WYSIWYG NEWS - 25 May, 2008

[news at wysiwygnews.com]

Subject: 25 May, 2008 
----- WYSIWYG NEWS ------------------------------ 
Copyright, Brian Harmer.

Chaos and woe! Sometimes various obligations coincide in ways 
that mean something just has to give. For the last few weeks, 
I have had to neglect WYSIWYG in favour of the tasks that put 
bread on the table. In fact the load will continue for another 
few weeks, but some good friends in Fortuna in the far 
North of California wrote concerned that some larger disaster 
may have befallen. Thanks for your concern, but no, it was 
just sheer administrative overload. So much so, that I 
reprehensibly overlooked the wedding anniversary of some other 
good fiends in Alexandria, Md. You know who you are, and my 
belated congratulations to you both. In fact the main consumer 
of my time has been the lack of good judgement on my part as 
to when various written assignments should be handed in, and 
the result is now a severe marking pinch. I'll know better 
next year. Anyway, I apologise for the absence. I have 
attached the news for two weeks. Three weeks is just too much 
in one email! 

During my absence from the WYSIWYG keyboard, I had the 
privilege of travelling to the University of Waikato (in 
Hamilton)to be the external examiner in the oral defence of a 
PhD. I am happy to say that the young man was adjudged to have 
passed, and will soon be in business in his native Thailand. 
However, the trip to the Waikato was an adventure in itself. 
The examination had been scheduled for 1:30 pm, and my flight 
from Wellington was scheduled to leave at 8:35 am. After 
attending one of our own graduation ceremonies the previous 
evening, I arrived at the airport in plenty of time on Friday. 
I was alarmed at the numbers of passengers milling around, and 
the length of the queues at ticketing and check-in counters. 
Some major disruption had obviously occurred. Sure enough, a 
thick fog had rendered both Auckland and Hamilton inoperative. 
Closure in those places has strong flow-on effects on every 
other domestic service as the day progresses, with aircraft 
and crews in the wrong place to commence scheduled services. 
Obviously my flight was "delayed", to begin with. Soon, its 
status changed to "cancelled", and so far I have no quarrel 
with Air New Zealand. When nature intervenes so 
comprehensively, there is little that they can do. 
Announcements were made asking passengers on cancelled flights 
to "go home and call the booking number to reschedule on 
another day". Those with urgent travel needs were asked to go 
to the customer service (ha!) counter. Of course, many had 
urgent need, and since the candidate had flown out from 
Thailand to be examined and was due to return to Bangkok the 
next day, I thought I had a duty to get there if humanly 
possible. There were thirty people in the line and each person 
seemed to take the sole service (ha!) person three or four 
minutes to be dealt with so the line was slow moving. I was 
just two from the service (ha!) desk, when some sort of 
customer liaison person came along and asked if we were all 
international passengers. Most of us weren't, and he pointed 
us somewhat grumpily to another line with a small but not 
easily seen sign for "disrupted flights" as if it were our 
fault. So after 40 minutes in the wrong line, I was now at the 
back of another longer line. My cell phone was broken, so I 
was using my laptop via the airport's excellent free wireless 
broadband service to communicate with my hosts in Waikato. 
They confirmed the "get here at all costs" message, so I 
persisted in the line, but not before telling the officious 
young man in the Air New Zealand uniform that, while I didn't 
blame them for the delays, their communications were woeful. 
He made matters worse by attempting to say (quite falsely)that 
they had given clear instructions over the speakers. This 
enraged the thirty or so people behind me in the queue who 
agreed with me that no relevant announcement had been heard 
other than "go to the customer service (ha again!) desk." Take 
a big brickbat, Air New Zealand! When I eventually reached the 
front of the correct line, a nice young woman found me a seat 
to Rotorua which is a little more than an hour's drive from 
Hamilton. Take a bow that young lady from Air New Zealand. You 
compensated for the sour taste left by your aggressive and 
less competent colleague. My flight was scheduled to leave at 
11:30 am. Now I had to find an electrical power point, since 
the battery in my laptop was nearly exhausted (as was I). The 
trick is to find one anywhere in the airport that is within 
range of the wireless antenna system. There are astonishingly 
few power outlets around the walls, and most of those seem 
dedicated to vending machines, but at last I found one in the 
right area. I was able to advise my hosts of the revised 
travel plan, and they said that if there was no one there to 
meet me at Rotorua, there would be a rental car available for 
me. So I attended to my emails and began re-reading the thesis 
of the candidate during the forty minutes or so before 
departure. During the wait, I heard several more 
cancellations, and passengers from those flights were advised 
that there would be no further seats to Auckland or any nearby 
regional airport that day. Please go home. My flight was 
called, and after an uneventful trip in the Bombardier Q300 I 
arrived in the once familiar but now nostalgic sulphurous 
climate of Rotorua. The day was beautiful, and the crisis 
feeling was alleviated by the sight of the candidate's 
professor there to meet me. 

It is many years, perhaps twenty since I last travelled the 
road from Rotorua across the Mamaku range to Hamilton, and I 
had forgotten just how heartbreakingly lovely the undulating 
farmlands of the South Waikato are. Despite a drought-plagued 
summer, the countryside was now presenting a magnificent lush 
green appearance. I have spoken often of the textures of the 
landscape between the Manawatu and Wanganui regions. This area 
has its own quite unique look and feel. It appears prosperous 
and gentle, though I am certain that many a hard working 
farmer would snort at this townie's perspective. Neat fences 
and orderly hedges and lush trees contribute to the illusion, 
I suppose. Through gentrified Tirau and always beautiful 
Cambridge, and around the edges of Hamilton's sprawl we came 
at last to Waikato's very attractive campus, arriving just 
before 2 pm. Last time I had been on this campus was to a 
convention of the New Zealand Photographic Society, way back 
in the late sixties. In those days the campus was mostly bare 
yellow clay, an amazing contrast to the leafy pleasant place 
of today. My return journey was booked at 5:00 pm Late but 
still workable, to the great relief of the candidate and the 
examination panel. Sandwiches were provided and the 
examination process began with the happy result I have already 
mentioned. The young man's emotion on hearing the good news 
made all the anxieties and irritations of the day worth while. 
Congratulations Dr Siritanachot (though he can't use that 
title till his graduation ceremony). The day ended with a pale 
echo of the morning's chaos as the flow-on effects from the 
morning's disruptions meant a further hour's delay. Sadly 
Hamilton Airport has the gall to charge a domestic departure 
tax, and offers little in return. Certainly no broadband, free 
or otherwise, unless you are a Koru club member. The only 
positive was a wonderful view to the West and the setting sun 
at the end of a very long day. 
----  
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 a donor who preferred to 
remain anonymous. Many thanks.
----  
On with the News. 

