Subject: 1 February, 2009
----- WYSIWYG NEWS ------------------------------
Copyright, Brian Harmer.
The first issue of WYSIWYG news went out this week in 1994.
We are now in the fifteenth year of operation. Yay!
After I posted last week's preamble in which I related my
enjoyment of a walk and my entry into the forthcoming "Round
the Bays" walk, I received an email from my daughter: "Where
is he and What have you done with my father?" I should add
that words of encouragement followed, and I enjoyed the gentle
"leg-pull". One of the benefits of the new regime is that I
get to see in much finer detail than ever before, the fabric
of the city in which I have lived for almost three decades.
With the aid of Google Maps, I have been mapping out 7km loops
which are the equivalent of "Round the Bays" with the added
advantage of putting me back at the car when I am done.
One such loop commenced in Waiwhetu, in the carpark of Woburn
Station on Cambridge Tce in Lower Hutt. It was a very warm day
by Wellington standards, mid to high twenties, with not a
cloud in the sky and just the lightest breeze. We walked along
the Eastern side of Cambridge Tce, across the road from the
railway line towards Naenae. The housing at this end of the
road is pleasant middle of the road stock. Most of them
probably date from the 1950s or earlier, and are generally
well kept, often with lovingly set out gardens. Mature shrubs
and trees and off road parking are the norm here. Most of the
streets in this area have historical names associated with the
Royal Navy. Names such as Hawkins, Rodney, Grenville, Vincent,
Collingwood, and Hardy may not mean much to the modern
resident of the area, but are interesting to anyone with an
interest in the history of that time.
Adjacent to Lower Hutt Station (formerly Waterloo Station), is
Trafalgar Square. I am not sure if this is yet another
Nelsonian allusion, or merely the work of some expatriate
Englishman in the town planning department, nostalgic for a
distant home. Since it was nearing five in the evening, the
railway line was busy with all the rush hour trains in quick
succession.
The road passes under the Waterloo Rd bridge into Epuni, and
instantly the character of the housing drops a notch or two on
the socio-economic scale. My guess is that there is a higher
proportion of rental property in this suburb. Many of them
have either been purchased by their occupants, or else simply
occupied for a long time by their tenants, and they too have
well tended lawns and flower beds, though perhaps fewer of the
gracious trees and shrubs observed earlier. A far higher
percentage of these houses are in some state of neglect, with
uncut grass, and peeling paint. Nevertheless the people who
are about seem cheerful and healthy enough. A number of young
mothers are about, pushing small children in various kinds of
buggy.
This is a significant arterial road in the valley so the
traffic is busy, and the trains keep rattling by. As we
progress along the street, it fascinates me that the quality
of the housing rises and falls in distinct bands. A nicely
kept house is likely to have a similar one for a neighbour.
Likewise the rough ones have kindred company. I am sure there
is a study to be done in there somewhere. We reach Clendon St,
with its small outpost of light commercial properties, and
turn right until we get to Naenae Rd, and turn South again.
This is yet another artery, a route to other places for most
of us, but it is better presented than most of Cambridge Tce.
Amazing what a difference roadside tree planting does to the
look and feel of a suburb. The trees also provided welcome, if
intermittent, relief from the warmth of the late afternoon
sun, and already after just 4 km on the walk, I was wishing I
had not left my water bottle in the car. Somehow, there is
less variation on this street than there is one block to the
West. Naenae Rd joins Waiwhetu Rd, and we turn on that still
walking steadily Southwards, parallel to Cambridge Tce,
heading back towards Waiwhetu. There is a little shopping
centre at Epuni, hairdressers, some ethnic fast food shops and
the inevitable dairy (translation 7-Eleven for Americans). By
the time we reach Waterloo Rd again, I am feeling
uncomfortable for the lack of fluid, and under spousal duress,
we divert from our originally intended route back down
Waterloo Rd and onto Cambridge Terrace again to get back to
the car more quickly. Of course the car is like an oven and
the water is lukewarm, but it was a considerable relief to wet
the throat.
More practice needed, and smarter thinking. A few more
practice circuits before the event itself, I think.
----
Any text above this point, and all subsequent material in
parentheses, and concluded with the initials "BH" is the
personal opinion of Brian Harmer as editor of this newsletter,
or occasionally "GS" will indicate an opinion from our
editorial assistant. In all cases they are honest expressions
of personal opinion, and are not presented as fact.
All news items (except where noted otherwise) are reproduced
by kind permission of copyright owner, Newstalk ZB News. All
copyright in the news items reproduced remains the property of
The Radio Network Limited.
