Subject: 24 May, 2009
----- WYSIWYG NEWS ------------------------------
Copyright, Brian Harmer.

Wipers slapping, tyres hissing, and with the heater on set on
high, we drove to Wanganui in perhaps the roughest journey
yet. I complained of the italicised wind last week. From
there, with few brief fine interludes, it has been all
downhill. In fact my mother, having heard the forecast, rang
trying to dissuade us from making the journey to visit her.
Since it was her birthday and we don't get to see her as often
as we would like, it was going to take more than a bit of wind
and rain to deter us.

By now, you might have gathered that this is a journey that we
have done so often that we do it almost on autopilot. On a
good day, the beauty of the landscape can compensate for the
familiarity. On a day such as this, however, there is no such
compensation. Nobody wants to drive behind anybody else, or to
sit in the swirling clouds of road spray from the vehicle
ahead, unable to tell whether the road ahead is sufficiently
clear for safe overtaking. If the vehicle ahead is a heavy
truck with its herd of tyres all stampeding in the same
direction, the turbulent cloud in its wake is enhanced with
flying gravel. Sure enough a ping and there is a star shaped
crack in the windscreen. Thank heavens for "no-fault" glass
cover.

We got there, and back, though the nearer we got to Cook
Strait on the homeward journey, the stronger the wind became,
with the car being buffeted by gusts in the region of 140
km/h. In the days that followed, swells as high as 17 metres
were recorded in the strait, and ferries which are limited by
considerations of passenger comfort and safety to seas not
exceeding 4.5 metres, ceased to run. The airport was likewise
closed to all smaller aircraft, though the Boeings and Airbus
jets continued to make what must have been exciting arrivals.

As I write, sheets of rain are still sweeping in from the
South, but I think we are past the peak of the storm. Down the
driveway, over the noise of the still stiff wind, I can hear
the sound of chainsaws, as a neighbours clear away the carcase
of a tree which succumbed to high winds and waterlogged roots
and crashed across the entrance. I believe we have more of
this to come.

See you next week.
----
Any text above this point, and all subsequent material in
parentheses, and concluded with the initials "BH" is the
personal opinion of Brian Harmer as editor of this newsletter,
or occasionally "GS" will indicate an opinion from our
editorial assistant. In all cases they are honest expressions
of personal opinion, and are not presented as fact.

All news items (except where noted otherwise) are reproduced
by kind permission of copyright owner, Newstalk ZB News. All
copyright in the news items reproduced remains the property of
The Radio Network Limited.

Sponsorship this week is courtesy of my friends, Louise and
Clay Sollers of Fortuna, CA. If you do make that next trip
this year I hope you will call in.
----
On with the News.