Monday, 12 May 2008
~~~~~~~~~~~~~~~~~~~

CLAIMS OF TOLL SWEETENERS IRK NATIONAL
--------------------------------------

National claims Labour agreed to a number of sweeteners in its 
bid to buy back rail. National's finance spokesman Bill 
English says the public could end up paying $1 billion for the 
business, with a number of backroom deals being done. He says 
it is certainly more than the $665 million the Government said 
it was paying for it. Mr English says the agreement includes a 
deal on rent free facilities for Toll's freight forwarding 
business. He has heard Toll has also negotiated a discount for 
the carriage of its freight. Beehive sources saying Finance 
Minister Michael Cullen has signed up to a strict 
confidentiality agreement which means the final cost will not 
come out until the deal is finally wrapped up at the end of 
the next month. There are reports the taxpayer will be saddled 
with a loan taken out by Toll, worth around $200 million. But 
those close to Dr Cullen says it is closer to $100 million.

ORIGIN TAKEOVER PUTS CONTACT IN SPOTLIGHT
-----------------------------------------

Contact Energy shareholders will be offered cash for their 
shares if the British company bidding for Origin Energy 
succeeds. BG Group is launching a takeover offer for 
Australian power and gas retailer Origin, which owns a 51.36 
percent share of Contact. BG says it has spoken with the New 
Zealand Takeovers Panel about what it plans to do with 
Origin's shareholding in Contact if its bid for Origin 
succeeds. The Takeovers Panel (NZTP) has granted Origin an 
exemption from any requirement to make an immediate takeover 
offer for Contact or gain approval from Contact shareholders 
in regard to the Origin transaction. However if the proposed 
acquisition of Origin is successful BG Group would make a 
follow-on offer and be required to make a cash bid for Contact 
within a month of the offer becoming unconditional. That bid 
would have to be at the value per share attributed to Contact 
by BG Group in the price payable for Origin shares. The value 
would be verified by an independent expert approved by NZTP. 
The bid would be on terms and conditions approved by the NZTP 
and would include the approval of the New Zealand Overseas 
Investment Office (OIO). If, at the time of BG Group's 
successful acquisition of Origin, Origin's shareholding in 
Contact is 20 percent or below, then the code would not apply 
and BG would not have to make a follow-on offer. When fixing 
the proposed price of A$14.70 for the acquisition of Origin 
shares, the board of BG did not attribute any premium to the 
market price of Contact shares. BG Group has not yet made an 
application to the OIO. Contact Energy shares are trading one 
cent higher on $9.03.

NUTRIENT CLAIMS DON'T MATCH FOOD CONTENT
----------------------------------------

An ESR study has found more than half of foods do not contain 
the nutrients their labels say they do. The contents of 58 
percent of the foods tested did not meet the claims on their 
labels. Food Safety Authority spokeswoman Jenny Reid says it 
is important to remember the levels on food labels are an 
average. She says the level of iron in a bowl of cereal can 
vary each day because of the way it is mixed in with the whole 
packet. Ms Reid says nutrient content is also affected by the 
way a product is stored and when it is bought.

NATIONAL RETAINS HEALTHY LEAD IN LATEST POLL
--------------------------------------------

National retains a strong lead over Labour in a new Roy Morgan 
Poll, with a 2.5 percent jump in support to 49.5 percent. 
Labour has had a one point rise in support, putting it at 35.5 
percent, 14 points behind National. The Greens have dropped 
two points to 6.5 percent. New Zealand First is pushing the 
MMP threshold at 4.5 percent, the Maori Party is on 2 percent, 
while ACT and United Future are both on 1 percent. 
 
(There seems a certain inevitability by now to a change of 
government. Unless they do something stupid between now and 
the Election, National should just about walk in. This is a 
dispassionate observation, not necessarily a statement of 
preference. - BH)

BOOST FOR VOLCANO MONITORING
----------------------------

The greater Auckland region has received a boost to its 
earthquake and volcano monitoring services as an earthquake 
recorder is installed at the bottom of a 250 metre deep 
disused borehole at Riverhead in the Rodney District. GeoNet 
Volcano Network coordinator Craig Miller says having the 
instrument deep underground and away from the city means there 
will not be any disturbance from ground vibration, which is a 
common feature of all cities. He says the equipment will allow 
scientists to measure and record much smaller earthquakes and 
give people in the Auckland region warning of possible 
eruptions ranging from a few days to a few weeks. The 
recording device is one in a network of six instruments in 
place around the Auckland region, capable of detecting early 
signs of volcanic unrest in the Auckland volcanic field, which 
extends from Papakura to Orewa. Geonet hopes to install a 
further two instruments on Waiheke Island and on the 
Whangaparaoa Peninsula.

NAT'S GANG PLANS NOTHING NEW SAYS GOVT
--------------------------------------

The Government is struggling to see what is new about John 
Key's plan to get tough on gangs and those who manufacture and 
deal in P. The National Party leader says police would be 
given greater powers to crackdown on gangs, with a particular 
focus on those involved in supplying P. Mr Key says society 
has had enough of the massive growth in the use of the drug 
and its influence on the increase in violent crime. He says P 
has caused more problems than any other illegal drug. Under 
National's policy, the courts would also be given the ability 
to hand out tougher sentences to those involved in a gang. 
Justice Minister Annette King says a lot of work is being done 
by the police, the Ministry of Justice and the Government in 
targeting gangs and National is finally catching up. She says 
the test now will be for National to support the Government's 
proposed Organised Crime Agency, as it works its way through 
Parliament.

RETAIL SQUEEZE COULD BRING BARGAINS
-----------------------------------

There could be bargains to be had, as the economic spending 
squeeze starts to bite retailers. John Albertson from the 
Wellington Retailers Association says the local market has 
slowed up dramatically in the last year and big ticket 
retailers who sell items such as appliances, furniture, carpet 
and curtains are the hardest hit. However, there has been some 
growth for supermarkets. Clothing retailers also seem to have 
had a good summer, but are now being hit by the late arrival 
of winter. Mr Albertson says in addition to falling sales, 
retailers are facing rising costs. He says during tighter 
economic times, there tend to be more sales and promotional 
activity. 
 
(Economic rationalism can be very cruel. - BH)

Tuesday, 13 May 2008
~~~~~~~~~~~~~~~~~~~~

EMISSIONS WORRIES BEING ADDRESSED - GOVT
----------------------------------------

The Government says it is addressing concerns raised by the 
operator of the Tiwai Point aluminium smelter concerning the 
emissions trading scheme but suspects the multi-national 
company wants to pass the burden onto the taxpayer. Rio Tinto 
says introducing the scheme in New Zealand ahead of overseas 
competitors, will put aluminium production at risk and could 
result in the multi-national company moving offshore. But 
Energy Minister David Parker says the Government is already 
taking action. He says large companies will be shielded as the 
Government is proposing to delay the phase out of free 
allocation to trade-exposed industry until 2019. Mr Parker 
believes it is a case of Rio Tinto wanting to minimise its 
emission costs and let the taxpayer pay the bill. The smelter 
has the support of the Southland Chamber of Commerce. It says 
the Bluff smelter is the cleanest in the world. Chamber of 
Commerce CEO Richard Hay says the smelter has 950 staff onsite 
and effectively employs another 2,000 offsite, including 
engineering companies. He says the Southland employer is the 
most efficient and greenest smelter of the 200 worldwide.

HYDRO LAKE LEVELS REMAIN BELOW AVERAGE
--------------------------------------

Despite recent rain in many parts of the country, the 
electricity industry says hydro lake storage levels in the 
South Island remain a concern. Transpower reports the amount 
stored is still at around 65 percent of the average for this 
time of year. Chief executive Patrick Strange says recent rain 
has helped, but it is only the start of winter and the 
forecast is for continuing dry conditions. The colder weather 
has also seen an increase in the demand for electricity. Dr 
Strange says larger users are already reducing their 
electricity and he is encouraging everyone else to continue to 
switch off any appliances and lights that are not being used. 
 
(There have been some very heavy falls in highly localised 
events in the last two weeks. - BH)

FOOD PRICES UP ANOTHER 1.2 PERCENT
----------------------------------

The cost of the usual supermarket shop jumped another 1.2 
percent last month. The main contributors to the increase were 
yoghurt, up almost 9 percent, eggs up 7.6 percent and various 
sauces up 5 percent. Chocolate and cheese both fell in price. 
The April rise means grocery prices have risen 10.7 percent in 
the past year. When all categories of food are included, the 
rise for the year is 6 percent.

REAL ESTATE SALES COLLAPSED IN APRIL
------------------------------------

New figures show the residential real estate market suffered a 
further slump in sales last month. Real Estate Institute 
president Murray Cleland says sales collapsed to just under 
4,500 in April, a 45.5 percent drop on what they were a year 
ago. He thought sales in March were low, but says the number 
in April shows the loss of confidence in the market is deeper 
than they had anticipated. He says it is the lowest level of 
sales in a month he can remember. Mr Cleland says what is most 
surprising is that agents have more listings on their books 
than ever before. Also down on March was the national median 
price, shedding $4,000 to $345,000.

FAIRVIEW NZ THE LATEST FINANCE CO TO COLLAPSE
---------------------------------------------

Another finance company has folded. Fairview New Zealand has 
been placed into receivership. The company was formerly known 
as Cymbis New Zealand. It owes $6.9 million to 797 
stockholders.

EMBATTLED IMMIGRATION BOSS RESIGNS
----------------------------------

Beleaguered Immigration Service boss Mary Anne Thompson has 
resigned. Ms Thompson cleared her desk yesterday and so far 
has not given a reason for her shock resignation. However it 
follows an investigation into her involvement in getting visas 
for relatives to come to New Zealand from Kiribati.

POOR QUALITY BUILDINGS SPRINGING UP IN AUCK
-------------------------------------------

An architect believes Auckland is developing a trend for 
building poor quality hotels and apartments. Two and a half 
thousand people have taken part in an online survey of the 
best and worst buildings in the city. The Auckland War 
Memorial Museum was ranked number one and the Newton Comfort 
Inn and Suites was at the bottom of the list. Jeremy Whelan 
managing director of Ignite Architects says most issues have 
to do with poor urban design, which looks cheap. He says 
design is down to the constraints of the client, which include 
their budget and how many rooms they want to build on the 
site. Mr Whelan says it is now time for a better quality of 
building infrastructure in Auckland.

MAORI TOLD TO CONCENTRATE ON IMPORTANT ISSUES
---------------------------------------------

A group of Maori in Wanganui is being urged to focus its 
efforts on more important issues than the spelling of the name 
of their city. Te Runanga O Tupoho has written to the New 
Zealand Geographic Board asking for an 'h to be put in 
Wanganui. The issue was last raised in 2006, when a referendum 
was carried out showing 82 percent of voters want to keep the 
current spelling. Wanganui Mayor Michael Laws says the move is 
a needlessly provocative gesture. He argues that although 
'Wanganui' is derived from a Maori word, it has gained a 
currency of its own over the past century and a half. He 
understands local Maori pronunciation renders the 'h' silent 
anyway. Mr Laws says local iwi should be trying to solve the 
high number of social problems which disproportionately affect 
Maori, such as child abuse and criminal offending. He says the 
District Council will resist any move towards Wanganui being 
spelled 'Whanganui."  
 
