Copyright, Brian Harmer

I can't recall a week which has swung so wildly between
opposite weather patterns. Days of horizontal driving rain,
dark hills, surging grey-brown waves and slightly blue
ferry passengers sitting miserably in their cars at the
wharf, hoping that the swells will die down soon so that
the ferry can sail. Days of clear blue sky and faint
zephyrs, green hills and placid waters, sunshine sparkling
off the glass tower blocks and illuminating the multihued
roofs and walls of houses in the hills around the harbour.
It is mid-term break at Victoria, so in anticipation of a few
such pleasant days I applied for a few of my store of
unused days of annual leave to enjoy the view in peace and
solitude (which I did). On Saturday, no more Mr Nice Guy!
The weather collapsed in a wet grey heap and the wind began
to whistle again. Come Sunday, and it was positively
bucketing down, or should that be across? There is a
paradox in our weather statistics ... we get more rainfall
measured in metres, and at the same time more sunshine
hours than many other capitals. There are times when you
need to see the intensity of the rain to believe it. (I am
conscious of the need for sensitivity to the disastrous
events in Northern Europe and China, at this point, but as
I understand it, those are once in five century events).
Anyway, here we are at Monday once again, and the rain was
still pouring down as I opened my eyes to the new day. By
the time I had eaten my breakfast, the grey cloud was a
retreating wall of darkness to the North, and the high
peaks of the Orongorongos were glistening wet in a clear
and innocent sunshine. The Southerly tops were coated in
what looked like snow, but was probably hail.  Amazing.

------
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 Te Kai-Inaka ... Kia
Ora!
On with the news:

Monday, 19 August
~~~~~~~~~~~~~~~~~~

NEW RETAIL PROJECT FOR AUCKLAND
-------------------------------

Australian shopping mall operator Westfield has committed
to a retail project in Auckland worth hundreds of millions
of dollars. The Newmarket project is tipped to be New
Zealand's biggest ever construction development and will
cover seven hectares when completed. Westfield has entered
into a joint partnership with Auckland One Ltd, the owner
of the Two Double Seven shopping centre. Westfield
spokesman Matthew Abbott says they will look to get the
planning process into gear over the next six months.

(I wonder what the outcome of the resident protests a few
months ago was - BH)

CRISIS? WHAT CRISIS? SAYS TELSTRACLEAR
--------------------------------------

TelstraClear is rejecting reports it is heading for a
financial crisis. The telecommunications company says it
has secured a five-year $600 million loan facility with
Australian parent company Telstra. TelstraClear is denying
a newspaper report suggesting it was facing a crisis in
refinancing loans that are about to fall due. Chief
Executive Rosemary Howard says the TelstraClear board
approved the agreement with Telstra last week, following a
review of financing options. She says the Telstra loan
facility is a great deal for TelstraClear, because it is
competitively priced, and will save TelstraClear millions
of dollars in upfront bank fees. The company's auditors
have now agreed to remove a paragraph referring to
'fundamental uncertainty', which appeared in the auditor's
report for last year. TelstraClear is New Zealand's second
largest full service communications company, serving more
than 300,000 business and residential customers,
representing more than 11% of the New Zealand market.

(In my view, it is heading for a customer service crisis.
Several posters in the newsgroups have echoed my recent
experience that the help desk typically takes in excess of
30 minutes to answer at present. - BH)

CUSTODY FOR MAN ACCUSED OF ROGERS KILLING
-----------------------------------------

The man charged with murder after Tauranga's 'public
toilets killing' has been remanded in custody to appear
again early next month. Fifty-five year old John Rogers was
fatally stabbed at the Domain public toilets on election
night. The arrest of a 34-year-old sickness beneficiary
came after Tauranga detectives travelled to Auckland at the
weekend. The accused appeared in the Auckland District
Court and was remanded for a psychiatric report with
continued name suppression. He is to appear in Tauranga on
September 2.

COMPETITION FOR EGYPT TRIP
--------------------------

Three secondary school students are being offered trips
with the official New Zealand delegation commemorating the
60th anniversary of the Battle of El Alamein. Prime
Minister Helen Clark is travelling to the commemoration.
Secondary school students aged 15 and over are being asked
to write an essay about the battle and the winning three
authors will get to travel to Egypt on board the air
force's VIP jet. Students are asked to have their entries
into the Prime Minister's office by September the 18th and
the essays will be judged by former history teacher and
Parliament's Speaker elect Jonathan Hunt.

NZ NO STRANGER TO AID SWEETENERS
---------------------------------

A former cabinet minister says New Zealand used overseas
aid money to get support for Don McKinnon's bid to be
Commonwealth Secretary General. Progressive Coalition MP
and former Associate Foreign Affairs Minister Matt Robson
is making the claims. His comments come as Australia says
it will attach more conditions to aid it gives to Pacific
nations. Matt Robson says New Zealand has done the same in
the past and he cites the appointment of Don McKinnon as
Commonwealth Secretary General. He says Mr McKinnon visited
every Commonwealth country in his bid and New Zealand made
sure our Pacific neighbours were well looked after.

EMERGENCY SERVICES DISRUPTED
----------------------------

The Police and Fire Service in the South Island have had
their communications disrupted this afternoon. It is
believed a fibre optic cable has been severed. It is not
yet known just where the cable has been damaged and
technicians are searching for the problem. Police and
firefighters can speak to their local control rooms but
cannot raise the Christchurch Communications Centre.
Emergency 111 calls are not affected and they are passed on
by telephone to the various centres.

DONALD NOT HAPPY WITH OPPOSITION SETUP
--------------------------------------

The Greens are challenging the right of National's Bill
English to claim the title of Leader of the Opposition.
Under the Westminster system, the leader of the largest
party outside government takes the title and its associated
privileges. However, all parties not in government are
considered to be in opposition. Greens Co-leader Rod Donald
says it is a ridiculous situation and a throw back to First
Past the Post days. Donald says it is hard for people to
believe that Bill English can represent parties as diverse
as the Greens, ACT, New Zealand First and United Future.
Donald says there should be a system whereby the opposition
rights and privileges are handed out to all opposition
parties proportional to their numbers in the house.

(I am unsure of the situation here, but as I understand it,
the person who is designated as "Leader of the Opposition"
gets paid for the performance of that office at a higher
level than other opposition MPs. What I don't know is
whether that extra payment also goes to the leaders of the
other opposition parties. I am hoping my good friend David
who has the necessary expertise will enlighten me on this.
I am wondering whether there is not some validity in the
point that to designate a single "Leader of the Opposition"
in a multi-party parliament may not be an anachronism. -
BH)

SEED DESTRUCTION SLOW BUT SURE
------------------------------

The destruction of GM-contaminated maize seed by MAF is
progressing slowly. The burning of the 30 tonnes of seed
began last Friday, on the instruction of its owners Pacific
Seeds. The maize was grown at Gisborne and at Pukekohe,
south of Auckland. The Ministry of Agriculture and Forestry
says the incinerator being used has a capacity of less than
one tonne. The work has to be fitted in around other
demands for the incinerator, but it is still on target to
be completed by the end of this week. Meanwhile, further
tests on the seed are continuing in the United States and
Australia. The results are expected to be known on
Thursday.

MEETING FOR PARENTS IN MENINGITIS SCARE
---------------------------------------

Parents of students attending South Otago High School have
been invited to a meeting tonight to get an update on the
meningitis scare at the school. Three students at the
Balclutha school have now been confirmed as suffering from
meningococcal disease. Three more students, including two
from an adjacent primary school, are also being checked for
the disease. Deputy Principal John Douglas says the school
wants to keep everyone informed. He says Otago's Medical
Officer of Health will also be at the meeting to answer any
questions people might have.

ANZ CUTS MORTGAGE RATES
-----------------------

ANZ is the latest lender to cut home interest rates,
following last week's decision by the Reserve Bank to hold
the official cash rate at 5. 75 percent. ANZ is dropping
its floating home rate from 8 to 7. 85 percent. It is also
cutting rates for a number of special offer home loans.
ANZ's Easy Start introductory 12-month variable rate will
decrease from 6. 50% per annum to 6. 35% per annum for new
customers. For existing ANZ Easy Start customers the
current rate will also decrease by 0. 15% p. a. The ANZ
Money Saver variable rate will also decrease from 7. 40%
per annum to 7. 25% per annum. These changes are also
effective for new applications received from Tuesday 20
August 2002 and for existing customers from Tuesday 10
September 2002. ANZ General Manager Mortgages, David
Hamilton, says a recent drop in wholesale interest rates
has given them the chance to cut rates on all its home
mortgage products. A number of banks have already dropped
interest rates in the past couple of weeks.

WINEMAKER TO BUILD WETLAND
--------------------------

An Australian winemaker wants to give New Zealand back some
of its lost wetland. Banrock Station Wines says it will use
revenue from its New Zealand wine sales to establish a
wetland near Masterton. The wetland would be created in
partnership with Wetland Care New Zealand. Banrock Station
manager Tony Sharley says more than 90 percent of New
Zealand wetlands have been lost. He says times have changed
and there is no longer any need to destroy natural wetlands
to make way for more farm land.

HRT HOTLINE A SUCCESS
---------------------

The Women's Health Action group says its HRT telephone
hotline is proving to be very successful. It was set up a
month ago, after overseas trials showed Hormone Replacement
Therapy can cause breast cancer, heart attacks and strokes.
Women's Health Action Executive Director Sandra Coney says
more than 500 women phoned in the first week, with calls
levelling out to 150 a week. She says a public meeting has
also been held in Auckland, attended by close to 300 women
- and some men. It is hoped more meetings can be held in
other parts of the country, but she says Women's Health
Action lacks the necessary funds to finance them.

Tuesday, 20 August
~~~~~~~~~~~~~~~~~~