Sponsorship this week is from an anonymous donor in Canada.
Many thanks as always.
----
On with the News.
Monday, 26 January 2009
~~~~~~~~~~~~~~~~~~~~~~~
BANKING WITH A SOCIAL CONSCIENCE
--------------------------------
A nationwide banking network which would inject profits back
into local communities is being spearheaded by the Porirua
City Council. Chief executive Roger Blakely says the banks
would be run by independent, community owned companies. He
says the councils' only roles would be to provide the space
and facilitate the move. Mr Blakely says he is working with
Kiwibank and six councils around the country to implement the
banks, based on a similar initiative in Australia. He says the
move will inject money back into the council through rent
payments and all the profits will be distributed back into the
community.
(As I understand it, the proposal is that the local councils
would not be involved in the banking operation itself, but
would, for a fee, provide some space in or near the councils'
own offices. I am not sure I understand why Rodney Hide is so
opposed to this. - BH)
BANK UNLIKELY TO BOW TO ECONOMISTS
----------------------------------
All eyes will be on the Reserve Bank on Thursday for a
substantial cut in the official cash rate. Some bank
economists are calling for another 1.5 percent reduction,
which would take the OCR down to 3.5 percent. Business
correspondent Roger Kerr says it is unlikely the bank will be
so bold as inflation would have to be heading towards one
percent to justify loosening the interest rate so much. He
believes inflation is not likely to get that low, even when a
slew of figures show the economy going backwards.
(Well, there goes Mr Kerr's reputation as a forecaster - BH)
AA CONFIDENT NEW ROAD WON'T BECOME BOTTLENECK
---------------------------------------------
The Automobile Association is confident the new Northern
Gateway toll road north of Auckland will eventually make
things easier for people travelling between Auckland and
Northland. Huge queues built up on the road's first day
yesterday, as sightseers took advantage of the two day offer
to travel on the road at no charge. At one point, the entire
7.5 kilometres of the highway between Orewa and Puhoi was down
to a crawl. AA spokesman Simon Lambourne says it was only to
be expected on a sunny holiday weekend. He says in future, the
road will definitely make for a better journey. "What this
road does, is it gives motorists a choice. They can take the
free alternative road along the coast which will still
experience some congestion I foresee, or they can take the
toll road." Mr Lambourne says the trip will be much safer on
the new road. Mark Walker, from New Zealand Transport Agency,
agrees that the new road is an improvement. He says the old
route is very windy and hilly and always a struggle for heavy
vehicles. The toll, which comes into force tomorrow, will be
$2 for cars and $4 for trucks.
(I often wonder what is the basis for some of the statements
made by, or on behalf of, the AA. The organization seems to be
accorded "expert witness" status by the media. My suspicion is
that employees of the organization often express personal
opinions based on their own biases and convictions, and yet
they are perceived as either the outcome of some scientific
investigation, or else the considered opinion of the
association's membership. I don't suggest any deliberate
wrongdoing by anyone here. Rather, I think that the
association's spokespersons should make clear the source and
basis for their utterances so that they can be given
appropriate weight. They often say things that most certainly
do not represent my opinion as a member - BH)
Tuesday, 27 January 2009
~~~~~~~~~~~~~~~~~~~~~~~~
AIR NZ DISAPPOINTED JOINT VENTURE DENIED
----------------------------------------
Air New Zealand says it is disappointed its proposed joint
venture with Air Canada has been denied. The Australian
Competition and Consumer Commission has refused authorisation
to Air New Zealand and Air Canada for the proposed cooperation
agreement. The airline says the decision is in stark contrast
to trends in Europe, USA and Asia where airlines are
consolidating in response to toughening economic conditions.
It says the continuation of many services operated by airlines
is increasingly under threat as demand falls and the decision
by the commission is of concern. Air New Zealand is
considering appealing the decision.
TELECOM APOLOGISES FOR BROADBAND FAILURE
----------------------------------------
Telecom is apologising to its online customers following a
broadband glitch. 10,000 customers are without web access
because of a fault in Telecom's online network in Wellington.
Parts of the city, eastern North Island and areas of the South
Island have been affected. Telecom spokeswoman Katherine
Murphy says the company will offer compensation for customers
affected by the outage for more than 24 hours. She says
technicians hope to have the problem fixed by late this
afternoon.
