WYSIWYG NEWS - 3 July, 2007

[news at wysiwygnews.com]

Subject: 03 July, 2007
----- WYSIWYG NEWS ------------------------------
Copyright, Brian Harmer. 

Where does my time go? I really do intend to post on a regular and reliable basis, but preparation for teaching a new course (organizational communications) and getting research articles ready for submission is breaking down the boundaries between work and private life which is truly ironic, since that is precisely the focus of the research in which I am currently engaged. Anyway, no excuses other than chronic procrastination. My apologies. I haven't been anywhere since I last wrote, other than the routine commuting to the city. Winter is truly upon us. We have had many days of miserable weather with low clouds, strong winds and bitter temperatures. On the occasional clear grey days in between the spells of bad weather, the Tararuas assert themselves with their extensive coat of new snow. Stark and icy blue, they  impose themselves on the view with a silence that is tangible. The weather has made it tough for the children playing soccer down on Sladden Park beside the Hutt River. Despite the bleakness of the weather, the youngsters seem to enjoy themselves as parents huddle in padded coats on the sidelines. 
At the university, it is now the last week of the mid year break, and the corridors and quad are mostly empty. Indeed most of the offices of my colleagues also seem empty as so many of them are away on conferences. A few more days of quiet before the term begins. 
A happy holiday wish  for Wednesday to all readers in the US. 

----
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 sponsored by John Burland in Germany. Many thanks for your generosity John. 
---- 
On with the News. 

Monday, 18 June 2007
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TABS KEPT ON INSIDER TRADING SAYS COMMISSION
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The Securities Commission insists it is not letting anyone off the hook by accepting a $20 million settlement over insider trading allegations involving shareholders in Tranz Rail. Former shareholder Midavia Rail Investments and former director David Richwhite have made the payment without admitting any liability. The deal was agreed in the High Court in Wellington. Securities Commission chairwoman Jane Diplock maintains it will send a clear message that insider trading in this country is being policed and where it is believed there is insider trading going on, the commission will take action. Ms Diplock says the commission will be going back to the High Court to get direction on how to best compensate shareholders.

(Notwithstanding the fact that the payment was made without admission of liability, most comment I have read seems to be from people who believe otherwise. - BH)

TRIBUNAL FINDS FAULT WITH HANDLING OF CLAIM
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An inquiry into the handling of a Rotorua tribe's Treaty of Waitangi claim has found serious flaws in the way the Crown handled the process. Te Arawa's settlement covers a large area around Rotorua and includes parts of the Kaingaroa Forest. The Waitangi Tribunal says the inquiry has revealed the Crown failed to safeguard the interests of groups which have yet to come to the negotiating table. It says as a result, hapu are in contest with other hapu and the preservation of tribal relations has been adversely affected. The Tribunal is recommending the Crown vary aspects of the settlement package before legislation is passed.

SCHEME TO PREVENT SCHOOL BUS BULLYING
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A compulsory training programme aimed at giving school bus drivers the tools to deal with unruly behaviour is being welcomed by the industry. A Ministry of Education report has highlighted safety concerns of older buses, overcrowding, and bullying. Bus and Coach Association President John Collyns says out-of-control behaviour continues to be a serious problem and drivers are happy to complete the programme. He says it should also help curb bullying on the bus.

TRADE WITH CHINA SAYS DALAI LAMA
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The Dalai Lama is encouraging New Zealand to embrace a free trade deal with China. The exiled Tibetan leader who is visiting New Zealand says a free trade deal, which will help China to interact globally, is good. He says China is an important nation and should be encouraged to become part of the mainstream international community. Prime Minister Helen Clark will not be meeting him during his stay in the country, although she spoke with him informally in Brisbane last week during a chance meeting at the airport. However, the Dalai Lama will be a special guest at the Greens' caucus meeting tomorrow morning. Foreign Affairs spokesman Keith Locke says he is one of the world's most revered spiritual leaders and has long been seen as the embodiment of the aspirations of the Tibetan people. Mr Locke accuses the Government and National of shamefully reduced their meetings with the Dalai Lama to a series of chance encounters and unofficial drop-ins. Mr Locke claims Prime Minister Helen Clark, Foreign Minister Winston Peters and National Party leader John Key lack the backbone to stand up to the Chinese government, which is discouraging contact, and of shunning New Zealand's obligations to be a polite and welcoming host.

CURRENCY INTERVENTION WILL "ULTIMATELY FAIL"
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The BNZ's chief economist believes the Reserve Bank's currency intervention to bring down the value of the New Zealand dollar, could be a futile gesture. The bank is believed to have bought up US dollars and sold New Zealand dollars for the second time in a week, causing the kiwi to drop about half a cent against the American dollar this morning. At one point it was down to 75 US cents, but it is now back up to 75.24. The bank is yet to confirm it has stepped in but the BNZ's Tony Alexander says it will not be the last time it takes action. He claims the Reserve Bank is trying to train the markets into believing it is there to prevent any further appreciation but he says that is an experiment that will ultimately fail.

HARD FUNDING ROW TO HOE FOR PHARMAC
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The Cancer Society believes the Government's drug management agency PHARMAC will always be caught up in funding controversies. In its latest announcement, Pharmac will fund Capecitabine for an estimated 450 people a year who suffer colorectal or bowel cancer. The drug is a tablet form of chemotherapy treatment allowing a patient to treat themselves at home after surgery. It will cost around $1.7 million year to fund. The funding for the new drug comes as Pharmac is criticised for not providing enough money to fund the breast cancer drug Herceptin. Professor Chris Atkinson from the Cancer Society says the agency faces a constant dilemma over which drugs it should support. He welcomes the funding of Capecitabine as he says it might take some of the pressure off chemotherapy facilities. But he says the drug produces side effects and patients need to be monitored carefully. About 1200 people die from bowel cancer each year.

MORE CARS ON ROAD IF FARES INCREASE
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A pro-public transport group warns that increasing fares in Wellington will only force people back into their cars. The Greater Wellington Regional Council plans to raise train and bus fares by up to 10 percent over the next two years to fund public transport improvements. But Kapiti's Transport Action Group says the regional council should be looking to the government to fund upgrades. Spokeswoman Lyndy McIntyre says Kapiti Coast commuters are fed up with the unreliable train service and a fare rise would be the last straw. She says until the council upgrades the line and improves train reliability commuters should not be forced to pay extra.

(My brief exposure to the joys of public transport during the weeks when my car was off the road was neither pleasant nor in any way cheaper than travelling by car. I would be further deterred by more expensive fares. - BH)

Tuesday, 19 June 2007
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GOVT SPEAKS OUT OVER TRANZ RAIL DEAL
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Strong words from the Government over the Securities Commission decision to take a settlement over the Tranz Rail insider trading allegations. Former shareholders Midavia Rail Investments and former director David Richwhite have admitted to no liability but have paid out $20 million in an out of court settlement. Commerce Minister Lianne Dalziel is echoing sentiments of the Shareholders Association about the burden of guilt in the case. She says $20 million from Midavia and David Richwhite shows where liability lies.

COUNTRY'S POOR GETTING POORER
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The country's poor are getting poorer according to new figures released by Statistics New Zealand. Analysis of personal incomes over the past five years shows in 2006 the median annual income increased to $24,400. But the number of people earning less than $10,000 a year also rose, by eight percent. People who class themselves as Europeans and New Zealanders had the highest median incomes. Those living on the West Coast, Gisborne and Northland earned the least.

GOVT KEEPING TIGHT LIPPED OVER 20 HOURS
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The Government is still not giving anything away about how its 20 hours free early childhood education policy is faring. ACT and National want to know how many children and centres will be part of the scheme when it begins in two weeks. Education Minister Steve Maharey says he has an idea of what the uptake is but he is not revealing it just yet. He says there is no point in giving a figure now when it can change in an hour or a day. Mr Maharey says details are likely to be announced after the policy kicks off on July 1.

