Subject: 9 March, 2009 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer.
Apologies to all for being missing in action for three weeks. Life got very busy on the academic front. On Saturday, Mary and I drove to Waikanae to dine with some very good friends, and after an overnight stay, to spend the next day splitting the remains of a very large tree using a motorised hydraulic splitter hired for the occasion. On the way up, we decided to pause for some exercise, and for no apparent reason, chose Queen Elizabeth Park as the venue. We parked at the gate and did a reasonably brisk walk down the road alongside the tracks and wires of the heritage tramway, to the sea. Just a little past the tram sheds, is a memorial to the men of United States Marine Corps who were stationed on that site (then called Camp McKay - see http://www.nzhistory.net.nz/media/photo/camps-mckay-and- russell) in world war II as a staging post on their way to Guadalcanal. On the way back from the beach, we paused that the memorial to read the various information panels. The memorial takes the form of a series of wooden profiles, in the shape of the end walls of the little huts in which the Marines were accommodated. Most of the symbolic 'huts' in the two rows of profiles have an information sheet which gives an insight into the lives of the men in Camp Russel, Camp McKay and other camps in the neighbourhood. In front of them is a flagstaff (strangely bare, though New Zealand does not have a culture of flag flying) and an engraved plaque commemorating the bravery of the men of the 2nd and 6th marine divisions who died in the various battles in the Pacific. Very moving indeed. We continued on our way North and once past the Lindale farm park arrived at the end of a stationary and rapidly growing queue of traffic. Nothing much happened for quite some while, so by the magic of the mobile phone, contacted our hosts to warn them of our probably lateness. They were able to advise us that there had been a traffic accident involving two or three car under the railway bridge at Waikanae. The only emergency vehicles we saw were police and tow trucks, so this was clearly more a case of panel damage than serious injury. After about half an hour waiting, the traffic began to creep forward and in due course we arrived just a little after the appointed hour. After a very pleasant evening with good food, good wine and congenial company, and a good night's sleep in a quiet and restful neighbourhood, we awoke ready to start the work. The tree in question was a fairly substantial Norfolk Pine which had been felled and sliced into rounds ranging in thickness from 20 to 50 cm. There seemed to be hundreds of them and my guess is that there was about a tonne of wood. Very gummy wood it was too, and many of the rounds seemed irretrievably glued to the one below by the resin seeping from each. Armed with safety goggles, ear defenders and a sun hat, we commenced the labour. I have a new respect for those who split logs the old way with axes and wedges. Many of the somewhat knotty rounds were at the extreme end of the splitter's 20 or 30Tonne capacity, but despite the heavy work of lifting them onto the splitting platform, the hydraulic ram made short work of the once stately tree. It took us about 4 hours to reduce the pile to neatly stacked, if somewhat wet firewood. Today, I am creaking, somewhat bruised, slower than normal but feeling good about the satisfaction of being able to help some good friends. And I am very thankful for the warm and clean supply of gas that means I don't have to do this sort of thing for myself! ---- 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 from R Woodbury. Many thanks again. ---- On with the News. (I have decided not to try to catch up with the missing weeks, so just the most recent news, and hopefully normal service will now resume) Monday, 2 March 2009 ~~~~~~~~~~~~~~~~~~~~ CER WITH AUSTRALIA TO BE EXPANDED --------------------------------- The Australian and New Zealand Governments are planning to expand the Closer Economic Relations agreement to combat the global recession. Prime Ministers Kevin Rudd and John Key have been holding talks in Sydney today, with the economy featuring strongly. Both leaders have agreed for the two countries to boost investment by reducing compliance costs for businesses, and reducing regulatory barriers. Mr Rudd says both he and Mr Key want to accelerate the Closer Economic Relationship between Australia and New Zealand. He says worldwide it is the model free trade agreement, but it can be improved. Mr Rudd says any obstacles remaining in the investment fields will be "punched through". He says it is a recession which neither Australia or New Zealand caused, but its impact washes over both countries. Mr Key says the relationship between the two countries has never been stronger. He says there is tremendous goodwill on both sides to ensure there is the strongest possible relationship to deal with the challenges. Mr Key has presented Mr Rudd with a cheque for $2 million to help rebuild devastated parts of Victoria. The money was raised in a Red Cross appeal in the weeks after the bushfires, which has claimed at least 210 lives. Mr Rudd has told Mr Key he is deeply appreciative of the support New Zealand has offered. New Zealand police are sending a second Disaster Victim Identification team to Victoria. The three-person team will relieve the six staff who have been in Australia for the past three weeks working in areas worst hit by the bushfires, around Kinglake and Marysville. The new team will work alongside four police victim recovery dogs and their handlers and includes a fingerprint specialist. Two forensic dentists from New Zealand are also helping with the grim task in Victoria. FUNDING BOOST FOR KIWIRAIL -------------------------- The Government has announced it is spending $115 million on KiwiRail, in a bid to create new jobs. It has allocated $75 million to buying 20 new locomotives from China, which will be used on freight routes around New Zealand. The other $40 million will be used to build new carriages for the TranzScenic passenger routes. They will replace the older carriages, some of which are up to 70-years-old. The construction will take place at KiwiRail's Dunedin workshop, with the Government expecting it to provide employment for hundreds of workers. SEEM TOO GOOD TO BE TRUE? IT PROBABLY IS... ------------------------------------------- The Commerce