18/11/10 - English tips economic growth to pick up in 2011

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Forecast growth will be lower than expected in the half year economic and fiscal update to be released next month, Finance Minister Bill English says.

He said the economy was recovering but growth would not really pick up until next year.

Exports were increasing and unemployment dropping, with more than 40,000 now in jobs than at the same time last year, Mr English said in his speech to the Cullen Employment Law Firm breakfast today.

The recovery was a sustainable one based on savings and investment rather than borrowing and consumption, he said.

That trend created a strong platform for faster economic growth and would create jobs, higher incomes and better living standards in the medium- to long-term.

"In this new world, growth will need to be based on savings and investment and it will need to be led by the earnings side of our economy -- namely the export sector," Mr English said.

The change meant a flatter economy in the short term because growth was not driven by the retail and housing sectors, he said.

Forecast growth for the year to March 2011 was likely to be lower than expected but would bounce back the following year.

Low growth was also impacted by the weak global outlook and fiscal impacts of the Canterbury earthquake.

"It will mean slightly higher deficits in the short term before improvements show through."

The Government would publish its first Investment Statement at the same time as the half year update.

That statement would set out the Crown's assets and liabilities and identify emerging issues, Mr English said.

"The Crown is the largest single investor in a capital constrained economy. It is therefore vital that the Crown invests its capital efficiently.

"We believe this level of transparent information -- in a regular publication -- will allow the public to demand a much greater level of accountability from the Government," he said.

(Source National Business Review)

12/11/10 - Key accepts Wong's resignation

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Prime Minister John Key has accepted the resignation of Pansy Wong as a minister.

In a press release just out Mr Key said:

“I was informed today that Mrs Wong had used her Parliamentary travel entitlement to pay for parts of her husband’s travel in China in late 2008, where he conducted private business,” Mr Key says.

Mr Key said he was extremely disappointed to “lose a Minister who has been an effective and hard-working representative for the ethnic community and New Zealand”.

However, he said Ms Wong had taken the appropriate step by resigning.

“It is important that MPs and ministers treat taxpayer money with the utmost respect” he said.

Mr Key told reporters in Japan Ms Wong may have to pay back thousands of dollars that may have been misspent as part of her ministerial travel perk.

"On the face of it, this is a breach of travel entitlement rules and Mrs Wong has been unable to assure me it is a one-off breach."

The Speaker Of The House has commissioned an investigation by Parliamentary Service into the Ms Wong’s travel claims.

It was revealed this morning that Ms Wong used her travel perk to accompany her husband, Sammy, on a failed business trip.

Ms Wong has released a statement saying she had not lived up to self-imposed high standards.

“It is beyond my wildest dreams that a baby girl born in Shanghai, China, grew up in a Hong Kong apartment where eight families shared a single kitchen and bathroom to be New Zealand’s first List MP, first constituent MP of Botany and first Cabinet Minister of Chinese and Asian ethnicity.

“That dream is not mine alone and it comes with expectation, responsibility and hope. I have tried every single day to keep that dream alive and nothing should happen to dash that dream.

“That dream can only be kept alive by living up to the high standard set by the Prime Minister and myself. Therefore I have given my resignation as a Cabinet Minister to the Prime Minister.”

Documents show Ms Wong signed as a witness to her husband’s deal between Pacific Hovercraft NZ and China-based Lianyungang Supreme Hovercraft. The agreement is also signed by Ms Wong’s husband, Sammy, who is named as a co-director of Lianyungang Supreme Hovercraft.

The business deal collapsed with Lianyungang Supreme Hovercraft being pursued for $800,000 in royalties.

Ms Wong has admitted using the travel perk to pay for her tickets.

The perk, which gives MPs heavily discounted air fares, is only for private use.

Last night Ms Wong’s office said the trip to China was a holiday.

Prime Minister John Key will make a statement about Ms Wong’s decision from Japan, where he is attending the Apec summit.

3 News political editor Duncan Garner is in Japan with Mr Key and says the Prime Minister will stand down Ms Wong shortly. He is currently speaking to her on the phone.

