Keith Rankin’s Chart for this Week: Global Hoards and Government Deficits

September 23, 2015

Analysis by Keith Rankin.

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Governments defuse world’s money mountains.[/caption]

This week’s chart looks at private-sector surpluses and public-sector deficits in the global economy.

IMF data for combined world government balances (deficits for most countries most of the time) was available in 2011, and only for the 2000s’ decade. For the 1980s and 1990s, and the 2010s so far, I have used a regression technique.

(First I estimated ‘general government’ balances from 1994 based on the general relationship between combined advanced economies and emerging Asian economies with the global economy. Second, I used these estimates to establish ‘multiple regression’ relationships with USA, UK, Japan and France to extend my estimates for global government balances back to 1980.)

The ‘private sector’ is defined here as every party in the global economy other than governments. Because every deficit transaction must be matched by a surplus transaction elsewhere, the private sector balances are calculated as a simple mirror image of the government balances. I have used the ‘colours of the Spanish flag’ (see my Money, Flow and Debt; Evening Report 25 July 2015), with gold representing accumulations of private sector unspent money and red representing annual accumulations of government liabilities.

The important question is to establish which sector – private or government – behaves in a more autonomous fashion, and which sector largely accommodates to the choices made in the other. Economic neoclassical orthodoxy – the orthodox interpretation of market behaviour – has for a long time assumed that government financial behaviour is autonomous, and that government deficits ‘crowd out’ the private sector, denying the private sector opportunities to ‘grow the economy’ through the investment of its liabilities (ie investment of debt and equity capital).

The chart shows the unmistakable signature of money hoarding in the private sector in years following financial crises, which were also years of high global unemployment: 1982, 1988, 1992, 2001/02, 2008/09. The only alternative explanation is that governments suddenly got very greedy in these years; but, if this was the case, these would be years of very low unemployment, as governments competed with private firms for scarce labour.

The most plausible general interpretation is that, for the whole period, financial behaviour in the private sector is largely autonomous – determined by many individual firms and households making decisions informed by their interpretations of the circumstances that they face. It is not plausible to see in this chart a process of private businesses perpetually thwarted by financially rampant governments. Rather, the private sector’s natural mode of operation is to save significantly more than it invests, resulting in the accumulation of ‘hoards of gold’.

Government deficits are a necessary offset to these golden hoards. Government debt is the saviour of liberal capitalism, not its nemesis. Indeed the main cause of unemployment can be understood as the resistance by governments to borrow more from the private sector than it does.

If the world economy (output of goods and services sold) grows at three percent a year, then global government debt-to-GDP levels remain stable, and government deficits cannot be argued (even by the most rabid opponents of government deficit spending) to be a threat to the world economy. Further, this deficit spending by governments generates much of what world economic growth there is, creating both infrastructure and aggregate demand. Without it, the capitalist world economy would collapse.

Both neoliberals – who despise government spending – and others (such as Keynesians) agree that the perfect chart would be zero balances; the most boring chart imaginable. The challenge is to get us – private households and businesses – to spend (including genuine investment spending) our incomes and pay our taxes, allowing the world economy to tick over in a sustainable manner without governments having to borrow very much.

In the chart above, the red is a consequence of the gold. The long-run solution is for us in the private sector to stop accumulating ‘gold’, and allow the government deficits (the red) to fall in consequence.

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BNZ Economist Tony Alexander’s Economic Analysis – Sporadic Number 20

By Selwyn Manning -

September 23, 2015

MIL OSI Analysis – Source: BNZ Economist Tony Alexander – Analysis:

Summarised Outlook and Situation Report

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Tony Alexander, BNZ economist.[/caption] Growth in the NZ economy has slowed recently and business and consumer confidence levels have fallen. Risks internationally have shifted further to the downside – most notably with regard to China – and with the Federal Reserve backing away substantially from signalling they will raise rates shortly we need to consider how we could be living through the 1950s – 1060s again with sustained low interest rates. This outlook means ongoing support for housing markets around New Zealand though currently measures to slow Auckland’s pace of price rises are working and investors are flocking to the more affordable regions for a period of catch-up repricing.