(it strikes me as bizarre that the government has found out the average cost of running these centres and then tried to impose it as a universal payment in lieu of fees. Given that about half of them cost less to run, they will be overjoyed, while the other half quite rightly perceive that it is a losing proposition for them. Who but a bureaucrat could come up with such a concept? And then they get someone form Inglewood to say that they can easily run on the payment offered, an that the people who are running early childhood facilities in the cities must be greedy. - BH)

WELLINGTON HAS TOP INCOME EARNERS
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Men over-45 with a post graduate degree and living in Wellington are most likely to be the country's top income earners. Latest Statistics New Zealand figures show since 2001 the median income for a man has jumped 27 percent to $31,500. In that time, women's incomes have risen more than a third to an annual median of $19,100. Overall, in 2006 the median annual personal income for all people was $24,400. While fewer received income from an unemployment benefit, sickness benefits increased by 32 percent.

CALL FOR GAMBLING INDUSTRY INVESTIGATION
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There is a call for the investigation into the Christchurch Casino to be widened to include the whole gambling industry. Internal Affairs has launched a probe into allegations of loan sharking and financial irregularities at Christchurch Casino. But the Problem Gambling Foundation says loan sharking is endemic in the industry with stories that would make your hair stand on end. Chief Executive John Stansfield says the probe needs to be a lot deeper. He is suggesting a full public inquiry where people can give evidence in confidence.

TASER THREAT STILL PROVING EFFECTIVE
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The latest figures from the police taser trial show the stun guns have been involved in 15 incidents in the last three months. The tasers have only actually been fired three times, with warnings and laser painting helping to defuse the other situations. A taser was fired in an incident in Lower Hutt earlier this month, where a man had been smashing up property and was believed to have a shotgun, an axe and a knife. He was tasered after he came out of his house with his two 6-year-old sons, and had to be shot after he had ignored several warnings from police. Since the trial started on September 1 last year, there have been 100 incidents involving tasers.

FORUM WILL DISCUSS URBANISATION
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A forum in Queenstown next month will discuss how urbanisation will affect farming practices in the future. The forum coincides with the Ballance Farm Environment Awards. David Natzke from the New Zealand Farm Environment Award Trust says the rapid growth of many towns and the increasing popularity of lifestyle blocks is putting more pressure on agricultural land and affecting the way many farmers run their operations. He says farmers will be able to hear about the problems other farmers have had to face and learn about ways in which urbanisation can be managed in the future. Mr Natzke says the issue has already been tested in Queenstown, where there has been a considerable amount of development. Speakers will include John Aspinall of Mt Aspiring Station, who was the supreme winner of last year's Otago Ballance Farm Environment Awards, and fellow farmers Chris Dagg and Debbie McColl. Gillian Macleod from the Queenstown Lakes District Council's strategy and planning committee will also address the audience.

(As they say of Queenstown, if you work there, you probably can't afford to live there. - BH)

GOOD NEWS FOR WOULD BE EMPLOYEES
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Bosses think they are going to be hiring more staff in the next six months. Hiring expectations are at their highest level for two years. That is according to a survey by HR consultants Hudson. A net 39 percent of employers expect to increase their staff numbers between now and the end of the year. That is up five percent on the same time six months ago. Hudson executive general manager Marc Burrage says companies appear to be looking beyond pessimism in the economy, to take advantage of business and growth opportunities.

LIMITING IMMIGRATION A WORRY FOR BUILDERS
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Builders are concerned about suggestions that limiting immigration levels could solve housing affordability problems. A paper is being prepared for Cabinet which will explore the impact of immigration on the economy. New Zealand First leader Winston Peters insists immigration has a profound impact on rising house prices in Auckland. The Registered Master Builders Federation says restricting immigration could seriously impact the construction sector. Chief Executive Pieter Burghout says the Government is risking constricting a core engine of the New Zealand economy if it reduces the number of people coming into the country.

SOLUTION MOOTED FOR UNAFFORDABLE HOUSING
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A new town on the outskirts of Auckland is being suggested as a solution to unaffordable housing in the region. Manukau mayor Sir Barry Curtis says the ridiculous cost of land in and around metropolitan Auckland is driving house prices beyond reach. He believes central and local government should work together to create a new corporate structure, which would be empowered to buy a large tract of land well beyond metropolitan limits. He says the land must be kept in public ownership and could provide rental opportunities. Sir Barry says it is about time such a strategic initiative was seriously considered.

Wednesday, 20 June 2007
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DOLLAR EDGES HIGHER
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Despite two interventions by the Reserve Bank, the dollar's edging ever closer to 76 cents against the US greenback. It is hovering around the 75.90 mark. Since being floated 22 years ago, it has only once broken above 76. That was just over a week ago and analysts believe it was the trigger for the Reserve Bank to sell New Zealand currency in a bid to bring its value down. It is believed to have tried the same tactic again this week - but obviously to no avail.

SCHOOL CONTACT HOURS CRITICISED BY NZFIRST
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A reduction in school contact hours is being criticised by New Zealand First. Official figures show primary school compulsory opening half days for the next three years are 3 to 5 days lower than regulations require. New Zealand First MP Brian Donnelly is concerned at the situation saying research proves time spent in learning impacts on educational outcomes. He is demanding answers from Education Minister Steve Maharey as to why the reductions have been allowed. Education Minister Steve Maharey says the matter was widely consulted on and agreed to by schools.

KIWIS FLY THE NEST MORE
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New Zealanders are holidaying overseas in record numbers. Just over 171,000 Kiwis took short trips overseas last month. That is a 23,000, or 16 percent increase on May last year and is the largest monthly increase since December 2004. Half the increase is in trips to Australia. There were also more trips to the Cook Islands, Samoa, the US, UK, and China. Trips to Spain doubled from 700 last May to 1400 this May coinciding with the Louis Vuitton yachting regatta in Valencia. However, departures to Fiji are down by 800, or nine percent, reflecting the political situation there.

DEBATE OVER SMACKING GUIDELINES
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Months of deliberation, argument and protest, and the police have basically the same power they always did to prosecute parents who smack. Police have released their guidelines on how officers should deal with parents accused of smacking their kids. Bob McCoskrie from lobby group Family First says the situation is laughable. He says the guidelines give officers the power to determine whether force used is reasonable, which was the situation under the old Section 59. He thinks police will have to admit they have no idea how the law will be applied, so will need test cases to go through the courts. However, there is some praise for police guidelines on how to implement the anti-smacking legislation. Bill author Sue Bradford says the guidelines really support the idea behind the bill. She says it is clear that using weapons, or hitting kids around their head is inappropriate and also gives good rules around what is. She is also denying it has been watered down. Under the law, police are allowed to decide whether an offence has been committed. She says that approach is consistent with all other laws. She says when a police officer attends a report of any offence they have to decide how serious it was, whether it actually happened, and what action to take. She thinks it is important cases of smacking are logged so any patterns of abuse can be picked up. Police say if an assault is found to be "minor, trivial or inconsequential, the event will be recorded and the file forwarded to a family violence co-ordinator. The police statement says that until cases go through the courts, it is not clear how the law will be applied, or what sentences will be imposed.

LAMB RIVALS MAY BECOME ALLIES
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British sheep farmers want to team up with their New Zealand counterparts, despite protests about cheap New Zealand lamb pushing down their profits. In the past, neither UK nor New Zealand sheep farmer have been particularly sympathetic towards each other's plight but that may be about to change. Several farmer organisations in Britain are interested in making contact with New Zealand lamb producers saying it is time to work together. Peter Morris, CEO of New Zealand's National Sheep Association, blames big UK supermarket chains for forcing prices down. He says it is ridiculous that UK and New Zealand producers supply around 90 percent of lamb for the British market, yet allow themselves to be played off against one another by those whose sole intention is to take as much short term profit as they can.