(My personal sympathy is with those who wish to correct the 
error. - BH)

Wednesday, 14 May 2008
~~~~~~~~~~~~~~~~~~~~~~

NZ TO FORM TRADE DEAL WITH JAPAN
--------------------------------

There has been a significant trade breakthrough for Helen 
Clark in Japan. The Prime Minister has held a meeting with her 
Japanese counterpart Yasuo Fukuda in Tokyo. The pair have 
agreed to begin talks on a Free Trade Agreement between the 
two countries. Helen Clark says it is a significant 
breakthrough as Japan is a much bigger market to New Zealand 
than China is at the moment. New Zealand and China signed an 
FTA last month.

WESTPAC AND NATIONAL CUT MORTGAGE RATES
---------------------------------------

Westpac and the National Bank have reduced their mortgage 
rates, with two-year rates falling from 9.7 to 9.4 percent. 
The drops are in line with cuts by the ASB Bank and the Bank 
of New Zealand last week. Interest.co.nz managing editor 
Bernard Hickey says the banks are passing on reductions in 
wholesale rates, as fears about a global credit crunch ease 
and prospects grow for a Reserve Bank cut in the official cash 
rate next month. Mr Hickey says the savings will not be earth-
shattering, but in the current climate of rising costs will 
come in useful. He says for people with a $170,000 mortgage, 
the savings will be around $10 a week.

FONTERRA GOING SHOPPING
-----------------------

Fonterra is expected to get permission from the Australian 
Competition and Consumer Commission to buy Australian co-
operative Dairy Farmers. The Australian company is interested 
in selling and Fonterra is one of several to express interest. 
The other parties include Japan's National Foods, Parmalat 
from Italy and Canadian dairy processor Saputo. Business 
correspondent Ian Witters says Dairy Farmers is strongly 
focused on the Australian domestic market had has around 20 
percent of both the cheese and milk markets and 30 percent of 
yoghurt. He says because Fonterra already operates across the 
Tasman, it needs permission from the ACCC. Mr Witters says if 
Fonterra does go ahead, the Dairy Farmers co-op will need to 
get 75 percent approval from its 200,000 farmer owners to 
sell. He says the deadline for bids is likely to be in a month 
and the co-op will probably sell for $1 billion.

FIRST TIMES MUMS AGED 28, ON AVERAGE
------------------------------------

The average age of a first time New Zealand mum is 28. 
Statistics New Zealand's latest figures show the birth rate 
has remained relatively stable over the past 30 years, at 
around two births per woman. That contrasts with 1961, when 
the rate peaked at 4.3 births per woman. In the March 2008 
year, women aged 30 to 34 had the highest fertility rate, of 
25 births per 1,000 women. Forty years ago women aged 20?24 
years had the highest fertility rate, of 218 per 1,000 women. 
Just over 63,000 babies were born in New Zealand in the year 
to March. Deaths exceeded births by almost 35,000. A newborn 
girl can now expected to live 81.9 years and a boy 77.9. The 
gap in life expectancy for men and women has narrowed from 6.4 
years in the 1970s to 4.1 years now.

BROADBAND TECHNICIANS PROTEST PAY RATES
---------------------------------------

Broadband technicians will today converge on Telecom's main 
offices in Auckland and Christchurch to protest their pay 
rates. The Engineering, Printing and Manufacturing union 
members work for one of the company's biggest contractors, 
Downer EDI. The workers are outraged their offered pay 
increase is less than the rate of inflation. EPMU national 
secretary Andrew Little says Telecom is using its position as 
the dominant player in the industry to push down costs, to the 
detriment of its staff. He says the company needs to think 
about who will be rolling out its plans for high-speed 
broadband across the country.

NATIONAL CHALLENGES UNION IN COURTS
-----------------------------------

The National Party goes to the High Court in Wellington today 
to challenge the Engineering Printing and Manufacturing 
Union's right to campaign in this year's election. National is 
arguing that the Electoral Commission should not have allowed 
the Labour-affiliated union to register as a third party under 
the Electoral Finance Act. Under the Act, third parties are 
allowed to spend up to $120,000 on campaign activities.

HONEST POLICYHOLDERS PAYING FOR FAKERS
--------------------------------------

There is concern that more people are willing to risk police 
prosecution by making fake insurance claims. A Hamilton woman 
has tried to claim her vehicle had been stolen, when it had 
actually been crashed by a relative. The 42-year-old has been 
found guilty of making a false statement and has been ordered 
to pay $640 in reparations. The council's corporate affairs 
manager Terry Jordan says people who make false claims believe 
it is easy money and a victimless crime but claims get paid 
out of the insurance pool so the more fraudulent expenses that 
are paid out, the more money honest policyholders have to pay. 
Mr Jordan says anyone found guilty of insurance fraud will 
have problems getting any insurance in the future. False 
insurance claims cost insurers up to $300 million a year.

(I think she got off very lightly with $640. - BH)

GREENS URGE NO SPECIAL TREATMENT FOR SMELTER
--------------------------------------------

The Greens are calling Comalco's bluff over its threat to 
shift offshore if the Government's emissions trading scheme is 
passed in its present form. Rio Tinto Alcan, the company that 
owns the Tiwai Point Aluminium Smelter, has warned of 
disastrous consequences if it is forced to compete with 
overseas rivals who are not operating under climate change 
policies. Green Party co-leader Jeanette Fitzsimons believes 
it is an empty threat and doubts the company would leave as 
she says it has spent a lot of money on the aluminium plant to 
make it one of the most efficient in the world. Ms Fitzsimons 
is also critical of the secrecy around the price the company 
pays for electricity to run the plant. She is challenging Rio 
Tinto to front up and show just how much it costs to use 15 
percent of the country's power supply. Ms Fitzsimons says Rio 
Tinto should have no special allowances under the emissions 
trading scheme. She says although the operation is an 
important part of the economy, it is not so important that it 
should get special privileges ahead of ordinary New 
Zealanders.

Thursday, 15 May 2008
~~~~~~~~~~~~~~~~~~~~~

NZ-CHINA TRADE AGREEMENT PASSES
-------------------------------

Parliament has passed the first reading of the New Zealand - 
China Free Trade Agreement. MPs are debating the laws which 
are designed to implement the trade deal, signed in Beijing 
last month. The FTA passed through tonight's vote by 102 votes 
to 17. As expected, the Greens, New Zealand First and the 
Maori Party all opposed. The trade agreement will now be heard 
by a select committee, before a final vote by Parliament later 
this year.

CREDENTIAL CHECKS IN PUBLIC SERVICE TO BE LOOKED AT
---------------------------------------------------

The State Services Minister does not believe the use of fake 
credentials is widespread in the public service. Former 
Immigration boss Mary-Anne Thompson is being investigated by 
police over the qualifications she used to secure top public 
service jobs. She claimed to have a PhD from the London School 
of Economics, but the institution says she is not one of its 
graduates. State Services Minister David Parker does not 
believe most people applying for jobs in the public service 
lie about their qualifications. He says there will be further 
investigations into whether there are appropriate checks on 
credentials. Mr Parker says it is not yet clear whether the 
allegations against Mary-Anne Thompson are even true.

(The use of fake credentials is not confined to the State 
Services. I know a so-called consultant here in Wellington 
with a web site that claims he has a doctorate. I taught him 
when he did his perfectly legitimate Masters degree. A year 
later his business cards also claimed a PhD on his list of 
qualifications. I know he didn't get it from any recognised 
institution empowered to grant higher degrees. I wonder 
whether his clients might regard themselves as being 
defrauded? - BH)

STATE HOUSES TO BE INSULATED
----------------------------

Next week's Government Budget will include the provision of 
$53 million to insulate state houses. Over the next five 
years, 21,000 houses will be renovated to make them warmer and 
more energy efficient. Green Party co-leader Jeanette 
Fitzsimons says it is an investment in the future health of 
New Zealanders. Health researcher Professor Philippa Howden-
Chapman wrote a major home heating and health study two years 
ago. She says the insulation will help improve the health of 
children and help avoid preventable illnesses. Professor 
Howden-Chapman says it is a very well targeted policy and she 
is delighted efforts will be made to improve state housing.

TAX CUTS WILL NOT BE A SILVER BULLET - CULLEN
---------------------------------------------

Finance Minister Michael Cullen says the tax cuts he will 
announce next week will not be huge. He has continued to talk 
down the tax cuts he will announce in the Budget, in a speech 
to the Canterbury Manufacturers Association today. Dr Cullen 
says the cuts will be fair but will not lead to rising 
inequality. He says his package will not involve gimmicks and 
will not be an economic silver bullet, because it is not 
possible. The Finance Minister says there will be relief for 
workers who are struggling, but the last thing the Government 
wants is an irresponsible tax cut programme. Ever since 
changing his position and agreeing to tax cuts, Dr Cullen has 
spend much of his time dampening down expectations.

RETAIL SALES SLUMPED IN MARCH
-----------------------------

There is evidence the gloomy mood in the retail sector is 
justified, in the latest official sales statistics. Retail 
sales volumes slumped 1.2 percent in March, after allowing for 
seasonal and inflation adjustments. It is the biggest drop in 
11 years, and much worse than expected, a recent Reuters poll 
predicted a fall of just 0.3 percent. The largest fall is in 
new vehicle sales, which were down almost seven percent. The 
New Zealand dollar has dropped half a cent on the back of the 
news.

FARMERS DENY GETTING FAT ON HIGH FOOD PRICES
--------------------------------------------

Farmers are attempting to deflect some of the flak over rising 
food prices, by releasing a report showing they only get back 
about one quarter of the price food is sold for. The report 
covers a number of key items, including bread, milk, butter, 
cheese, honey, lamb and beef. The New Zealand Institute for 
Economic Research has found farmers get around 16.4 percent of 
the price of bread, 31 percent of the retail value of lamp 
chops and just 5.3 percent of the price of cheese. Federated 
Farmers President Charlie Pedersen says despite what people 
think, farmers are not creaming it. In fact he says, sheep 
farmers are probably facing cash losses for the third year in 
a row. "The cause of high food prices is complex and outside 
the control of the food producer," he said. "Transport, 
processing, energy and marketing, plus normal margins are some 
of the factors which have pushed prices up." Mr Pedersen 
agrees there is a link between domestic and export prices, but 
he says this has not changed since New Zealand began exporting 
meat in 1882. He says there is a misconception that because 
dairy farmers are receiving good payouts from Fonterra, prices 
at home are being driven up. Federated Farmers also points out 
increases in the cost of producing food, such as higher 
fertiliser prices, and the cost of compliance. Charlie 
Pedersen says the report provides some quality information 
about a complex and emotional issue that has been attracting 
widespread media attention.

