WYSIWYG NEWS - 23 June, 2008

[news at wysiwygnews.com]

Subject: 23 June, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

A day return trip to Wanganui in driving rain is normally no 
great fun, but two grandchildren in the back seat give you new 
eyes to see. Having their father along to share the driving 
helps too. Maggie is in that stage of development where the 
main part of her conversation is a never ending chain of 
"why?" questions. And if someone attempts to break the chain 
they get a somewhat miffed response "I was talking to 
Grandad!" Cooper, for his part, just sits there and takes it 
all in, no doubt absorbing the strategies pioneered for him by 
his sister. He is also smart enough to close his eyes and 
conserve his energy for times when it is needed. Anthony and I 
discussed towns and cities that we just could not live in 
because of our perceptions of their character. We both had 
Nelson high on our list of places we like, but found a lot of 
reasons why most of small town New Zealand didn't match our 
life style preferences. Passing through Levin, I noticed that 
stone walls have become a theme in the town. Low walls, 
beautifully executed, delineate parking precincts and 
recreational parks, as well as the edges of a new service 
station near the post office clock. Passing on through, we 
soon reached the Whirokino trestle and I was intrigued by the 
roadworks designed to eliminate the kinks in the road between 
the bridge and Foxton. Unless the bridge is replaced, this 
seems like an odd exercise in moving the bottleneck. At the 
Northern end of the Foxton Straights, the usual Sunday market 
was in full swing in the parking lot of the local pub, and 
customers and stallholders, undeterred by the rain were 
dressed for the weather. No sign of life at Ohakea, but the 
call of the coffee bean was strong in Bulls. Revitalised we 
went on to the relentless beat of the windscreen wipers, using 
the frequent passing lanes to get past the shower of road 
spray lifted by the big rigs on the road. In Wanganui, the 
rain had been falling steadily so as to leave mild surface 
flooding on some of the suburban roads. 
----  
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.  
 
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----  
On with the News. 

