Neu: 2001-09-23 Contents of this issue: 1. New Competition 2. Statutory Management? 3. Home Loans ======================================================================== September 23rd, 2001 1. New Competition: The former Cook Island National Line vessel Ngamaru 111 called at Niue Saturday under the name of MV Black Bart. The vessel is registered in Vanuatu and was purchased in Auckland after it was put up for sale following the demise of the CINL. The new owners plan to run a regular Auckland-Tonga-Niue- Auckland service to compete with the New Zealand based Reef Shipping Company which calls at Niue every three weeks. The MV Black Bart unloaded several containers and cars within two hours and headed south for New Zealand with a part-container load of taros. 2. Statutory Management? Air New Zealand is preparing for statutory management.Reports from New Zealand today say the board of the national carrier will ask the Government today to appoint a statutory manager after major shareholders Singapore Airlines and Brierley Investments rejected an ultimatum from the board on Friday to immediately commit to an $850 million rescue package. A statutory manager has the power to allow the business to continue operating, repay debt, negotiate with creditors, lay staff off, sell parts of the business or form a new company from the viable business and sell that company. Unlike receivership, where the interests of creditors come first, under statutory management the rights of the creditors are set aside. Banks could not take possession of assets used to secure loans and landlords could not evict the company from its offices. It is expected that future bookings, the air points system and other customer services would continue as at present. Sources said management and advisers had spent the weekend negotiating with Air New Zealand's bankers to ensure they did not repossess aircraft owned by Air New Zealand when they flew overseas. The aircraft were used as security for loans.The Government could also be required to guarantee Air New Zealand's debts. 3. Home Loans: Almost $2 million of New Zealand taxpayers' money has been given to 70 private homeowners living in "substandard" housing, for repair work under a government housing scheme. The money is given as interest-free "suspensory" loans, which are later written off, provided certain conditions are met. One group was given $50,000 "to assist with the purchase of building materials". Sixty of the families to benefit from the repair work, which included replacing rotten floorboards and unsafe verandas, live in eastern Bay of Plenty, with the rest in the Far North. Housing Minister Mark Gosche said that after the three-year suspensory loan had been granted, it was "written down" by one-third on the anniversary of the date that the work was completed. Three years after the repair work ended, the loan was totally written off. Families had been given money to fix water systems that had damaged walls and floors, failed septic tanks and drain fields, crumbling wooden floors, unsafe decks, electrical wiring systems, and to improve drinking water. ACT NZ housing spokeswoman Muriel Newman said offering interest-free payments of up to $50,000 of taxpayers' money for people to spend on their own private housing was wrong, and was a vote-buying exercise. __END__