Commission is warning people about fake goods being sold on Trade Me. It has issued 70 warnings about the sale of counterfeit clothing and footwear after a complaint from the website. Fair Trading Branch director Adrian Sparrow says selling counterfeit goods harms both the consumer and legitimate business. He says shoppers need to be cautious because it is an increasing trend where people risk breaching the Fair Trading Act. Trade Me spokesman Mike O'Donnell says the recession will increase the economic motivation for people to attempt monetary gain by selling counterfeit goods. He says phishing attempts, where hackers try to get peoples personal and financial information via email, will also shoot up. Mr O'Donnell says there needs to be greater co-operation between compliance agencies to help put online scammers in jail. The warnings come as Consumer Affairs Minister Heather Roy has launched Fraud Awareness Week, to raise awareness of scams. She says given the economy, consumers can ill afford to lose money to fraudsters, through email scams or door-to-door salespeople. Mrs Roy says people need to be extra vigilant about being ripped off. She says the majority of scams in New Zealand originate offshore, and once money is sent overseas, it is virtually impossible to recover. (Trade-Me is NZ's home grown and very successful domestic e- Bay equivalent - BH) GDP MAY SHRINK FURTHER THAN FORECAST ------------------------------------ Treasury has issued a warning that the economy could end up in a worse situation than it has previously predicted. In its Monthly Economic Indicators report, officials say there is now a real risk economic growth will be even less than it had predicted in its downside scenario published last December. Treasury was forecasting GDP to shrink by 0.2 percent this year and 0.3 percent next year. The report says the outlook for both the world and New Zealand economies continued to deteriorate in February. MASCOT FINANCE CALLS IN RECEIVERS --------------------------------- Mascot Finance has called in the receivers, becoming the first finance company with the Government's retail deposit guarantee to be placed in receivership. The trustee for Mascot Finance has frozen $70 million worth of investments, after concluding it is unlikely to recover a major loan. Receivers say they will prepare and send investors a report on their initial findings as soon as possible. All eligible investors are covered by the Government's deposit guarantee scheme. WARNINGS ABOUT COLD MEDICINES ----------------------------- Warning labels will be put on some over-the-counter cough and cold medicines this winter, after research in the UK cast them in an unfavourable light. A review of 69 medicines by the British government's health watchdog has found some cause serious side effects in young children, including allergic reactions and hallucinations. Dr Stuart Jessamine from the Ministry of Health's drug regulatory arm Medsafe says New Zealand authorities will be contacting the group to get a copy of the report and its findings will be acted upon. He says New Zealand authorities were moving in that direction and the British findings will speed things along. Dr Jessamine says the British review does not surprise Medsafe and other studies in the US and Canada back up the findings. LITTLE ELECTED TO LABOUR PRESIDENCY ----------------------------------- Engineering, Printing and Manufacturing Union president Andrew Little has been elected unopposed as Labour's new president. He replaces Mike Williams. Mr Little will continue to continue to head the union while carrying out his duties for Labour. NZ$ HEADING SOUTH AGAIN ----------------------- Heightened global uncertainty is being blamed for the falling New Zealand dollar. In the past few days, the kiwi has been having a rocky ride around the 50 US cent mark and is now trading at 49.85 cents. Mike Houlahan, the director of Tuatara Management, says there is general uncertainty around the world with US shares being a little weaker on Friday night. He says the American government's decision to put more money into Citibank has heightened people's awareness of risk so the kiwi dollar been pushed down slightly. Mr Houlahan says the situation appears to be more of a squeeze down in the currency, rather than the mad panic sell off that was seen late last year. He says it is a good development for exporters who help New Zealand pay its way in the world. (Suddenly, buying books from Amazon, or anything from anyone offshore just got a whole lot harder. - BH) NO LOSERS WITH TRIAL PERIOD SAYS BUSINESS ----------------------------------------- Businesses are getting behind the 90 day probationary period for new workers, saying it will now be much easier to take on staff. The voluntary law came into effect yesterday and allows an employer to sack a worker within 90 days if they are not up to the job. Unions and the Labour Party are calling the move shortsighted and say workers will be unfairly sacked. David Kiddey, from Business Hutt Valley, says it is possible a small minority may abuse the law, but on the whole the move is positive for all concerned. "Even in cases where it is abused, it still means that somebody is getting a trial. So the intent of it is a non-threatening way to bring on new staff." Mr Kiddey is confident the legislation will create new jobs. However, Labour is disputing that. MP Trevor Mallard doubts it will allow small to medium-sized businesses the chance to hire more staff with a lot more confidence. He believes it will not create a single job, as people will be hired for 89 days before being fired. Mr Mallard says the law is a short-sighted attempt by the Government to address the economic downturn. COMPUTER SYSTEM FOR TOLL ROAD CHAOTIC ------------------------------------- Firefighters say updates to their multi-million dollar computer system to include the new Northern Gateway Toll Road have made the situation worse. The Professional Firefighters Union had been complaining that there is no plan in place for the new stretch of road north of Auckland, which runs between Orewa and Puhoi. That has since been addressed, but the union says alterations to the Computer Aided Dispatch System have been rushed through and are wrong. It says the new road has been labelled as State Highway 17 and the Hibiscus Coast Highway is still being called State Highway 1, which will come as to a surprise to Transit New Zealand and local residents. The union's