WYSIWYG NEWS - 22 April, 2008

[news at wysiwygnews.com]

Subject: 22 April, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

Sunday morning at Burdan's Gate, at the end of the Eastbourne 
Road, I sat in the car and watched my dearly beloved enter her 
third half-marathon walk. The weather was a vast improvement 
on the previous day, but was still cold and bleak, with 
stinging Southerly showers. However, away to the South, beyond 
the edge of the local overcast, the snow tipped peaks of the 
Seaward Kaikouras promised better things to come. Bathed in 
the early morning sun, they provided a spectacular backdrop to 
the incoming ferry, Arahura. Over towards the city where all 
was still dark and grey, the newer ferry Kaitaki (formerly 
"Pride of Cherbourg") was putting on power as it came towards 
Ward Island. Given that modern manning scales don't permit as 
much attention to smart paintwork as Chief Officers once 
required, I have often thought that the choice of an all white 
colour scheme for the Interisland Line was a grave error of 
judgement. Rust streaks down hulls don't inspire confidence. 
However, against the dark backdrop of the Western Hills, and 
with six or seven kilometres distance, she looked clean and 
smart. My new long lens was brought into play and I got a 
couple of shots of her kicking up some spray as she 
accelerated across the harbour. Soon she turned into the 
shipping lane off the coast of Seatoun, and she and Arahura 
appeared to be on a collision course. Kaitaki is much bigger 
than Arahura, so the imminent collision was an optical 
illusion, but they made a fine sight as the passed each other 
"port to port" according to the custom of the sea. Soon, 
Kaitaki was out beyond the heads and past those black rocky 
teeth that snared the Wahine forty years and two weeks 
earlier. Despite the wind the harbour was relatively smooth, 
with a swell of less than 2 metres dumping periodically on the 
rocky beach beside the Pencarrow road where so many lost their 
lives in 1968. Despite the chill wind, a bunch of would-be 
surfers were out there achieving short runs before having to 
jump off to avoid the rocks.  The half marathon runners and 
walkers took off at about 9 am, so after a few necessary 
photos I settled down in the car to mark student assignments 
(it's mid term break at present). Contrary to my expectations, 
it was not a good environment for concentration. The weather 
kept changing, and one minute Tapuae-o-uenuku's 2,885 summit 
was dominating the scene from 130 km distance, and the next  
minute, a rain squall blotted everything out. This is a very 
exposed coast in a Southerly, so I had some qualms for Mary, 
but knew that there were race officials at frequent intervals 
to provide water to those with a thirst, and help to those in 
trouble. Some three hours later, a distant figure appeared 
around the nearest headland and carried on towards the finish 
line. Once again I left the warmth and comfort of the car, and 
went over to the timekeepers tent where, great glory, they 
were barbecuing sausages. That took a little of the bite out 
of the wind, and so I walked a little way up the track to 
record the finish. Despite having just done over 20 km she 
could still walk faster than I, so I followed her back to the 
finish line where we learned of a good time (sufficient for 5th 
overall and second fastest woman out of 13 half-marathon 
walkers). I was of course extremely proud, but no nearer to 
understanding the motivation. What an amazing woman! 
----  
Any text above this point, and all subsequent material in 
parentheses, and concluded with the initials "BH" is the 
personal opinion of Brian Harmer as editor of this newsletter, 
or occasionally "GS" will indicate an opinion from our 
editorial assistant. In all cases they are honest expressions 
of personal opinion, and are not presented as fact.  
 
All news items (except where noted otherwise) are reproduced 
by kind permission of copyright owner, Newstalk ZB News. All 
copyright in the news items reproduced remains the property of 
The Radio Network Limited. 
Sponsorship this week is courtesy of long-time reader and 
supporter, Lydia Hedge. Many thanks Lydia.
----  
On with the News. 

