Copyright, Brian Harmer

Saturday morning, and a warm winter sun attempted to lift
the moisture of several days of intermittent rain. The
ground was wet underfoot, and the lawn was soft, verging on
muddy. Across the valley, such local imperfections were
visible only because of the faint mist rising. Moist clouds
curled over the edge of the Orongorongos from the Wairarapa
The river was higher than usual, and discoloured brown from
the silt carried down from Upper Hutt and the  Tararuas.
It seemed a reasonable day to take my mother on something
of a tour of the bits of Wellington she had not yet seen.
We set out up the Ngauranga Gorge, under the slender
elegance of the new overpass to Newlands, and turned left
into Johnsonville. Since it was Saturday morning, the
traffic was slow as people looked for carparks near to
their favoured shops. We squeaked out the other side along
the old road through Redwood, Tawa and Linden. Somehow,
those suburbs seem little changed in the twenty-odd years
we have been in Wellington. True enough, the houses have
crept a little higher up the Western hills, but the view
from the main road seems as it always was.

Porirua city centre has certainly changed in that period,
with the building and subsequent refurbishment of the North
City Plaza and the newer Mega-centre. When I first came to
Wellington, the most prominent building was Kodak's
laboratory, an imposing two story building in red brick on
the edge of Elsdon. Today that building is lost in the
welter of newer larger buildings. We came past the Porirua
police station where the flag was poignantly at half-mast
in mourning for Detective Constable Duncan Taylor, slain by
a seventeen year old with a rifle. We drove on towards
Titahi Bay where we paused to watch a turbulent surf
thumping in on the pretty bay. Across the water a bank of
cloud threatened the early promise of the day, and covered
the tops of the islands at the ends of the Marlborough
Sounds. Surfers (in the original sense of the word) waited
at the Southern end of the bay for the right wave to take
them in. Whitireia park beckoned with a large expanse of
open hilly country, surmounted by the two great radio
transmission masts. This is a park that I must explore more
in the summer. Anyway, as I half expected, there were some
members of the Wellington Model Aeroplane Club flying radio
controlled gliders into the standing wave of the incoming
Nor'Wester over the cliffs. These models were made of
virtually indestructible EPP foam, and given the speed with
which they rocketed past, that was just as well.
Regretfully, I moved on, back though Porirua and out
through Paremata. I chose to take the wildly twisting and
picturesque Airlie Rd, from which there are a few
spectacular viewpoints, and re-emerged on SH1 by the Whenua
Tapu cemetery just South of Pukerua Bay. The narrow coastal
road along the sea wall from Pukerua Bay to Paekakariki is
dangerous to motorists, perhaps because oncoming traffic is
unforgiving if you are distracted by the elegance of the
incoming waves, or the mysterious grandeur of Kapiti
Island, or even by hang gliders soaring in the wave over
the Paekakariki hill. I traversed that section without
incident, and arrived at McKay's Crossing near Queen
Elizabeth Park, where the US Marines had a major base as
part of their Pacific war. We paused at the Chocolate
factory so that my mother could buy some gifts for her
friends at home, and if I bought any myself, there were no
witnesses, so it doesn't count. By now, the sky had clouded
over from the North and a steady drizzle made conditions
less than ideal for sightseeing.
We paused for lunch at the Farm Kitchen restaurant in the
Lindale Centre, where the crowd was unreasonably large, but
the food was good and hot. I like Lindale, and I like many
of the craft items on display, though I sometimes think the
prices are a little on the optimistic side, and are more
likely to be paid by foreign tourists or out-of-towners
than locals. If you should go there, I particularly
recommend the Olive shop which specialises in oils and
other products related to the humble olive. Likewise there
is a woodcraft shop which has some magnificent workmanship
for sale. One day someone will buy the magnificently made
wooden Harley-Davidson "rocking horse" for a grandchild, but
the price is well beyond me, so it may sit there as a
centrepiece for some while yet. Lindale's own craft is in
the manufacture of cheese and ice cream, both of which I am
supposed to avoid these days, but my memory says these are
both magnificent, and if you like blue cheese, try the
Kikorangi!

By now, the rain was bucketing down, so the journey home
was by the most direct route straight down the motorway.

----
All news items (except where noted otherwise) are
reproduced by kind permission of copyright owner, IRN Ltd.
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 "HH" will indicate an opinion
from Helen.
In all cases they are honest expressions of personal
opinion, and are not presented as fact.