Auckland president, Jeff McCulloch says Communications Centre staff have also discovered the toll road has four different plans attached to it and none of them match. "This means that depending on which plan is used, will depend which fire engine responds and which station it will come from." Mr McCulloch says the South Eastern Motorway suffers similar problems with staff having to guess which appliances to send in an emergency. UNION SETS UP HELP LINE FOR "HIRE AND FIRE" LAW ----------------------------------------------- The Government is brushing off criticism of the 90 day probationary period for new workers, arguing it will actually lead to small businesses hiring new staff. The controversial voluntary employment law which applies to businesses employing fewer than 20 staff came into effect yesterday, amid heavy opposition from Labour and the unions. But Minister of Labour, Kate Wilkinson, says a lot of the opposition is scaremongering, as any unscrupulous behaviour by employers or new workers will not be tolerated. She says under the law, businesses can have the confidence to take on new employees and allow them to prove themselves. Ms Wilkinson says the probationary period is only voluntary and can only be implemented if both employer and worker agree to it. However, the Council of Trade Unions is launching an 0800 help line today for workers who may be unfairly sacked under new law, which has been dubbed the "hire and fire" legislation. President Helen Kelly says as the law will not protect new workers in small firms, the CTU will have to. She says the phone line offer is also open to non-union members because the CTU will not sit by and let people be treated unfairly. Ms Kelly says free advice and assistance will be offered to anyone who is sacked or face the threat of being sacked under the new legislation. The freephone number is 0800 1UNION (0800 186 466). Tuesday, 3 March 2009 ~~~~~~~~~~~~~~~~~~~~~ JOBS SOUGHT FOR SEALORD WORKERS ------------------------------- Potential job cuts at Sealord's Nelson plant could force changes to the region's labour market. The company says its plant is not efficient and needs to reduce costs by around $2 million. It is consulting with staff over its proposal to cut jobs and reduce wages. Up to 180 land-based processing jobs are on the chopping block, while 50 processing jobs would be created processing at sea in a new trawler. Nelson deputy mayor Rachel Reese says Nelson may see a change over the next few years. "We've been very dependent on an overseas labour pool for our seasonal labour and it may be that some of these people will be able to find some employment in those sort of roles." Ms Reese says local businesses are still doing well despite the economic downturn and they may be able to take on staff. Minister of Social Development Paula Bennett says support is being offered to Sealord employees by Work and Income staff, who will help them find other jobs in the region. ACC SHORTFALL SHOULD HAVE BEEN DISCLOSED ---------------------------------------- An official investigation has found the underfunding of ACC accounts should have been disclosed before last year's election. The ministerial inquiry was conducted into why $1.5 billion worth of shortfalls were not specified in last year's pre-election fiscal update. It found Public Finance Act requirements are clear and the fiscal risk to the Crown should have been disclosed. The report recommends updating processes for ACC's account baselines and reviewing and amending current rules used by Treasury to identify fiscal risks. Labour claims the report puts it in the clear. Former ACC Minister Maryan Street says it finds officials did not provide the right advice to either her or Finance Minister Michael Cullen. "We were being taken to the cleaners by the National Government on a completely false basis. What the report shows is that Treasury will be cleaning up its processes in order to make sure that this doesn't happen again." Ms Street is concerned neither she, nor Dr Cullen, were asked to give evidence to the inquiry. XTRA FINED FOR BREACHING FAIR TRADING ACT ----------------------------------------- Xtra has been fined $45,000 for breaching the Fair Trading Act. The Telecom internet provider must also pay $10,000 in costs after being convicted on three charges of misrepresenting its pricing. Xtra told one customer the Commerce Commission had tested its billing systems. Another was told she could not access her account from another provider's connection because of a decision by a Telecommunications Commission. A third was told Xtra's pricing was in line with Commerce Commission guidelines. All three statements are false. The offences took place between September 2005 and November 2006. (While I am pleased that these instances of misconduct are getting their just reward, I know that there other instances and other perpetrators. For many of the commercial organizations I have dealt with in recent times, the term "help desk" is an oxymoron. - BH) GOVT TO FILL $15 MILLION DUNEDIN STADIUM SHORTFALL -------------------------------------------------- The Government has agreed to fill a $15 million shortfall to build Dunedin's new stadium. The announcement has come at this morning's extraordinary meeting of the Otago Regional Council. (I am, as they say, "gobsmacked" - BH) POLICY HOLDERS ADVISED NOT TO PANIC ----------------------------------- AIG policy holders are being warned against a knee jerk reaction to the US government's latest bailout of the insurance and financial giant. AIG Finance has posted a record $US61.7 billion quarterly loss. The US government has promised the company another $30 billion, adding to the $150 billion bailout it provided last year. AIG CEO, Ed Liddy, says he cannot guarantee it will be the last bailout for the company, but insists it is necessary. "I don't know if we're in a second innings, or the seventh innings or the ninth innings but there's going to come a point in time when this thing bottoms out and things begin to get better. AIG will be well- served when that happens." The US Treasury says the bailout will stabilise AIG and help prevent further collapses in the wider financial market. Robert Oddy, the managing director of International Financial Planners says New Zealanders with money in AIG should avoid changing companies, unless the new company is prepared to take on all of their pre-existing terms. "I think it's very easy to make changes when news