Subject: 31 May, 2009 ----- WYSIWYG NEWS ------------------------------ Copyright, Brian Harmer.
Somehow, the week seems to have lasted much longer than the seven days which defined it on the calendar. Mostly wet and windy weather didn't help, despite a weak solution of diluted sunshine and near calm on Friday. This Monday is a public holiday (the date for the official observance of the Queen's Birthday, which is actually 21 April), so the sense of anticipation of a long weekend added to the enjoyment of the day. For the first time in almost two weeks I was able to fit a good walk in at lunchtime, and on that front, all was well. My afternoon was scheduled to conclude with supervisory sessions with two research students down at Rutherford House near the railway station. Mary and I had tickets to an early evening concert with the New Zealand Symphony Orchestra playing at the old Town Hall concert chamber. We are not late eaters, so we wanted a quick meal before the concert. Trying to fit everything in between the last appointment and the start of the programme was problematic. Mary decided it would be practical for her to come into town on the Airport Flyer bus, and since that stops literally outside the window of the office I use on Fridays, I could meet her there and we could find a quick bite and walk up to the Town Hall. And so it came to pass. We settled on "Sakura", a very nice Japanese restaurant on Featherston St. Other possibilities had included a cluster of pubs, restaurants and wine bars in the same area, but at 5 pm at the end of the working week, they were all abuzz with the "thank God it's Friday" crowd, all elbowing up to the bar and jostling and loud. Sakura, by contrast, is a positive haven of tranquillity. Beautiful elegant simple Japanese décor, formalised courtesy of a kind rarely experienced elsewhere, and soft string music playing in the background. We explained our need for speed, and though it was outside the normal pattern for their restaurant, they provided some appropriate options. A pleasant glass of wine as we waited added to our enjoyment and helped us to break out of the slightly rushed mindset. The food was beautifully presented by young ladies in wonderful kimonos. The presence of Japanese clients at other tables gave some reassurance of authenticity. And so we ate, paid, and moved on. (Note to self: must revisit without doing so under pressure next time.) Darkness had fallen, and in this early part of winter, the temperature was dropping rapidly, so we had a brisk walk up Featherston St., past the lighted bars which were by now really humming. At the top we turned onto Lambton Quay, and Willis St, through the refurbished Chews Lane precinct where more bars and restaurants were in action, onto Victoria St, and through Civic Square to the Town Hall. Acoustically, the concert chamber in the old Town Hall is said to be superior to the newer Michael Fowler Centre, but the sightlines are much less useful. There are very few seats in the MFC that don't afford a view of the entire stage. The concert chamber's angles, on the other hand, tend to let you see the front row of the orchestra if you are in the stalls, or if you are on the left or right of the balcony, you get to see one half or the other, of the orchestra. To get the full impact, the best seats seemed to be those in the centre of the balcony. The concert was not fully sold out, though nearly so, and the audience was younger, and more diverse, and much less formally dressed than I usually see at NZSO concerts. This particular concert was sponsored in part by Victoria University (not that they told us anything about it at work, or offered any special deals), and fittingly for the end of "New Zealand Music Month" was a programme consisting entirely of works by New Zealand Composers, all of whom had studied or worked at Victoria University. I note that my friend and long time WYSIWYG reader and sponsor, Charles Eggen would have enjoyed this concert, containing as it did, two works by Douglas Lilburn, and one by Jack Body. If memory serves, Charles actually met Douglas Lilburn during a visit he made to NZ in the early 90s. The first work was Lilburn's "Landfall in Unknown Seas". This is a lovely piece designed to frame Alan Curnow's poem of the same name. The subject matter is Tasman's arrival and disastrous first contact with Maori in Golden bay. In a stroke of casting genius, the concert organizers engaged Bill Manhire to read the poetry. Bill is a treasure, the founder and organiser of Victoria's celebrated creative writing course, and a gifted poet and writer in his own right. As you would expect, his delivery was magnificent, as was the orchestra's performance, and the reward was a suitably enthusiastic acclamation. The next piece was by Lissa Meridan, and was entitled "A quiet Fury for Orchestra and Live Electronics". As something of a traditionalist, with a fondness for what young folks rudely describe as the music of "dead white guys", I have mixed feelings about electro acoustic music. However, I enjoyed this piece, despite the oddities of the sounds used to make the music. This was very well received by the young fellows in the row ahead of us, who came dressed in hoodies, and carrying their skateboards! After the interval, Lilburn was reintroduced. This time it was "Three Poems of the Sea" and in this work, the music was played as the poet recited the poems over it. "Sir Patrick Spens" (trad), Ariels Song (Shakespeare), and "A Changeling" (Curnow) were the poems. It seems to me a difficult thing to recite poetry in time with the playing of an orchestra, yet it was done flawlessly by Professor Manhire. Just wonderful stuff. The final item in the formal program was Jack Body's "My Name is Mok Bhon" which reflects upon a photographic exhibition from one of the notorious prisons of the murderous Pol Pot regime in Cambodia. Hard to imagine that musical beauty can emerge from such a sombre theme, yet it did, along with the haunting images