WYSIWYG NEWS - 15 April, 2008

[news at wysiwygnews.com]

Subject: 15 April, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

Late again. Sorry.

Saturday afternoon on the Whanganui River, with a light breeze 
from the West and bright sun glittering on the water. Exactly 
the sort of day for a trip on the paddle steamer, Waimarie. 
Note please that this is a Maori word, and has four syllables 
"why-mar-ee-eh" (emphasis on the second syllable). Technically 
it means "peaceful water" but more colloquially translates as 
"good fortune". For a river people, I can see that the two 
ideas are connected. It was certainly our good fortune to have 
such a lovely afternoon for our trip. More or less on 
schedule, the gangplank was withdrawn, and all but one mooring 
rope cast off. The skipper heaved on a long lever to engage 
reverse gear, then yelled "dead slow astern". Down below, an 
engineer shouted "dead slow astern" and opened a valve or two. 
With a heavy sigh, the two cylinders began to move the big 
side paddle wheels and the vessel pivoted neatly on the 
remaining rope  to point out into the stream. "All stop!" was 
called and echoed. The rope was cast off. The big lever was 
hauled into the position for going ahead, and we progressed 
through "half ahead" to "full ahead", and through the open 
hatchway above the boiler we could hear the sound of coal 
being shovelled expertly into the firebox. Thick black smoke 
roiled from the smartly painted red and black funnel as the 
vessel. The exhaust at full speed was rather like a steam 
locomotive at slow speed, a steady powerful panting. Another 
sound is almost hidden with the passage of the hull through 
the water. Each paddle wheel has feathering paddle blades, and 
the slap as each hits the water produces a most musical sound. 
Forgive the unavoidable pun, but it reminded me of the stories 
I read to darling little Maggie. She loves Beatrix Potter's 
stories, and especially those that include Jemimah Puddle-
Duck. Miss Potter always provides the sound effects, and the 
Puddle-duck family always go "pit-pat-paddle-pat, pit-pat-
waddle-pat" . So there I was on the Waimarie cruising up the 
Whanganui, listening, with a silly grin on my face as I 
thought how much Maggie would enjoy looking for the Puddle-
ducks.  We passed beneath the Dublin Street Bridge, and the 
panting of the engines reflected back on us greatly amplified. 
Similarly the railway bridge to Wanganui East and then we were 
on our way, but alas the skipper yelled "all stop" and the 
pant died away as we coasted towards a flotilla of scullers 
trying to get organized for a coxed fours race at Aramoho. 
Hanging from the jack staff at the bow of the Waimarie are 
some strange wooden profiles, like clumsy black Christmas 
decorations. In order from the top, a black ball, a black 
diamond and a black ball.  Any mariner instantly knows that 
this arrangement signifies a vessel with limited ability to 
manoeuvre. It has a long narrow hull, and though it has huge 
rudders, they are its only aid to turning. Eventually, the 
offending craft managed to get all their oars lined up and 
move out of the way and the journey resumed. I spent a little 
time standing on the bridge platform beside the skipper, who 
told me the river levels where the lowest he could recall in 
30 years on the river. In an amazingly short time, the town 
was left behind, and we continued our gentle run upstream into 
some lovely pastoral country. Upokongaro was our destination, 
and it took us just on an hour to get there. Anyone who has 
driven over the Parapara road (SH4 from Raetihi to Wanganui) 
will recall the little settlement with a pub, a restaurant, 
and a white colonial church. I always regarded it as the first 
outpost of civilization after emerging from the hills, and a 
signpost that we were at last close to journey's end. With a 
preparatory blast on the steam whistle, the ship was turned 
about and with consummate skill was berthed at the Upokongaro 
jetty. We were given an hour to explore, and were warned that 
the next blast on the whistle would signify imminent 
departure. We looked at the delightful little church, and then 
went to the restaurant down the road where scones with jam and 
cream were available with tea or coffee for a reasonable 
price. We sat in the shady garden and enjoyed this while still 
brushing soot from our hair. The downstream run was into the 
wind so the exhaust and smoke were blown astern. By now, since 
daylight saving is ended, the sun was low and the breeze was 
somewhat fresher, and there was more of a chop on the water. 
Nevertheless, aided by the current and the lack of rowers to 
block our passage, we made good time on the journey home, and 
were tied up at the jetty pretty much exactly three hours 
after we left. If you are in Wanganui I recommend this lovely 
journey (NZD$33 pp). Mole had it right when he said "There is 
nothing - absolutely nothing - half so much worth doing as 
simply messing about in boats". 

Enough for now. Sorry again for the missing weeks. 

----  
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 
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copyright in the news items reproduced remains the property of 
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Sponsorship this week is courtesy of Gary Head. Many thanks.
----  
On with the News. 

Monday, 31 March 2008
~~~~~~~~~~~~~~~~~~~~~

AIRPORT WORKER CHECKS INTRODUCED
--------------------------------

As of today, workers at the country's international airports 
will be randomly screened for prohibited items that could be a 
threat to aviation security. Under a direction issued by the 
Director of Civil Aviation Steve Douglas, Aviation Security 
Service officers will randomly screen workers who are within 
specially designated restricted areas, such as airside 
baggage. Mr Douglas says the new measure brings New Zealand 
into compliance with standards set by the International Civil 
Aviation Organisation.

BUSINESS GLOOM WORSENS
----------------------

There is gloomy reading in this month's National Bank Business 
Outlook survey. More than half of firms - a net 58 percent - 
expect business conditions to deteriorate over the coming 
year. The bank says confidence is weaker across all the five 
major subgroups including retailing, manufacturing, 
agriculture, construction and services. For the first time 
since 2006, firms' expectation of their own activity has also 
turned negative. A net six percent of businesses expect a 
deterioration in their own business over the coming year. The 
last time own activity expectations were so weak was in 1991. 
Employment, profit expectations, and investment intentions are 
all down and export intentions have fallen to levels seen 
during the Asian crisis of 1998. The bank's interpretation of 
the figures is that four conclusions can be drawn about the 
state of the economy. It says growth looks to have stalled, 
growth prospects are poor, and the pace of growth is slowing 
very quickly. It says the construction sector is leading the 
slowdown, with the building industry most pessimistic across 
activity, employment, profits, and investment.

MORE EVIDENCE OF HOUSING SLIDE
------------------------------

There is further evidence of a decline in the housing market, 
in building consent figures released by Statistics New 
Zealand. The number of new housing units approved in February 
was down about 10 percent on the previous year, at 1,874. The 
trend has been decreasing since June 2007. Apartment consents 
are down more sharply, with 173 new apartment units approved 
in February, 56 fewer than a year earlier. Nine of New 
Zealand's 16 regions reported lower figures, with the biggest 
falls being in Canterbury and Waikato. However the value of 
the work was slightly higher, at $615 million, an increase of 
$18 million on February 2007. Non-residential building 
consents issued in February 2008 were valued at $361 million, 
up $78 million from February 2007.

INTERVIEW ABOUT LOOKS AS MUCH AS SKILLS
---------------------------------------

Hopeful employees are being told to pay more attention to 
their personal image during a job interview. Job recruiter 
Robert Half believes failing to research a company and its 
culture is one of the biggest mistakes a job candidate can 
make. The company says people should try to dress the same way 
current employees do, to show that they could be a good fit. 
Robert Half says job interviews are only 50 percent about 
technical skills, while the other 50 percent is about whether 
the person shares the company's values and culture.

(As one who has made serious study of organizational culture, 
I assert that very few of the company's present employees 
truly share its values and culture. - BH)

BATTLE OVER GM CROP TRIALS GOES TO COURT
----------------------------------------

GE Free New Zealand is mounting a High Court challenge in 
Wellington today against field trials of genetically modified 
crops. Crop and Food Research won approval last May to field 
test Brassica crops such as cauliflower and broccoli, 
containing genes derived from a soil bacterium to control 
pests like white butterflies. GE Free spokeswoman Claire 
Bleakley says the approval did not have a clause to ensure the 
effects of the modification were tested. She says after 10 
years there is a very strong possibility there would be no 
indication of whether the genetic modification was safe.

PARTY PILL MORATORIUM CALL
--------------------------

The New Zealand Drug Foundation wants a voluntary moratorium 
on sales of all new non-BZP party pills. From tomorrow, it 
will be illegal to manufacture and sell BZP-based drugs, but a 
six-month amnesty is in place for personal possession and use. 
NZDF executive director Ross Bell says non-BZP party pills are 
already on the market, and it is not known how dangerous they 
are. He says retailers should take responsibility for their 
consumers, and stop selling the pills. Mr Bell says an 
independent report needs to be commissioned by the Government 
to determine the risks of non-BZP party pills.

TELECOM BREAK-UP PLAN APPROVED
------------------------------

The Communications Minister has approved Telecom's revised 
plan to break itself into three separate entities. David 
Cunliffe has just announced he has accepted the phone 
company's amended proposals. The break-up was called for in 
the 2001 Telecommunications Act. It is designed to improve 
competition in telecommunications, by making sure Telecom's 
competitors have an even playing field. Mr Cunliffe's approval 
comes right on a regulatory deadline set down in the Act, 
meaning today is officially ?Separation Day.? He says it has 
been one of the Government's priorities to deliver a more 
effective telecommunications sector, which will bring long-
term benefits to all New Zealanders. He says the break-up will 
improve market conditions to increase competition, innovation 
and investment. Under the Act, Telecom has to establish at 
least three stand-alone business units. One is to manage the 
operations of its network, a wholesale unit is intended to 
deal with other players in the market, and a retail unit will 
deal with customers. Telecom chief executive Paul Reynolds 
says today is a milestone for the company and for the industry 
as a whole, and paves the way for a new era in 
telecommunications. He says the company has hit the ground 
running, with a number of very large infrastructure investment 
projects in train. Mr Reynolds pointed to the commitment to an 
accelerated roll-out of a world-class fast broadband network. 
"Installation by our Chorus networks business of the 3,600 
roadside cabinets that are the building blocks of this network 
is happening now" he said. Work is also underway on other 
major investment programmes, such as the roll-out of a new 
mobile network. Mr Reynolds says Telecom's wholesale business 
has been operating in a separated way for two years, and its 
retail arm is ready to compete in the new environment, with 
more sophisticated products and services for business and 
domestic users. The Commerce Commission will make sure Telecom 
lives up to its promises. It has the power to take High Court 
action if the company breaches any of its undertakings. Fines 
of up to $10 million plus $500,000 per day for continuing 
breaches will be available.

COALITION CALL FOR MAORI PARTY
------------------------------

The Maori Party is still not ruling out holding coalition 
talks with both Labour and National, despite most voters 
thinking it would work better with Labour. A Colmar Brunton 
poll has found 64 percent of voters think a Labour-Maori Party 
coalition would work well, while only 22 percent think a 
coalition with National could work. Maori Party co-leader Pita 
Sharples admits his supporters differ in their views of which 
party to go with - if any. He says some are happy they have 
stayed on the cross benches, while others are saying it is 
time to be in Government. Dr. Sharples says the Foreshore and 
Seabed issue remains unresolved with Labour, while National 
still plans to abolish the Maori seats. Meanwhile, 
Progressives leader Jim Anderton is urging leaders of the 
minor parties to say before the election which coalition 
partner they want. He says those who vote for a minor party 
could have their vote abused if its coalition position is 
unclear. Mr Anderton says while keeping everyone guessing 
gives the minor parties more options, a person's vote should 
not be used in that way. Jim Anderton says his party will only 
go with Labour, while other minor party leaders are refusing 
to rule out going either way. Pita Sharples says it is not as 
simple as that, and in the case of the Maori Party, it will be 
their supporters who will tell the party which way to go. 
 
(I am at a loss to understand how the Maori Party could live 
with National's current policy of abolition of the Maori seats 
- BH)

TAX CHANGES FROM TOMORROW
-------------------------

Several key policies announced by the Government come into 
effect this week. Tomorrow - being April 1 - is the start of 
the taxation year, allowing the Government to open up its 
wallet. More than 500,000 workers have signed up to KiwiSaver, 
and tomorrow will be the day employers begin making a one 
percent contribution. The official company tax rate also 
changes tomorrow, from 33 to 30 percent. This is likely to 
save businesses hundreds of millions of dollars a year. And, 
those receiving a benefit or a student allowance will also 
receive more, with increases of just over three percent coming 
into effect.

Tuesday, 1 April 2008
~~~~~~~~~~~~~~~~~~~~~