----
This week's formatting is sponsored by www.kiaorathailand.com to whom
my grateul thanks

On with the news:

Monday, 1 July
~~~~~~~~~~~~~~

COURT HEARS MIKUS DID NOT KNOW TERESA
--------------------------------------

The Napier District Court has been told the man accused of
murdering Teresa Cormack did not know the little girl.
Jules Mikus is facing a depositions hearing into the
fifteen-year-old murder. A former detective told the court
he interviewed the accused nearly a month after Teresa's
disappearance. The court heard Mikus did not know Teresa
and had not seen her before her photo was published in the
newspaper. Mikus says he spent most of the morning on the
day Teresa disappeared at the Social Welfare Office in
Napier. The detective says Mikus' alibi at that time was
confirmed, but Teresa went missing around nine am that day
and the alibi does not cover that particular time. A blood
and saliva sample was taken from Mikus in July that year.
The court has also heard a witness tell of a conversation
she had with Jules Mikus. Today's witness, who has name
suppression, says Mikus stayed at her home for a month last
year. She says Mikus told her he had killed someone and got
away with it. The witness said Mikus then threatened to
kill her son and her partner. The defence claims the woman
had made the conversation up to get back at Mikus for
comments made at her son.

BILL ENGLISH HITS CITY OF SAILS
-------------------------------

It has been a day of meeting and greeting ordinary New
Zealanders for Bill English. And the first day of the
campaign proper appears to have been a success for the
National leader. The day started for Mr English at a Tongan
health centre in the Auckland suburb of Onehunga, which he
opened as Health Minister four years ago. Then it was a
quick walkabout at a local mall for more glad-handing,
prior to launching National's health policy at a health
clinic in Mt Eden. But our reporter travelling with the
National leader says he was clearly most comfortable while
pressing the flesh and signing autographs among people of
all ages along Auckland's busy Queen Street. She says Bill
English clearly wants to prove he is Prime Minister in
waiting.

PETERS PLAYS IT SAFE
--------------------

No surprises in the New Zealand First Party list. Party
leader Winston Peters released the list in Matamata today,
where he was speaking at a local Grey Power meeting. The
top five are New Zealand First's current MPs - Winston
Peters, Peter Brown, Brian Donnelly, Ron Mark and Doug
Woolerton. New Zealand First has also taken a dig at
Labour, launching a Labour debit card with seven promises
on it that it claims Labour never made but will deliver on
anyway.

HARRE ON A NEW CRUSADE
-----------------------

Now she has paid parental leave under her belt, Laila Harre
is pushing for free day-care for pre-schoolers. The
Alliance leader today unveiled her party's Work and Family
policy. Ms Harre says the first step is more affordable
child care for working families. She wants the government
to provide 15 hours a week free childcare for all three and
four year olds. Laila Harre says spending money on
childcare would not only make it easier for parents to work
but would also increase the number of people employed in
the early childhood sector. Laila Harre says the 15 hours a
week should also apply parents looking after children at
home.

MURDER-ACCUSED'S WHEREABOUTS DETAILED
-------------------------------------

The Napier District Court has heard a description of a man
seen with Teresa Cormack the day she disappeared. Forty-
three-year-old Jules Mikus is charged with the 1987
abduction, sexual violation and murder of the six-year-old.
A witness says she was driving to an appointment on
Napier's Wycliffe Street on the morning of June 19, 1987,
when a young girl walked out in front of her path. She says
the girl matched Teresa Cormack's description and she says
she had to brake to miss her. The witness says a man with
her pulled her off the road. The court heard her describe
the man as being in his mid to late 20s with long
Rastafarian hair, and cold, evil Charles Manson-like eyes.
The witness says it was an unlikely pairing, as the man was
very untidy and the child was well dressed. The District
Court has also heard that the man accused of murdering
Teresa Cormack was seen at a social welfare office on the
day she disappeared. A witness who has been granted name
suppression told the court she saw Jules Mikus at the
social welfare office in Napier at 11. 30am on June 19. The
Crown says Mikus told the police in a statement that he was
at the office between 9. 30 and ten that morning, and again
later that day at quarter past one. The court has also
heard that the witness had been living on-and-off with
Mikus in Napier and that he repainted her Vauxhall Viva
station wagon in late June 1987 from red to brown.

(I have some reservations about the usefulness of a 15 year
old recollection of "cold evil eyes". Such a phrase is
surely more emotive than evidential. I quite accept that
the witness is speaking in good faith, but I am not sure
that the phrase ought to be able to be used in such a way.
Its effectiveness is illustrated by the fact that it was
used by one newspaper as a billboard - BH)

LABOUR SAYS NATIONAL HEALTH POLICY 'NONSENSE'
--------------------------------------------

Labour have described National's health policy out today as
high on rhetoric and low on detail. National are promising
a rescue package to pay off the deficit of the 21 district
health boards so they can spend annual increases. Leader
Bill English says DHBs' fees have accumulated into a
combined operating deficit of more than 300 million
dollars. But Health Minister Annette King says any talk of
a rescue package over and above the existing funding Labour
has put in place is irresponsible nonsense. She says no
government can have an open chequebook for health and
National knows that only too well. Mrs King says there is
nothing of note in National's health policy and they seem
more interested in bumper stickers than effective policy.

MUMS WELCOME PAID PARENTAL LEAVE
--------------------------------

A group of West Auckland mothers are welcoming paid
parental leave but are disappointed it does not go far
enough. Today marks the introduction of the scheme, which
provides mothers with a maximum payment of $325 a week for
12 weeks while on leave from their jobs. West Auckland
parents centre coordinator Sharon James says many mothers
in her group are eligible for the scheme. But she says it
would be better if it covered the self employed and mothers
who are having their second child. Meanwhile, Australia is
looking at the costs of a paid parental leave scheme
similar to the one on this side of the Tasman. Australian
Family and Community Services Minister Amanda Vanstone says
the government is investigating the cost of a similar
scheme but does not want the system to benefit the rich.

GOVERNMENT TO APPEAL IMMIGRATION RULING
---------------------------------------

The Government is to appeal a High Court ruling that its
new immigration policy of detaining refugees is against the
law. A High Court judge last week found the stricter
detention regime, introduced after the September 11
attacks, breached a United Nations convention. Immigration
Minister Lianne Dalziel says the Crown Law Office has
advised the Government that the High Court's interpretation
of the policy was incorrect. She says refugees are only
detained if they arrive in the country with no or false
documentation. Ms Dalziel says the Government feels very
strongly that the UN convention does allow for refugees to
be held while their identity is ascertained. She says the
Government is concerned that if that does not happen, the
door may opened for potentially dangerous refugees to be
let in the country.

FERTILITY TREATMENT WILL NOT BE CANNED
-----------------------------------

Assurances from Waitemata Health that it will not be wiping
free fertility treatment for childless couples. The
Infertility Society says it was stunned to receive a copy
of a letter to private firm Fertility Associates stating
the board's intention to end their contract to save money.
But Waitemata District Health Board chairwoman Kay McKelvie
says the letter has been misinterpreted. She says there are
a number of groups providing fertility services in Auckland
and the board is simply reviewing the contract to make sure
it gets the most for its dollar. And Ms McKelvie says the
service will not go, as the Minister of Health has decided
that every childless couple in the country should get one
free shot at fertility treatment. She says it is
appropriate that the Government, as the shareholder, makes
that decision.

Wednesday, 3 July
~~~~~~~~~~~~~~~~~~