(I think that Bruce Simpson's comment in Aardvark this week is
relevant. Given the absolute dependence of many forms of
business on the Internet, an apology just doesn't cut it when
it comes to a three day outage. - BH)
LABOUR KEEN TO HELP BUSINESSES
------------------------------
The Labour Party is discussing how it can help small
businesses suffering in the recession. The party is holding
its first caucus meeting of 2009 at Waipuna Lodge in Auckland
today. Labour party leader Phil Goff says small businesses are
the core of the employment market and Labour will look at how
it can help them ride out the economic downturn. He says the
Government made a mistake by cutting research and development
and axing tax credits.
(Phil, you are in opposition. You have no power to spend money
any more. You can't do anything much at all. - BH)
GOVT TASK FORCE ON HEALTH
-------------------------
The Government has announced a high powered ministerial task
force to sharpen the focus of health delivery in the public
system. Heath Minister Tony Ryall has charged the group with
coming up with a way of giving doctors and nurses more say in
the health system. Mr Ryall says it is part of a commitment
National gave during the election campaign to improve
frontline services. He believes users of the system want less
bureaucracy and waste, with patients being treated sooner and
better. The taskforce is part of the agreement National
reached with the ACT Party. It will be headed by former
Treasury Secretary Murray Horn and will include the director
general of health and other health professionals. It will
report back to the Government within six months.
("High powered", eh? I think the motive is a good one though.
But I think the solution requires organizational behaviour
experts, not health professionals. It needs someone to point
out that health, education, and many other sectors have far
too many people in what is called "the centre" whose job it is
to invent complex processes for others to comply with, and to
monitor that compliance. Like the lilies of the field "they
neither toil nor spin, yet I tell you, even Solomon in all his
glory was not arrayed like one of these" (Matt 6:29). These
people with the interesting job titles contribute very little.
They are not health professionals or educators yet they absorb
a disproportionate share of the budgets in those sectors. -
BH)
GREENPEACE FURIOUS WITH WHALE QUOTA
-----------------------------------
Greenpeace is furious at a secret whaling deal made with
Japan. New Zealand and other members of the International
Whaling Commission have reportedly reached an agreement
allowing Japan to kill more whales. In return, the country
must phase out scientific whaling, or impose an annual limit
for the Southern Ocean. Whale campaigner Carly Thomas says all
the agreement does is legitimise Japan's bogus scientific
whaling. Ms Thomas says intense pressure will now go on the
IWC to be more transparent in its dealings with Japan.
MONETARY POLICY CALLED INEFFECTIVE
----------------------------------
New Zealand's monetary policy is being described as
ineffective. The Manufacturers and Exporters Association says
recent drops in the Official Cash Rate have failed to suppress
inflation. Chief Executive John Walley says the only way to
stimulate the economy is through fiscal policy. He says banks
across the world have cut their base rates to very low levels,
but they are still not lending. Mr Walley says the Government
should implement rules on deposit guarantees to ensure
taxpayer money is not used to increase bank margins.
MAORI LAND MAY BE THE KEY TO AFFORDABLE HOUSING
-----------------------------------------------
Plans to free up the restrictions on building on Maori land is
one Government initiative to make housing more affordable.
Housing Minister Phil Heatley says big steps are being taken
to help the many thousands of New Zealanders who cannot afford
new homes. They include streamlining the Resource Management
and Building Acts to cut back bureaucracy and ultimately
reduce house prices. Mr Heatley says the recent property cycle
has been so extreme, it suggests there are fundamental
problems with how the market is operating, particularly around
land. He says breaking down barriers to building on
communally-owned land will be one of the priorities. Mr
Heatley says often multiple-owned Maori land is rurally zoned,
so no matter how large the chunk of land is there can only be
a couple of houses on it. He says he is very conscious of the
plight of existing home owners and investors who have seen the
value of their properties diminish in recent months, citing
lower interest rates and impending tax cuts as factors that
would soften the blow. A 2009 Demographia International
Housing Affordability Survey showed New Zealand has the second
most unaffordable housing, behind Australia. The survey took
place across 265 markets in six countries.
ANDERTON DEFENDS KIWIBANK INITIATIVE
------------------------------------
The man who pushed to set up Kiwibank is defending its
initiative to open branches in local council offices. The
Porirua City Council is the first to implement the scheme,
which involves councils providing the space while independent,
community-owned companies run the banks and profits go back
into the community. Local Government Minister Rodney Hide is
against the move, saying councils should stick to their core
business and reduce costs, but Jim Anderton says it is a great
idea and has been successful for Australia's Bendigo Bank. Mr
Anderton says there are no extra costs involved and it adds an
extra stream of revenue, with the local bodies getting a share
of the profits to put back into the community. The Progressive
Party leader says the proposal provides local outlets for a
proven locally owned idea.