Monday, 18 May 2009
~~~~~~~~~~~~~~~~~~~

INDUSTRY RESPONDS TO SOW CRATE FARMING
--------------------------------------

The pork industry says graphic images of sow crate farming
shown on TV are not normal practice in New Zealand. It is
promising to fully support the Agriculture Minister's
investigation into the farm in question. Spokesman Sam McIvor
says the industry is phasing out long-term use of sow crates -
and is halfway to achieving that. He says the plan will see
the time pigs spend in crates reduced to four weeks. Mr McIvor
says consumers need choice and some people are happy to pay a
premium for free range products.

(There is a distinction to be made between farrowing crates
and the dry crates in which certain farmers keep the pigs all
of the time. Farrowing crates are designed to prevent the sow
from rolling on, or otherwise attacking the piglets. The
others are, frankly, an abomination. - BH)

SUPER CITY AGENCY NOT QUITE READY
---------------------------------

The Government appears to be having some trouble forming the
agency which will effectively take over the running of
Auckland. Legislation putting the agency in place was passed
over the weekend, despite filibustering by Labour. The make up
of the transition agency was meant to have been announced
today, but Prime Minister John Key says it is not quite ready
yet. "We're working on the make up of that. We're just
finalising the last name and who might chair that. It's an
important decision, it's going to be a very important agency
over the next 18 months - we need to make sure we get it
right." The agency is now expected to be announced tomorrow.
Labour's Auckland Issues spokesman Phil Twyford says it
appears Cabinet blocked Local Government Minister Rodney Hide
wishes, which is embarrassing for him. Mr Twyford says after
the Christine Rankin debacle the last thing Mr Key needs is
another minister running amok with the appointments process.

(The committee as finally announced differed from the rumoured
composition, mainly in the inclusion of a woman - BH)

NO EXTRA SCREENING FOR DOMESTIC FLIGHTS
---------------------------------------

Security screening for domestic air travel will not be
extended by the Government. The proposal was put forward in a
report into aviation security, which followed the hijacking of
an Air New Zealand Link flight between Blenheim and
Christchurch last year. Transport Minister Steven Joyce says
the $160 million bill for extending security screening over
ten years would be too expensive and create too many costs.
Instead, he says, alternative security measures will be put in
place. These include; improving security training for airport
and airline staff, as well as strengthening cockpit doors on
aircraft and investigating having them installed on smaller
aircraft.

(No-one is likely to board one of the smaller planes and ask
to be taken to another country. I think the present approach
is pragmatic and appropriate. - BH)

BIG PURCHASES A NO-GO
---------------------

Financial insecurity has led most New Zealanders to decide not
to buy anything costing more than $2,000 in the next six
months. Market research company Perceptive made the finding in
a survey of a thousand New Zealanders with incomes ranging
from $20,000 to more than a $100,000 a year. Managing Director
Chris Prescott says the survey shows most New Zealanders are
deeply worried about their finances, with 80 percent saying
they are going to spend less and save more. He says most also
do not want to know any more about the recession, which is
having a powerful effect on their spending habits.

FREEZE ON HIGHER SALARIES AT AIR NZ
-----------------------------------

Air New Zealand has put a freeze on the salaries of employees
earning more than $80,000 a year. The freeze will apply only
to those on individual employment contracts, not those on
collective contracts. It will cover the 2010 financial year,
from July 2009 until June 2010. The pay freezes will impact
one in 11 Air New Zealand staff. Chief Executive Rob Fyfe says
the decision to go ahead with pay freezes was not taken
lightly. He says Air New Zealand is looking at areas where it
can reduce labour costs without making people redundant.

INFRATIL POSTS $191 MILLION LOSS
--------------------------------

Infratil has posted a $191 million loss for the year ended
March. The company says it is largely attributed to $179
million of non-cash write down associated with listed
investments. Chairman David Newman says Infratil shares lost
29 percent of their value and did not deliver on the primary
goal of providing shareholders with superior risk-adjusted
returns. But he says despite sharemarket returns, the
company's financial and operational performance was
satisfactory. A dividend of 3.75 cents per share will be paid
in July.

GOVT URGED TO FOLLOW AUST'S LEAD
--------------------------------

A retirement investment specialist believes New Zealand should
take a leaf out of Australia's book when it comes to the
retirement policy. In this month's budget, Australia's
Treasurer Wayne Swan announced that the age a person is
eligible to receive a pension will rise from 65 to 67 by 2023.
In addition, retirement tax benefits for higher-paid
individuals would be reduced and the Government would stop
matching contributions to low and middle-income earners to pay
for a weekly increase for current pensioners. Retirement
investment consultant Paul Newfield says New Zealand's
Government must also address the issue of an aging population.
He says currently around 11 percent of the population is over
65 but in 2051 the number will rise to 25 percent. Mr Newfield
says raising taxes will be unpopular but the Government will
be aware the power of the 'grey vote' will grow in the coming
years. He says as the population increases, the issues
associated with an aging population will be exacerbated.

FOLIC ACID EXPECTED TO BE ADDED
-------------------------------

Bakers doubt the Government will scrap new rules requiring
folic acid to be added to all bread products. Officials from
the Food Safety Authority are examining the latest research
into the issue and a report will be ready for Cabinet by the
end of the month. The legislation is due to come into effect
in September. Folic acid is promoted as a way to reduce rare
birth defects such as spina bifida, however new research shows
it may cause an increase in colon cancer cases. New Zealand
has a high rate of colon/rectum cancer. Baking Industry
Association Executive Officer Belinda Jeursen says bakers are
concerned that adding folic acid to bread makes it a medicinal
vehicle. She says although the association is opposed to the
new rules, it is doing all it can to make sure its members
comply with the law. Ms Jeursen says despite the review of the
issue, she cannot see the rules being changed.

(As is often the case with well intentioned additives, there
are suggestions that it may cause negative problems for others
who don't need the folic acid. - BH)

LABOUR URGES CAUTION ON JURY CUTBACKS
-------------------------------------

Labour leader Phil Goff says the Government should not throw
out the baby with the bath water as it moves to reform the
court system. Justice Minister Simon Power is proposing jury
trials be restricted to those facing jail terms of three years
or longer, saying it is time to have a fundamental look at the
justice system. But Mr Goff says changes were made under the
Labour Government and included allowing depositions hearings
to be carried out through written submissions and majority
verdicts in jury trials. He says the justice system does
benefit from reviews, but the rights of New Zealanders must
not be taken away in the interest of short term solutions.
Wellington Law Society president Richard Fowler says while he
can see why Mr Power is considering restricting jury trials,
he is questioning whether it is the right move. He says jury
trials are such a fundamental and important right, he would be
very reluctant to see them diminished.

(At first sight, I think the idea of reserving jury trials for
more significant cases is a good one. I am not entirely sure
of the origin of our present "rights" to a jury trial, since
we don't have a written constitution. Probably the Magna
Carta. Such rights are not to given away lightly, but at
present the logjams in the courts are cutting across the
rights of accused and victims to a speedy resolution of
issues. - BH)

Tuesday, 19 May 2009
~~~~~~~~~~~~~~~~~~~~

