Copyright, Brian Harmer

>From Berhampore, the road slopes steadily down to Island
Bay. In days gone by, Island Bay might have been classed a
strictly "working class" suburb, but its desirability as an
address appears to be creeping upwards, to judge by the
prices in the Real Estate windows, the number of BMWs on
the street, and the expensive casual attire of the folk in
the park where my granddaughter enjoyed a play on the
swings. The main road is currently subject to many
engineering interventions with barriers and beacons, but
that doesn't seem to deter the citizenry from being out and
about on this Sunday afternoon. Of course it was a great
day in Wellington, since the All Blacks had passively
redeemed themselves by winning the tri-nations rugby
competition when South Africa denied Australia the massive
victory they needed. On top of that, the ever unpredictable
Wellington NPC team had defeated the usually reliable
Canterbury team, the sun was shining in a clear sky, and
there was just the lightest of breezes. On the seashore at
Island Bay, white surf was crashing out of a brown sea onto
the rocky protection of Tapu Teranga Island. The tiny
remnant of the once numerous fishing fleet which made this
little harbour so picturesque was tugging and heaving at
its moorings. Across to the West, the Seaward Kaikoura
ranges made a snow-covered impact against the clear pale sky.
Gulls wheeled and screeched, and families supervised kids
with nets as they prowled around the rock pools.

------
All news items (except where noted otherwise) are
reproduced by kind permission of copyright owner, IRN Ltd.
Any text above this point, and all subsequent material in
parentheses, and concluded with the initials "BH" is the
personal opinion of Brian Harmer as editor of this
newsletter, or occasionally "HH" will indicate an opinion
from Helen.
In all cases they are honest expressions of personal
opinion, and are not presented as fact.
----
This week's formatting is sponsored by Clay and Louise, to whom, many
thanks.

On with the news:

Monday, 12 August
~~~~~~~~~~~~~~~~~~

LEAGUE FAN DIES AT STADIUM
---------------------------

Condolences from the Warriors today to the family of a
league fan who died just after taking her seat in Ericsson
Stadium on Saturday night. It is thought 71 year old Joyce
Thiele suffered a heart attack just as the two teams were
taking to the field. Security and emergency staff rushed to
her aid, but could not revive her. Warriors Chief Executive
Mick Watson says while Saturday's victory over the Bulldogs
was a joyous occasion, his thoughts were for Mrs Thiele's
two children and daughter-in-law, who were also at the
stadium.

STAFF NUMBERS REDUCED
---------------------

Staff cuts in the neo-natal unit at National Women's
Hospital go into effect this evening. The Auckland District
Health Board is cutting the number of night-time neo-natal
medical practitioners from three to two. Clinical leader
David Knight says one registrar and one nurse practitioner
will staff the unit's 59 cots and when necessary, attend
deliveries. A specialist will also be on call. He says the
cut does not jeopardise safety and reflects a decrease in
the workload at the neo-natal unit. David Knight says the
new roster will be continuously reviewed to ensure it is
working.

BUILDING DESTROYED IN WINDS
---------------------------

Trees have been damaged and one building has been
completely destroyed by strong winds in southern Hawke's
Bay. Winds whipped across the Takapau Plains, reaching 120
kilometres per hour in exposed places. Constable Shane
Turner says a tree crashed through an engineer's workshop,
causing substantial damage. He says another fallen tree
blocked State Highway Two at Norsewood earlier today.
Constable Turner says conditions do not usually get quite
this bad. He says one resident, who has lived in the area
for 30 years, reckons the winds are the worst he has seen.
Conditions are reported to have now eased.

OPEN DOORS TO ZIMBABWEANS - ACT
-------------------------------

ACT is calling on the Government to give evicted Zimbabwean
families preferred migrant status in New Zealand. Nearly
3,000 farming families have been forced from their
properties by the land redistribution policies of President
Robert Mugabe. Act acting leader Ken Shirley says the
Government's migration policies are mired in political
correctness. He says the Government should be taking
advantage of the opportunity by giving the Zimbabweans
preference over other potential immigrants. He says
Zimbabwean migrants have a track record of assimilating
well into New Zealand culture and they could help build
this country. Mr Shirley says experience shows Zimbabwean
migrants work hard, speak fluent English and have a low
rate of social welfare dependency. However, the idea has
not found favour with Foreign Minister Phil Goff who says
New Zealand will not offer the Zimbabwean farmers a blanket
preferred migrant status. Mr Goff says tens of thousands of
black Zimbabweans have also been mistreated by Mugabe. He
says it is unreasonable to favour white Zimbabweans and New
Zealand simply could not accommodate all those seeking
refuge.

(I know some Zimbabweans who have become very fine
citizens, but I am distinctly uncomfortable with the idea
that they should have priority because they are more like
"us" and would fit in better than others. I think that the
people proposing this have lost track of what "us" means
now. - BH)

BUSINESS LEADERS WANT IMMIGRANTS
--------------------------------

Business leaders say less immigration means a declining
population and a threat to the economy. New Zealand First
MP Peter Brown has attacked New Zealand's current
immigration levels. He cites British MP Enoch Powell's 1968
"Rivers of Blood" speech warning that mass immigration
leads to racial violence. The controversial speech earned
Powell a damning editorial in the Times newspaper, which
called it "evil", and he was sacked from his position in
the Conservative shadow cabinet of the time. Employers and
Manufacturers Association spokesman Alasdair Thompson says
New Zealand has a skills shortage, and says the Government
is right to be aiming for 53,000 immigrants a year. He says
the reality is that we fail to reach that target, and some
years have a net outflow of people from the country.

MORE LEGAL ACTION AGAINST FLETCHERS
-----------------------------------

Another Fletcher Forests shareholder has launched legal
action to try to prevent the company's largest shareholder
from voting tomorrow on the proposed acquisition of the
Central North Island Forest. A challenge by Xylem
Investments to the right of Rubicon to vote was lodged at
the High Court in Auckland last week, but a reserved
decision released at the weekend revealed that the bid had
failed. Xylem claimed that Rubicon should not be allowed to
vote, because it would be a breach of Fletchers'
constitution. Rubicon holds a 17. 6 percent share of the
company. Now the Guinness Peat Group - which itself owns
nearly 20 percent of Rubicon - claims another Rubicon
shareholder has breached the Securities Act by failing to
give notice to Rubicon or the Stock Exchange of its
substantial security holding. The shareholder in question,
America's Perry Corporation, supports the CNIFP purchase.
GPG has asked the High Court in Auckland to order the Perry
Corp to forfeit its 17. 6 percent Rubicon shareholding and
any rights to vote. Fletcher Forests Company Secretary Paul
Gillard, admits without Rubicon's vote, the company's
position is more precarious. A bid by Fletchers to buy the
165,000 hectare forest earlier this year collapsed. Mr
Gillard says the special shareholders' meeting tomorrow
afternoon must gain 75 percent support for the $650 million
deal to go ahead. The meeting takes place at Eden Park
tomorrow afternoon at 2pm, but a result is not expected
until after 7pm, or later.

NEW ZEALAND SUFFERING DATA OVERLOAD
-----------------------------------

A lack of computer know-how is in danger of knocking New
Zealand off the so-called 'knowledge wave'. An Auckland
software company is warning that many firms are getting
bogged down by data overload. The overload is caused by
people saving everything they do on to their computer and
never deleting it, even if it is outdated, or not needed
for months. Garth Biggs, the CEO of Gen-i says workers may
not realise that their saved, but unwanted documents are
taking up expensive computer storage space. After a while,
they have so much data stored, they cannot find anything
they want without a lot of luck and a great deal of time.
He says most people do not have the ability to archive
their work properly. Gen-i has patented what is thought to
be the world's first automatic solution to data overload.
Garth Biggs says the Easi-Archive system automatically
removes old data, keeping it safe until it is needed again.
It also compresses the data, so that it takes up less space
in storage. When a document is archived from a worker's
system, it leaves a 'shortcut' behind, making it easy to
retrieve. He says the old way is very inefficient because
it can take days to access information that has been
archived by hand.

CAUCUS ELECTS CABINET MEMBERS
-----------------------------

The country's first openly gay Cabinet Minister has been
elected by the Labour caucus, alongside a minister who was
convicted of drunk driving during the Government's first
term. Chris Carter has campaigned for the advancement of
gay, lesbian and transgender rights since the early 1970s
and was instrumental in the formation of Rainbow Labour,
the Labour Party's gay, lesbian and transgender branch.
Ruth Dyson returns to Cabinet after losing her portfolio
when she was convicted of drunk-driving in 2000. The third
new member, John Tamihere, came to Parliament in the 1999
election after heading up West Auckland's Waipareira Trust
since 1991. Political editor Barry Soper says the caucus
has filled the three vacancies available and they were all
the choices of Prime Minister Helen Clark. Miss Clark says
lobbying for the positions has been fierce although,
everybody abided by her ruling that she was not to be
approached about Cabinet positions before the election. The
new chief whip is David Benson-Pope from Dunedin, while
Jill Pettis from Wanganui is his deputy. Former Chief whip
Rick Barker will get a portfolio outside of Cabinet. The
new Deputy Prime Minister, replacing Jim Anderton, is
Michael Cullen. Helen Clark says Cabinet portfolios will be
announced by Wednesday at the latest and that there is
bound to be a switch-around of several portfolios. Miss
Clark says some ministers have indicated they would like
different portfolios and their requests will be taken into
account. There were 20 contenders for the 17 Cabinet
positions but Helen Clark will not reveal who was
unsuccessful. She says she is planning another Cabinet
reshuffle in about 18 months.

(I've never understood why Harry Duynhoven, who
consistently delivers one of Labour's largest majorities is
overlooked for the role of Transport Minister. This seems
to be an abiding passion for him, and he seems to know more
than some officials. I regret the non re-allocation of
Education and Police. - BH)

FAMILY MAY LEAVE PAKISTAN
--------------------------

The New Zealand family caught up in the school shooting in
Pakistan a week ago, is still to decide whether or not to
leave the country. Six staff of the Murree Christian School
were killed, when masked gunmen attacked the compound. The
parents of three teenage children at the school, work there
for the New Zealand Church Missionary Society. Executive
Officer Michael Lawrence says the family is considering its
options. He says being on the spot, they are in the best
position to make the decision. Security at the school has
been boosted significantly since the attack while the long-
term future of the school remains in doubt. Mr Lawrence
says the school could be forced to close down, if a large
number of children are withdrawn. He says the board may
also find that some staff are not prepared to stay.

FONTERRA ISSUES ANNUAL REPORT
-----------------------------

Dairy giant Fonterra has released its Annual Report for the
year to 31 May 2002. The report details Fonterra's first
period of operation since it was created following New
Zealand's biggest corporate merger in October last year.
The report is being mailed to shareholders around the
country from today. Farmers are likely to scrutinise it
closely, after the Cooperative announced an annual loss of
$50 million. They are understood to be concerned that
Fonterra has paid out money that farmers have not earned
with last season's payout of $5. 30 per kilo of milk
solids. Dairy Farmers of New Zealand Chairman Kevin Wooding
has said, however, that in the context of a $14 billion
turnover the $50 million loss is not making him nervous.
Fonterra Chief Executive Officer, Mr Craig Norgate, says
the report is geared towards providing shareholders with an
in-depth picture of the global businesses they now have a
direct stake in. As well as the financial results, the
report details the formation of a joint venture with Nestle
in the Americas, which is expected to contribute to the
company's results from the 2004 financial year, as well as
other overseas ventures. Mr Norgate says the report will
also go into the company's ongoing focus and investment in
research & development and the environment. He says the
report highlights the rapid falls in commodity prices in
the second half of the year, and he reiterated earlier
warnings that these would have a substantial impact on
shareholder returns in the current year.

Tuesday, 13 August
~~~~~~~~~~~~~~~~~~