Monday, 16 June 2008
~~~~~~~~~~~~~~~~~~~~

OIL COMPANY WILL HELP WITH PRICING STUDY
----------------------------------------

Shell is promising to co-operate with the Government's 
independent study on petrol pricing. General Manager Mark 
Forsyth says the company recognises people are concerned and 
affected by the price of fuel. He says the company has been 
considering ways to improve people's understanding of how 
petrol pricing works. Mr Forsyth says the make up of the pump 
price includes the impact of crude oil prices, exchange rates 
and Government taxes.

(It seems I misunderstood the mark-up at petrol stations in a 
similar topic last week. A reader pointed out that their 
margin was a flat 4c per litre, and not a percentage as 
everyone else seems to take. - BH)

GOVT VOTE HUNTING ON EMISSIONS SCHEME
-------------------------------------

The Government continues to work on mustering the numbers it 
needs to make its emissions trading scheme a reality. It must 
find 11 votes from a combination of the Greens, New Zealand 
First, the Maori Party and United Future. But the organisation 
that represents heavyweight businesses believes the climate 
change legislation is now on shaky ground because too many 
amendments have been made. Catherine Beard, executive director 
of the Greenhouse Policy Coalition, says the bill is so 
complex, it is hard for anyone to comprehend it. She doubts 
the Government will get the support it needs to pass the 
legislation. National says the legislation is flawed and 
rushed but Climate Change Minister David Parker says 
National's arguments against the scheme are simply delaying 
tactics. He says the Government is not set to get significant 
revenue from the ETS before 2020 and he believes National is 
simply playing politics. Mr Parker says the Government is 
aiming to calm the concerns and get the support it needs.

SHAREHOLDERS APPROVE NETWORK SALE
---------------------------------

Vector shareholders have approved the sale of the company's 
Wellington electricity network to Hong Kong-based Cheung Kong 
Infrastructure for $758 million. The vote was carried by 99.83 
percent at a special meeting today. Shareholders heard that 
Vector had obtained independent advice which stated the power 
lines network was not a strategic asset as it is not sited on 
sensitive land. Approval of the majority of Vector 
shareholders was a condition for the sale to proceed. The deal 
still has to get approval from the Overseas Investment Office 
and a decision is not expected until late this month. The 
Auckland Energy Consumer Trust is the majority 75 percent 
shareholder of Vector. The deadline for all conditions of the 
transaction to be met is October 1. If all approvals are not 
received by that time then Vector and CKI can agree to extend 
the date.

(Thanks a lot Auckland. We won't forget. - BH)

HYDRO LAKE LEVELS AT 55 PERCENT
-------------------------------

Weekend rain has seen the a rise in the storage levels at the 
South Island's hydro lakes. The latest figures from service 
provider M-Co, show average storage now sits at 55 percent, a 
six percent increase from last Friday. Average inflows into 
the lakes have also risen by four percent, however they remain 
well below normal at 70 percent of what is normal for this 
time of the year.

(The rain, and in the far South, occasional snow, continues. - 
BH)

GOVT BLIND TO POWER CRISIS
--------------------------

A group that represents the small-scale renewable energy 
sector says the Government needs to open its eyes to the power 
crisis. The Sustainable Electricity Association is criticising 
the Government for its reliance on hydro lakes for power 
generation. The panel of electricity providers, researchers 
and manufacturers wants greater emphasis on small scale 
renewable power sources located in or near homes and 
businesses such as solar panels to heat water and mini wind 
turbines to generate electricity. Chairman Brendan Winitana 
says there should be fair investment across the board, rather 
than in just one source. He says the power saving advertising 
campaign launched last night highlights how serious the 
situation is. Mr Winitana believes planning for next winter 
should start now.

TELECOM DOES POORLY IN BROADBAND SURVEY
---------------------------------------

The Commerce Commission has released its first report on 
broadband performance. It looked at 13 internet service 
providers and judged the companies on eight key factors which 
included the time to connect and send and receive emails. 
Telecom was ranked the poorest provider in Auckland, 
Wellington and Christchurch. It was fourth in Hamilton and 
third in Dunedin. Vodafone also ranked poorly, coming second 
to last in Auckland, third to last in Hamilton and 
Christchurch and fourth to last in Wellington and Dunedin. 
TelstraClear topped the list in Auckland, Wellington and 
Christchurch. Orcon was the top provider in Hamilton and 
Dunedin. Commission spokesman Osmond Borthwick says the study 
is a benchmark for what will become quarterly reports. "We've 
looked a lot at the price in the recent past but we are keen 
to explore the quality dimension and give a little bit more 
information to consumers about how that's shaping up in New 
Zealand." Mr Borthwick says the material will be more 
interesting when Government regulations for the sector take 
their full effect. 
 
(What a surprise. Others are not much better. Vodafone's help 
desk is almost unobtainable, with regular messages telling you 
that the average wait time is currently thirty minutes. Having 
that happen more than twice in a night tells me that their 
help desk is systematically under-resourced - BH) 

OIL COMPANIES UNDER SCRUTINY
----------------------------

A Government-ordered inquiry will scrutinise the pricing 
structures of oil companies. The move has been ordered by 
Commerce Minister Lianne Dalziel in the wake of record fuel 
prices. She wants oil companies to explain why it takes so 
long for price decreases in oil to come through at the pump 
but for increases to go through so quickly. On the 
international market, oil is currently trading at $US134 after 
reaching a high of $US139 earlier this month. Last week, 
petrol prices rose to $212.9 a litre and $185.9c a litre for 
diesel in the main centres. In America, motorists are 
complaining about paying a record $US4.08 a gallon or $NZ1.10 
a litre. But there is evidence of petrol prices biting in the 
US with motorists shunning gas-guzzling four wheel drive 
vehicles. Last month, sales of full-size SUVs plunged 41 
percent compared with last year.

Tuesday, 17 June 2008
~~~~~~~~~~~~~~~~~~~~~

TAX CUTS WANTED ON FOOD AND FUEL
--------------------------------

Yet another call for the Government to lower tax on food and 
fuel. A Research New Zealand poll of just over 500 people 
found half say their current financial situation is worse than 
a year ago. Around 80 percent think taxes should be cut on 
food and petrol and 67 percent thought taxes should also be 
cut on electricity and gas. Research New Zealand Director, 
Emanuel Kalafatelis, says it shows we are feeling the pinch of 
rising prices and a slowing economy.