HUGE EXPANSION FOR QUEENSTOWN
-----------------------------

A big expansion is needed at Queenstown International Airport,
to cope with a projected quadrupling of air traffic. Forecasts
suggest more than two million passengers a year are likely to
be using the airport within the next three decades. 22
hectares of land to the southeast will be needed to expand the
existing airport, however the airport doesn't own it. CEO
Steve Sanderson says they have been in discussions with the
landowners - Remarkables Park Ltd for some months, aimed at
reaching a deal both parties can be happy with. It is
understood the land had been earmarked as a golf course
reserve development.

(That's a shame. In my opinion, Queenstown is already "at
capacity" and a doubling of tourists would destroy whatever
vestiges exist of the town as it used to be  - BH)

LIFE EXPECTANCY ON THE RISE
---------------------------

Babies born in New Zealand can now expect to live at least a
year longer than those born at the beginning of the
millennium. Statistics New Zealand says newborn girls can
expect to live an average of 82.2 years, and newborn boys have
78.2 years ahead of them. It says life expectancy is just over
a year more for females, and a year and nine months more for
males since the beginning of 2000. Figures show the birth rate
is also up one percent from last year, with 64,160 children
born. Births exceeded deaths by just over 35 thousand. The
trend towards waiting before starting a family continues, with
women now having children about five years later than their
counterparts in the mid-1960s. The median age for becoming a
mother is now 30.