NZ WINTER GAMES PLAN STEPS UP
-----------------------------

The next step has been taken in New Zealand's bid to launch 
its own biennial Winter Games. August and September 2009 is 
the set date for the inaugural event in the Central Otago 
region and the Pacific Rim country delegates have now visited 
and given the event their endorsement. Winter Games New 
Zealand CEO Arthur Klap says two factors are key to its 
success. He says it has to be highly competitive and northern 
hemisphere athletes have to be keen to practice in New Zealand 
conditions six months prior to the Vancouver Olympics. The 
event will not have sports requiring major infrastructure 
investment such as bobsled, ski jump and skeleton. They are 
working off a four million dollar budget and a long term host 
broadcaster is expected to be announced in around a fortnight.

LAKE TAUPO AT LOWEST LEVEL IN FIVE YEARS
----------------------------------------

While there has been rain in recent days in parts of the 
country, Taupo residents are being warned they have to start 
saving water or face the possibility of restrictions. The 
drought has left Lake Taupo at its lowest level in five years. 
Predictions the current dry spell will continue into Autumn 
are worrying the Taupo District Council. It says Lake Taupo 
flows into the Waikato River and provides water downstream to 
industries, farmers, towns and cities. Infrastructure Services 
Manager Ted Anderson is asking people to undertake simple 
savings measures such as turning off the tap while cleaning 
their teeth and not watering the garden every day.

AUCKLAND AIRPORT POSTS $47.59M HALF-YEAR PROFIT
-----------------------------------------------

Auckland International Airport has posted a $47.59 million 
profit for the six months to December 2007. The company's 
interim result shows a 7.9 percent rise in revenue to more 
than $172 million. Passenger numbers were also up 4.9 percent 
on the same period last year. An interim dividend of 5.75c a 
share will be paid, which is 2c more than last year. AIA 
chairman Tony Frankham says the increased dividend is to 
utilise surplus imputation credits that will be lost if the 
current takeover plan by the Canadian Pension Plan is 
successful.

VICTIM SUPPORT BACKS COMPO SCHEME
---------------------------------

Victim Support believes making criminals pay a $50 levy to 
their victims would help address a compensation shortfall. 
National has unveiled new initiatives which include upgrading 
the victim notification register, establishing a victims' 
compensation scheme, as well as a review of the Victim Rights 
Act. Victim Support's acting general manager Heather Verry 
says ACC will only pay out if the victim has been physically 
injured. She says the wider victims of homicide only fit the 
criteria for getting medical and counselling expenses paid if 
they witnessed the killing. Ms Verry says most victims are 
financially affected by the crime, and cannot afford to take 
time off work or pay for court costs. 
 
(I think it is a nonsense. The size of the existing unpaid 
fines mountain tells us that criminals do not pay fines, let 
alone levies. - BH)

PETROL AND DIESEL ON THE RISE AGAIN
-----------------------------------

Motorists will have to dig even deeper into their pockets to 
fill up their vehicles. BP is leading the latest fuel price 
rise. Regular 91 is up two cents to 179.9c. Diesel prices have 
increased by six cents to 138.9c. Caltex has also hiked up its 
diesel price by four cents to 136.9c per litre but has left 
petrol prices unchanged. The Taxi Federation is calling for 
road user charges on small diesel vehicles to be scrapped in 
the wake of the higher fuel prices. Executive director Tim 
Reddish says taxi drivers cannot continue to absorb escalating 
costs.

(City prices at the time of writing are $1.789 for a litre of 
91 octane. - BH)

MURDER RATE DROPPED 10 PERCENT IN 2007
--------------------------------------

New Zealand has recorded its lowest murder rate in a decade. 
Police have released crime statistics for 2007 which show 
there were 45 murders, which is a ten percent drop on 2006. 
There were 6,000 more reports of violent crime than the 
previous year, of which 5,800 were family violence offences. 
Reports of domestic violence jumped by 31.5 percent. Assistant 
Commissioner Grant Nicholls says the increase in family 
violence being reported is not surprising, given the huge 
amount of publicity aimed at reducing tolerance. Overall, 
there was a small increase in the total number of offences 
reported in 2007, but the rise in the country's population 
means the number of offences per head actually dropped 
slightly. Key points: New Zealand has had the lowest murder 
rate for a decade. There were 45 murders in 2007, and 41 
resolved in the same year. In the Violence Offence category, 
there were fewer offences of homicide (10 percent fewer), 
robbery (7 percent fewer) and kidnapping (2 percent fewer) in 
2007 than in the previous year. There were more group 
assemblies (26 percent), assaults (14 percent) and 
intimidation and threats (11 percent). The resolution rate for 
violent crimes has remained steady and sits at 81.3 percent 
for 2007. There was a 1.7 percent increase in reporter sexual 
offences, but the resolution rate for sexual offences rose 2.4 
percent to 62.5 percent. Drugs and anti-social offences 
increased 7.4 percent in 2007. Dishonesty, which makes up 53% 
of all offences, reduced 5.1 percent in 2007. Recorded 
property damage increased 8.5 percent in 2007.

UNIONS LOOK FOR MORE LIVING STANDARD IMPROVEMENTS
-------------------------------------------------

Unions say the increase in the minimum wage shows New Zealand 
is going about lifting living standards the right way. From 
today the minimum wage increases from $11.25 to $12 an hour. 
At the same time the company tax rate is being cut from 33c to 
30c in the dollar. CTU president Helen Kelly says there has 
been great progress for workers over the past decade. She says 
they want now to see improvements in areas like paid parental 
leave, protections for casual workers and efforts to tackle 
excessive hours and low pay.

PROPERTY SALES LAWS BEING REVIEWED
----------------------------------

The Law Commission is reviewing the laws governing the sale 
and transfer of property. The Commission is examining the Land 
Transfer Act 1952 with a view to modernising it. It hopes to 
have a final report ready by the end of the year.

NEW ARRIVALS AREA AT AIRPORT
----------------------------

A new international arrivals area is open for business at 
Auckland International Airport. Today's opening of the 
facility marks the next stage of the airport's expansion plan 
that will eventually handle 25 million passengers a year by 
2025. Airport chief executive Don Huse says the new arrivals 
area features New Zealand imagery reflecting the journey 
across the ocean. He says it is intended to create a great 
first impression and make visitors or locals returning home 
feel more welcome.

