WYSIWYG NEWS - 13 March, 2008

[news at wysiwygnews.com]

Subject: 13 March, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

Somehow, though we know it's coming at this time every year, 
the start of a new academic year is always chaotic. Students 
enrol late, and the backlog of data entry means "they don't 
exist", and thereby have no access to the necessary electronic 
resources, and everything gets ugly. And so it has been for 
the last three weeks. Hence the absence of this newsletter. 

Somewhere in all the chaos, I was delighted to meet two long 
time readers of WYSIWYG news passing through, Sally and Chico 
from Ottawa. I offered them a brief guided tour of Wellington, 
since neither had spent much time here. The day was not too 
bad for sightseeing, so we drove from my home in Normandale, 
into the city and up to my usual starting point, the hill 
above Brooklyn at the base of the wind turbine. From there the 
views out over the city are spectacular, though distant clouds 
presented less than the usual perfect view. Having located 
where the airport is, and where the ferry came in, we then 
drove down to the Brooklyn shops and thence down Owhiro Bay 
road to the southern coast. We meandered around the coast, 
along the Esplanade and as it was lunch time, stopped at "The 
Bach". This café/restaurant has a lovely location, and when it 
finally came, the food was fine, but I really did not 
appreciate the extraordinary wait. The only redeeming feature 
was that it was a nice day, and with the cloud clearing a bit 
in the West, we could see Tapuae-o-uenuku lifting its mighty 
head above distant Kaikoura. Having subsequently looked the 
restaurant up on the Dine Out web site (www.dineout.co.nz) I 
see that many others have had similar experiences. Oh well, we 
learn from our mistakes, and Sally and Chico kindly picked up 
the tab. From there, we went on around the coastline, past the 
airport, and around the rocky shoreline through the Pass of 
Branda to pretty Seatoun. We were regrettably all short of 
time, due in no small measure to the restaurant, so we had to 
curtail thus usual tour. I went up through the Seatoun tunnel 
to Miramar and thence around Evans Bay to that extraordinary 
unveiling of the cityscape as you round Point Jerningham. 
Oriental Parade is slowly reaching the stage when all the 
possible destruction of grand old houses is nearly complete, 
and little room exists for new high-rise construction. Still, 
it is always something of an obstacle course as people 
navigate around the ubiquitous plastic rod works barriers. 
Through the city and back home. It was a brief tour, but 
always nice to spend time with friendly readers visiting from 
out of town. 
----  
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 NR & ME Gibb. Many 
thanks.
----  
On with the News. 

Monday, 25 February 2008
~~~~~~~~~~~~~~~~~~~~~~~~

AIR NZ CARRYING MORE PASSENGERS
-------------------------------

Air New Zealand has revealed bumper passenger numbers in 
January, with long-haul routes carrying almost 12 percent more 
people than a year ago. Overall, there was an increase of 
almost six percent in the number of people travelling with the 
airline, despite price hikes because of the rising cost of 
fuel. Planes on the relatively new service between Auckland 
and Vancouver are 90 percent full, as are those on the 
established Los Angeles to London run. Interim financial 
results are due out on Friday. 
 
(I remain unconvinced that the now abandoned AKL-SIN link was 
unprofitable - BH) 

CALLS FOR IMMEDIATE INTEREST RATE CUT
-------------------------------------

With the New Zealand dollar buying almost 81 US cents, the 
Reserve Bank is being told to stop sitting on its hands - and 
cut interest rates. Export New Zealand CEO Bob Walter says the 
Reserve Bank realises the export sector is hurting, but has 
failed to offer any solutions. He says the housing market and 
the economy in general is slowing, and therefore a drop in the 
interest rate would be reasonable. At 8.25%, the Official Cash 
Rate is one of the highest in the world. Mr Walter says a 
number of New Zealand companies are having to pull back their 
operations in order to survive, but there seems to be a 
reluctance on the part of the Bank to make tough decisions. He 
says profit margins are shrinking, and the situation is 
affecting the living standards of all New Zealanders. At 3pm, 
the New Zealand dollar was buying 80.82 US cents.

MAF HUNTS SUSPECT WEEDS
-----------------------

MAF Biosecurity is trying to limit the distribution of 
suspected pest weeds, which have been found in imported 
coconut fibre. A consignment of coir fibre was brought in from 
Sri Lanka in October last year, and used in number of 
different potting mixes. The product was sold to about 70 
nurseries, plant propagators and growers. Most are located in 
the North Island. The problem came to light when a grower 
noticed sprouting weeds in some of its plants, and reported 
the find. Biosecurity spokeswoman Megan Sarty says about 15 
weeds have been identified that are new to New Zealand. She 
says it is not known how widespread the problem is or what 
damage might be done. In the interim, all coconut fibre 
entering the country is to be heat treated.

WRITERS OPPOSE KIDS BOOK CENSORSHIP
-----------------------------------

The Society of Authors says too many children's books are 
being censored. The writers have joined up with Wellington 
City's 15 libraries to highlight the issue this week. They say 
a growing number of works are being banned, restricted or 
sanitised. Spokesman and author Dom Long says the censorship 
is more underground than it can be overseas, where books are 
simply burnt. He says the problem is more subtle with 
publishers turning down potentially controversial books, or 
diluting their content. Libraries will be hosting a week-long 
series of readings and displays, along with a celebrity 
debate. Councillor Ngaire Best says the event will examine 
whether the impulse to protect children from accessing some 
materials has been taken too far.

HERD MENTALITY IN MEDIA - PM
----------------------------

The Prime Minister believes journalists are out to get her. 
Helen Clark has been talking about recent political polls, 
showing National maintaining a substantial lead over Labour. 
Miss Clark describes the figures as extreme, and says she 
feels frustrated by what is being portrayed about her 
Government. Miss Clark says there appears to be a herd 
mentality among political journalists. She says there is a 
conventional wisdom amongst the media that when a Government 
has had three terms, it is time for it to go. Helen Clark says 
the Government has every right to make a case for re-election, 
as the country is prospering. 
 
(Whether or not they are "out to get" the PM, I firmly believe 
that many journalists do act like part of a herd. I observed 
this in the last few days as they reacted in lock step to the 
so-called additions to the seven deadly sins, and to the 
annual parliamentary trips to Europe. - BH)

TE REO ONLY ON SECOND MAORI TV CHANNEL
--------------------------------------

Maori Television's second channel will be exclusively in Te 
Reo with no advertising. The new channel will be launched at a 
dawn ceremony at the end of next month and will initially 
broadcast between 8pm and 11pm seven days a week. Maori 
Television chief executive Jim Mather says the aim of the 
channel is to meet the needs of fluent Maori speakers and 
those viewers keen to have full immersion Maori language 
households.

PM SAYS TV CHANNELS NEED TO EXAMINE ETHICS
------------------------------------------

Prime Minister Helen Clark is steering clear of the 
controversy surrounding John Campbell's interview about the 
stolen Waiouru war medals. The TV3 host has admitted his 
programme "stuffed up" by not explaining that the interview 
claiming to be with a man involved in the theft was actually a 
re-enactment, using an actor. Campbell has apologised. Miss 
Clark believes there was a level of deception but will not be 
drawn into whether Campbell Live should have destroyed the 
original audio recording with the thief. "There are a lot of 
ethical issues that raises, on the other hand, the media does 
defend its sources. That's a long established principle too." 
Miss Clark says TV3 and TVNZ need to examine their ethics.

FUEL PRICES BEGINNING TO BITE
-----------------------------

A new study shows fuel prices are forcing nearly a third of 
motorists to drive their vehicles less often. Research New 
Zealand carried out the survey, which asked participants 
whether they drive their vehicle less often due to rising fuel 
costs and whether they would drive even less if petrol prices 
were to rise to $2 a litre or more. Director Emanuel 
Kalafatelis says 32 percent of respondents said fuel prices 
had impacted on their driving habits. Fifty-four percent said 
they would use their car even less if fuel hits the $2 a litre 
mark. The results also show women are altering their driving 
habits more than men. Mr Kalafatelis says it is clear the high 
cost of fuel is hitting New Zealanders hard. 
 
(As of last evening, 91 petrol was $1.799 per litre, and 96 
was $1.989. Traffic is still running. - BH)

ANOTHER POLITICAL POLL SHOWS GAP WIDENING
-----------------------------------------

Another poll is pointing to a widening gap in support for 
National and Labour. Following a weekend Fairfax Nielsen poll 
which gave National a 23 point lead, the latest Morgan poll 
shows a similar trend. It has National polling at 51.5 percent 
support and Labour on 32.5 percent support. National is up six 
percent since the last poll while Labour has dropped four. The 
Greens remain the strongest of the minor parties on eight 
percent, New Zealand First and the Maori Party both recorded 
three percent, while ACT, United Future, and the Progressives 
barely register. 
 
(Yet another early this week showed it narrowing to a 15 point 
lead - BH)

DHB CHAIR WORRIED ABOUT MIDWIFE SHORTAGE
----------------------------------------

The new chairman of Capital and Coast District Health Board 
wants action on the midwife shortage. The DHB has been 
experiencing pressure through lack of staff and shortages in 
the private sector. Chairman Sir John Anderson says there are 
questions as to whether the midwifery workforce can be 
maintained as many midwives are 50 years or older and will 
soon retire. He says it is a national issue which needs 
addressing because shortfalls in care at the beginning of life 
can lead to higher health costs later on. Sir John says 
allowing registered nurses to take bridging courses to gain 
midwifery qualifications could be a way of handling the 
problem.

SECURITY MEASURES SHOULD NOT COST TRAVELLERS
--------------------------------------------

National hopes a report into security at regional airports 
does not suggest spending huge amounts of money on an upgrade, 
as leaked copies suggest. Police and Aviation Security were 
called on to report to Police Minister Annette King following 
the attempted hijack of an Air New Zealand link flight between 
Blenheim and Christchurch earlier this month. Cabinet will 
consider the report today. National's Transport Spokesman 
Maurice Williamson hopes there is not a knee-jerk reaction. He 
says one incident should not be enough to impose a huge amount 
of cost on the travelling public and taxpayer.

Tuesday, 26 February 2008
~~~~~~~~~~~~~~~~~~~~~~~~~