Download the full analysis document here (pdf 285kb)

A Summarised Outlook and Situation Report Sporadic 20 I give regular briefings on the economic situation to BNZ staff and in my latest briefing this week these are some of the things I invited people to be aware of. Our economy continues to grow with improvement of 3% in the year to June but the pace of growth has slowed down from an average of 0.8% in the September and December quarters of 2014 to just 0.3% in the March and June quarters of this year. Given that agricultural production did an unsustainable recovery in output during the most recent quarter, and considering the strong 1.9% growth in population in the past year, one can reasonably say that underlying per capita growth has just about stalled recently. This near stalling would gel with indicators such as falling business and consumer confidence. Sentiment of consumers is now below average with the monthly ANZ Roy Morgan measure at 111 in September which is below the ten year average of 117 however not horribly so and the reading was an improvement from August’s four year low of 109.8. That tells us that people are not feeling exuberant but they are not indicating that they will be closing their wallets in the near future. Retailers can have expectations of a reasonable Christmas spending period but no strong surge. Why has growth slowed down and why do we see the annual pace slipping below 2% next year? There are the pluses which we have highlighted here many times of the lower NZ dollar and reversal of monetary policy tightening, along with good performances in most non-dairy export sectors, strong construction and the boost from above average population growth. However the story for 2015 is mainly one of negatives appearing and that is what we should be paying most attention to for the remainder of this year. So lets run through some of the things occupying the minds of many people currently, starting with the United States. Growth in the US is okay with good growth in employment in particular with full-time job numbers regaining their pre-GFC peak (we are ahead 6%). But there is no evidence of an acceleration in the pace of wages growth, the sharemarket is well off its peaks with some obvious continuing wobbles and worries about high valuations, businesses remain reluctant to invest, and the rising US dollar is sapping some export sector strength. Encapsulating the more cautious mood regarding the US economy was the Federal Reserve last week which decided not to raise interest rates for the first time since 2006. Specifically the Fed. cited worries about the Chinese economy. China is failing to make the desired transition from growth being driven by exports, investment, and house building to private consumption. In fact there seems little hope of this happening in the near future with worries about falling house prices amidst estimates of potentially 22 million empty apartments, huge sharemarket wobbles and weakness, and absence of welfare, education, and health reforms which would encourage people to reduce their high savings rates. It has become commonly accepted now that China’s growth numbers are works of fiction and estimates go as low as just above 3.5% for growth rather than the reported 7%. Recession in China in the near future is unlikely. But the monthly numbers continue to get worse and it is likely that after five cuts in interest rates since late last year, extra infrastructure spending, and easing of housing sector constraints that there will be further stimulus measures announced. Risks for now however lie on the downside and more attention is on China’s immediate growth prospects than prospects for any other country. That includes Japan where growth numbers are also coming in weaker than expected, inflation is falling away again and analysts openly talk of money printing failing and the third arrow of Prime Minister Abe’s economic policy – deregulation – not being big enough. Perhaps the Brace Blossoms’ rugby performance this week shows what the Japanese economy might be able to achieve if it opened itself to the presence of more foreigners. In our second biggest export destination of Australia growth is commonly seen chugging along above 2% with good growth in non-mining sector investment offsetting the ending of mining investment associated with the commodity super cycle which has now ended and probably won’t return for a generation. Dwelling construction is strong in Australia and businesses might have gained some hope that economic reform will be undertaken following the change in leadership of the governing party. However the new leadership’s ability to get legislation through the Senate may be as poor as the previous top team so the chances of Australia boosting productivity, cutting its relatively high labour costs, and boosting output in the near future still do not seem all that high. (This is highly relevant for our migration flows – discussed below.) But with the NZ dollar settling below 90 cents for now many NZ exporters can have a reasonable expectation of good sales of goods and services across the ditch in the coming year. In Europe forecasts have actually been raised ever so slightly recently by the likes of the OECD. But still growth of only near 1.5% is expected and the opportunity afforded to governments by the sense of crisis surrounding the GFC to introduce deep economic reforms has been blown. The financial sector remains bogged down with insufficient levels of bank capital, banks retreating to focussing on their home countries, labour markets remain rigid, debt levels are still high and rising, and as is the case with most other parts of the planet the ability of the Eurozone to cushion the economy in the event of a shock – such as a Chinese recession – is minimal. Interest rates are already near zero and money printing since early this year has failed to drive growth or even inflation upward. There is now open speculation that the European Central Bank may extend money printing beyond the current planned end-date of September 2016. Russia and Brazil are sinking into deeper recessions as the effects of corruption and plummeting energy export receipts wash their way through their economies. India is okay. The world economy is growing at a slightly below average pace with downside risks which the IMF and World Bank are likely to highlight next month when they update their economic outlooks. We should keep an eye on developments offshore, and as noted, in China in particular. On a positive note dairy prices on the Global Dairy Trade auction site have improved 48% in the past three auctions – which just goes to show that we cannot actually use the auction results in any strong way to gauge what the payout is likely to be for the season. There is too much volatility. But at least for the moment it is now looking like this season will have a marginally higher payout than last season. Dairying will nonetheless remain a drag on the economy this coming year through 2016. Another drag, almost, is construction in Christchurch. The reconstruction period took longer to get started than we all thought, but it seems to have peaked earlier than we were all thinking. An over-supply of houses appears to have developed with part of that being a price mismatch between what earthquake-displaced people can afford and the new houses which have been built. Up until recently we thought rising commercial building would more than offset the residential construction decline which is now underway and likely to persist for maybe three years. But the feedback coming out of the commercial sector is that construction costs are so high and so many businesses have either got comfortable outside the CBD or have already signed up to new premises in the inner ring outside the CBD that they are unwilling to pay the prices developers need in order to go ahead and get their projects rising from the earth. And with the infrastructure rebuild over 75% done probably the best we can expect is a plateau in Christchurch construction activity in the coming year. The risk however is that the city becomes a negative contributor to GDP – which is not a bad thing necessarily, it is just happening sooner than most of us were expecting, by around two years. Four Points On Housing In the housing market the four interesting things I have been pointing out in seminars are these. Buyers Purchasing Out of Auckland First, buyers are in a rush to secure property outside of Auckland, attracted by better yields, lower prices, absence of six years of big price hikes, and underneath all that a view that there is a catch-up in prices due in many places. I agree. History tells us this flow will stay strong for the coming year (assisted by low interest rates), that it will lead to a rise in house building outside of Auckland, and that in smaller locations some latecycle buyers will be badly caught out. But that is something for perhaps a couple of years from now. For the moment the excitement in the housing market has shifted outside of Auckland. Offshore Chinese Backing Off The second interesting housing market development is a plethora of anecdotes – and nothing more than anecdotes – of Chinese offshore buyers pulling back from the Auckland market. None are running scared and no-one has any stories of properties being sold. But some deals have been walked away from and the buyers are seeing too many little roadblocks being put in their way. None by themselves are deal killers – but the gestalt is becoming compelling.