MORE MONEY FOR NEW MUMS
-----------------------

The Health Minister has announced extra money for maternity
services. Tony Ryall says an additional 100 million dollars
will be allocated to the sector over the next four years. He
says the extra cash will mean new mothers can stay longer at
birthing facilities, and will help meet the costs of an
increasing birth rate. Tony Ryall says it is all about
addressing some of the concerns women have had about maternity
services for many years. He says the Government does not want
a repeat of incidents where women have been sent home from
hospitals just hours after giving birth, with nothing more
than a 100 dollar supermarket voucher. Tony Ryall says the
funding will also go towards obstetric training for GPs, who
are looking to return to maternity care. However the Labour
Party says the announcement is vague and underwhelming.
Labour's Deputy Leader Annette King says the announcement
fails to tell women how services will actually be improved,
and gives little detail on how the Government plans to deliver
a longer period of post-natal care. She says it does not show
when it will begin, nor where the additional staff and
facilities to support the move will come from.

HIGHER PROFIT MARGINS FOR BANKS
-------------------------------

Banks' profit margins and falling oil prices were features of
the statistics released for the March quarter. Business
Correspondent Roger Kerr says Producers' Price Index shows a
big decrease in commodity and oil prices over the quarter led
to substantial reductions in import prices for the raw
materials and the output prices (the wholesale prices of the
goods that companies sell). Input prices were down 2.5 percent
and output prices were 1.4 percent lower. Mr Kerr says the
decreases in wholesale prices were far greater than
economists' prior forecasts which suggested there would be no
change. He says it may be the case that there will be much
less pressure on the consumer over the next 12 months with
lower prices for some products in the shops. The wholesale
price falls in the March quarter is the largest recorded since
the Producers' Price Index started in 1977 but Mr Kerr says
since the end of March, commodity and oil prices in
international markets have stabilised. Another situation to
come out of the statistics was the profit margins of banks
operating in New Zealand which rose 15 percent over the
quarter. It is the largest increase in bank margins since the
measure began in 1997. "It does add fuel to the argument the
banks are not passing through enough of the fall in the market
interest rates to their borrowers through lending rates. So,
more pressure has to be put on the banks, I think." Mr Kerr
says there are also indications of a lack of competition in
the banking sector.

WORKERS WANT CERTAINTY OVER COUNCIL
-----------------------------------

One of the country's largest unions is urging the Government
to name the board which will oversee the transition to
Auckland's super city. Cabinet has delayed the announcement on
who will run the Auckland council transition agency. A
spokeswoman for Local Government Minister Rodney Hide says no
decision has been reached and the names of board members will
not be revealed until next week. Richard Wagstaff, national
secretary of the Public Service Association, says it is unfair
to leave some 6,000 council workers in limbo. He says the
board will ultimately decide how many jobs will be slashed
when the region's councils merge. Auckland's mayor is backing
down on his claim that 40 percent of council jobs will be lost
when the super city comes into play. John Banks has said that
more than 2700 council employees could lose their jobs under
the new structure. He emphasised the potential efficiency of
the merger and predicts affordable progress, with rates caps
and fewer consultants. But Mr Banks has now said he was wrong
to suggest the 40 percent figure. He says fewer jobs will be
needed under the single council but he does not know how many
positions will go. He says he would not want to compromise the
work of people in local government or cause any unnecessary
anxiety by putting a number on job losses. Over the weekend,
the first bill passed into law allowing the single council and
a transition agency to be set up. The second bill outlining
details about the council, has been sent to a select committee
for submissions.

COCKPIT DOOR STRENGTHENING "SENSIBLE"
-------------------------------------

An aviation commentator says it is sensible to have secure
cockpit doors in any commercial flight. The Government has
decided that all planes with 30 seats or more will have
strengthened cockpit doors and that such doors be installed in
smaller aircraft. The proposal had been put forward in a
recently released report into aviation security and prompted
after the alleged attempted hijacking of an Air New Zealand
Link flight between Blenheim and Christchurch in February last
year. Transport Minister Steven Joyce says another option
involving installing security screening at smaller airports
would cost $160 million over 10 years which would be too
expensive. "We decided that on balance, that the cockpit door
strengthening and potentially adding cockpit doors to
(smaller) aircraft was likely to be the most effective change
at a reasonable cost to the travelling public." Mr Joyce says
extra work will also be done on security training for airline
and airport staff. Industry expert Peter Clark says coupled
with more education of airport staff, the Government's
response is totally adequate, given how low the risk of
terrorist attacks are in New Zealand. Asha Ali Abdille, is
accused of hijacking a passenger flight from Blenheim to
Christchurch in February last year and the 34-year-old
Blenheim resident will stand trial in September. Two Air New
Zealand pilots were injured while trying to deal with the
incident.