ACC PAYS MORE TO CARERS
-----------------------

ACC is increasing the amount it pays to support some injured 
New Zealanders. Minister for ACC Maryan Street says from this 
week ACC will pay an additional $25 million a year to 
contracted agencies providing home-based support. She says the 
extra funds are intended to allow the agencies to increase 
what they pay to carers themselves. ACC funds around 70 
agencies nationwide to provide a range of home-based services 
to about 15,000 injured people a year, including personal 
care, childcare and home help.

BOOST TO RENEWABLE ENERGY
-------------------------

A major expansion of renewable energy manufacturing is in the 
pipeline. Solid Energy has announced plans to build biomass 
and biodiesel production facilities in Taupo and Christchurch. 
The plant in Taupo will be capable of producing up to 150,000 
tonnes per year of clean-burning wood-pellet fuel. Biodiesel 
New Zealand has also begun planning work for a large-scale 
production facility in Christchurch. It has a three-year 
target to produce 70 million litres per year of transport 
fuel, approximately half the Government's total 2012 biofuels 
target.

VOLCANO READINESS TEST NEXT MONTH
---------------------------------

Auckland's preparedness for a volcanic eruption is to be 
tested in a two-day exercise next month. Exercise 'Ruaumoko' 
will put the region's response systems to the test. More than 
100 organisations will be involved in the test, which aims to 
expose any faults in the system. Civil Defence says it is 
impossible to predict when or where an eruption could occur, 
and Group Controller Harry O'Rourke says Auckland has been 
lucky for a long time. Mr O'Rourke says the city is also 
exposed to threats from tsunami, flooding and tropical storms. 
While the public are not involved in the exercise, Civil 
Defence chairman Derek Battersby says it is essential 
households prepare an emergency kit with enough food and water 
for each person to last three days.

ELDER ABUSE REPORT RELEASED
---------------------------

The findings of a major study into elder abuse and its 
prevention have been released. A report from the Families 
Commission covers sexual, psychological and financial abuse of 
the elderly gathered from interviews with 15 older people who 
had been abused, and another 22 who had not. Researcher Kathy 
Peri says victims interviewed for the study were left 
distraught by the way they had been treated. She says 
isolation, poor health and having family members with mental 
health issues can all raise the risk of elder abuse. Ms Peri 
says the problem is under-reported, and hopes the research 
will heighten people's awareness that it is actually going on. 
She says for those living with their abusers the situation is 
often intolerable. Most did not speak until they had been 
kicked out of their homes or felt very threatened or 
frightened. Kathy Peri says older people are less likely to be 
abused if they understand their rights, and have good 
relationships with their family.

KIWIJET LAUNCH OFF UNTIL NEXT YEAR
----------------------------------

A low-cost airline planning to service eight New Zealand 
cities has delayed its planned start-up date for a year. 
Kiwijet was aiming to begin services later this year, but 
Chief Executive Patrick Weil says after a due diligence 
process, it has been decided to postpone the launch date until 
next February. He says the report highlighted the need for 
Kiwijet to form an alliance with a trans-Tasman partner 
airline, to provide feeder traffic to and from the main trunk 
routes. The airline was intending running services late in the 
evening which would restrict passengers to hand luggage only. 
This would leave the aircraft hold available for freight, 
parcels and mail. Mr Weil says his company is currently in 
confidential talks with an Australian carrier which wants the 
launch date postponed so timetables can be coordinated.

DOLLAR TO 85C US?
-----------------

The chief executive of one of New Zealand's main exporters 
will not be surprised if more businesses move offshore, 
because of the high dollar. Export New Zealand is calling on 
the Reserve Bank to give businesses a break by reducing 
interest rates. The currency has climbed well above 81 US 
cents, reaching 81.37 at 11am. Worse may yet be to come, with 
one economist saying the dollar could easily get to 85 US 
cents in a matter of months. The call for a reduction in rates 
is echoed by Fisher and Paykel CEO John Bongard. Last year, 
the company announced plans to move part of its manufacturing 
operation to Thailand. Mr Bongard says high interest rates and 
the exchange rate will no doubt see more businesses look at 
similar options. He is very concerned about what is being 
labelled the hollowing-out effect on the New Zealand economy. 
He accepts the Reserve Bank cannot do much without a change in 
government policy, but believes the exchange rate does need to 
be targeted. He says the volatility of the currency makes 
managing a business very difficult. BNZ Chief Economist Tony 
Alexander says the currency is still well-supported by 
commodity prices and interest rates and says a value of 85 
cents against the greenback is very likely. He says interest 
rates across the Tasman are also playing a big part. He says 
the kiwi is riding the wave of a soaring Australian dollar, 
driven up by high prices for iron ore and coal. Mr Alexander 
says if there was any chance of the Government influencing the 
currency, it would have done so by now.

TAX BLOW KNOCKS 10% OFF AIRPORT
-------------------------------

Auckland International Airport shares have dived ten percent, 
following the Government's blocking of a multi-million-dollar 
tax break involving stapled securities. The securities had 
allowed shareholders to receive tax-deductible interest from 
companies instead of dividends. The move came on the same day 
the airport's board did a u-turn on its previous advice, and 
recommended shareholders sell their shares into the offer. The 
tax break would have been a bonus to the Canadian Pension Plan 
and Investment Board's bid for control of Auckland 
International Airport. Airport shares are currently trading 27 
cents lower on $2.55. 
 
(Massive criticism to the government on this. Some even 
suggested that the intervention is stealing from the 
shareholders. In my perspective, it is a legitimate function 
of government to decide that certain essentials of the 
transport infrastructure are vital to the national interest, 
and may not be controlled by outside interests, even ones as 
benign as Canada's pensioners. - BH)

FURTHER CRACKDOWN ON NOISY VEHICLES
-----------------------------------

The government is proposing a further crackdown on noisy 
vehicles with closer scrutiny of exhausts. Under the planned 
rules, Transport Safety Minister Harry Duynhoven says all cars 
with modified exhausts that fail a subjective noise test while 
getting a warrant of fitness will be required to undertake a 
measured test to ensure they meet a 95 decibel sound limit. If 
they fail, they will have to be repaired and pass a tougher 90 
decibel limit. Mr Duynhoven says police will also have the 
power to order noise tests for cars they come across while on 
patrol. 
 
(When the police in a major metropolitan area have six people 
on a shift to deal with domestic violence, burglaries and 
other offending, I wonder where the minister imagines this 
will come  on the priorities of the police? - BH)

LEAKY BUILDING WORKSHOPS
------------------------

Medical experts in New Zealand are for the first time having a 
look at the health impacts of leaky buildings. Health experts, 
researchers, the building industry, local bodies and 
government officials will be at two workshops, in Wellington 
and Auckland on Thursday and next Monday. They will look into 
the impact of mould and damp on people who live in leaky or 
old houses. Chairing the workshops is University of Otago 
professor, Philippa Howden-Chapman. She says being sensitised 
to mould increases the risk of severe asthma in adults. 
Internal mould also has negative effects on people suffering 
from immune deficiency. Prof Howden Chapman says the workshops 
will provide a public forum for people to find out about the 
latest research and talk about possible policy solutions. The 
keynote speaker is Professor Aino Nevalainen from Finland who 
is a European expert on how dampness and mould in houses 
affects building materials such as Gibraltar board. Prof 
Julian Crane from the University of Otago will speak on the 
effects of mould on asthma severity. New Zealand has a high 
asthma rate, with 15 to 20 percent of people suffering from 
the chronic respiratory condition.