-NZ IRD and foreign tax identifiers required from October 1

-Two year capital gains tax bright line test

-Consultation underway on a withholding tax from perhaps July next year

-30% minimum investment property deposit (not relevant for many buyers who have cash).

Note that it is not just offshore Chinese backing away from Auckland at the moment. Inexperienced, undercapitalised people who were entering the housing market from early this year feeling that they had to buy any old piece of crap to avoid missing out on “easy” money have also backed away – thank goodness. The figures do not show this yet, but they probably will before the end of the year. Speaking of figures, some showing the surge in housing activity since early this year are contained in lending data. The annual pace of growth in total household debt has accelerated to 6% in July from 4.8% in January. This is the fastest pace of debt growth since late-2008. Migration is Huge Third, given that population growth is an obvious factor influencing housing markets the fact that net migration inflows continue to go through the roof is supportive of markets all around New Zealand, though more so in Auckland which garners around 60% of the net flow. Data released on Monday show that the country’s annual net gain has risen to 60,300 in August from 59,600 in July and 43,500 a year ago. In seasonally adjusted terms the net monthly gain appears close to plateauing, suggesting the peak annual flow may end up very near 65,000 or a 1.4% population boost. In fact since flows turned positive in mid-2012 the population boost adds up to a total of 2.6%. For your interest, here is a table showing the net migration flow for each region since August 2012.