NO MORE FREE RIDE
-----------------
The free ride is over for motorists keen to try out the new
electronic toll road north of Auckland. Vehicles now have to
pay a toll to use the Northern Gateway motorway, after two
days of free travel. It will cost $2 to drive a car along the
route between Orewa and Puhoi and trucks $4. Motorcyclists,
caravans and trailers will not be charged for using the new
stretch of road. During the weekend, there were long queues of
traffic on the new road intended to stop just that problem, as
motorists took advantage of the toll-free days.
(Amazingly, the bureaucrats around Auckland seem to be issuing
instructions that officials must go round the long way rather
than incur the $2 fee. - BH)
BUSINESS BOOMING FOR BUDGET TOURISM
-----------------------------------
While some tourism operators suffer, business is booming for
holiday parks and backpacker hostels. The Tourism Industry
Association's latest monthly survey of businesses shows 60
percent have had positive rather than negative trading over
the Christmas period. Spokeswoman Sarah Berry says while
international visitor numbers are down 5-10 percent, domestic
tourism has held up strongly over summer. She says the
increase in business for the likes of holiday parks may be due
to people looking for a cheaper holiday in tough economic
times. Ms Berry says when Australia is taken out of the
equation, the figures show a 10-15 percent drop in long-haul
international visitors. She says operators who market heavily
to Britain, America and Asia will be finding it the toughest.
BANKS URGED TO PLAY FAIR
------------------------
Further cuts to the official cash rate will only help farmers
if banks start playing ball according to Federated Farmers.
Economists predict the Reserve Bank will cut the OCR by 100
basis points on Thursday. A recent survey carried out by
Federated Farmers shows the average overdraft rate for farming
businesses is 10.4 percent, more than twice the current OCR.
Auckland Federated Farmers President Philip York says it shows
banks are not passing on the full extent of the Reserve Bank's
last large cut in December. He says the Reserve Bank must
closely examine banks' growing bank margins. ?Since the RBNZ
began to cut the OCR back in July last year, farm businesses
have not seen these cuts reflected in their financial
facilities. If the OCR is cut again on Thursday, this must be
addressed by banks." Mr York says by not passing on savings to
business customers, banks are not allowing businesses to
retain profit, reduce debt and retain staffing levels in the
current economic climate.
Wednesday, 28 January 2009
~~~~~~~~~~~~~~~~~~~~~~~~~~
FEWER POKIES REFLECT LOWER RETURNS
----------------------------------
New Zealanders spent slightly less on the pokies in the final
quarter of last year. The Department of Internal Affairs says
spending on gaming machines dropped by around one percent in
the three months to December. Spending dropped from $232.3
million as of September 30, to $230.7 million by December 31.
Internal Affairs director of gambling compliance Mike Hill
says the number of gambling machines dropped from 20,025 in
the September quarter to 19,879 in the December quarter.
FARMERS DISAPPOINTED AT PAYOUT
------------------------------
The Fonterra Shareholders' Council says farmers are surprised
and disappointed at the level of the cut in the forecast
payout. The forecast payout for the 2008 and 09 season has
dropped 90 cents, to $5.10 per kilogram of milk solids.
Council chairman Blue Read says that has shaved off around a
billion dollars in farm revenue, which will impact on the
wider New Zealand economy. He says from an initial projection
of seven dollars, that is close to a 30 percent reduction in
payout for the year, which means less money will filter down
through to the community. Blue Read says the reduced income
will impact on farmers ability to service their debts.
(Disappointment is understandable. Nevertheless, returns from
milk are, and will always be, driven by the global commodity
market and the currency exchange rates, neither of which are
amenable to the will of Fonterra. If they accept the rewards
of the good times, they need to accept the pain of the hard
times. - BH)
BIG UPGRADE FOR WHANGAREI PARK
------------------------------
A 16 million dollar multi-use events centre will be built in
Whangarei. The district and regional councils have formally
given the project the go-ahead at respective meetings this
morning. Construction at Whangarei's Okara Park will begin
within days and is scheduled to be finished in May next year.
The new stadium will include a 200 seat convention centre and
space to host a variety of community events and sports games.
The contract also contains provision for the hand-over of a
new pitch and refurbished north stand by August this year -
meaning Northland rugby will be able to host NPC night games
at Okara Park.