MORE OUTDOOR AWARENESS NEEDED FOR TOURISTS
------------------------------------------

Land Search and Rescue believes more needs to be done to 
educate tourists. Last summer overseas visitors made up 35 
percent of wilderness rescues. Board Director Phil Melchior 
says overseas visitors are often ill-prepared, do not 
understand the system and get into trouble. "We do think that 
there are some basic precautions that would make things much 
easier if people took them and primary amongst them is having 
someone that's looking out for you and declaring your 
intentions." Mr Melchior says making tourists pay for their 
rescues is not the answer and the key is making sure visitors 
do not need to be rescued in the first place.

(The lack of deadly animals misleads people into perceiving 
the outdoors as a benign place. It has its beauty but if you 
don't give it proper respect, it will kill you. - BH)  

RIVAL CLAIMS BETTER PHONE DEALS LIKELY
--------------------------------------

TelstraClear claims consumers can expect an explosion of 
better deals within the telecommunications market. Telecom is 
breaking into three separate network, wholesale and retail 
divisions. Spokesman Matthew Bolland says the changes will 
transform the sector and mean companies will not be restricted 
to offering only services that are similar to Telecom's. He 
says Telstra Clear's been gunning for the separation for more 
than a decade. Keith Davidson from the Internet Society says 
if Telecom does its bit, it should provide a robust framework 
for broadband.

RAFT OF NEW POLICIES TODAY
--------------------------

The minimum wage is increasing to $12 an hour from today as 
part of a raft of new policies coming into effect on the first 
day of the financial year. The 75 cent rise in the minimum 
wage will affect around 140,000 workers. Today will also spell 
the end of the youth wage for some younger workers. Sixteen 
and 17-year-old workers will now be paid the same as adults, 
provided they have worked at least three months, or a total of 
200 hours. The company tax rate reduces from 33 percent to 30 
percent and business will receive 15 percent tax credits on 
research and development investments. The 500,000 people who 
have signed up to KiwiSaver will now get an employers 
contribution of one percent rising to four percent by 2011. 
Employers will get a government tax credit of up to $20 per 
week per employee in the scheme. KiwiSaver specialist Mary 
Holm warns some companies are still coming to grips with the 
new system and blames the Government for rolling it out so 
quickly. She says there could be delays with the extra money, 
but believes no one will miss out. The annual indexing for 
inflation takes effect for benefits and allowances, increasing 
payments by 3.1 percent. The 510,000 Superannuitants or those 
on the Veterans Pension, will have their pensions indexed to 
66 percent of the average ordinary wage. Meanwhile, party 
pills containing BZP are now off the menu. New laws banning 
the ingredient came into force at midnight, however there is 
an amnesty period of six months in place which allows for 
personal use.

Wednesday, 2 April 2008
~~~~~~~~~~~~~~~~~~~~~~~

CALCULATING ERROR CAUSED GOVT ACCOUNT BOTCH-UP
----------------------------------------------

A simple calculating error has been found to have caused a 
$600 million dollar accounting mistake in the Government's 
accounts. Treasury and IRD officials revealed a $400 million 
deficit in the Crown accounts last month, before having to 
admit they had got it wrong. The officials realised quickly 
they had made a major mistake and a week later they revised 
the figures to show a $200 million surplus A report has just 
been released into the error, with both Treasury and IRD 
officials confident they now have measures in place to ensure 
it will not happen again. The investigation has found Inland 
Revenue used wrong data calculation and there were no systems 
in place to pick it up. Despite the embarrassment, no one 
appears set to lose their job. 
 
(There is an unpleasant side to the media in NZ. It is always 
looking for someone whose fault it is, an someone to be fired. 
I see it as akin to the bloodlust of the Coliseum. - BH)

MP HOT UNDER COLLAR ABOUT ASIAN IMMIGRATION
-------------------------------------------

As New Zealand First contemplates whether it will sign the 
Free Trade Agreement with China, the party's deputy leader 
Peter Brown has hit out at Asian immigration. Mr Brown says 
Statistics New Zealand figures out today show the folly of the 
nation's immigration policies, which he says his party has 
been warning about for years. The Asian population here is set 
to rise to 790,000 by 2026. Mr Brown says he is particularly 
concerned that Asians will outnumber Maori. He says "it is a 
bit rich when the original inhabitants get shoved further down 
the pile because successive governments keep throwing open the 
doors to this country."

(I suspect that the Maori wouldn't mind backdating any 
legislation to prevent their being outnumbered by at least two 
hundred years. The irony of Mr Brown's strong English accent 
is not lost on most, either. - BH)

NEW CRIME SQUAD WILL INCLUDE SFO STAFF
--------------------------------------

Details have been released on the new organised crime agency 
to operate within the police. The Organised and Financial 
Crime Agency New Zealand is to become operational in July. It 
will amalgamate the Serious Fraud Office's expertise with 
police efforts against organised crime activity. Police 
Minister Annette King says it will create a new capacity to 
combat corporate fraud and sophisticated crime groups. Some of 
the SFO's old powers will be carried over to the new group, 
however they will be subject to judicial oversight and will 
not have the power to override a suspect's right to silence.

BUSINESSES URGE SLOWDOWN ON EMISSIONS TRADING
---------------------------------------------

Big business is urging a go slow on the Government's proposed 
emissions trading scheme. The Greenhouse Policy Coalition, 
representing large energy using companies, has put its case to 
Parliament's Finance and Expenditure Committee this morning. 
Spokeswoman Catherine Beard says they agree efforts need to be 
made and that a price-based mechanism must be part of the 
policy mix. However she says the Government's proposing the 
toughest and most expensive option which other countries are 
unlikely to follow.

MAORI, POLYNESIAN, ASIAN POPULATIONS GROWING
--------------------------------------------

New Zealand's Maori, Asian and Pacific populations are 
projected to continue growing faster than the European 
population. Statistics New Zealand says the Maori population 
could increase by an average of 1.4 percent a year, Asian 
population by 3.4 and Pacific population by 2.4 percent. The 
Asian population is expected to climb to 790,000 by 2026. 
Statistics NZ says the rapid growth of the Asian population is 
mainly driven by migration. The Maori and Pacific populations 
are driven by births, which can be attributed to higher 
fertility rates and a young age structure.

THE GASES BEHIND ROTORUA'S SMELL TO BE STUDIED
----------------------------------------------

An international study looking at the gases famous for 
Rotorua's smell is about to be launched. Researchers from 
Otago and California will look at the possible health effects 
of hydrogen sulphide gas. Professor Julian Crane from Otago 
University says the study will also look at the current 
occupational exposure standards in Rotorua. The research 
headquarters will be based at the Rotorua International 
Stadium. The study is being funded by the US National 
Institute of Environmental Health Sciences.

HOSPITAL CONTRACTORS STRIKING
-----------------------------

More than 800 food workers and cleaners in hospitals are 
striking today, after their employer failed to follow through 
on a pay increase agreed upon last year. The Service and Food 
Workers Union and Spotless Services have been in discussions 
since July. It says the parties agreed to a base wage rate of 
$14.25 an hour, but union spokeswoman Jill Ovens says Spotless 
is going back on its word. She claims the contractor made a 
miscalculation and does not want to pick up the shortfall. The 
DHBs say essential cleaning, catering and orderly services 
will still be provided for, despite the strike. Spotless has 
contracts in 18 hospitals, mostly in the North Island.

HIGHEST MEDICAL STAFF TURNOVER IN WELLINGTON
--------------------------------------------

Capital and Coast has the highest turnover of medical staff of 
all the country's DHBs. The latest Hospital Benchmark Report 
shows 4.7 percent of the Wellington DHB's staff quit in the 
last three months of last year. Wairarapa was second worst 
with 3.84 percent and Hutt Valley third on 3.8 staff turnover. 
The national average was just over three percent. Capital and 
Coast has been hit by a string of crises including problems 
with child cancer, anaesthetics and maternity services. The 
Health Minister has installed trouble-shooter Sir John 
Anderson as chairman and a Crown monitor.

CHINA DEAL OPPOSED BY MAORI PARTY
---------------------------------

The Maori Party is opposing the free trade agreement with 
China. The move puts the party in line with the Greens, as the 
only two which will vote against the deal when Parliament 
debates it. New Zealand First is also withholding its support 
until it sees details of the agreement. The Government admits 
it is surprised about the Maori Party's last minute decision. 
Trade Minister Phil Goff says he was told last Friday by co-
leader Pita Sharples that the Maori Party would support the 
agreement and only found out about the change of position last 
night. Maori Party MP Hone Harawira says his party cannot 
support a deal it has not seen the details of. He is also 
concerned about China's human rights and environment records 
However, Trade Minister Phil Goff says he is confident the 
Maori Party will change its mind once it sees the agreement 
next Monday. He says the FTA has benefits for Maori businesses 
and workers. Prime Minister Helen Clark is leading a 
delegation of 150 to Beijing for the signing of the FTA on 
April 7. The group includes Mr Goff and business and local 
government representatives.

Thursday, 3 April 2008
~~~~~~~~~~~~~~~~~~~~~~

BNZ SAYS HOUSE PRICES WAY TOO HIGH
----------------------------------

BNZ economists are warning house prices are overvalued by 30 
percent. But they say that does not mean they will drop by 
that much. BNZ chief economist Tony Alexander believes prices 
will fall about 10 percent, and there is a risk they will go 
further. He says buyers know the market is dipping, and have 
been waiting for this situation since 2001. Tony Alexander 
says they are sitting tight, and when interest rates fall, 
buyers will appear. In the meantime, sellers - whose 
properties are not moving - are lowering prices just to get 
rid of them.