Wednesday, 20 May 2009
~~~~~~~~~~~~~~~~~~~~~~

MP SEEKS CRACKDOWN ON LOAN SHARKS
---------------------------------

Labour MP Charles Chauvel wants more regulation and
restrictions for private lending businesses. He is seeking
political support for a private members bill which would
reshape current rules on the industry. Mr Chauvel says it is
not about stopping people from borrowing money, or preventing
loan agencies from lending it. He says all he is trying to do
is ensure reasonable interest rates are charged, not excessive
ones, and that lenders make proper inquiries about a
borrower's ability to repay. Mr Chauvel argues current
arrangements are seeing borrowers stung with interest rates of
up to 2000 percent per annum. He says the bill has support
from the Progressives, the Greens and the Maori Party, but he
would like to see the Government adopt it as legislation.

(I am a supporter of legislation against loan sharking as long
as the penalties involve boiling oil - BH

NZ'S COMPETITIVENESS IMPROVES
-----------------------------

New Zealand has improved three places to 15th out of 57 on the
world economic competitiveness scoreboard. The improved
ranking in the IMD World Competitiveness Yearbook, helps close
the trans-Tasman gap, with Australia remaining static on its
7th placing last year. The United States remains number one.
New Zealand's improvement is due to improved economic
performance and infrastructure. The yearbook ranks countries
on their ability to create and sustain enterprise
competitiveness. This list introduced the new ranking of
stress test on competitiveness, which Denmark topped. New
Zealand came in 12th.

FUND SET UP FOR VITAL COMMUNITY SERVICES
----------------------------------------

Community groups providing vital services to families,
children and older people will get a helping hand during the
recession. The Government has just announced the creation of
the Community Response Fund. It will make around $40 million
available over the next year to community and voluntary sector
organisations that are struggling to keep up with demand
during the downturn. Regional panels with community
representation will approve applications from organisations
that meet a range of criteria.

MILESTONE FOR NEEDLE EXCHANGE PROGRAMME
---------------------------------------

New Zealand's Needle Exchange Programme is marking its 21st
birthday. The organisation aims to limit the spread of the
blood-borne diseases amongst intravenous drug users. In the
past 12 months, some 85,000 New Zealanders have had drugs
injected into them. Around three-million clean needles are
distribution annually via some 70 outlets. National manager
Charles Henderson would like to see the focus widen from HIV
and AIDS. He is also keen to see a greater commitment to
addressing the issues surrounding hepatitis B.

MORE BEDS NEEDED IN MATERNITY SECTOR
------------------------------------

Midwives say extra Government funding for maternity services
will mean new mothers can stay longer at birthing facilities
but the shortage of beds will have to be addressed. Health
Minister Tony Ryall has announced an additional $100 million
will be put aside for maternity services over the next four
years. Karen Guilliland, chief executive of the College of
Midwives, says it is the first time post-natal care has been
the focus of a comprehensive funding package. "We're very
delighted about it. Post-natal services have been the poor
cousin for a long time so it's great to see some energy put
into it." Ms Guilliland believes the new funding will also
help to meet the costs of an increasing birth rate but she
says the sector suffers from a lack of beds and a challenge
for the District Health Boards will be to find innovative ways
to use the money to free up more beds.

Thursday, 21 May 2009
~~~~~~~~~~~~~~~~~~~~~

POWER COMPANIES LAWFULLY EXPLOITED MARKET
-----------------------------------------

New Zealand's power companies have been found to have lawfully
exploited their market power to raise wholesale electricity
prices. A Commerce Commission report into Contact, Genesis,
Meridian and Mighty River Power clears the four companies of
any price fixing. It says they did not take advantage of
market power for any anti-competitive purpose. But it has
found the four companies legally used market power to charge
an extra $4.3 billion, more than they would have earned had
the conditions been competitive from 2001 to 2007. The
commission has also issued a warning to TrustPower for
attempting to enter into an anti-competitive agreement with
Genesis in 2004.