GREENS REVIEW SUPPORT OF LABOUR
-------------------------------

The Greens are now threatening to pull the plug on Labour
before it even gets a chance to form a government. The
Greens had offered supply and confidence support to any
minority Labour government after the election, up until the
lifting of the GM moratorium in October next year. Labour
has been critical of the stance, accusing the Greens of
being prepared to bring down a government over a single
issue. But Greens co-leader Jeanette Fitzsimons says the
party is now reviewing whether it should offer any support
to Labour at all. Ms Fitzsimons says she wonders whether it
would be more sensible not to let a Labour government form
in the first place, rather than be accused of trying to
bring a government down.

(Ms Fitzsimons later withdrew this threat, which she
described as musing. - BH)

LEE WELCOMES RULING
-------------------

Cabinet Minister Sandra Lee has welcomed the Employment
Tribunal's decision to dismiss a case brought against her
by a former staffer. Darryl Evans was electorate agent for
Ms Lee until he was dismissed in December 1999. He had
brought a case against Parliamentary Services for
unjustified dismissal and humiliation. Mr Evans was also
seeking almost $160,000 in damages. In his judgement,
Employment Court judge Tom Skinner says a memo issued in
July 1999, made it clear that Darryl Evans' contract was
due to expire two weeks after the 1999 general election. He
says he is satisfied Mr Evans was given notice his contract
would expire on that date. Sandra Lee says she welcomes the
decision that there was no basis for a personal grievance
claim.

MIXED REACTION TO OCR INCREASE
------------------------------

The Council of Trade Unions says today's Official Cash Rate
hike is unnecessary. Acting Reserve Bank Governor Rod Carr
has increased the OCR a quarter of a percent to 5. 75
percent. It is the fourth rise since March. CTU Economist
Peter Conway says a higher New Zealand dollar and lower
export returns will help keep inflation levels in check
next year. He says that eliminates the need for the Reserve
Bank to raise the OCR. Peter Conway says in the medium
term, inflation should stay within the zero-to-three-
percent band. Mortgage interest rates as high as nine
percent by next year are being predicted in the wake of the
OCR hike. Act's Rodney Hide says it is pleasing to see the
acting Reserve Bank Governor Rod Carr was unfazed by the
Minister of Finance's attempt at intimidation. Michael
Cullen has been calling for a more flexible approach to
monetary policy by the bank and today's tightening runs
contrary to that. Mr Hide says economic growth is now
running at just two and a half percent, having averaged
three percent through the nineties. A vote for Labour is,
according to Mr Hide, a vote for high interest rates and
poor growth.