FRESH CHARGE IN EXTORTION CASE
-------------------------------

A fresh charge has been laid against a man accused of
trying to extort money from a Hutt Valley business man.
Thirty-two-year-old Kent Ansell has just reappeared in the
Lower Hutt District Court. An earlier charge which revealed
the name of Ansell's alleged intended victim was withdrawn
by police this afternoon. They laid a fresh charge which
simply referred to trying to extort money from a 56-year-
old man. Ansell's lawyer sought bail, saying he could
return to his New Plymouth home which would remove him from
contact with witnesses. However police opposed bail, and
Ansell has been remanded in custody to reappear in court
next week.

WOMAN JAILED ON SEX CHARGES
---------------------------

A woman convicted of selling her daughter for sex has been
jailed for 18 months. The 35-year-old Torbay woman from
Auckland's North Shore has been sentenced in the High Court
at Auckland on two counts of sexual violation by unlawful
sexual connection. The woman was found guilty in April of
allowing a male friend to perform sexual acts on her
daughter when she was between 12 and 14 years old. The man
has since disappeared and is presumed to have drowned. The
woman's lawyer, Adam Couchman, says the girl, now 15, was
not in court. But through an advocate, she relayed how
distressed she was by her mother's sentence. Adam Couchman
says it is unlikely the woman will appeal.

(I am sorry for the daughter's distress, but can't help
thinking this a totally inadequate response to the worst
kind of parental betrayal I can imagine. - BH)

RECORD WINTER HIGHS IN CANTERBURY
----------------------------------

An almost record high for August. Warm north-westerlies
fanning the east coast of the South Island pushed the
mercury up to 24.8 degrees Celsius at Waipara in North
Canterbury yesterday. New Zealand has only ever recorded
one hotter August day, at Cheviot in 1994 when the
temperature hit 29.4 degrees, one degree warmer. The North
Island record is 24.7 degrees, set at Whakatane way back in
1978. The temperature at Christchurch Airport yesterday hit
22. 2 degrees, the highest there since records began 47
years ago.

POLICE SATISFIED AT LUNDY DECISION
-----------------------------------

Palmerston North's top policeman is satisfied with the
final chapter in the Lundy double murder story. Mark
Lundy's convictions for killing his wife Christine and
daughter Amber were upheld today, and his minimum non-
parole period in prison extended from 17 years to 20 years.
Central police district commander Superintendent Mark
Lammas says he expected the convictions to stand. He says
the investigation was a difficult one, not least because of
the nature of the offending, but police were confident of
their case. The Court of Appeal says the killings were a
gross breach of trust, and the murder of Amber was the
grossest imaginable form of violence against a child.
Superintendent Lammas says the case has affected the whole
Palmerston North community. Meanwhile the tougher sentences
lobby group Sensible Sentencing says Mark Lundy should have
got mandatory life. Spokesman Garth McVicar says while the
group applauds the increase in Lundy's minimum non-parole
period from 17 years to 20 years, it believes premeditated
murder should attract an automatic complete life sentence.
He says overseas research shows that kind of sentence acts
as a deterrent overall. Mr McVicar says an increase of 3
years does not. Meanwhile the Lundy family says it does not
accept the Appeal Court's ruling. Lundy's sister Caryl
Jones says the family has concerns about the way the
investigation, trial and appeal process was conducted, and
will continue to pursue other leads. Mrs Jones says the
family has responded today as one - shocked, stunned, and
dumbfounded.