of the murdered victims of the camp. There followed a discussion between the conductor and one or other of the electro acoustic experts present, and having no special interest in talking about such things (as opposed to listening to the music) we left. A brisk walk through the now very chilly evening along Jervois Quay and back to the car parked at the law school brought the evening to a satisfactory conclusion. All in all, it was a pleasant outing. I am certain Charles would have enjoyed it. A brief note to mourn the passing of a former colleague of mine - Alvin Clement (Lt.Col. ret) who died last week at the relatively young age of 66. Alvin served this country with distinction as a soldier in West Malaysia, Borneo and Vietnam, and later went on to become one of the first graduates of Otago University's MBA program. I worked with Alvin for some years at the New Zealand Dairy Board where he encouraged me to pursue my own MBA, albeit with some good natured teasing as to the relative merits of our respective universities. Alvin leaves a daughter and two sons to whom I extend my sympathy. See you next week. ---- Any text above this point, and all subsequent material in parentheses, and concluded with the initials "BH" is the personal opinion of Brian Harmer as editor of this newsletter, or occasionally "GS" will indicate an opinion from our editorial assistant. In all cases they are honest expressions of personal opinion, and are not presented as fact. All news items (except where noted otherwise) are reproduced by kind permission of copyright owner, Newstalk ZB News. All copyright in the news items reproduced remains the property of The Radio Network Limited. *Sponsorship this week is courtesy of Noel Vietmeyer in Lorton, VA. Many thanks, Noel. ---- On with the News. Monday, 25 May 2009 ~~~~~~~~~~~~~~~~~~~ "SMALL SURPRISES" IN BUDGET - JOHN KEY -------------------------------------- Prime Minister John Key says the country can expect small surprises in this week's Budget. The Government is due to outline its fiscal plans on Thursday. Future deficits and the possibility of a credit downgrade remain central to the Governments concerns. Mr Key says there will not be any huge surprises in the Budget and believes its content has been reasonably well forecast. He says it will have interesting aspects, predicting plans for home insulation support and the levels of savings found might surprise some people. (People's willingness to be surprised, even in the face of overwhelming evidence of impending change is always - well, surprising. - BH) THOUSANDS MARCH UP QUEEN ST --------------------------- Auckland's central business district has come to a standstill. Undeterred by heavy rain, thousands of protestors are marching up Queen St, with most calling for special Maori-only seats on the super city council. Taiaha are being thrown in the air, while haka and songs are being performed, interspersed with chants of "move aside Rodney Hide, give us back our Maori pride," and "when Treaty rights are under attack, stand back, fight back." Tino Rangatiratanga flags are scattered among banners with slogans such as "it's not about race, but rights." The Public Service Association is also taking part in the protest, calling for no redundancies for council workers. There are also a number of protestors calling for the super city plan to be scrapped altogether. Shops and office buildings are empty as people spill out to watch. NEW CHEESE GETS PAST YOUR EYES ------------------------------ Something to look forward to for cheese makers and cheese lovers. Locally-made UN-pasteurised milk cheeses may soon be available in New Zealand under new rules proposed by the Food Safety Authority. Spokesman Scott Crerar says there are inconsistencies in the law that need to be addressed. He says some raw milk cheeses made overseas can be imported while domestic manufacturers cannot make their own equivalent products. But Mr Crerar says it is important for customers to know that un-pasteurised milk products can pose a higher food safety risk than traditional pasteurised products. (Why is it that sub-editors are suckers for horrible puns? - BH) DRAMATIC DROP IN CRIME ---------------------- An Auckland shopping district is boasting a 22 percent drop in theft from people, cars and shops since CCTV cameras were installed a year ago. Newmarket Business Association spokesman, Cameron Brewer says prior to their installation, civil libertarians claimed the cameras would not make a difference. But he says the result has been fantastic, with other districts around the country wanting to emulate the model. Mr Brewer says a retired police officer monitors the cameras from inside the local police station, and is in constant radio contact with a security guard on the street. Tuesday, 26 May 2009 ~~~~~~~~~~~~~~~~~~~~ PROFIT JUMP FOR TRUSTPOWER -------------------------- TrustPower has posted an after tax surplus of almost $119 million for the year ended March. It is an increase of 28 percent on the previous financial year. Operating expenses increased 11 percent, but operating revenue was up 15 percent. Directors have announced a total dividend pay out of 33 cents per share for the 2009 financial year, compared with 30 cents in 2008. (What great timing! A week after the revelation that all the major power suppliers have engaged in price gouging, the week of a fairly tough budget, and with job losses escalating, they announce an increase in profits. - BH) GOVT SLAMS BRAKES ON BOY RACERS ------------------------------- Prime Minister John Key has announced two new laws are being put before Parliament to toughen up penalties and give local bodies more power to curb illegal street racing. Mr Key says the public has had enough and wants strong action. "As a last resort, some people's vehicles could be crushed. There will be tougher penalties for those who breach the law and more vehicles are likely to be impounded." Mr Key says the new law could see those who run up big fines having