SPOTLESS SAYS DHBS HAVEN'T COUGHED UP CASH
------------------------------------------

The service company which employs hospital workers wants to 
involve a third party in its talks with District Health 
Boards. Spotless employees went on strike yesterday, saying 
the company has not paid them the wage increase they have been 
promised. But Spotless spokesman Peter Jennings says the DHBs 
have contributed $1.8 million less than they said they would, 
when it was agreed the whole sector would get a pay rise. He 
says because of the shortfall, Spotless cannot give its staff 
a pay rise. Mr Jennings says Spotless would like a third party 
to assess the situation and make a judgement.

BIOFUELS BILL GETS THUMBS DOWN FROM COMMISSIONER
------------------------------------------------

The Parliamentary Commissioner for the Environment is 
recommending the Government's Biofuel Bill should not be 
passed. The legislation is designed to compulsorily introduce 
biofuels. Jan Wright says potential for production of domestic 
biofuel is limited and to import it from overseas would damage 
the country's clean green image. She says there is a strong 
case for waiting for the development of second generation 
biofuels, before getting serious about the idea. Dr Wright 
also says focussing on electric vehicles could be a better 
option.

PHARMAC ORDERED TO RECONSIDER HERCEPTIN DECISION
------------------------------------------------

A High Court judge has told Pharmac to reconsider its decision 
on the funding of the cancer-fighting drug Herceptin. Justice 
Warwick Gendall has just released his decision after a hearing 
at the High Court in Wellington last month. Eight breast 
cancer patients had asked for a judicial review of Pharmac's 
decision to fund a nine-week course of Herceptin, rather than 
a full year course. The group say the year-long course is 
internationally accepted as appropriate and is funded by 
countries including Australia and the US, so it should be 
funded for all New Zealand women. 

NZ NEEDS SKILLS ASIANS OFFER SAYS BUSINESS
------------------------------------------

New Zealand First is being accused of vote grabbing after its 
latest attack on Asian immigrants. Deputy leader Peter Brown 
says New Zealand is being flooded with Asian people without 
any guarantees they will integrate into New Zealand society. 
New Zealand Chinese Association spokesman Kai Luey is puzzled 
by the comments. He says the Maori population is growing, but 
many are going to Australia. Mr Luey says the space needs to 
be filled and Asian people feel New Zealand still has much to 
offer. The Auckland Chamber of Commerce says Mr Brown's 
comments are a cheap attempt to capture headlines and votes. 
CEO Michael Barnett says such judgemental remarks are shameful 
political posturing and unnecessary. Mr Barnett says the 
contribution made by the Asian community to the skills 
shortage and investment has been huge.

LOMBARD FINANCE IN TROUBLE
--------------------------

Another finance company is in trouble. Lombard Finance and 
Investment Limited is seeking a moratorium on paying 
investors. The move means all payments on capital and interest 
to investors are suspended. The company manages a mortgage 
book of more than half a billion dollars. It says by the end 
of March it owed investors $127 million. The company is 
holding a meeting of secured debenture holders. It says the 
proposal to seek a moratorium is not expected to have an 
impact on Lombard Group's other businesses. Through its 
wholly-owned subsidiary, Lombard Mortgages holds the Tasman 
Mortgage Group. Last December, it acquired United Home Loans 
from Hanover Group, which included a $230 million mortgage 
book. 
 
(My aversion to financial risk has kept me clear of such 
"investments" , and will continue to do so. - BH)

CHILD CANCER UNIT GETS MUCH-NEEDED SPECIALISTS
----------------------------------------------

The future of the facility was under pressure last year 
following the resignation of specialists. The specialists have 
now been replaced by two overseas recruits. Health Minister 
David Cunliffe says it great news for children and parents in 
the Wellington region. He notes both are considered top 
appointments and one is acknowledged as an international 
leader in the field of child leukaemia.

LAWYERS PREPARE FOR BENEFIT FROM FLAWS IN EFA
---------------------------------------------

A law professor is predicting the Electoral Finance Act will 
open up a whole new income stream for lawyers. Labour has 
already received a warning for a breach of the law over a 
booklet We're Making a Difference, which was distributed at 
Waikato University. The Electoral Commission says Labour did 
not have the proper authorisation. The booklet was paid for by 
parliamentary funding and outlines some of the Government's 
achievements. National claims billboards and posters erected 
recently by three political parties who supported the law, 
have also broken it. Professor Bill Hodge says there is 
considerable uncertainty about the legality of election 
expenses and many disputes will be heading to court. He says 
there are going to be a lot of legal arguments and he knows of 
law firms gearing up for a "bonanza" to argue the finer 
points.

KIWISAVER PUT PRESSURE ON IRD
-----------------------------

The pressures of implementing KiwiSaver appear to have been 
partly to blame for Inland Revenue's errors in the 
Government's accounts. A review has found IRD staff were 
mostly at fault in the release of the accounts last year which 
went from a $400 million deficit to a $200 million surplus. 
The change, in just one week, was due to a calculating error 
which has now been rectified. IRD Commissioner Bob Russell 
says the problem came at a time when the organisation was 
implementing new programmes. He says it was not the case that 
the department is under-resourced but losing one or two people 
to another project had a significant impact. Mr Russell says 
the IRD staff involved will be disciplined, but will not lose 
their jobs.

FLU VACCINE TESTED
------------------

The effectiveness of the flu vaccine will be put to the test 
in one of the largest clinical trials for influenza the 
country's seen. Scientists are recruiting 7,500 people from 
Australia and New Zealand for the trial which will be 
conducted over winter. Auckland principal investigator Rod 
Ellis-Pegler says around 1500 participants are needed from 
Auckland, Dunedin and Christchurch. Two thirds of the people 
will get the vaccine and a third will get a placebo. The 
volunteers will be monitored over winter. Dr Ellis-Pegler says 
the participants report to investigators if they get any flu 
symptoms. In 2001, influenza and pneumonia killed more than 
412 people. The Government provides free flu vaccines to 
people aged over 65 and at risk groups under the age of 65.