$1M FOR ANTARCTIC RESEARCH
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A Victoria University graduate is donating $1 million to its Antarctic Research Centre for research into global warming. Alan Eggers was a member of the University's 1975 Antarctic Expedition, and went on to make his money in uranium mining. He says he is delighted to be able to give something back. Centre Director Professor Peter Barrett says the money is a significant boost for their research on the ice, and comes at a time when the need to know more about the region's climate history is more important than ever before. Mr Eggers, who is now based in Perth, will visit the University's Kelburn campus in the near future to meet with former lecturers.

BERL PREDICTS SLOW GROWTH
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Independent research company BERL predicts the economy will experience an agonizingly slow improvement in growth over the next three years. BERL's quarterly forecast says the growth is underpinned by a terms of trade boom, planned and committed infrastructure projects and ongoing employment and income growth. Senior Economist Dr Ganesh Nana says while exports are ticking along, high interest rates are holding things back. He believes the Reserve Bank has been too slow to take firm steps to cool the economy, resulting in the exchange rate being too high for growth prospects. Dr Nana says an unfortunate side-effect of the Reserve Bank's intervention in the currency markets is that it creates the impression there is a crisis in the economy, which he says could not be further from the truth. But Dr Nana says coupled with the collapse in business confidence and a turnaround in migration, there is a danger of the country talking itself into the doldrums.

Thursday, 21 June 2007
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YOUTH ADVOCACY BACKS LOWERING VOTE AGE
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A youth advocacy group is getting in behind a proposal to lower the voting age from 18 to 16. Sue Bradford's Private Member's Bill also includes a requirement to teach civil education in schools. Sarah Helm from the Association for Adolescent Health and Development says research here and overseas shows young people would take voting seriously. She says it is important to bring the voting age back to a school level, so young people can be taught about the democratic process then and there.

(This is just odd. - BH)

WATER DEBATE NOT ABOUT POLITICS
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The Auckland political party behind an attempt to cut water rate price hikes denies it was an electioneering stunt. The city council has rejected a proposal by the Citizens and Ratepayers party to drop planned rate increases from 9.1 to 5 percent. Team leader Scott Milne says the party signalled over a month ago its concern at the public outcry over the issue. He says after listening to that, they came up with a workable solution, but the council has chosen to completely ignore it. The result, he says is a bad day for Auckland.

(In my opinion, the requirement by the Auckland City Council that water should return a dividend which they can then use to make their rates increase look smaller is just dishonest. - BH)

DOLLAR FEARS CONTINUE TO RISE
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Exporters say the dollars going from bad to worse. It is back up over 76 cents against the Greenback, a level which triggered the first intervention from the Reserve Bank. There has been no sign of any further intervention so far from the bank. Export New Zealand Chief Executive Bob Walters says the difficulty is there is little the Reserve Bank is willing or able to do that does not simply drive the dollar higher.

BOY RACERS BANNED IN CHCH
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Boy racers will now be banned from several semi-rural Christchurch streets and there is the promise of more to come. At this morning's meeting, councillors agreed to go ahead with a light vehicle ban on Hasketts, Barters, Leggett and Roberts Roads to the west of the city. Residents there have complained for years about the noise, damage and distress caused to them by hundreds of boy racers on their roads. Now, that is all set to end with the prohibition lasting from 10 pm to five am between Thursday and Sunday. Light cars will also be banned on Sundays and Mondays between 9 am and 5 pm and the night before public holidays.

EMA WARNING ON COUNCIL SPENDING
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The Employers and Manufacturers Association says council spending across the country is spiralling out of control. The Association is citing figures from Statistics New Zealand, showing council staff costs alone have gone up by 11 percent in the past year. Chief Executive Alasdair Thompson says businesses are bearing the brunt of the problem, because they pay higher rates. He says many cost increases are totally superfluous, and if councils curtailed their use of consultants for example, they could back on spending ratepayers money. 

TAX SCHEME LEASES COULD COST MILLIONS
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The Government estimates tax schemes involving leases on overseas assets could cost it hundreds of millions of dollars in lost revenue. The Government is to change tax rules that allow parties to claim depreciation deductions for assets in which they have no financial interest. The assets are in turn leased to offshore entities that are not subject to our tax laws. Revenue Minister Peter Dunne will not give details about the companies or individuals involved but says potentially the cost in lost revenue could have been around $100 million over the next decade. He says Inland Revenue has advised there was a potentially significant problem so they are moving to fix it before it gets worse.

POLICE RECRUITMENT EFFORTS PRAISED
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Recruitment efforts by police are being applauded by New Zealand First. Police bosses have announced they expect to exceed recruitment targets this year. A cornerstone of New Zealand First's confidence and supply agreement with Labour is the addition of another 1,000 sworn officers. Justice spokesman Ron Mark is welcoming the news saying Police and their Minister are to be congratulated for their efforts. He says it shows his party's aim to increase police ratios to similar levels as those in Australia is achievable.

EFFECTS OF DR SHORTAGE BEING FELT IN AKL
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A severe shortage of junior doctors at Auckland hospitals is forcing some to take on the workload of two or more doctors. The Resident Doctors Association says hospitals including Starship and Middlemore are 91 doctors short and it is a similar situation throughout the country. Executive Secretary Dr Aimee England says the DHB's 'head in the sand' mentality could see patients paying with their health, or even worse - their lives. She says there is no slack in the system, and no additional safety net for both staff and patients. Dr England says the association has put the DHBs on formal notice and is forwarding its concerns to the Health and Disability Commissioner.

EMERGENCY DEPARTMENTS UNDER PRESSURE
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Hospitals around the country are under pressure as they cope with higher-than-usual patient numbers. North Shore Hospital in the Auckland region is bringing in extra cleaning and catering services as it deals with an overflow of patients in its emergency department. General Manager of Adult Health Services Rachel Haggerty says some patients are having to spend time in the corridor because of a shortage of beds. Across the bridge, Auckland City Hospital is also experiencing problems. Spokeswoman Fleur King says many patients are seeking treatment for concerns other than winter-related illnesses. At Wellington Hospital, a shortage of nurses is causing problems, with many on sick leave. The DHB says as a result, fewer beds are available in the emergency department. The hospital is asking people with non-urgent complaints to go to their GP first when possible. In Christchurch, a health group claims people are opting to go to the hospital's emergency department for treatment rather than go to their GP or after hour clinics because the cost of those services is too high. Eleanor Carter, from Health Cuts Hurt, says in some cases, it can cost $70 or more to visit an after hours clinic.

BURGER BONUS FOR BEEF FARMERS
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Beef exporters are working out how much they will reap once Burger King reopens its doors in Japan. The fast-food chain is re-entering the Japanese market after pulling out of the country when it lost a price war with McDonald's and other fast food chains in the 1990s. Part of the campaign is a promise to use only New Zealand beef in the burgers. Meat and Wool New Zealand chairman Mike Petersen says the value of the deal to exporters is still to be determined. The 113gm beef patties which will be used in Burger King Japan's Whopper burgers will be supplied by Kiwi Pacific Foods of Auckland. The Whopper burgers will sell for $4 and the Double Whoppers for $5.60. Burger King Japan is also using fish and cheese from New Zealand for its Japanese market. Burger King opened its first outlet in the up-market Shinjuku district of Tokyo earlier this month. Shinichi Kasa, president of Burger King Japan, says he believes consumers are willing to spend more money on good quality products. Japan is currently New Zealand's third largest export beef market in volume and second largest in value. In the 2005/06 year, New Zealand exported 42,280 tonnes of beef to Japan worth $277.79 million. US beef was banned from Japan in 2003 because of the detection of BSE in North America. This has meant the market share for New Zealand's beef market has more than tripled from 2.1 percent in 2003 to 8.5 percent in 2006. The US product only started reappearing in the market in relatively small volumes in the latter half of 2006 and is gradually increasing. Burger King first entered the Japanese market in 1996 and operated around 25 outlets in the Tokyo area before it pulled out in 2001 because it could not compete with other fast food companies.