filters through that appears to be unpleasant. It pays to seek advice from your insurance broker or your insurance planner or your financial planner before making any changes." Mr Oddy says people need to remember that when they switch insurance companies, there are various differences between the policy terms and conditions. UNION LAMENTS WORK BEING SENT OFFSHORE -------------------------------------- Unions are criticising the Government for sending potential jobs and money to China but admit they are currently too busy to take on much more work. Forty million dollars has been allocated from the existing budget for the building of new carriages on the TranzScenic passenger routes. Another $75 million will be borrowed to pay for 20 freight locomotives from China. Wayne Buston from the Rail and Maritime Transport Union says while he is disappointed money is going offshore, New Zealand's workshops are already quite busy. "There will be no jobs in jeopardy as a result of the decision. It's just unfortunate we can't grow the workforce and build them onshore. The delivery times would have been quite challenging." Mr Buston says there is still a long way to go to build up a world class rail system in New Zealand. (The notion that we can protect our labour force from international competition is, in my view, ultimately self destructive. If we stop buying from them, they and others have an excuse not to buy from us. - BH) GOVT STANDING BY DEPOSIT GUARANTEE SCHEME ----------------------------------------- The Government is standing by the Retail Deposit Guarantee Scheme, although it is questioning whether the latest finance company to collapse should have been allowed into the scheme at all. The deposit scheme was introduced by the Labour Government in October and South Island property investor Mascot Finance is the first financial institution to trigger it. The company has called in the receivers and has frozen $70 million worth of investments to 2,558 investors after concluding it is unlikely to recover a major loan. Treasury Secretary John Whitehead has told investors that they are likely to get their money back. Finance Minister Bill English says he will be discussing ways to avoid the taxpayer having to pick up such liabilities, but the Government will stand by the guarantee scheme to ensure that depositors can have confidence in their investments. Mr English says the deposit guarantee scheme was introduced in a hurry in response to a similar move in Australia. "We'll be keeping an eye on how the policy around the guarantee can be improved because we want to protect taxpayers against liabilities from finance companies and banks that aren't well run." Mr English says the scheme is not perfect and the Government is reviewing whether changes need to be made. LATEST REPORT ON ECONOMY NOT SO GLOOMY -------------------------------------- A new report finds New Zealand will undergo a gradual climb out of recession. In its March 2009 Quarterly Predictions, the New Zealand Institute of Economic Research believes official figures will confirm the economy contracted by 1.5 per cent in the year to March with a weak outlook. It says annual growth will move slowly into positive territory over the next four years. It predicts that by March 2010, annual growth will be 1.1 percent (or 0.2 percent growth in real GDP per capita) before slowly improving to around three percent by 2013. It picks unemployment will pass six percent by this time next year and to remain around that level until mid 2012. It says after the tight labour market of recent years, firms are looking for more flexible ways to manage lower labour needs without losing workers who were difficult to find until recently. "Government policy, as demonstrated by the Jobs Summit, is also turning to encouraging and incentivising firms to retain workers as much as practically possible. ?Over the coming year, we expect some hoarding of labour, such as through reducing hours worked, to limit the number of jobs firms have to cut. Firms will seek to avoid the significant search costs incurred in attracting quality staff back once economic activity starts to pick up again later this year." It says that if the economic outlook worsens further, firms may have to shed labour as they did in the 1991 recession, when unemployment reached 10.9 percent. But it believes the current recession is not yet forecast to be as deep and long and the likelihood of unemployment moving into double figures is still extremely low. However the NZIER says with further deterioration in the domestic and global economic outlook over the last few months, the current recession is more severe than the 1998 recession. ?We expect the 2008 recession to have spilled into the first quarter of 2009. In annual terms, we forecast economic growth to reach its lowest point in the year ending March 2009. We forecast annual average growth in real GDP of -1.5% in the year to March 2009 ? the lowest since the end of 1991. The main factors reducing economic activity are falls in private consumption, investment and net exports.? The report says dairy export volumes will start to recover over the next year after last season's drought. "Economic growth in our trading partners is expected to strengthen over the course of 2010, underpinned by substantial fiscal stimulus packages. This will increase their demand for our exports. ?We emphasise that this will be a long, slow grind back to economic normality. Full recovery will take some time ? around four years for the New Zealand economy to return to over 3% annual growth. We forecast annual average growth in real GDP of 1.1% in the year to March 2010, 2.8% in each of the March 2011 and 2012 years, and 3.0% in the March 2013 year.? The NZIER's survey is not as extreme as one put out last month by the New Zealand Institute, which suggested that unemployment could reach 11 percent. Wednesday, 4 March 2009 ~~~~~~~~~~~~~~~~~~~~~~~ SPENDING IN SUPERMARKETS INCREASES ---------------------------------- Supermarkets are at the top of the food chain during the recession. Paymark figures show food spending was up 6.9 percent in volume and 6.6 percent in value compared with the same month in 2008. Simon Tong from Paymark says consumers are spending less on dining out, furniture, appliances and travel. "People are focusing on the basics, which is food in particular. That continues to be an area where there's strong growth." Mr Tong says people are using credit cards