Friday, 4 April 2008
~~~~~~~~~~~~~~~~~~~~

SCHOOLS URGED AGAINST BECOMING FOOD POLICE
------------------------------------------

The Heart Foundation says occasional treat foods should be 
included in any healthy diet. It comes as an Auckland primary 
school has taken birthday cake off the menu. Oteha Valley 
School says it is to comply with the Government's new healthy 
food guidelines. Heart Foundation medical director Professor 
Norman Sharpe says schools have an excellent classification 
system under the headings of 'everyday', 'sometimes' and 
'occasional'. He says they should be able to accommodate 
occasional treat foods for birthdays. Professor Sharpe says it 
would be disappointing if schools banned birthday cakes 
altogether. He recommends schools adopt a collective approach 
if they are suffering from too many cakes, as it is important 
that children enjoy occasional treats. 
 
(Whereas I agree with those who think the ban a bit heavy 
handed, it doesn't take a mathematical genius to realise that 
larger schools could well be seeing a birthday cake every day. 
- BH)

QUALIFIED IMMIGRANTS STRUGGLE TO FIND WORK IN NZ
------------------------------------------------

New Zealand is proving to be a difficult place for highly 
skilled immigrants to get jobs. Massey University researchers 
have found immigrants who are professionals in their home 
countries, have trouble being accepted by recruitment 
consultants here. Human Resource Management lecturer Jacqui 
Campbell says one participant sent a CV to a consultant with 
her real name and was rejected. She says the participant then 
put in a more English-sounding name and got an interview. Ms 
Campbell says other barriers for immigrants include language 
skills, accents and skin colour. The lecturer says the reality 
is immigrants may not be able to get a job at the same level 
and they need to be made aware of it. She says immigrants need 
to have realistic expectations.

HOUSE SALES SLUMP
-----------------

House sales have slumped to a 10 year low, but prices are 
holding. Barfoot and Thompson's March sales figures shows a 56 
percent drop in sales to just 632 compared with over 1,400 in 
March last year. Managing director Peter Thompson says the 
average sale price is now over $522,000, a rise of 5.2 percent 
compared to February. He says taken over the last four to five 
months, there has been a slight decrease but not the 30 
percent that some experts are predicting

NEW PROJECT WILL FOLLOW NEWBORNS INTO ADULTHOOD
-----------------------------------------------

The Government has launched a new study following children 
into adulthood. More than 7,500 expectant mothers from the 
Auckland and Waikato regions will be asked to take part during 
their pregnancies. Their child's life will then be followed 
through birth, childhood, adolescence and onwards into 
adulthood. Social Development Minister Ruth Dyson says $7.5 
million has been committed to get the research started, with a 
further $6 million to be allocated over the next two years. 
She says it is one of the most significant social science 
research projects ever undertaken in New Zealand.

HIGH COMMODITY PRICES IN UNUSUAL CYCLE
--------------------------------------

There is good news on the export front with commodity prices 
continuing to rise, but the current cycle is unusual. The ANZ 
Commodity Price Index rose two percent to 218.2 in March, 
taking its annual increase to 26.9 percent. Dairy products, 
venison, aluminium and beef are fetching high prices. Business 
correspondent Roger Kerr says the situation is one of the 
great contradictions of the New Zealand economy . "Normally in 
commodity booms, we all do well but right at the moment we're 
not, because of high interest rates, a high exchange rate and 
excessive partying in the property market in the last four or 
five years." Mr Kerr says while export commodity prices are 
hitting record highs, the economy appears headed for a 
recession

$400 MILLION TREATY DEAL ON THE CARDS
-------------------------------------

One of the country's largest-ever Treaty of Waitangi 
settlements is expected to come a step closer to fruition 
today. The Government and central North Island Maori working 
on a deal over allocation of forestry assets which is expected 
to dwarf the $170 million fisheries package. Treaty 
Negotiations Minister Michael Cullen is receiving a proposal 
from the Central North Island Iwi Collective, aimed at 
resolving their historic claims. Some estimates of the 
commercial value of the forestry land and forest rentals have 
put the potential value of the deal at up to $400 million.

STUDENT ALLOWANCE INCREASE "PATHETIC"
-------------------------------------

The Government is being accused of trying to pull the wool 
over tertiary students' eyes. It follows an increase in the 
student allowance of just over three percent, which the 
Government claims will benefit around 60,000 students. Union 
of Students' Associations co-president Paul Falloon says the 
increase amounts to an extra $5 a week. He says it does not 
reflect the cost of living, and most students cannot even get 
the allowance anyway. Mr Falloon says the increase is 
insulting. 
 
(The silliest aspect of student funding is that provision that 
says the student's eligibility for the allowance is tied to 
their parents' income until they are 25 years old. - BH)

BEAN COUNTERS BELIEVE TAX FIGURE'S RIGHT
----------------------------------------

The Government's bean counters are confident they have their 
numbers right, with the latest Crown financial statements 
showing a $700 million drop in tax revenue. Treasury and IRD 
were left red-faced last month after making a $600 million 
mistake on the Government's tax take. However officials are 
adamant they have their sums right this time and are blaming 
$400 million of the variance on lower GST revenue. Treasury 
says the February figures have been influenced by bringing 
forward the GST due date, increasing the weight given to 
January's assessment. It expects the variance will reverse.

DOWN ON THEIR LUCK INVESTORS SWAMP MARKET
-----------------------------------------

Inexperienced, undercapitalised investors are swamping the 
housing market according to the BNZ. The bank has suggested 
that properties are overvalued by 30 percent but has stopped 
short of predicting they will fall by that amount. Chief 
Economist Tony Alexander believes there will be a drop of five 
to ten percent as the dominance of people with over-valued 
investment properties try to sell, swamping the market. He 
says the market rose for three years longer than expected 
which has created the current situation "Many people developed 
a fear that they were missing out on easy gains in the 
property market, so they went along to seminars, they got 
themselves highly geared, they took out a mortgage on their 
own home that they were living in. A lot of inexperienced, 
undercapitalised people got drawn into the market." Mr 
Alexander says later this year, interest rates should come 
down and keep falling next year. He says workers will have 
another 4.5 to five percent wage increase with tax cuts in 
October which should contribute to first home buyers coming 
back into the market later this year.

PHARMAC COULD FACE FLOOD OF REQUESTS
------------------------------------

A health lawyer believes the floodgates could open to other 
groups needing vital medicine following the High Court's 
decision on Pharmac. The Government's drug-funding agency has 
been told to reconsider its decision not to fund 12 month 
programmes for the breast cancer drug Herceptin, which is used 
to treat women with the aggressive HER2 positive form of the 
disease. Pharmac instead made funding available for patients 
to undertake a nine-week course. Lawyer Carol Peters says 
PHARMAC could now be open to pressure from other groups in 
need of life-saving drugs which have been turned down in the 
past. "If they (groups) are also led to have an expectation of 
consultation when they're lobbying for further funding, then 
that could actually make life a little bit more difficult for 
Pharmac in the long run." Ms Peters suspects the High Court 
decision could end up slowing down the process of awarding 
funding to groups needing drugs. Eight breast cancer patients 
challenged Pharmac in the High Court case. Dubbed the 
Herceptin Heroines they had to find between $70,000 and 
$100,000 to fund the 12-month course themselves.

CAMPAIGNERS FEAR BIOFUELS INVESTMENT
------------------------------------

Biofuel campaigners say scrapping the government's Biofuel 
Bill would stop New Zealand's progression towards 
sustainability dead in its tracks. Parliamentary Commissioner 
for the Environment Dr Jan Wright says the bill should not be 
passed. She says biofuels threaten New Zealand's clean, green 
image and the potential for production of domestic biofuel is 
limited. Some would have to be imported to meet mandatory 
sales levels. But Biofuel Manufacturers Association spokesman 
Dickon Posnett says there will not be any investment in 
biofuels until the bill is passed. He says burning fossil 
fuels is not sustainable and puts a lot of carbon into the 
atmosphere. He says if legislation gets through, the country 
would immediately be able to start reducing the amount of 
fossil fuels it burns. International criticism of biofuels 
include concern that land containing rainforests would be 
cleared to grow crops and food supplies would diminish as 
crops are diverted to meet fuel needs.

IT'S A BUYERS MARKET IN REAL ESTATE
-----------------------------------

The Real Estate Institute says it is a buyers market as the 
Bank of New Zealand claims property prices are over valued by 
more than 30 percent. The BNZ is warning against increasing 
the supply of houses when the market is diving but it stops 
short of claiming that house prices will drop by 30 percent. 
Murray Cleland, president of the Real Estate Institute, says 
there have been some good years in real estate and people are 
now facing rising interest rates which will have an impact on 
the market. He says buyers have the upper hand and people with 
houses for sale need to be realistic about their prices. He 
says they may also need to be patient as properties could take 
longer to sell. 

Monday, 7 April 2008
~~~~~~~~~~~~~~~~~~~~

JUNIOR DOCTORS TO STRIKE
------------------------

Junior doctors are going on strike. In total 2,500 doctors 
from all 21 District Health Boards will take industrial action 
for 48-hours on April 22. They are seeking a 10 percent pay 
increase each year for the next three years.

FREE TRADE DEAL SIGNED IN BEIJING
---------------------------------

Helen Clark says the flood of Chinese workers into New 
Zealand, predicted by those opposed to a free trade deal with 
China, is not going to happen. The deal has been signed in 
Beijing this afternoon. Tariffs on our exports to the world's 
most expansive economy will start coming off in October and be 
wiped completely in 12 years. From October, up to 1,800 
Chinese will be allowed into the country for up to three years 
to do specific jobs. But the Prime Minister, who is in the 
Chinese capital, says New Zealand's immigration gates will not 
be thrown open. She says some of the workers allowed in will 
be involved in speciality areas, such as traditional Chinese 
medicine and Chinese chefs. She says the others will work in 
areas where New Zealand has specified skill shortages. There 
are currently 85,000 workers in New Zealand on limited work 
visas.

FAMILY PLANNING URGES NZERS TO DRINK SENSIBLY
---------------------------------------------

Family Planning believes too many people are putting 
themselves in vulnerable positions by binge-drinking. New 
hard-hitting TV advertisements have been launched by the 
Alcohol Advisory Council. They show graphic examples of 
excessive drinking leading to harm. Family Planning Chief 
Executive Jackie Edmond says the ads are a truthful reminder 
for many people. She says often on the morning after, the 
night before is a blur. She says there are too many people 
going to Family Planning who do not remember what happened 
while they were drunk and social attitudes towards alcohol 
consumption need to change. Ms Edmond says alcohol changes 
behaviour and a person's sense of self-safety. She says people 
should reduce the amount they drink, make sure they are with 
friends who will look after them and make concrete plans for 
getting home.

PETER BROWN FEARS INFLUX OF CHINESE WORKERS
-------------------------------------------

Deputy New Zealand First leader Peter Brown is prepared to 
oppose the free trade deal with China if it allows more 
Chinese workers into New Zealand. A large delegation of New 
Zealanders is in Beijing, where the FTA will be signed off 
this afternoon. Mr Brown has faced heavy criticism for the 
comments he made last week that there are too many Asian 
immigrants in New Zealand. Now he says he has serious concerns 
following speculation the free trade deal will allow Chinese 
labourers into New Zealand. He says if the terms "are as bad 
as have been indicated," he will have second thoughts about 
whether he can personally support the FTA. He says New Zealand 
must be in control of its population, its own labour force and 
restrict who can enter the country. He says if New Zealand 
gives that up it is inviting problems. New Zealand First's 
Caucus is due to discuss the issue tomorrow. With National 
supporting the deal, the Government already has the numbers it 
needs. 