 
Monday, 14 April 2008
~~~~~~~~~~~~~~~~~~~~~

HYDRO LEVELS DROP BELOW KEY MARKER
----------------------------------

The electricity industry is putting contingency plans in 
place, in case the drought continues beyond autumn. Hydro lake 
levels have fallen below a key marker, alerting the industry 
to the possibility that measures may be needed this winter. 
Transpower Chief Executive Patrick Strange says drought 
conditions have affected the North and South Islands, 
resulting in very low inflows into the hydro lakes. He says 
Lake Taupo's seasonal inflows, for instance, are the lowest on 
record, and shut-downs and maintenance at power plants reduced 
electricity production - adding to the strain on storage 
levels. Mr Strange says provided the severe drought ends in 
autumn and all of our large thermal plants continue to 
operate, the situation will be okay. He says otherwise, 
customers may be asked to reduce their electricity consumption 
for a financial incentive, and large electricity users are 
already being spoken to about this possibility.

SPENDING ON FOOD AND CLOTHES TAKES A HIT
----------------------------------------

Average income earners are starting to ration basic food items 
to cope with the current climate of economic uncertainty. 
Research New Zealand has asked 550 people about their 
financial circumstances in the last year. Director Emanuel 
Kalafatelis says 52 percent of those polled said they were 
cutting back on basics like food and clothing. He says 65 
percent are cutting back on non-essential items. Mr 
Kalafatelis says 43 percent of people were dealing with the 
situation by trying to increase their savings.

MENINGOCOCCAL VACCINATION CAMPAIGN TO END
-----------------------------------------

The Government is claiming success for its national 
meningococcal immunisation campaign. The mass vaccination 
campaign that began almost four years ago following an 
epidemic of cases, is to be brought to a close. From a peak of 
370 cases of Meningococcal B in 2001, just 47 cases were 
recorded in 2007. Health Minister David Cunliffe says the 
immunisation programme has been a huge success with disease 
rates now at their lowest level in a decade. He says the 
programme will close next month but the vaccine will be 
reintroduced if it is ever needed again.

(I recall a postcard by Ashleigh Brilliant that suggested you 
should just pull the trigger, and call whatever you hit the 
target. - BH)

HOUSE BUYERS STAYING AWAY
-------------------------

Homeowners are facing shrinking profits as fewer buyers enter 
the market. The latest housing figures from Quotable Value 
show the average sale price dropped to $388,894 from $393,240 
last month. QV Valuations spokesman Blue Hancock says the 
market is continuing to soften with more listings and fewer 
buyers leading to reduced demand. He says the drop in average 
sale price in March is a reflection of more activity at the 
bottom end of the market and less at the top, rather than any 
significant drop in value. "Many investors may be seeking to 
reduce their exposure to increasing mortgage costs and having 
made good capital gains over the last few years are now 
looking to sell" The housing markets in Dunedin and Hamilton 
are slowing the fastest, with growth rates easing to 2.2 
percent and 3.4 percent respectively. Auckland City (6.2 
percent), Wellington City (7.4 percent) and Christchurch (5.8 
percent) eased more slowly. Tauranga was the only main centre 
to show an increase, rising from 2.9 percent to 3.7 percent. 
Mr Hancock says the negative market sentiment is likely to 
continue heading into the winter months.

GOVT FORMULATING TAX PACKAGE
----------------------------

The Government will sit down today to formulate the shape of 
its tax cut package which will be unveiled in the Budget, but 
Finance Minister Michael Cullen says he will not know exactly 
how much taxpayers will be offered until closer to next 
month's announcement, when he can use the latest Treasury 
forecasts. National Party leader John Key is accusing the 
Government of being desperate and suggests it may get reckless 
when revealing the tax package, but Dr Cullen says Labour is 
keen to see what National will offer. He says National has 
made so much noise about tax cuts for so long it will be hard 
for the party to back off on what it sees as the key issue of 
the election. 
 
(This has to be the slowest and most agonisingly extracted 
process in political history. - BH)

MORE EMPLOYERS THINKING ABOUT BALANCE
-------------------------------------

A labour relations expert believes employers are having to be 
more creative to keep staff in New Zealand. The Government has 
revealed the number of people receiving an unemployment 
benefit has dropped from about 161,000 in December 1999, to 
19,000 in March 2008. The almost 46,000 people receiving the 
sickness benefit in March is the lowest number it has been 
since July 2005. Auckland University Labour Relations expert , 
Peter Boxall, says as skilled staff head overseas for better 
opportunities, employers have had to become more flexible and 
are now thinking more about work-life balance and training on 
the job for staff who are not quite right for a position. Dr 
Boxall says New Zealand companies are doing well, considering 
they are competing with global giants that can offer staff 
terrific development opportunities but work performance needs 
to improve so that workplaces become more productive, 
generating higher incomes. (On the basis of some recent 
research in which I have been involved, I see no evidence of 
this. Work-life balance is shifting, but more in favour of the 
employer as more and more people attend to their work from 
home via the Internet, and Blackberries, etc. - BH)

Tuesday, 15 April 2008
~~~~~~~~~~~~~~~~~~~~~~