SOUTH ISLAND PAYS FOR IMMIGRATION SAYS PETERS
----------------------------------------------

One of the few political leaders holding regular public
meetings during this election, Winston Peters has told a
Dunedin audience they are paying the price of uncontrolled
immigration. The New Zealand First leader says Labour and
National are selling the country out, handing out
citizenship like lotto tickets. Mr Peters says the two
major parties have done nothing to stop the immigration
scams and marriages of convenience. He says a criminal is
deported from one airport and then arrives back through
another. Mr Peters says Auckland is the new Mecca and it is
bursting at the seams. He says house prices are soaring and
the roads are grid locked, while in Dunedin people are
paying more for petrol because of Auckland's problems.

LEGAL WARNING OVER EMAILS
-------------------------

An employment lawyer is cautioning employers to think twice
before they send emails about employees. An Auckland woman
has been awarded nearly $17,000 after her boss wrote an
insulting email about her. Andrea Wilkinson was working for
Auckland records company Recall Total Information
Management. Last November, she found an email in which her
boss described her as not having a brain and being "in lala
land". The ERA ruled the email breached the trust and
confidence implicit within employment contracts. It said Ms
Wilkinson's grievance was "genuine and understandable".
Simpson Grierson law firm partner Don MacKinnon says it has
become commonplace for online correspondence to be used as
evidence in employment cases. He says emails are
discoverable in court proceedings. He says they have the
same standing as open letters. And he says many people
still do not realise how easy it is for emails to be read
by others.

(As one of our professors of commercial law has in his sig
file, "today's email is tomorrow's evidence"  - BH)

SUPPORT FOR GISBORNE PORT DEAL
------------------------------

The Gisborne City Council is supporting a deal worked out
for the sale of the district's port which will keep it in
local ownership. The council met port company board
representatives this afternoon to discuss an agreement to
sell the port to the Eastland Energy Community Trust. The
deal is believed to be worth more than $15 million, and
involves the sale of up to 100 per cent of the port
company's assets to the trust. Mayor Meng Soon says it is
hoped the deal will be completed by the end of September.
He says it is a positive outcome and the district can make
further progress with regional development

GM TURMOIL AT GREEN COMMENTS
----------------------------

Turmoil in the Greens' ranks today as remarks from Jeanette
Fitzsimons filter through to the Prime Minister. Ms
Fitzsimons has suggested she would not let a minority
Labour government form - rather than pull the plug
immediately after the election. Ms Fitzsimons was asked
about her position and our political staff say she appeared
fed up with all the talk from Labour that her party is
preparing to bring the Government down over the moratorium
on genetic modification. She says it may be better not to
allow Labour to form a Government in the first place.
However, since then she has been calling around journalists
saying that is not what she meant to say. Meanwhile a
former Federated Farmers president's being painted as
something of a biotechnology turncoat. Sir Peter Elworthy -
who was president in the early eighties - is now Chairman
of the Sustainability Council. The council wants another
five years added to the ban on the release of GM organisms
- the issue at the centre of the row with the Greens.
Current FedFarmers President Alistair Polson says it is
ironic Sir Peter is now advocating policies which would
hurt farmers. He says another five years added to the
moratorium would seriously harm our future competitiveness.
Alistair Polson warns an extended moratorium would force
our agricultural scientists offshore.

(Several media commentators have suggested that Sir Peter's
credibility on this issue is compromised by the fact that
he owns a large organic farming business. - BH)

CARR DEFIES GOV'T OVER OCR
--------------------------

The Acting Governor of the Reserve Bank Rod Carr put his
job on the line today, defying the Minister of Finance.
Political editor Barry Soper says Michael Cullen has sent a
direct message to the bank to be more flexible in its
approach to monetary policy. However, Acting Governor Rod
Carr defied the Government and also asserted the
independence of the central bank by raising the Official
Cash Rate by quarter of a percent to 5. 75%, the fourth
rise since March. At the same time he indicated that
further increases in the coming months are less likely than
anticipated, largely because of the rising value of the
dollar. Barry Soper says that may placate Dr Cullen but
whether it will be enough to ensconce Dr Carr as the new
Governor will be answered after the election.