(I wonder what else frightens the man. - BH)

COURT DELAYS FRUSTRATE OFFICERS
-------------------------------

Police officers are tired of being apologists for delays in 
the court system. Several officers have voiced their concerns 
in the latest issue of the Police Association magazine Police 
News. Detective Senior Sergeant Dave Pizzini of Counties-
Manukau says officers are finding trials increasingly 
difficult to handle. He says the availability of witnesses and 
the quality of evidence are often compromised by long delays 
in getting cases to court. He says officers have to manage 
complainants and witnesses for as long as two years after the 
event as they wait for matters to go to court. Mr Pizzini 
believes the delays are due to an increase in serious crime 
but no increase in the number of judges or courtrooms to cope. 
He is calling on the government to increase resources for the 
justice system, or he says things will only get worse.

THOUSANDS RESCUED OVER THE SUMMER
---------------------------------

Surf lifeguards from Raglan to the Far North saved hundreds of 
lives this summer. The volunteers have put their red and 
yellow flags out for the last time for the season, finishing 
one of the busiest summers on record. The 1200 lifeguards 
saved 960 over the past two months, a 48 percent increase on 
last year's statistics. Northern region Surf Life Saving 
manager Dean Storey says the consistently good weather had 
people flocking to the beach, which meant extra pressure on 
volunteer lifeguards. He says the volunteers should be 
commended for their hard work.

BUTTER TAX IDEA REJECTED BY FARMERS
-----------------------------------

Federated Farmers is rejecting the suggestion of a butter tax. 
Professor Rod Jackson from Auckland University says New 
Zealanders eat three times as much butter as Australians and 
16 times more than the Japanese. He says butter is the purest 
form of saturated fat available and he blames its consumption 
for New Zealanders having some of the highest cholesterol 
levels in the world. He claims butter should be regarded as a 
health hazard and treated in the same way as alcohol and 
cigarettes. But chairman of Federated Farmers dairy section 
Frank Brenmuhl says there are much better ways to combat the 
country's obesity issues, including promoting healthier diets 
and more exercise. He believes a tax would dramatically push-
up the price of butter which would have a knock on impact on 
foods which contain the product. Mr Brenmuhl says butter would 
be priced off the New Zealand market if it was taxed and 
farmers would be forced to sell off shore as the world demand 
for butter is greater than farmers can currently supply.

Tuesday, 8 April 2008
~~~~~~~~~~~~~~~~~~~~~

"NOT ENOUGH IN FTA TO SUPPORT IT" - WINSTON PETERS
--------------------------------------------------

New Zealand First is opposing the Free Trade Agreement with 
China. The party has announced its decision at Parliament. 
Winston Peters says there is simply not enough in the deal for 
New Zealand First to support it. He believes the agreement is 
not worth the risk of exposing the few remaining elements of 
New Zealand's manufacturing industry. Mr Peters says the party 
is also concerned that the tariff reductions favour the 
Chinese, while he says there is already a huge imbalance 
between the two countries. However, the move is more of a 
symbolic one, as the FTA will pass through Parliament with the 
support of the two major parties.

PERSONAL LOAN APPLICATIONS DROP
-------------------------------

Rising fuel and food prices are being blamed for a significant 
drop in applications for personal credit. Veda Advantage has 
released figures showing a 52 percent decrease in hire 
purchase applications for the first quarter of 2008, compared 
with the same time last year. New Zealand Director John 
Roberts says applications for personal loans are down 12 
percent. He says there is increased financial stress on 
households, with mortgage rates going up on the back of rising 
fuel and food costs. Mr Roberts says there has also been a 33 
percent increase in outgoing cash flow of the average 
household.

NO PERMANENT RESIDENCE FOR CHINESE WORKERS
------------------------------------------

Labour immigration clauses in the free trade deal with China 
will prevent Chinese workers taking up permanent residence in 
the country. Under the provisions of the FTA, up to 1,800 
Chinese workers will be allowed into New Zealand at any one 
time to work for set times in specific employment areas. 
Already New Zealand First's deputy leader Peter Brown has 
expressed reservations about giving such rights in the FTA. 
However the text of the agreement makes it clear nothing in 
the trade deal will apply to measures pertaining to 
citizenship, nationality, residence or permanent employment.

BUSINESS CONFIDENCE CONTINUES TO PLUMMET
----------------------------------------

The New Zealand Institute of Economic Research has found 
business confidence is plummeting. Its March Quarterly Survey 
of Business Opinion shows 56 percent of firms expect the 
general business situation to deteriorate in the next six 
months. Research Economist Ryoko Ito says this is the highest 
level of pessimism since December 2005. She says BNZ has been 
talking about a recession in the economy, which has carried 
through to the market place. Ms Ito says a net 73 percent of 
manufacturers in New Zealand expect deterioration, compared to 
12 percent in Australia.

FTA COMPETITORS WAITING TO POUNCE
---------------------------------

New Zealand's leaders of industry appear to be generally 
pleased with the free trade agreement struck with China but 
the National Party is warning competitors are waiting in the 
wings. Some goods will be affected by the reduction of tariffs 
from October 1 this year, but in general, the impact will be 
felt long term. A delegation of around 200 people including 
business leaders accompanied Prime Minister Helen Clark on the 
Beijing trip where she signed the deal yesterday. A banquet 
was held last night to celebrate. The dairy industry says the 
deal looks very promising for farmers. Earl Rattray, chairman 
of Dairy Companies Association of NZ and a Fonterra director 
says tariffs will be reduced over time which has to be good in 
a market that is growing faster than most in the world. He 
says while he would not expect a major shift in the exporting 
landscape in the short term, the deal will make the New 
Zealand dairy industry more competitive in China over time. 
"Establishing relationships and building our business (in 
China) is something we'll have to take advantage of." Mr 
Rattray says Fonterra is already the world's largest exporter 
of dairy products to China, but it is a very large market. 
Sharon Clair from the Combined Trade Unions says unions have 
been kept fully briefed by the Government in the lead up to 
the signing. She doubts that the 1800 skilled Chinese workers 
who will be allowed to come to New Zealand for up to three 
years will affect the labour market. "The manufacturing sector 
cannot compete with China in labour. But what we can do is we 
can actually become a knowledge-based economy and that 
requires a skilled workforce." Ms Clair says a manufacturing 
strategy is currently being worked on with the Government. 
Richard Taylor from Weta Workshops says his company is already 
doing business in China but the FTA will make things easier. 
The National Party says it endorses the FTA which it believes 
opens up valuable export opportunities, particularly access to 
China's agricultural market, but leader John Key says New 
Zealand should be under no illusion about potential 
competition. He says other countries are waiting to strike 
deals with China and Kevin Rudd, the prime minister of New 
Zealand's major trading partner Australia is currently 
visiting Beijing. Mr Key says many companies will want to 
replicate the deal. "While New Zealand has a first-mover 
advantage we need to take it fairly quickly because there will 
be others trying to fill that space." Under the FTA, tariffs 
on infant milk formula, casein, and yoghurt will be phased out 
over five years. China's tariffs on butter, milk and cheese 
will disappear over ten years. Sheep meat and beef tariffs 
will go over nine years. Apple tariffs will be removed by 2012 
and kiwifruit over eight years. Currently, 37 percent of 
China's exports to New Zealand are tariff free, but under the 
deal, all tariffs will be removed by 2016. The FTA is 
estimated to be worth up to $350 million a year to New 
Zealand.

POSTIES EASIER TO SEE
---------------------

New Zealand Post is hoping motorists will slow down for 
posties now that they are wearing new high visibility gear 
General delivery manager Stuart Kane says there have been 75 
incidents involving postal workers and vehicles in the past 
year with cars backing out of driveways are potentially the 
most dangerous hazard to posties on bicycles. He says posties 
now have yellow fluorescent helmets, vests and panniers.

REVAMP OF PARAPARAUMU AIRPORT APPROVED
--------------------------------------

The Kapiti Coast District Council has given the go ahead to 
the controversial plan to redevelop the Paraparaumu Airport. 
More than 200 people turned up to a meeting about the issue 
yesterday. The council eventually decided to accept 
commissioners' recommendation that it go ahead with the 
construction of a retail development on the 131 hectares of 
land. Paraparaumu Airport Ltd wants to change the existing 
airport zoning so that it can run more retail and commercial 
ventures. George Jenkins, representative for the Maori former 
landowners, says while the decision is unfortunate, the day 
was still a success, because so many people from the community 
voiced their opinions openly and honestly. Mr Jenkins says the 
ownership issue will be negotiated with the airport owner on 
April 18.

JUNIOR DOCTORS ACCUSED OF BEING UNREASONABLE
--------------------------------------------

District Health Boards feel junior doctors are holding a 
loaded gun to the heads of patients. Doctors at the country's 
21 DHBs have given notice of a 48 hour strike starting on 
April 22. They want a 10 percent pay increase for each of the 
next three years. Their union says junior doctors will 
continue to provide life preserving services. DHB spokesman 
David Meates says hospitals cannot afford the increase junior 
doctors want and they know it. He says the demands are way 
above other health sector settlements which have generally 
been around four percent.

PROS AND CONS FOR TEXTILES INDUSTRY
-----------------------------------

The body for the textiles industry is predicting fallout for 
some sectors of its membership from the free trade agreement 
signed with China. Prime Minister Helen Clark says the deal 
signed in Beijing with Premier Wen Jiabow is a major step 
which will strengthen relations. It will ultimately result in 
96 percent of New Zealand's exports being tariff free. Miss 
Clark says China is particularly interested in working with 
New Zealand on climate change policies and expanding 
environmental services. The first tariff cuts will start on 
October 1, once Parliament has given formal approval however, 
China has imposed a clause that will stop the reduction of 
tariffs if its small dairy industry faces too much competition 
from Fonterra. Textiles NZ, which represents the textile, 
carpet, footwear and apparel industries, says the free trade 
agreement will hit small manufacturers the hardest. Business 
Development Executive Paula Smith says the manufacturing side 
of footwear and apparel is largely done offshore already and a 
lot of fabric-makers are exporting so the deal could be 
positive for them but small manufacturing plants are at risk, 
especially if they rely on one designer giving them work. But 
Ms Smith says those who have maintained manufacturing in New 
Zealand are usually working in a specific or niche type of 
textile, such as merino or possum yarn, which produces high 
quality products and differs from mass-produced garments. She 
says the long-term implications of the deal are important and 
Textiles NZ will meet with officials from the Ministry of 
Foreign Affairs and Trade to put in place a period of 
consultation. She says Textiles NZ's focus will be retaining 
the industry's infrastructure and manufacturing capability. 
Tariffs on Chinese imports will be phased out by 2016, which 
is about the same timeframe New Zealand has for other free 
trade deals. The FTA bestows 'favoured nation' status on New 
Zealand and is expected to be worth $350 million a year 
through the reduction of tariffs and opening of markets.

Wednesday, 9 April 2008
~~~~~~~~~~~~~~~~~~~~~~~