STUDENTS RELYING ON HIGH INTEREST DEBT
--------------------------------------

New research shows that tertiary students are relying on 
credit cards and other bank debt. Statistics from the New 
Zealand Union of Students Associations shows the amount 
students owe on credit cards has increased by 32 percent since 
2004. Paul Falloon, co-president, says students receive only a 
small amount of cash and often do not have a choice about 
spending more money than they have. He says if they fall sick 
and cannot work then it blows their budget. Mr Falloon is 
urging banks to follow the government's lead to ensure 
students are not further punished by crippling market interest 
on their bank debts. He says most bank debt attracts high 
interest rates once students graduate and can be difficult to 
pay back. Mr Falloon says banks should offer no interest 
overdrafts and loans, and need to ease penalties for default 
payments. The bank workers union Finsec is supporting the 
association and says banks should investigate the reasons for 
the recent rise in student credit card debt.

Wednesday, 27 February 2008
~~~~~~~~~~~~~~~~~~~~~~~~~~~

MINISTER SACKS DHB
------------------

The Minister of Health has sacked Hawke's Bay District Health 
Board. A commissioner has been appointed to run the DHB's 
affairs. Minister David Cunliffe says he was forced to act as 
the situation was unsustainable. He says he understands it is 
a very serious step to take. 
 
(Conspiracy theories abound. I fear that history will not look 
kindly on this action. - BH)

WINDFARMS PRODUCE $2M PROFIT
----------------------------

There may not be much gold in them thar hills....but there's 
enough wind for NZ Windfarms to turn a profit. Despite delays 
getting Stage Two of the Te Rere Hau project in the Tararua 
Ranges up and running, the company has reported a surplus for 
the six months to December of almost $2 million. It's also in 
the process of expanding the scheme, by adding another 37 
turbines to the 97 it already has consent for. A public 
consultation process is underway, before a formal Resource 
Consent application is made.

GRAPHIC IMAGES TO TURN SMOKERS OFF
----------------------------------

Graphic images of diseased lungs and rotting teeth and gums 
must be displayed on cigarette packets sold in New Zealand 
from tomorrow. The gruesome displays are common overseas. 
Their introduction here is the latest move by the Government 
to try to turn people off smoking. Other measures including 
banning smoking in pubs, restaurants and workplaces are 
credited with having an impact on the number of smokers. A 
five-year plan for tobacco control introduced by the Ministry 
of Health in 2004 also included initiatives aimed at 
discouraging people from starting smoking, and helping those 
who want to give up. Despite them, there are still around 
5,000 smoking-related deaths each year in New Zealand. 
Government revenue from tobacco taxes runs at around $980 
million per year. Associate Health Minister Damien O'Connor 
will launch the new campaign alongside a lung cancer patient 
at Christchurch Hospital this afternoon. Some smokers have 
already had their first look at the new images, which also 
include close-ups of gangrenous toes and smoking-damaged 
hearts, as new stocks of tobacco products have worked their 
way onto retailers' shelves.

PERCEPTION OF CRIME ALL WRONG - AUCK UNI
----------------------------------------

The rate of reported crime is decreasing, according to a 
recent study at Auckland University Law School. It suggests 
there were just over 100 offences for every 1,000 people in 
the 2006/2007 year, compared with almost 130 per 1,000 in the 
1996/1997 year. Researcher and Associate Professor of Law at 
Auckland University, Julia Tolmie, says the results contradict 
popular perceptions about crime. She says a lot of published 
reports on crime focus on trends from one year to the next, or 
concentrate on the incidence of one particular type of crime. 
Ms Tolmie says although crime is not increasing, the number of 
people being locked up is on the rise. She says while roughly 
the same number of people are being caught, there are more 
prosecutions and longer convictions. She calls this 'punitive 
sentencing creep', and claims it is largely unrelated to the 
incidence or seriousness of criminal offending. Ms Tolmie says 
sending more people to prison does not deter them from 
committing more crime. She says prison is both ineffective and 
prohibitively expensive. Her findings form part of a book to 
be launched at Auckland University Law School on Friday, 
looking at what causes people to commit crime, and trends in 
criminal justice.

TELECOM FAULT COSTING THOUSANDS
-------------------------------

A south Auckland business says it is losing thousands of 
dollars a day as it waits for its 0800 number and fax line to 
be reconnected. Around 10,000 landlines were cut when 
Pukekohe's exchange crashed on Thursday night. A Telecom 
spokesman says a handful of people with newer numbers are 
still on hold, while most were reconnected last weekend. Steve 
Rigby from OHUG Power Equipment is not one of those. He says 
he is shocked his problems are still not resolved. Mr Rigby 
says so far his company has lost around $25,000 to $30,000 in 
potential business deals, and is worried about the long term 
impact. He says so far Telecom has only been offered around 
$30 credit on their bill as compensation.

(This was an astonishing outage in this century. - BH)

SCIENTISTS FOCUS ON BELCHING COWS
---------------------------------

New Zealand and Australian scientists are joining forces to 
get to the bottom of what causes cows to belch. Science and 
Technology Minister Pete Hodgson says the scientists will 
focus on the digestive processes in the stomach of livestock. 
He hopes scientists will be able to reduce the amount of 
livestock emissions by changing their diet. Mr Hodgson 
believes any scientific breakthrough in methane emissions or 
belching will yield a very large return. It is the first ever 
collaboration between the two countries on the issue.

RESERVE BANK KEEPING LOW PROFILE
--------------------------------

It may be a few more weeks before it is known whether the 
Reserve Bank has taken any steps to dampen the soaring New 
Zealand dollar. The kiwi is trading above 81 US cents to stand 
at 23 year highs. BNZ currency strategist Danica Hampton says 
the Reserve Bank is unlikely to intervene in the currency 
markets as openly as it did last June and it will be another 
month before official data reveals whether the bank has taken 
any measures. The dollar is being pushed up by renewed demand 
from Asian investors, as interest rates in the US continue to 
wane

FARMERS WANT TAX BREAK
----------------------

Drought-stricken Waikato farmers hope the Agriculture Minister 
can keep the tax man away until they can get back on their 
feet. Jim Anderton is visiting farms and meeting the region's 
farmers and local Government representatives today. Federated 
Farmers Waikato president Stewart Wadey says it will be a help 
if provisional tax payments could be postponed. He says waiver 
of penalty interest is also something that needs to be 
discussed and established as policy, but Mr Anderton needs to 
initiate that. Mr Wadey says farmers are looking for support 
from the Government, not a hand out.

TOUGHER ACTION WANTED ON DIRTY WATER FARMERS
--------------------------------------------

The Environment Minister is encouraging local authorities to 
prosecute farmers who are not complying with clean water 
regulations. The fourth report into the Clean Streams Accord 
shows some regions such as Taranaki and Tasman report full 
compliance while significant dairy areas such as the Waikato 
and Canterbury lag behind. The accord is an agreement between 
the Ministries of Agriculture and Forestry, Environment, Local 
Government New Zealand and Fonterra, and aims to urge farmers 
to fence off waterways and comply with effluent discharge 
regulations. Environment Minister Trevor Mallard says the 
current management of nutrient levels is not enough to reverse 
decline in water quality. He wants non-compliant farmers 
penalised by local authorities.

Thursday, 28 February 2008
~~~~~~~~~~~~~~~~~~~~~~~~~~

BANKS BLASTED FOR RATE HIKES
----------------------------

The Finance Union FINSEC has slammed the ANZ National Bank for 
hiking up mortgage rates. Two-year fixed interest rates have 
risen to 9.7 percent and floating rates up to 10.75 percent, 
adding over $100 dollars more a week to mortgage payments. The 
bank is blaming the global credit crunch, and squeezed margins 
for the increase. Union spokesman Andrew Campbell says there 
is no justification for it. He says banks seem to be able to 
increase interest rates without any degree of scrutiny, and 
this should change. Andrew Campbell says there is no evidence 
of the credit crunch having an impact on the bank's bottom 
line, with AN National earlier this week announcing a $310 
million dollar interim profit.

LANDCORP JOINS CHALLENGE TO FOREST TAX
--------------------------------------

The country's biggest agricultural enterprise, Landcorp 
Farming Ltd, is part of a new industry group urging the 
Government to make changes to its Emissions Trading Scheme. 
The group, calling itself Flexible Land Use Alliance, is made 
up from representatives of Carter Holt Harvey and Fonterra, 
forestry and farming interests, including the state owned 
enterprise. It has gone public in Wellington today, 
highlighting what it says are huge retrospective liabilities 
on the owners of land planted in forestry before 1990. Under 
the new policy, they fear penalties of up to $65,000 a hectare 
if they change the use of their land. It was originally 
thought the liability would be around $13,000 per hectare. 
Spokesman for the Alliance, Ross Green, says there is 
increasing disquiet in the investment community at the 
proposals. He says business confidence depends on investors 
feeling the rules of the game will not suddenly be changed on 
them. He says investors need to know that if they embark on a 
legal economic activity today, they will not be penalised for 
it at some time in the future. He is asking for forests 
planted prior to 1990 to be exempt from the scheme, or 
compensation for their owners. He says if they are not 
exempted, it will allow Parliament to set a chilling 
precedent. The alliance is planning to meet with Forestry 
Minister Jim Anderton next week.

