WYSIWYG NEWS - 10 June, 2008

[news at wysiwygnews.com]

Subject: 10 June, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

It was as if someone was fiddling with the main weather 
circuit board. One day, the skies were clear and blue, and the 
glittering night sky was adorned with stars. The Southern 
Cross performed its majestic circling of the South Pole. The 
next day, with no apparent transition between perfect and 
awful, was bleak and blustery with low clouds scudding across 
the sky, and rain rattling at oblique angles on the windows. 
Gales from the Northwest and a lot of rain, little of it 
useful for our hydro lakes. The ground underfoot was damp and 
muddy, and the wet roads were sometimes littered with leaves 
and scraps of branches blown off trees. Then the unknown 
fiddler took the weather to a different level, and the wind 
machine spooled up in reverse until our house was shuddering 
in the icy blast of a Southerly gale. Again, with little 
warning the new day began in utter stillness with a clear pale 
sky in the East throwing into silhouette the Eastern Hills and 
the taller ranges beyond. As the sun got into the sky, the 
morning light revealed a crisp white frosting of snow on the 
tops from the Tararuas all the way down to Pencarrow. By mid-
day the benign warmth of the sun disposed of most of the snow 
and the landscape looked brand new, or at least freshly 
laundered. In just such variable conditions as these, a young 
Polish tramper Jacek Gryzbowski, 28, set out for a day tramp 
in the Rimutaka State Forest Park on 31 May. When he failed to 
return, search and rescue staff, police and civilians, spent 
most of the week looking for him, knowing that he was 
relatively lightly clad, and ill-equipped for a prolonged stay 
in the bush in such conditions. Tragically, the searchers 
found him exactly a week later on Saturday, trapped in a log 
jam in the Turere Stream deep in the park, apparently the 
victim of suddenly rising water while attempting to cross the 
stream. The surrounding terrain is so rugged that an Army 
Iroquois helicopter was needed to retrieve the body and the 
searchers who had gone in. His parents, Piotr and Anna 
Gryzbowski were flying into Wellington to be near the scene of 
the search, and were met with the awful news of the death of 
their only son. I know that the hearts of Wellingtonians and 
most New Zealanders went out to them. It is a reminder that 
though the bush looks beautiful, it can kill. With my family, 
I came to Wellington in 1980, and I think it was that year 
there was a sudden cold snap at Labour Weekend, and several 
runners not dressed for the sudden change died of hypothermia. 
It is sometimes necessary to remind visitors, and ourselves, 
that despite the lack of predators from the animal kingdom, it 
is still possible to die in our beautiful outdoors. Mr and Mrs 
Grzybowski have visited the park where their son died, and at 
a time when they should have been celebrating his 29th 
birthday, will take him home to Poland for interment. Those of 
us who are of a praying disposition will keep them in our 
hearts. 


----  
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 R Woodbury. Thanks very 
much.
----  
On with the News. 

Monday, 2 June 2008
~~~~~~~~~~~~~~~~~~~

GREENS' DISCOUNTED DAIRY PRODUCTS PLAN SLAMMED
----------------------------------------------

Moves to get Fonterra to sell dairy products at a discount for 
New Zealand consumers have found no favour with National. The 
Green Party has called on the dairy giant to provide some 
relief for consumers, during its annual conference in Auckland 
over the weekend. National's Agriculture spokesman David 
Carter is not a fan of the idea. He says the international 
market sets dairy prices, and it is not the job of dairy 
farmers to subsidise consumers. Mr Carter is also critical of 
the Greens' proposal to levy major water users. He says a tax 
aimed at hitting the dairy industry, and will do nothing to 
ensure sensible or rational use of water resources. ACT is 
also saying hard cheese to the Green Party's proposals on the 
price of domestic dairy products. Leader Rodney Hide finds it 
sickening a company like Fonterra, that creates wealth for the 
country, is being attacked in this way. He says if successful 
firms are targeted New Zealand will only end up poorer than it 
is already, and further behind its competitors. 
 
(I am intrigued that any modern party wants to rob the farmers 
of the return on their investment. If you want cheap milk, buy 
your own cow. - BH)

TOUGH TALK FROM GREENS OVER COALITION PARTNER
---------------------------------------------

The Greens are adopting a get tough approach, as they position 
themselves ahead of the election. The party is not committing 
itself just yet to who its preferred post election coalition 
partner might be, and has launched salvoes against the 
environmental policies of both Labour and National. Party co-
leader Russel Norman says it is not about punishing anyone but 
about being realistic as to how politics works. He says the 
Greens have to be tough, stand up for themselves, and not be 
anyone's lackey. Russel Norman says they will judge Labour and 
National on their policies and if they make progress they will 
work with them.

(I am not sure why Chihuahuas come to mind. - BH)

AGED CARE PROVIDERS BEMOAN LACK OF FUNDING
------------------------------------------

The industry body for rest homes and geriatric care facilities 
is warning of increased industrial action in the sector. 
Healthcare Providers says the blame lies with District Health 
Boards, for holding back funding from the aged care subsidy. 
Chief Executive Martin Taylor says the DHBs are offering an 
inflation adjustment of 2.8 percent, while inflation is 
running at 3.5 percent. He says providers have told him in no 
uncertain terms that wage expectations from caregivers far 
exceed the increase in funding. Martin Taylor says unions are 
asking for between five and seven percent, and there is no way 
those demands can be met. He says this will lead to increased 
industrial action and disruption to those in aged care. 
 
(The caregivers in rest homes are for the most part on minimum 
wages. It is a job that would drive me to despair, and I am 
grateful to all those who do this work. - BH)

Tuesday, 3 June 2008
~~~~~~~~~~~~~~~~~~~~