HUNTINGTON'S DISEASE RESEARCH WINS AWARD
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An Auckland scientist has won an award for research that could lead to a cure for Huntington's Disease. Jessie Jacobsen from Auckland University has won the 2007 MacDiarmid Young Scientist of the Year Award. Huntington's affects one in every 10,000 people and the fatal brain disease robs victims of the ability to walk, talk, think or swallow. Jacobsen's research involved creating the human DNA responsible for Huntington's, and breeding it in sheep. The animals are then studied, for clues into how the disease progresses. The runner up in the awards was James Russell, also from Auckland University, who carried out research into the behaviour of rats which invade offshore islands.

Friday, 22 June 2007
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ICONIC PIECES OF NZ MAKE WORLD HERITAGE LIST
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Two pieces of iconic New Zealand have made it to a tentative list of World Heritage sites being forwarded to the United Nations. They are Auckland's volcanic field and the Kerikeri Basin which includes the Mission House and Stone Store. World heritage status is granted to sites deemed of outstanding universal value to humanity. The UN's World Heritage Committee will make a decision on the list when it meets in Christchurch next month.

FOLATE TO BE ADDED TO BREAD AS MANDATORY
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Adding folate to our bread is to become mandatory. The joint New Zealand and Australian Food Safety decision has been announced this afternoon. In Australia, the folic acid will be added to the flour. In New Zealand, it will be added during the bread-making process - leaving the flour free. It will become mandatory in two years. Organic and non-yeast breads will be exempt. Health Minister Annette King describes it as a triumph for humanity and common sense. She says evidence suggests it will reduce the incidence of spina bifida and hydrocephalus in new born babies by between 4 and 14 a year.

(I am baffled. Is this really the best way to provide medication to women of child bearing age? I read that the average woman would need to eat 11 slice of bread per day to obtain the right dosage of folate. - BH)

NZ FILM INDUSTRY FLOUNDERS
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New Zealand's film industry is in the doldrums if Department of Statistics figures are anything to go by. Total revenue for last year was just over quarter of a billion dollars, down $60 million on 2005 earnings. But there has been a 30 percent drop in the amount of foreign earnings - down from almost $600 million in 2005 to a little over $400-million last year. Feature films and short films remain the largest sector of the industry - and suffered a 33 percent decrease in revenue compared with 2005.

MERIDIAN'S LATEST WIND FARM EARNS KEEP
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Meridian Energy's latest windfarm at White Hill in Southland should prove its worth today. Spokesman Bob Grey says the site is closed and staff sent away, but the wind farm is working. He says a dusting of snow that froze meant that access up the hill became too much of an issue. He says it is being operated by remote control from their base at Twizel.

REWRITE OF RESERVE BANK ACT PROPOSED
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New Zealand First leader Winston Peters is proposing a re-write of the Reserve Bank Act. He has drafted an amendment to ensure that Reserve Bank Governor Alan Bollard must consider the dollar, export and economic growth among other indicators when he next adjusts interest rates. Mr Peters says it is also time for the government to share the responsibility for price stability by taking a realistic look at its own policy settings, like high immigration. He says that by sharing responsibility and amending the bank's policy target agreement, the economic prosperity and welfare of New Zealanders will be put above the interests of foreign currency traders.

MIXED REACTION TO PROTECT LAKESIDE
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There are mixed political reactions on Government moves to protect high value lakeside land areas. In a tweaking of Crown land tenure review, the Government's decided pastoral lease lakeside properties will be excluded from tenure review and will not be allowed to pass into private hands unless it is demonstrably in the public interest. The Greens believe the move is prudent and appropriate but believe the Government should have gone further and ensured other fragile eco-system areas were protected as well. The National Party is highly critical arguing it is an attempt to drive farmers out of the South Island High Country.

HYDRO ELECTRIC SCHEME GETS GO AHEAD
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A controversial hydro-electric scheme in Marlborough has been given the go-ahead - with conditions. Trustpower wants to extend its Wairau Valley Hydro Scheme. That means diverting part of the Wairau River through a series of canals. It will produce enough power to cover Marlborough's peak load and any extra will be exported to Nelson. Environment Commissioners have given the project the go-ahead, but first Trustpower needs to prove the change to river flow would be no more than occurs naturally, there will be no effect on water quality or on aquatic ecology, that it will be of no threat to two endangered birds and will have no adverse effect on the Southern Valley's Irrigation Scheme. The resource consent process is not over yet - submissions can now be made on those conditions.

SOE MERGER FOR MEAT INSPECTION INDUSTRY
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A law has been passed allowing the merger of two State Owned Enterprises involved in meat inspection services. The way has been cleared for Agriquality Limited and Asure New Zealand to join forces if their shareholding ministers agree it makes commercial sense. The move has been criticised by National which fears such a merger would create a monopoly, reduce competition, and potentially increase costs. State Owned Enterprises Minister Trevor Mallard says this will be countered by additional legislation which would prevent an abuse of market power should the merger occur. He argues the move is necessary to enhance shareholder value in the two SOEs and that it will enhance biosecurity response capability.

GOVT ACCUSED OF CLEARING HIGH COUNTRY FARMERS
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Federated Farmers claims the Government seems determined to force High Country farmers from their leasehold land. The Government decided last year to set high country rentals on the basis of amenity values such as view and landscapes, rather than a farm's stock-carrying capacity. Sixty-five high country rents will increase from an average of $5,125 per lease to $35,636 per lease, an average increase of more than 600 percent. Federated Farmers' spokesman Donald Aubrey says the announcement that some pastoral lease properties will be excluded from the tenure review is another punishing blow for families which have sustainably managed the high country for decades. He says firstly, farming families are being forced into tenure by huge rent hikes. Now he says the Government is stopping the tenure review process on any properties with highly significant lakeside, landscape, biodiversity or other unspecified values. Mr Aubrey says farmers are prevented from entering the tenure review process face ten-fold rent hikes at a time when returns from wool are very low. He says all the evidence points to the Government wanting farmers cleared from the high country.

ANTI-SMACKING LAWS COME INTO FORCE TODAY
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With the anti-smacking law now a reality, a parenting advisor believes there has been a shift in attitude towards such discipline over the decades. Section 59 of the Crimes Act allowing the use of reasonable force is officially repealed today. People can smack children to prevent or minimise harm to them but not for punishment. Police can use their discretion on whether to press charges if the actions are deemed "inconsequential." Founder of Parents Inc, Ian Grant, says the new legislation is likely to encourage parents who do smack their kids to think of other options. He says there has already been a change in the way society views smacking. "Twenty years ago, if your kid played up in the supermarket and you smacked them, people around you would smile and almost applaud. In fact, 50 years ago, if you didn't, that crowd would smack them!" Mr Grant says parents should still have the right to decide how they discipline their children but he acknowledges the new laws will prompt those who do smack their children to think of other options.

SIXTEEN TOO YOUNG TO VOTE SAY YOUNG NATS
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Voting at 16 is getting the thumbs down from the Young Nats. President Mathew Patterson says Green MP Sue Bradford is going a step too far with her plan to introduce a private members bill seeking to lower the voting age. He says 18 is the age when teenagers are deemed to have come of age and can buy alcohol, smoke and get married without consent. Mr Patterson believes that by 18, most young people are independent and ready to make informed choices.

Monday, 25 June 2007
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STRIP SCANNERS NOT COMING TO NZ AIRPORTS
----------------------------------------

The Aviation Security Service says it is not aware of any plans to introduce scanners which will strip people of their clothing at airports. The full body scanners are currently in place in Schiphol Airport in Holland and reduce those going through to naked imagery. Mark Everitt of Aviation Security says at the moment there is just no way they will be used at New Zealand airports. He says the technology is currently in an embryonic stage in terms of its specifics. Mr Everitt says the use of any such technology would need to be approved first by the Government.