"NO CONSTITUTIONAL PROBLEMS" IN MINISTER SPAT
---------------------------------------------

The office of the Prime Minister sees no constitutional 
problems in a spat between United Future leader Peter Dunne 
and New Zealand First leader Winston Peters. Peter Dunne, who 
like Mr Peters holds a ministerial warrant, cannot see how his 
counterpart can stay as Foreign Minister given he has said he 
will oppose the free trade agreement with China. A 
spokesperson from the Prime Minister's office says the rules 
of the confidence and supply agreements with both parties mean 
they are able to criticise each other on matters that do not 
relate to their portfolios. On that basis Mr Dunne is free to 
criticise Mr Peters position without compromising the Cabinet 
rules of collective responsibility.

STUDENTS TO GET SOMETHING IN NEXT BUDGET
----------------------------------------

There is a solid hint from the Government there will be 
something in next month's budget for tertiary students. 
Tertiary Education Minister Pete Hodgson sent the signal in 
Parliament today during a debate over the fact student loan 
debt is set to hit $10 billion this week. He says next month's 
budget will contain some measures to further increase student 
support, just as has been the case in the previous eight 
budgets. Mr Hodgson defended the rising amount of student 
debt, saying it is because more students are entering tertiary 
education.
("You will eat, bye and bye, 
In that glorious land above the sky; 
Work and pray, live on hay, 
You'll get pie in the sky when you die" 
- Joe Hill, 1911  - BH)
  
ELECTORAL COMMISSION TO REVIEW NZ FIRST AD
------------------------------------------

The Electoral Commission will review a New Zealand First 
newspaper advertisement, despite not receiving any complaints 
about it. The ad, which was funded by the taxpayer, outlines 
the party's opposition to the Free Trade Agreement with China. 
It also states New Zealand First's opposition to foreign 
takeover of Auckland Airport and the dairy industry. A New 
Zealand First spokesman says the party checked with the 
Electoral Commission, and believes the ad is not soliciting 
votes as it is communicating party policy. A commission 
spokesman says although it has not received a complaint, it 
will look at the ad in a fortnight due to the public interest. 
New Zealand First leader Winston Peters is adamant the ad is 
above board, saying it has passed all criteria. He says it is 
communicating policy and the party made substantial enquiries 
to ensure the ad was within the rules.

BANKS URGED NOT TO OVERREACT TO DOWNTURN
----------------------------------------

The Reserve Bank is urging banks and businesses not to 
overreact to the economic downturn by going into hibernation. 
Dr Alan Bollard has told the Marlborough Chamber of Commerce 
that the New Zealand economy is fundamentally sound and 
creditworthy. He says New Zealand has experienced a record 
period of uninterrupted growth that has left the economy 
stretched. Dairy prices have been strong and the government's 
fiscal policy is more expansionary this year, adding to 
inflationary pressures from fuel and food prices. Wage 
pressures remain high and in 2009 and 2010 there will be a 
significant boost from the emissions trading scheme. Dr 
Bollard acknowledges the economy is slowing, but says it is a 
cyclical adjustment and warns those going into wage 
negotiations not to assume the tight labour market conditions 
will continue. He says the high official cast rate of 8.25 
percent leaves New Zealand in a better position than some 
Northern Hemisphere countries that still have to confront 
future inflationary pressures. Dr Bollard says the Reserve 
Bank expects the New Zealand economy to see a markedly weaker 
growth profile this year because the housing market is 
softening and the continued high New Zealand dollars is 
constraining export receipts. He says the dry weather this 
summer has hit dairy and meat volumes. Dr Bollard says the 
significant financial market disruption in the Northern 
Hemisphere is having only a limited effect on the economies of 
New Zealand's trading partners, with the exception of the 
United States. "This does not look like unusually weak world 
growth and the continued strength of Australia and Asia is an 
important continued growth driver for New Zealand." Dr Bollard 
says disruption in financial markets has seen finding costs 
rise and credit conditions tighten. He says it would be 
disappointing if New Zealand businesses slowed quality 
investment because of credit constraints.

ANOTHER FUEL PRICE HIKE
-----------------------

It just keeps getting more expensive at the pump. Caltex has 
hiked the price of petrol by three cents a litre and diesel by 
five cents. 91 is now at 183.9c a litre with 95 is at 188.9. 
Diesel is 141.9c a litre. The price rise comes as crude oil 
prices fall back slightly. A barrel is currently trading at 
around $US108 a barrel.

GP APPOINTMENTS GETTING HARDER TO COME BY
-----------------------------------------

It is predicted it will take longer and longer to get an 
appointment with a GP. The number of GPs and practice nurses 
in the country is falling, at the same time as the population 
is growing. The Independent Practitioners Association Council, 
which represents more than 800 community based medical 
practices throughout the country, says doctors surgeries are 
struggling to meet demand. It says growing workloads have 
already seen some surgeries close their books to new patients, 
with Tauranga the latest region to take such a step. IPAC says 
patients are facing similar problems in the Hutt Valley, 
Kapiti Coast, Manawatu and parts of Christchurch. Chairwoman 
Dr Bev O'Keefe says patients in many urban areas are already 
experiencing access difficulties, which used to be largely 
limited to isolated rural regions. She warns the situation 
looks set to get much worse, as over four doctors and nurses a 
week are set to leave general practice for retirement and more 
attractive career options. 
 
(My own GP just retired. Happily the practice has recruited a 
new one - a bright young woman who inspires confidence. I 
count myself lucky. - BH)

STUDENTS WANT PARENTAL MEANS TESTING WIPED
------------------------------------------

The Government is being asked to abolish parental means 
testing for tertiary students applying for allowances. 
Students at Auckland University are holding a protest against 
student debt, which hits a record $10 billion tomorrow. 
Student Association president David Do says it is time the 
Government offered universal allowances for all students. He 
says the requirements for allowances should be changed and 
means testing students on their parents' salaries should be 
wiped out. Mr Do says many students are not financially 
supported by their parents and it is time the Government does 
away with a law which was created 17 years ago. 
 
(Does my memory serve me well when it associates this with 
Lockwood Smith? - BH)

BNZ SAYS SURVEY SUPPORTS RECESSION PREDICTION
---------------------------------------------

The Bank of New Zealand believes a drop in business confidence 
supports its view there will be a recession later this year. A 
survey by the Institute of Economic Research finds 56 percent 
of businesses polled expect the economic situation to 
deteriorate over the next six months. It is the highest level 
recorded since December 2005. More businesses are also 
expecting increased costs and that they will have to raise 
their prices. Tony Alexander, chief economist of the BNZ, says 
economic growth is deteriorating reasonably rapidly, which 
would normally lead to a fast fall in the inflation rate but 
he says this is not happening because of the increasing costs 
of food and energy and the tight labour market. Mr Alexander 
says economic confidence will only return when the Reserve 
Bank drops interest rates and the New Zealand dollar comes 
down in value.