their cars seized and sold to pay them. If they are convicted of three offences within four years their car can be sent to the crusher, after all the bells and whistles have been removed for sale to pay their fines. Police Minister Judith Collins hopes the racers will think twice before screeching through urban streets. She says the message is that every new offence will now bring them closer to the crusher. The laws will be in place by December. (As far as I can see, the boy racers have not moved their collective feet towards the brake pedal whatsoever. My opinion, and that of many commentators, is that the announcements are akin to the chest hammering of the bull gorilla. The rest of the herd are, as usual, unimpressed. - BH) HOMES TO BE DEMOLISHED FOR ROTORUA ROAD --------------------------------------- A number of Rotorua residents have been left devastated after hearing news their homes will be destroyed to build a new four lane road. An independent commissioner has given the Rotorua District Council the go ahead to construct the Victoria St Arterial Route. Around 36 homes are directly impacted, with many to be demolished. Rotorua Mayor Kevin Winters says the decision allows the council to make progress with plans to revitalise the CBD. He says it is great news for traffic safety, the local economy and downtown retail and commercial operations. EXTRA PROTECTION FOR COMMUTERS ------------------------------ Rail passengers in the capital are receiving extra protection. Community police officers have now been trained up to patrol the city's commuter trains. Inspector Michael Hill says the purpose is to improve their visibility and accessibility, and target particular train services where they've had problems in the past. He says their presence should also provide reassurance for commuters on these dark winter nights. (Hmm... I would have thought that a more urgent need on Trans- Metro trains was a bunch of people handing out blankets and hot water bottles to compensate for the decrepitude and failed heating in the aging rolling stock. - BH) CALL FOR MAORI TO UNDERSTAND DEMOCRACY -------------------------------------- Local government minister Rodney Hide remains unmoved by the supercity hikoi but admits it was an impressive turnout. The ACT MP says it did not change his mind over reserving special seats for Maori in any future Supercity set up. He has told Maori Party MP Hone Harawira his people need to have more confidence in themselves, instead of saying they can not succeed in local government, unless they are "given" seats. Rodney Hide asks why Maori do not put as much effort into standing for local government as they put into organising a hikoi, because that is the way a democracy works. But Hone Harawira says Maori do not like to vote under that sort of structure. He says Maori only like to vote for things that have a Maori focus and vision. The issue still has to go before a select committee at Parliament before any decision is made NEW HEAD OF ELECTORAL COMMISSION -------------------------------- A former tax man is to be the new boss of the Electoral Commission. David Henry, who headed IRD from 1988 to 1995, has just been appointed as chief executive. His appointment is for one year and he replaces Dr Helena Catt who has stepped down after five years in the role. David Henry has ample prior electoral experience - he was also the Chief Electoral Officer between 2000 and 2006 VETS NEED TO CHANGE HABITS -------------------------- It is hoped new research can be used to help veterinarians avoid chronic back pain. A Massey University study of more than 850 vets has found 96 percent have bad backs. They reported jobs like pregnancy testing of cows, foot trimming and animal surgery are all back-aching tasks. Researcher Andrew Scuffman says breaking bad lifting and posture habits could be part of a solution. He says vets would need to re- look at how they undertake tasks with a view to reducing the risk. Mr Scuffman says the research paves the way to improve health and safety outcomes for vets. COWS CLAM UP IN THE COLD ------------------------ This month's unseasonably cold weather is affecting milk production but consumers are being told not to worry about any rise in price. Normally most dairy farmers begin to wind down production in June due to a lack of grass growth and feed. However this month, those same farmers have noticed a drop in production already Federated Farmers dairy chairman Lachlan McKenzie says it has simply been too cold for any grass growth and cows have been unable to produce. He says it will affect production but not for the domestic market. NATIONAL WARMS TO STATE FUNDING ------------------------------- After previously opposing state funding for political parties, it seems National is now approaching the idea in a new light. The proposal is included in a discussion paper on electoral reform released last week by the government. Prime Minister John Key says he is open to the idea, but says it would be quite a big step to take further advances in state funding as there are already elements of it when it comes to paying for party campaign advertising. He says the paper is wide-ranging and it would not have been credible if state funding of political parties had not been included. Wednesday, 27 May 2009 ~~~~~~~~~~~~~~~~~~~~~~ GOVT ACCUSED OF LYING ABOUT TAX CUTS ------------------------------------ The Prime Minister has all but confirmed the Budget's most open secret, that the tax cuts he promised for next year and the year after will be canned. Replying to claims that he personally guaranteed the tax cuts, Mr Key says circumstances have changed significantly since the election. He says the Government has to deal with the dynamic conditions it faces. Finance Minister Bill English told Parliament a tax strategy will not be a theme in tomorrow's Budget. Labour Party Finance spokesman David Cunliffe says National lied to the public about tax cuts and kept doing so after it was clear they weren't