FOOD PRICES PUSH UP CPI
-----------------------

Rising food prices were the main contributing factor to the 
0.7 percent rise in the Consumers Price Index in the March 
quarter, taking annual inflation to 3.4 percent. The 
Statistics New Zealand figures show that during the March 2008 
quarter, food prices rose 1.8 percent and grocery prices 3.6 
percent. The high risers were many of the staple food items. 
Butter rose 33.9 percent, cheese was up 18.9 percent, and 
bread was 7.3 percent higher. House rentals increased 1.2 
percent, utilities were one percent higher and there was a 8.8 
percent rise in electricity prices. Petrol was up four percent 
for the quarter, mostly offset by lower prices for 
international air transport (down 8.6 percent). For the year 
to the March quarter, the CPI rose 3.4 percent. A 20.5 percent 
rise in the price of petrol made the most significant 
contribution to the increase. Statistics NZ says if petrol 
prices had remained constant from the March 2007 quarter, the 
CPI would have risen 2.5 percent for the year to the March 
2008 quarter.

TERTIARY UNIONS JOIN FORCES
---------------------------

The country's two tertiary education sector unions are 
combining to form what they say will be a new super union. 
Once the University and Tertiary Staff Associations combine in 
January next year, they will have a combined membership of 
11,500. The new union will represent staff at eight 
universities, 20 polytechnics, two wananga and a number of 
other allied organisations.

REDUCING PRODUCTION NOT AN OPTION
---------------------------------

Industry groups which have high power usage say it would be 
costly for businesses to reduce production to conserve 
electricity. Hydro lake levels have dropped below a key water 
mark and there is concern the situation will worsen if drought 
conditions continue. The electricity industry is proposing a 
buy back scheme where businesses would be paid to reduce their 
electricity use. Major Electricity Users Group spokesman Ralph 
Matthes says a lot of companies manufacturing goods in New 
Zealand are enjoying high prices overseas, so the cost of 
turning down production could be high. However he says there 
could be power savings they could make on the margins of their 
operations.

ARC CLAIMS ITS PLAN WILL SAVE $160M A YEAR
------------------------------------------

The Auckland Regional Council says its plan for one giant body 
to serve the region would eventually save ratepayers $160 
million a year. The ARC's proposal to the Royal Commission on 
Auckland's governance goes further than a super city idea 
being pushed by mayor John Banks. It says cutting and pasting 
the present system into something different will not improve 
the situation and something bolder is needed. Chairman Mike 
Lee says one of the benefits of the ARC's plan would be the 
vertical integration of water services, which would put an end 
to the supply being used as a cash cow. He believes the 
Auckland region has been held back by multiple rival councils 
with overlapping roles, responsibilities and mandates. He says 
the ARC's proposal would give the region more democracy and 
less bureaucracy. 
 
(I noticed with interest that two of the four cities in 
Auckland do not want a bar of the Banks plan, and have joined 
forces to oppose it. I suspect it died for many as soon as the 
title "Lord Mayor" was suggested. Delusions of grandeur? One 
radio commentator was rude enough as to refer to the him as 
"his pretentiousness". - BH

FAMILY AND COMMUNITY BEFORE CITIZENSHIP
---------------------------------------

New research shows that family and community are more 
important than citizenship. Auckland University sociologist 
Louise Humpage held seven exploratory focus groups about the 
rights, privileges and duties of a New Zealand citizen. She 
says most of the 38 participants did not consider being a 
citizen of New Zealand particularly important to their sense 
of belonging and identity. Dr Humpage says one reason appears 
to be that citizenship is associated with Government, which is 
not always perceived very favourably. She says most of the 
participants in her research had never thought about 
citizenship before the study.