GM BECOMES KEY ELECTION ISSUE
-----------------------------

Open warfare appears to have broken out between Labour and
the Greens. Tensions between the two parties reached new
heights today, after Greens' co-leader Jeanette Fitzsimons
threatened to pull the plug on Labour as soon as the
election is held. Ms Fitzsimons withdrew her comment about
an hour later, saying she has now changed her mind.
However, the threat has raised the ire of Prime Minister
Helen Clark who has clearly had enough. Miss Clark says the
Greens are simply confirming that Labour would prefer to do
without them. She says a threat of that kind only redoubles
her determination to go for an outright majority working
with Jim Anderton. Helen Clark says that is the only way
the country can continue with stable government. She says
the Greens are likely to risk a backlash from their
traditional supporters. Meanwhile the Science Minister has
faith the New Zealand public will make the right decision
on GE. Pete Hodgson admits there is heated debate on the
issue, and it has just been turned up a notch with the
unveiling of an anti-GE lobby group today headed by such
notables as actor Sam Neil, squash champion Dame Susan
Devoy and former Federated Farmers boss Sir Brian Elworthy.
The Sustainability Council of New Zealand is calling for an
extension of the GE Moratorium from two years to five. The
Council fears GM organisms might harm trade, health and the
environment. But Pete Hodgson is confident the existing
deadline is long enough to give what he calls a "discerning
New Zealand public" time to weigh up the risks. He says
that, coupled with the Government's restrictive regime will
ensure New Zealand proceeds with the technology with
caution. And current FedFarmers President Alistair Polson
says it is ironic Sir Peter Elsworthy is now advocating
policies which would hurt farmers. He says another five
years added to the moratorium would seriously harm our
future competitiveness. Alistair Polson warns an extended
moratorium would force our agricultural scientists
offshore.

(Shades of the Citizens for Rowling! I am uncomfortable
that people bringing nothing more than their celebrity
status to the debate should attempt to use that in an
attempt to somehow give their arguments extra weight. Dame
Susan admits she knows little of the science involved, and
therefore she is, like me, a lay-person in the debate. I
think that the same is true of Sam "Jurassic Park" Neil. Of
course that does not deny them [or me] the right to an
opinion, but to attempt to give those opinions more weight
than they deserve because the holders are "eminent
citizens" does not sit well with me. - BH)

TESTING OFFERED AFTER HOSPITAL TB SCARE
---------------------------------------

Some patients who were in Dunedin Hospital last month are
being offered screening tests following the discovery of a
case of tuberculosis. A nurse working in Ward 8A between
June the 10 and 18 has returned a positive test for TB.
Otago Medical Officer of Health Dr John Holmes says a
simple test will put people's minds at ease. He says the
risk of infection is very small but the 104 people that
could have been exposed will be offered screening tests. Dr
Holmes says it is uncommon for the disease to turn up in a
practising health professional as they are screened for TB.