Ms Wong is the current Minister for Ethnic Affairs and Minister of Women’s Affairs.

Georgina te Heuheu will be the Acting Minister for the Ethnic Affairs and Women’s Affairs portfolios.

(Source 3 News)

09/11/10 - Labour wants constitution consultation

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Labour expects the Government to consult with it over a constitutional review to consider such issues as Maori representation, leader Phil Goff says.

The review was part of the National-Maori Party supply and confidence agreement and a paper on it has been considered by Cabinet at least twice.

Mr Goff said constitutional issues should be decided on a non-partisan basis but the Government had made no effort to contact his party over the review.

"The Government, I presume, will make an approach to try to get a cross-party agreement on something as fundamental as constitutional change in New Zealand," he said.

"I think the whole process should be inclusive, and that includes talking to all the parties across Parliament."

Prime Minister John Key said the Government had not yet decided when it would consult other parties.

"That's something we're going to have to consider, not just Labour but other political parties," he said.

"You'll remember that its genesis came from the confidence and supply agreement with the Maori Party so that's been our initial body of consultation ... between National and the Maori Party."

However, the nature of the review meant it was likely other parties would be consulted.

(Source NZPA)

10/11/10 - Employment indicator points to modest growth

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The latest Leading Indicator of Employment is forecasting modest employment growth over the coming quarters, says Hon Kate Wilkinson.

The quarterly Leading Indicator of Employment uses a broad range of information to give advance notice of turning points in the labour market.

"This indicator forecasts employment will grow between 0.5% and 1% per quarter over the next three quarters", says Ms Wilkinson.

"This is in line with other economic data and shows that the labour market recovery is now well underway," says Ms Wilkinson.

The LIoE continued to increase during the September 2010 quarter and has now recorded five quarters of positive change since September 2009.

The Leading Indicator of Employment is issued quarterly, following the Household Labour Force Survey.

A range of data is used to inform the indicator, including the ANZ Commodity Price Index and the Stock Market Index.

For more information about the Leading Indicator of Employment go to: http://dol.govt.nz/publications/lmr/lioe/

(Source Beehive)

10/11/10 - Wrong speech, minister

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It is easy for MPs to become confused about tax legislation, and none more so than Jonathan Coleman.

The unfortunate Dr Coleman, Minister of Immigration and Minister of Broadcasting, was last night given the task of introducing the first reading debate on the Taxation (International Investment and Remedial Matters) Bill in the absence of Revenue Minister Peter Dunne.

His 10-minute speech was flawlessly delivered -- but it wasn't about the Taxation (International Investment and Remedial Matters) Bill.

Someone had given him the wrong speech. He was apparently reading a speech Mr Dunne delivered on July 23, 2008, on the Taxation, International Taxation, Life Insurance and Remedial Matters Bill.

Opposition MPs became suspicious and started voicing concern but Dr Coleman wasn't to be deterred and doggedly continued to the end.

When it came to Labour revenue spokesman Stuart Nash's turn to speak, he was open about it.

"I challenge the minister to show me the clauses that talk about payroll giving, that talk about insurance companies, and all those other matters he brought to the attention of the House in his speech because there are no such clauses in this bill," he said.

"The minister gave the wrong speech. He spoke for 10 minutes about a bill that was passed 12 months ago and he didn't notice."

Green Party co-leader Russel Norman explained to people who might be listening to Parliament on the radio: "You may be somewhat confused about which bill we are talking about. The reason you might be confused is that the minister introducing the bill read the wrong speech."

That led Dr Norman to wonder how confident Parliament could be about whether the Government knew what it was doing with tax law.

Mr Nash, and other Labour MPs, forgave Mr Coleman. They pointed out taxation wasn't anywhere near the minister's portfolios and said it was therefore easily understood how he could have talked about the wrong bill for 10 minutes.

None of this made any difference to the bill before the House or the process that followed. It passed its first reading on a unanimous vote and was referred to the finance and expenditure select committee.