VOLUNTARY LIMITS ON JUNK FOOD ADS
---------------------------------

The country's main free-to-air TV channels are to voluntarily 
restrict advertising of certain foods during children's TV 
time. The new code will be phased in from July 1, and 
consolidates an agreement made between broadcasters and 
Government Ministers in 2007. A classification system has been 
developed by the Television Broadcasters' Council, 
representing Television New Zealand, TV Works and Maori 
Television. It is based on the same guidelines provided for 
school caterers. Chief Executive Brent Impey says it is an 
effort to help address the obesity issue and help the 
government's Health Eating Action Plan. He says television 
advertising is only a minor part of what should be done, but 
the industry is happy to do its bit. Broadcasting Minister 
Trevor Mallard and Associate Health Minister Damien O'Connor 
have welcomed the guidelines as a step forward in tackling New 
Zealand's obesity problems.

BICYCLE FEE DROPPED FOR RAIL USERS
----------------------------------

Wellington cyclists are celebrating a move by Greater 
Wellington, scrapping fares to take their bikes on trains. The 
regional council's transport committee has agreed to remove 
the $4 charge from July, in order to encourage more people to 
use public transport. Cycle advocate Patrick Morgan says 
cyclists have been campaigning for the move for at least six 
months, and it will mean a more economical commute. He says 
already many people ride their bike to a railway station and 
lock it up there, but it is so much easier to take the bike 
with them on the train. Patrick Morgan says the practice is 
common is Europe and he is pleased Wellington is coming round 
to more sustainable transport options. He says as the price of 
petrol goes ever higher, more people are looking for 
alternatives to driving, and this is a common sense decision.

SALARIES UP 5.8% IN YEAR TO MARCH
---------------------------------

Researchers believe employers are finally realising the value 
of their workforce, with a Mercer's Market Issues Survey 
finding staff salaries rose 5.8 percent in the 12 months to 
March. The figure compares with an increase of 5.2 percent for 
people in management positions. Researcher Martin Turner feels 
employers are getting the message on how to keep their 
workforce loyal. He says staff are staying put in places where 
they are receiving good pay increases. Mr Turner says despite 
a slowing economy, the reality is there is still a very tight 
labour market for the skill sets many businesses are chasing.

JAPAN FTA GOAL
--------------

New Zealand is to begin free trade talks with Japan. The plan 
was agreed last night, when Helen Clark met Japan's Prime 
Minister Yasuo Fukuda in Tokyo. The pair agreed a study should 
begin into a Free Trade Agreement between the two countries. 
Miss Clark says New Zealand's export interests and Japan's 
concern about food security have come together, making the 
development possible. She says it is a significant 
breakthrough to have talks getting started after many years of 
trying. The PM cites the beef industry as an area which could 
potentially benefit, with exporters currently facing a 38% 
tariff on shipments into Japan. Helen Clarks says strong 
protectionist interests in Japanese agriculture have stood in 
the way of such talks until now. However, at a time of world 
food shortages, Japan is becoming increasingly concerned about 
its ability to provide enough for its people. This has 
provided an opportunity for New Zealand to be heard, she says. 
A full agreement could still be sometime off, considering it 
took five years from beginning to end for the deal with China 
to be completed. The upside is that an agreement with Japan 
looks likely to be more beneficial for New Zealand. Helen 
Clark says while the cost benefits are still being worked out 
there is strong potential, as Japan is a much bigger market 
for our exporters than China is at the moment; worth close to 
$3.5 billion in good a year, with trade to China less than $2 
billion. Meanwhile there are signs the Japanese are beginning 
to back down on plans to continue whaling in the Southern 
Ocean. The Prime Minister broached the touchy subject in last 
night's meeting. She says she made New Zealand's position on 
the conservation of whales very clear, and warned Japan the 
whaling programme tends to undermine its reputation on the 
environment.

SOUTH ISLAND POTENTIAL FOR DAIRYING
-----------------------------------

Dairy Farmers of New Zealand believes growth in the sector is 
in line with current trends overseas. Statistics New Zealand 
figures show the national dairy herd numbered 5.3 million last 
year, which is up two percent from 2002. Dairy Farmers 
Chairman Frank Brenmuhl says new farmers are more likely to 
start with no experience in the dairy sector, than they are on 
sheep and beef farms. He says dairying is a reasonably secure 
option in terms of demand for product, and the trend will 
continue for some time until the beef and sheep sector lifts, 
which he hopes will happen next year. Mr Brenmuhl says the 
South Island is becoming a more attractive investment option 
for dairy farmers than the North Island, with about 38 
thousand hectares of North Island land being put aside for 
urban increases each year. Statistics New Zealand figures show 
dairy milking and heifer numbers reached 4.2 million last 
year, up 8 percent from 2002. North Island numbers remained 
around 2.9 million, while there was a 31 percent increase in 
the South Island to 1.3 million.

(That should provoke a substantial knee-jerk from those who 
equate dairy farming with the burning of coal. - BH)

EXPERIENCE SHORTAGE IN PRIMARY SCHOOLS
--------------------------------------

There is concern primary schools are still having staff 
recruitment and retention difficulties, despite a new survey 
showing otherwise. Figures from the Ministry of Education 
reveal 99 percent of schools nationwide are fully staffed. 
However, New Zealand Educational Institute President Frances 
Nelson says there is a serious lack of experienced teachers, 
and principals are having to work very hard to fill vacancies. 
She says an increasing number of schools are employing 
Beginning Teachers - those at the very start of their careers 
- to cover positions usually held by those with more years in 
the classroom. Ms Nelson says that causes difficulties, as new 
teachers need mentoring from experienced teachers for two 
years before they can gain their full registration. She says 
the Ministry must address the urgent need for more experienced 
teachers. Ms Nelson says there are a lot of opportunities for 
teachers outside the profession, and they often leave because 
of the stressful workload.

Friday, 16 May 2008
~~~~~~~~~~~~~~~~~~~

KIWBANK DENIES LOSS-LEADING
---------------------------

Kiwibank has dismissed the suggestion its new 8.99 percent 
mortgage rate is a loss leader. The state-owned bank ambushed 
the market this morning by dropping its two-year fixed rate 
point-three of a percent. It is the first time the two-year 
rate has been under nine percent in six months. Chief 
executive Sam Knowles says the lower rate is viable, and the 
bank does not indulge in loss-leading. He says they are a 
commercial organisation and can make a reasonable profit at 
the rate. Mr Knowles expects the rate will go even lower 
before the end of the year, but will not speculate on when 
that might be.

AIR NZ OPENING AIRLINE SCHOOL
-----------------------------

Air New Zealand is setting up a school for pilots, cabin crew, 
engineers and airline management. The airline's chief pilot 
Captain David Morgan says the Aviation Academy is being set up 
to ensure a steady flow of local talent, in what is a highly 
competitive industry. Air New Zealand expects to put around 
200-300 pilots and engineers through the academy every year. 
 
(I wonder how they will retain the graduates of their school? 
- BH)

HOUSING EQUITY SCHEME ANNOUNCED
-------------------------------

The Government has just released details of its proposed 
housing shared equity scheme. A pilot program begins in July, 
in which the Government is to invest $35 million. It is 
restricted to regions with the highest house prices, and will 
only be available in Auckland, Wellington, Nelson, 
Christchurch, and Queenstown. The scheme will see the 
Government provide interest free loans covering between 5 and 
30 percent of the value of a property. House price caps will 
be set at between $240,000 and $385,000, depending on regions. 
The shared equity scheme will be limited to households with 
annual incomes of $85,000 or less. Housing Minister Maryan 
Street says the shared equity scheme will be piloted for two 
years, and provided to between 500 and 700 applicants.

SECURITY CAMERAS TO FIGHT VANDALISM
-----------------------------------

Greater Wellington is investigating whether to install 
security cameras in the region's parks, after a spate of 
vandalism caused huge amounts of damage. Greater Wellington's 
Erik VanderSpek says staff are fed up with finding smashed 
toilets, broken gates and fires lit in parks. He says the 
council has already erected barriers and employed extra staff 
in an attempt to stop the damage. He says the measures are 
having a limited effect, as vandals have started cutting their 
way through gates. Erik VanderSpek hopes security cameras will 
be the answer to discovering who is causing the damage.

(Mixed feelings. CCTV surveillance serves a useful purpose in 
areas of high risk, and as a former volunteer who watched at 
the consoles in the police station, I saw some interesting 
things and helped to direct sworn officers to some hiding bad 
guys. However, the more cameras there are, the more video feed 
there is to watch and interpret. As a volunteer I felt that I 
had a full load with 12 screens to monitor. My real reason for 
giving up was that there were never enough sworn staff 
available to attend to episodes observed. Those on duty were 
always busy with serious matters elsewhere. No point in 
watching unless you also have the capacity to initiate 
effective responses. - BH)

TIGHT BUDGETS RESTRICT CAR SPENDING
-----------------------------------

The weak economy is being blamed for a $35 million drop in the 
value of car sales in the March quarter - a decline of 4.4 
percent. Latest figures also show a drop in business for 
industries that maintain cars, such as electrical services, 
smash repairs and tyre retailers. Automobile Association 
spokeswoman Stella Stocks says many people are tightening 
their budgets to make ends meet. She says people would rather 
spend their money on feeding their family, than upgrading 
their car. Ms Stocks adds many New Zealanders with two 
vehicles are saving money by storing or selling one of them. 
But she urges motorists to keep their vehicles up to scratch 
mechanically. She says one of the problems with the repair 
industry is that people do not feel a difference when they 
drive their vehicle away. Ms Stocks says people should not use 
their vehicles if they are not up to a road worthy standard.

CLARK TALKS TRADE WITH KOREA
----------------------------

Helen Clark will be talking free trade with the South Korean 
president in Seoul today. She will be the first world leader 
to meet with the new President since his inauguration. Miss 
Clark will sit down with Lee Myung-bak, after meeting local 
business leaders. Just a day after persuading the Japanese to 
begin free trade talks with New Zealand, the Prime Minister is 
hoping to achieve the same with the Koreans. Helen Clark says 
a study on the potential of an agreement with Korea has been 
concluded, meaning it is now only a matter of when a deal is 
done, and not if.

TIME RUNNING OUT FOR LOTTERY WINNER
-----------------------------------

A significant lottery prize remains unclaimed, and will expire 
in just over a month. The $500,000 was won on a ticket bought 
at Countdown in Kaiapoi on June 30 last year. The owner still 
has not fronted up. Lotto CEO Todd McLeay says up to three 
percent of prizes go unclaimed every year and this First 
Division payout could well be one of them. He is encouraging 
anyone who may have bought a ticket in Kaiapoi around that 
date to check everywhere for it.

GROUND LAID FOR NO SURPRISES BUDGET
-----------------------------------

The Finance Minister is being praised for his cautious 
approach to tax cuts, ahead of next week's Budget. Michael 
Cullen says the package of cuts will not involve a lot of 
gimmicks, and will not be an economic silver bullet. 
PriceWaterhouse Coopers Chairman John Shewan says there is 
nothing wrong with being cautious during the current economic 
period. He says Dr Cullen should be applauded for hinting that 
he will not play around with GST on petrol or food. Mr Shewan 
says Michael Cullen's speech in Christchurch yesterday was 
clearly designed to dampen tax cut expectations. He says Dr 
Cullen faces an enormous juggling act, with so many people 
after a hand-out, but the ground work has been laid for a 'no 
surprises' speech next week. He says the speech was open, 
frank, cautious, and designed to dampen expectations. MPs look 
set to have a late night after the Budget speech, with Dr 
Cullen's tax legislation to be passed under urgency. It will 
require enabling legislation and the signals are it will be 
debated immediately after the Budget is presented. Acting 
leader of the House Darren Hughes says matters will be 
formalised when Parliament's Business Committee meets next 
Tuesday. However, he is clearly indicating the House will sit 
under urgency to pass the tax package.



Monday, 19 May 2008
~~~~~~~~~~~~~~~~~~~