FLIGHT TO AUSTRALIA CONTINUES
-----------------------------

Chinese tourists flocked to our shores in droves in January. 
Figures just released from Statistics New Zealand show 122,000 
visitors arrived from China. The number is up 15 per cent on 
the same month last year. In contrast the number of tourists 
from Japan was down 10 percent to just under 58,000. The 
arrivals and departures figures also reveal the ongoing flight 
of New Zealanders to Australia. For January, the net loss of 
people declaring themselves permanent or long-term departures 
to Australia was 4100. A year ago the figure was 3500 people. 
For the full year to January, 28,600 more people left for 
Australia than came the other way, an increase of 7,000 on the 
January 2007 year.

COMMERCIAL FISH STOCK WORTH $3.8 BN
-----------------------------------

The country's commercial fishing stocks are estimated to be 
worth $3.8 billion, according to a valuation released by 
Statistics New Zealand. The figure represents an increase of 
39% from the 1996 valuation, which was $2.7 billion. Eighteen 
of the most popular species caught last year were controlled 
and managed under the quota management system, or QMS. The 
overall number of species under QMS restrictions has almost 
doubled over the last 11 years, to 96. However the total value 
of the fishing asset has declined 1 percent since reaching a 
high of $3.9 billion in 2004. Statistics New Zealand says 
economic conditions, including the high value of the New 
Zealand dollar and increasing fuel prices, are likely to have 
had an impact. Recreational and customary catches are excluded 
from the figure, as are species reared under aquaculture 
conditions, and commercial species not currently included in 
the QMS.

BUSINESS UNITED ON EMISSIONS SCHEME
-----------------------------------

Some of the country's largest companies are banding together 
to voice their concerns at the Government's Emissions Trading 
Scheme. Representatives of Fonterra, Carter Holt Harvey and 
Landcorp and other groups are speaking out publicly this 
afternoon. It is unusual for such a variety of business groups 
to join together in criticism of the Government's processes. 
Their concerns surround the Climate Change Bill, and the 
complexity of it, with the groups claiming they are unable to 
prepare submissions by a March 31 deadline. There is also 
considerable concern at the possibility Energy Minister David 
Parker will tinker with the Bill, while it is still being 
reviewed.

DOLLAR STRENGTH BEYOND CULLEN'S CONTROL
---------------------------------------

The Government is acknowledging concerns over the 
strengthening New Zealand dollar. Exporters in particular are 
feeling the squeeze, with the dollar now worth over 81 US 
cents. At midday it was trading at 81.55 US cents. Finance 
Minister Michael Cullen says the strength of the currency 
reflects a number of factors. He lists a weak US dollar, 
strong domestic employment and economic growth, and efforts by 
the Reserve Bank to cool the economy by raising interest 
rates. Dr Cullen says exporters will get relief when global 
investors regain confidence in the outlook for the US economy.

BELTS TIGHTEN AMID UNCERTAINTY
------------------------------

The uncertainty of the global economy is forcing many people 
to pull back on their spending. A Research New Zealand poll 
shows of 500 people surveyed, more than half believe their 
spending this year will be influenced by the state of the 
international economy. Director Emanuel Kalafatelis says the 
results are the same, regardless of differing incomes. He says 
those on more than $70,000 a year are just as concerned about 
their spending as those on much lower incomes. The survey 
shows women are slightly more concerned about their spending 
than men.

NEW REGIONAL PARK APPROVED
--------------------------

Environment Canterbury has approved a new regional park. The 
Lake Tekapo facility will comprise 165 acres on land around 
State Highway 8. Around $150,000 over six years will be spent 
on a toilet facility, walking tracks, a lookout, plantings, 
picnic areas and fencing.

OLD FOLKS TO FIGHT FOR THEIR HOMES
----------------------------------

Elderly residents of a Christchurch retirement complex who are 
being forced out of their homes say they will not take it 
lying down. Around eight of the 23 units at Crossdale Courts 
in Riccarton have been put on the market by Harcourts, forcing 
residents who are in their 70s and 80s to find new homes. The 
units are up for mortgagee auction, after owner Gary Campbell 
became unable to service the debt. However, residents have 
paid between $40,000 and $60,000 for the right to occupy the 
units as long as they remain independent. Pat Brown, who has 
lived in his flat for five years, believes it comes down to 
complete mismanagement of funds. Mr Brown is telling people to 
'watch this space', as he and the others affected plan to make 
a lot of noise about the situation. 
 
(So much that happens because the person concerned seemed 
trustworthy seems to be detrimental to our elders. No one told 
them that they would have been protected if the property had 
been registered as an eldercare facility. - BH)

SEAFOOD INDUSTRY DROWNING IN COSTS
----------------------------------

The Seafood Industry Council claims inflationary pressures 
brought about by huge government spending has led to higher 
interest rates and the record rise in the dollar. Chief 
Executive Owen Symmans says every cent the dollar rises takes 
$20 million away from the industry and over the past year the 
industry has lost an estimated $120 million. He says over the 
last five years there has been a 38 percent rise in Fisheries 
Ministry staff and a 26 percent increase in expenditure 
without any gain for the industry. Mr Symmans says the 
government is also looking at collecting another $8 million 
with the introduction of green house policies. He says that is 
exorbitant and adds to cost pressures. He says businesses will 
be forced to look overseas to reduce production costs.

SOCIAL RESPONSIBILITY POLICIES LACKING
--------------------------------------

New Zealand companies are lagging near the bottom of the 
ladder when it comes to adopting social responsibility 
policies according to an international survey by accounting 
and business advisory firm Grant Thornton. Spokesman Peter 
Sherwin says private New Zealand businesses are in the bottom 
five percent of more than 7500 businesses surveyed in 34 
countries. He says the findings have come as a real surprise, 
especially when New Zealand prides itself on environmental 
awareness. Mr Sherwin says local businesses need to step up to 
the mark as only 35 percent have formal social responsibility 
policies in place. In Australia, the figure is 44 percent and 
74 percent in China. New Zealand is at the bottom of the scale 
with countries including Poland, Taiwan and Vietnam.