DUNNE REVEALS DETAILS OF OUSTED MP
-----------------------------------

United Future leader Peter Dunne has fronted up at a
Wellington media conference on the circumstances under
which Kelly Chal has been booted out of Parliament.
English-born and of Indian descent, Mrs Chal was elected to
Parliament on the party's list. But less than three weeks
later, she has been forced out of Parliament because she is
not a New Zealand citizen. Mr Dunne says Kelly Chal
withdrew her nomination once she discovered that she was
not eligible to be nominated for the United Future party
list. At the conference, he told reporters that Mrs Chal
had applied through Internal Affairs for citizenship but
that the application had not been processed in time. He
insists that her candidacy was put forward in good faith.
Mrs Chal told Political editor Barry Soper she was too
upset to talk publicly about what has happened at the
moment, and Peter Dunne says she is devastated. Mr Dunne
says he has advised the Chief Electoral Officer of the
situation and now Paul Adams, who lost his seat in
Parliament after the special votes were counted, will come
back into Parliament for United Future to replace Mrs Chal.
Barry Soper says he believes Mr Dunne was hoping that he
would not have to reveal the bungle to the public until
tomorrow, by which time Mrs Chal would have returned home
to Auckland and informed her family. Our political staff
say this is a blunder that has the country's Chief
Electoral Officer David Henry seeing red. He says it should
be the responsibility of the candidate to get everything
correct when they filled in the forms to become a candidate
in the first place. He says it is then up to the party
secretary to make sure all the details are up to date
before they are passed on to the Electoral Office.

SHELL DROPS PETROL PRICES
--------------------------

Shell New Zealand is reducing the price of both grades of
petrol by 3 cents per litre, effective midnight tonight.
The company says the reduction is possible thanks to the
fluctuating New Zealand currency, crude prices and market
conditions. Shell's Retail Manager Bruce Emson says this
will lead to a reduction at the pump of up to three cents
per litre in many parts of New Zealand with a new
prevailing price of 102.9 cents per litre for 91 octane,
and 107.9 cents per litre for 96 octane. Where intense
competition has already seen prices fall, motorists may not
see any adjustment to price at their local Shell outlet.

MILLION DOLLAR SALARIES 'MODEST'
-------------------------------

Auckland Chamber of Commerce says a million dollar salary
package for top staff of a world scale company is extremely
modest. The annual report of dairy giant Fonterra has
revealed that it paid nine staff more than $1 million in
the past year. Michael Barnett, Chief Executive of the
Auckland Chamber of Commerce says the company's turnover is
nearly $14 billion, making it by far New Zealand's largest
enterprise. He says the salaries paid to Fonterra
executives are modest on a world scale, but at the top end
on New Zealand standards, and show how far behind New
Zealand is getting in terms of achieving world performance
standards. He says top salaries for executives in Europe or
the United States are likely to be between five and ten
times as large as the Fonterra wage packets. Mr Barnett
says New Zealand needs more companies like Fonterra,
generating wealth and productivity, to get the economy back
up into the top group internationally.

(I just wish someone would apply these global relativites
to some other salary groups. It's increasingly difficult to
recruit international academics to New Zealand, for
example, and despite all the pleas about lifestyle, and Big
Mac Indices, the Americans in particular see a 50 reduction
in pay for the same job if they come here. End of
interview! - BH)

HOME MADE BOMB EXPLODES, INJURES TWO
------------------------------------

A man has lost an arm and another has suffered moderate
injuries after the home-made bomb police say they were
making exploded. The men, understood to be in their
thirties, are said to have been making the bomb in a van,
which was parked on the side of the road in the Waikato
town of Taupiri. Acting Senior Sergeant Bruce Davies says
one of the sticks of gelignite did not exploded and a bomb
disposal team had to be called to the scene. Huntly
detectives are investigating the incident. Bruce Davies
says police are concerned about what the men were doing
making bomb in the back of a van.

FARMERS 'REALISTIC' ABOUT THE YEAR AHEAD
----------------------------------------

Nearly 99 percent of farmers expect the agricultural
economy to get worse or remain the same in the next twelve
months. The latest AC Nielsen/Rabobank Rural Confidence
Survey reveals farmer confidence has been eroded by falling
world commodity prices and exchange rate uncertainty . In
what is the lowest outlook for over two years, just over
one percent of farmers expect the recent good times to
continue. Farmers are also increasingly braced for higher
interest rates and rising input costs. Rabobank managing
director, Bryan Inch says farmers are realistic about what
they can expect from their business after an exceptional
couple of years. However he says things are still looking
positive for most rural sectors, and there is still strong
demand for New Zealand meat, dairy and horticultural
produce. Farmers say they are planning to reduce their
investment in stock, plant and land. The next round of AC
Nielsen/Rabobank Rural Confidence Survey results will be
released in October.

UNITED FUTURE MP RULED OUT
--------------------------

United Future has lost an MP. It has been revealed Kelly
Chal does not have New Zealand citizenship and therefore
cannot become an MP. Mrs Chal's on her way back to Auckland
to tell her family the news and is said to be devastated.
She apparently didn't know citizenship was a prerequisite
of political representation. Last weekend United Future
lost its ninth MP Paul Adams after special votes were
counted. A submission by Mr Adams to a select committee ten
years ago saying aids sufferers should be labelled, caused
a stir. Mr Adams will now return to Parliament as the next
person on the party list. Mrs Chal, an Indian, holds
British citizenship. Ironically she has been working as a
career counsellor.