less, and Eftpos more. PACIFIC BRANDS PLANS TO CLOSE NZ FACTORIES ------------------------------------------ Pacific Brands is planning to close two New Zealand factories. The clothing manufacturer last week announced it would close its Australian factories and move production to Asia, sacking more than 1,800 Australian workers. It has now told New Zealand staff it plans to sell its plant in Palmerston North as a going concern, and close its sock factory in Christchurch, impacting around 98 workers in total. Pacific Brands says it is seeking feedback from staff before any changes take place. FORESHORE AND SEABED LAW TO BE REVIEWED --------------------------------------- The Maori Party says its people will be "dancing on tables" following the news the Government will review the foreshore and seabed law. The party shared a podium with Prime Minister John Key to announce a review panel, which will be headed by High Court judge Eddie Durie. The panel will report to the Government by June. Mr Key says people have nothing to fear from the review. He says the fundamental right to have access to the country's beaches will be preserved even if the law is changed. The review was part of the deal struck with the Maori Party in its support of the National-led Government. When co- leader Pita Sharples was asked whether he would accept it if the review panel came back saying the act is working, he joked he would "probably sack them". Labour leader Phil Goff says any changes to the legislation would cause division between Maori and Pakeha. He says there is a degree of certainty under the current law, and the status quo should remain. CHANGES FOR ACC AFTER LIABILITIES REVEALED ------------------------------------------ The Accident Compensation Corporation is insolvent with liabilities of more than $21 billion, more than double the organisation's worth. If the costs were passed on to the consumer, the worker's levy would go from 1.4 percent to 4 percent and the levy of registering motor vehicles would increase from $255 to $585. ACC Minister Nick Smith says levy increases of that magnitude will not happen, but changes will. Privatisation is being ruled out, at this stage. Most of the ACC board is expected to be replaced. ACC will not be as "generous" in the future, in ways such as covering the full costs of physiotherapy. (As I understand it, the ACC was always designed to be insolvent by normal standards, and has never been otherwise. - BH) MINISTER BACKS MOB EVICTIONS ---------------------------- Housing Minister Phil Heatley is backing the move to evict Mongrel Mob members from state houses in the Lower Hutt suburb of Pomare. Housing New Zealand has announced tenancies are being terminated in five households in Pomare, following allegations the tenants were involved in intimidation and standover tactics. Last month gang members forced a mother and her two young children to flee their home, before ransacking the property. Mr Heatley says a few state house tenants have been terrorising communities, knowing their victims would never complain or given evidence against them. He says peaceful and respectful behaviour is expected, and those who blatantly disregard the rules risk losing the opportunity of living in a state house. "We can't put up with that sort of behaviour". It gives Housing New Zealand a bad name, it puts members of the street under pressure and we're just not going to put up with it. Mr Heatley says Housing New Zealand has assured him tenancy terminations will only occur in extreme circumstances when decisive action is necessary. NZ'S BEST CHEESE FOUND ---------------------- More than 400 cheeses have been tasted to find the country's best. The Champions of Cheese Awards were held in Auckland last night. Mercer Cheese's extra mature gouda with cumin won the Champion of Champions Award and Over the Moon Dairy Company's Galactic Gold won the Artisan Cheese category. Master Judge Neil Willman says the Galactic Gold entry had cheese-appeal, which is very much like sex-appeal for people. He says it has a creamy unctuous texture, with an attractive rind and a superb yet complex flavour. Mr Willman says there is an art to tasting a winning entry. Judges call themselves the spitters club as they sniff and chew each entry before spitting it out. The full list of winners for 2009: Yealands Estate Champion of Champions Award Mercer Extra Mature with Cumin - Mercer Cheese Cuisine Champion Artisan Cheese Galactic Gold - Over the Moon Dairy Company SKYCITY Champion Fresh Unripened Cheese Puhoi Valley Creme Fraiche - Puhoi Valley Cheese Foodtown Woolworths Champion Feta Cheese Salt of The Earth - Crescent Dairy Goats Innovative Packaging Champion Soft White Rind Kaimai Double Cream Camembert - Kaimai Cheese Company SABATO Champion Goat Cheese Aroha Rich Plain - Aroha Organic Goat Cheese NZSCA Champion Sheep Cheese Curio Bay Pecorino - Blue River Dairy Products New World Champion Washed Rind Cheese Galactic Gold - Over the Moon Dairy Company Ecolab Champion Blue Cheese Te Mata Creamy Blue - Te Mata Cheese Company Hally Labels Champion Cheddar Kapiti Tuteremoana Cheddar - Fonterra Brands NZ NZSCA Champion European Style Cheese Kapiti Karu - Fonterra Brands NZ NZSCA Champion Dutch Style Cheese Mercer Extra Mature with Cumin - Mercer Cheese NZ Food Safety Authority Champion New Cheese Rawhide - Neudorf Dairy Fonterra Champion Original NZ Cheese Old Gold - Crescent Dairy Goats NZSCA Champion Flavoured Cheese Aroha Cumin - Aroha Organic Goat Cheese NZSCA Champion Export Cheese Kapiti Kikorangi - Fonterra Brands NZ New World Champion Favourite Cheese Bouton D'or Cow Feta - Goodman Fielder NZSCA Champion Cheese Packaging Whitestone Cheese Tin - Whitestone Cheese Curds & Whey Champion Hobbyist Cheese Cumin Gouda Katherine Mowbray Champion Hobbyist Cheesemaker Kyle Brennan NZ Cheese School Champion Cheesemaker Albert Alferink - Mercer Cheese KIWIFRUIT GROWERS HOPING FOR REDUCED TARIFFS -------------------------------------------- A free trade agreement with Korea could return several million more dollars a year to Kiwifruit growers. South Korean President Lee Myung-Bak has met with Prime Minister John Key in Auckland where an FTA was discussed. Around 24,000 tonnes of fruit was exported to Korea last year, bringing in $100 million for the Zespri brand but Korea's current tariff on the vitamin-C rich fruit is the highest worldwide at 45 percent, translating to a cost of $33.3 million each year, or $8,000 per