Thursday, 4 July
~~~~~~~~~~~~~~~~

AA ROADING CLAIM TRASHED BY GOVERNMENT
--------------------------------------

The Government is flatly denying that it is planning a
petrol tax increase of up to a dollar per litre, as part of
a draft roading strategy. The AA, and the Road Transport
and Business Forums say the New Zealand Transport Strategy
- a draft which they saw last week - could see the price of
petrol almost double. But acting Transport Minister Judith
Tizard says that is nonsense. She says there is no
suggestion in the document that petrol tax will increase.
Ms Tizard says the claims are politicking by Road Transport
Forum's head, Tony Friedlander, who's a former National
Party Minister. Judith Tizard says the strategy will be
released publicly later this year.

NO COMMITMENT TO HEALTH TAX - LABOUR
-------------------------------------

Labour is reiterating that it has made NO commitment to
introduce a dedicated health tax. However Finance Minister
Michael Cullen says the Government has committed to
exploring the feasibility of the idea. It follows
suggestions from National and ACT that a health tax could
increase taxes by eight percent. Dr Cullen says even if
they did proceed they have not discussed a specific rate.
He says in any case, the rate is irrelevant because the
health tax would replace an equivalent amount of existing
income tax. He says it would not be imposed as new
taxation. Dr Cullen has also denied that there was any
pressure to increase petrol taxes, saying all roading
projects earmarked could be financed from the last increase
in March.

SHAREHOLDERS WILL NOT PAY FOR NEW AIRCRAFT
------------------------------------------

A show of confidence from Air New Zealand, as it announces
plans to buy 15 new Airbus A320 aircraft. It has purchase
rights on an additional 20 aircraft over the next 10 years.
Managing director Ralph Norris says the first phase of the
fleet purchase will cost around $400 million. The new
planes will replace four Boeing 767s and nine 737-300
aircraft that are being retired over the next four years.
He says the planes are good news for the company and the
country. Chairman John Palmer says the announcement
demonstrates the airline's confidence about the future. He
says phase one will cost around 400 million dollars. He
says the acquisition's essentially replacing old leases
with new. John Palmer says that is good news for
shareholders, as they will not be asked to pay for the
airline's new fleet. Meanwhile, an Internet search shows
the A320 has been involved in five reported accidents
involving 327 deaths. In 1988, an Air France A320 crashed
during an air show manoeuvre. An Indian Airlines craft
crashed 400 metres short of the runway in 1990. In 1992, an
A320 crashed in France. The following year, an Air
Lufthansa plane overshot the runway. And in 2000, a Gulf
Air craft crashed into the sea after failing to land at the
Bahrain International Airport.

(That is fascinating. I have to say that from a passenger
perspective, I have always felt comfortable in any Boeing
Aircraft, whereas I was less comfortable on my few Airbus
flights. This may have been a result of the cabin
configurations of the airlines involved [SIA and Emirates].
I guess I shall have to reserve judgement - BH)

PETERS SLAMS TREATY INDUSTRY
----------------------------

New Zealand First leader Winston Peters describes the
Treaty industry as a 'bloated leech gorging itself on a
geyser of public money'. Mr Peters says it has brought no
significant benefit to Maori, and he has singled out the
Crown Forestry Rental Trust as a perpetual money machine
for a favoured few. The trust was set up to hold rents from
land under state forests in trust until Treaty claims are
settled. It now has more than $300 million in trusts and
securities. Mr Peters says the trust is funding a project
aimed at enhancing the cultural, commercial and social
development of Maori in the central North Island. He says
just on $19 million has been set aside for the project, but
less than $3 million will go to claimants. The rest he says
is being spent on those administering it.

GOVERNMENT EXTENDS TEACHERS' PAY OFFER
--------------------------------------

The Government has extended its pay offer to secondary
school teachers by another $13 million. The offer includes
a 3. 5 percent pay increase over a shorter period to the
April 30 2003. Two percent of that will be backdated to
July 2001. It also includes non contact time and a new
slant on the NCEA allowance. The proposal is to introduce
fixed term NCEA implementation units valued at $1,000 each
per annum over the next two years. There will be 19,000
units which could be allocated in multiples. Teachers have
rejected the last two pay offers accepted by their union
the PPTA, the most recent of which totalled around $155
million.

ROAD LOBBY GROUP HORRIFIED AT PLANS
------------------------------------

Claims petrol taxes could jump by as much as a dollar a
litre if a draft Government strategy on transport is
adopted. The strategy has not yet been released publicly.
But it has been viewed by groups representing motorists,
business people and transport operators. They are calling
on Helen Clark to unveil it so we can all get a look. The
lobby group, which includes the AA and Road Transport
Forum, says proposals in the strategy would increase costs
for road users by between one billion and three billion a
year. It believes it is a deliberate attempt to drive huge
numbers of cars and trucks off the road and persuade people
to use public transport more. AA spokesman George Fairbairn
says many of the costs which the Government wants to impose
only on road users are actually social costs which should
be borne across the whole of society.

MYSTERY BONE WAS ANIMAL
------------------------

Police in Picton have established a piece of bone found in
Cook Strait last weekend was not that of a human. There was
initial speculation the bone, fished up from the Tory
Channel sea floor, may been connected to the disappearance
of Ben Smart and Olivia Hope. However Sergeant Tony Sampson
says following a forensic examination, it appears the bone
has most likely come from a cow. He says it was
disappointing the finding of the bone had created such
speculation, when there are still families mourning loved
ones lost at sea in the area.

RESIDENTS PROTEST AT KAITAIA CUTBACKS
-------------------------------------

There has been a heated march in Kaitaia today as residents
protest service cutbacks at the hospital. A Far North
pregnant woman waited hours to be flown to Whangarei
Hospital for an emergency caesarean section. A ban on
certain surgeries prohibited Kaitaia maternity staff from
delivering the baby. Northland MP John Carter says several
thousand protesters gathered outside the hospital today. He
says they're angry about the lack of community
consultation. He says the Government has the power to lift
the ban. But Northland District Health Board says it would
have been disastrous if the baby had been delivered at
Kaitaia Hospital. Whangarei Hospital spokesman Luke Worth
says both mother and baby are in a stable condition -
thanks to the medical care available in Whangarei. He says
such services are not available in Kaitaia.

DOCTORS WORRIED BY CARE STRATEGY
--------------------------------

The Medical Association has sent a 'red letter' to doctors
around the country, which is its way of notifying people
about serious concerns. The letter raises the Association's
fears about aspects of the Government's Primary Care
Strategy. It says they have the potential to seriously
destabilise general practice and cause new inequities in
access to GP services. In particular it is worried about
the Government's intention to give extra funding to health
providers treating predominantly Maori, Pacific Islanders,
and people on low incomes. That means wealthy people
enrolled with the same provider will get the subsidies,
while poor people living in a neighbouring area may miss
out.

MEDIATION MAY AVERT HOSPITAL ORDERLIES' STRIKE
----------------------------------------------

Auckland District Health Board hopes mediation will avert a
strike by hospital orderlies and kitchen staff. Two hundred
members of the Service and Food Workers Union have issued
strike notice for two days in mid-July. They want a pay
rise and job security. DHB spokeswoman Brenda Saunders says
the strike notice came as a surprise. She says negotiations
are set to resume in the next few days, and she hopes
mediation will resolve the dispute before strikes begin.

HOPE FADES FOR MISSING MEN
--------------------------

Hope of finding two men lost in the south west of the South
Island is fading. Grave concerns are held for pilot Martin
Meehan and friend Norman McPherson whose light plane
disappeared somewhere between Hokitika and Alexandra on
Sunday. National Rescue Co-ordination Centre spokesman Paul
Harrison says time is of the essence. He says if they are
in danger, the longer it takes to find them the less chance
they have of surviving. Paul Harrison say low lying cloud
in Westland this morning has lifted, making searching much
easier.

(The wreckage of the aircraft was discovered on Saturday
with the bodies of the two fliers inside. - BH)

Friday, 5 July
~~~~~~~~~~~~~~