POLICE SAY BANK ROBBERY SUSPECT SIGHTED
----------------------------------------

Police are pleased with the response they are getting from
the public in trying to track down an Auckland bank robbery
suspect. An arrest warrant has been issued for Dean Shedden
in relation to the armed robbery of the Glenfield Kiwibank
branch in June. No-one was injured, but the offender got
away with $4,000. Detective Scott Armstrong says police
have had reports of a sighting of Shedden in west Auckland.
He says police officers around the region are working
together to bring him in.

Wednesday, 14 August
~~~~~~~~~~~~~~~~~~~~~

TRANSPORT MINISTER SPEEDS AHEAD
-------------------------------

The country's new transport minister is promising to make
things happen. Paul Swain has picked up the portfolio from
Mark Gosche who is taking on Corrections instead. Mr Swain
says it is important that the government's Transport
Strategy is introduced to Parliament before Christmas. He
says there are many things hanging in the balance waiting
for the legislation and it is time there was some action.

RIO BEVERAGES FINED $22,600
---------------------------

Auckland District Court has fined a drinks company more
than $22,000 for five breaches of the Fair Trading Act. Rio
Beverages was found guilty of making false and misleading
claims about its "Thexton's Quality Beverages" range of
products. A Commerce Commission investigation revealed
Rio's marketing of its Thexton-branded cranberry, orange,
pink grapefruit and red grape products emphasised their
health benefits. Labelling on the products highlighted the
inclusion of echinacea and its ability ". . . to assist in
warding off winter colds and flu". The Commission worked
out that people would need to drink as much as 177 litres
per day of the Thexton's beverage product to obtain any of
the health benefits of echinacea. Rio's was also fined for
having less blackcurrant juice in its beverage than claimed
on the packaging. Commerce Commission Director of Fair
Trading Deborah Battell says that more and more drinks are
packaged to look like fruit drinks but in fact contain very
low percentages of fruit juice.

COMPO INQUIRY ANNOUNCED
-----------------------

The Justice Minister has appointed a Queens Counsel to give
him independent advice on whether three Auckland girls,
jailed for a crime they did not commit, qualify for
compensation. If they meet the criteria, Kristy McDonald QC
will also decide how much they will get. Ms McDonald will
also look at the conduct of the Police and other crown
agencies which led to the wrong conviction of Tania Vini,
Lucy Akatere and McCushla Tuataha. Phil Goff says he has
asked for a decision as soon as possible, but is unsure how
long the process will take.

SORTING STUDS FROM DUDS
-----------------------

The Department of Conservation wants to sort out the studs
from the duds. DoC has enlisted the help of Canterbury
University scientists to determine the paternity of the 24
kakapo chicks which were born in the last breeding season.
The chicks will be DNA-tested to find out who their dads
are. DoC scientist, Dr Graeme Elliott, says he has a fairly
good idea which birds mated but this needs to be confirmed.
He says some of the male birds may be keen to mate but they
want to know if they are actually any good at fathering
chicks. The paternity results will be used to encourage
more pairings of fertile birds and to ensure genetic
diversity. The kakapo population increased from just 62
birds to 86 during the last breeding season. Dr Elliot says
the 24 chicks have already been radio-tagged and are now
being checked monthly, rather than every few days. The new
chicks have now left their nests, although they are
expected to stay with their mothers for a few months more
before leaving. They have also been given names including
Aroha, Blake and Doc.

SCHOOL KIDS CHARGED WITH ASSAULT
---------------------------------

Four Porirua high school students have been arrested and
charged with assault. It follows an incident at Aotea
College last week. One of the four has also been charged
with indecent assault on a boy aged under 16. They will
appear in Porirua District Court tomorrow morning. Police
say the victim, another male student, did not need medical
treatment. The assault is alleged to have happened in a
classroom during last Friday's lunch break and followed a
row between a group of students.

URBAN MAORI URGED TO ACCEPT DEAL
--------------------------------

An urban Maori advocate is urging his people to accept the
Waitangi fisheries settlement proposal. The Treaty of
Waitangi Fisheries Commission launched its settlement plan
at a hui north of Hamilton today. Former Alliance MP Willie
Jackson says it is great the commission has finally
recognised the needs of urban Maori in its proposal. He
says the commission cannot consult any more, there will
never be unanimity among Maori, and it is time for everyone
to wear the deal. The plan involves distributing quota,
assets and cash on a combination population and coastline
basis, setting up the country's largest fisheries company,
and establishing a $20 million fund for urban Maori.

CLARK QUIET ON CHAL AFFAIR
---------------------------

Prime Minister Helen Clark has refrained from criticising
United Future over the Kelly Chal affair. The prospective
MP was forced to step down from the party list yesterday,
as it turned out she was not a New Zealand citizen. She had
indicated on her candidate form that she was permanent
resident. Miss Clark says there seems to have been failures
on a personal level, party level and official level. But
she says it was a human error which will serve as a warning
to all parties. She says for a party leader to single out
United Future would be a little foolish as all parties run
similar risks all the time. Miss Clark says she will look
to raise the issue of what role electoral officials played
in the matter.

OPPOSITION SLAMS CABINET
------------------------

Opposition parties have been quick to criticise Helen
Clark's new cabinet. National says its increased size is a