IMMIGRATION SERVICE UNDER FIRE
------------------------------

An anonymous letter is putting more pressure on the embattled 
Immigration Service. National Immigration spokesman Lockwood 
Smith has released a letter he has received from an 
immigration officer which raises serious questions about the 
way the department handles visa and residency applications. 
The whistleblower claims there is a culture where managers are 
more concerned with the volumes of applications that staff 
approve, rather than looking at the risk some applicants pose. 
Dr Smith says the allegations are serious and point to a 
culture where Government policy is not being followed.

HELP FOR ELECTRICITY BILLS
--------------------------

Households hit by higher electricity prices because of the 
Emissions Trading Scheme could be compensated. Labour is 
seeking support from minor parties to get the scheme's 
legislation through Parliament. New Zealand First already has 
a commitment for superannuitants, while the Greens want 
funding to make houses more energy efficient. House leader 
Michael Cullen says they are all matters that have to be 
worked through. Dr Cullen says if the compensation scheme 
assists with insulation and efficiency it would very much help 
the intention of the scheme. However he says if the 
compensation simply increases people's spending power, then it 
defeats the purpose of the Emissions Trading Scheme.

ABORTIONS ON THE RISE
---------------------

More abortions are being performed. A total of 18,380 
abortions were carried out in the year ending December last. 
That is 450 more than in 2006, an increase of 2.5 percent, 
which follows a 2.3 percent rise the previous year. Women in 
their early twenties had more abortions than any other age 
group. The median age remains stable at around 25.

NATIONAL ON ALCOHOL
-------------------

National wants a cross party inquiry into the availability of 
alcohol. Prime Minister Helen Clark is keen for Cabinet to 
revisit the Sale of Liquor Act to quell the sorts of violence 
we are seeing in South Auckland. National leader John Key says 
there are more issues than what the Government is planning to 
address and he is still promoting the idea of boot camps for 
the young. Mr Key says the Government has failed to address 
youth justice issues on drugs and gangs and to look at the 
army style youth camps that he promoted earlier this year.

NCEA REVIEW CALLED
------------------

NCEA school qualifications are to be put under the spotlight. 
The Ministry of Education has announced a two year review as 
part of a programme to improve the NCEA. The review, to be 
completed by 2010, is needed to align NCEA with the new school 
curriculum. It will also address issues of duplication, 
consistency and fairness.

INCANDESCENT LIGHT BULBS TO BE BANNED
-------------------------------------

The Government says its lighting efficiency strategy will save 
almost half a billion dollars worth of electricity by 2020. 
Part of the strategy is new performance requirements for light 
bulbs, which will see incandescent bulbs banned. Government 
Energy Efficiency spokeswoman Jeanette Fitzsimons says New 
Zealand spends 660 million dollars a year on electricity for 
lighting. She says incandescent bulbs only convert five per 
cent of the power they use into light, and the rest is wasted. 
She says compact fluorescent bulbs are five times more 
efficient and last eight times as long.

(I am doubtful of the longevity claim. Even with present 
supermarket specials they are $2 each which is three times the 
price of an incandescent bulb. The longevity applies in 
situations where the light is turned on and stays on. Where 
they are turned on or off frequently, there life is not that 
much better than ordinary bulbs. And then there's the mercury 
disposal problem - BH)

HIGH PETROL PRICES BITE VOLUNTEER SERVICES
------------------------------------------

Rising fuel prices are having a widespread impact on volunteer 
services. Wellington's Meals on Wheels says volunteer drivers 
are finding they can no longer afford to help because of the 
cost of petrol. Coordinator Bruce Matson says finding drivers 
has never been a big problem in the past but the organisation 
is now having to cope with a shortage of drivers, which is 
resulting in some meals arriving late.