MOVEMENT ON POWER SAVING PLAN URGED
-----------------------------------

National is calling for an immediate power savings campaign as 
hydro lake levels continue to drop. Currently storage levels 
are 53 percent of average and inflows are also low at 68 
percent of normal levels. National Party Energy spokesman 
Gerry Brownlee says those figures are worse than what they 
were in 2003 when at the time a full blown conservation 
campaign was underway. The Government is due to announce 
possible power saving measures in a fortnight if there is no 
significant rainfall. Mr Brownlee is urging action now. He 
says if there are to be shortages later in the year they could 
possibly be averted by taking early action.

POLITICAL BROADCASTING FUNDING ANNOUNCED
----------------------------------------

The Electoral Commission has announced the funding split for 
political party broadcasting for the election. Labour and 
National each get $1 million from the total $3.2 million pool. 
The Green Party, the Maori Party and New Zealand First receive 
$240,000 each, while ACT, the Progressive Party and United 
Future each get $100,000. Other registered political parties 
outside of Parliament get $10,000, plus a $7,000 package to 
cover the cost of their opening campaign address.

BANKS QUEUES LESSEN AS PEOPLE GO ONLINE
---------------------------------------

The ease of accessing banking services after hours has seen a 
big jump in New Zealanders embracing online banking. A Nielsen 
survey shows a 62 percent jump in internet banking over the 
past three years. Telephone banking has also risen, up 13 
percent, while branch visits are down 23 percent. Nielsen 
spokesman Donald Sheppard says most branch visits are now for 
deposits and people seeking banking advice. He says the 
changes reflect busy lifestyles. Mr Sheppard says there are 
people who are still wary of electronic banking, but most are 
learning to trust its security measures. 
 
(The fees imposed for using tellers may have helped? - BH)

SLEEPING PROBLEMS BELIEVED TO BE UNDER-DIAGNOSED
------------------------------------------------

A sleep disorder expert says the under-diagnosis of sleep 
apnoea could have serious implications for sufferers. New 
research from the Thoracic Society suggests sleep apnoea, 
where the airways are blocked, affects about four percent of 
the population and costs the country at least $40 million a 
year. Christchurch sleep specialist Dr Michael Hlavac says the 
number of people impacted is probably a lot higher, because 
the disorder is under-diagnosed. He believes tens of thousands 
of people suffer from sleep apnoea and it is important they 
see a doctor, because it can lead to serious health problems. 
Dr Hlavac says the side effects of the disorder can be 
dangerous. He says it can lead to hypertension, diabetes, 
cardiovascular disease and respiratory failure. Another sleep 
expert, Dr Alister Neill from Otago University, says obesity 
is linked to sleep apnoea. He says prevalence is three times 
higher among Maori and Pacific Island people and those from 
lower socio-economic areas.

NEW DATES SET FOR HUMANS IN NZ
------------------------------

New research into carbon dating of Polynesian rat bones has 
proven New Zealand was not visited by humans 2,000 years ago 
as some previous studies suggest. An international team has 
spent four years on a project that has proven the earliest 
evidence for human colonisation is about 1280 to 1300 AD, and 
no earlier. The team led by Landcare Research re-excavated and 
redacted kiore bones and rat-gnawed native seeds from 
previously investigated sites. Previous research had 
controversially suggested much earlier human habitation but it 
was not supported by any archaeological evidence.