CALL FOR MAORI TO LEAD ECONOMY
------------------------------
The Minister of Maori Affairs has announced he will establish
a Maori Affairs Ministerial task-force on the economy. Pita
Sharples has made the announcement at an economic workshop in
Wellington, where he is addressing the impact of the economic
crisis on Maori and New Zealanders. Dr Sharples says he wants
Maori to take a leading role in the nation's economy. While
the workshop is focusing on Maori business and economy, Dr
Sharples is calling for leadership for the benefit of New
Zealand as a whole.
FUNDING REVIEW WELCOMED BY NURSES
---------------------------------
Nurses want their voices heard in the Government's health
funding review. The Government is setting up a ministerial
task force to streamline the delivery of public health. The
Nurses Organisation welcomes the move and is confident the
review will find that those working in health deliver
extremely high value care. President Marion Guy says nurses
provide excellent care despite having to work under difficult
circumstances with low staff levels that are often unsafe.
("Streamline" has sinister connotations. My bet is that the
senior civil servants mean "achieve more, cost less". I
believe the Nurses, on the other hand, know full well that
they are already doing more than is feasible with the little
they have, and they harbour fond delusions that the review
will discover this and agree to pay more. - BH)
Thursday, 29 January 2009
~~~~~~~~~~~~~~~~~~~~~~~~~
KIWIBANK WON'T CUT MORTGAGE FEES
--------------------------------
Interest rates are tumbling on the back of the Reserve Bank
slashing the Official Cash Rate by one and a half percent.
Kiwibank responded almost immediately cutting rates by up to
one percent, with its two year fixed rate now at just on six
percent. There has been a call today from Labour leader Phil
Goff for the banks for waive their mortgage break fees for
those facing hardship. But Kiwibank boss Sam Knowles says that
is not possible. He says if the bank lends at four years they
have to borrow at four years and the cost of breaking a
mortgage would then fall on the bank. Mr Knowles says however
there are good lending propositions out there at the moment.
FLETCHER TAKEOVER OF STEVENSON'S?
---------------------------------
The Commerce Commission says it is considering key issues
surrounding an application by Fletcher Building to take over
the Stevenson's Group Whangarei business. Fletcher Building is
seeking to acquire up to a 100 percent stake. The Commerce
Commission says it is considering whether there are
alternative buyers and if they were to buy out Stevenson's
masonry business, whether it would result in a better outcome
for competition. No date has been set for a decision on the
clearance process.
RETIREES SHOULD LOOK TO SHAREMARKET
-----------------------------------
The drop in the Official Cash Rate will be tough to swallow
for many retirees. The Reserve Bank has lowered the OCR by 150
basis points, bringing it to a record low of 3.5 percent.
Financial columnist and author Mary Holm says retired people
need to budget better and invest more money in shares. She
says a lot of people have money invested in term deposits and
returns from these a dropping dramatically. Many people are
reluctant to invest in shares because they find the idea
scary. However she says with good professional advice, now is
the time to invest in the sharemarket.
(And which shares does Ms Holmes suggest are immune to the
risk of being wiped out in value? I always heard that you
should not have more in shares than you can afford to lose. -
BH)
BANKS START LOWERING INTEREST RATES
-----------------------------------
Kiwibank is the first of the main banks to drop home loan
rates following the Reserve Bank's decision to cut the
official cash rate by 150 basis points to 3.5 percent.
Kiwibank's lowest rate is the one-year fixed-term, which is
down 0.3 percent to 5.69 percent. Its two-year has dropped one
percent to 5.99 percent and the floating rate is down 0.5
percent to 6.49 percent. Chief Executive Sam Knowles says
Kiwibank is determined to keep leading the market and pushing
through savings for customers as soon as possible. Farmers
have been complaining that banks are milking business
customers by keeping their rates high but Mr Knowles denies
the accusation. He says Kiwibank has been pushing through
savings for all customers. "Our business rates are probably
the most competitive in the market and we've continued to
bring them down. In business, everyone has an individual rate
according to their risk and we've certainly brought them down
significantly this year." Reserve Bank Governor made special
mention of banks in his statement this morning. He told
financial institutions he expects them to lower their lending
rates, although he did not state what the rates should be.
"This isn't Muldoon days. The Government doesn't tell the
banks what the interest rate ought to be. It's a comment about
the direction and behaviour rather than a comment about
levels. We do not tell the banks what rates they should be
setting."