323 JOBS TO GO AT SEALORD IN NELSON
-----------------------------------

More than 300 jobs at Sealord's Greenshell Mussel Factory in 
Nelson look set to go. The company is proposing to stop 
production of its half shell mussel operation, and focus only 
on producing mussels without shells. Under the proposal, the 
number of staff would be reduced from 380 to 57. Sealord Chief 
Executive Graham Stuart says the operation is neither 
competitive nor sustainable, and it has been making a loss for 
some time.

(Déjà vu, again - BH)

AUDITOR GENERAL INVESTIGATES IMMIGRATION DEPT.
----------------------------------------------

The Auditor General has been called in to investigate the 
Immigration Service. The Prime Minister has announced a full 
and independent inquiry into the Department, following a 
series of serious allegations against staff in its Pacific 
Division and the Department's former boss Mary-Anne Thompson. 
Helen Clark says more is needed beyond ongoing inquiries by 
Police, the State Services Commission and the Department of 
Labour. She says the Government feels the investigation is 
being constantly blindsided by developments. Ms Clark says 
someone who is fully independent has to look at the matters. 
The Prime Minister says she was approached on the issue by 
Immigration Minister Clayton Cosgrove yesterday, who said it 
was time for an independent inquiry. She says they expect the 
inquiry to cover the actions of senior management at the 
Immigration Service and the Department of Labour, as well as 
interactions with the State Services Commission.

TAX CUTS WILL TAKE PRESSURE OFF WAGES
-------------------------------------

The business community is keen to hear what the two main 
political parties will be offering in the way of tax cuts this 
year. National Party leader John Key is hinting at cuts of at 
least $50 a week but Finance Minister Michael Cullen is taking 
a more cautious approach and will not put a figure on Labour's 
offering. Roger Kerr, executive director of the Business 
Roundtable, says tax cuts can and must take place but he does 
not accept the argument that cuts will fuel inflation and 
mortgage interest rates in the long term. Mr Kerr says tax 
cuts may have a temporary impact but will have benefits such 
as taking pressure off wages. He believes the inflation 
argument is grossly over-stated.

LAID-BACK KIWIS A DRAWCARD
--------------------------

Immigrants are attracted to New Zealand because of its laid-
back lifestyle. Statistics New Zealand has released the 
results from its Longitudinal Immigration Survey. Forty-four 
percent of immigrants interviewed said the country's relaxed 
lifestyle was a major reason for their decision to settle. The 
clean, green environment was in second place with 40 percent 
saying it was a key pulling factor. The third most popular 
reason was the desire to provide a better future for their 
children. Survey spokeswoman Andrea Blackburn says six months 
after gaining permanent residence, more than 90 percent of 
immigrants were satisfied with life in New Zealand and plan to 
stay for more than three years.

PM DISMISSES POLL
-----------------

The Prime Minister is dismissing the latest poll which gives 
National a 27 point lead over Labour and a 13-seat majority. 
The Fairfax-Nielson poll also puts John Key ahead of Helen 
Clark as preferred Prime Minister. Miss Clark says the poll is 
out of line with a separate one held over the period. She says 
there will come a time when New Zealanders start to compare 
what is on offer and she says Labour will be very competitive. 
 
(Sorry Prime Minister, unless you have already given up and 
don't intend to seriously contest the election, you can't 
ignore this. - BH)

SUGAR NOT RESPONSIBLE FOR WEIGHT GAIN
-------------------------------------

A new Otago University study has found that sugar is not 
responsible for obesity or weight gain. The research, headed 
by Dr Winsome Parnell, finds that adults and children who 
consumed high quantities of sugar are less likely to be 
overweight than those who consume small quantities of sugar. 
Dr Parnell says high fat diets rather than sugar makes people 
obese as fat is more energy-dense than sugar. She says it is 
an important study because it is the only one of its kind 
using all New Zealand data.

DOCTORS WELCOME FUNDING BOOST
-----------------------------

GPs say the Government's $160 million boost for the health 
system will benefit their patients as well as those going to 
hospital. An extra 5,000 patients will receive elective 
surgery each year over the next four years. Jonathan Fox, 
president of the Royal College of GPs, says some tests can 
only be ordered by a hospital doctor, so GPs usually have to 
write referrals for their patients. But he says doctors will 
now be able to order the tests directly, which means patients 
will get a faster service and will ease the pressure on 
hospital outpatient clinics. Dr Fox says he is delighted some 
of the needs of the health system are being addressed. Of the 
$160 million allocated over four years for elective services, 
$30 million per year will fund surgery or treatment for 5,000 
patients, $5 million a year will be spent on first specialist 
assessments, outpatient treatment, some minor surgery carried 
out by GPs and tests. One-off funding of $8 million will be 
allocated to cardiac, spinal and other high need areas. $2 
million will go towards cataract surgery.

WARMER STATE HOMES WELCOMED
---------------------------

State house tenants say the sooner the Government starts 
insulating their homes, the better. This week's Budget will 
include $53 million to make all state houses warmer and dryer 
within five years. Peter Petterson has been in his state house 
in the Lower Hutt suburb of Taita for 30 years and says the 
upgrade is much needed. "They are cold, you've got to use 
heaters. Some of the older people stick on some more clothes 
and blankets." Mr Petterson says it is a shame the upgrade is 
happening after his children have grown up and moved out, but 
at least his grandchildren will benefit when they come to 
stay.