SEMINAR HOPES TO DISPEL HERPES MYTHS
------------------------------------

The organisers of a seminar in Wellington tonight hope to 
dispel many of the myths surrounding herpes. Claire Hurst from 
the New Zealand Herpes Foundation says the message they are 
trying to get across is that herpes is common, manageable and 
treatable. She says herpes affects hundreds of thousands of 
New Zealanders, but many people are distressed when they are 
diagnosed because of the stigma surrounding it and the amount 
of misinformation that exists. Ms Hurst says it is simply a 
skin condition 'down there', and when people get the right 
information about the condition, they find it very empowering. 
She says having herpes is not about being bad or dirty but is 
more to do with being sexually active and normal. The seminar 
starts at 7pm at the Mercury Hotel, Willis St.

GROUP FIGHTS CHILD SUPPORT CREDIT
---------------------------------

One of the Government's child support payments will be 
challenged in the Human Rights Review Tribunal in Wellington 
today. The Child Poverty Action Group is arguing the in-work 
tax credit payment discriminates against children whose 
parents are not working. The Working for Families' $60 a week 
payment to parents with up to three children and $15 a week 
for each additional child is available to single parents who 
work at least 20 hours a week, and two-parent families who 
work at least 20 hours a week between them and do not receive 
an income-tested benefit. Child Poverty Action Group 
spokeswoman Donna Wynd says it should not matter whether or 
not the parent is working because the cost of raising a child 
is still the same. She says such discrimination leaves around 
150,000 children in poverty. Ms Wynd says her group believes 
child benefit payments should not be used as a work incentive. 
The group will argue that the credit breaches the Human Rights 
Act and the International Covenant on Civil and Political 
Rights. The Government will be calling witnesses to defend the 
tax credit.

NZ BUSINESSES LAX ON DETECTING FRAUD
------------------------------------

Businesses are being warned to increase fraud detection 
measures as New Zealand is ranked in the lower third of 34 
countries surveyed on fraud detection. The International 
Business Report carried out by accountancy consultants Grant 
Thornton has found that fewer than a third of privately-owned 
businesses have anti-fraud measures in place and by world 
standards New Zealand does not show much awareness of the 
problem. Spokesman Peter Sherwin says as the global economy 
weakens and jobs come under threat, the temptation to commit 
fraud could increase. He says the lack of support for 
potential whistle blowers is also alarming. ?It may be a sign 
of reluctance to rock the boat in mid-sized companies that 
have smaller workforces, closer boss-and-staff relationships 
and other such issues to consider. But the effect on smaller 
companies of rorts and malpractice can be of greater magnitude 
than in corporates, in some cases potentially having the 
ability to bring down a business, so it is surprising that 
more private companies do not have systems in place to support 
whistle blowers.? Mr Sherwin says one factor that could be 
influencing businesses is the inherent kiwi attitude of not 
wanting to see ?dobbing in? develop as a norm. The survey says 
processes should be adopted to ensure potentially fraudulent 
activity is caught in the early stages.

FARMERS WANT WATER LEVY DEBATE
------------------------------

Federated Farmers relishes the prospect of a debate over a 
levy for commercial water use. The Green Party has proposed 
the tax aimed predominantly at farmers who use rivers and 
streams for irrigation. But Charlie Pedersen, Federated 
Farmers president, says if farmers have to pay for water they 
should be able to charge others for the rain water that flows 
from their farms into streams, rivers and aquifers. He says 
most farms over the year would receive twice as much rainfall 
as they would ever use for irrigation and farmers could 
actually be sellers of water. Mr Pedersen believes it is a 
debate the country needs to have.