Back to the record net national migration gain of over 60,000 – here is the question to be answered. How fast will the turnaround in flows be? Given that economic expectations offshore are deteriorating, and that in Australia especially there is no sign that growth is about to take off, it does not seem reasonable at this stage to expect that the easing of the net migration gain will be sudden. Migration flows are likely to remain a stimulatory factor for our economy over the next two to three years. This will support the housing market in particular and suppress wage rises yet again while keeping the unemployment rate elevated while jobs growth likely remains firm. Back To The Fifties The fourth housing factor needing to be highlighted, which has huge relevance outside of housing, is the continued deterioration in expectations that borrowing costs are going to go up to any appreciable degree in the near future. In the United States last week the Federal Reserve expressed concern about the Chinese economy and decided not to start raising their 0.25% funds rate. The European Central Bank has openly opined about extending money printing because inflation shows no sign of approaching 2%. Our own central bank not only cut the cash rate another 0.25% two weeks ago, they also sounded more dovish regarding future growth, inflation, and the interest rates track than the markets had been expecting. A range of central banks are likely to ease their monetary policies in coming months. Given that high inflation tends to beget high inflation expectations it seems reasonable to expect that low inflation globally will beget low inflation expectations – and falling ones at that in many parts of the world. Low inflation is starting to get locked in, especially as businesses say they are getting less pricing power as consumers use modern technology to search for better prices when buying something. The chances are strong that just as all forecasts of a decent sustained hike in interest rates anywhere on the planet these past eight years have been wrong, so too will similar forecasts for the next one to three years. Frankly it seems best to stop thinking in terms of interest rates rising but not quite getting to levels of the 2000s, and instead think in terms of the post-WW2 period through to the eartly-1970s. Floating mortgage rates averaged less than 4% in the late-1940s. They crept slowly higher and two decades later were just over 6.5%. NZ floating rates are likely to reach an average near 5.75% within two months. Fixed interest rates in many cases will be over 1% lower than that. Welcome to the fifties – but without the milk bars and winkle-pickers. Low interest rates are supportive of debt-funded asset purchases. Property. Equities are supported not by low purchase funding costs but the search for yield outside of fixed interest and call rate products. Notice the double positive whammy then for housing – yield search, purchase cost. Miscellaneous NZ Dollar Risks for the moment lie on the downside, associated with weakish dairy prices, El Nino risk, US interest rates likely to rise next year, NZ GDP growth slowing. But speaking with people who have travelled in offshore business and investment circles recently it is clear that NZ is viewed as a nice, safe, reasonably yielding part of the world to place one’s funds and gain some primary product exposure to long-term growth associated with improving Chinese and Asia consumer buying. The Kiwi dollar is unlikely to drop substantially below current levels. Personally speaking below US 60 cents looks attractive, as does below 87 Aussie cents, 39 British Pence. Oil As global growth forecasts and predictions for Chinese growth in particular get scaled back, oil prices have been falling anew. It is true that US shale oil production is likely to back off quite a bit in the coming year as capital supply dries up. But ready-to-tap inventory in the ground looks strong, Iran’s oil is likely to hit world markets in the coming year, and OPEC cohesion seems minimal. No-one talks about Peak Oil any longer, new huge gas fields seem to appear every few months, Japan is slowly restarting nuclear electricity production, and ever so slowly solar energy collection becomes more efficient. Energy costs look like remaining low for many years. Hence the coal industry faces continued bleak times, the energy exploration and development sector faces many weak years, and you and I slowly will think about doing the opposite of what so many other people are doing and we will buy bigger cars (SUVs) rather than those little ones that seem to be populating our roads like midges. Dead Wood The world is awash with liquidity. That means lots and lots of people, managed funds, companies, are looking for places to store their cash and hopefully earn a reasonable return. Were New Zealand’s capital markets more sophisticated than they are we could be attracting huge quantities of funds into our country to back our many ventures – rather than just a handful of large one-offs. Somewhere out there a managed fund is willing to back your Angora bunny farm. Taking this angle when discussing the world awash with cash sounds positive. But there is another angle. When finding investors globally was harder, and the cost of funding ongoing losses higher, businesses would get weeded out at a faster pace. Now, the dead wood clings on for longer. It is taking longer for businesses with bad ideas/management/products etc. to be capitalistically weeded out and their assets freed up for others to use. Global productivity and therefore income growth is slowing down. This will exacerbate worries about the absence of income growth for individuals and households in many countries, retard even further the growth prospects and opportunities for reform in Europe particularly, and reduce the speed with which the growing divide between rich and poor can be narrowed as gains from growth are distributed further down the income ladder. Consider the New Zealand case. NZ business profits are being squeezed with rising import costs but inability to pass on such rises, plus wages rising faster than 0.4% inflation. Eventually the economy will be ready for another bout of business cleanout. Previously high interest rates might be the trigger, but not now. So companies past their use-by date will hang around a lot longer, sapping growth and raising debt risks. Unpredictability This is a theme I have discussed strongly in recent months. In fact five and a half years ago I noted that a person would be foolish to develop an interest rate risk management strategy reliant heavily upon any particular set of interest rate forecasts proving correct. Post-GFC the world has changed and old relationships between key economic variables like interest rates and consumer spending, employment growth and wage rises, money supply and inflation no longer hold. The economic forecasting models run by central banks, private firms etc. are no longer accurate. Throw in the effects of unpredictable technological disruption (oil, music, taxis etc.), changing fashions, the guessed-at effects of aging populations, geopolitical shocks, and weather events and you have a world where relying strongly upon forecasts is dangerous. Businesses need to place priority on identifying trends not highly at risk of disruption and error (e.g. rising demand for safe, quality food from Asia), get close to customers to identify changes and new competition as soon as possible, stress innovation in production processes, and build flexibility in costs and practices while building resilience to the changes we have no hope of predicting. If I Were A Borrower What Would I Do? Banks are competing strongly with discounted short-term fixed rates so that is where I would look.