slap in the face for United Future as Peter Dunne
campaigned on reducing the executive from 18. National
claims Mr Dunne now finds himself supporting the largest
and most expensive executive since the 1980sAct claims it
shows Helen Clark has little confidence in many of her MPs.
Acting leader Ken Shirley says she has dumbed down
portfolios like justice, transport and commerce, breaking
them up into bite-sized portions. He describes Marian
Hobbs' new portfolio of Urban Affairs as ridiculous and
says Labour has turned the expensive creation of
politically-correct, meaningless portfolios into an art
form.

NZ IS TOP DEVELOPER
-------------------

One of Microsoft's top executives says New Zealand is
boxing way above its weight. Cliff Reeves is visiting this
country for the first time from the Microsoft HQ in
Seattle, to take part in the Tech-Ed 2002 conference in
Auckland. He has delivered the opening keynote address
today. He says New Zealand's IT community is producing
world-class innovative solutions and deployments. Mr Reeves
says that is a result of where we are, and who we are. He
says kiwi ingenuity coupled with a market that is small
enough to avoid complexity makes New Zealand an ideal place
to develop new products. Cliff Reeves says New Zealand is
the leading developer market in the Asia Pacific region for
Microsoft. This year's Tech-Ed 2002, is one of only one of
10 taking place around the world. It has attracted a total
of 48 speakers, a strong combination of 20 international
and 17 local Microsoft experts, as well as 11 independent
presenters. Cliff Reeves says the New Zealand arm of
Microsoft has a strong reputation for producing high
quality events that bring the world's leading experts to
the local IT community each year.

PRESIDENTIAL ROLE FOR GOVERNORS-GENERAL?
----------------------------------------

Governors-General may be accorded more leeway in future to
speak out on public matters. The development follows Dame
Silvia Cartwright's controversial speech against long jail
sentences this week. It has been convention until now for
the Queen's representative to only act in a ceremonial
capacity. Prime Minister Helen Clark says Dame Silvia was
testing the boundaries with the speech. But she is
supporting her right to speak out in a non-political way
and says we need to consider how the role of Governor
General might evolve further. She says her view is that one
day there will be a President fulfilling the kind of role
that the Governor General currently has.

BANK CALLS ON OTHERS TO MATCH LOWER RATES
------------------------------------------

Kiwibank is calling for other mortgage lenders to lower
their interest rates. The comments come in light of today's
decision by the Reserve Bank to leave the Official Cash
Rate unchanged at 5. 75 percent. Kiwibank moved last week
to lower its floating rate to 6. 95 percent. Chief
Executive Sam Knowles says it also reduced its fixed rates
and he expects other banks to follow suit sometime this
week. He says Kiwibank will keep its rates lower than its
competitors. Mr Knowles does not see much change in
interest rates in the short to medium term.

MAORI DO WELL IN RESHUFFLE
--------------------------

Maori are the big winners in the Prime Minister's
allocation of Cabinet and executive positions. The bulk of
the elected Maori MPs have won either Cabinet, ministers
outside of Cabinet or under-secretary positions. Parekura
Horomia keeps his Maori Affairs portfolio while new Cabinet
Minister John Tamihere has been named Youth Affairs
Minister. Tariana Turia and Dover Samuels have been given
posts outside of Cabinet. Mita Ririnui has been named an
under-secretary. Helen Clark says she has done her
calculations and believes the Maori caucus has been
represented fairly. In another change, Marian Hobbs loses
Broadcasting to Steve Maharey.

FISHERIES PLAN LAUNCHED
------------------------

The Treaty of Waitangi Fisheries Commission has unveiled
its plan for returning more than $700 million worth of
fishing assets to Maori. The allocation proposal involves
returning fisheries quota, cash and shares to iwi, and the
creation of the country's largest fishing company. The plan
was launched at a hui at Hopuhopu north of Hamilton today.
Commission chairman Shane Jones says the settlement is full
and final. Key elements of the plan are: allocating inshore
quota to iwi through a coastline formula; allocating deep
water quota through a 75 percent iwi population, 25 percent
iwi coastline formula; and giving $20 million in cash to
iwi on a population basis.

CONSTABLE CHARGED WITH ASSAULT
------------------------------

A Hamilton police officer has been charged with assault,
following an internal investigation. The constable is
accused of assaulting a 15-year-old last month. Joel Scott
alleges the officer assaulted him in Hamilton's Te Kooti
Park. The teen says he was held in a choke lock, while his
arm was bent back behind his head. Detective Inspector
Bruce Scott says the constable has today been issued with a
court summons. He will appear in the Hamilton District
Court later this month.

Thursday, 15 August
~~~~~~~~~~~~~~~~~~~~

CABINET SWORN IN
-----------------

The new Cabinet is now in place with at least one new
Minister admitting to a few nerves about the job ahead.
Twenty-eight Government Ministers and Under-Secretaries
have been officially sworn in at Government House this
afternoon. New Conservation Minister Chris Carter says it
is a very proud day for him and his partner. He says he is
a bit humble and nervous about the new position and proud
to be an 'out' gay man in a Cabinet position. The ceremony
before Governor-General Dame Silvia Cartwright took around
an hour and was attended by about 100 guests including
ministers' families and friends. Dame Silvia urged the
Ministers to use their intelligence and wisdom to serve the
country. She told the ministers that today's ceremony is an
important constitutional event and that as ministers, the
whole country is relying on their good judgement. Prime
Minister Helen Clark urged them to bring humility to the
job.