Wednesday, 4 June 2008
~~~~~~~~~~~~~~~~~~~~~~

INTEGRITY OF IMMIGRATION TO BE PROBED
-------------------------------------

The integrity of Immigration New Zealand staff will be 
included in an investigation into the department by the 
Auditor-General. Kevin Brady has released the terms of 
reference for his inquiry, which was sparked by claims former 
immigration boss Mary-Anne Thompson helped family members from 
Kiribati gain visas. Ms Thompson has since resigned from the 
department, amid concerns about the validity of her claimed 
PHD from the London School of Economics. Mr Brady will look at 
the recruitment of Ms Thompson. He will also investigate the 
integrity of Immigration New Zealand, particularly within its 
Pacific Division, as well as concerns involving senior staff. 
Further to that Mr Brady will also examine how concerns about 
integrity within the department were managed and just who was 
aware of them - up to a ministerial level. The investigation 
will not determine any criminal liability, nor will it 
overturn previously made immigration decisions or consider the 
state of current immigration policy. Immigration Minister 
Clayton Cosgrove is satisfied with the terms of reference, 
describing them as wide ranging and in-depth.

ELECTRICITY PRICES HIGHER THAN EVER BEFORE
------------------------------------------

The Major Electricity Users Group says the electricity spot 
prices from May are the highest ever recorded.  Executive 
director Ralph Matthes says there is an immediate need to 
conserve power or risk blackouts and jumps in power bills. He 
says the record high spot prices are an indication that the 
market considers the electricity supply is in a riskier 
situation than in any prior crisis. Mr Matthes says policies 
which undermine future security of supply, such as a ban on 
new thermal generation, need to be reviewed.

RENT AN OPERATING THEATRE PROPOSAL "NONSENSE"
---------------------------------------------

A Hutt Valley District Health Board member says Treasury's 
idea that Hutt Hospital should rent operating theatres from 
Wellington Hospital is nonsense. The DHB has been waiting six 
months for approval from the Health Minister for an $80 
million redevelopment, which has already passed two Ministry 
of Health reviews and a financial audit. Now Treasury suggests 
it should instead use two theatres that will not be required 
by Wellington Hospital once a new regional hospital is up and 
running. Board member Peter McCardle says the suggestion is 
nonsense. He says you can only imagine the inefficiencies and 
problems that would arise from having patients and staff 
travelling in and out of Wellington.

(Happily, it was ultimately quashed. The notion that a set of 
theatres too old and weary to be allowed to continue in use 
for Wellington Hospital would be good enough for the Hutt 
Valley is madness. People who propose such things should have 
the courage to stand up and identify themselves - BH)

WORLD FOOD PROGRAMME GETS $7M IN NZ AID
---------------------------------------

New Zealand has announced its biggest aid package since the 
Boxing Day Tsunami to help feed millions of people who are 
starving because of rising food prices. The United Nations 
World Food Programme will receive $7 million, which focuses on 
feeding people in life or death situations, particularly women 
and children. The Government is also contributing $2.5 million 
to the Consultative Group for International Agricultural 
Research for a longer term response. It will help developing 
countries make the most of their agricultural resources.

RESTRICTIONS WANTED ON FAST FOOD
--------------------------------

The Government is being urged to restrict the marketing of 
fast foods to help reduce New Zealand's growing weight 
problem. The Portrait of Health 2006/2007 survey has found the 
rate of obesity in adults continues to increase. It shows 36 
percent of adults are overweight and one in four are 
considered obese. Robyn Toomath from the group Fight the 
Obesity Epidemic says the survey also shows that more people 
are consuming fast foods. She says the Government needs to 
ensure that healthy food choices are the cheaper and easier 
option for people to get hold of. She says measures put in 
place to help slow down the sale of tobacco, should be 
implemented in a similar way for junk food. Dr Toomath says 
marketing restrictions and price increases are important for 
all unhealthy foods. Dr Toomath says 68 percent of children 
have a body mass index considered normal, which she says is 
not high enough. She says New Zealand does not want to head 
down the same path as America, which has an even more serious 
obesity problem. The survey also shows more Maori smoke, are 
overweight, have poor nutritional behaviour and hazardous 
drinking patterns. Bev O'Keefe from the Independent 
Practitioners Association Council says it is disappointing 
that all the Government's efforts to try to reduce 
inequalities are not working, including reducing costs. Health 
Minister David Cunliffe says while there was an increase in 
the prevalence of obesity for adults between 1997 and last 
year, the rate of increase appears to be slowing. He says 
there are still significant risks with obesity, including 
cancer, heart disease and diabetes but he says the 