For more, see: www.tonyalexander.co.nz Download the full analysis document here (pdf 285kb) — ]]>

“Walk for the Cause” – breast cancer walk coming up

By Selwyn Manning -

September 23, 2015

NewsroomPlus.com

Contributed by The New Zealand Breast Cancer Foundation

Registrations are now open for the Estee Lauder Companies Pink Star Walks in Auckland, Wellington and Christchurch. Thousands of Kiwis are expected to walk in support of the NZ Breast Cancer Foundation, with funds raised helping support women with breast cancer, and enabling public education around the importance of mammograms for early detection.

Egging them on will be broadcaster Stacey Morrison, NZBCF ambassador, who will MC the Walks. “This is a great chance to support women recovering from breast cancer and at the same time have some fun and enjoy some physical activity,” said Morrison, who lost her mother to breast cancer at a young age. She has made a personal commitment to keeping fit and active in her forties, and loves the camaraderie of events like the Pink Star Walk.

The Pink Star Walk, already much loved by Aucklanders, was held for the first time in Wellington and Christchurch last year. Participants can choose a 10km walk, or a 5km option that’s popular with families. In Christchurch, there’s also a half-marathon (21km) walk.

The Wellington walk is first up, on Saturday October 3. The waterfront walk starts and finishes in Frank Kitts Park. Auckland’s walk will be held Saturday October 17, starting in the Auckland Domain and winding through Parnell and the city before finishing back in the Domain. The Christchurch walk is on Saturday November 7, starting and finishing in North Hagley Park.

The Pink Star Walk is always a sight to behold, with many walkers dressing in pink or going all-out with imaginative team themes. Funds are raised through a combination of entry fees, personal sponsorships and donations.

“The money raised by our walkers helps fund rehabilitation programmes for women undergoing mastectomy, a major surgical procedure,” said (Mrs) Van Henderson, chief executive at the NZ Breast Cancer Foundation. “We’re also putting more funds into education around the importance of mammograms, with new ten-year survival data showing that women whose cancer is found on a mammogram have much better survival than those who find a lump. Seventy percent of eligible women currently attend mammogram screening – we want to see that go a lot higher.”

Walkers can register for the events at www.pinkstarwalk.co.nz

About The NZBCF:

The New Zealand Breast Cancer Foundation is a not-for-profit organisation that depends on individual donations, community fundraising, grants from trusts and foundations and partnerships with business for its work in breast cancer education and awareness, medical research and training grants, advocacy, and supporting women with breast cancer. The NZBCF’s programmes are evidence-based, overseen by its medical advisory committee. The pink ribbon symbol is a trademark of the NZBCF in New Zealand.

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NewsRoom Digest: Top NZ News Items for September 22, 2015

By Selwyn Manning -

September 22, 2015

This edition of NewsRoom_Digest features 8 resourceful links of the day and the politics pulse from Tuesday 22nd September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the Prime Minister, John Key rejecting a bid from a Kiribati man seeking refuge in New Zealand despite the Labour Party hosting a petition to stop the deportation, opponents of the Trans-Pacific Partnership will be having their day in court next week as they fight to have details of New Zealand’s negotiating position made public and latest figures showing New Zealanders represent the third largest group of people being held in Australian detention centres.