NUMBER OF TEENAGE SMOKERS DROPPING
----------------------------------

Teen smoking rates have halved in the past eight years, according to a survey by anti-tobacco group ASH. It shows just over 14 per cent of Year 10 students admit to being smokers. That is down from 28 per cent in a similar survey conducted in 1999. More than half of those taking part in the recent survey say they have never smoked, an increase from 31 per cent in 1999. The study finds teenagers from homes where parents smoke are more likely to take up the habit.

KIWI SHARE AGREEMENT TO BE REVAMPED
-----------------------------------

The Government is revising its Kiwi Share agreement with Telecom. The contract was established when the company was privatised in 1990, and requires Telecom to provide phone services to remote areas at the same price as in towns and cities. Communications Minister David Cunliffe says under-investment in rural phone services has prompted him to review the arrangement. He plans to take a proposal to cabinet that would substantially revamp the Kiwi Share agreement.

STUDY COUNTS COST OF NURSE TURNOVER
-----------------------------------

Auckland University research has found 40 per cent of nurses leave their jobs each year and almost three quarters are replaced by new graduates or replacements from overseas. The study says hospitals spend $20,000 per leaving nurse on temporary cover costs, and overtime. Another $5,000 is spent on advertising and training costs. The worst turnover of nurses was in the lower North Island, with nearly 50 per cent moving jobs each year. National Party Health spokesman Tony Ryall says such high turnover threatens patient care and must be addressed. He accepts the lure of better pay and conditions overseas will always be there, but argues re-engaging nurses and doctors and getting them involved in running the health system would be a good step to help counter the problem.

ROTORUA DISTRICT COUNCIL FACING RACISM CLAIMS
---------------------------------------------

The Rotorua District Council is facing claims of racism. Te Arawa sub-tribe Ngati Uenukukopako filed a complaint to the Human Rights Commission today over the council's proposal to extend the runway at Rotorua Airport. Ngati Uenukukopako spokeswoman Hera Naera says a redress offer has been made to almost every property owner who would be affected by the extension, except the hapu. Ms Naera says the hapu is seriously considering tabling a request for a cultural audit of the council.

MINOR PARTIES DO POORLY IN LATEST POLL
--------------------------------------

The Greens and New Zealand First would be out of Parliament if the results of the latest poll carry through to the next election. Both parties are under the five percent threshold in this morning's New Zealand Herald-DigiPoll. United Future, Act, the Maori Party and the Progressives are also under five percent. However the likely retention of their electorate seats means they would be returned at the next election. National is on 48.2 percent, eight points ahead of Labour. The gap has closed from the 17 points it was last month. If the poll results are translated into seats in the House, National would still have enough to govern alone, with 63 MPs in a 123-seat parliament.

FOLIC ACID DECISION A PLUS FOR ORGANICS INDUSTRY
------------------------------------------------

A Wellington organics company believes more people will turn to organic bread, with plans to add folic acid to all but organic and flat breads. The Government is fortifying bread because the New Zealand diet lacks folate, which is needed to prevent babies being born with birth defects. Australia is fortifying flour directly. Marian Wood from Commonsense Organics says local demand for organic products is growing by around 20 percent a year and the folate decision is likely to further fuel demand. She says with so many substances being added to products, more people are looking for pure food.

ENVIRONMENTAL DAMAGE FROM "GREEN" LIGHT BULBS
---------------------------------------------

An energy consultant wants more thought to go into the environmental dangers of energy efficient light bulbs, which contain levels of mercury. Many power companies are recommending New Zealanders switch to the fluorescent bulbs to be energy conscious and save power. Australia is set to phase out traditional light bulbs in favour of the fluorescent bulbs, but concerns are being raised about the amount of mercury in them. Consultant Murray Ellis says a suitable system needs to be devised for collecting the used bulbs but he fears nothing will be done to address the issue unless the Government takes the lead. Mr Ellis fears the bulbs will end up polluting landfills.

Tuesday, 26 June 2007
~~~~~~~~~~~~~~~~~~~~~

CYF INVESTIGATES DRUG, DRINK, GUNS CLAIMS
-----------------------------------------

The head of Child Youth and Family says he is extremely concerned about allegations young offenders attending a departmental family course smoked marijuana, drank alcohol and were trained to fire guns. Ray Smith says if there is any truth to the allegations, it is a totally unacceptable situation. He has launched a full investigation into the Wairaka Kokiri Trust at Ruatoki, south of Whakatane. In the meantime, Mr Smith says CYF will not be referring any more young people to the programme, and two senior Youth Justice social workers will be placed on the programme to ensure the safety of young people already enrolled. He is promising a comprehensive investigation with full accountability and full disclosure. 

POLICE APPLICATION PROCESS TO BE LOOKED AT
------------------------------------------

Police Minister Annette King has requested independent expert advice on the testing and assessment of people who apply to join the police force. It follows a leaked report where a senior police college trainer expresses concerns about the growth in the number of substandard recruits, including one who had to be taught the alphabet. Mrs King says in the past few days, public issues have been raised that have the potential to undermine public confidence in the police. She says that is the last thing she wants. Mrs King says criticism linking changes in academic standards for recruits to the government's drive to add 1,000 more sworn police staff is ill-informed and mischievous.

JOURNALISTS RALLY AGAINST PARLIAMENT RULES
------------------------------------------

Parliament's press gallery is meeting in an attempt to get politicians to think again before they change the rules over coverage of the debating chamber. Proposed new rules would see a contempt of Parliament if what happens in the debating chamber is satirised, or if MPs are ridiculed of denigrated. Press gallery chairman Vernon Small says the contempt aspect is a worrying trend. He says in the past journalists have only been banned from the Parliamentary restaurant Bellamy's. Small says he stopped laughing when he saw the contempt of Parliament possibility in the rules. Prime Minister Helen Clark says the changes actually open up the coverage, allowing cameras to film the reactions of politicians. She is telling the media they have got little to worry about. Miss Clark says MPs will be able to be filmed saying silly things and journalists are getting a little over excited. Under the new rules, limited reaction shots will be allowed to be filmed, where previously TV cameras had to focus on whichever MP was speaking. Still photographers have been excluded in the changes. Speaker Margaret Wilson says still photographs cannot reflect the context of proceedings and the House could be disturbed if photographers were moving in the public gallery. The new rules have been published and will be debated on Thursday. Parliament's press gallery will make submissions on the rule changes.

(The new rules are farcical. If they don't want to be portrayed looking ridiculous, the simple solution is to avoid doing or saying ridiculous things. As it is, parliamentarians now come across as pompous and precious. The new rules seem contemptible to me. - BH)

RESPIRATORY DRUG ACCESS WIDENED
-------------------------------

Pharmac is spending $10 million over the next five years to widen access to a drug to treat chronic respiratory disease. Spiriva is currently prescribed to people with severe chronic bronchitis and emphysema, but from July 1 doctors will also be able to prescribe it to patients with moderate symptoms. Pharmac deputy medical director Dr Dilky Rasiah says it could lead to the number of people taking Spiriva doubling from 5,000 to 10,000 within five years. She is hoping it will also mean fewer people will need hospital treatment.

FEWER CONSULTANTS PROMISES ACC
------------------------------

The Accident Compensation Corporation is promising Parliament it will reduce its use of outside consultants. The corporation used 105 consultants between July 2006 and March 2007, at a cost of more than $5 million. Parliament's Transport and Industrial Relations Select Committee is questioning the amount, given that ACC expects to employ more full time staff this year. ACC says many of the consultants were used to set up a new claims management system and now that it is up and running the number of consultants hired will drop.

NEW MERCURY GUIDELINES
----------------------

Mercury Energy's new guidelines to help vulnerable customers are being praised by those who deal with poverty, but the family of Folole Muliaga believes some of the ideas will not work. The electricity provider says it will deal more sensitively with customers who have unpaid bills and will advise them about the help available from community services and government agencies. Customers will also be warned via a phone call a week before disconnection is due. The moves follow the death of Auckland woman Folole Muliaga who passed away a few hours after power was cut to her home because of an unpaid bill, disabling her oxygen machine. Auckland City Missioner Diane Robertson says it is about time the community dealt with the issue of poverty as a whole, instead of just through measures such as food parcels. She says often people do not know where to go for help when they cannot pay their bills so the guidelines are a great initiative. Muliaga family spokesman Brenden Sheehan says the guidelines should have been in place long ago, but he says some of them still need work. He says Mercury's plan to phone households which fall behind on paying their bill will not work, because hard-up families generally do not have a phone or it has already been cut off. Mercury Energy has cleared up confusion surrounding the contact it had with Mrs Muliaga before her death. Chief Executive of parent company Mighty River Power, Doug Heffernan, admits Mrs Muliaga's husband rang Mercury a month before power to the family's South Auckland home was disconnected. However he says the company could not take action as the account was in Mrs Muliaga's name, not her husband's. Mr Heffernan says unfortunately Mr Muliaga never called back, although he concedes Mercury also made no further phone contact.

FARMERS COPING WITH WINTER BLAST
--------------------------------

South Island farmers appear to be coping with the current snap of cold weather. During the weekend, many highways throughout the lower South Island were closed because of heavy snow fall and some areas of South Otago were without power when snow and fallen trees brought down power lines, leaving rural communities isolated. Federated Farmers Otago president Richard Burdon says the bad weather is nothing new for this time of the year and serves as a big wake up call that winter has finally arrived. Federated Farmers is keeping in touch with farmers to make sure they are coping but believes most were prepared.

FRENCH SECURITY FIRM CALLED "MAORI"
-----------------------------------

Prime Minister Helen Clark is concerned Maori are being exploited for commercial gain as a French security company names itself "Maori" because it likes the association with rugby. Miss Clark says intellectual property experts say it is one of many examples of international businesses exploiting indigenous cultures to promote their own products and services. She says it is clearly a misappropriation of Maori culture for commercial gain. The Government will lobby for a mechanism on the world stage to deal such issues.

(Parallels are being drawn with the French propensity to slap lawsuits on those who breach the "appellation controllé" rules and attempt to sell Champagne. - BH)

Wednesday, 27 June 2007
~~~~~~~~~~~~~~~~~~~~~~~