Government's Healthy Eating Healthy Action campaign is having 
an impact and is likely to be reviewed. 
 
(No matter how good her intentions, Dr Toomath was not elected 
and put in charge of over-riding personal responsibility. She 
is entitled to her opinion, but should have no more influence 
than that. I confess to being overweight, but that is none of 
Dr Toomath's business. - BH)

OLDER DRIVERS SENSIBLE ABOUT ABILITIES
--------------------------------------

The Automobile Association says many older drivers decide for 
themselves the time is right to stop driving, rather than wait 
to be declared medically unfit. A driver thought to be aged 
100 was involved in an accident in Wellington is likely to 
barred from driving by police. The person drove the wrong way 
up the Ngauranga Gorge for about two kilometres before 
colliding with another car. Mike Noon from the AA says since 
late 2006, drivers over the age of 75 have had to get a 
medical clearance every two years to continue driving. He says 
older drivers are traditionally cautious and many choose not 
to drive at night. Mr Noon says if a GP has concerns about a 
person's ability to drive safely, they can suggest they 
undergo a test at On-Road. 
 
(Most people I know who have discussed this have wondered at 
the circumstances in which a driver going North up the 
Southbound lane could accidentally gain entry to that lane at 
the bottom of the Ngauranga Gorge. - BH)

UN CRITICISES NZ OVER CARBON EMISSIONS
--------------------------------------

The United Nations says New Zealand must pull its weight and 
reduce carbon emissions. Tomorrow is World Environment Day, 
and Executive Director of the United Nations Environment 
Programme Achim Steiner is in New Zealand to make his views 
heard. He says the transition to a low-carbon global economy 
will be challenging, but is possible. Mr Steiner says per 
capita New Zealand is one of the highest producers of carbon 
in the world. "You have an agricultural sector that is in the 
New Zealand context a significant contributor of emissions. 
You have transport and therefore the footprint of every New 
Zealander is as relevant as someone in another country." Mr 
Steiner says China is one of the bigger contributors to 
climate change, with its population of 1.3 billion. World 
Environment Day celebrations commenced in Wellington last 
night with the Green Ribbon Awards recognising New Zealanders 
who have contributed to the environment. Dunedin primary 
school teacher Dean Schneider won the lifetime achievement 
award for his work in environmental education projects. The 
Urban Sustainability award was handed to the Waitakere City 
Council and the Business award went to The Langham Hotel in 
Auckland. Resene PaintWise and Auckland Zoo were also among 
the winners. New Zealand is this year's host of World 
Environment Day.

(Mr Steiner rightly suggests we have to take some 
responsibility, but if I understand it correctly, our entire 
output of carbon emissions is less than the daily variation of 
some countries. On a per head basis we have a problem. At the 
global level our output is insignificant. - BH)

NEW MOBILE CO MAY HAVE A HARD SLOG AHEAD
----------------------------------------

There is scepticism about the future of a company hoping to 
become the third mobile phone operator in New Zealand. New 
Zealand Communication has announced it is a step closer to 
entering the mobile market. It has appointed Singapore-based 
Mike Reynolds as its chief executive. He will relocate to 
Auckland. But independent telecommunications analyst Paul 
Budde says the company has been around for more than five 
years and has made very few major moves. He does not believe 
that the market situation has improved enough for the company 
to operate more effectively. Mr Budde says it will be a hard 
market to crack, considering most New Zealanders already have 
a mobile phone.

RATE OF OBESITY SLOWING
-----------------------

The tide may be turning in the fight against obesity. The 
Government is releasing the findings from a major survey on 
the health of the nation today. Data was collected from 17,000 
people in October and November last year and found New Zealand 
has more obese adults than ever but the rate of increase is 
slowing. There has been no change in the proportion of obese 
Maori adults, or in child obesity, which Health Minister David 
Cunliffe says is encouraging. The report will also reveal 
statistics covering a number of health behaviours, risk 
factors, health status and use of health services.

KIWIBANK OFFERS PIE ACCOUNTS
----------------------------

Kiwibank is leading the way in offering a range of savings and 
term deposit products that give a higher return through tax 
savings. The bank has tailored the new savings accounts to 
take advantage of the Portfolio Investment Entities rules that 
came into force last month. Kiwibank chief executive Sam 
Knowles says the effective rate of return for those in higher 
tax brackets is in some cases more than 10 percent. The 
maximum tax paid is at 30 percent so those in 33 or 39 percent 
tax bracket will be making more money. Mr Knowles says the new 
accounts give people the safety of having their money in the 
bank with the added advantage of paying less tax on the money 
they make.

Thursday, 5 June 2008
~~~~~~~~~~~~~~~~~~~~~