grower. Zespri chairman John Loughlin says a free trade agreement would secure New Zealand's premium position in the Korean market during the off-season. He says Zespri has invested heavily in the Korean market over the past six years and has earned a reputation as a responsible marketer of quality fruit. But he says there is still competition from Chile, which has a free trade agreement resulting in its tariffs reducing to zero by 2014. He says that makes the tariff issue even more crucial for New Zealand. "ZESPRI has a superior quality product and marketing and service support, but unless we are able to remove the tariff our ability to service this market becomes unsustainable. With a free trade agreement of our own, New Zealand kiwifruit can compete on a level playing field and win in the market on the basis of our premium quality fruit.? The announcement of negotiations between New Zealand and Korea follows last week's signing of an FTA between the South East Asian Nations, Australia and New Zealand (AANZFTA). Mr Loughlin says tariff reductions resulting from the agreement will make markets such as Indonesia, Malaysia, Vietnam and the Philippines even more attractive and will deliver increases in net returns to the New Zealand kiwifruit industry. Thursday, 5 March 2009 ~~~~~~~~~~~~~~~~~~~~~~ BOOZE PRICE INCREASES WORRY HOSPITALITY --------------------------------------- Hospitality operators are concerned higher alcohol prices will put them between a rock and a hard place. The Hospitality Association says DB, Lion Nathan and Independent Liquor are putting prices up between two and seven percent this month. Chief executive Bruce Robertson says hospitality operators are already feeling the squeeze and are reluctant to pass price increases on to consumers. "But if they don't, that puts what could be marginal businesses even more marginal - which could cost business - and certainly cost jobs." Mr Robertson says liquor companies should have waited till June to put up prices to coincide with annual alcohol tax increases. "We certainly would have liked the producers to tighten their belts a little over the next three or four months." TVNZ ORDERED TO RETURN A PROFIT ------------------------------- The Government has told TVNZ it has to return a profit this year, regardless of the economic slump. The state broadcaster is looking at making savings of $25 million as advertising revenue takes a dive. Broadcasting Minister Jonathan Coleman says the board and the chief executive have assured him they can make the savings, while maintaining standards. Dr Coleman says the Government is not going to help TVNZ's financial performance by suddenly relieving the discipline of having to return a dividend. DAMNING REPORT INTO IMMIGRATION'S PACIFIC DIVISION -------------------------------------------------- The Pacific Division may be absorbed back into Immigration New Zealand after a damning report into its leadership. Immigration Minister Jonathan Coleman says he has received a report on the performance of the division conducted by Ernst and Young. The report was initiated after serious concerns were raised about its practices, and the performance of its former manager Mary-Anne Thompson. Dr Coleman says the review paints a damning picture of a poorly performing service. "The report detailed serious concerns about divisional leadership that lacked accountability and transparency, failed to observe proper process and created a fiefdom mentality." Dr Coleman says the report highlights major concerns around financial procedures, accountability and transparency. He says the division has not served Pacific people well. The Immigration Minister has asked the head of immigration to consider reintegrating the Pacific Division back into the core of Immigration New Zealand. FAMILIES' PATHS TO DEBT PROBED ------------------------------ Families are being asked how and why they are getting into debt in a Families Commission research programme. The commission is working alongside the Salvation Army, Budgeting Advisory Services and the Retirement Commission. Families Commission head Jan Pryor says the research will have a strong focus on financial literacy and debt management. She says it is important frontline organisations are aware of the problems families have accessing financial information and help. "Our intention is to help frontline services to be accessible to families, particularly around areas of budgeting, information and advice - and before families get to a crisis point." Dr Pryor says the information will be passed on to groups which work directly with families. "For example, we may find that families find that credit documents are very difficult to understand, so we would be suggesting that they are made more clear." Dr Pryor expects the research to be completed in the next few months. GOVT ACCUSED OF BREAKING PRE-ELECTION PROMISE --------------------------------------------- The Government is being accused of breaking its pre-election promise not to cut staff in the public sector. Labour Party tertiary education spokeswoman Maryan Street is up in arms at news the Tertiary Education Commission is cutting 70 jobs in restructuring. She says it makes a mockery of National's promise it would cap but not reduce job numbers in the public service. Tertiary Education Minister Anne Tolley is not commenting on the issue. Her staff are declining interview requests, directing all inquiries to the Tertiary Education Commission. HOUSING MARKET LOOKING SLIGHTLY BRIGHTER ---------------------------------------- Confidence in the Auckland housing market appears to be slowly returning with more buyers and sellers entering the market. Barfoot & Thompson sold 559 homes in February, an 8.9 percent increase in sales on January. The average price was $512,535, a 3.5 percent rise on the price being achieved in February last year. It is the first time in four years that February sales have been higher than in the proceeding January. Sellers also re-entered the market, with Barfoot & Thompson listing 1470 new homes, up 50.8 percent on those listed in January. While down 28.3 percent on those listed for sale in the same month last year, February 2008's listings were the highest in any month for more than two years. Managing Director Peter Thompson says buyers and sellers are cautiously re-entering the market and there is cause to have some optimism that the housing market is settling. ?While sales volumes remain modest to those