(Source National Business Review)

10/11/10 - Migrants’ journey plays out on stage

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A tale about migration, identity, truth and reconciliation looks set to rock the boat on stage.

Passage, by Fiona Graham, is a new play that features four women who laugh, lie, kick, push, insult and tease, all within the confines of their abandoned boat.

The show was first inspired by Brazilian artist Ana Maria Pacheco's sculpture of a life-sized boat, called the Longest Journey, but for the English-born playwright the journey from script to stage was also lengthy.

"I had written a trilogy of plays and I wanted to build on this work and write from the longest journey," she says.

Passage was initially commissioned by the British Art Council in 2002.

At that time illegal immigrant entry through the English Channel tunnel from France was widely reported in the news.

Ms Graham says the script has undergone extensive research and development, as well as an Auckland relocation in 2004. It has also been read and influenced by many practitioners who have left an imprint on the text.

The Grey Lynn resident says because Passage reflects New Zealand in transition, it can't help but have international relevance.

"I've always been fascinated by the stories of people forced to leave their land. It's been a passage for me too – moving to New Zealand and working on this."

With help from designer Stephen Bain, the multi media production uses film to provide a boundless ocean backdrop, while drawing on the acting talents of Rachel Nash and Donogh Rees.

Performance graduates Lavinia Uhila and Antonia Stehlin make their professional debut.

"It's been such a cool experience. Visually I think it's exciting. It's an epic journey that's beautifully reflected," Miss Stehlin says.

The all-female cast is directed by Lauren Jackson who says she loves how dynamic the play is and how gutsy the women characters are.

"It's an exciting piece of theatre and the coming together of lots of things I love."

Passage by Fiona Graham premieres tomorrow night at the Herald Theatre, Aotea Centre, at 8pm and runs until November 20. Tickets cost $20 and $25.

(Source Central Leader)

10/11/10 - International education continues to grow

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The number of international students enrolled to study in New Zealand is continuing to increase, says Tertiary Education Minister Steven Joyce.

Latest enrolment figures show an increase of nearly 5% for the first eight months of this year, compared to last year (from 78,905 to 82,577).

"International education contributes at least $2.1 billion to our economy and supports about 32,000 jobs, so it is pleasing to see the sector continue to grow despite strong competition from Australia and other countries," says Mr Joyce.

"The fact that international students choose to live and study here is a testament to New Zealand's education system.

"The government is keen to work with providers to further improve the quality and scale of New Zealand's international education sector."

International students currently make up around 13% of the student roll in New Zealand universities, compared to an average of more than 20% in Australian universities.

Mr Joyce says there is great potential for international education to contribute more than it does already to New Zealand's economic and social growth over the next fifteen years and beyond.

"The government is excited by the possibilities stemming from growth in this area - that's why continued and sustainable growth of the sector is an important part of our economic growth strategy."

(Source Beehive)

09/11/10 - Law on illegal migrants 'inadequate'

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Prime Minister John Key will discuss tighter laws against people-smuggling with his Canadian counterpart this week after a review by officials found New Zealand laws are inadequate to cope with the arrival of a boatload of illegal migrants.

Canada has toughened up its laws on human smuggling after a Thai cargo ship carrying nearly 500 Sri Lankan Tamils was captured in its territorial waters.

The crackdown has strengthened existing legal language to increase the likelihood of convicting smugglers and establishes mandatory minimum jail sentences of up to 10 years.

John Key will discuss Canada's legislation with Stephen Harper, that country's Prime Minister, during a scheduled bilateral meeting between the pair at this week's Apec meeting in Yokohama, Japan.

"We are looking at what our response should be and whether our current legal settings are appropriate," Mr Key said.

"The conclusion we have come to is that they are not."

Mr Key has warned for some time that a boatload of refugees might pick New Zealand as its destination.

"People say they can't come to New Zealand. But if they can go twice as far to Canada, they can come to New Zealand."

While not flagging where the laws were deficient, the Prime Minister said the question was how to process people and determine their legal rights, including the right to appeal against decisions on refugee status.