NEGOTIATION TERMS REACHED WITH AUCKLAND IWI
-------------------------------------------

Negotiation terms have been reached between the Crown and 
Auckland Iwi Ngati Whatua o Kaipara. The agreement clears the 
way for a settlement over the tribe's South Kaipara historical 
Treaty of Waitangi claims. They have already been subject to 
two Waitangi Tribunal reports and relate to Crown purchase of 
Ngati Whatua o Kaipara land and the operation of native land 
laws.

REPORT CLAIMS NZ A SEX TRAFFICKING DESTINATION
----------------------------------------------

New Zealand has been named as a destination country for women 
being trafficked for the sex trade. The mention comes in the 
US State Department's Human Traffic Report for 2008. It says 
women from Malaysia, Hong Kong, China and other countries are 
being exploited in the New Zealand sex industry. The report 
describes the numbers involved as "modest" and suggests the 
government should implement an anti-trafficking awareness 
campaign, directed at clients of the sex trade. 
 
(The State Department's periodic reviews of these matters are 
irritating, though probably factually correct. But I bet the 
entire NZ sex industry is smaller than that of any major city 
in the US, and that the exploitation of sex workers is no 
better at home than it is here. The righteous tone of the 
report is inappropriate. - BH)

PLAN FOR HOME-BUILT ELECTRIC CARS
---------------------------------

Electric cars could soon be built in New Zealand. The Carbon 
News website says engineer Ian Macrae is meeting with a UK car 
maker to set up a manufacturing consortium in New Zealand. Mr 
Macrae is a member of the Vehicle Energy and Renewables Group. 
Mike Duke from Waikato University says the project is looking 
promising. He says the idea is being developed without any 
Government funding.

PRIME APOLOGIZES OVER OFFENSIVE ADS
-----------------------------------

Prime TV admits it "stuffed up" by using discrimination to 
promote a new American comedy. Billboards for Madmen: The 
Glory Years of Advertising were placed in Auckland and 
Wellington. They have now been removed after complaints were 
made about the slogan "Advertising Agency Seeks: Clients. All 
business considered, even from Jews." Prime's director of 
communications Tony O'Brien says the billboards were meant to 
be provocative, but became offensive. He says the company is 
very sorry and has expressed its apologies to the Jewish 
community and written to the chairman of the New Zealand 
Jewish Council. Mr O'Brien says the TV series deals with 
archaic attitudes like sexism, smoking, drink driving, racism 
and the stigma that is attached to divorce.

(Unbelievable insensitivity. - BH)

GM CROP HEARINGS LATER THIS YEAR
--------------------------------

Hearings will take place in Christchurch later this year on an 
application to grow a range of genetically modified crops. The 
Environmental Risk Management Authority has received an 
application from the New Zealand Institute for Crop and Food 
Research to field test a range of GM onions, spring onions, 
garlic and leeks. It wants to plant the vegetables on 2.5 
hectares over 10 years. ERMA general manager New Organisms 
Libby Harrison says 123 submissions have been received on the 
application from a wide range of groups including community 
groups, iwi and scientists. She says that is significantly 
fewer than the 1,933 submissions received in 2003 in relation 
to an application to grow genetically modified onions. The 
public hearings are expected to take place in August or 
September.

INTEREST RATE CUT LATER IN THE YEAR
-----------------------------------

The Reserve Bank left interest rates unchanged but is offering 
a glimmer of hope for homeowners later this year. In leaving 
the official cash rate at 8.25 percent Reserve Bank Governor 
Alan Bollard said the economy is experiencing significant 
increases in oil and food prices which are happening at the 
same time as the global credit crisis. Those factors have 
slowed housing markets and produced an environment of weak 
activity and high inflation. Dr Bollard says he expects the 
annual CPI inflation to peak at 4.7 percent in the September 
quarter of this year. He says although that reflects higher 
food and energy prices, underlying inflation pressure also 
remains persistent. "Nevertheless, we do still expect 
inflation to return comfortably inside the target band over 
the medium term. This is based on the expectation that 
commodity prices stop rising, inflation expectations remain 
anchored, and weakening economic activity contributes to an 
easing in non-tradable inflation." Dr Bollard says the outlook 
for economic activity is weaker than the RBNZ's previous 
statement with little growth in GDP over 2008 and only a 
modest recovery next year, reflecting a weaker household 
sector. He says Government spending and personal tax cuts will 
offset lower growth but also add to medium-term inflation 
pressure. The bank says that provided the economy evolves in 
line with its projection, it is likely to be in a position to 
lower the OCR later this year, which is sooner than previously 
envisaged.

OCR UNCHANGED
-------------

In news just to hand, Reserve Bank Governor Alan Bollard has 
left the official cash rate unchanged at 8.25 percent. He has 
had to weigh up conflicting economic pressures. Inflationary 
pressures are coming from higher oil and food prices, higher 
than expected tax cuts and the increased Fonterra payout to 
farmers, but have to be balanced against the housing market 
slump, rising job losses and declining business and consumer 
confidence. While the Reserve Bank stayed its hand this 
morning, many analysts are picking an interest rate cut is on 
the cards for September if the domestic economy continues to 
show signs of slowing.

FUNDING HELPING PACIFIC/MAORI HEALTH ISSUES
-------------------------------------------

The Health Research Council has handed out $63 million for 
research into key issues, benefiting 57 projects. Council 
chief executive Robin Olds says several of the projects look 
at health issues affecting Pacific Islanders. Projects will 
also look at issues concerning Maori, children and people with 
disabilities. Mr Olds says the standard of research proposals 
has been very high and only around a fifth of applications 
received funding.