affordable. He says the crime was in promising them after the IMF said the world was going to "heck in a handbasket" and after firm Lehman Brothers hit the wall. Mr Cunliffe says at least his party had the honesty and integrity to prune back its package before the election, when it assessed the economic situation. (All the shock-horror posturing about the "broken promises" is mere partisan politics in my opinion. The fact is that the money is not there to do as originally intended, and it would be economic lunacy to borrow money to fund these cuts. - BH) LAW SOCIETY OPPOSES THREE STRIKES BILL -------------------------------------- A warning from the New Zealand Law Society that an important part of the legal system could be curtailed if three strikes legislation becomes law. MPs are hearing submissions on the ACT bill, which would impose mandatory 25 year prison terms on people convicted of a third serious offence. Law Society spokesman Jonathan Krebs says a principal reason for their opposition to the bill is the way it would erode the judicial discretion of the courts. He says an important part of current court processes is the fact judges are independent and can make decisions based on a wide range of discretionary factors - and the three strikes bill would limit that. Mr Krebs says it is likely the law will be used on exactly zero occasions over the next 10 years, so the society cannot see the need for it. ACT MP David Garrett says if that is the case then he cannot see why the Law Society is so afraid of the legislation. Mr Krebs says it is because it is a bad law. ENVIRONMENT MINISTRY APPROVES UPGRADE ------------------------------------- The Ministry for the Environment has given initial approval to Transpower's upgrade of the upper North Island power grid. Transpower is proposing to build a new overhead electricity transmission line, underground cables and substations between Whakamaru, Otahuhu and Pakuranga. The Environment Ministry's Board of Enquiry has put out its draft decision and report on the upgrade today. The board says allowing the upgrade would promote sustainable management of natural and physical resources more than saying no to it. Transpower, the nine impacted councils, the Minister for the Environment and those who have already made submissions have until June 24 to make comments on the draft decision and report. (I think the battle is over. Continued opposition may prove costly, as the courts have often awarded costs against people who are deemed to have made unreasonable appeals. - BH) REDUCED FONTERRA PAYOUT FORECAST -------------------------------- Fonterra has announced a reduced forecast payout for the 2009/10 season. It is estimating it will be $4.55 per kg of milk solids, down from this season's pay out of $5.20 a kg, and a far cry from the record $7.90 a kg farmers received last year. The price reflects the low international dairy commodity prices and is based on the New Zealand dollar buying 59 US cents. Chairman Henry van der Heyden says the volatile currency and international uncertainty make forecasting extremely difficult. In view of farmers? tight cash flows, the board has decided to bring forward this year's value return payment for the 2008/09 season. It will now be dished out in August. CHINESE BUYING INTO F&P APPLIANCES ---------------------------------- A cornerstone stake in Fisher & Paykel Appliances is going to the Chinese. China-based appliance manufacture Haier is buying a 20 percent stake for 46 million dollars. F&P Appliances has posted a massive $95 million loss. In February, the firm warned the market it was in trouble, blaming one-off restructuring and the global recession's impacts on sales. Fisher & Paykel Appliances says in addition it plans to rise a minimum of $189 million through the issue of new shares. It has also agreed with its banks to increase its debt to $575 million. NZ TAKES IT TO DOHA ------------------- New Zealand is among countries trying to drum up support to reach an anti-protectionism deal soon in the World Trade Organisation's long running Doha round. The nation is one of 13 states signed up to a document along those lines. The document has appeared as negotiators talk of a growing improvement in political conditions for a new trade deal, even if the economic crisis looks set to increase protectionist policies. Technical work is quietly continuing on areas from agriculture and industrial goods to fisheries and trade and environment. It is hoped the improved political mood will see a way out of the repeated impasses in negotiations that have seen ministerial meetings collapse three years in a row. UNIONS WANT JOB CREATION ------------------------ Trade unionists hope the Budget will deliver a major boost to schemes which will create jobs and develop skills. The Government is due to outline its fiscal plans tomorrow and future deficits and the possibility of a credit downgrade remain central to the Governments concerns. But Council of Trade Unions secretary Peter Conway wants to see a Budget which is less about credit agencies and more about helping people who are facing unemployment. He says they would most like to see investment in skills and job creation, including home insulation and Task Force Green. Mr Conway says in the context of a global recession, New Zealand needs a Budget which invests in people and the future. LABOUR TALKS GROWTH NOT CUTS ---------------------------- The Government is being urged to ignore credit rating agencies and present tomorrow's Budget on its own terms. Concerns about the Budget process have been raised given staff from ratings agency Standard and Poor's are meeting with the Finance Minister this week. The Government is under the threat of a credit downgrade if it does not address forecast debt levels. The Labour Party's catch cry ahead of tomorrow's Budget is growth not cuts. As a result of ongoing line by line reviews of departmental spending the Government is promising some significant cutbacks. But Labour leader