"You really can't do anything once they get into your territorial waters. Even if you give yourself the legal rights to do something, there is the practical element of women and children [being on board]. If they can get into your economic zone, you've got to process them."

As New Zealand pushes for a free trade deal with Russia, Mr Key is seeking a bilateral meeting with President Dmitry Medvedev.

Mr Key does not have a bilateral scheduled with President Barack Obama, but the pair will likely talk during the weekend.

(Source John Armstrong, NZ Herald)

04/11/10 - Tobacco reforms given green light

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Cabinet has given the green light to tobacco reforms, including removing displays in shops and providing for instant fines for those caught selling to minors.

The Maori affairs select committee only yesterday tabled a report with recommendations including strict measures aimed at halving smoking by 2015 and turning New Zealand into a smoke-free nation by 2025, but aspects of it, including banning displays, have been under consideration since March.

Associate health minister Tariana Turia said Cabinet announced today that it was backing a package of increased control measures focused on the retail environment including:

• prohibiting any visible display of tobacco products for sale
• tighter legislation around the display of trading names for tobacco outlets;
• enabling smokefree enforcement officers to issue instant infringement fines to those selling tobacco products to people under the age of 18;
• clarifying that any contracts and agreements covering trade rebates and discounts for selling tobacco which are inconsistent with the Smokefree Environments Act are legally void.

The changes will be brought in by amendments to the Smokefree Environments Act, with a bill set to be introduced to Parliament before the end of the year and enforced next year.

Mrs Turia said tobacco cast a "long shadow of death and disease that has touched almost every household in New Zealand".

"This Government is serious about reducing the threat to the lives of New Zealanders, and this is another strong step in realising this commitment."

She said there were still plenty more steps to take, but was now more confident than ever of New Zealand eventually becoming a tobacco-free nation.

The select committee wanted the Government to reduce the amount of tobacco imported, force tobacco products to be sold in plain packaging, extend smoke-free areas to vehicles, ban vending machines and make tobacco companies fund smoking cessation products.

The Government has 90 working days to respond to its recommendations.

Parliament went into urgency in April, following a push by Mrs Turia, to bring in legislation raising excise tax on tobacco, which led to the price of a packet of cigarettes rising 10 percent, and roll-your-own tobacco rising 14 percent overnight.

(Source NZPA)

03/11/10 - Select committee wants NZ smokefree by 2025

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A Parliamentary inquiry into the tobacco industry is calling for New Zealand to be smokefree by 2025.

That’s just 15 years from now.

The report is from the Maori Affairs Select Committee and is due out officially tomorrow, but has been leaked to 3 News.

More than 5000 New Zealanders die each year of smoking-related illnesses.

The select committee has the blowtorch on the tobacco industry with an inquiry which has lasted all year.

MPs want tobacco consumption halved by 2015 and they want the country smokefree by 2025.

In other recommendations, MPs want the Government to force:

• Tobacco companies to pay for all smoking cessation drugs
• And to fund a campaign to de-normalise tobacco and the industry.

The report recommends reducing the amount of tobacco coming into New Zealand.

It wants plain packaging and nicotine levels to be reduced annually.

The committee also calls for a ban on retail displays, and limits to where cigarettes can be sold, as well as a ban on the word ‘tobacco’ in retail outlets.

“I’m very hopeful this will lead to huge changes in the way we treat tobacco in New Zealand,” says ASH Director Ben Youdan.

3 News asked Prime Minister John Key if he thought New Zealand could become smokefree in 15 years.

He said it would be a “huge ask”.

The inquiry also recommends the Government continues to increase excise tax.

“It is the number one deterrent,” says Mr Key. “We will keep doing that.”

Both National and Labour agree the crackdown on cigarettes and the tobacco industry has to be done.

But both parties are also wary of moving too fast and turning off voters who may accuse them of being too nanny state.

This is a bold report, and now the anti-smoking lobby is demanding a bold response from the Government.

(Source 3 News)