TREASURY FORECAST WRONG BY OVER $7 BILLION
------------------------------------------
Treasury continues its track record of wildly fluctuating
forecasts today, with the release of the Government's
financial statements. The Government financial advisors were
more than seven billion dollars out on the predicted state of
the Government's books in December. In the five months ending
November the books went into the red to the tune of $5.7
billion, against a December forecast of a $1.4 billion
surplus. It is the global recession that has been hard to
read, particularly when it comes to the investments of the New
Zealand superannuation fund, which has suffered more than four
billion dollars worth of losses. With the economy slowing tax
revenue was also down on forecasts.
FINANCIALLY DRAINING TIME FOR PARENTS
-------------------------------------
Back to school costs are expected to put a huge drain on the
finances of an increasing number of parents this year. Murray
Lucas, the principal of Tawa College in Wellington, says it
can cost more than $800 to kit out a year nine student with a
new uniform and stationery, as well as an activities fee. He
is expecting a significant number of calls from parents who
cannot afford the cost, but says they do have some options. "A
second hand uniform is one thing and I wouldn't be buying too
many of any particular clothes item because you don't want to
commit yourself to clothes that won't be the right size over a
period of time." Mr Lucas says parents should get in touch
with their child's school if they are struggling financially.
INTEREST RATES SLASHED TO RECORD LOW
------------------------------------
The Reserve Bank has reduced the official cash rate to a
record low. It has been slashed 1.5 percent to 3.5 percent,
the lowest since the OCR was introduced in 1999. Bank Governor
Alan Bollard says the news coming from New Zealand's trading
partners is very negative with the global economy in
recession. But he believes efforts by governments to ease the
financial crisis will pay off. "Globally, there has been
considerable policy stimulus put in place and we expect this
to help bring about a recovery in growth over time. However,
there remains huge uncertainty about the timing and strength
of a recovery." Dr Bollard says the Reserve Bank expects the
impact on New Zealand of these developments to be greater than
it thought when it last cut rates in December, as a result of
a more negative outlook for the terms of trade and exports and
tighter credit conditions. ?Inflation pressures are abating.
We have confidence that annual inflation will be comfortably
inside the target band of 1 to 3 percent over the medium term.
"Given this backdrop it is appropriate to take the OCR to a
more stimulatory position and to deliver this reduction
quickly." Since July last year, 4.75 percentage points have
been sliced from the OCR. Dr Bollard says lower interest rates
will have a positive impact on growth in conjunction with a
lower exchange rate and fiscal stimulus. But he says that also
depends on firms and households not unnecessarily restricting
their spending. He is also sending a warning to financial
institutions to play their part by passing on lower wholesale
interest rates to their customers. Dr Bollard says he expects
any further reductions to the OCR to be smaller than the
recent cuts.
SUPPORT STAFF FEAR BEING TARGETED
---------------------------------
Hospital support staff are expecting to be unfairly targeted
by the ministerial group established to review health
spending. Public Service Association national secretary Brenda
Pilott says the work by administrative and clerical staff
enables doctors, nurses and other clinical specialists to
focus on treating patients. She says claims by the Health
Minister that there is too much bureaucracy and wasteful
spending in health are rubbish. Mrs Pilott says about $12.2
billion is spent each year on the health service, with less
than two percent of that spent on administration and planning
for future health needs. She says despite promising to be
inclusive, the Government has not included anyone to represent
staff working in public hospitals or the ministry. Mrs Pilott
says any staff cut backs in the health sector will do nothing
to improve the service patients receive.
(Sorry to disagree, but there are far too many administrative
processes and procedures surrounding health and education
delivery. Too many people measuring and monitoring. It has
been said that there are now more administrators than hospital
beds. Elimination of some of these would at least make more of
the budget available for direct health delivery - BH)
NZ STILL SAFE FOR TOURISTS
--------------------------
Tourism New Zealand says it works hard to prevent visitors to
the country becoming the targets of crime. Jucy Rentals says
news of a Dutch couple being subjected to a sex attack while
camping in Southland last month has led to campervan bookings
being cancelled. Cass Carter from Tourism New Zealand says
obviously something like this does not help New Zealand's
reputation. She says it is important visitors to the country
are well-advised of any safety issues and the industry is
constantly working with Government agencies and other
associations. But she says overall, New Zealand is still seen
as a relatively safe destination compared with other
countries.