NZ MEAT BOYCOTT BY BRITISH MUSLIM PUPILS
----------------------------------------

There is a stir over New Zealand meat being used in school lunches in Britain. The Lancashire Telegraph reports Muslim pupils are being urged to boycott the lunches for fear the meat may not be halal. The local council of mosques has written to all mosques in the country urging parents to ensure their children stick to vegetarian options. The move comes after the Lancashire County Council switched meat suppliers earlier this month. It has responded by taking halal meat off all its school menus until everyone is satisfied.

(Bizarre. Halal procedures in the New Zealand meat industry are closely scrutinised by Malaysia which is more scrupulous about such observance than many other Islamic countries. - BH)

GOVT TO KEEP AIR NZ STAKE
-------------------------

The Government is committed to keeping a controlling share of Air New Zealand. Qantas has sold its stake, giving up on merger plans which have been knocked back by regulators. Air New Zealand's shares are increasing in value and the three quarter stake held by the Government is worth significantly more than it was when the Government bailed the airline out in 2002. Shareholding Minister Michael Cullen says the Qantas move creates no complication for the Government. He says there has been a fairly demand for Air New Zealand shares in recent times which has seen their value increase. His advice to the airline is to not be concerned at Qantas's withdrawal. Dr Cullen says while the Government is keen to see a cornerstone investor get involved in the company, it fully intends to remain a majority shareholder.

POLICE WANT TO FINGERPRINT WITHOUT ARREST
-----------------------------------------

Police want the right to fingerprint people they have not arrested. The proposal is part of a review of the 1958 Police Act. A series of meetings are being held around the country until the end of July, and fingerprinting was discussed at a meeting in Wellington last night. Superintendent Hamish McCardle is in charge of the Police Act Review and says it is about knowing who you're dealing with. He says the sad fact of life these days is identification fraud is more prevalent. Mr McCardle says police are also discussing being open to new technologies that come along, like eye scanners.

NZ IN THE BLACK
---------------

New Zealand was in the black in May, but only just. The country has posted a trade surplus of $9 million. The markets were expecting a figure of $75 million. Imports totalled $3.4 billion, down 1.2 percent on April and 11 percent lower than for the same time the previous year, due to a fall in oil products and aircraft parts. Exports were $3.35 billion, a 4.9 percent increase on April but down 7.9 percent on a year ago. The monthly surplus was 0.3 percent. Statistics New Zealand says it is usual for the month of May to show a surplus and the average trade balance for a May month over the last decade has been $234 million.

INTEREST RATES BEGIN TO BITE
----------------------------

People are beginning to hang on to their money, rather than spend it as interest rates start to bite, according to the latest Westpac-McDermott Miller survey. The report shows consumer confidence has fallen for the second consecutive quarter. Nine percent of those surveyed now expect the economy to worsen over the next year, compared with a more optimistic outlook in March of a net 10 percent forecasting an improvement. Brendan O'Donovan, Westpac's chief economist, says consumer spending is expected to slow from the hectic pace of the past six months, but he says it is not clear if that will stall enough to avoid the Reserve Bank raising interest rates further this year.

MORE BEING SPENT ON ROADS
-------------------------

Land Transport New Zealand is spending a record amount on roads over the next year. The agency has announced $2.4 billion in transport spending. Nearly $780 million will be invested in Auckland's land transport network, although projects will also be carried out in Wellington and most parts of the country will see roadworks during 2007/08. Paul Fitzharris, acting chairman of LTNZ, says as the country's economy grows, so too will demands from the commercial transport and business sectors, putting pressure on the land transport system and on the environment through increased vehicle emissions. He says maintenance for roads and state highways has risen by $44 million to $847 million for 2007/08. The increase is driven by growth in heavy vehicle traffic, the use of higher quality road servicing materials and greater provision for emergency works. However, the body representing road contracting companies says the new spending is still not enough. Chris Olsen, CEO of Roading New Zealand says given the fact the roading system has been built with low cost construction materials, a high maintenance costs regime is needed to keep it intact. He says currently, the maintenance of the network is under considerable pressure with motorists demanding higher quality road surfaces that reduce road noise and construction delays. "The number of heavy trucks pounding the network continues to increase, with more and more emergency remedial work needing to be carried out due to storms and flood damage." He says roading contractors now employ 50 percent more people than they did four years ago and says it is time the Government provided funding certainty for maintenance to ensure the roading network continues to operate at the levels expected by the public.

IMMIGRATION FAILING TO GET BASICS RIGHT SAY NATS
------------------------------------------------

The National Party says the immigration system does not seem to be working and tightening up procedures will benefit all. A report tabled in Parliament by Auditor-General Kevin Brady finds problems with the system's ability to detect identity fraud among immigrants, resulting in some people possibly being incorrectly admitted to New Zealand. Fifteen recommendations are made to improve the department, including formulating a plan on how best to specifically deal with detecting identity fraud. Mr Brady says a person using a false identity can pose significant risks to the country, including financial, terrorism, health, legal or criminal. The report has also found Immigration Service staff that are not given enough training. National MP Lockwood Smith the system is failing to get the basic rights. He says since August 2005, a couple of hundred cases have been referred to police, but on the other hand, there are plenty of good immigrants who are sick of being given the run around by the Department. Dr Smith says nearly 60 percent of cases submitted to the department in February are still to be allocated for assessment. Foreign Affair's Minister and New Zealand First leader Winston Peters warns that New Zealand will be infiltrated by identity fraudsters if changes are not made. He says the Immigration Service does not have the staff to address the issue adequately and he wants Immigration to be taken out of the Labour Department to become a stand-alone ministry with a new start in terms of how policy is implemented.