(A plague on all their houses - BH)

PUT POWER PRICES ON HOLD - BROWNLEE
-----------------------------------

Power generators are being told to put electricity price rises
on hold until a review of their charging system and structure
is completed in September. The generators have been accused by
the Commerce Commission of gouging more than $4 billion more
than they should have out of consumers by using their market
dominance to overcharge. Energy Minister Gerry Brownlee, who
has ordered the review, says it would be audacious if they
raised their prices while these allegations are out there.
"There is something fundamentally wrong in the way in which
we're marketing electricity in New Zealand." The generators
who stand accused are state-owned Meridian, Genesis and Mighty
River Power and privately owned Contact.


WEAKER US$ GOOD NEWS FOR TRAVELLERS
-----------------------------------

The New Zealand dollar is expected to climb higher against the
greenback as the US dollar loses ground and the risk appetite
picks up. The kiwi hit 61 US cents early this morning, but has
now dropped back to around 60.5 US cents. Less than three
months ago the New Zealand dollar had dropped below 49 US
cents. ASB chief economist Nick Tuffley says that for two
years, there has been an environment that has seen sentiment
change from day to day, meaning there will continue to be ups
and downs. But he believes the New Zealand dollar will
continue to rise and that it is conceivable it could hit the
mid-60s by the end of the year.

UNIONS PLAN TO SWITCH KIWISAVER PROVIDER
----------------------------------------

The KiwiSaver market is in for a shake up. Unions which are
using KiwiSaver provider Iris plan to make an announcement
about a scheme to merge into an existing larger provider.
Investment writer Mary Holm says people who do not want to be
with the new merged provider can easily switch to another
provider. "People don't realise that all you have to do is
ring the new provider, the one you want to move to and they
will contact the old provider and they will contact IRD and do
all the shuffling." Ms Holm says a merger of KiwiSaver
providers has been expected because there are too many of them
in the market.

RECESSION-BUSTERS PUT ON THINKING CAPS
--------------------------------------

A hundred entrepreneurs are meeting in Auckland today to
discuss ideas which could pull New Zealand out of the
recession. The New Zealand Entrepreneurial Summit in Greenlane
will choose five ideas to present to Commerce Minister Simon
Power. Coordinator and Just Water chief executive Tony
Falkenstein says there is nothing like a recession to
encourage entrepreneurs to come up with great opportunities.
One idea which has already been put forward is giving tourists
a free flight to New Zealand in return for prepaying a $10,000
visa card to spend on their holiday in the country. He says
the idea will get a lot of publicity, encourage people to come
to New Zealand and bring in international students. Mr
Falkenstein says there are a lot of passionate New Zealanders
who want New Zealand to take a new position on the world
stage.

RIVER IRRIGATION NOT AS EFFICIENT
---------------------------------

Farmers in mid and south Canterbury are being warned a new
river-only irrigation scheme will not be as reliable as
building a dam. The planned Waianiwaniwa Valley Dam is a
crucial part of the Central Plains Water scheme but is likely
to be rejected by Environment Canterbury-appointed
commissioners. In a reprieve of sorts yesterday, CPW was
allowed to continue with the project proposal, but without
plans for the dam. CPW chairman Pat Morrison says reliability
of supply with the dam would have been around 97 percent but
the new plan will reduce the figure to around 80 percent. He
says CPW still wants to go ahead with the proposal.