Tuesday, 20 May 2008
~~~~~~~~~~~~~~~~~~~~

GOVT BOOST TO SHIPPING
----------------------

The Government is pumping $36 million into boosting coastal 
shipping. The funding over the next four years aims to double 
the amount of total freight movement by ship by 2040. Under 
the Sea Change programme, the Government wants at least 30 
percent of freight transported around New Zealand by ship. 
That would see a doubling of the current level of 15 percent. 
 
(If it is so economical, why does it need taxpayer support? - 
BH)

PACIFIC ISLANDERS UNDERCLASS
----------------------------

A community leader says a recent report slamming Pacific 
Island immigrants is presented out of context. A study by 
Massey University economist Greg Clydesdale claims Pacific 
Islanders' crime rates, poor education and low employment are 
creating an underclass and a drain on the economy. Reverend 
Mua Strickson-Pua says the report states Pasifika people are 
over-represented in the crime statistics and accounted for 
eight per cent of convictions in 2006. He says that is only 
about 9000 out of more than 112,000 people. He says those who 
make up the other 92 per cent is not mentioned. 
 
(That's not a spelling mistake. Those outside the Pacific may 
not be familiar with "Pasifika" as the politically correct 
adjective used to refer to anything to do with the islands and 
people of the South Pacific. - BH)

NZ FIRST COY ABOUT ETS AND OVERSPEND
------------------------------------

New Zealand First is playing coy on the Government's emissions 
trading scheme. The party's MPs discussed the issue in caucus 
today and whether or not they will support the legislation. 
Leader Winston Peters says they have ongoing issues to raise 
with the Government which they will do over the next few 
weeks. He says there is probably a way through, that will 
satisfy most reasonable people Meanwhile instead of paying 
back its $158 thousand overspend at the last election, the 
party has selected the charities which will benefit from the 
money. Leader Winston Peters will not reveal their identity at 
the moment. He says the beneficiaries will become known when 
he thinks it is appropriate. He says that will happen when the 
charities cannot be pilloried for being organisations that 
need help. 
 
(I would love to see them prosecuted. Having misappropriated 
money, the only correct course of action is to return it to 
those from whom it was taken. Any money they give to charity 
is their own business. The money is still owed to the taxpayer 
in my opinion. - BH)

PSA LEAPS TO DEFENCE OF IMMIGRATION
-----------------------------------

The Public Service Association says it is doing all it can to 
restore confidence in the sector. The union is backing the 
Government's decision to have the Auditor-General investigate 
the Immigration Service. It follows the resignation of its 
head Mary Anne Thompson. PSA national secretary Brenda Pilott 
says the scandal has prompted it to launch an Ethics 
Committee. The group will advise the Government, State 
Services Department and MPs on what workers are seeing and 
hearing. She hopes it will help make the sector more 
transparent.

GREENS CALL FOR HIGHER BENEFITS
-------------------------------

The Greens are urging a rise in benefits to ease the pressure 
on the hundreds of South Island workers who are expected to 
lose their jobs. Sealord is planning to cut 323 jobs in 
Nelson, while PPCS plans to close its Burnside meat plant near 
Dunedin, with the loss of 138 jobs. Green MP Sue Bradford says 
the moves will force whole families into poverty, and they 
will be left on inadequate benefits with reduced prospects of 
easily finding work. She says the Government needs to lift the 
benefit levels to support those who will be losing their jobs, 
and cannot immediately find new jobs in the current economic 
slowdown.

CONSORTIUM WANTS TO RUN OVERLANDER
----------------------------------

A private consortium wants to take over the passenger rail 
service between Auckland and Wellington. The Manning Group 
proposes replacing the Overlander from 2011 using self-powered 
trains, running on both electric and diesel engines. The 
operation is expected to cost $30 million to get off the 
ground. Thomas Manning, governing director, says increasing 
petrol prices will make rail an extremely attractive option 
and will also impact on the number of tourists visiting, 
creating a need for unique experiences. The consortium says it 
would operate the long-distance service on a licensed 
operator, joint-venture or public-private partnership basis. 
Mr Manning says the group first proposed a new train in late 
2006 when the Overlander was slated for closure but with the 
Government's recent acquisition of Toll Holdings and Finance 
Minister Michael Cullen's comments that a variety of 
operational models will be considered the group's interest has 
been revived. Mr Manning says rail patrons have been very 
poorly served in recent decades as passenger services have 
been progressively run-down and mostly eliminated by 
successive owners who favoured lining their own pockets with 
dividends in preference to investing in rolling stock and 
maintenance. The new train would initially be called Green 
Arrow its final name will be chosen in a public competition. 
The consortium wants to hold official talks to advance the 
plan.

PETROL PRICES RISE AGAIN
------------------------

Another round of fuel price rises is underway. Pump prices are 
up three cents a litre for both petrol and diesel. It takes 
the price for 95 octane in the main centres to 201.9c a litre. 
The price of 91 octane is around 196.9c a litre and diesel is 
around 167.9 a litre. The rise is the sixth in as many weeks. 
The price of crude oil has risen 76 cents in overnight trading 
to $US127 a barrel.

(And since then it has gone up again, led as usual by BP, to 
200.9c for 91 octane. We are told we are still the fifth 
cheapest in the OECD - BH)

MORE PEOPLE EXPECT FALLING HOUSE PRICES
---------------------------------------

A greater number of people now expect house prices to fall 
further. The latest ASB Housing Confidence Survey shows 
optimism in the housing sector is continuing to decline and 
there has been a dramatic increase in the number of people 
expecting house prices to drop. Chief economist Nick Tuffley 
says of the 600 people questioned for the quarterly survey, a 
net 34 percent of respondents now expect house prices to fall 
and a net 54 percent of respondents expect higher interest 
rates in the next 12 months, up from 46 percent in the 
previous quarter. Mr Tuffley says in contrast to that 
expectation, some rates have actually started to fall. Mr 
Tuffley says in spite of people being seemingly well aware of 
weaker selling conditions at the moment, the general opinion 
is that now is not a good time to buy a house, with a net nine 
percent saying it is a bad time. He says the balance of forces 
has swung in the buyers? favour, but not far enough to suggest 
a surge in buyer demand is imminent. He says people will not 
become more confident about buying until interest rates drop 
further. The survey finds that the impact of wider influences 
in addition to interest rates, particularly migration and 
income, suggest the New Zealand housing market could repeat 
the experience of 1998-2001, when the average house price 
trend was flat for several years. Mr Tuffley says there also 
appears to be little prospect of arresting the growing outflow 
of people to Australia in the next 12 months, which is another 
factor hindering a potential stimulant of the market.

TAX CUTS FUNDING QUESTIONED
---------------------------

A budgeting expert says tax cuts of $50 a week would go a long 
way for struggling families but they should look at the bigger 
picture. National leader John Key has hinted $50 might be the 
average level of the tax reduction on offer from his party but 
Finance Minister Michael Cullen claims that amount is 
unsustainable. Raewyn Fox, secretary of the Federation of 
Family Budgeting Services, says tax cuts are a big issue for 
many families and even a small amount will make a difference. 
However, she says people will be wondering where the money for 
tax cuts will come from and must think about what might be 
sacrificed in order to fund them.

Wednesday, 21 May 2008
~~~~~~~~~~~~~~~~~~~~~~

HIGH SCHOOLS SAYS FUNDING BOOST ISN'T ENOUGH
--------------------------------------------

High schools are unimpressed with the a funding boost coming 
in the Budget. Schools are getting an extra $171 million for 
operational funding over the next four years, their biggest 
increase in seven years. Just over $65 million of that will be 
dedicated to information technology. Secondary Principals' 
Council chairman Arthur Graves says they are very disappointed 
as they were hoping for something more substantial. Mr Graves 
says it does not go far enough to cover the rising costs and 
expectations for schools. He says it confirms their worst 
fears and leaves the sectors almost 40 percent underfunded.

ELECTORAL COMMISSION TO RECONSIDER EPMU STATUS
----------------------------------------------

It is now back to the Electoral Commission for the 
Engineering, Printing and Manufacturing Union in its battle to 
be a registered third party under the Electoral Finance Act. 
The High Court has found in favour of the National Party, 
which argued the EPMU could be deemed to be a natural person 
involved in the administration of the Labour Party. Under the 
EFA, that would mean the union could not be a registered third 
party for this year's election. The union argued the Electoral 
Commission acted contrary to law and exceeded its legal powers 
in considering the original challenge made against the EPMU. 
However Justice Mackenzie ha ruled it is not appropriate for 
the court to direct the Electoral Commission in the 
performance of its functions and has declined to make a 
declaration on the EPMU's counterclaim. The matter now goes 
back to the Electoral Commission which will have to reconsider 
the EPMU's status.

FISHER AND PAYKEL HEALTHCARE HAS 30% PROFIT DROP
------------------------------------------------

Fisher and Paykel Healthcare has posted a 30 percent fall in 
profit. Its after-tax profit of $35 million is down from $50 
million last year. It says New Zealand's high dollar has 
eroded growth in sales. Fisher and Paykel Healthcare has 
announced a final dividend of 7c.

OVERSEAS VOTERS SIGN UP IN DROVES
---------------------------------

Nearly 48,000 New Zealanders living overseas are enrolled to 
vote in the this year's election, a 35 percent increase on 
2005. Electoral Enrolment Centre national manager Murray Wicks 
says it is partly due to more New Zealanders moving overseas 
and travelling. But he says it is also because people can now 
easily access enrolment information online and download their 
voting papers.

PETERS REVEALS PARTY'S TAX PLAN
-------------------------------

New Zealand First leader Winston Peters has unveiled his 
party's tax cut plan. He has told Grey Power's AGM in the 
Auckland suburb of Mt Albert that he wants the first $5,200 of 
earnings to be tax free and for goods and services tax to be 
cut from the current 12.5 percent to 10 percent over three 
years. He said the tax free threshold would give married 
couples on superannuation an extra $21 a week and those on 
other rates between $12 and $14. He says reducing GST would 
lower costs and give everyone more purchasing power. Mr Peters 
promised to raise superannuation from 66 percent of the net 
average wage for a married couple to 68 percent. He told the 
group of over 50s that New Zealand led the world economically 
and socially when their generation was in charge and New 
Zealand First believes that the country has a duty to 
acknowledge that through adequate superannuation, healthcare 
and social services. "We see something seriously wrong in the 
western world in the way seniors are viewed with indulgence or 
contemptuous sympathy." Mr Peters also hailed the success of 
the SuperGold Card which he said now has nearly 4,000 business 
outlets taking part to give superannuitants greater buying 
power. "Budget 2008 will contain $18 million funding which 
will ensure that SuperGold Card holders will travel free on 
public transport during off peak times during the day." He 
says New Zealand first has also secured a significant funding 
boost of $4.5 million for hearing aids.
(Winston seems to have inherited "Rob's Mob" - the usually 
blue-rinsed brigade of people who didn't look beyond their own 
pensions. Despite paying a sub to Grey Power, I wouldn't dream 
of supporting Winston. - BH)

SCHOOL OPERATIONAL FUNDING INCREASES
------------------------------------

The nation's schools are being given another $171 million over 
the next four years for day to day running costs. The funding 
has been announced today by Education Minister Chris Carter, 
ahead of the release of the Budget tomorrow. The plan 
represents a five percent increase in school funding, the 
largest since 2001. Of the $170 million, $63 million is 
earmarked specially for information technology. Mr Carter says 
the education system needs to prepare young people for a 
rapidly changing world, particularly in the area of IT. Mr 
Carter says the total Government investment in operational 
funding for schools over the next four years is $4.7 billion. 
He says one of the country's biggest secondary schools, 
Rangitoto College on Auckland's North Shore, has seen its 
operational budget double to $4 million since Labour came to 
power.

PSA FEARS JOB CUTS
------------------

Public servants are worried that the Government's Budget 
announcement tomorrow, will deliver tax cuts that result in 
job losses in their sector. Brenda Pilott, national secretary 
of the Public Service Association, says New Zealand has strong 
public services benefiting many communities but she believes 
that could be jeopardised because tax cuts can only be funded 
through borrowing or cutting public services. She says the 
Budget must ensure that public services retain their resources 
to meet the social challenges facing the country.