TOUGHER TIMES AHEAD FOR RETAILERS
---------------------------------

Retailers will have to prepare for tough times ahead. Figures 
from Statistics New Zealand reveal retail spending dropped by 
a seasonally adjusted 0.7 percent in February, despite a 0.3 
percent increase in January. Michael Barnett CEO of the 
Auckland Chamber of Commerce says many people are finding 
money tight due to increasing fuel prices, high mortgage rates 
and credit card bills left over from Christmas. He says many 
business owners are expecting the next three months to be very 
slow and retailers need to stimulate the economy through 
initiatives such as holding sales, which give people a reason 
to buy.

Wednesday, 16 April 2008
~~~~~~~~~~~~~~~~~~~~~~~~

TYPO POSSIBLE FACTOR IN GORGE TRAGEDY
-------------------------------------

A simple typo may have contributed to staff at the Sir Edmund 
Hillary Outdoor Pursuits Centre missing a thunderstorm warning 
for the area. Six students and a teacher from the Elim 
Christian College in Auckland died yesterday, after being 
swept away by a rapidly rising Mangatepopo Stream. The chief 
executive of the Outdoor Pursuits Centre Grant Davidson says 
water levels in the gorge rose 36-fold in just half an hour as 
the victims made their way along a stream bed. Dr Davidson 
told Newstalk ZB's Larry Williams today that Outdoor Pursuits 
Centre staff were not aware of any weather warnings yesterday 
morning. He says the centre receives a regular MetService fax 
at 6:15am because that fits in with the morning briefing. A 
MetService spokesman now says the word 'thunderstorms' was 
accidentally omitted from the Tongariro forecast from 1:08am 
yesterday until 6:31am. A correction was made just 16 minutes 
after the Outdoor Pursuits Centre received its faxed forecast.

(Such speculations are now best left to the formal 
investigations. - BH)

NEW ZEALAND DIPLOMATS TO INCREASE BY 50 PERCENT
-----------------------------------------------

The number of New Zealand diplomats serving overseas is set to 
increase by 50 percent over the next five years. Foreign 
Minister Winston Peters has announced what he calls a "seismic 
change" for Foreign Affairs, with an increase of more than 
$500 million for operational funding and a $100 million dollar 
cash injection over five years. Mr Peters says the reality is 
that New Zealand is struggling to maintain an adequate 
presence on the international stage with a quarter of its 
overseas posts employing just two staff. There will be new 
posts in Stockholm and Brisbane, while posts in Asia will get 
extra staff.

TOUGH TIMES FOR NZERS AS ECONOMY BITES
--------------------------------------

The latest economic data has brought a warning that New 
Zealand is facing its toughest test for some time. ASB chief 
economist Nick Tuffley says New Zealand families are 
tightening their belts as growing financial pressures start to 
bite. He says most people are now feeling the pain of rising 
interest rates and rising bills for rents, food, fuel and 
energy. He says once people have fed their families, put a 
roof over their heads and done the daily commute, there is 
little now left in the pocket to spend on "nice to haves". 
However Mr Tuffley says it is important to remember there are 
still some positives to stimulate the economy in the near 
future. They include the prospect of tax cuts and an increased 
Fonterra dairy pay-out.

GROWERS UNDER COST PRESSURES
----------------------------

Horticulture New Zealand says the summer drought is partly to 
blame for the rising price of vegetables. The family food bill 
rose by around six percent in the last year. Tomatoes and 
potatoes in particular, jumped dramatically in price. Peter 
Silcock from Horticulture NZ says growers are also under 
pressure. He says their overall income has fallen because they 
have less to sell and face rising costs such as fuel, energy 
and labour. Mr Silcock says growers will eventually have to 
pass those costs on to consumers.

WALKING ACCESS BILL PASSES FIRST STAGE
--------------------------------------

A government plan to launch a commission to decide where 
people can freely walk across land has passed its first step 
through Parliament. The Walking Access Bill seeks to see the 
formation of the commission, which would clarify areas of the 
country that people can freely access, and what land they 
cannot. It follows several years of delay, because of 
opposition by farmers to an earlier plan to allow people to 
access waterways on private land. Labour MP Moana Mackey says 
there is no public agency available at the moment which can 
help landowners or members of the public who want to access 
waterways. The bill passed its first reading in Parliament 
easily, with only the Greens and ACT opposing it.

DHBS CONSIDERING OFFER FROM JUNIOR DOCTORS
-------------------------------------------

Junior doctors may not need to take strike action in order to 
get a pay increase. District Health Boards are deciding 
whether to accept a new employment proposal put forward by the 
Resident Doctors Association. The doctors have been seeking a 
10 percent salary increase for each of the next three years. 
Association spokeswoman Dr Lisa Edwards says it has been a 
very long process resolving the dispute with negotiations 
going on for a year. She says the offer is a significant 
compromise by junior doctors and she hopes strike action can 
be avoided. Dr Edwards cannot reveal the details before DHBs 
have made a decision.

Thursday, 17 April 2008
~~~~~~~~~~~~~~~~~~~~~~~