OFFICERS DOWN IN FEILDING
-------------------------

Two police officers have been shot in Feilding. The
announcement was made shortly after 2. 30 this afternoon by
Police Commissioner Rob Robinson at a media conference in
Wellington to announce the results of the police
investigation into the Helen Clark "paintergate" saga. Rob
Robinson could give no further details, and was heading
straight to Feilding as soon as the conference was over.
One police officer has been taken to hospital with gunshot
wounds. The other is still at the scene, but there is no
word on his condition.

(Detective Constable Duncan Taylor was killed by a shot to
the head and the body. The officer with him, Detective
Constable Jeanette Park was shot in the leg. The seventeen
year old high school student, Daniel John Luff was
apparently being stopped for questioning  in connection
with a burglary when he fled in his vehicle and went to the
home of a family known to him. After shooting the two
officers, he is alleged to have held members of the family
hostage for some hours during which time DC Duncan Taylor
lay in the open. His partner managed to get to a phone
despite the wound in her leg and summon help. Duncan Taylor
is the 26th police officer killed in the line of duty in
the history of New Zealand Police. - BH)

PAINTERGATE
-----------

Police Commissioner Robinson says police have found there
is a prima facie case, not only against Helen Clark, but
also against a member of her staff as well who arranged the
production of the painting. The Prime Minister signed a
painting, and other art works, as her own when they had
been painted by someone else. Solicitor General agrees with
the police view that there is a prima facie case. However,
the Police Commissioner says he will not be taking the
matter further. He says he feels the law is flexible enough
to allow him to make this decision. Police began the
investigation after receiving a complaint from a Wellington
doctor.

GOVERNMENT OPPOSES NUCLEAR SHIPMENT
-----------------------------------

The Government has registered its opposition to the two
countries that are about to ship nuclear waste materials
through the Pacific. Two British ships have left Japan for
Britain carrying nuclear waste known as a mixed oxide fuel.
Foreign Affairs Minister Phil Goff says they have sought an
assurance from both countries that the nuclear waste will
not go through our Exclusive Economic Zone. He says they
will employ RNZAF Orion surveillance planes to make sure
they do not enter our zone. Mr Goff says the assurances
have been honoured in the past when similar shipments have
been made. The waste was originally shipped from Britain to
Japan, but while it was en route it emerged that some of
the nuclear material's safety records had been falsified by
officials in the UK. The scandal saw a tightening up of
regulations and nuclear waste management in Britain.
However, Japan refused to accept the waste without valid
safety documents.

ELECTION TAX ROW BREWING
-------------------------

The election campaign has moved to more traditional ground
today - following claims the Government is planning new
health and fuel taxes. So far the campaign has been
dominated by Labour's wrangling with the Greens over GM.
Labour was forced to admit yesterday that it is looking at
a dedicated health tax in the future. It has since moved to
reassure voters it would only be a ring fencing of tax
money for health and would NOT mean people pay more tax. On
top of that though it has had to scotch claims by the
transport sector that a draft transport strategy doing the
rounds would cause a big rise in petrol tax. National is
now demanding Labour come clean over its tax plans if re-
elected. Leader Bill English says voters have a right to
know before the election what Labour's tax agenda is.

TEACHERS UNLIKELY TO ACCEPT OFFER
---------------------------------

The secondary teachers' union must now decide whether to
put the Government's latest pay offer to members. That
offer includes a 3. 5 percent raise, and an NCEA allocation
worth $1350 per year, on average. This weekend the PPTA
executive must consider whether teachers are likely to
accept the offer in a vote. Auckland Regional Chairman Alan
Papprill suggests not, on the basis of their reaction to
previous offers. He says it does not bode well for the next
school term. Alan Papprill believes teachers have
reluctantly accepted they will not get a pay rise above the
rate of inflation. But he says the sticking point is the
NCEA allocation, which Auckland teachers will not easily
accept.