Thursday, 10 April 2008
~~~~~~~~~~~~~~~~~~~~~~~

LANDLORDS SAY STUDENTS CAN BE GOOD NEIGHBOURS
---------------------------------------------

Landlords claim university students "don't party the way they 
used to". An online survey of almost 250 New Zealanders has 
students classed second only to squatters as the worst 
neighbours. Property Investors Federation president Martin 
Evans says things have changed since students started paying 
for their own tuition. He says they now take studying more 
seriously and are not prepared to go to university and fail. 
Mr Evans says students do make good neighbours, as long as 
people make an effort to get to know them.

BLUE CHIP TAKES VOLUNTARY LIQUIDATION
-------------------------------------

Blue Chip New Zealand Limited is opting for voluntary 
liquidation, joining 20 other related companies that have gone 
under. The decision has been announced on the Australian Stock 
Exchange by the company formally called Blue Chip Financial 
Solutions, which has now changed its name to Northern Crest 
Investments. Olly Newland represents a group of burnt 
investors and says it is doubtful the voluntary liquidation 
will get investors' money back. He says it is just a formality 
and does not make any difference because the company does not 
have any money. Northern Crest says liquidators of the 
companies associated with its New Zealand franchise requested 
the action to provide greater transparency.

GOVERNMENT URGED TO MIX HOUSING DEVELOPMENTS
--------------------------------------------

The Human Rights Commission wants the Government to ensure 
developers do not discriminate against the poor when building 
new houses. Chief Commissioner Rosslyn Noonan has appeared 
before a Parliamentary Select Committee which is looking into 
affordable housing. It is discussing Government plans to make 
developers build a range of house types in new developments. 
Ms Noonan has urged politicians to ensure that low-income 
earners are not blocked from living in developments in 
wealthier suburbs. She says if you have the best land in the 
inner city areas locked out of providing affordable housing, 
you are building a long term problem for society. She says for 
the long term health of society, there need to be constructive 
measures that ensure there will not be the sort of ghettos 
that are found in the UK and France.

SEXUAL BEHAVIOUR AMONG INTERMEDIATE STUDENTS
--------------------------------------------

A quarter of teachers in a new survey says they have had to 
manage sexual behaviour among intermediate school students. 
The study was run by Victoria University in conjunction with 
the sexual offender treatment group WellStop. Generally the 
143 teachers interviewed felt problems had been well managed, 
with less than 20 percent opting for treatments outside of the 
school. WellStop general manager Hamish Dixon says most of 
their referrals come from Child Youth and Family which can be 
a very slow process. He says delays in seeking professional 
treatment only results in more victims. Mr Dixon says where 
the offending is serious or there is a pattern of behaviour, 
they would encourage teachers to seek professional help.

(Intermediate schools cover the two years when kids are 
typically in their 7th and 8th year of schooling and are aged 
around 12 years. - BH)

WESTERN DIET MAY HEIGHTEN ALLERGIES
-----------------------------------

Hay fever and asthma sufferers could get some relief from a 
change in diet. Auckland University has measured two types of 
white blood cells involved in allergic responses, by 
monitoring asthma and hay fever sufferers for four hours after 
eating. Researcher Peter Black says both types of cells were 
found to be significantly higher after a high fat meal, than 
after a low fat meal. Dr Black says they are now looking to 
see whether longer term changes in diet may allow people with 
allergic diseases to better control their symptoms. Dr Black 
says one tenth of all 13-year-olds experience breathing 
problems in New Zealand and since 1960, asthma has increased 
by 10 percent in all adults. He says New Zealand is now better 
at treating asthma and less people are now admitted to 
hospital.

MANUFACTURING DECLINES
----------------------

The Bank of New Zealand is looking forward to the spin-offs of 
the free trade deal with China, following the release of 
figures showing manufacturing activity is in decline. Its 
seasonally adjusted Performance of Manufacturing Index for 
March of 48.3 shows a decrease in overall activity for the 
first time since January 2006. Manufacturing activity has hit 
its lowest value since November 2005. The BNZ says the United 
States is beginning a consumer-led recession, the UK is 
looking vulnerable, Europe is slowing and Australia is 
suddenly looking softer. It says the only meaningful positive 
news is from China where growth is predicted to fall, but 
still run at over ten percent this year.

GREENS CRITICISE TIMBER INDUSTRY
--------------------------------

The Greens claim the timber industry's short term thinking and 
long term inefficiencies have proven to be ruinous for the 
industry, profits and workers. Co-leader Jeanette Fitzsimons, 
who lives near the Kopu mill in Thames, says the possibility 
of 145 jobs being lost at the Carter Holt Harvey-run operation 
highlights how uncoordinated the timber industry is. She says 
the industry competitively overproduces, hauls logs long 
distances when local mills are available to do the work and 
expends energy for the sake of short-lived gains. ?Last year 
logs were coming to Thames from Northland despite there being 
plenty of forests in the Coromandel. It is a common sight to 
see full logging trucks crossing paths, heading in opposite 
directions." Ms Fitzsimons says timber companies could 
minimise their costs by linking production more closely to 
market demand. She says the industry and the Government must 
start working intelligently on providing better leadership in 
the market. Meanwhile, the mayor of Thames says the town has 
swung into action to help those who could lose their jobs. 
Philippa Barriball says the local WINZ centre is doing an 
excellent job at finding alternative employment for the 
workers. She says work brokers have door knocked many local 
business and have received 28 job offers in the town. The jobs 
include everything from engineering and electricians, to 
cleaning positions.

STUDENTS HIGHLIGHT GROWING DEBT
-------------------------------

The Government is being urged to help stop $10 billion worth 
of student debt getting out of control. Statistics from the 
New Zealand Union of Students Associations show average 
student debt has risen 54 percent since 2004. More than 
700,000 people owe on average almost $29,000 each. Union co-
president Liz Hawes says the figures highlight the inequity of 
the student loan scheme and the unsustainability of a debt-
laden generation. She says a free education is essential if 
the Government wants its brightest and best to stay in New 
Zealand. Ms Hawes says students' living costs also need to be 
covered free of charge. Auckland students are setting up a 
"debt ghetto" in the university quad today to highlight the 
debt issue. The Otago Polytechnic Students Association is 
holding a rally at midday.

Friday, 11 April 2008
~~~~~~~~~~~~~~~~~~~~~

GREENS CALL FOR OLYMPIC BOYCOTT
-------------------------------

The Greens have written to Helen Clark asking that no 
Government representatives attend the opening of the Olympic 
Games in Beijing. The Prime Minister has already made it clear 
that she will not be at the ceremony, not in a boycott, but 
because it was never her plan to go. Green MP Keith Locke 
would like Miss Clark to ask the Governor General and her 
Sports Minister to cancel their plans to go. He says it would 
be a bad look for New Zealand to have representation at the 
ceremony, when other nations are choosing not to go. Several 
European leaders are boycotting the event, while President 
Bush is still undecided.

RECEIVERSHIP DISAPPOINTS LOMBARD
--------------------------------

Lombard Group is disappointed that investors were not given 
the chance to consider a moratorium before the receivers were 
called in to deal with collapsed subsidiary Lombard Finance & 
Investment. Lombard CEO Michael Reeves says Perpetual Trust, 
the trustee for Lombard Finance, did not give investors the 
chance to consider approving an alternative to receivership. 
He believes that a moratorium would have resulted in a better 
recovery from the loans that the company had made. Mr Reeves 
says some of the finance company's loans to fund property 
developments would require an ongoing relationship with the 
developer and others to maximise the recovery but that will 
not happen with the company in receivership. Lombard Finance 
owes $127 million to 4400 secured debenture investors and 
unsecured note holders. Lombard Group is both a shareholder 
and investor in Lombard Finance and holds $2 million of 
Secured Debenture Stock.

PM CONFIDENT PETERS WON'T BAG FTA OVERSEAS
------------------------------------------

Prime Minister Helen Clark is defending Winston Peters' stance 
on the free trade agreement with China. Miss Clark says 
negotiations with China started before Mr Peters was appointed 
Foreign Minister, and it was clear from the start he did not 
approve of trade deals with developing countries. Mr Peters 
has criticised the FTA, saying New Zealand has not got enough 
out of it. He said he would feel free as Foreign Minister to 
criticise the deal as not good enough if he were questioned 
about it overseas. However Miss Clark is sure he will not bag 
the deal on his trips around the world. "I think you'll find 
Winston Peters is pretty responsible in the way that he 
behaves overseas. He has certainly given me an assurance, 
yesterday, that he won't be commenting on the FTA with China 
while overseas other than to note that the negotiations have 
been successfully concluded." Helen Clark says the FTA is Phil 
Goff's responsibility as Trade Minister.

GOVT SAYS NO TO CANADIAN AIRPORT BID
------------------------------------

The Canadians have been refused permission to buy a slice of 
Auckland International Airport. Ministers Clayton Cosgrove and 
David Parker have released their decision on the Canadian 
Pension Investment Board's bid to buy a 40 percent stake. They 
say they are not satisfied the deal will benefit New Zealand.

HOROMIA'S "TRIM" COMMENT RILES OPPOSITION
-----------------------------------------

The Maori Party is attacking Maori Affairs Minister Parekura 
Horomia for his comments on children's eating habits. Mr 
Horomia staggered MPs yesterday when he said there are a host 
of reasons why pupils do not have breakfast, which included 
the possibility they are trying to stay trim or they may come 
from a poor family. His comments came in response to a 
question from the Maori Party which asked why 20,000 children 
a week needed to be fed at school. Maori Party co-leader 
Tariana Turia is appalled. She says Mr Horomia must know that 
a large number of the thousands of children who arrive at 
school hungry every day are Maori and Pacific Islanders. Ms 
Turia says it is almost obscene for Mr Horomia to suggest that 
obesity is the problem, rather than a lack of food. National's 
education spokeswoman Anne Tolley says child hunger is a very 
real problem for tens of thousands of families "These ill-
judged comments reflect Labour's total denial of an underclass 
in New Zealand." 
 
(Overseas readers may miss some of the visual irony of this 
comment. I am a big fellow myself, but see 
http://www.stuff.co.nz/images/715433.jpg For all that, I like 
the man. He is a minister of the crown, yet not knowing me 
from a bar of soap, asked if I needed a lift anywhere in his 
ministerial car when we emerged from the same Barber's shop. - 
BH)

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