COMMERCIAL PROPERTY RETURNS LIKELY TO DIP
-----------------------------------------

The high returns being enjoyed from commercial property are 
not expected to last. The latest figures for the year ending 
March, show returns of 18.3 percent, down slightly from 19.7 
percent the previous year. Connal Townsend, chief executive of 
the Property Council New Zealand, says there is a time lag 
with the data and a clearer picture of how commercial property 
is performing is expected to emerge later this year. He says 
demand is still very high, vacancy rates are low and the 
fundamentals of commercial property as an industry are still 
very sound. However he does not expect strong returns to 
continue Mr Townsend believes it is a difficult time for some 
companies which have a lot of debt, but others with a strong 
balance sheet are doing well. He says the dip in the world 
economy is reflected in the slight fall off in performance.

Wednesday, 18 June 2008
~~~~~~~~~~~~~~~~~~~~~~~

THIRD PARTY INSURANCE
---------------------

The Government's taking further steps towards making third 
party vehicle insurance compulsory. The concept has been 
flagged for some time, but Transport Safety Minister Harry 
Duynhoven is now seeking public feedback on the idea. He has 
released a discussion document on the proposal saying input 
will encourage discussion on the design, enforcement, and 
compliance costs of such a scheme. People have until August 
the eighth to make submissions.

WHAMMO FOR ILLEGAL PARKING
--------------------------

A disability action group is commending the Ministry of 
Transport for increasing fines for those who park in disabled 
spaces. Offenders will now be slapped with a 150 dollar fine, 
up from 40 dollars. CCS Disability Action spokesman Peter 
Wilson says the increase will free up disabled car park spaces 
for those who really need it. He says research by CCS 
Disability Action found that 50 percent of disabled spaces are 
used illegally. Mr Wilson is urging the public to show more 
consideration.

(Make it $1,000 and really wake them up. "I was only going to 
be a minute" just doesn't cut it. - BH)

NEW OIL DRILL SITE
------------------

Exploratory drilling has started for oil and gas offshore from 
the Taranaki Basin, six kilometres away from the Kupe field. 
The new location is called Momoho 1. Kupe project director 
Peter Ashford says since the Kupe project was approved two 
years ago, the company has been looking for other exploration 
opportunities close by.

ACC COVER WANTED FOR MENTAL TRAUMA
----------------------------------

The union for bank workers wants Accident Compensation 
Corporation to cover people who suffer mental trauma at work. 
Finsec is supporting proposed changes to the scheme that would 
result in help being available for bank staff who have been 
robbed. Campaign director Andrew Campbell says it is time non-
physical injuries are recognised. He says it seems an 
arbitrary distinction that things such as trauma are excluded, 
yet physical injury that occurs at work and at home are 
included. Mr Campbell says trauma can be even more 
debilitating than physical injury.

UPHILL BATTLE FOR MUMS RETURNING TO WORK
----------------------------------------

New research highlights the uphill battle some women have 
trying to re-enter the workforce after having children. The 
Massey University researcher Ee Kheng Ang says women returning 
to the workforce generally have to accept jobs below the level 
of those they previously undertook and can find it very 
difficult to get ahead. She says they can also suffer the loss 
of lifetime incomes. Ms Ang says there is a widely held 
assumption that returning mothers have outdated skills and 
qualification but says many retrain and get new skills while 
they are at home caring for their children and those skills 
need to be recognised by employers. She says New Zealand is 
always crying out for skilled labour, yet many working mothers 
are not being recognised for what they offer. A lack of 
support from extended families also has an impact on when 
mothers chose to return to work.

GOVT ALLY ANNOYED ABOUT EMISSIONS TREATMENT
-------------------------------------------

United Future will not support the Government's proposed 
emissions trading scheme. Leader Peter Dunne has pulled the 
plug on the legislation saying the Government has turned a 
deaf ear to his party's constant calls for the true cost of 
the scheme to householders to be revealed. He is also 
disappointed Labour has been prepared to talk about 
compensation options with New Zealand First and the Greens 
while leaving United Future, a confidence and supply partner, 
out of the loop. Mr Dunne says the Government seems more 
interested in getting the scheme passed before the election 
than it is in developing a durable long term system.

UNION CRITICISES MIGRANT LABOUR PLAN
------------------------------------

Two South Island seafood companies want to bring in migrant 
labour, just a week after massive layoffs in the sector. 
Sealord has announced plans to axe 323 jobs from its Nelson 
mussel factory and now Talleys and Aotearoa Seafood have 
applied to import 100 migrant workers. Trevor Hanson, general 
secretary of the Maritime Union, says the use of temporary 
labour from overseas is threatening local employment and is 
not the way to get a stable employment situation or a stable 
society. Mr Hanson says New Zealanders should not lose the 
opportunity for employment because of overseas labour taking 
up jobs for the minimum wage of $12 an hour. He wants the 
Government to step in and stop cheap immigration.

Thursday, 19 June 2008
~~~~~~~~~~~~~~~~~~~~~~