HIGH RATES OF MAORI UNEMPLOYMENT FEARED
---------------------------------------
The Maori Affairs Minister is bracing for high rates of Maori
unemployment. At the Maori Economic Forum in Wellington
yesterday, Pita Sharples announced plans to set up and chair a
Maori Affairs Ministerial Taskforce on the Economy. He expects
Maori will make up around half of unemployed people and could
face problems such as poverty. Dr Sharples says it is
important to keep the economy bubbling along during the
recession and not to close up shop. He says giving small
businesses a tax vacation is one good idea to come out of the
forum. "It will certainly enable, in some cases, people to be
kept on in employment and that would be a big first step." The
forum also suggested training Maori in areas where there were
labour shortages. Dr Sharples will set up and chair a Maori
Affairs Ministerial Taskforce on the Economy, which will be
the catalyst of the good ideas suggested at the forum. The
forum brought together 80 Maori business and tribal leaders
and people working in the community.
Friday, 30 January 2009
~~~~~~~~~~~~~~~~~~~~~~~
KEEP RESEARCH AND DEVELOPMENT
-----------------------------
Treasury is recommending the Government retain the Research
and Development tax credit. National is scrapping the tax
credit, and the $700 million Fast Forward Fund, to replace it
with its own initiatives. But Treasury is recommending the
Government keeps the R&D tax credit, for at least the next
five years, and it also says the Fast Forward fund should be
retained. Labour leader Phil Goff says the government should
be embarrassed it is ignoring Treasury's advice for "political
reasons".
(Without necessarily sharing the podium with Phil Goff, I do
think that R&D is part of the solution to our present
situation, and that cutting back on it will delay recovery. -
BH)
CTU WANTS SKILLS FUND AND SUBSIDIES
-----------------------------------
ANZ National is accusing bank workers' union Finsec of
scaremongering. Finsec says ANZ National has announced 100
local job cuts this week, claiming 90 roles will be sent
offshore to India. ANZ National says the cuts were announced
in April last year and are not a new initiative. It says the
jobs it plans to move to Bangalore are limited to operational
processing work, but can't give exact numbers on how many of
its nine and a half thousand New Zealand staff members may be
affected. ANZ National says like other businesses, it has to
look at new ways to increase productivity and efficiency to
better serve its customers -- Federated Farmers is singing the
praises of Rabobank. It is the first to drop its variable base
rate for business customers, by 1.5 percent, passing on the
full saving from yesterday's Official Cash Rate cut. Auckland
President Philip York says their survey last week found banks
had been hoarding much of the OCR cuts since last July. He
says Rabobank's move is commendable and they need
congratulating. The Council of Trade Unions has met with
Business New Zealand and the NZX to discuss its ideas for
avoiding major job losses as the recession worsens. Its
proposals include a skills fund, new training subsidies and
job search and retraining allowances. President Helen Kelly
says both Business New Zealand and NZX chief executive Mark
Weldon have acknowledged the need to invest in skills
training. She says everyone has the goal of mitigating against
the recession, but action is needed.
SHOCK AWAITS THOSE WHO BREAK MORTGAGE
-------------------------------------
The Banking Ombudsman's office is being flooded with
complaints from bank customers who want to break their fixed
term mortgages, but do not want to pay the fee. The fee can
amount to many thousands of dollars for early repayment.
Ombudsman Liz Brown says breaking a mortgage contract can be
costly to the bank, which would find it difficult to on lend
the money at the same rate the customer was paying on a fixed
term loan. However Mrs Brown says banks should tell their
customers how early repayment charges are calculated. She says
banks could be more helpful when customers want information
they are entitled to. Labour leader Phil Goff says banks
should waive the fee if a customer is forced into a mortgagee
sale.
KIWI DOLLAR TAKES A BATTERING
-----------------------------
A currency expert says there are several factors dragging down
the New Zealand dollar. It hit a six-year-low overnight and is
now sitting at just under 51 US cents. BNZ currency strategist
Danica Hampton says the dollar was battered by yesterday's
Official Cash Rate cut and growing fears of a global
recession. She says with Crown accounts being so far in the
red and the trade deficit being worse than expected, it is bad
news for the NZ dollar.
NEW SCHEME TO BREAK GANG CONNECTIONS
------------------------------------
A psychologist is helping prisoners cut ties with gangs.
Corrections reports principal psychologist Paul Whitehead has
set up a programme for offenders released from Waikeria
Prison's drug, violence and high risk behaviour special
treatment units. Corrections spokesman Steve Barry says gang
affiliations increase the risk of reoffending, so the units
unashamedly encourage men to walk away from their gang
lifestyles. A week after leaving the units, prisoners attend a
whanau hui with their family, probation officer and cultural
support. Paul Whitehead says the hui are a good first step to
help released prisoners and their families understand the
dangers of re-offending.