BIOFUEL PLANE TEST LATER THIS YEAR
----------------------------------

Air New Zealand aims to have at least 10 percent of its fleet 
running on environmentally sustainable fuels within five 
years. A test flight of a Boeing 747-400 fuelled with second 
generation biofuel extracted from the jatropha plant will 
depart from Auckland in August or September. Rob Fyfe, Air New 
Zealand CEO, says the airline is growing increasingly 
confident that commercial quantities of environmentally 
sustainable fuels that meet all the airline's stringent 
criteria will become available over the next few years. He 
says studies have already shown that sustainable fuels can 
lead to a significant reduction in carbon emissions with a 40-
to-50 percent lower carbon footprint on a life-cycle basis. Mr 
Fyfe says jatropha is unlikely to be the only fuel that Air 
New Zealand tests. The jatropha oil Air New Zealand is 
sourcing comes from South Eastern Africa (Malawi, Mozambique 
and Tanzania) and India and the airline says it was sourced 
from seeds grown on environmentally sustainable plantations. 
Jatropha is a plant that grows to approximately three metres 
high and produces seeds that contain inedible lipid oil that 
is used to produce fuel. Each seed produces between 30 and 40 
percent of its mass in oil and jatropha can be grown in a 
range of difficult conditions, including arid and non-arable 
areas.

TOMATO GROWERS FEAR BIG LOSSES
------------------------------

Growers estimate that if MAF does not quickly complete its 
investigation into a disease found on tomatoes and capsicums, 
it could cost the industry more than $40 million in export 
losses. Exports of the produce have been halted while MAF 
Biosecurity investigates a new disease-causing bacterium found 
in three North Island hothouses. At this stage MAF believes 
the bacterium is spread by a small insect called the 
tomato/potato psyllid, but does not know where it came from or 
how widespread it is. Tony Ivicevich, chairman of the Fresh 
Tomato Product Group, says the impact on growers depends on 
how quickly MAF finds out more about the pest. He says total 
tomato exports are valued at more than $7 million and capsicum 
exports $34 million. Mr Ivicevich says if MAF has not 
completed its investigation by September when the main growing 
season gets under way, it could mean big losses for the 
industry. The bacterium causes leaf curling and yellowing and 
stunts the plants' growth. There are not believed to be any 
health issues for consumers associated with eating the 
infected produce.