achieved in the past decade, the encouraging news from a home owner's perspective is that values are holding, and in February at least have edged up." He says lower interest rates, awareness of the low number of residential building permits being granted and the general growth of the Auckland region are all contributing factors to the modest turn around. More than half of all the homes sold in February (53.7 percent) sold above $500,000, while 63 homes sold above $750,000 (46 in January) and 30 homes sold above $1million (15). Rental demand remained strong, with 786 houses and units let during February, only five rentals lower than in January, which is traditionally the most active month and 10.1 percent higher than in February last year. The company says average rentals at $380 a week are consistent with the rents being achieved in January, and in February last year. NZERS TO FLOCK TO AUCKLAND -------------------------- More New Zealanders want to become Aucklanders, according to a draft plan for the region's transport systems. The study by Auckland's Regional Transport Authority estimates another 600,000 people will move to the area over the next 25 years and the city will swell to some two million people by the year 2036. Chief executive Fergus Gammie says massive upgrades and planning ahead is needed to cope with that many people. The suggested projects are estimated to cost around $22 billion over the next three decades. Mr Gammie says the report includes a number of big ticket items, such as a replacement for the Harbour Bridge, a rail link between the CBD, Manukau and the airport and the extension of State Highway 20. (Good grief! Why, for heaven's sake? - BH) CREDIT RATING WARNING PROMPTS GOVT ---------------------------------- The Government says it is working towards cutting its spending amid concerns the country's credit rating is about to be downgraded. Credit ratings agency Standard & Poor's has warned New Zealand's sovereign AA plus rating is at risk of a downgrade if fiscal imbalances are not addressed. It has lowered New Zealand's foreign currency rating outlook to negative from stable in January partly because of a current account deficit of 8.6 percent of GDP. Finance Minister Bill English agrees that the fiscal balances need to addressed. He says the Government is working hard to control spending and work out a long term strategy, so that debt does not skyrocket. Mr English says the Government has every intention of avoiding a credit rating downgrade. PHYSIOS DENY MILKING ACC ------------------------ Physiotherapists are hitting back at suggestions they are doing very nicely out of the Accident Compensation Corporation. ACC has liabilities of almost $22 billion, sparking calls for a radical overhaul of the system. Minister Nick Smith says ACC will not be as generous in the future. Free physiotherapy could be one of the first entitlements to go. But physiotherapists say the crisis in ACC investments is no reason to short-change physio patients. Jonathan Warren, the president of the Society of Physiotherapists says funding physiotherapy for injured people is not generosity but saves money, as physio treatment gets people back to work, play and normal life as soon as possible. Mr Warren says an independent review has shown physiotherapists themselves are subsidising a good part of the costs of ACC treatments, which is a problem that is making many businesses unsustainable. He says if they are made to bear even more costs, workforce shortages will get worse. GOVT SADDLED WITH KIWIRAIL -------------------------- The Finance Minister believes the Government has no option but to hold on to KiwiRail, because no one would want to buy it. Bill English has been questioned in Parliament about whether the Government would still own the rail operator in five years. He says KiwiRail has negative value, given the former Labour Government paid almost a billion dollars for it, which was far too much. Mr English says the business will have to be kept running because no one in their right mind would be willing to pay anything like what the taxpayer put into it. Labour's Trevor Mallard questioned the Government buying 20 new locomotives from China. He claims Malaysia bought 20 of the same model locomotives eight years ago and only five are still operating. JOBS SUMMIT BEING HELD AS FACTORY SET TO CLOSE ---------------------------------------------- Palmerston North's mayor plans to hold a regional jobs summit, as 52 people prepare to lose their jobs with the closure of Pacific Brands local textile factory. A further 46 jobs in Christchurch will be axed when the clothing manufacturer moves all its operations to China. In Australia, 1850 jobs are going. Mayor Jono Naylor says the meeting will focus on small and medium sized businesses to see what can be done to help them weather the storm. He says it is a joint operation with the local economic development agency and the Ministry of Social Development. The New Zealand factories make the Canterbury brand of socks and other hosiery. ANTI-GANG PATCH LAW MOVING THROUGH PARLIAMENT --------------------------------------------- The proposal to have gang patches banned in Wanganui now looks certain to pass into law. MPs have voted 64 to 58 in favour of the Gang Insignia Bill. Labour, which originally supported the idea, backed down and opposed it, however National received the support of ACT to allow the Gang Insignia Bill to pass through. The law would prohibit gang members wearing any patches on the streets of Wanganui. The bill has two final readings before it comes into effect. Green MP Metiria Turei is among those to oppose the plan, saying it will not stop gang violence. She says not only will it be ineffective, but it will also be a significant breach of citizens' rights. Ms Turei says ordinary citizens will suffer if the ban goes ahead. But ACT MP David Garrett says the law will make sure intimidating tattoos are covered up. Friday, 6 March 2009 ~~~~~~~~~~~~~~~~~~~~ EQUALITY IN THE WORKPLACE INCREASES ----------------------------------- The gender gap appears to be closing. This year's MasterCard index shows New Zealand women are catching up with men in socioeconomic standing. The MasterCard Worldwide Index of Women's Advancement gives a score which shows how close women are to achieving socioeconomic parity with men. A score under 100 means gender inequality in favour of men and a score above 100 shows gender inequality in favour of