 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.