Phil Goff says the Government has to be focussed on creating jobs. He says there are two ways you can balance a budget; one is by slashing and burning, the other is by investing constructively in growth and innovation. Phil Goff says regrettably the Government is adopting slash and burn and he hopes it sees the error of its ways. 500 WORKERS TO LOSE JOBS ------------------------ Five hundred workers' jobs are on the line after the failure of two companies linked to a billion dollar Queenstown development. The companies involved in stage one of the Kawarau Falls Station in Queenstown have been taken over by receivers. Stage one includes the Westin and Quadrant Hotels and adjoining apartments on Lake Wakatipu. Receiver Brendon Gibson says workers will know in two weeks whether they will keep their jobs. He will work with contractors and other parties involved in the development to decide whether it will continue. Construction has not started on stages two and three. Brendon Gibson says those stages are subject to separate arrangements and financiers. HOME INSULATION AFFORDABILITY? ------------------------------ It is thought many homeowners will not be able to access a home insulation subsidy because they can't afford the initial cost outlay. The government is expected to announce a plan in the Budget to spend more than 300-million dollars over four years on subsidies for private home insulation. It is believed the subsidy would equate to two-thirds of the cost of the insulation work. Mangere Budgeting and Family Support Services chief executive Darryl Evans says it is not a bad idea but the number of working families accessing budget services is huge. He is questioning how many of those families could afford the initial cost outlay to access the scheme in the first place. Mr Evans says the scheme's uptake might be greater if homeowners could get an interest-free loan for the insulation work. He says he would also like to see particular incentives to encourage landlords to insulate their rental properties. (As I write, there is hail bouncing on the ground outside my window. The house is warm, with both gas and electrical heating, but at some cost. I may have to explore this. - BH) Thursday, 28 May 2009 ~~~~~~~~~~~~~~~~~~~~~ CREDIT RATING REMAINS AT AA+ ---------------------------- Finance Minister Bill English says he would have been be surprised if there had been a downgrade in New Zealand's credit rating as a result of today's Budget. Credit agency Standard & Poor's has taken the Government off negative watch averting the chance of increased Government borrowing costs. The rating remains at AA+. Mr English says he has delivered a considered Budget, during the worst economic conditions since the 1930s. He says it was important New Zealand avoided a downgrade. ASB Chief Economist Nick Tuffley says it is one piece of good news that come out of today's announcement. "We've had Standard & Poor's put us back from negative credit watch back onto a stable outlook for our credit rating. So that does look like the risk of a downgrade has been reduced quite a bit." Mr Tuffley says the other rating agency Moody's is also comfortable with New Zealand rating. BUDGET "LIES AND DECEPTION" --------------------------- Today's Budget is being dismissed as lies and deception by Labour. Among the announcements are confirmation that tax cuts planned for next year and 2011 have been cancelled. The cuts are the biggest causality the Budget, as the government trims new spending, amid growing deficits and increasing unemployment numbers. Labour leader Phil Goff says the Budget fails to deliver on the promises made by Prime Minister John Key on the election campaign. "This is a dishonest Budget. The tax cuts personally guaranteed by John Key dishonestly to win an election - they're gone." Finance Minister Bill English says the cancellation of the tax cuts will save the government $900 million a year by 2011. He says no one could anticipate the depth of the global recession when the tax policy was released before the election. "We've been forced by the depth of that recession to make some trade-offs. We've implemented half of our tax programme. We could have implemented the second half by borrowing a lot more money, or by cutting entitlements and public services." Mr Goff maintains the Budget does nothing for jobs or rising unemployment. He is also ripping into the Government's decision to suspend contributions to the Superannuation Fund for over a decade. "What this means is that that Government won't face up to its responsibility for the future that those baby boomers over there are bound to be bludging off Generation X and Y." Mr Goff says National has broken the cross-party accord on superannuation and is selling short future generations. (Mr Goff's speech after the budget was a regrettable playing out of the expected rituals, and given the numbers in the house, the moving of motions to reject the budget were just a fatuous waste of the house's time. - BH) MOVES TOWARDS FASTER BROADBAND FUNDED ------------------------------------- The Government will kick-start its plans for faster broadband with a $290 million injection for the next financial year. Over the next 10 years the Government is planning to spend a total of $1.5 billion on the roll out of ultra fast broadband to businesses, schools, hospitals and 75 percent of homes. It expect the investment will be at least matched by the private sector. The first allocation of $290 million will be split the following way: $200 million capital for infrastructure investment $34 million for making schools broadband-ready $8 million of operating spending (including $6 million for the Crown Fibre Investment Company) The Government says in addition to the $1.5 billion broadband proposal, rural areas will benefit from a $48 million investment in broadband infrastructure. BUDGET FUNDS MORE DOCTORS ------------------------- Funding to train more doctors and more training for health professionals in rural areas