MAN CHARGED WITH ASSAULTING TODDLER
-----------------------------------

A Hastings man has appeared in court this afternoon charged
with the assault of a three-year-old boy. The toddler
underwent surgery yesterday after he sustained serious
injuries in the alleged domestic assault. The 21-year-old
man faces charges of assaulting the boy with intent to
cause grievous bodily harm and also with assaulting the
child's mother. He has been remanded in custody till the
September 3. Detective Kris Eckhold says the man was not
the father of the boy, but had been living in the same
house. She says the boy suffered broken bones and bruising.
Detective Eckhold says the boy is in intensive care at the
moment and is expected to remain in hospital for up to
three months.

MUM APPEALS FOR GIRL TO RETURN
-------------------------------

A grief stricken Auckland mother has made an impassioned
plea for her daughter to come home. Fourteen year-old
Monica Penituki-Tumata was last seen getting into a car
outside her grandmother's home in Mount Roskill on August
8. Her family and police have no idea of her whereabouts.
They say she was prone to going missing for a few days at a
time but never for as long a period of time as this.
Speaking at a media conference, Monica's mother, Tracey
Tumata was mostly too upset to speak. All she could say was
that she loves her, misses her and wants her to come back
home. Tracey Tumata says Monica's normally a happy girl.

(She was found safe and well in Whangarei - BH)

POLICE SEEK HELP IN SEARCH FOR ALLEGED ROBBER
---------------------------------------------

Police on Auckland's North Shore are hunting an alleged
serial robber. They have asked for the public's help in
locating a man they want to interview about four aggravated
robberies. A warrant was issued last week for the arrest of
33-year-old Dean James McDonald Shedden in connection with
the robbery of the Wairau Park Kiwibank. Police now want to
urgently speak to Sheddon about three other robbery
investigations. They advise that he is dangerous and should
not be approached.

POSITIVE REACTION TO TEACHERS' ARBITRATION
------------------------------------------

The PPTA is applauding an arbitration panel's report into
the 16-month secondary teachers' pay dispute. The
arbitration panel is recommending pay increases for
teachers of up to 16 percent as well as a complete revamp
of their salary scales. PPTA president Jen McCutcheon says
the panel has taken note of the concerns teachers have
about recruitment problems and work overload issues. The
panel says a special NCEA allowance ending in 2004 would
not help recruit and retain teachers. It says the costs of
its recommendations will be significant from next year
onwards but believes benefits will flow from them.
Education Minister Trevor Mallard says if the PPTA accepts
the solution, the Government will be spending $170 million
more a year than it previously banked on. But he says the
recommendations are great news for teachers. Trevor Mallard
says the starting salary for most secondary teachers will
increase by more than $3,000 to just over $37,000. And the
salary for a fifth year teacher who receives the High
Priority Teacher Supply Allowance will increase from
$41,500 to more than $49,000 in July next year. The Prime
Minister hopes the PPTA will move on and rekindle its close
relationship with the Government. Miss Clark says the
Government has already agreed to abide by the
recommendations of the arbitration panel which was charged
with finding solutions to end the secondary teachers'
dispute. It is now up to teachers to either accept or
reject the panel's recommendations.

GLIVEC TALKS CONTINUE
--------------------

A drugs company claiming unmatched results for its cancer
drug says talks are continuing on a daily basis with
PHARMAC over funding subsidies. Glivec has proven effective
in the treatment of chronic myeloid leukaemia - or CML -
which affects around 200 New Zealanders. Managing Director
of Novartis New Zealand, Andrew Moore, says the drug needs
to be made available as soon as possible to those suffering
from CML. It costs $60,000 to $100,000 a year for each
patient. But PHARMAC wants an agreement to enable Glivec to
be funded for all those with CML, rather than just the 10
to 20 people in the acute stage of the disease. Andrew
Moore, says the talks are following what he calls an
aggressive time line - but would not be drawn on how long
it will take. PHARMAC spokesman Simon England says
negotiations will take weeks, rather than days, to
complete.