TRUCKERS SAY SHIPPING FUNDING UNFAIR
------------------------------------

The organisation representing the trucking industry says 
taking money from road users and throwing it into coastal 
shipping is unacceptable. The Government has announced it will 
put $36 million over the next four years into coastal 
shipping, as part of its Sea Change strategy. The Shipping 
Federation says the funding will get a number of good projects 
off the ground including workforce and training development 
and improving infrastructure. But Simon Tapper, director of 
the Road Transport Forum, says the funding was paid in good 
faith by road users and is urgently needed to improve roads. 
He says it is unfair to expect family-owned trucking companies 
to subsidise a competing mode of transport through road user 
charges when it could end up taking their business away. Mr 
Tapper believes the shipping funding means roading projects 
will be put on the back burner because there will be less 
money available to fund them.

(Not often I agree with the trucking industry. - BH)

AIRLINES PULL CONTRACTS WITH AIR NZ
-----------------------------------

Three international airlines have pulled contracts with Air 
New Zealand's engineering facility because of industrial 
action. One and a half thousand Air New Zealand engineers have 
been taking low level action since early this month leading to 
Hawaiian Airlines, Virgin Blue and Pacific Blue cancelling 
heavy maintenance checks. The airlines were concerned about 
possible delays. Hawaiian airlines is moving the remaining two 
maintenance checks of aircraft back to the United States which 
Air New Zealand says has serious implications for the future 
of the five-year contract, still in its first year. Chris 
Nassenstein, general manager technical operations, says 
forcing Hawaiian to build a relationship with another supplier 
at this time puts the future of the contract at risk. The 
Engineering, Printing and Manufacturing Union and the Aviation 
and Marine Engineers Association are steadily stepping up 
their industrial action. They have already imposed an overtime 
ban and refuse to tow aircraft in and out of the hangar. They 
want a pay increase of 5.8 percent while the company is 
offering 3.92 percent over a year.

(Bang! Ow! My foot! How did that hole get there? - BH)

Thursday, 22 May 2008
~~~~~~~~~~~~~~~~~~~~~

GREATER PROTECTION FOR INVESTORS
--------------------------------

Investors will get greater protection under new initiatives 
announced in the Budget. The Government is spending $9 million 
over the next four years to put in place new laws to improve 
the supervision of financial advisers and institutions. 
Additional operating costs of $5.1 million and capital costs 
of $1.4 million will be paid for by the industry. The funding 
will allow the Securities Commission to register and license 
financial advisors and for dispute resolution schemes to be 
set up. Commerce Minister Lianne Dalziel says the recent 
volatility in the financial sector highlights the importance 
of the new regulatory regime. A separate fund of $500,000 for 
2008/09 will add to the list of government initiatives that 
support capital market development. It will identify barriers 
to economic growth and how to overcome them.

ACCESS TO STUDENT ALLOWANCES WIDENED
------------------------------------

Thousands of students will have wider access to student 
allowances in a $155 million Budget measure. The Government is 
increasing the parental income threshold for full allowances 
by ten percent from the start of 2009, meaning around 12,000 
more students will qualify. Student unions have in the past 
stated that many needy students miss out on allowances because 
their parents' income is too high, despite the fact many 
tertiary students are not supported by their parents. The 
Government has announced there will also no longer be parental 
income testing for students aged over 24. The student loan 
living cost component will be raised to match inflation, from 
$150 per week to $155. Another new measure is the expansion of 
the Bonded Merit Scholarship Scheme from 1,000 students to 
1,500 students. The scholarships are awarded to high-achieving 
undergraduates. Tertiary Education Minister Pete Hodgson says 
the changes give effect to the Government's confidence and 
supply agreement with United Future, to improve access to 
student allowances. He says the lot of the individual student 
continues to improve, which is good news for society's 
competitiveness over time.

(The student's eligibility should not be connected to the 
income of their parents regardless of their age. That 
connection should have been abolished. - BH)

FASTER BROADBAND PROMISED
-------------------------

Broadband is being promised a rev-up, with the Government 
pledging more than $500 million over five years to accelerate 
internet speeds. It says it will target high speed open access 
urban fibre networks, as well as improving rural connectivity 
and international links. Connectivity in the health, education 
and Government sectors will also be upgraded. Communications 
and information Technology Minister David Cunliffe says the 
plan aims to give all consumers faster and cheaper broadband. 
He says it will bring substantial economic gains that will 
transform New Zealand's economy and society.

(Yeah, yeah! A herd of pigs just flew past my window. - BH)

MORE MONEY FOR PENSIONERS
-------------------------

Older people will get an increase to their superannuitant 
payments, free off-peak travel and an increase in the subsidy 
for hearing aids. A married couple will receive $45.88 extra 
per fortnight and $23.84 for a single superannuitant living 
alone. The increase is in addition to the annual adjustments 
made to reflect increases to living costs. There will be 
further increases to the rates on April 1, 2010 and 2011. The 
superannuation rate remains at 66 percent of the net average 
wage. SuperGold Card holders will get free off-peak travel on 
public transport and $18 million will be allocated over four 
years to fund an increase in the subsidy for hearing aids. The 
subsidy will rise from $198 to $500 from October 1 for 
SuperGold Card holders aged 65 and over. There will also be a 
$24.6 million boost to help 7,500 caregivers looking after 
children. The Government says it is a recognition of the 
valuable role that carers play, particularly grandparents.

TAX CUTS COSTING $10.6 BILLION
------------------------------

The Government is spending $10.6 billion on its tax cut 
programme. Over the next four years, the lowest personal tax 
rate will be reduced to 12.5 percent; the 21 percent threshold 
will be increased by $10,500 to $20,000; the 33 percent 
threshold will rise by $4,500 to $42,500 and the 39 percent 
threshold will rise by $20,000 to $80,000. People currently on 
$20,000 a year will receive an extra $12 a week from October; 
those on $40,000-$60,000 will get an extra $16 a week; and 
taxpayers earning more than $70,000 will get $28 in their 
weekly pay packets. The Government says that from April 2011, 
nearly 300,000 taxpayers will no longer face the highest tax 
rate of 39 percent. The family tax credit will be boosted and 
there will be an increase to the Working for Families tax 
credit threshold from October 1, worth $14 per week for a 
family with two young children on the average wage. A further 
expected increase to the family tax credit and income 
threshold will occur from April 1, 2011, worth an additional 
$15 per week. The programme will see a couple on the current 
average household income of $72,000 (split two thirds/one 
third) with two children aged between 11 and eight better off 
by $43 a week from October 1 ($2,223 a year) rising to $85 a 
week ($4,397) a year from April 2011. Finance Minister Michael 
Cullen says the tax programme should provide some relief from 
the current increases in the cost of living although he says 
for many families, they will not compensate for them totally.

PETROL - 91 PASSES $2 A LITRE
-----------------------------

All petrol has now crept past the two dollar a litre mark. The 
cost of 91 at some BP stations is now 2.00.9 cents a litre, 
while 96 now costs 2.05.9 cents a litre. Diesel also continues 
its climb, now standing at 1.73c.

DAIRY PRICES UNDER SCRUTINY
---------------------------

The Commerce Commission wants to know why dairy products cost 
so much. The commission is casting an informal eye over the 
issue after huge leaps in the price of milk, butter and cheese 
in the last year. It was sparked by a complaint laid by former 
MP Wyatt Creech, who is now chairman of the Kaimai Cheese 
Company. He wants to know why the price of milk has rocketed 
while farmers have only received a rise of about 25c a litre. 
The consumers price index shows that the price of a one 
kilogram block of mild cheddar has risen 65.8 percent since 
April last year and an investigation by the New Zealand Herald 
found cheese prices charged in supermarkets have increased 
more quickly than the price paid to farmers. The international 
dairy commodity boom has been partly driven by reduced supply, 
the drought in Australia, a shortage of feed as farmers shift 
to producing biofuels and demand from emerging markets.

ECONOMY TAKES A BREATHER
------------------------

The country is running on empty according to the National 
Bank's latest quarterly regional trends survey which has found 
that economic activity in the first three months of the year 
fell in nine of the country's 14 regions. Fewer houses were 
sold, business and consumer confidence fell and retail sales, 
employment, new car registrations and building consent were 
all down. The biggest drop in economic activity was in 
Taranaki which followed an equally strong rise in the 
preceding three months. At the other extreme, the West Coast 
recorded the strongest rise across the regions for the 
quarter. On an interisland basis, the North Island recorded a 
0.7 percent fall, while the South Island dropped 0.3 percent. 
Waikato was the only northern region not to report a drop in 
activity. The only blot on the southern region's economic 
copybook was a 0.8 percent fall in activity in Canterbury. 
Annual economic growth slowed in all but two regions in the 
year to March. At 3.4 percent, Southland continues to lead the 
nation, with Taranaki moving up to second ranking. At the 
other end of the table, Manawatu-Wanganui trails the field, 
with annual economic growth at a seven year low of 0.4 
percent. The nationwide measure of economic growth slowed to 
1.9 percent in the 12 months to March. The inter-island split 
was similar with 1.9 percent annual economic growth measured 
in the North Island and 2.0 percent in the South Island.

HOUSING MARKET SLOWDOWN "NOT REALISTIC"
---------------------------------------

A real estate company believes home owners are holding back 
from trying to sell their property due to the current market 
sentiment. Harcourts has recorded a 40 percent decline in 
property sales last month from the same period in 2007. CEO 
Bryan Thomson says while the number of homes for sale is still 
high compared with last year, the number of new listings is 
lower than expected. He says there has been a number of 
increases in interest rates and a slight drop in consumer 
confidence leading to the market slipping off last year's 
highs. Mr Thomson believes that many potential sellers feel 
that the Reserve Bank does not need to take such drastic 
measures to deal with inflation concerns, leading to people 
holding back from making decisions that they want to, and need 
to make. He says the market has slowed to a level which is not 
realistic.

MERCURY NOW TREATS ALL CUSTOMERS AS VULNERABLE
----------------------------------------------

Mercury Energy says it now treats all its customers as 
vulnerable following the death of Folole Muliaga. The inquest 
is continuing into the death of the 45-year-old Auckland woman 
after power was cut to her home and oxygen machine in May last 
year. Former Mercury Energy manager James Moulder says the 
company failed to comply with guidelines for State Owned 
Enterprises in how it treated vulnerable customers. Mr Moulder 
says he regrets appropriate information was not being passed 
on to help customers identify themselves as being at risk. He 
says that has been improved because of Mrs Muliaga's death.

Friday, 23 May 2008
~~~~~~~~~~~~~~~~~~~