Friday, 29 February 2008
~~~~~~~~~~~~~~~~~~~~~~~~

POKIES - FEW SUBSIDISING THE MANY
---------------------------------

Pokie machine profits are coming out of the pockets of a 
minority of players, according to the Problem Gambling 
Foundation. Quoting an Internal Affairs survey carried out in 
2005, chief executive John Stansfield is pointing out that 
only 19% of people play the machines even once a year. He says 
this is less than one-third of the number who play Lotto. In 
contrast, the amount lost on pokies is two-thirds the amount 
lost on Lotto. The survey shows that more than half of pokie 
sessions last less than half an hour, and only 8% of people 
say they play once a month or more. Mr Stansfield says this 
proves a relatively small number of people must be spending a 
lot of money to make up the average. It means the community 
funding raised by pokie machines is the exploitation of people 
with gambling problems to pay for sporting, recreational and 
social services. He says this is neither an ethical nor 
healthy way to raise funds. John Stansfield says the survey 
also confirms some groups are particularly vulnerable to 
gambling harm. Maori, for example, gamble more than other 
ethnic groups. They also have longer sessions, spend more and 
are more likely to think they have broken even when they have 
not. "Pokie machines are placing an enormous burden on our 
communities", he concludes.

(For some reason, I have never felt the appeal of these 
things, and have never put a penny into them - BH)

600,000 SIGN SMACKING PETITIONS
-------------------------------

Two petitions with a total of more than 600,000 signatures 
opposing the anti-smacking law have arrived at Parliament. At 
first glance, both appear to have the signatures of 10 percent 
of voters, making it likely each will lead to a Citizens 
Initiated Referendum. These would probably be held at the time 
of this year's general election. Backers want the smacking of 
children to be legalised again, and for the Government to give 
urgent priority to addressing child abuse and family violence. 
Petition organiser, Larry Baldock of the Kiwi Party, says it 
is regrettable they had to go this far. He says Sue Bradford 
knows that her anti-smacking bill never had the support of 
ordinary people. The two petitions are now subject to a 
certification process, checking signatories to ensure the 10 
percent hurdle has been reached. There is an opportunity for 
the submitters to go back to the public if they fall short, 
allowing a further two months to get the numbers up. Once an 
approved petition has been filed, it has to be presented to 
the House of Representatives, after which the Governor-General 
has a month to set a date for the referendum, or to specify 
that the referendum will be conducted by postal voting. The 
law says the referendum must be held within 12 months of the 
petition being presented to the House, unless 75% of MPs agree 
to a different date. Citizens Initiated Referenda are not 
binding on the Government.

JANUARY TRADE GAP NARROWS
-------------------------

Record high prices for dairy products and a surge in New 
Zealand oil production have propped up exports in January

GOVT URGED TO BUY DAY CARE CENTRES
----------------------------------

Record high commodity prices, and a growing trade in oil 
exports have helped reduce the country's trade deficit. The 
monthly trade balance in January was a deficit of $320 
million, down more than half a billion dollars on the figure 
for last year. Milk powder, butter and cheese revenue was up 
by almost $300 million, thanks to high prices on world 
markets. Exports of petroleum products contributed a further 
$225 million. The value of exports was 24% higher than the 
previous year, while the value of imports rose by only 2.8%. 
The trade balance with Australia in January was the largest 
monthly surplus in 20 years. Almost one-third of exports 
across the Tasman fell into the petroleum and products 
category. On average, New Zealand imports around $82 million a 
month of goods more than it exports to Australia.

(That would be the start of a slippery slope. - BH)

RISE IN INTERIM PROFIT FOR AIR NZ
---------------------------------

Air New Zealand has recorded a 58 percent rise in first half 
profit. Net income has risen to $115 million in the six months 
ended December, from $73 million for the same period a year 
earlier. Earnings before tax and one-time items rose 62 
percent to $159 million. Sales recorded a 9.6 percent rise to 
$2.33 billion. Air New Zealand Deputy Chairman Roger France 
says the result represents a solid operating and financial 
performance. Despite high fuel prices, tight labour markets 
and a currency that is making New Zealand less competitive as 
an international tourist destination in some markets, we have 
produced a solid result and have proven our ability to do well 
against competition. As the twin challenges of higher input 
costs and increased competition continue to put pressure on 
the business and across the industry, we are prepared to make 
the bold decisions necessary to maintain our customer service 
leadership and maximise long-term profitability.? The company 
says fuel is its largest operational expense, despite a 
hedging programme being in place to protect the business from 
short-term volatility in the market. It says with no sign of 
oil prices easing in the near future, the company's investment 
in more fuel-efficient aircraft and decisions on where to fly 
them are increasingly important. Mr France says as favourable 
hedges roll off, a significant additional cost burden will be 
placed on the business. Rob Fyfe, CEO, says Air New Zealand's 
priorities over the next six months include marketing China 
ahead of the intended launch in July of the direct Auckland to 
Beijing flights. The company is also improving its Tasman 
service with a the $50 million investment in-flight 
entertainment on the A320s and Boeing 767 fleets which was 
announced last year. There will also be increased economy 
class seat pitch in the front of the economy cabin. Mr Fyfe 
says the year ahead will be challenging and will include 
pressures from the arrival of a new competitor in the domestic 
market, the impact of the global credit crunch on the wider 
economy and a continued tight labour market, but the company 
has a strong financial position and continued innovation on 
the short and long haul businesses, network flexibility and 
customer service will ensure the airline is well placed to 
strengthen its competitive position. He says Air New Zealand 
still expects to better 2007 normalised earnings before 
taxation and unusual items in 2008, however oil price 
volatility has reduced the certainty with which the company 
can forecast its year-end financial performance. A fully 
imputed interim dividend of five cents per share has been 
declared, 67 percent up on last year's interim dividend. Air 
New Zealand shares are down three cents to $1.73.

TELECOM SPLIT PLAN KNOCKED BACK
-------------------------------

Telecom's amended plan to break itself into three separate 
operating divisions has been knocked back by the 
Communications Minister. David Cunliffe says the plan comes 
close to what he wants to see, but needs more work. He says 
public submissions have raised significant issues which show 
the need for more clarity from Telecom, to ensure its 
operational separation will be effective and enduring. He 
points up the need to ensure Telecom's future wholesale 
division is set up in such a way it will be able to treat all 
its customers equally. One of those customers will be the 
company's own retail arm, and Mr Cunliffe is keen to ensure it 
does not have an advantage in the market over other retailers. 
He also wants greater clarity around Internet Protocol 
interconnections, as well as a range of other technical 
matters. Telecom has until March 25 to revise its separation 
plan. The Telecom break-up is based on the model used in the 
UK when British Telecom was split, and on consultation with 
New Zealand businesses, Telecom itself and other stakeholders. 
Today's announcement is part of a process set down when 
Parliament passed the Telecommunications Act in 2001. The 
final hurdle is for the Minister to approve a revised version 
of the plan. Separation Day is tentatively set down for March 
31, by when Telecom is required to have set up stand-alone 
units and realigned its wholesale services. However the full 
break-up process will continue for some time beyond that date, 
and will not be complete until around 2011.

BANK DEFENDS INTEREST RATE RISE
-------------------------------

The ANZ National Bank denies it is being greedy by hiking 
mortgage interest rates. The union for banking staff is 
complaining the bank is raising rates hard on the heels of 
declaring a massive profit, but chief economist Cameron Bagrie 
says that is misleading. He says the bottom line is that the 
cost of cash internationally has risen and that is being 
passed onto the consumer. Mr Bagrie believes the economy will 
go through a period of reasonably soft growth for the next one 
to two years, but says it is not all doom and disaster. "New 
Zealand has still got a very good economic framework that will 
adjust and a low unemployment rate, so it's not the sort of 
scenario where you go reaching for the razor blades." This 
week, the ANZ National increased its two year fixed rate to 
9.7 percent. Its three year fixed rate is now 9.55 percent. 
The bank has recently posted a three month net profit of $310 
million.

NEWCOMERS USING NZ AS A "TRANSIT LOUNGE"
----------------------------------------

United Future says too many migrants are using New Zealand as 
a stepping stone to Australia and the party wants immigration 
policy to be tightened. The party has released figures which 
show about a third of the people heading across the ditch from 
New Zealand were not born in New Zealand. Leader Peter Dunne 
says the statistics show the country is being used as a 
transit lounge for people who want to get into Australia. He 
says too many people are settling in New Zealand without 
permanent employment and move when they get a better offer. He 
says entry to New Zealand should be more closely linked to 
having a permanent job.

Monday, 3 March 2008
~~~~~~~~~~~~~~~~~~~~

PUBLIC CAN SEE SECRET FILES
---------------------------

Previously secret SIS files are about to be made public. Prime 
Minister Helen Clark, who is also the Minister for the Secret 
Intelligence Service, says Police Special Branch files on the 
1951 waterfront strike will be transferred to Archives New 
Zealand. The files comprise a unique record of the country's 
most significant and confrontational industrial dispute. Miss 
Clark says the transfer is part of the SIS meeting its 
obligations under the 2005 Public Records Act.

GREENS WANT DETAIL ON FREE TRADE DEAL
-------------------------------------

The government is being told to come clean on the details of 
its free trade deal with China. An agreement is expected to be 
signed next month and Prime Minister Helen Clark is likely to 
travel to China for the event. However Green Party co-leader 
Russel Norman says the specific detail of the deal has not 
been revealed. He says it may have a bigger impact on the 
country than most other government actions this year and there 
are key questions that need to be answered including labour 
movement, environmental and human rights clauses and the 
impact on domestic manufacturers.

DHBS ACCUSED OF DENYING STAFF CRISIS
------------------------------------

Junior doctors are worried District Health Boards continue to 
deny there is a staffing crisis. Figures released by National 
MP Tony Ryall have revealed 250 out of 2,800 junior doctor 
positions were vacant last month. Resident Doctors Association 
National Secretary Dr Deborah Powell says DHBs will not 
publicly admit there is a problem but behind closed doors, it 
is a different story. She says the boards call the association 
asking for help filling vacancies, but there are not any 
doctors to fill them. Dr Powell says locums are not the ideal 
solution as they are expensive and purely a stop-gap measure. 
She says association members are demoralised by the fact their 
employer will not admit to the shortage.

INTEREST RATE CUT "UNLIKELY"
----------------------------

A business analyst believes there is little chance of a cut in 
interest rates when the Reserve Bank releases its Monetary 
Policy Statement and official cash rate (OCR) on Thursday 
because inflationary pressures are too high. Roger Kerr says 
the bank is likely to comment on the fact that monetary 
conditions have tightened further due to banks increasing 
their interest rates because of the high cost of borrowing 
overseas. Last week, the ANZ National Bank raised its two-year 
fixed rate to 9.7 percent and its three-year fixed rate to 
9.55 percent. The ASB has also lifted fixed and floating rates 
by 20 basis points. Mr Kerr says the price and availability of 
bank credit has shifted from an easy to a tough credit 
environment. The OCR has been sitting at 8.25 percent since 
July.

PM SHRUGS OFF DISMAL POLL RESULT
--------------------------------

Helen Clark is questioning the latest poll which gives 
National an 18 point lead over Labour. The latest Herald-
Digipoll show's Labour is down to 36.5 percent support, while 
National is at 54.5 percent. The prime minister says there is 
a lot of volatility in the poll. She says the poll tells the 
Greens it is over nine percent one month and the next it is 
under five, which should raise questions in people's minds. 
Miss Clark says the movement in support for her party is 
within the poll's margin of error. The PM has also dashed any 
suggestion she will step aside if the polls continue to 
plummet. The suggestion has been made by Sunday Star Times 
columnist Chris Trotter. Miss Clark says as long as she is 
considered a considerable asset to the Labour Party, she will 
continue to offer herself. She says she has no interest in 
what one columnist has to say. Meanwhile, there is a warning 
not to write off Labour just yet, despite the grim poll 
results. Listener political columnist Jane Clifton says a 
recession on the way and the slowing housing market could work 
in Labour's favour. She says it makes some voters more 
conservative and they might start thinking they had better 
stick with the prudent Michael Cullen as Finance Minister.