SCHOOL KIDS STAY HOME
----------------------

Nearly a fifth of the pupils at an Otago primary school hit
by meningitis were kept at home today as health officials
continue to give out antibiotics to stop the spread of the
disease. Two students from Rosebank Primary School with
meningitis have been moved out of intensive care at Dunedin
Hospital today. Three students from the nearby South Otago
High School have been confirmed as having type C
meningitis, while another high school student also has the
disease but the type has yet to be confirmed. Rosebank
principal Bill Mallon says 70 of his pupils were away
today, some with flu but others with reactions to the
antibiotics. He says some parents are keeping their
children home until antibiotics have been given.

NO DEAL REACHED WITH QANTAS SAYS AIRNZ
---------------------------------------

Air New Zealand has reiterated that no deal has been
reached with Qantas, following a halt in trading of Qantas
shares on the Australian Stock Exchange. The three-day halt
in trading of the Australian national carrier's shares
follows media speculation that it is planning a major
capital raising or more than a billion dollars. Qantas is
due to release its full year results tomorrow. Air New
Zealand says although discussions continue with Qantas
about a tie-up between the two airlines, no agreement will
be reached in the next few days or weeks.

NATURAL GAS CORP TO SELL OPERATIONS
-----------------------------------

Energy company Natural Gas Corporation is to sell off its
retail gas customers and electricity generation operations.
The sale is part of a restructuring plan which will see it
sell a third of its assets in order to focus on gas
distribution and electricity metering. Analysts say the
sale could free up $600 million for the company, which it
may use to buy some of the assets of the lines company
United Networks. NGC has around 100,000 industrial,
residential and commercial gas customers in the North
Island. In its annual report, NGC announced it had more
than doubled its half year return to profit to post net
earnings of $34. 5 million for the year ended 30 June 2002.
NGC recorded a $301. 6 million loss in 2001. The Company
also made an earlier than expected return to dividend
payments, which will be paid on 16 September. Chairman Greg
Martin says the earnings improvement is due to an
outstanding performance by NGCA's natural gas trading
business, strong results from gas transportation and
metering activities and a steady contribution from LPG
trading.