GOOD TIMES AHEAD FOR KIWIFRUIT GROWERS
--------------------------------------

Kiwifruit exporter Zespri has forecast a big rise in grower 
returns for the coming season. The company has unveiled its 
forecasts, tipping fruit and service payments to rise by 
between 45 and 95 cents a tray. For green kiwifruit growers, 
this means a rise from $6.30 per tray to between $6.75 and 
$7.15 per tray. For green organic, it is a move from $8.15 per 
tray to between $8.70 and $9.10 per tray. Gold kiwifruit 
returns are forecast to lift from $8.81 per tray to between 
$9.30 and $9.70 per tray. Zespri says it will also pay what it 
calls a loyalty premium to growers on three year contracts, of 
15 cents a tray for class one fruit. Chief Executive Tony 
Nowell said the forecasts will be welcomed, especially by 
growers of Green kiwifruit, the hardest hit by the impacts of 
foreign exchange movements. He cites improved in-market 
pricing, size, profile and the foreign exchange situation for 
the higher payments.

NATS WANT TO UPSKILL PRISONERS AND BENEFICIARIES
------------------------------------------------

National is planning to allocate funding to help upskill 
prisoners and those on welfare. Leader John Key has made the 
announcement at a speech to National Party supporters in 
Auckland. He says one in five people are leaving school 
without being able to read or write or write properly. Mr Key 
says many prisoners are illiterate and if you want them to 
have a future outside of prison they need skills, while those 
on welfare need to be empowered. He says more details on the 
plan will be released later in the year. 
 
(Good idea in principle, provided that there are then jobs 
available. - BH)

TAX CUTS LOCKED IN
------------------

Parliament has passed legislation under urgency that will see 
the $10.6 billion tax cut program phase in from October 1. The 
law has been passed unopposed, with National supporting the 
legislation. The Greens and the Maori Party both abstained.

FARMERS WANTED GOVT SPENDING CUT
--------------------------------

Federated Farmers is surprised more effort has not been made 
in the Budget to cut Government spending. President Charlie 
Pedersen says a reduction in spending would benefit the 
overall economy. He says the official cash rate is likely to 
remain higher than it needs to be because of inflationary 
pressures which means more pain for farmers in the form of 
higher interest rates. He says exporters are also put under 
pressure when the New Zealand dollar rises. Mr Pedersen says 
the Budget could have signalled bolder moves to get New 
Zealand heading in the right direction. Meanwhile, Federated 
Farmers is questioning the value of the Government 
identification and tracing scheme for cattle and deer. The 
Budget has allocated nearly $5 million on the initiative which 
is aimed at improving food safety, but Mr Pedersen says the 
initiative risks loading additional cost onto farmers for no 
tangible price benefit. He says the reality is that once the 
animal is in the works, the tag is gone, so there is no way 
that an individual cut of meat can be accurately traced to the 
plate. Mr Pederson says he looks forward to the day when a 
restaurateur in New York can wave his cell phone over a lamb 
chop, and a picture of the farmer who raised the animal 
appears on the screen.

UNIONS MAY MERGE
----------------

The Service and Food Workers Union hopes to have a clear 
merger plan by the end of the year. It is in talks with the 
National Distribution Union and Unite. If they join, they will 
become the second largest union in the country with more than 
50,000 members. SWFU national secretary John Ryall says the 
process takes time, with each union having its own history and 
structure. He says once delegates decide on a plan, members 
will vote on the proposal.

RISE FOR LEGAL AID LAWYERS NOT ENOUGH
-------------------------------------

Legal aid lawyers are getting a 10 percent increase from the 
Budget, but they say it is not enough. Law Society president 
John Marshall QC says poor rates have seen lawyers dropping 
out of legal aid work for the past 12 years which is making it 
harder for people to get a lawyer. He believes the increase 
will not be enough to change that trend. An independent review 
has suggested a 16 percent increase was needed.

GST RETURNS LIKELY FROM TAX CUT SPENDING
----------------------------------------

A tax specialist believes Finance Minister Michael Cullen may 
pull another rabbit out of the hat before the elections. The 
Finance Minister's long awaited tax cuts were announced in the 
Budget yesterday, putting an extra $12 to 28 dollars per week 
in workers' pay packets. Thomas Pippos managing tax partner 
from Deloitte says the Government will have to borrow for 
capital items which would otherwise have been paid for in cash 
to partially fund the tax cuts. He predicts Dr Cullen will 
hand out another sweetener to try to entice voters. He says it 
might not be more direct tax cuts but could be something to do 
with KiwiSaver. Mr Pippos says because it is election year, Dr 
Cullen is under a lot of pressure to deliver to voters. A 
partner with KPMG estimates the Government will get back a 
fair chunk of the tax cuts it is dishing out. John Cantin says 
as people have more money in their pockets, they will spend 
it, which goes back to the Government in the form of GST. He 
estimates the return will be $250 million to $300 million of 
the $10.5 billion spent on tax cuts.

ECONOMISTS TIP INTEREST RATE CUT DELAY
--------------------------------------

The trade off for the Budget's tax cuts is higher interest 
rates according to economists. Economists had been picking the 
Reserve Bank would start cutting rates in September but now 
say it has to balance the inflationary impact of tax cuts 
which start in October. BNZ chief economist Tony Alexander 
believes the tax cuts will delay interest rate cuts, possibly 
until as late as December, because the Reserve Bank will want 
to be fairly cautious, given the fiscal stimulus during 2009. 
Mr Alexander says the household budget still be better off 
with the tax cuts, but the highly indebted who have poor cash 
flows because of high interest rates will be under pressure 
next year. He says the economy in general will be better off, 
as Treasury estimates the tax cuts will boost growth by about 
0.3 percent. Mr Alexander says interest rate cuts would see 
the two year fixed housing rate settle just above eight 
percent, falling to 7.8 percent next year. Deutsche Bank 
economists believe the Budget give the economy a stronger 
injection than previously forecast, providing confidence that 
the current recession-like economic indicators will give way 
to signs of positive, but still very modest growth, later this 
year. Deutsche Bank agrees that the downside is that the 
Reserve Bank will now hold off easing interest rates. It says 
it had expected an interest rate cut in September or October 
but now predicts it will not happen until December.

MORE FUNDS TO HELP PEOPLE STOP SMOKING
--------------------------------------

In another budget initiative, $32 million in new funding over 
four years will be allocated to programmes to help people stop 
smoking. Of that, $8 million will be spent in the coming year. 
The Cancer Control Council, an independent advisory body 
appointed by the Minister of Health, says the funding will 
help to reduce the 4,700 deaths attributed every year to 
smoking.

BUDGET FAILS TO BOOST GP NUMBERS
--------------------------------

Doctors say the Budget does nothing to address the shortage of 
GPs. Jonathon Fox, president of the College of General 
Practitioners, says it offers no increase in training numbers. 
He says the 104 places allocated this year are simply a return 
to the GP training numbers of the 1990s. Dr Fox says training 
numbers for next year are being held at the same level, 
despite a recommendation they be boosted to 150. Yet he says 
the additional spending in health, particularly the $20 
million per year for the next four years to further implement 
the Primary Health Care Strategy, will impact on general 
practices. He says that risks killing the momentum. He says 
Labour had previously agreed to a work stream that would 
alleviate the shortage of GP numbers over time but that has 
not happened.

TAX CUTS WON'T HAPPEN SAY NATS
------------------------------

National has no faith the Government will deliver on its tax 
cuts promises. Workers are set to get tax relief from October 
of between of $12 and $28 a week when the first phase of Dr 
Cullen's tax package kicks in. The cuts will rise to $22 to 
$55 a week once the four year programme is fully in place. The 
National Party's finance spokesman Bill English does not 
believe the reductions will come to pass. He says tax cuts 
were promised in 2005 but were later cancelled. He says Dr 
Cullen cannot be trusted particularly when the numbers are 
large. National's leader John Key has previously spoken of the 
need for a "meaningful" tax cut of "north of $50" a week, but 
Dr Cullen is confident his tax cuts cannot be trumped by 
National. He says Mr English has read the books and knows that 
is not possible. He says with forecast cash deficits of $3.5 
billion a year, National cannot promise billions of dollars a 
year in additional tax cuts over and above what has been 
announced in this year's Budget. Despite the budget's tax 
cuts, some analysts say workers would still be better off 
across the Tasman. The independent Institute of Economic 
Research says the tax gap between Australian and New Zealand 
workers has grown significantly in the past eight years. It 
points out that the threshold for Australia's 45 percent top 
personal tax rate will rise to $A180,000 from July 1. New 
Zealand's 39 percent rate is being raised to $80,000 by April 
2011.

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