IRD BREACHES EFA?
-----------------

The Inland Revenue Department is the latest target in 
National's battle against the Electoral Finance Act. The IRD 
cancelled a KiwiSaver information campaign earlier this year 
claiming there had been a high number of people signing up to 
the scheme. Deputy Leader Bill English says he has since 
learned of a different reason. He says the real reason for the 
cancellation was because IRD thought the campaign could be 
construed as promotional material for the Labour party.

RETAIL SPENDING "FLAT"
----------------------

The amount spent on our plastic cards increased last month, 
however the retail trend continues to be described as "flat". 
Electronic Card Transactions in May were 1.2 percent up on 
April, and six percent higher than in May last year. That 
annual increase is the smallest since Statistics New Zealand 
began surveying the sector in 2002. The main contributors to 
the rise are vehicle related spending and also the hospitality 
area. The apparel and service industries both suffered 
declines.

PAPER DISCUSSES PARENTS CHOOSING KIDS' GENDER
---------------------------------------------

A document is being presented to the Government today about 
whether parents should have the right to choose the gender of 
their unborn babies. Entitled "Who Gets Born?", the paper has 
been prepared by the Bioethics Council, a ministerial advisory 
committee. Associate Professor Martin Wilkinson says pre-birth 
testing including blood testing and ultrasounds are routinely 
offered to expectant mothers and can be used to identify 
diseases and genetic and physical disorders such as cystic 
fibrosis and Down Syndrome. He says tests can also allow 
families to avoid having children who suffer painful, 
disabling or fatal conditions. Prof Wilkinson says IVF testing 
of embryos before they are implanted in a woman's body is 
currently used to determine genetic conditions and the paper 
deals with the issue of using the process for gender selection 
as well. He says technology is rapidly expanding the range of 
choices parents and society are faced with in deciding who 
gets born and these issues have been intensively considered 
over the course of a year to encourage people to move beyond 
individual preferences to consider the needs of the whole 
community. The views of 700 people contributed to the paper.

HOME AFFORDABILITY IMPROVES
---------------------------

There has been an improvement in home affordability, but it is 
still tight for people on average incomes. The latest survey 
prepared by interest.co.nz says it will still cost just over 
80 percent of the average take home pay to service the loan on 
an average house. That compares to 82.2 percent in April. Bob 
Hargreaves, Professor of Property Studies at Massey University 
says it is only a marginal improvement, but at least it is 
heading in the right direction. He says house prices are 
clearly trending down and there is an expectation of a decline 
in interest rates.