women. The score of New Zealand women jumped to 90.5 from 80.0 last year, putting them third in the Asia-Pacific region. New Zealand women came in behind Australian women who got 96.1 and Thai women with 91.5. NEW WELLINGTON HOSPITAL OFFICIALLY OPENED ----------------------------------------- Wellington's new regional hospital has been opened today, ten years after its designs were drawn up. The $285 million Newtown facility has been officially opened by Governor General Anand Satyanand. Hospital staff expect 20,000 people to tour the hospital on the public open day on Sunday. They will have a once in a lifetime opportunity to have a look at the new intensive care unit, theatres, radiology and other wards before the hospital becomes fully operational. Displays, mannequins and brand new equipment will show what the hospital will look like when it is up and running. Capital and Coast District Health Board Chairman Sir John Anderson says the new building is a state of the art facility which is purpose-built and designed. CEO Ken Whelan made light of the debt hanging over the hospital's head. But Minister of Health Tony Ryall says the budget blow-out of tens of millions of dollars, is a very real problem. "The National Party's criticism was how the whole building project went in terms of well over budget and the cost that's going to put on future demands on the health service. But look, today's a great day for the staff - the new ultramodern hospital is there." Mr Ryall says the hospital has been built with fewer beds than the old one, which will be a very real challenge going ahead. It will be April 3 before the hospital is in full use. ACC LOSS MORE THAN THOUGHT -------------------------- ACC's financial position is continuing to worsen. Government financial statements reveal for the seven months ending in January, ACC recorded a loss of $3.1 billion. That is $700 million more than figures reported just a month ago. According to the report, ACC's investments have suffered losses of $252 million and it has also recorded a $3.1 billion loss in the valuation of its outstanding claims liability. The Government's financial problems are also worsening faster than previous predictions. Gross sovereign issued debt figures have blown out by over $15 billion. It now stands at over $45 billion, or more than 25 percent of GDP, far worse than the $30 billion sum originally forecast. Higher than forecast derivative liabilities, strong demand for Treasury bills, and increased Reserve Bank bill issues are being cited as contributing to the GSID numbers. MAORI ECONOMIC FORUM UNDERWAY ----------------------------- The organisers of today's Maori Economic Forum hope all New Zealanders will have a chance to participate. The Hui Taumata Trust is organising the forum in Wellington. Executive manager Shaan Stevens says the forum will address business, employment and water issues facing Maori. Delegates include Maori business leaders and corporate leaders, government department heads and Maori representatives. Communities in Hamilton and Mahia will be linked in live to the forum. He says the trust is very keen the meeting is not just a meeting of people in Wellington, but the entire country. Mr Stevens believes the discussion will be exceptionally important for Maori development. He says there is no monopoly on good ideas and that they can come from anywhere in society. RURAL SECTOR LIKELY TO SUFFER THE MOST -------------------------------------- Business New Zealand believes the recession is only just starting to bite and rural areas are likely to suffer the most. Thousands of jobs have been cut around the country, with Wellsford's largest employer one of the latest to lay off staff. From April, 105 people living in the town north of Auckland will not have a job at Irwin Industrial Tools. Nelson is also reeling from around 240 redundancies at fishery company Sealord and Nelson Pine Industry. Australian-based Pacific Brands which makes the Canterbury brand of socks, is closing its Christchurch plant and selling its Palmerston North clothing factory. The redundancies come only a week after the Government held a Jobs Summit in Auckland to devise ways for companies to retain staff during the economic downturn. One of the initiatives was a plan for a nine day working fortnight. Business New Zealand Chief executive Phil O'Reilly says there are more unsettled times to come, as New Zealand is starting from historically low levels of unemployment. The latest quarter shows 4.6 percent of people are unemployed. Rural towns are expected to be the worst hit and Mr O'Reilly says there needs to be a strong focus on making sure people living out of the main centres have jobs. "If I lose a job in South Auckland and I've got some skills, the chances are much better that I'll be able to walk down the road, even in tougher times and find a job. If I lose my job in Oamaru or Wellsford, it's much harder." Mr O'Reilly says the Government needs to look at what people with low and no skills will do if they lose their job. GOVT ACCUSED OF MEDDLING WITH AID PROG -------------------------------------- Labour says the axing of a $1.95 million aid programme in the Pacific will hurt hundreds of village communities. List MP Phil Twyford says Foreign Minister Murray McCully has cut the aid programme ahead of a plan to disestablish the Government's development agency, NZAID. He says it spells an end to New Zealand's focus on eliminating poverty throughout the Pacific. Mr Twyford claims it is an unprecedented level of ministerial meddling in the aid programme. Prime Minister John Key says the Government is reviewing the way aid is delivered, to ensure it is hitting the mark. SUBSCRIBE OR UNSUBSCRIBE ~~~~~~~~~~~~~~~~~~~~~~~~ Brian Harmer does NOT administer the mailing list. Please do not send subscription related messages to him. Instead, visit the website listed below, where you can make changes as required. If you want to send a personal message to Brian, change the country code to nz and send a message brian.har...@vuw.ac.xx If you do choose to comment on something in these posts, please don't send the whole newsletter with your message. Just trim it back to the relevant bits. Thanks. Brian. _______________________________________________ WYSIWYG News mailing list News@wysiwygnews.com If you wish to unsubscribe, please visit http://wysiwygnews.com/mailman/listinfo/news Mailing List services provided by OneSquared <http://www.onesquared.net/>