Friday, 22 May 2009
~~~~~~~~~~~~~~~~~~~

GOVT TO SPEND $10 MILLION ON TASERS
-----------------------------------

Next week's Budget will see an additional $10 million spent on
equipping the police with tasers. Just over $5 million will be
spent this year deploying tasers throughout the country. It
will bring the number of the stun guns available to police to
more than 700, with 3,500 police officers trained to use them.
Tasers have been trialled in four districts and Police
Minister Judith Collins says each gun will be equipped with a
camera to ensure they are not misused. She says the police are
frequently confronted by methamphetamine fuelled criminals and
it is the Government's job to ensure they have the equipment
to keep themselves and the public safe.

KIWIFRUIT GROWERS SEE GOLD
--------------------------

Returns for kiwifruit growers for last season's crop are up 11
percent. Zespri says it promised to deliver returns per tray
at least 65 cents up on the previous year but has delivered an
average increase of 75 cents. The company has reported an
after tax profit of nearly $24 million for the year ended in
March. Chief Executive Lain Jager says Zespri generated record
returns in its key markets. Europe remains the largest market,
with record sales of 60 million trays of kiwifruit. Mr Jager
says tropical-tasting Gold kiwifruit has been a success story,
as its flavours target a unique set of consumers who prefer a
sweeter more tropical taste.

(This is bitter sweet news for those whose crops were
demolished by hailstorms in the Bay of Plenty a week or two
back - BH)

SUPER CITY MEMBERS NAMED
------------------------

The agency with the huge task of designing Auckland's Super
City has been announced. Mark Ford, chief executive of the
region's water wholesaler, Watercare Services, and chairman of
the Auckland Regional Transport Authority is to chair the
Auckland Transition Agency, as widely expected. Mr Ford - Mr
Hide's choice to chair the agency - has his critics, including
an anonymous smear campaign saying he has a "secret transition
plan" for the water industry with overtones of privatisation.
Some National Cabinet ministers are understood to have had
concerns about his conflicts of interest heading Watercare and
the transport authority. Accountant John Waller, who chairs
the Bank of New Zealand and the Eden Park Redevelopment Board,
and Wayne Walden, a former boss of Farmers Deka and former
Maori Television chairman also join the agency, along with
former Rodney mayor John Law and lawyer Miriam Dean, QC. The
agency has the job of restructuring the eight councils into a
single entity by October 31 next year. It will be one of the
largest mergers in the country, involving about 6800 council
staff and $28 billion of assets. The Government passed
legislation under urgency on Saturday to set up the agency
with wide powers. The legislation also set up the Super
Auckland Council as a legal entity. The agency will be able to
review any council decisions during the transition period that
may "significantly prejudice the reorganisation" and will
approve council contracts worth more than $20,000 that run
past June 2011 and council borrowing beyond then. Mr Hide said
the powers of the agency were strong, but they were needed to
effect the transition. Green Party local government
spokeswoman Sue Kedgley has called the powers of the agency
"draconian".

AUCKLAND WATER PRICES TO RISE
-----------------------------

The price of water and waste management for Aucklanders is set
to rise. Metrowater is putting up its prices, saying it needs
the extra cash to maintain essential investment. From July
first charges will increase by almost six percent, which
amounts to around $13 more for an average household each
quarter. CEO Jim Bentley says the increase brings Metrowater
into line with other providers in the Auckland region, ahead
of the formation of the new super council.

MORE CENTRAL CITY-DWELLERS WANTED
---------------------------------

Christchurch City Council wants more people living in the
central city. It has released a draft plan for the five inner
city parcels of land the council bought last year from
struggling developer Dave Henderson. The council plans to
build a mix of residential and office space on all the sites,
including medium density housing at Sydenham Square. Council-
owned buildings, such as the civic offices in Tuam St will be
turned into office space and apartments. The council wants a
thousand more people living in the city as a result.

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