ORGAN DONATION RATES NOT UNUSUAL
--------------------------------

Intensive care specialist Peter Hicks says New Zealand's
organ donation rates are in line with other countries. A
new study shows that of 116 people declared brain dead,
only 37 ended up donating organs. Dr Hicks says there are a
number of reasons, including medical and cultural ones, and
it sounds worse than it is. He says intensive care doctors
don not want to push families, despite their support of the
transplant programme. He says they are very aware that for
some people these are lifesaving opportunities, but doctors
don not want to be coercing bereaved families into doing
something they don not really want to do. Meanwhile
Auckland intensive care expert Dr Stephen Streat, who
carried out the survey, says the key to increasing organ
donations is an informed consent process, not persuasion.
He says of the cases he investigated, 32 families refused
permission, six more refused before being asked, four would
not believe their loved one was dead, three were homicide
victims, and many had medical conditions which prevented
donation. Dr Streat says there have been too many medical
scandals in New Zealand, and any pressure from medical
professionals would backfire. He says New Zealanders don
not respond well to being told what to do.

MAF TO INCINERATE SUSPECT GM SEEDS
-----------------------------------

Thirty tonnes of maize seed being held by the Ministry of
Agriculture and Forestry is destined for the incinerator
tomorrow. It was handed over last week to MAF by its
Australian owners, Pacific Seeds, after concerns were
raised that the seeds were GM-contaminated. Tests have
confirmed the suspicions, despite some returning negative
results. MAF spokesman Brett Sangster admits there is a
risk in destroying the seeds, when there is still a chance
it is a false alarm. But he says it is not a question for
MAF to answer, but a commercial decision made by Pacific
Seeds.

FORGET MOWING THE LAWNS!
------------------------

Forget about your outdoor gardening chores this weekend a
robot can do them for you. Massey University, in
collaboration with Husqvarna, is developing a robotic grass
cutter that can be remote controlled via the Internet.
Although robotic lawn mowers have been on the market for
years, Massey researchers have taken the idea a step
further, using navigation systems. By the end of the year
it should be able to self navigate and perform other tasks,
like soil testing. Professor Glen Bright says they are also
working on a robotic "cockroach", which will take care of
even more chores. He predicts such a robot will be in every
home by 2020.

BILL ENGLISH ANNOUNCES PORTFOLIOS
---------------------------------

The National Party leader Bill English has today announced
his portfolio allocations. Don Brash, as expected, is to
take the finance portfolio, Gerry Brownlee has been given
Energy, Local Government and SOE's while Simon Power has
Tertiary Education, Justice, Workplace Skills and Youth
Affairs. Health goes to Lynda Scott, along with Senior
Citizens and Food Safety; Foreign Affairs will be Wayne
Mapp's main task, alongside Housing and Disarmament. Tony
Ryall takes on Commerce, Sentencing, Police, Corrections
and Courts, while Nick Smith continues with Education and
Environment. More follows.

(Yoohoo? Maurice, where are you? - BH)

UNKNOWN HOUSE-SITTER DIES IN BLAZE
----------------------------------

Hastings police are trying to identify a person killed in a
house fire this morning. The cottage on a lifestyle block
between Havelock North and Waimarama was gutted by fire in
the early hours of this morning. Detective Dave deLange
says they are carrying out enquires to identify the body.
He says the normal residents are away at the moment and he
understands someone was house-sitting the property.