Wednesday, 21 August
~~~~~~~~~~~~~~~~~~~~

QUEENSTOWN LODGE SCOOPS AWARDS
------------------------------

Queenstown's Evergreen Lodge is popping the champagne
corks, after scooping five categories at tonight's Tourism
Awards. The small four-suite boutique lodge has won the
hosted accommodation award, visitor accommodation and
transport, a distinction award, and the small business
operators award. On top of all that, the luxury lodge took
out the supreme award of the year. Manager Gary Withers
says the secret to their success is keeping the lodge small
and intimate.

(If I read the Sunday Star Times correctly, the judges
actually recommended someone else but were over-ridden by
an official. Not a good look, if true. - BH)

SHEDDEN CHARGED WITH AGGRAVATED ROBBERY
---------------------------------------

A man, who police have been seeking for more than a week in
connection with the robbery of a Kiwibank branch, has been
arrested on Auckland's North Shore tonight. Police have
been looking for 33-year-old Dean Shedden since a warrant
was issued for his arrest, in connection with the bank
robbery at Wairau Park. Tonight, they located and arrested
Shedden in the suburb of Glenfield, and he will appear in
court tomorrow charged with aggravated robbery.

AIRLINES FILE STATEMENT TO ASIC
-------------------------------

Air New Zealand has consented to a statement being filed
with the Australian Securities and Investment Commission
regarding its talks with Qantas. The statement is part of a
prospectus the Australian flagship carrier has logged with
the ASIC. It says discussions between the airlines about
Qantas taking a strategic stake in Air New Zealand are
ongoing. However no agreement has been reached, and no
assurances can be given that one will be reached. Qantas
has today announced it is seeking to raise $930 million in
new capital. It has told the ASIC part of that may be used
to buy shares in Air New Zealand.

MAF PLAYS DOWN BIOSECURITY FEARS
---------------------------------

MAF is playing down fears of a Maungatawhiri couple
concerned about a silo of foreign barley stored near their
farm. Mark and Jane Holmes uncovered more than 20 minor
breaches of the Biosecurity Act committed by MAF after
noticing the barley near their farm, south of Auckland. MAF
Biosecurity director Barry O'Neill says the couple's claim
the barley contained weeds foreign to New Zealand is false.
He says they have run extensive tests and weeds are all
found in New Zealand. Mr O'Neill says MAF admits it was
wrong to store the barley in a rural area before it was
deemed safe.

KIWI BOUNCES BACK AGAINST GREENBACK
-----------------------------------

The New Zealand dollar has bounced back against the
American today. The kiwi dollar is currently trading at
around 47. 12 US cents. BNZ foreign exchange manager Mike
Symonds believes our dollar is back in favour because there
is more stability in financial markets worldwide. He says
as a result, global investors are looking towards
peripheral currencies like the New Zealand and Australian
dollars again. However Mike Symonds says whether the New
Zealand dollar can hit 50 US cents will depend on the
global economy.

CONCERN AT YOUTH RAPE CLAIMS
----------------------------

Five Hawke's Bay youths aged between 11 and 14 have
reportedly admitted raping a young girl over a period of
time, when she was between six and eight years old. Only
one of the boys is old enough to charge, while the other
four are immune from prosecution because they were under 14
at the time of the crime. The matter is described by police
as one of the worst incidents of youth sex offending.
Children from the age of 10 can be charged with murder or
manslaughter, but not with other crimes. Children's
Commissioner Roger McClay, says if the police have real
concerns about public safety, the Department of Child Youth
and Family Services can place the young people in
residence.

THREE TEENS ARRESTED AFTER PARTY INCIDENT
---------------------------------------

Three teenagers have been arrested for an alleged attack on
a motorist outside a party in Auckland earlier this month.
The motorist had hit a 15 year-old youth attending the
party in Mount Roskill. The impact threw him into an
adjacent lane where he was run over by a second car. Police
say the driver was dragged from his car and kicked and
punched. A fourth teenager believed to be involved in the
attack has been referred to Youth Aid. The three arrested
have appeared in Auckland Youth and District Courts this
afternoon charged with wounding with intent to injure.

MORE TOURISTS FOR LONGER
------------------------

New Zealand is getting more overseas visitors - and they
are staying longer. Around 152,000 tourists visited here
last month - a five percent increase on July last year.
Statistics New Zealand says the biggest increase was those
coming here from Australia - an extra 4,500 visitors. Much
of that interest is being linked with a good skiing season.
Figures show the average length of time spent here by
tourists is now 23 days. By contrast, the number of short-
term trips overseas made by New Zealanders was down by
4,000.

LOTTERIES COMMISSION BOSS RESIGNS
---------------------------------

The Chief Executive of the New Zealand Lotteries Commission
is standing down. Ariane Burgess says the Commission has
achieved many of the targets she set out to do when she
joined, and that she wants to go on to something new.
Warren Salisbury, the current Chief Financial Officer of
the Commission, will take up the position of Acting Chief
Executive Officer. Mrs Burgess has agreed to continue to
assist Warren Salisbury and the Commission during the
transition phase and to assist with the various product
launches which are already underway - in particular the
launch of New Lotto. The Lotteries Commission has reported
a June year profit of $113 million, from sales worth $560.
8 million. Sales were down compared to last year by just
over 7 percent.

(Hmmm ... I wonder to what extent there is a correlation
between the departure of the original CEO, David Bale, a
genuine bright ideas man, who was getting too much money
according to the mean minded in our midst, and the fall in
the revenues? And if there is a correlation, is the linkage
causative? I suggest that if we go down the DDR route and
select cheaper and less colourful entrepreneurs we will get
less colourful results - BH)

FINE FOR FERRET FANCIERS
------------------------

A husband and wife caught walking their pet ferrets on a
Great Barrier Island beach last January, have pleaded
guilty and been fined. The couple appeared today at
Auckland District Court and received a $2,600 fine. The
Auckland Regional Council brought the case and has been
awarded legal costs. Great Barrier Island is a controlled
area under the Biosecurity Act. The offence carries a
maximum fine of $100,000 or five years in jail.

(According to the reports in the media, these people were
explicitly warned not to take the animals ashore by a
uniformed officer of the Department of Conservation. Now
they claim to be remorseful. Please excuse my scepticism.
- BH)

QANTAS/AIRNZ DEAL NEEDS OFFICIAL APPROVAL
-----------------------------------------

Qantas says it will only be taking a stake in Air New
Zealand if competition regulators on both sides of the
Tasman agree. The Australian carrier has announced a net
annual profit of $497 million, and says it will raise $930
million of new capital. It says part of that could be used
to purchase a share of Air New Zealand, although Qantas
says it also wants to buy new aircraft. But at a media
conference today Qantas chief executive Geoff Dixon was at
great pains to stress price and equity are not the main
issues. Mr Dixon said the deal needs to be good for both
Australian and New Zealand passengers before it could
proceed. Industry analysts say Qantas is now one of the
most profitable airlines in the world, thanks in part to
the collapse of rival Ansett helping it through the global
downturn in air travel.

PM GIVES UP NUMBER ONE SPOT
---------------------------

Prime Minister Helen Clark will not be sitting in the
number one chair in Parliament when it resumes on Monday.
An opposition spat over front row seating has seen all
parties agree to a compromise seating plan which will avoid
any unseemly scramble for seats. MPs will sit in
alphabetical order, until a final seating solution is
sorted out by the new Speaker later that day. That means
Helen Clark will be at number 13, wedged in between new
Labour MP Ashraf Choudhary and United Future MP Gordon
Copeland. Speaker elect Jonathan Hunt says it is a good
compromise but it is unlikely to be permanently adopted. He
says it might be more egalitarian but he doubts it is more
sensible. Mr Hunt says Standing Orders say members must be
placed in party groupings. Our political staff say it is
possible National may lose two front bench spots when the
new Speaker rules on the make up of the opposition benches
on Monday.

(When it came right down to it, on the day, she didn't
actually give up the spot. - BH)

Thursday, 22 August
~~~~~~~~~~~~~~~~~~~