MOTOR TRADE SUPPORT 3RD PARTY INSURANCE
---------------------------------------

The Motor Trade Association is confident compulsory third 
party vehicle insurance would promote responsible driving 
among young people. The Government is considering the 
introduction of compulsory insurance and is calling for 
submissions. The Automobile Association is against the idea on 
the grounds it would bump up premiums for all motorists but 
MTA spokesman Andy Cuming says high premiums are likely to act 
as an incentive to keep young drivers' behaviour in check. He 
likes the idea of younger drivers taking on more 
responsibility for their actions because they are designated 
as an "at risk" group. Mr Cuming says third party insurance 
will also provide better protection to responsible drivers who 
may have their vehicles damaged by uninsured drivers. The body 
representing insurance companies does not want to comment on 
the impact the insurance would have until it has seen the 
details of any future government scheme. The Insurance Council 
says the release of the discussion document is a positive move 
on a long standing concern for motorists.

TRANSPORT GROUP WANT MOTORWAY PROJECTS SHELVED
----------------------------------------------

Public transport proponents want all motorway projects in the 
Auckland region put on hold and funds diverted to the 
electrification of the rail network as a way to combat soaring 
petrol prices. Cameron Pitches from the Campaign for Better 
Transport says the Manukau Harbour crossing and the $2 billion 
Waterview project should be shelved. He claims the Government 
does not have a contingency plan at all and it needs to think 
of ways to reduce the reliance on oil. Mr Pitches says future 
projects have been based on the price of oil being $US35 a 
barrel. It is currently trading at $US132 a barrel. 

Friday, 20 June 2008
~~~~~~~~~~~~~~~~~~~~

TREASURY RELEASES DOCUMENTS
---------------------------

A mass of previously confidential documents relating to this 
year's budget has just been released by Treasury. They confirm 
the Government, and Finance Minister Michael Cullen, were 
considering a number of tax cuts scenarios some of which were 
more generous than finally decided on. They were shelved after 
Dr Cullen decided they were not economically affordable. Also 
revealed in the documents is that Treasury advised against tax 
cuts beginning in October given the pressures it would create 
for IRD to make necessary system changes.

TREASURY CONCERN OVER GOVT SPENDING
-----------------------------------

Previously confidential Government papers reveal the 
Government has held concerns about wage costs in the public 
sector. The details are outlined in a paper, released today by 
Treasury, that went to cabinet last December. It says senior 
government ministers had expressed concern about the growth in 
the size and wage cost of the core public service and the 
ability to employ more staff in the existing economic climate. 
The paper advises, in setting budgets, a signal had to be sent 
to departments to manage wage costs from within their 
baselines.

AUCKLAND RATE RISE UNAVOIDABLE
------------------------------

The Auckland City Council says it has to spend nearly a 
million dollars more next year just retaining its existing 
services. Its Finance Committee yesterday set the council's 
budget for the year ending July 2009. Committee Chairman Doug 
Armstrong says most of the additional costs are unavoidable. 
He says the increases reflect lower revenue for some services 
from the expected slow down in the economy, and the higher 
cost of maintaining existing services.

TAGGING BILL PASSED
-------------------

Parliament has passed the bill raising the maximum fine for 
tagging from $200-$2,000 and banning the sale of spray cans to 
under 18s. The bill passed last night by 107 votes to just ten 
against. The Maori Party opposed the move to the end. MP Hone 
Harawira says tagging is ugly and offensive but there is a lot 
of garbage spoken about it, including claims that it is a step 
towards becoming a murderer. He believes tagging is the result 
of growing frustration amongst youth that society is concerned 
more about profit than about people.

INFLATION FOCUS DAMAGING ECONOMY SAYS BERL
------------------------------------------

Political leaders and policy makers are being told to admit 
the costs of fighting inflation. Economic think tank BERL is 
writing to Finance Minister Michael Cullen about New Zealand's 
economic policy being targeted towards inflation. Senior 
Economist Ganesh Nana admits the policy has by and large 
achieved its goal of price stability over the last 20 years 
but he says it has damaged the "real side" of the economy 
including employment growth, exports and wages. Mr Nana says 
until interest rates and other policy are set around those 
measures, the economy will continue to be damaged. BERL's 
cursory analysis suggests inflation will cost 96,000 jobs over 
the next three years.

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