(What else can you do with dismal results? - BH)

CUNLIFFE GETS PM'S BACKING
--------------------------

Helen Clark is backing up her health minister's move to sack 
the Hawke's Bay District Health Board. David Cunliffe's 
actions have drawn unprecedented unification from the area's 
local bodies, who have joined forces to fight it legally. But 
the Prime Minister says the first responsibility of the 
government is to make sure the health service is the best it 
can be, and the board could not go on the way it was. She says 
there is a lot more to this story than has hit the headlines, 
and in the fullness of time it will be told. 
 
(I am sure there is more. I fear that it may not cover either 
side with glory. - BH)

PAY RISE CONFIRMED FOR PRIMARY SCHOOL SECTOR
--------------------------------------------

The primary school sector is celebrating its most significant 
settlement since pay parity. NZEI members have ratified a 300-
million dollar package negotiated by the union late last year. 
It means most teachers, principals and support staff will 
receive a four per cent pay increase. National President 
Frances Nelson says teachers will also be paid more money for 
any additional responsibilities they take on. She says the 
settlement encourages teaching staff to stay in the 
profession, at a time when teacher supply is very tight.

Tuesday, 4 March 2008
~~~~~~~~~~~~~~~~~~~~~

ANOTHER REASON TO EAT YOUR GREENS
---------------------------------

A team of international researchers led by a New Zealander has 
come up with another good reason to eat green vegetables. The 
scientists have discovered an extract in broccoli can reduce 
the chances of bladder cancer in rats by more than 50 percent. 
AgResearch Senior Scientist Dr Rex Munday says rats also fed 
cauliflower, Brussels sprouts, and watercress produce more 
tissue enzymes that protect against the chemicals that cause 
cancer. Bladder cancer is the fourth most diagnosed cancer in 
the western world. The findings will be published in the 
Cancer Research International Journal. 
 
(Anybody who says there is anything positive about broccoli is 
lying! - BH)

FEWER PEOPLE APPLYING FOR MORTGAGES
-----------------------------------

The latest mortgage figures point to the stark reality of a 
decline in the housing market. Figures released by the 
country's biggest credit reporting agency Veda Advantage, show 
a 27 percent decrease in housing loan applications from 2006 
to 2007. There was a 26 percent drop off in people in the 30-
40 age group applying for loans. January saw a 14 percent drop 
on the same time a year ago. The company says the data shows 
firm evidence that the economic slowdown is biting hard on the 
property market. Veda director John Roberts says given the 
cyclical trends from 2000 through to 2008, there is likely to 
be a similar drop-off this year. He believes the sector is 
going into a seven year cycle and will bring some challenging 
times.

AMNESTY YIELDS STOLEN ROAD SIGNS
--------------------------------

A 'no questions asked' amnesty has led to the recovery of tens 
of thousands of dollars worth of stolen road signs in 
Hastings. Detective Sergeant Darren Pritchard says a local 
contractor faced a bill upwards of $60,000 after road signs 
and cones were stolen. He says the cost of having to replace 
them would have been passed on to the taxpayer. Mr Pritchard 
says the two week amnesty was a resounding success. He says 
under the proviso of 'no questions asked' people are more 
inclined to return stolen goods.

PM SAYS AIRPORT MUST BE KEPT IN NZ HANDS
----------------------------------------

The bid by the Canada Pension Plan Investment Board for 40 
percent of Auckland International Airport looks doomed. New 
regulations announced by Finance Minister Michael Cullen mean 
Cabinet will have to sign off on any sale of strategic assets. 
Dr Cullen says it was important to make the move before 
shareholders voted on the airport's ownership. He says it 
should not scare away foreign investors. "We still have a 
highly open international investment regime by current 
standards. The Australians have rules around foreign ownership 
of airports, many countries or our type have rules in relation 
to these kind of strategic assets." Prime Minister Helen Clark 
says it is important the airport stays in New Zealand hands. 
Miss Clark says she is an Aucklander and she has no personal 
enthusiasm for seeing what is a hugely important strategic 
infrastructure sold offshore. The Canadian bid will still be 
considered by two ministers but a signoff on it is now 
unlikely. Shares in Auckland International Airport have fallen 
30 cents today to $2.18.

TAX LOOPHOLE SET TO CLOSE FOR OIL COMPANIES
-------------------------------------------

The Government is moving to close a tax loophole benefiting 
the petroleum mining industry. Under current rules petroleum 
miners can offset their costs spent in other countries against 
income from operations in New Zealand. Finance Minister 
Michael Cullen says that means the country might receive less 
tax than expected on profits from domestic oil production. He 
says that is unacceptable when domestic oil production revenue 
is at an all time high and predicted to grow. The Income Tax 
Act will be amended to prevent the practice.

LOCAL COUNCILS NEED MORE ETHNIC DIVERSITY
-----------------------------------------

There is a call for more ethnic diversity in local government. 
The Human Rights Commission's annual race relations report 
shows 87 percent of those elected on councils are European. 
Maori representation has risen from 4.3 percent in 2004 to 4.8 
percent in 2007. Commissioner Joris de Bres says there needs 
to be more Maori, Pacific and other ethnic participation in 
local government. He says Auckland in particular is out of 
sync, with a large non-European population. Mr de Bres says 
local bodies need to encourage a broader range of candidates.

SCIENTISTS URGE GOVT TO TREBLE RESEARCH FUND
--------------------------------------------

The number of scientists who have signed an open letter to the 
government pleading for more research funding is growing. Four 
hundred and sixty have now put their names to it. The 
scientists are urging the government to treble the Marsden 
Fund, which last year dished out 44 million dollars in 
research grants. They say that is a pittance, providing for 
just seven to ten percent of research applicants. The open 
letter says researchers are growing weary of being turned down 
year after year, and weary of seeing young scientists becoming 
cynical about funding promises that never eventuate.

(watch this space - BH)

GOVT'S EMISSIONS TRADING SCHEME SAVAGED
---------------------------------------

The Government's proposed emissions trading scheme is being 
savaged by Greenpeace. The environmental lobby group argues it 
will do little to reduce New Zealand's greenhouse gas 
emissions and will impede development of less carbon intensive 
production technologies. Greenpeace also slams the timing of 
permit allocations and the fact the agricultural sector will 
not be required to participate until 2013. The report argues 
all sectors must be included if the trading scheme is to work 
effectively. Co-author Dr Hugh Saddler says the scheme is 
fatally flawed. He says by being given up to 90 per cent of 
permits, businesses are not being landed with the true 
environmental costs of their consumption decisions. Dr Saddler 
says the trading scheme will likely deliver only incidental 
reductions in greenhouse gases. Greenpeace also slams the 
timing of permit allocations and the fact the agricultural 
sector will not be required to participate until 2013.

HOUSING NZ GETS TOUGH WITH WAYWARD TENANTS
------------------------------------------

Housing New Zealand is clamping down on state house tenants 
who damage their properties. The organisation is increasing 
visits to high risk state homes in what it says is a way of 
helping tenants look after the properties they live in. 
However, New Zealand First Housing spokesman Pita Paraone 
wants a tougher approach. Mr Paraone says those who continue 
to abuse their houses should be kicked out. He says there are 
plenty of others waiting in line for a state house. Figures 
show the amount of damage being done to state houses has 
increased by 40 percent in just two years, with the damage 
bill up to $23 million.

INTEREST RATE CUT APPEARS TO BE LONG WAY OFF
--------------------------------------------

It could be next year before the country sees a drop in 
interest rates. The New Zealand Institute of Economic Research 
is predicting inflation will stay above the Reserve Bank's 
target range of three percent for another 12 months. Senior 
economist Grant Andrews says there will be pressure to hold 
interest rates for longer than many expected. He says rates 
will stay at their current levels until late this year or even 
next year. Mr Andrews doubts the Reserve Bank will raise 
interest rates in the next 12 months, but it could happen.

Wednesday, 5 March 2008
~~~~~~~~~~~~~~~~~~~~~~~

EDUCATION MINISTRY TOLD IT'S OUT OF TOUCH
-----------------------------------------

The Education Ministry is being told it is out of touch with 
the realities of a primary school classroom. A survey by the 
Hawke's Bay Principals' Association on anti-social behaviour 
has found that nearly a third of teachers surveyed had a least 
one pupil who had physically attacked another. Association 
spokesman Malcolm Dixon says the Ministry needs to put more 
money into resources for children and focus less on 
administration. He says teachers and principals are trained to 
sort out moderate behavioural problems but there is too much 
pressure on teachers to deal with severe anti-social 
behaviour, when it is not their responsibility. However, the 
union representing primary teachers says simply giving schools 
more money to deal with the problem is a band-aid solution. 
NZEI spokeswoman Frances Nelson says teachers have also 
reported ongoing physical attacks on themselves and teacher 
aides. She is warning schools not to tackle behavioural 
problems alone. Ms Brown says there are real social issues 
behind disruptive or violent behaviour which extends beyond 
the school gate.