are included in the Budget's health plan. Health Minister Tony Ryall says despite the worsening economic situation, the Government has allocated more than 40 percent of all new Government funding for Budget 2009 to health priorities. An additional $3 billion will be put into the sector over the next four years, including $750 million in 2009/10. Sixty new medical training places will be funded in 2009/10, which is the first step of the Government's intention to establish 200 new places annually. Twenty-five extra places will be allocated for general practitioner training in 2009/10, increasing to 50 extra places per year. Up to 800 additional health professionals will be funded over four years to increase services for patients needing elective surgery; $4 million over four years will go towards training for health professionals in rural areas. "New Zealand has the highest percentage of foreign trained doctors of any OECD country (36 percent) and is also the biggest exporter of doctors (29 percent). The increase in medical undergraduate places, combined with the voluntary bonding scheme, will help build our own capacity at home," says Mr Ryall. District Health Boards will received $2.1 billion extra for services to their local populations. Included in the initiative to boosting funding for subsided medicines, $46.9 million will go towards funding Herceptin and associated costs. $89.5 million over four years will be spent on improving quality and supervision in aged residential care facilities and respite care for those being cared for by others at home. The Government says that to meet the increased maternity service needs, there is additional funding of $103.5 million over four years. The funding will allow longer stays in birthing facilities and support services for parents in the form of $14 million for an around-the-clock Plunketline telephone advice service. Other health funding includes: $60 million over four years for hospice and palliative care. $100 million over four years as a contribution to Energy for the New Zealand Insulation Fund. $37.2 million over four years to help to securely care and rehabilitate offenders with an intellectual disability outside of the criminal justice system. $245 million over four years into capital infrastructure. $15.3 million over two years starting in 2011/12 into voluntary bonding for hard to staff health professions and locations. BUDGET ALLOCATES FUNDING FOR TEACHER PAY RISES ---------------------------------------------- Pay rises for teachers and other school staff have been earmarked in the Budget. The Government has allocated $1.68 billion to improving frontline education services in the current year and over the next four years. The package includes $523.3 million in operating and capital funding to support a 21st Century School Building Programme to expand and future-proof existing schools and build new ones. An extra $80.1 million will go towards day-to-day school operations, $36 million to support the Crusade for Literacy and Numeracy; $16 million to fight truancy and $34 million to improve schools access to high-speed broadband. Additional funding will go towards improving the education of students with special needs and behavioural issues, including $8 million to help manage disruptive pupils. The package will provide $69.7 million for improving access to early childhood education (ECE) by expanding 20 hours ECE to playcentres and kohanga reo and removing the six-hour daily limit. Education Minister Anne Tolley says $169.1 million in 2009/2010 will go towards pay increases for teachers; $70 million over four years to cover salary increases for school caretakers, cleaners and ground staff; and $127 million to inflation-adjust funding for tertiary institutions from 2010. Ms Tolley says that of the $1.34 billion operating and $339.6 million in capital spending allocated to education in this Budget between 2008/09 and 2012/13, $661.8 million has been funded through careful reprioritisation of the previous Government's plans. ?Our focus has been on getting maximum value for education dollars. Savings have been achieved by reducing the amount of money tied up in the bureaucracy, reducing expenditure in lower-value areas such as community education hobby courses and postponing some initiatives until economic conditions improve." INSULATION AND CLEAN HEATING GRANTS ANNOUNCED --------------------------------------------- The Government's Budget includes grants for insulation and clean heating in more than 180,000 homes. It allocates $323.3 million over four years for a campaign to fit homes with insulation and clean heating devices, such as heat pumps and approved wood burners. The Government says the goal is to see up to 60,500 homes insulated each year by 2012/13. Government grants of up to $1,800 will be available for houses built before 2000 that require ceiling and under floor insulation or a clean heating device, regardless of income. Energy and Resources Minister Gerry Brownlee says a large number of houses are cold and damp because they are inadequately insulated. He says the scheme is an important step towards warmer homes as well as invigorating the retrofit industry. "It will generate jobs for New Zealanders involved in producing and installing insulation and clean heating," says Mr Brownlee. The scheme will start on July 1. BUDGET CONFIRMS TAX CUTS CANCELLED ---------------------------------- The tax cuts planned for next year and 2011 have been cancelled as the economic outlook worsens. Finance Minister Bill English has presented his first Budget under the new government, dubbing it the 'Road to Recovery.' The planned future tax cuts are the biggest casualty, with Mr English saying the Government's revenue strategy has had to be re- evaluated in light of the contracting economy and growing debt. The cancellation of the tax cuts will save the Government around $900 million a year by 2011. While maintaining the superannuation payment of 66 percent of the average