CHOY CASE - JURY IS OUT
-----------------------

A jury at the High Court in Auckland is now considering
whether six teenagers are guilty of the murder of pizza
delivery man, 40-year-old Michael Choy. The jury of nine
women and three men began their deliberations just before
5pm. Earlier, the jury was told by the judge to look at the
big picture. The jury has been hearing five weeks of
evidence from each of the accused's lawyers and three crown
prosecutors. They must also decide whether or not a 12-
year-old is guilty of murdering Mr Choy through his actions
on the night the pizza delivery man was bashed to death.
Justice Robert Fisher told the jury to not look at each
accused's defence in isolation but to consider the big
picture of events which led to Mr Choy's death.

UNIONS HOPE FOR HOLIDAY SUPPORT
-------------------------------

Unions will be looking to the United Future party to give
impetus to their campaign for four weeks annual leave. They
are eyeing the party's avowed support for improved family
life as the lever. A senior union official told a
conference on balancing work and life that four weeks leave
will go some way to easing longer hours and added stress at
work. Engineering, Printing and Manufacturing Union
secretary Andrew Little says the case for four weeks'
holidays should come into focus through the government's
Commission on the Family. He says the challenge will be for
employers to act before being told by Parliament.

'COULD DO BETTER' SAYS NEW FONTERRA BOSS
----------------------------------------

Fonterra's chairman-elect says the co-operative's service
to farmers so far is improving, but he admits it could do
better. Henry van der Heyden says there appears a
particular problem with milk collection. Earlier this month
Fonterra had a bad start to the new milk season by failing
to collect milk from up to 10 percent of its suppliers,
including the farm of shareholders' council chairman Tony
O'Boyle. Mr van der Heyden says the problem is at the top
of his hit list. He takes over from John Roadley after
Fonterra's annual meeting next month. His predecessor
stepped down earlier this week.

KIWIBANK DROPS RATES AGAIN
-------------------------

Kiwibank has moved to head off interest rate drops by most
of the major lenders with another rate reduction. It had
lowered its rates ahead of the review of the Official Cash
Rate last Wednesday. Most major banks dropped their
floating and fixed rates, following the decision by the
Reserve Bank to leave the OCR unchanged. Now Kiwibank has
shaved back further its fixed term rates, saying it intends
to maintain its competitive advantage over the other main
banks.

CHILD PORN ACCUSED SENTENCED
----------------------------

A 20-year-old man who supplied and possessed child
pornography has been sentenced in the Palmerston North
District Court. Adam James Coombes has been fined $1300 and
sentenced to 230 hours community work. Coombes has also
been given nine months supervision and must attend
rehabilitative programmes. He has also had his computer
confiscated. The Crown was seeking imprisonment for the
trading and possession of up to 2,000 objectionable images.
The Defence portrayed a young man who withdrew from society
after a car crash in which his friend was killed, and he
sustained head injuries. The court heard he had become
addicted to the Internet and had drifted away from his
family.