Note: As well as providing a precis of leading broadcast bulletins each day, our NewsRoom_Monitor service does a daily paper round with succinct ‘news picks’ from the main metropolitan papers emailed by 9am each morning. If you’re interested in a free trial please email monitor@newsroom.co.nz

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: LINZ data driving business success; Rules Reduction Taskforce report released; ACC reaches milestone as residual levies removed; Most older New Zealanders have good support; Better air links between NZ and French Polynesia; Major artworks for Ōtākaro Art by the River; Patients to benefit from Ambulance Service initiative

Greens: AgResearch Job Cuts Show Govt Failing Agricultural Science Sector

Labour: Government should front for Kiribati deportee; Joyce’s invisible hand all over AgResearch bungle; Early levy removal shows crisis manufactured; Iwi tax status mess for charity sector; Loopy rules report contains loopy broadband suggestions; Government’s flawed science funding policy slammed; Labour’s offer to support RMA changes remains

NZ National Party: Innovation to the fore as Hutt Valley hosts National Science Challenge

LINKS OF THE DAY

Links of the day have been a feature of NewsRoom_Digest since we first started production in August 2014 at newsroom-nz.tumblr.com. We are currently building an archive of these at:http://newsroomplus.com/resources/resourceful-links/

BRIGHTER MONEY: The Reserve Bank today announced the first release of new $5 and $10 notes will take place on Monday 12 October. From that day, new notes will start to be released from banks and retailers. Find out about the features of the new banknotes by taking the $5 and $10 for a spin at http://www.brightermoney.co.nz

CHRISTCHURCH RETAILS GROW: Christchurch city retail and hospitality sales continue to grow, according to Statistics New Zealand. Sales for the June 2015 quarter were $1.9 billion, a 2.9 percent increase compared with the same quarter in 2014. Read more:http://www.stats.govt.nz/browse_for_stats/industry_sectors/RetailTrade/ChristchurchRetailTradeIndicator_HOTPJun15qtr.aspx

FERNMARK LICENCE PROGRAMME: New Zealand Story, a government initiative to develop and grow New Zealand’s international marketing brand, announced today the launch of the new FernMark Programme for New Zealand exporters. To apply for a licence to carry the FernMark visit http://www.fernmark.nzstory.govt.nz

GENDER REPORT: The report “BOYS GIRLS OTHER – Making Sense of the Confusing New World of Gender Identity” draws from decades of mainstream academic and international research, and seeks to bring clarity to this topic and practical advice for schools, parents and community leaders, for the wellbeing of children. The report is available at: http://bobmccoskrie.com/wp-content/uploads/2015/06/Boys-Girls-Other-FULL-REPORT.pd

LINZ DATA: Online data provided free of charge by Land Information New Zealand (LINZ) is proving critical to the success of businesses across New Zealand. Read more at: https://www.data.linz.govt.nz/

OLDER NEW ZEALANDERS GOOD SUPPORT: A longitudinal study of advanced ageing has found that most elderly people are satisfied with the relationships they have with family and friends. The report can be found here:http://www.health.govt.nz/publication/relationships-and-emotional-support-findings-lilacs-nz-0

RULES REDUCTION REPORT : Findings from the Rules Reduction Taskforce show real opportunities for both central and local government to make life easier for New Zealanders. A copy of the final report can be found here:http://www.dia.govt.nz/vwluResources/Rules-Reduction-Report/$file/Rules-Reduction-Report.pdf

“WALK FOR THE CAUSE”: Thousands of Kiwis are expected to walk in support of the NZ Breast Cancer Foundation, with funds raised helping support women with breast cancer, and enabling public education around the importance of mammograms for early detection. Walkers can register for the events at http://www.pinkstarwalk.co.nz

And that’s our sampling of “news you can use” for Tuesday 22nd September.