Friday, 6 June 2008
~~~~~~~~~~~~~~~~~~~

AIR NZ FARES RISE AGAIN
-----------------------

Air New Zealand is again raising its domestic and 
international fares. Domestic airfares and international 
airfares sold in New Zealand, Australia and the Pacific 
Islands will rise by an average of four percent. Domestic and 
short haul international increases are effective from June 16, 
with long haul increases expected from June 20. The airline's 
service between Japan and New Zealand during September and 
October will be reduced from nine to eight flights a week. 
Chief executive Officer Rob Fyfe says with jet fuel prices 
remaining at very high levels, it is critical the airline 
recovers its significantly increased operating costs.

FERTILISER PRICES AT RECORD HIGH
--------------------------------

Another blow for cash-strapped farmers struggling to recover 
from drought earlier this year. Just when it seemed things 
could not get much worse, they are about to be hit by the 
nation's largest fertiliser price rise on record. The cost of 
superphosphate is projected to lift by 77 percent from $270 to 
$480 a tonne. The price hike is being put down to soaring 
costs off shore. To add to the woes, there does not appear to 
be any relief on fuel costs in the near future. The declining 
New Zealand dollar has offset the recent drop in the world 
price of oil, meaning there is unlikely to be a drop in petrol 
prices any time soon.

WHITCOULLS BUYS BORDERS FOR $140 MILLION
----------------------------------------

There is a major move in the bookstore market, with 
Whitcoulls' buying out Borders. It has received the necessary 
consent to take over Borders' assets and have the exclusive 
use of its trademarks in New Zealand and Australia, as well as 
in Singapore. The deal is worth almost $140 million and is 
expected to be finalised early next week. Whitcoulls says it 
sees the Borders chain as complimentary to its own stores, as 
it targets a different demographic. It says it is pleased to 
bring the businesses together and is excited about the 
opportunities it presents. The existing Borders management 
will remain in place.

SLIM CHANCE OF LAKE LEVELS RISING SOON
--------------------------------------

An hydrologist believes there is a slim chance hydro-lake 
levels could rise in the next couple of weeks. MetService is 
forecasting a storm this weekend bringing gale force winds, 
rains and snow to regions of Canterbury through to Southland 
over the next few days. Hydrologist Dave Stewart says in 
southern regions, a storm bringing 50 to 100 millimetres of 
rain is needed to soak the ground, followed by another bout a 
few days later that runs off to reach the lakes. He says 
another rainstorm is predicted for Wednesday or Thursday next 
week, but that is quite a gap between rainfall episodes. Mr 
Stewart says if the second bout of rain does come, it could 
fall on a reasonably wet catchment.

INFLATION POLICY NOT WORKING SAYS BERL
--------------------------------------

The Reserve Bank is being told its policy of targeting 
inflation has failed and should be dumped. Independent 
economic research firm BERL says the bank expects inflation to 
climb to peak at 4.7 percent later this year, well above the 
three percent cap it has been trying to maintain. Senior 
economist Ganesh Nana says the headlong pursuit of inflation 
control has not worked. He says every time inflation gets 
above three percent, job cuts result. Dr Nana says it now 
looks like the economy is in for four years of job destruction 
which he says is a damning indictment of the failure of 
inflation targeting. He says it is time to adopt an investment 
and export friendly environment that aims for income gains to 
develop sustainable productivity.

REAL ESTATE AGENTS DOUBT 13% PRICE DROP
---------------------------------------

The Real Estate Institute says it will be surprising if house 
prices fall 13 percent from their peak six months ago. The 
Reserve Bank made the call in its latest monetary policy 
statement yesterday. But institute president Murray Cleland 
believes the bank is speculating. He says a clearer picture 
will emerge next week when the institute's latest figures are 
released. Mr Cleland says the national median price is holding 
up. 
 
(I wonder if many of my readers are old enough to recognize 
the "Mandy Rice-Davies" gambit - "well, he would, wouldn't 
he?" - BH)

OIL DROPS BUT FUEL PRICES WON'T FOLLOW QUICKLY
----------------------------------------------

Motorists should not expect an immediate cut at the pump, 
despite the fall in international oil prices. The price of a 
barrel of crude fell below $US123 a barrel yesterday after 
hitting a record high of $US135 dollars on May 22. It has 
inched up a little this morning, rising to $US124. AA 
spokesman Mark Stockdale says the international price will 
probably have to drop even further before there is a reduction 
at the pump, as other factors have to be taken into account. 
They include the exchange rate which also fell last week 
wiping out gains made by the fall in the price of crude. The 
New Zealand dollar has slipped a further 1.5 cents since the 
Reserve Bank's monetary policy statement yesterday. 

(As I understand, the drop didn't last long anyway. Funnily 
enough I was reading some escapist fiction the other day in 
which all kinds of government sponsored mayhem was carried out 
because the public would never stand for oil prices above $35 
bbl. - BH) 

WORKERS SHOULDN'T FOREGO PAY RISES - UNIONS
-------------------------------------------

The Reserve Bank is warning it will be forced to lift interest 
rates if wage negotiations rise above three percent. The 
central bank is required to keep inflation within 1-3 percent 
over the medium term but in yesterday's monetary policy 
statement, Governor Alan Bollard warned that inflation is 
likely to hit 4.7 percent and he does not want wage rises to 
reflect that. Andrew Little from the Engineering, Printing and 
Manufacturing Union says workers should not be expected to 
forgo pay increases to keep inflation in check. He says 
employees need to keep up with the cost of living and wage 
negotiations tend to look at the inflation rate as a factor to 
lift wage margins in real terms. Mr Little says the demand to 
lower wage claims shows just how inadequate the current method 
of controlling inflation is. He says a clamp on wage rises 
would be a double blow to workers struggling with increasing 
prices.

VIRTUAL HORSE RACING CONCERNS PROBLEM GAMBLERS
----------------------------------------------

Problem gambling campaigners are not impressed by the idea of 
virtual horse racing. The Racing Board has applied to the 
Department of Internal Affairs for permission to run computer 
generated horse races at TAB outlets. Problem Gambling 
Foundation chief executive Graeme Ramsey cannot understand why 
an organisation supposedly supporting the bloodstock industry 
wants to replace live horses with virtual ones. He suspects it 
wants to take more money from its existing customer base. Mr 
Ramsey says the idea of punters having a few minutes between 
races without spending money, seems too much for the Racing 
Board to bear. He fears virtual racing could lead to an 
increase in gambling problems.


(I suppose the virtual horses do not succumb to equine 
influenza, and never need scratching from a race - BH)

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