Friday, 16 August
~~~~~~~~~~~~~~~~~

PILOT DIES IN CHOPPER CRASH
----------------------------

Police are still trying to piece together the events that
led to this afternoon's fatal helicopter crash. The pilot
of the chopper was killed when it went down near Dannevirke
in southern Hawke's Bay. The helicopter was carrying out
routine agricultural spraying when it slammed into the
hillside around one this afternoon. It's believed the pilot
was the only person on board. Air accident investigators
are at the scene.

ROW A NON-ISSUE
---------------

Bill English claims the Maurice Williamson row was hardly
touched on at National's all-day caucus in Wellington. Mr
Williamson boycotted the meeting, preferring to give media
interviews at his home in Auckland. There was speculation
the rebel MP, who is upset he has been ranked last for
National, would eventually join his colleagues. However, Mr
Williamson failed to show. Mr English emerged from the
caucus, maintaining the row is a non-issue. He says he will
catch up with Mr Williamson in time. Bill English says the
caucus discussed more important issues like rebuilding the
party.

CONCERNS OVER KAVA
-------------------

The Food Safety Authority is airing its concerns over
dietary supplements containing kava. The herb's root is
used across the Pacific as a ceremonial drink but has more
recently been used in supplements to help with insomnia and
anxiety. Switzerland and Germany have withdrawn all kava
products and the UK and Australia have issued a voluntary
recall. The drug has been linked to liver failure. New
Zealand's food authority now believes there is cause for
concern and is recommending kava users reconsider. It also
says people with jaundice or liver problems who are taking
kava, should see a doctor.

CALL FOR STRONGER STANCE
------------------------

Prime Minister Helen Clark has repeated her call for the
Commonwealth to develop a stronger stance against Zimbabwe.
Speaking at the Pacific Forum meeting in Fiji this
afternoon, Miss Clark says Zimbabwe should have been
suspended from the Commonwealth some time ago. She says a
new round of diplomacy is needed to get a stronger stand by
the Commonwealth. New Zealand has so far taken a harder
line against Zimbabwe than other Commonwealth members,
aligning itself with the European Union. Zimbabwe is
currently suspended from the council of the Commonwealth
but was still able to take part in the recent Commonwealth
Games in Manchester.

BANKDIRECT CUTS HOME LOAN RATE
-------------------------------

BankDirect has joined WestpacTrust and ASB Bank in dropping
home mortgage rates. BankDirect has cut its floating rate
from 7. 7 percent to 7. 55 percent. Earlier today both
WestpacTrust and ASB Bank cut their floating rates from
eight percent to 7. 85 percent.

HIGHWAY CLOSED
--------------

A fatal accident has closed State Highway 27 north of
Waharoa this afternoon. Matamata police say traffic is
being diverted around the crash scene and there are no long
delays. They expect the highway to remain closed until
around 6. 30pm.

KINDY TEACHERS PAY SETTLED
--------------------------

Kindergarten teachers have unanimously accepted a pay
settlement, negotiated between their union and the
Government. The agreement gives them pay parity with
primary school teachers. It will be introduced over five
years, with the first increases backdated to July the 1st.
The first year will see head teachers with increases of
between five and 12 percent, and teachers getting three to
nine percent. A series of meetings over the past three
weeks has ended this afternoon with the unanimous yes vote
to the deal, negotiated by the teachers' union, the NZEI.
National President Amanda Coulston says for some it will
mean by July 2006, they will have received a 61 percent pay
increase. Amanda Coulston says that is an indication of how
underpaid kindergarten teachers have been.

SNOW ON THE WAY
----------------

The central south is in for a fresh dumping of snow over
the weekend. The MetService has issued a heavy snowfall
warning for the Lindis Pass which expects up to 10
centimetres. Lighter snow showers are forecast to fall
around 600 metres. MetService forecaster Steve Ready says
the cold front is expected to hang around most of the
weekend. He also believes the snow will be enough to close
the Lindis Pass. Mr Ready says for skiers, the front is
forecast to give a light coating of snow on the Remarkables
near Queenstown.

TRIAL PROCEDURES CAUSE CONCERN
-------------------------------

New Zealand is concerned about the adequacy of trials
underway in Indonesia over human rights abuses in East
Timor. A court sitting in Jakarta yesterday acquitted a
former East Timor police chief and five middle-ranking army
officers of committing crimes against humanity. Earlier
this week the former governor of East Timor was found
guilty of committing crimes against humanity and was given
three years jail. Foreign Affairs Minister Phil Goff says
in the three cases heard so far, the prosecutor has failed
to present all the relevant evidence and in his view has
not met accepted standards. Mr Goff says people must be
held to account for crimes against humanity and the minimum
sentence in Indonesia for this crime is 10 years.

PARTNERSHIP EXPANDED
--------------------

A new social work services trial partnership between Maori
- and Child, Youth and Family is being expanded. Funding
from CYFS will allow the iwi social service Tupoho, from
Wanganui, to employ a part-time qualified social worker for
six months. It follows a similar agreement signed recently
between the department and Te Atiawa in Lower Hutt. The
trial is an effort to work closer with iwi, to better
support at-risk Maori children and families. It is hoped
the experiment can be extended even further if successful.

POLICE THREATENED IN COURT
---------------------------

More threats were directed at police by Canterbury man
Jason Williams in court this morning as he was sentenced
for assaulting police and threatening to kill an officer.
The first charge stemmed from an incident last November
when Williams was shot by armed police in Christchurch. The
second involved threats made by phone in May. Judge Stephen
Erber sentenced Williams to two and a half years jail for
the offences, describing him as a manipulative man who's
dangerous when crossed. Immediately after the sentence was
handed down Williams made verbal threats to police officers
sitting at the rear of the court. Judge Erber took into
account Williams drug and alcohol problems and the fact he
was dealing with the emotional turmoil after the death of
his daughter. However he did not accept submissions that
Williams never meant to harm anyone and did not pose a
threat to police.

THE FINANCIAL PAGE
~~~~~~~~~~~~~~~~~~

Date: 8 August 2002          Brian Dooley
                             Wellington  New Zealand

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

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

To Buy NZD 1.00

USD  0.4606
AUD  0.8555
GBP  0.2995
JPY  55.56
CAD  0.7270
EUR  0.4738
HKD  3.6012
SGD  0.8142
ZAR  4.8361
CHF  0.6916

INTEREST RATES (%)
~~~~~~~~~~~~~~~~~~
Call  : 5.75
90 Day: 5.86


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