Brought to EveningReport by Newsroom Digest. –]]>

NZ Defence Force Retrace Footsteps of WWI Soldiers

By Selwyn Manning -

September 22, 2015

NewsroomPlus.com Contribute by New Zealand Defence Force Twenty New Zealand Defence Force (NZDF) personnel will march over the Rimutaka Hill this weekend, retracing the footsteps of soldiers who made the same journey on their way to war. More than two hundred people are registered to take part in an event to commemorate the service and sacrifice of thousands of soldiers who served in the First World War, particularly those who served on the Western Front. Between 1915 and 1918, around 60,000 soldiers who trained at Featherston Military Camp, marched over the Rimutaka Hill before embarking in ships berthed in Wellington Harbour, which were bound for the First World War. All soldiers who trained in Featherston went on to serve on the Western Front in France and Belgium. Colonel (COL) Paul Curry will be taking part in the re-enactment event as a direct descendant of soldiers who made the same journey during the First World War. Seven of his great-grand uncles served on the Western Front and two were killed as a result of wounds sustained at the front. Private Charles James Lankey (10^th Reinforcements, 2^nd Battalion, Canterbury Regiment), died in the United Kingdom on 22 October 1916, of wounds received at the Somme and Private Albert Bert Curry (19^th Reinforcements, 2^nd Battalion, Wellington Infantry Regiment), died of wounds at Passchendaele on 17 October 1917. COL Curry said the march was a great way to commemorate the service and sacrifice of his ancestors. “The Western Front was a major and important part of New Zealand’s involvement in the First World War, and much of it was fought in terrible conditions,” COL Curry said. “The majority of New Zealand’s casualties during the First World War were suffered on the Western Front, including a number of my relatives who were either wounded or killed. “Marching over the Rimutaka Hill and taking part in something my ancestors did a century ago will be an incredibly meaningful experience, something I am doing for them and for my family,” COL Curry said. Private (PTE) Simon Adams will also be taking part in the event, and will be marching dressed in a First World War replica uniform, provided by Wingnut Films. PTE Adams said he wanted to participate in the event because he’s always been interested in military history. “To march over the Rimutaka Hill as those soldiers before me did is important because it puts the original marches into perspective,” PTE Adams said. “These were young men marching to war, not just names on a wall. “It is a privilege to be able to retrace their footsteps, especially wearing the same uniform they would have worn a century ago,” PTE Adams said. The re-enactment march will begin from Camp Road, north of Featherston, at 3am on Sunday 27 September 2015, and will conclude at Griffin Field, Trentham, around midday. Background – New Zealand involvement on The Western Front The New Zealand Division arrived in France in April 1916, and remained on the Western Front, in France and Belgium, until late 1918. Major New Zealand involvement included taking part in the Allied offensive on the Somme (1916), an assault on Messines Ridge (1917), the Battle of Passchendaele (1917), and the liberation of Le Quesnoy (1918). The majority of New Zealand’s casualties during the First World War were suffered on the Western Front. More than 12,480 personnel are buried in Commonwealth War Graves cemeteries in Belgium and France. In 2016, the New Zealand Defence Force will conduct Anzac Day services in France (23-24 April) and Belgium (25 April). On 15 September 2016, the official New Zealand service to commemorate the centenary of the Battle of the Somme will take place at Longueval in northern France. –]]>