NZ URGES END TO STONING SENTENCE
--------------------------------

New Zealand has urged the Nigerian Government not to stone
to death a woman sentenced for having a child out of
wedlock. Foreign Minister Phil Goff says while New Zealand
opposes the application of the death penalty in all cases,
its application is this case is utterly unacceptable by any
human rights standards. He says different countries and
cultures have differing approaches to moral standards but
killing a woman who has a child out of wedlock must be
regarded as an utterly disproportionate sentence in any
culture. Mr Goff has written to Nigeria's foreign minister
urging his government to intervene to prevent the execution
of the woman, Amina Lawal.

SOCIETY TO BLAME FOR RAPE CASE
------------------------------

A social justice advocate says punishing child rapists as
adults lets the community off the hook. The political party
Act has called for five boys aged between 11 and 14, who
have admitted raping a six-year-old girl, to be tried for
their crimes. Celia Lashlie, a former head of Special
Education Services in Nelson, says simply treating the boys
as adult criminals allows the community to escape the
reality that this sort of behaviour is happening in our
society. She says there should be an examination of how the
children even thought of carrying out such an action. She
says one factor behind this kind of offending is society's
early sexualising of children's behaviour. Ms Lashlie - a
former prison officer in male prisons and manager of a
female prison - became a controversial figure last year
when she published her book "The Journey to Prison", in
which she examined what led to people becoming criminals.
In the book she argues the community as a whole needs to
take responsibility for the incidence of crime in our
society.

KIWI KIDS ON THE DECREASE
-------------------------

The number of 'kiwi kids' is dropping. The latest Census
snapshot reveals there were nearly 850,000 children under
the age of 15 in New Zealand in March last year - about 23
percent of the population. That percentage has remained the
same for the past 10 years, but 30 years ago children made
up 32 percent of the population. In the next 50 years,
Statistics New Zealand says the number of children is
projected to decrease by more than 100,000, reflecting the
combined impact of lower fertility rates and fewer women of
childbearing age. There is now an average of 1. 9 children
per household, and roughly a third of homes include
children. Children were more ethnically diverse than their
adult counterparts, with 18 percent of children identifying
with more than one ethnic group, compared with 6 percent of
adults.

NO CRIMINAL CHARGES OVER SCHOOL PORN
------------------------------------

An Auckland intermediate school principal will not face
criminal charges, following the discovery of pornography on
his work computer. Michael Wilks was sacked from his post
as head of Northcote Intermediate last month. He had been
at the school for a decade and is credited with much of the
school's success in that time. The porn images were found
during routine computer maintenance. Mr Wilks' computer was
the only one in the school that had not been monitored by a
'Cyber Patrol' filtering system. North Shore Police say
they have completed their investigation and that the person
concerned has been warned about possession of objectionable
material.

NEW GOVERNOR 'PRIVILEGED' TO GET POSITION
-----------------------------------------

New Reserve Bank Governor Alan Bollard is hoping his
experience in the New Zealand economy will help him in
adjusting to the new job. Dr Bollard works just metres from
the Bank, as head of the Treasury. He replaces Don Brash
who resigned earlier this year to run for Parliament. He
says he feels very privileged to get the position, which he
sees as vital in shaping an environment for businesses and
households to make decisions. Dr Bollard says he will have
to make the change from the role of giving advice to making
decisions and that will be tough. He says he will bring
experience from having an applied economic background and a
fair bit of experience in the New Zealand economy.
Meanwhile the government is confident it has got the very
best person possible as the next Reserve Bank Governor.
Finance Minister Michael Cullen says he is very pleased the
new Governor is someone with Dr Bollard's very wide
experience and understanding of the economy. However, he
admits to having mixed feelings about it. He says he is
equally very disappointed to be losing Dr Bollard as
Treasury Secretary. Michael Cullen says Alan Bollard has
been enormously successful and changed the culture of
Treasury. And a senior economist says the appointment of Dr
Bollard as the new Reserve Bank Governor signals a less
aggressive approach to monetary policy. Deutsche Bank
senior economist UIf Schoefisch predicts Alan Bollard will
lead New Zealand towards the Australian model of keeping
inflation between two and three percent over a cycle. Alan
Bollard was appointed Secretary to the Treasury in 1998.
State Services Commissioner Michael Wintringham says he has
had a long and distinguished career in the public and
private sectors, including roles as Chair of the Commerce
Commission (1994 - 1998) and Director of the NZ Institute
of Economic Research (1987 - 1994). Mr Wintringham says he
is pleased that Dr Bollard's special talents in economics
and management have been recognised through his appointment
to the Governor's position.