CUNLIFFE LABELS JUNIOR DOC DEMANDS "UNREASONABLE"
-------------------------------------------------

The Health Minister is taking a stand against the union 
representing junior doctors. Members of the Resident Doctors 
Association are due to strike next week over contract 
negotiations after mediation talks yesterday failed to make 
progress. Health Minister David Cunliffe says his ministry 
will not fold, to give Deborah Powell and her union double 
what any other union in the health sector has got. He says it 
does not matter whether the strike last two days or two 
months, the Government will not give in to such unrealistic 
demands. Mr Cunliffe says the strike is not necessary, and 
there has not been the kind of good-faith bargaining that he 
would expect. 
 
(While I am not explicitly supporting the Junior Doctors, I 
think the outrage expressed by the minister and the DHBs about 
the percentage change sought, is misplaced. Instead, they 
should address the absolute amount paid to each doctor, and 
see how it compares with their peers in similar countries. If 
they are unwilling to do that, the next step might be to ask 
why, in the words of economist Gareth Morgan, our most 
worrying loss of skills to Australia is in the form of medical 
graduates. - BH)

DEVASTATED F&P WORKERS PACK UP AND GO HOME
------------------------------------------

Staff at Fisher and Paykel's Dunedin plant have packed up and 
gone home, devastated with news they will lose their jobs. The 
company is axing 430 jobs at the Mosgiel site from April 1 
next year as manufacturing is moved to Thailand, Italy and 
Mexico. A further 310 jobs will be lost in Brisbane, while 330 
jobs will also go in California. Fisher and Paykel says the 
move will save it more than $50 million a year. Staff at the 
Dunedin plant were told of the job cuts at 10am. Head of 
Product Development in Mosgiel Daniel Witten-Hannah says its 
come as a huge shock. He says it is devastating because 
Dunedin workers have been committed to the company for a long 
time. Fisher and Paykel managing director John Bongard says 
the company has announced the move a year out from the 
closure, because it wants to be up front with its workers. He 
says it will be offering counselling to staff as well as 
advice on future employment in Dunedin.

HUNDREDS OF F&P JOBS AXED IN DUNEDIN
------------------------------------

Hundreds of jobs are set to be axed as Fisher and Paykel moves 
operations offshore to Thailand, Italy and Mexico. The move 
will affect 430 staff at the company's Dunedin plant. Another 
310 jobs will be lost in Brisbane, while a further 330 jobs 
will go in California. The changes will happen over the next 
12 to 18 months. Fisher and Paykel says the financial benefits 
of its global manufacturing strategy are expected to be in the 
vicinity of $50 million a year Chief executive John Bongard is 
blaming manufacturing cost increases for the move, which is 
planned for the start of the company's next financial year. 
"This is a very emotional day for the company. We have been a 
substantial manufacturer in New Zealand for almost 70 years 
and a producer in Australia for nearly 20 years," says Mr 
Bongard. "It is with real regret that we are forced to make 
these relocation announcements, even though they are 
commercial imperatives for the business." The company's 
Auckland-based refrigeration plant, Sales and Marketing team, 
Customer Care Centre, Finance Company and head office will 
stay, employing over 1600 people.