wage, the Government will suspend automatic contributions to the New Zealand Superannuation Fund. The payments will not restart again until at least 2020. A $323 million plan to insulate up to 180,000 homes has been unveiled and will see a Government subsidy of $1,800 made available to some homeowners. Spending on health will increase by $3 billion over the next four years, spending on education will increase $1.68 billion and there will be extra funds available for 600 new police officers. The operating deficit is expected to rise from $7.7 billion this year, to $9.3 billion by next year. Unemployment, which currently stands at five percent, is forecast by Treasury to rise to eight percent by September next year, which will equate to 179,000 people without jobs. The worst case scenario is an unemployment rate of 9.5 percent. New spending for this Budget totals $1.45 billion, half of the average over the last five years. As the economy worsens, Mr English says the new spending allowance for next year's Budget will be capped at just $1.1 billion. He says the line-by-line departmental reviews have freed up $2 billion over the next four years and that will be put into Government priorities of boosting frontline services. CASINO'S SUCCESSFUL CAPITAL RAISING ----------------------------------- Sky City Entertainment's $35 million share purchase plan and top up offer have closed over subscribed. Applications totalling $87.5 million were received for the purchase plan and $10.1 million for the top up allowing the company to raise the maximum amount of $43 million. The total amount when added to the recent equity placement to institutions, is $228.3 million. Applications under the SPP are will be scaled back on a pro-rata basis. CEO Nigel Morrison, says the company is very pleased with the support and endorsement received from shareholders. He says the capital raisings mean that Sky City continues to be in a strong financial position and is well placed to take advantage of future opportunities. Sky City Entertainment shares are trading one cent lower at $2.84. PPP FOR AUCK TRAINS "NO FREE LUNCH" ----------------------------------- The head of the Auckland Regional Council is panning a proposal that the private sector could invest in electrifying the city's rail network. Transport Minister Steven Joyce has been looking at public private partnerships in Australia and believes the model could be used in Auckland. But Mike Lee, chairman of the Auckland Regional Council, says the concept has already been looked at in every which way. He says the problem is that private companies have to make a profit, which would be paid for by the ratepayer, taxpayer and train users. Mr Lee says perhaps it is the case that the minister has a magic formula but in his experience, there is no such thing as a free lunch. He is also suspicious about the timing of the announcement and suspects it might be intended to soften the blow if there is no money for electrification in the budget. Mr Lee says following the government's move to scrap a regional fuel tax, the past few months have been a series of disappointments on Auckland's public transport front. His main concern at this point is that the project to electrify the region's rail network will face further delays. (Just in case it wasn't clear, PPP stands for Public/Private Partnerships - BH) ACC DOWNPLAYS STAFF LAY OFFS ---------------------------- The Accident Compensation Corporation is downplaying its intention to lay off 70 staff, emphasising instead the creation of 100 positions on the frontline, as part of restructuring. Chief Executive Jan White says the proposed changes have been prompted by the need to ensure efficiency and will affect 180 positions, however many of the people affected will be moved into new roles. ACC has also removed 150 contractor roles mainly because of a $150 million IT project coming to an end. Dr White says the proposed changes have been prompted by the need to ensure efficiency and by the completion of some programmes. FARMERS NOT HAPPY ABOUT FONTERRA'S FOCUS ---------------------------------------- Federated Farmers is accusing Fonterra of losing its focus. The dairy giant has announced an opening forecast pay out of $4.55 per kilogram of milk solids for the 2009/2010 season, down on this season's pay out of $5.20 and a massive drop from the record $7.90 farmers received last year. Federated Farmers dairy chairman Lachlan McKenzie claims Fonterra is focussing too much on its capital structure. "It's got to make sure it doesn't take its eye off the core business of maximising the value of goods back to New Zealand and of keeping cost structures at a minimum level." Mr McKenzie says dairy farmers are in for a hard time in the short term and a massive increase in on-farm costs imposed by central and local government in recent years is not helping the situation. Mr McKenzie says the way to stimulate the provincial economy is to slash the budgets of regional and district councils. However, Mr McKenzie still believes that in the long term, dairy farming is a very good industry and he hopes the reduced pay out does not discourage young people from entering the sector. MINIMUM WAGE FOR CONTRACTORS FAILS ---------------------------------- Labour's bid to get the minimum living wage paid to contractors failed in Parliament last night but not before some spirited debate. National MP Tau Henare accused Labour Parekura Horomia, who spoke in favour of the Labour Party bill, of spending too much time at McDonald's buying filet o' fish and Big Mac combos with double fries followed by a thick shake. He said the bill was nothing more than a sop to Labour's trade union mates. Mr Horomia and Labour colleague Shane Jones have been the butt of jokes since being spotted ducking into McDonalds during this week's hikoi in Auckland. Friday, 29 May 2009 ~~~~~~~~~~~~~~~~~~~ AIR NZ LOOKS TO CUT 80 JOBS --------------------------- Another 80 jobs are on the line at Air New Zealand as it looks at