MAJOR BUDGET BLOWOUT ON PROPOSED TUNNEL
---------------------------------------
The Government has ordered an investigation into alternatives
for an Auckland roading project, following a major budget
blowout. The Waterview Connection was to have cost $1.89
billion. The proposed tunnel between Mt Roskill and the
Northwestern Motorway has now been costed at 2.77 billion
dollars. That amounts to 1.6 percent of GDP, or around four
times the total current annual state highway construction
budget. Transport Minister Steven Joyce is asking for
alternatives to the tunnel option. He says while the Waterview
Connection is crucial to the completion of the Western Ring
Route, the Government cannot sensibly commit to funding a
project of such expense without considering other options.
BUILDING CONSENTS PLUMMET
-------------------------
Housing building consents have plunged to their lowest level
in 22 years. Statistics New Zealand figures reveal 1,127 new
housing units were authorised in December 2008, which is the
lowest since January 1987. The number of consents granted has
fallen 49 percent since the June 2007 peak. From 2007 to 2008
the number of consents fell by 28 percent. For the year ended
December 2008, there were 18 and a half thousand consents
given out, seven thousand less than the previous year. The
value of consents fell from $6.4 billion to $4.9 billion over
this time, a 1.5 billion dollar drop.
FALLING INTEREST RATES IMPACT ON ELDERLY
----------------------------------------
The elderly will suffer the most from falling interest rates,
as deposit rates slump to below five percent in some cases.
Age Concern Canterbury CEO Stephen Phillips says many elderly
have term deposits and depend on the interest earned to
provide some of the necessities of life. However, with rates
reducing, he says older people are finding they do not have as
much disposable income as they had expected.
BANKS' PENALTY CALCULATIONS A MYSTERY
-------------------------------------
Some property investors are complaining that they are locked
into long-term home loans at high rates as interest rates
plunge. Auckland Property Investors Federation president Sue
Tierney says people are upset they were persuaded to fix
mortgages at high rates and now cannot get out of them because
the banks are charging "exorbitant" charges to break the
contracts. The worst penalty she has heard of for breaking a
loan is $41,000, which for most people is unachievable.
President Sue Tierney says people are looking for ways to take
advantage of falling interest rates, but bank fees are
prohibitive. She says it is difficult to work out how the
banks calculate the fee. "They are so confusing for the
ordinary New Zealander to try to understand, and they give up
before they get past the first line. The calculations are also
very, very different at each and every bank." Kiwibank was the
first to announce it was dropping its interest rates further
following the Reserve Bank's cut in the official cash rate to
3.5 percent yesterday. Kiwibank's floating home loan rate has
gone from 6.99 to 6.49 percent, its one-year fixed-term rate
from 5.99 to 5.69 percent and two-year rate from 6.99 to 5.99
percent. Westpac's new floating rate has gone from 7.49 to
6.89 percent, its one-year rate has dropped from 6.8 to 5.79
percent and its two-year rate has reduced from 6.85 to 5.89
percent. ASB has reduced its floating rate to 6.90 percent and
all fixed-term loans to 5.95 percent. BNZ has reduced its
floating rate from 7.49 to 6.99 percent, its one-year rate
from 5.99 to 5.79 percent and two-year rate drops 5.99 to 5.89
percent. ANZ and National banks have reduced floating rates
from 7.5 to 6.95 percent. SBS Bank has dropped its floating
rate to 6.45 percent.
MAORI WANT MORE SAY IN JUSTICE SYSTEM
-------------------------------------
A lawyer and activist wants a Maori justice system introduced
to help better combat Maori crime. Moana Jackson was
commissioned by the Justice Department in 1985 to research
Maori views on the criminal justice system and Maori
offending. He did some follow up research at the end of last
year with iwi and hapu and is now writing a report. Mr Jackson
says Maori want and need more input. He says in order to
properly deal with Maori crime, Maori justice processes need
to be re-established. He says once that happens, Maori crime
will be dealt with more effectively and the rate of Maori
offending will drop. He says an important part of
rangatiratanga that is guaranteed to Maori in the treaty, is
the right to look after their own people. Mr Jackson says
prior to 1840, Maori had control over their own people and
there was already a legal system in place which the Crown
chose to ignore. No decision has been made on whether people
will be able to choose which system they would be tried under.
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