NATIONAL THREATENS TO SCUTTLE MFAT PLANS
----------------------------------------

Foreign Minister Winston Peters is taking full credit for the 
cash windfall promised for the Ministry of Foreign Affairs and 
Trade over the next five years, but National is threatening to 
block the funding if it wins the election. More than half a 
billion dollars will be allocated to MFAT's operational budget 
and there will be a cash injection of $100 million which will 
see overseas staff numbers increase by 50 percent. Mr Peters 
says it could not have been done without a prime minister who 
understands the importance of an effective foreign service and 
a finance minister who is prepared to fund it. Mr Peters says 
he knew long before he took the job that the foreign service 
was under-resourced. However, National Party leader John Key 
believes there are higher priorities for that level of 
spending. With National's plan to cap the number of public 
servants, he hints that the staffing boost may not go ahead 
under a National government.

REVIEW OF OUTDOOR EDUCATION GUIDELINES
--------------------------------------

The Education Minister says school guidelines on outdoor 
education may need to be strengthened following the deaths of 
the six secondary students and 29-year-old teacher Tony 
McClean who were caught in Tuesday's flash flood on the 
Mangatepopo Stream in the central North Island. Chris Carter 
has called for an urgent review of the guidelines and expects 
a report in a few weeks. The guidelines have not been reviewed 
for five years. Mr Carter says the tragic canyoning incident 
at Tongariro involving the group from Auckland's Elim 
Christian College may be a one-off, but he wants parents to be 
reassured that students are as safe as they can be when they 
are on outdoor education courses. The families of the victims 
are rallying around one another for support. Maria Mulder is 
the aunt of 16 year-old Anthony Mulder and stayed up most of 
Tuesday night waiting for news. She says it is important to 
grieve, comfort one another and keep going. Christian network 
Rhema says another of the victims was well-know to the 
network's listeners. News editor Allan Lee says Natasha Bray 
and her parents were regular contributors and Natasha was 
recently interviewed for a programme. He say she was bright, 
clever and a real role model. He says the network feels a 
sense of loss despite only knowing her as an interviewee. Mr 
Lee says the Christian community is small enough that 
everybody will know someone directly or is a friend of a 
friend. Buckland's Beach Football Club's senior teams will 
wear black armbands this weekend and observe a minute's 
silence before the games in honour of Floyd Fernandes who 
played for the club. Elim College is expected to hold a 
service for the students and Mr McClean after their funerals 
next week.

ACT SAYS TAGGING LAWS ALREADY EXIST
-----------------------------------

New laws punishing taggers in South Auckland are being 
labelled a waste of time because laws already exist to combat 
the problem but are ignored. The Control of Graffiti Bill bans 
the sale of spray paint to those aged under 18 and introduces 
fines of up to $2,000 for people who are caught tagging in the 
area governed by the Manukau City Council. The bill easily 
passed its final reading through Parliament last night, but 
ACT leader Rodney Hide voted against it, saying there are 
already laws in place which just need to be enforced. However, 
Labour's Manukau East MP, Ross Robertson, says the 300,000 
incidents of graffiti in Manukau each year will now be a thing 
of the past. He says the new laws are a chance to defeat what 
he calls the ugly, odious expression of gangland marking and 
in-your-face bravado. The Government originally opposed the 
bill, but changed its mind and used it as the basis of its own 
anti-tagging proposal announced earlier this year. It plans to 
introduce the legislation nationwide later in the year.