Thursday, 28 June 2007
~~~~~~~~~~~~~~~~~~~~~~

PSYCH PATIENTS SHARE HORRORS
----------------------------

The findings of an inquiry into the country's psychiatric institutions have been released today. The confidential forum heard from around 500 former patients and their families over almost two years who were institutionalised before the Mental Health Act was changed in 1992. Former patients talked of being scarred for life, having been forced to sleep in large dormitories with beds close together and spending days locked in dirty, noisy, smoke filled day rooms infested with cockroaches and rats. They report having no doors on toilets and being forced to line up naked to be hosed down before showering, or taking a bath in cold water already used by others. The forum was headed by Judge Patrick Mahoney, who emphasised patient suffering. Judge Mahoney said patients spoke of physical violence among patients and on occasion inflicted by staff, including instances of sexual abuse. The Government is now considering how to apologise and possibility compensate those affected.

KIWI MADE ADVERTISING?
----------------------

Officials insist they followed all the rules in awarding the marketing contract for the Buy Kiwi made campaign to Saatchi and Saatchi. Critics claim it is two-faced, as the ad company is largely overseas-based with directors in Auckland, Australia and London. The Ministry of Economic Development says mandatory rules for government departments mean they cannot exclude a tender simply because of the company's level of overseas ownership. It says 27 tenders were received and four short listed. The panel was unanimous in selecting Saatchi and Saatchi and the company has agreed the work will be done in New Zealand.

COUNCIL ACCUSED OF DISHONESTY
-----------------------------

The Auckland City Council is being accused of dishonesty about the money it receives from Metrowater. Mayor Dick Hubbard and senior council staff have fronted a Select Committee over concerns about Auckland's increasing water charges and their impact on ratepayers. National MP Nick Smith has taken the Auckland City Council to task over the hundreds of millions of dollars it receives in charitable donations from Metrowater. Legally Metrowater cannot return a dividend to the council, but Dr Smith says that is exactly what is happening. He says the public sees it as a crock and describes the practice as dishonest.

(Hmm. I wrote my comment earlier in this edition before I read this. I don't often agree with Dr Smith, but on this occasion, he is dead right - BH)

PARTY PILL BAN BY END OF 2007
-----------------------------

Party pills are to be banned. Associate Minister of Health Jim Anderton says BZP, the pills' active ingredient, and related substances will be given a class C1 classification after Cabinet agreed to his recommendation. The necessary amendments to the Misuse of Drugs legislation are likely to be passed by the end of the year. Mr Anderton says tobacco and alcohol do enough damage and it makes no sense to allow harmful goods like party pills available. "The research, analysis of submissions, advice from experts and agencies such as police, justice, customs and health all added up, in my view, to a ban." Mr Anderton is confident making BZP illegal will not create a black market or lead to increased use of other drugs such as methamphetamine. Mr Anderton says recent research carried out on university students gave an overwhelming result that students are wise enough to know methamphetamine is a dangerous drug. The new rules would bring fines of up to $500, or three months jail for possession. Suppliers, exporters or manufacturers would face up to eight years jail. Mr Anderton says Cabinet releases party pills have been legal for a number of years and it does not want to immediately criminalise anyone who has then in their possession for personal use. There will be an amnesty of six months from when the legislation is passed for anyone who has less than five grams of the pills for their own use. Mr Anderton says steps are also being taken in case pill manufacturers try to come up with alternative products to replace BZP. He says direction has been given to require manufacturers to prove substances are safe before they go on sale, which is a reversal of current practice.

(This is odd. If the proposed ban is based on toxicology it should apply immediately, and the businesses concerned should carry the risk. If on the other hand, it is based on someone's value judgement, it should be made plain whose, and when it will be applied to other drugs such as alcohol. - BH)

PIZZA HUT RESTAURANTS TO BE TAKEN AWAY
--------------------------------------

Dine-in Pizza Hut restaurants are to become a thing of the past. Chairman Ted van Arkel has told the company's annual general meeting they will progressively close down the 15 remaining Pizza Hut restaurants and move the business towards a takeaway and home delivery service. Six of the restaurants will be closed by the end of the year. The move follows today's announcement that Pizza Hut's owner Restaurant Brands has made a $3.6 million dollar loss, with the Pizza Hut operations taking the biggest hit. Earnings have more than halved as a result of growing competition. The company's biggest earner is KFC. It has taken $45 million from customers in just the first quarter of the current financial year, a ten percent increase on last year.

(I didn't know there were still any dine-in Pizza Hut restaurants in NZ. - BH) 

CURRENT ACCOUNT DEFICIT IMPROVES
--------------------------------

The current account deficit is getting smaller. The gap between what we spend and what we earn overseas eased to $2.2 billion for the March quarter. That is down from nearly $4 billion in the previous three months, and is lower than expected. Analysts say the worst of the deficits appeared to have passed. Finance Minister Michael Cullen says he expects the deficit to keep narrowing, thanks in part to the growing income from dairy exports. However he says there is still disturbing evidence about the country's appetite for debt, with high rates off offshore borrowing. The dollar rose on the back of the news.

DAIRY GIANT TAKING CLIMATE CHANGE SERIOUSLY
-------------------------------------------

Fonterra insists it is serious about tackling climate change. Barry Harris, chairman of the dairy giant's Sustainability Council, says a recent report has stated that the use of nitrification inhibitors by dairy farmers could see the agriculture sector meet its share of New Zealand's target for Kyoto emissions reductions. He says trials have shown inhibitors can bring reductions in nitrous oxide production of around 30 to 70 percent and an increase of up to 15 percent in pasture productivity. He says nitrification inhibitors also improve water quality although he admits there are questions about their potential in different soil types and conditions. Mr Harris believes New Zealand has the potential to be a world leader in the development of agricultural emissions mitigation technologies and says Fonterra will continue to contribute financially to the research. However, he warns that it is too simplistic to say that a silver bullet will reduce carbon emissions. Mr Harris says Fonterra is active in raising farmer awareness about ways of reducing emissions, such as following a nutrient budget, making energy savings on the farm and using nitrification inhibitors.

WARNING ABOUT PERFORMANCE-BASED BONUS
-------------------------------------

Small shareholders are warning of the dangers of performance-based bonuses, as a new CEO takes the helm at Telecom. The former head of BT Wholesale Paul Reynolds has been named as Theresa Gattung's replacement. The position comes with a base annual pay of $1.75 million plus a further $1.75 million performance incentive. Oliver Saint from the New Zealand Shareholders' Association believes Mr Reynolds' basic pay is in line with others in the same position, and does not object to it. However, he hopes company boards in general, take note of what happened at Sky City when CEO Evan Davies stood down with a $1.7 million exit payment, despite questions being raised about his performance. Mr Saint says companies must make sure such large amounts of money are not paid out if an executive does not meet performance requirements.

CLOSE WORK MATES BAD FOR BUSINESS
---------------------------------

A study into workplace relationships has found having a close friend at work can be a major distraction. Auckland University lecturer and psychologist Dr Rachel Morrison carried out the research which found friends were prone to excessive chatting, had too much fun and could not separate work from play. Dr Morrison says when faced with a work-related problem, many will prioritise their friendship over their responsibilities to their organisation. She says the research also found respondents experienced a great deal of anxiety about speaking to close friends about substandard work. Dr Morrison suggests people become wary of making a "best friend" of someone at work.

(Interesting. I must follow this up. I find it counter-intuitive. - BH)

TRAINS GOING OUT FURTHER
------------------------