POWER PRICES ON THE RISE
------------------------

The price of power is increasing by almost $8 a month for some 
consumers and lines company Vector is blaming inflation and a 
rise in transmission costs. Vector says the rise has come 
about from the thresholds regime set by the Commerce 
Commission which determines how electricity lines companies 
set prices and deliver quality of service. It says the 
increases also include a re-balancing component that has been 
agreed in principle with the Commission. Northland has the 
largest power increase at about $7.80 a month. Aucklanders 
will pay an extra $7.60 and users from Wellington $1.07 a 
month on average.

WARNING ABOUT PACE OF EMISSIONS REDUCTION
-----------------------------------------

New Zealand is being warned it may struggle in a low emission 
global economy if it does not do more to reduce emission 
levels at a faster rate. Research from the privately funded 
think-tank, the New Zealand Institute, shows New Zealand's 
climate change debate needs to be more fact-based. Chief 
executive David Skilling says Government policies such as the 
emissions trading scheme will only reduce domestic emissions 
to their 1990 level by 2050. He says there is a big gap 
between the rhetoric and the policy commitments. He believes 
New Zealand needs to ensure that it is positioned to adopt new 
technologies to reduce carbon as they become available.

TOURISM OPERATORS URGED TO TIGHTEN SECURITY
-------------------------------------------

A secure parking facility and more secure storage spaces have 
been indicated as possible initiatives to prevent crime 
against tourists in Rotorua. The Destination Rotorua Tourism 
board has held talks with local police. Spokesman Warren 
Harford says there are also simple precautionary actions which 
one local tourist attraction has already implemented. He says 
the Rainbow Springs nature park has already taken measures 
such as reducing the amount of foliage that criminals can hide 
in before breaking into vehicles. It has also introduced 
lighting, a security fence and security cameras. Mr Harford 
says he hopes other local attractions will also adopt some of 
Rainbow Springs' initiatives.

NATS AND LABOUR DRAW SWORDS OVER HB DHB
---------------------------------------

National is accusing a former Health Minister of trying to 
cover up conflict-of-interest allegations at the Hawke's Bay 
District Health Board. New documents have been leaked showing 
Peter Hausmann, who was appointed to the DHB by Annette King, 
made numerous changes to a community services contract 
proposal his own firm ended up bidding on in 2005. The 
Government is urging a wait and see approach on the 
allegations made against Mr Hausmann. But National's health 
spokesman, Tony Ryall, is turning his attack on the former 
health minister. He says Annette King stands indicted for her 
involvement, and her colleagues and the Ministry of Health are 
involved in a cover up. Tony Ryall says current Health 
Minister David Cunliffe is compounding the errors of previous 
ministers. However, Mr Cunliffe has launched his own attack on 
the Hawke's Bay District Health Board's behaviour prior to its 
sacking. He has slammed the board for trying to issue an 
injunction on a potentially damaging conflict-of-interest 
report. Mr Cunliffe says his decision would have been easier 
if the board had not attempted to injunct the process. He says 
he had not made a decision on what to do with the DHB until 
the afternoon he made the announcement.

Thursday, 6 March 2008
~~~~~~~~~~~~~~~~~~~~~~

TAX CUTS WILL PUT PRESSURE ON INFLATION
---------------------------------------

A senior economist says tax cuts will put pressure on 
inflation, despite the Finance Minister's comments saying 
otherwise. Michael Cullen is adamant tax cuts will be 'non 
inflationary' and be part of Labour's next Budget. But BERL 
Senior Economist Ganesh Nana says there are many inflationary 
pressures around and tax cuts are among them. Finance Minister 
Michael Cullen says discussions have been held, and they will 
continue despite what has happened. He says it was a close 
call, and the Government considered cutting off the 
discussions, however, it is hoped that an amicable conclusion 
will be found.

MORE THAN 800,000 ON BROADBAND
------------------------------

The number of New Zealanders accessing the Internet through 
broadband has overtaken the number on dial up for the first 
time. More than 800,000 are now on broadband. Six hundred and 
seventy-five thousand subscribers remain on dial up, but 
numbers of dial up connections are falling, whereas broadband 
numbers are rising. 

(That would be impressive if we had something that really 
could be classed as broadband. Anything with an upload speed 
of 128 kb/s is pathetic. Yoohoo Telecom, IHUG, Telstra, etc.! 
Give us broadband. - BH)

PUBLIC RIGHTS WILL BE UNDERMINED
--------------------------------

New rules on the installation of telecommunications gear are 
upsetting the Green Party. They allow local councils to 
approve the location of cell phone antennae, cabinets on 
roadsides and power poles more swiftly. Green MP Sue Kedgley 
says public rights will be undermined as the installations 
will be able to happen without consultation with residents. 
She is not happy numerous submissions opposing the move have 
been ignored. Meanwhile the government says local council 
controls will remain for locations that are near areas that 
have heritage or amenity value.

NATS WILL GO AHEAD WITH TAX CUTS
--------------------------------

National is waiting to see if the Minister of Finance will 
blink on his promised tax cuts. It comes as the Reserve Bank 
warns of their inflationary pressure, and the Crown Accounts 
record an almost $400 million deficit on their operating 
balance. National's Finance spokesman Bill English says 
Michael Cullen has recently made much of his four tests for 
tax cuts and has been looking for an excuse to back off. He 
believes today's developments might give the Finance Minister 
the reason to renege on his recent promises. National says it 
remains committed to tax cuts. Bill English says the 
Government's core operating statements are in good shape for 
tax cuts. He says they would phase in their programme to match 
macro-economic conditions.

PETERS SAY SCANT COMFORT FOR EXPORTERS
--------------------------------------

Monetary policy is again in the firing line from New Zealand 
First. It comes as the Reserve Bank Governor Alan Bollard has 
today left the Official Cash Rate unchanged at 8.25 percent. 
Party leader Winston Peters says that is scant comfort for 
exporters who are competing in an international market bereft 
of much of the support and lower interest rates their 
competitors enjoy. He says the whole economy is blocked by a 
constipated attitude towards monetary policy and the narrow 
focus of the Reserve Bank Act.

GOVT'S BOOKS IN THE RED
-----------------------

There has been a major turnaround in the Government's books 
with the finances now in the red. The latest financial 
statements for the seven months ending in January show a $394 
million deficit on the operating balance, a massive $4.2 
billion below forecasts. Finance Minister Michael Cullen puts 
the turnaround down to weak international financial markets 
and investor concern over the US economy. He says returns on 
the asset portfolios of the Superannuation Fund, ACC and the 
Earthquake Commission were $2.5 billion below predictions. Dr 
Cullen says the accounts remain consistent with the 
Government's fiscal strategy which is to maintain gross Crown 
debt at around 20 percent of GDP and to make sure annual Super 
Fund commitments are met. He says the figures are a reminder 
of the need to maintain a prudent fiscal policy and maintains 
the Government will continue that approach.

PROPERTY SLOW DOWN CONTINUES
----------------------------

The Auckland property market continues to slow down. The 
region's largest real estate company, Barfoot and Thompson, 
sold 600 homes last month, down a third on February last year. 
Managing director Peter Thompson says the country is certainly 
heading towards a buyer's market. He says the average sale 
price has fallen three percent since January, and for the 
first time in 18 months it has slipped below the $500,000 
mark. He says the media attention on housing has scared a lot 
of people off buying property, some with reason and some 
without reason. Mr Thompson says there are still a lot of 
people wanting to buy homes, despite the slowing market. He 
says a lot of offers are being made. He says vendors are going 
to have look at their selling price, and may have to lower it. 
But he says when they do sell, it puts them in a far better 
position as a buyer.

RATEPAYERS UP FOR 5% HIKE
-------------------------

Wellington City ratepayers are facing an average rates 
increase of around five percent for the next financial year. 
The Wellington City Council has today released the first 
details of its draft annual plan for 2008 to 2009. New 
initiatives include a $700,000 plan to revamp the Courtenay 
Place entertainment district, $350,000 to improve access and 
parking at Hataitai Park, and $750,000 for an artificial 
surface at Nairnville Park. The council is also seeking 
$225,000 to continue the work of the anti-graffiti flying-
squad for another year. 
 
(Lower Hutt has managed to stick with a 2.2% rise. - BH)

CONCERNS FROM REAL ESTATE SECTOR
--------------------------------

The real estate sector is concerned about planned new laws for 
the industry. Parliament's Justice and Electoral Select 
Committee is hearing views on moves to have the industry 
independently regulated. Real estate broker Trevor Boone 
accepts there are ratbags in the industry but believes the 
legislation is overly focussed on them. He says 98 percent of 
agents probably do a good job so MPs need to be aware of not 
legislating against the innocent. 
 
(Trust us, we know what we are doing? Yeah, right! - BH)

NO CHANGE TO INTEREST RATES
---------------------------

The Reserve Bank has decided to leave the official cash rate 
unchanged at 8.25 percent. Governor Alan Bollard says the 
outlook for economic activity has deteriorated since the OCR 
was last reviewed in January due to weaker prospects for world 
growth, tighter credit conditions, a sharper-than-expected 
slowing in the housing market and recent dry weather 
conditions. He says the Reserve Bank expects GDP growth of 
around two percent over the next three years. ?Despite the 
weaker outlook for activity, we expect headline inflation to 
remain high, partly due to the inclusion of the planned 
emissions trading scheme in our projection. Higher food and 
energy prices are also contributing to near-term inflation. 
Furthermore, over the medium term, a tight labour market, 
strength in commodity prices and the impact of announced 
government spending plans and assumed personal tax cuts will 
add to inflationary pressure. Excluding the effects of the 
emissions trading scheme, inflation is projected to return 
close to the mid-point of the target band by 2010. "Further 
strength in labour costs, additional fiscal stimulus, and high 
inflation expectations represent key upside risks to 
underlying inflation." Dr Bollard expects that the OCR will 
need to remain at current levels for a significant time yet to 
ensure inflation outcomes of one to three percent on average 
over the medium term.

BACKING FOR ELECTRONIC MONITORING
---------------------------------

The Sensible Sentencing Trust says the law is too soft on 
criminals who have served their sentence, but remain a risk to 
the public. The group is backing the mother of Michael Choy, 
who is calling for an electronic monitoring system for high 
risk offenders after their release. Rita Croskery says Bailey 
Junior Kurariki, one of the killers of her son, has not 
reformed and the public will be in danger when he is freed in 
September. Garth McVicar from the Sensible Sentencing Trust, 
says there needs to be a follow-up system which keeps 
offenders out of prison. He says criminals can already be 
released with conditions and it would not be hard to amend the 
law to include electronic monitoring. Kurariki has another 
mandatory parole hearing tomorrow. 
 
(I dislike the SST's policies generally, but this seems 
stranger than usual. It would make sense to argue for 
sentencing to take risk into account, but to retrospectively 
add conditions to a completed sentence is simply unjust - BH)

RATES RISE OF 5.1% FOR AUCKLAND CITY RESIDENTS
----------------------------------------------

The Auckland City Council has voted on a rates increase of 5.1 
percent. Councillor Doug Armstrong says the increase is a lot 
lower than the previous council's projection of 10.5 percent. 
The council's draft annual plan opens for submissions in 
April.

ANOTHER STEP TOWARDS PARTY PILL BAN
-----------------------------------

It is only a matter of weeks before party pills will be made 
illegal as latest step to ban them passes easily through 
Parliament. National and Labour have supported Jim Anderton's 
bill which seeks to make illegal BZP, the main ingredient. The 
Greens, Maori Party and Act oppose the bill. New Zealand 
First's Barbara Stewart supports the ban, saying the country 
cannot afford to gamble with the health of young people. 
However, Green MP Metiria Turei says those who use party pills 
will simply move to other drugs, such as methamphetamine and 
illegal pharmaceutical products. Maori Party MP, Hone Harawira 
claims there is a lack of evidence that the party pills are 
causing harm.

TRAINING SCHEME WOULD HELP FOREIGN DOCTORS
------------------------------------------

Standardised training for foreign doctors is being rolled out. 
Medical officers from six countries including New Zealand have 
formed a steering committee which will see the nations work 
collaboratively to supervise, assess and educate doctors and 
specialists. Dean of Education with the Royal Australasian 
College of Physicians, Professor Kevin Forsyth, says the 
scheme would make it easier for international doctors to be 
accepted in New Zealand and means the trainees would be of a 
comparable standard to those educated in New Zealand. He says 
trainees would also understand the medical climate of the 
country and the standard of care expected. Prof Forsyth says 
in the long run it could help to ease the country's doctor 
shortage.

Friday, 7 March 2008
~~~~~~~~~~~~~~~~~~~~