Friday, 18 April 2008
~~~~~~~~~~~~~~~~~~~~~

ANOTHER FINANCE COMPANY GOES INTO RECEIVERSHIP
----------------------------------------------

Kiwi Finance has gone into receivership. PriceWaterhouse 
Coopers was called to go through the New Plymouth company's 
books on Tuesday. It is still not known how much money it owes 
and how many investors will be affected.

SPOTLESS WILL COUGH UP
----------------------

Spotless is stumping up with extra money to resolve the pay 
dispute with its hospital cleaning staff - averting planned 
strike action. The company says it met with District Health 
Boards earlier this week. It says that meeting saw an 
agreement on ending a funding shortfall. Spotless Healthcare 
General Manager, Mark Russell, says the agreement means all 
staff can now be paid the new rates - and those who are 
eligible will receive back pay.

GREENHOUSE GASES 26% HIGHER
---------------------------

New Zealand's greenhouse gas emissions are continuing to rise. 
An Environment Ministry report reveals emissions for 2006 
totalled 77.9 million tonnes, an increase of half a million 
tonnes from 2005. In terms of the Kyoto Protocol, it means New 
Zealand's emissions are now 26 percent higher than they were 
in 1990. The agricultural sector remains the largest 
contributor accounting for 48 percent of all emissions. It is 
followed by the energy sector on 44 percent, and industrial 
processes on five percent.

FINANCE MINISTER DEMANDS HONESTY
--------------------------------

The Finance Minister is demanding honesty from his political 
opponents over pressures facing the economy. It comes as ACT 
joins National in blaming Government policy for Fisher and 
Paykel closing its Mosgiel Plant and moving its manufacturing 
offshore. Michael Cullen says the reality is we are facing 
serious challenges from overseas including the fall out from 
the sub-prime mortgage crisis and a weak US dollar. He says 
affected workers do not need politicians scrambling to 
apportion blame in a difficult situation just to try to score 
political points. Dr Cullen says they deserve an honest 
discussion from political leaders.

GREENS PREDICT RECESSION
------------------------

The Greens fear the economy is about to go into a recession 
with more job losses to come. This follows an announcement 
from Fisher and Paykel it plans to lay off 430 staff, ANZ 
National Bank moves to outsource 500 jobs to India, and there 
will be 50 job losses with the closure of Tamahine Knitwear. 
Green MP Sue Bradford fears yesterday's announcements are just 
the beginning of an ongoing recession and says she has heard 
of other manufacturers laying off staff 30 or 40 at a time. 
She says the Government should urgently look at its overall 
economic policy direction.

HIGH COURT CLEARS TELECOM
-------------------------

The High Court has found Telecom did not use its dominant 
position in the market place over a long running row with 
Commerce Commission. The Commission alleged Telecom sought to 
prevent or deter competitive conduct when it introduced its 
0867 package in 1999. At the time, Telecom made the service 
available to other network operators, but only if it did not 
have to cover charges relating to those calls. The court has 
found that Telecom did not break the Commerce Act when it 
started its fixed line retail telephone services.

ASSURANCE OFFERED TO COMMUTERS
------------------------------

Wellington commuters are being reassured they are not going to 
be hit with a congestion charge any time soon. The idea was 
raised in August last year in a report to the Regional Council 
as one way of solving peak-hour traffic jams, and boosting the 
use of public transport. But Peter Glensor from the Council's 
Transport and Access Committee says nothing further has been 
done since then, so he was surprised to see it on the front 
page of this morning's Dominion Post newspaper. He says he is 
worried commuters will think a congestion charge is about to 
be announced, when there is nothing at all on the table at the 
moment calling for one. 
 
(However, both Mr Glensor and Ms Wilde said on radio that they 
wanted a law change to permit such charging. Yeah right. 
Neither of them will be on my list of candidates at the next 
local body election. - BH)

RSA'S DISGUST AT POPPY THEFT
----------------------------

Thieves who stole 6,000 RSA poppies are being described as 
low-lifes. The poppies were taken from the RSA in Takapuna, on 
Auckland's North Shore, sometime over the weekend. Local 
president Michael Murphy says the theft was well planned, with 
the thieves first knocking out security cameras. He is worried 
the stolen poppies might be used by thieves to fleece 
unsuspecting members of the public. Today is the only day the 
RSA is on the street collecting poppy donations, and Michael 
Murphy believes the thieves will try to use the fund-raising 