Friday, 23 August
~~~~~~~~~~~~~~~~~

NEW POST FOR TOP DETECTIVE
---------------------------

The man who headed the Ben Smart and Olivia Hope murder
case has been appointed national crime manager. Detective
Inspector Rob Pope succeeds Superintendent Bill Bishop, who
has been seconded to a counter-terrorism liaison post in
London. Mr Pope will take up his new job, with the rank of
Superintendent, next month. He joined the police in 1975
and has worked primarily in Christchurch, most recently as
Canterbury crime services manager. As well as the Hope-
Smart case, he headed the investigation into Lisa Blakie's
murder. Scott Watson is serving a 17-year non-parole
sentence for murdering Hope and Smart in the Marlborough
Sounds after a New Year's Eve party at Furneaux Lodge in
1997.

FRACTURES LINKED TO LACK OF MILK
--------------------------------

Children who avoid drinking cows' milk are twice as likely
to fracture bones than their milk-drinking counterparts.
Researchers at the University of Otago have been studying a
group of children aged between three and10-years-old. In
the group who had avoided cows' milk for four months or
more, almost 50 percent of them had already suffered one or
more fractures. Post graduate human nutrition student Ruth
Black carried out the study. Ms Black says only eight
percent of the non-cows' milk-drinking group met the daily
guidelines for recommended calcium intake.

KIDNEY DONATION ENCOURAGED
--------------------------

Iwi health providers in the Waikato are trying to develop
strategies for increasing the rate of kidney donation
amongst Maori. The Waikato District Health Board is running
a study day, focusing on renal failure amongst Maori. Maori
are reluctant to donate body parts because it is
traditional that all parts of the body must be buried
together. However, they also face a growing epidemic of
kidney failure. Spokeswoman Pani Weiland says Maori make up
a large proportion of dialysis patients. She says iwi
health providers will be looking to raise awareness of the
problem.

LEGAL ACTION AGAINST OTAGO UNI
------------------------------

Court action is being taken over proposed restructuring at
Otago University. The PSA is seeking an injunction to stop
the University advertising positions in its Research and
International Division where the changes are taking place.
It says the University has advertised the jobs before
completing the placing of staff affected by the
restructuring, in breach of an agreement which had been
made with the union. PSA acknowledges it is an unusual
step, but says it has no other choice but to resort to
legal action to protect its members.

CHOY JURY RETURNS FOR QUESTION
------------------------------

The jury in the Michael Choy murder trial has returned to
court to ask a question. The nine women and three men began
their deliberations at 5pm yesterday. The jury is
considering whether six youths, including a 13-year-old,
are guilty of murdering 40-year-old pizza delivery man,
Michael Choy, in an ambush in Auckland last September. It
has asked for Justice Robert Fisher to clarify the meaning
of "to help or encourage someone else to commit a crime".
Justice Fisher says a person is equally guilty of a crime
if they take on a job such as acting as a lookout, or if
they are there to support the principal offender and their
presence encourages that offender.

(The verdict came late on Saturday, with two convicted of
murder, four of manslaughter including the youngster, and
one found not guilty. - BH)

JAIL FOR RAPIST
----------------

A Hawke's Bay teenager has been sentenced to ten years jail
for the sexual violation of a 75-year-old woman. Devon Te
Aho admitted the assault to police the day after raping the
elderly woman and breaking into her Dannevirke home on June
29th. In the Napier District Court this morning, Judge Jeff
Rea told the court the 19-year-old had been celebrating his
birthday and drinking with friends in Dannevirke when he
became separated from them. He said Te Aho then knocked on
the victim's door, intending on asking for directions.
However, Judge Rea said Te Aho pushed his way into the
victim's house and raped her, before threatening her and
demanding money. The court heard the rape was one of the
most serious and disgraceful to come before the court.
Judge Rea sentenced Te Aho to ten years for rape and five
years for burglary, to be served concurrently. Te Aho has
been given a minimum non-parole period of six years on the
rape conviction.

THE FINANCIAL PAGE
~~~~~~~~~~~~~~~~~~
Date: 23 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.

To Buy NZD 1.00

USD  0.4716
AUD  0.8648
GBP  0.3080
JPY  56.05
CAD  0.7353
EUR  0.4825
HKD  3.6879
SGD  0.8272
ZAR  5.1810
CHF  0.7090

INTEREST RATES (%)
~~~~~~~~~~~~~~~~~~
Call  : 5.75
90 Day: 5.90

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