Auckland commuters as far out as Helensville will be able to catch trains from this time next year. The Auckland Regional Council has just announced a network extension to the satellite area. ARC chairman Mike Lee says the council is not just focussed on revamping the lines in the central city. He says getting services out to rural areas is also on the council's agenda. Mike Lee is confident the service will be used, on the back of the highest patronage figures for the rail network ever.

DHB FINDS WAY TO KEEP STAFF
---------------------------

Hutt Hospital is confident it has found a way to retain and recruit nursing staff. The hospital is only the second outside the United States to achieve Magnet status, which is the highest level of recognition in nursing excellence. Hutt District Health Board nursing director Toni Dal Din says the hospital has worked for more than four years to reach the standard required and it has resulted in a significant reduction in staff turnover.

RB WILL ANSWER MONEY DEALING CRITICISMS
---------------------------------------

The normally reticent Reserve Bank will answer some of the criticisms of its recent foreign exchange dealings. The central bank (RBNZ) is suspected of intervening in the money markets three times this month in an effort to push down the value of the New Zealand dollar. After the latest incident, the New Zealand dollar shot to a 22 year high of 76.95 US cents but has eased to be trading at 75.77 USc this morning. Deputy Governor Grant Spencer will release an article on the issue and hints there could be more interventions if the bank again feels the New Zealand dollar is at unjustified levels. He says the bank will stick to its policy of not commenting publicly on each intervention but is rejecting suggestions taxpayers's dollars are being lost with the currency deals. He says the RBNZ is still holding foreign currencies it has bought with the kiwi dollars it has sold and when the exchange rate eventually falls they should rise in value.

Friday, 29 June 2007
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FARMER FINED FOR ILL TREATMENT OF CALVES
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MAF is welcoming the conviction of a Waikato farmer over the ill-treatment of calves. Ronald Burd drove the 12-day-old calves from Taupo to Hamilton, in torrential rain. As he was tired and hungry he left the calves in the truck overnight. When found, they were wet and coated with excrement. One was dead and eight had to be put down. Burd has been fined $3,000, ordered to pay MAF's court and veterinary costs. He has also been disqualified for a year from owning cows under six months of age.

LEVIES WIDENED FOR INTERNATIONAL STUDENTS
-----------------------------------------

State integrated schools are to be levied for their international students. Tertiary Education Minister Michael Cullen has announced schools will have to pay $900 for every international student they have enrolled. He says the levy is intended to recover costs generated by education quality assurance and language services for foreign students. The levy takes effect as of January 2008. It will mean state integrated primary and secondary schools are brought in line with state schools, which already pay the levy.

TOLL HOLDINGS WANTS TO BUY OUT NZ OPERATIONS
--------------------------------------------

Australian-based Toll Holdings wants to buy 100 percent of its New Zealand rail operations. It currently holds 84 percent which it bought in October 2003. It is offering $3 a share, which will mean a total of $99 million. Toll Managing Director Paul Little says the move means the company will be able to restructure and grow its New Zealand business more quickly.

WATERFRONT MAKEOVER FOR AUCKLAND
--------------------------------

A historic agreement has been signed in Auckland which will see a major rejuvenation of the waterfront. The Auckland City Council, Auckland Regional Holdings and Ports of Auckland have all joined forces to launch the makeover. The revamp will cover the area from the foot of the Harbour Bridge in the west to Teal Park in the east. The centrepiece is the 4.25 hectare "Sea and City Project" which will turn the Tank Farm into a mixed use urban village with a range of parks, plazas, shops and apartments alongside the marine and fishing industries. There has also a site set aside for an iconic building on the waterfront. The project will be carried out over the next 20-25 years. Auckland mayor Dick Hubbard says: "We have listened to the people of Auckland who have clearly said they want us to get on with providing greater access to the water's edge."

(What magnificent changes have occurred to that waterfront since I first went to Auckland in 1954. I have a little nostalgia for the lost ability of the public to wander freely through the port, though I can understand why it must be so. - BH)

GDP RISES ONE PERCENT
---------------------

Domestic demand is keeping the economy bubbling along. Figures for the March quarter show GDP rose one percent. Economic activity grew 1.7 percent for the year to March, down from two percent growth for the previous corresponding period. Analysts say today's figure is in line with market expectations. It is slightly above what the Reserve Bank was forecasting.

KIWISAVER ADVICE - "DON'T PANIC"
--------------------------------

A financial columnist is offering reassurances for people still trying to get their heads around KiwiSaver, ahead of its Sunday launch. From Sunday people will be automatically enrolled in the scheme when they start a new job, although they have two months to opt out. Financial columnist Mary Holm says existing employees can opt into the scheme at any time, this Sunday is the start date, not a deadline by which workers have to sign in. She says KiwiSaver can be joined at any time. Ms Holm says she feels sorry for employers who have to administer KiwiSaver. She says they should have been given more information than some have got. Ms Holm is still not sure whether KiwiSaver will be good for the country as a whole, but she believes it is good for individuals.

POLICE SUPPORT BZP BAN
----------------------

The police union supports the Government's plans to make so-called "herbal high" tablets illegal. Associate Health Minister Jim Anderton hopes to have new laws in place by Christmas banning the use of party pills which contain benzylpiperazine (BZP) and related synthetic substances. Police Association President Greg O'Connor says while the new laws will create more work for police, they are necessary. He says it makes a mockery when some drugs are legal and others illegal. Mr O'Connor believes legal party pills have been a gateway to hard drugs for many people and says children need to grow up with the mentality that all mind-altering drugs are wrong. Penalties for breaking the laws covering the use of BZP party pills will be the same as for cannabis with importers and manufacturers sentenced to eight years in jail and charges of possession for supply being laid against anyone caught with more than 100 tablets or 5g.

INCREASE TO PAID PARENTAL LEAVE
-------------------------------

The maximum parental leave payment will increase by nearly $20 a week from Sunday. The rate goes up from $372 to $391 a week and applies to all new applicants as well as those already receiving parental leave payments. Labour Minister Ruth Dyson says paid parental leave supports new parents at a critical time. She says with more than 60 percent of women in paid work, paid parental leave is helping to support the choices they are making about their families and their careers. Labour introduced paid parental leave in 2002 and increased it from 12 to 14 weeks in 2005.

REBOUND IN BUSINESS CONFIDENCE
------------------------------

Business confidence has rebounded, despite higher interest rates and the surging New Zealand dollar. The National Bank Business Outlook for June shows 37 percent of firms expect business conditions to worsen over the coming year, 11 percent fewer than last month. The survey highlights a slow economic growth rate of around 1.5 percent, but says the economy is remarkably resilient in the face of tight financial conditions. It believes Fonterra's payout to dairy farmers of $6 per kilogram of milk solids compared with this season's figure of $4.35/kgs is one reason for the rebound. The windfall for the economy is expected to be in excess of one percent of GDP. The bank says other reasons for optimism appear to be exuberance associated with reaching the final of the America's Cup, corporate tax cuts and rises in commodity prices such as forestry. A net 31 percent of respondents expect to increase prices over the coming year. The bank's Chief Economist, Cameron Bagrie, says the rising confidence is widespread and a welcome reprieve from the sharp fall last month.

LACK OF SKILLED WORKERS STILL A PROBLEM
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New Zealand businesses are the most worried in the world about the skills shortage. A report by international business consulting firm Grant Thornton has found that 60 percent of businesses say the lack of skilled workers is one of their biggest restraints. For Australia the figure is 59 percent and South Africa 58 percent. Grant Thornton spokesman Peter Sherwin says economic alarm bells should be ringing, as businesses may have to move overseas to find the skilled staff they need. He says the skills of migrants coming into the country are often not appropriate or not of the same level of those of migrants heading for Northern Hemisphere countries.


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