items outside the Takapuna area. The thieves also took 
official collectors' badges, stickers and buckets. Mr Murphy 
says it is disgusting that someone could steal from a welfare 
fund, and try to make money out of the poppies.

TAXIS GET ACCESS TO WELLINGTON BUS LANES
----------------------------------------

Wellington's rush hour traffic is expected to become even 
slower on some main routes, following a city council decision 
to allow taxis to use bus lanes. The initiative will be 
trialled for a year along Adelaide and Kaiwharawhara Roads and 
Glenmore and Chaytor Streets, in preparation for the creation 
of similar lanes on other roads. Green cabs manager Callum 
Brown says the move is likely to shave at least five minutes 
off the average taxi ride along those routes, but motorists 
may not be so happy. He says merging back into regular traffic 
could make it slower for drivers. Callum Brown estimates more 
than 20 taxis an hour would make use of the lanes. Meanwhile, 
NZ Bus CEO Bruce Emson says he has major concerns about the 
move. He says taxis generally pick up and drop off, and if a 
car stops in front of a bus while it is trying to get to the 
next stop it could create a serious hazard. Bruce Emson says 
there is also the potential buses will get behind schedule 
because of the extra traffic in their lanes.

F & P RIPPLE EFFECT WORRIES FOR OTAGO
-------------------------------------

Otago's Chamber of Commerce is concerned at the flow-on 
effects from the loss of the Fisher and Paykel manufacturing 
plant in Mosgiel. The company is making 430 people redundant 
when the operation shuts down in 12 months. Chamber of 
Commerce Chief Executive John Christie says downstream job 
losses and the loss of a flagship company will hurt the 
region. He says Fisher and Paykel has long been held up as an 
icon for being innovative, and treating its staff well. Mr 
Christie says to lose that knowledge and those people from the 
economy will have far-reaching consequences. There is also 
concern at the long term prospects for 500 F & P manufacturing 
jobs in Auckland. The city's Chamber of Commerce says despite 
assurances, it is likely the refrigeration production facility 
will eventually move offshore. Chief Executive Michael Barnett 
says Fisher and Paykel has said it is staying in the short-
term. Mr Barnett says what you can probably read into that is 
if the cost pressures continue to rise, F & P is going to have 
no option but to move to a friendlier manufacturing market. 
The Greens are citing the signing of Free Trade Agreements as 
a reason for Fisher and Paykel's move. But Trade Minister Phil 
Goff says he appreciates the commercial reasons for the 
decision, given all of the company's competitors are 
manufacturing in low cost countries. He says he regrets what 
has happened, and thinks the focus should now be on helping 
the workers. Mr Goff says labour cost advantages in developing 
countries will exist whether New Zealand seeks future FTAs or 
not. New Zealand First is taking a 'we told you this would 
happen' attitude. Most of the production currently carried out 
in Dunedin will shift to Thailand - a country which New 
Zealand has an FTA with. NZ First's Economic development 
spokesman, Doug Woolerton, says it is a tragedy that has been 
waiting to happen because of agreements New Zealand is signing 
up to. He says the message is not to sign agreements with low-
wage economies because New Zealanders will not benefit. 
Another 50 jobs will go in Dunedin in July, when Tamahine 
Knitwear shuts its doors, while ANZ is outsourcing more than 
500 jobs to India.

ASSURANCE OFFERED TO BANK STAFF
-------------------------------

ANZ National Bank is reassuring its New Zealand staff no jobs 
will be lost, despite proposing to move a chunk of its 
operation overseas. The bank has revealed around one percent 
of its processing and operational work may be shifted to 
Bangalore in India later this year. If the move is successful, 
up to five percent of the work could be moved offshore by the 
end of 2009. Chief executive Graham Hodges says any staff 
affected by the initiative will be offered suitable 
alternative roles. He says the move will increase the Bank's 
window of work to 16 hours a day, thanks to the time 
difference between India and New Zealand. Mr Hodges says the 
shift will happen over the next 18 months. He says it should 
help the bank provide a better service. He says part of the 
reason for the move is the current difficulty in finding staff 
with New Zealand's low unemployment rate. No customer-facing 
or contact centre roles will be included in the initiative. 
 
(I am told that similar assurances were offered to the 
Australian staff of the same bank. Only 38% of the staff 
replaced found new jobs within the bank. - BH)


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