NEW RULES FOR IMMIGRATION ADVISORS
----------------------------------

The Government is imposing tough new rules on immigration 
advisors. Under the provisions of the Immigration Advisors 
Licensing Act, those working in the industry will have to be 
licensed from May of 2008. Immigration Minister Clayton 
Cosgrove says those wishing to provide immigration advice will 
have to prove their expertise by meeting competency tests and 
will have to adhere to a code of conduct. He warns there will 
be stiff penalties for unregistered or fraudulent advisors. Mr 
Cosgrove says licensed advisors who break the rules can be 
fined up to $10,000. Unlicensed practitioners could face seven 
years in jail and a fine of up to $100,000.

RISE IN COMMERCIAL BUILDING WORK
--------------------------------

The residential housing market may be in the doldrums, but the 
commercial sector is looking a little brighter. The value of 
non-residential building work rose 13 percent in the December 
quarter. Statistics New Zealand says the increase is largely 
due to work on commercial buildings and follows a fall of 1.1 
percent in the previous quarter. Residential building work 
fell 1.5 percent last quarter, following a rise of 4.4 percent 
in the September quarter. The unadjusted value of all building 
work is $3,661 million for the December quarter.

TAX CUTS STILL ON THE CARDS SAYS CULLEN
---------------------------------------

Finance Minister Michael Cullen is promising there will be no 
extra borrowing to fund tax cuts. Dr Cullen says tax cuts 
remain on the cards despite the Government's $394 million 
operating surplus for the seven months to January 31. He says 
if Crown debt was raised to 25 percent of GDP to cover tax 
cuts, it would bring annual finance costs of $700 million. He 
says such an approach would make New Zealand's current account 
position weaker at a time when it needs to be stronger.

REDS IN DAIRY CO'S BED?
-----------------------

New Zealand First claims Russian spies may have access to New 
Zealand's dairy industry if a company with Russian links buys 
into a dairy cooperative. The party is not happy about an 
attempt by the Russian-controlled company Nutritek Overseas 
PTE to buy a controlling stake in New Zealand Dairies Ltd. 
Nutritek wants to buy up to 100 percent of the dairy farm and 
has applied to the Overseas Investment Office. In the House 
yesterday, MP Doug Woolerton questioned the Russian business 
connections. "Is the Government favourably considering an 
application that gives a grouping of Russian businessmen, 
probably ex-KGB operatives, a share of New Zealand's critical 
dairy industry?" Finance Minister Michael Cullen has confirmed 
the deal is under consideration. He says New Zealand Dairies 
is a small player but has been in some financial trouble and 
that will be taken into account in considering the 
application.

EMPTY BEDS DUE TO STAFF SHORTAGES
---------------------------------

The Nurses Organisation is concerned that one in ten beds in 
Wellington Hospital cannot be used because of staff shortages. 
Chief Executive Geoff Annals says he was shocked to hear that 
38 of the 348 medical and surgical beds at the hospital were 
out of use yesterday. The situation is worst in the maternity 
wards, where the hospital is short of 15 full-time midwives. 
Mr Annals says workforce issues need urgent attention. He says 
having resources that cannot be used when there is so much 
need in the community is a terrible waste.

FELTEX DIRECTORS BEING SUED
---------------------------

The directors of collapsed carpet maker Feltex are being sued 
by shareholders. The Feltex public share float in June 2004 
was worth $254 million, but shareholders lost everything when 
the company went into receivership two years later. 
Shareholders claim they were misled by the company's 
prospectus. Advertisements will appear in national papers this 
weekend to advise the estimated 10,000 shareholders of the 
court action, informing them that they are a part of it unless 
they specifically opt out. The High Court claim is being 
handled by a Christchurch law firm on behalf of 800 
shareholders who have contributed towards the cost.

TECHNOLOGY COULD BRING FASTER COURT HEARINGS
--------------------------------------------

It is hoped the time it takes for a court case to be heard 
will be reduced by up to a third because of new recording 
technology. Courts Minister Rick Barker says the 'For the 
Record' technology provides a high-quality recording of 
evidence, which is then relayed to transcription staff 
situated outside the courtroom. It was recently used 
successfully at a murder trial at the High Court in 
Wellington. Mr Barker says the digital recording device allows 
those speaking in a court to talk at a normal, uninterrupted 
speed, which means the hearings will be completed more 
quickly. 
 
(This project seems to have been in the wings forever. Get it 
out there. - BH)

GOVT FUNDS FOR AUCKLAND ART GALLERY
-----------------------------------

Prime Minister Helen Clark has announced $30 million is going 
towards Auckland Art Gallery's redevelopment. The money is 
coming from the Government's fund for projects where the 
collections held by the museum or gallery are of national 
significance. Helen Clark says the money will be spread over 
four years, with an initial grant of just over $20 million 
this year. She says the gallery holds almost 14,000 works but 
only four percent of them can be shown at any one time. Ms 
Clark says the redevelopment will increase floor space, 
dedicate more space to New Zealand art, and include work on 
the heritage building.



SUBSCRIBE OR UNSUBSCRIBE 
~~~~~~~~~~~~~~~~~~~~~~~~ 
 
Brian Harmer does NOT administer the mailing list. Please do 
not send subscription related messages to him. Instead, visit 
the website listed below, where you can make changes as 
required. If you want to send a personal message to Brian, 
change the country code to nz and send a message 
brian.harmer at vuw.ac.xx If you do choose to comment on 
something in these posts, please don't send the whole 
newsletter with your message. Just trim it back to the 
relevant bits. Thanks. Brian.