GREENS LAUNCH TERTIARY POLICY
-----------------------------

Universal student allowances and a $1500 cap on fees are
the Greens' tertiary education vision. MP Nandor Tanczos
launched the party's tertiary education policy at Lincoln
University today. He told students the user-pays model of
tertiary education must be rolled back. He also wants a
year's worth of student debt wiped each year a graduate
stays and works in the country. Mr Tanczos says the $5
billion student debt must be tackled before it gets out of
control. Recent polls have shown the Greens enjoying close
to 20 percent support on tertiary campuses.

THIRD CATHOLIC HELPLINE SET UP
------------------------------

A third helpline has been set up to deal with sex abuse
allegations within the Catholic church. The Catholic
bishops of New Zealand have launched the 0800 number, in
addition to those already in place from the Society of Mary
and the St John of God Brothers. Catholic church
spokeswoman Lyndsay Freer says the Catholic helpline aims
to be a central point of contact for those wanting to come
forward with abuse claims. She says churches have been
receiving a lot of calls which did not relate to their
order. Ms Freer says the other hotlines have received
around 200 hundred calls so far.

NAME SUPPRESSION LIFTED ON MURDER ACCUSED
-----------------------------------------

Name suppression has been lifted for three men accused of
murdering ASB worker John Vaughan. Mr Vaughan was shot and
killed during a May robbery of the Mangere Bridge ASB in
south Auckland. The three men are Joseph Sam Samoa, William
Logan Johansson and Pago Savaiinaea Samoa is also accused
of murdering Pakuranga pizza worker Marcus Doig. They have
been remanded in custody till the 28th of August.

ANDERTON TAKES SWIPE AT ALLIANCE
--------------------------------

Jim Anderton has taken a swipe at his old party, the
Alliance, while releasing his party's tertiary education
policy. Mr Anderton's told the Aotea Tertiary Students
Association that demanding a no-fee education and the
immediate cancellation of all student loans will not
resolve the student debt crisis. Our political staff say
that's a clear reference to the Alliance's promise to wipe
student debt and make tertiary education free. Mr Anderton
says his party aims to make tertiary education free for all
New Zealanders, but unfortunately 15 years of escalating
fees and student loans can not be wiped out overnight. He
says his party would remove fees for first year students,
keep fees frozen and increase student allowances.

NATIONAL OPENS DOORS TO SKILLED IMMIGRANTS
------------------------------------------

National says it would make it easier for skilled
immigrants to come to New Zealand. However, it will not
increase the current quota of 750 refugees a year. They are
a couple of features of the party's immigration policy
which has been released today. Immigration spokeswoman
Marie Hasler says National would review the points system
used for immigrants so New Zealand can accept more people
who have the skills the country needs. She says the current
system is too rigid as under the current immigration policy
there are mismatches between the skills of those who
migrate to New Zealand and the jobs they end up doing here.
Ms Hasler says her party would also review and simplify
criteria for the Long-Term Business Visa to reduce
bureaucracy and compliance costs for prospective investors.
The National policy will make HIV and AIDS tests mandatory
for all migrants and refugees. National says it would allow
the country to continue to take 750 refugees per year and
says it will support the settlement of bona fide UN-
approved refugees ahead of illegal immigrants.

KIWI WINEMAKER STRIKES GOLD
---------------------------

A New Zealand winemaker has struck gold at the prestigious
London International Wines and Spirits Competition. Morton
Estate has won gold medals for its 1998 Black Label
Chardonnay and '98 Black Label Merlot Cabernet. It also won
silver, bronze and a commended award for its other wines
and has been nominated for the Winemaker and Wine Producer
of the Year trophies. John Coney from Morton Estate says
New Zealand's white wines are already known overseas for
being extremely good. He says with the reds, Pinot Noir is
receiving more attention and 1998 was a fantastic year for
Merlot Cabernet wines. Mr Coney believes Morton Estate's
recognition at the awards will further enhance the
reputation of New Zealand's wine industry.

THE FINANCIAL PAGE
~~~~~~~~~~~~~~~~~~
Date: 4 July 2002            Brian Dooley
                             Wellington  New Zealand

CURRENCIES
~~~~~~~~~~
The currency codes given below conform to ISO 4217, which
can be found at http://www.xe.net/currency/iso_4217.htm.

The rates given are for telegraphic transfer and are
as given in the Wellington Evening Post today.

To Buy NZD 1.00

USD  0.4938
AUD  0.8796
GBP  0.3235
JPY  59.38
CAD  0.7568
EUR  0.5052
HKD  3.8615
SGD  0.8755
ZAR  5.0348
CHF  0.7394

INTEREST RATES (%)
~~~~~~~~~~~~~~~~~~
Call  : 5.75
90 Day: 6.00

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