further cuts to its services. Air New Zealand says it will cut capacity by a further three percent for the 2010 financial year, because of falling demand as consumers tighten their belts in the face of global recession. The airline says 40 cabin crew and pilots may be impacted, as well those in around 40 airport handling roles in Auckland and Christchurch, as a result of Qantas terminating its service. JUST FOUR WEEKS FOR SUPER CITY FEEDBACK --------------------------------------- Aucklanders are to get just four weeks to have their say on legislation establishing a single council to govern the region. The special Parliamentary Select Committee set up to take feedback on the super city's proposed council, ward, and community board structure has just called for submissions. Committee chairman John Carter says the closing date for submissions will be June 26. He says submitters must focus on matters raised in the legislation as the committee will not be considering any other issues. PROMISES ARE "SMOKE AND MIRRORS" - TEACHERS ------------------------------------------- Teachers promised extra money for pay increases in the budget are describing the move as smoke and mirrors. PPTA President Kate Gainsford says Finance Minister Bill English is promoting the $169 million earmarked for teachers pay as one of the main selling points for his budget. But she says the claim is misleading, as it is not actually extra money but a hard-fought concession won during collective bargaining in 2007 and something the Government is now legally obliged to pay. Ms Gainsford says there was actually very little in the Budget for teachers and schools and the union is deeply concerned about plans to cut staff funding by $50 million in 2011. She says that will be impossible without increasing student-teacher ratios. LABOUR FRUSTRATED WITH URGENCY ------------------------------ Having to work overtime to pass Budget amendments to tax laws is not sitting well with the Labour Party. Parliament is sitting under urgency today debating legislation designed to revoke the $900 million worth of future tax cuts previously promised by the National led Government. Labour's Trevor Mallard is questioning why urgency is even needed, given the tax breaks being revoked would not have been introduced until next year anyway. He says MPs are considering legislation that is not urgent at all. (They have a point there, all the more because the legislation being repealed under urgency was itself passed under urgency with much fanfare, pretty much in the first week of the new government - BH) BUSINESS LEADER DISPUTES JOB FORECASTS -------------------------------------- The head of the Business Roundtable believes there is no reason for unemployment to reach eight percent by September next year. Treasury's forecast indicates that 179,000 people will be without work by that date. In a worst case scenario, the unemployment rate could rise as high as 9.5 percent, equating to 217,000 jobless. But Roger Kerr, head of the Business Roundtable, doubts the rate needs to get anywhere near those levels. He says if the Government addresses a faster adjustment in the economy and works on freeing up the labour market, then the country could get through the recession with the unemployment rate well below eight percent. Mr Kerr says business leaders are seeing the Budget as one that focussed on productivity and economic growth. PHARMACISTS SAY BORDER SECURITY THE PROBLEM ------------------------------------------- Gaps in New Zealand's border security are responsible for people getting their hands on the ingredients used to make P according to pharmacists. Annabel Young, Pharmacy Guild chief executive, says pharmacists are committed to social responsibility and over the counter sales of cold and flu medicines containing pseudoephedrine are declining by more than 20 percent year-on-year. The drug is also used in the manufacture of methamphetamine. Ms Young says while pharmacists are showing greater caution and are making it harder for pill shoppers to access the drug, that is not where the real problem lies. She says most of the P is being made from Chinese-imported precursors so the greater problem is the vast amount coming in over the border. Ms Young says pseudoephedrine is an effective drug for treating colds and flu and it would be a pity if pharmacies could not sell it any more. MAORI SAY FUNDING OK GIVEN THE ECONOMY -------------------------------------- The Maori Party is happy with the $120 million set aside for Maori in the Budget, which includes $22 million for Treaty claims, $20 million for education, $15 million for an aquaculture settlement, $12 million for rural housing and almost $6 million for language initiatives. Maori Party co- leader Pita Sharples says there has never been enough money available, but he is happy with what has been allocated, given the economic circumstances. WARMER HOMES A GRANT AWAY ------------------------- The Government expects 60,000 homes a year to be insulated as part of its Budget package. Over the next four years, $323 million will be spent on providing grants of $1800 for homeowners to help them afford to have their homes fitted with insulation and heat pumps. Around 180,000 homes will be included in the scheme, which will be run in conjunction with the Energy Efficiency Conservation Agency. Energy Minister Gerry Brownlee says 27,000 homes are likely to be insulated in the first year, rising to 60,000 a year by 2012. He says the scheme is an important step towards achieving warmer homes and will invigorate the retrofit industry. Mr Brownlee says people need to realise that the barriers that have been in place in warming their homes have now been taken down. There are currently 30 certified insulation providers and the Government is expecting the initiative to create several thousand new jobs. Installers will need to be licensed by the agency so that the quality of the work can be guaranteed. 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/>