Café Pacific: Nuclear lawsuit inspires support at NZ peace action conference

By Selwyn Manning -

September 22, 2015

World Without War conference Phil Goff 350wide — ]]>

Pacific Media Centre David Robie profiles the World Without War conference in Auckland at the weekend. BEFORE Parisian car engineer turned-designer Louis Réard named the sexy two-piece swimsuit he created a “bikini” in 1946, it was the name of an obscure Pacific atoll in the Marshall Islands, lost among more than 1100 islets in the trust territory, now an independent republic. And Bikini Atoll was the Ground Zero for 23 US nuclear tests in the Pacific – out of some 67 conducted over the next dozen years in the Marshall Islands. Last year the little republic filed a controversial lawsuit in the International Court of Justice at The Hague against Washington and the eight other nuclear powers – Britain, China, France, India, Israel (although it denies possessing a nuclear arsenal), North Korea, Pakistan and Russia. The Marshall Islands accuses the nuclear club members of “violating their duty” to negotiate in good faith for the elimination of these weapons. Now, over this weekend in New Zealand, some 200 people have participated in a World Without War conference drawing up a list for proposed action for peace and the Marshall Islands action came in for some strong support from several speakers. Speaking in a video message from outside UN headquarters in New York, Alyn Ware, international representative of the Peace Foundation, organisers of the event at Auckland University of Technology, gave updates on various initiatives and was optimistic about the Marshall Islands case, believed that it would at least gain sufficient traction to drive the nuclear powers into serious negotiations. Ware, who is also international coordinator for the Parliamentary Network for Nuclear Disarmament and consultant for the International Association of Lawyers Against Nuclear Arms, argued rather compellingly for New Zealand support for this Marshall Islands initiative. Humanitarian law His positive voice was echoed by Dr Kate Dewes, co-director of the Disarmament and Security Centre, and lawyer Matt Robson, a former Alliance MP, who outlined how international humanitarian law currently “banned” the use of nuclear weapons. Many of the sessions at the conference had strong UN empathy with a view that New Zealand should be making far more use of the instruments available, especially while chairing the Security Council – it was chair for the month of July this year and will be chair again for a month during 2016. Other global proposals included promoting the International Day for the Total Elimination of Nuclear Weapons on September 26, supporting the creation of a UN Open-Ended Working Group to take forward nuclear disarmament negotiations, and promoting environmental security. But feedback for action plans overall from the conference was quite eclectic. Some ideas put forward by speakers representing many groups in New Zealand included “setting up a non-violent peace force”, “bringing peace back into Greenpeace”, “reinvigorating public education”; advocating stronger controls on the international arms trade – “there are more regulations on the banana trade than arms”, a higher level of collaboration and coordination between peace movements, legal ratification and integration of the Treaty of Waitangi among all New Zealand communities; establishment of a government monetary policy and for business to live within sustainable means; introduction of “peace journalism” as a concept in schools and in communication studies programmes; and cross-party “anti-war policies”. Also a priority was “listening” more to youth and involving them far more. This was an irony given that although a group of inspiring young interns from several countries working with the Peace Foundation were involved in the conference as volunteers, relatively few youth were to be seen. Where were the students and school children in the programme – almost apart from the SGINZ Victorious March Band who were stunning? Surprising given the foundation’s tremendous education programmes, especially Cool Schools. (Many remarks were made too about the almost exclusive middle-aged male line-up in the two-hour “opening remarks” session – no gender balance, but two impressive youngsters added zest to the session.) It was also disappointing that a range of 11 “peacemaking” community groups – such as Amnesty International, Greenpeace, Nuclear Free New Zealand, Peace Movement Aotearoa, Society of Friends, Red Cross, Rotary, Women’s International League for Peace and Freedom, and the Peace Foundation itself – were only given a four-minute presentation each. They deserved more time. Peace Foundation president Dr John Hinchcliff, Vice-Chancellor Emeritus of AUT, had given challenges to the conference in the opening session, and also in a video reported by Pacific Media Centre student Alistar Kata a few days earlier. Refugee crisis One of the most popular sessions at the conference was devoted to the refugee crisis with several speakers describing their experiences as refugees and overcoming the New Zealand bureaucracy barriers in becoming established citizens and residents in this country. There was strong support for New Zealand to take more refuges than doubling the quota from 750 to 1500. (Ireland, for example, with a similar population, is taking up to 5000; and Lebanon, also with a similar population, already has more than 1.5 million). Dr Arif Sayeed, chair of the NZ Refugee Council, applauded many New Zealanders for their support but also called for more compassion and understanding for refugees coming from war zones such as Syria. A new feature documentary, The Man Who Saved the World, was screened about the extraordinary 1983 case of Russian retired colonel Stanislav Petrov, who refused to follow protocols and order a counter-strike when Soviet early warning systems wrongly signalled that five nuclear missiles had been launched by the US. It could have been a global nuclear winter. Even now there are still at least 15,695 nuclear warheads with at least 1302 on high-alert after almost a quarter century since the end of the Cold War. The filmmakers thrust Petrov out of his obscure vodka-fuelled retirement – “I am just an ordinary man, the right person at the right time” – to take him to New York to see the United Nations, and to also meet actors Robert De Niro and Kevin Costner, and later reunite with his estranged 90-year-old mother in Russia. The conference screening was the Australasian “premiere”. Summing up from several contributions, conference organiser Christopher Le Breton said: “We have huge rampant social injustice, and wars and conflicts, precipitating a mass refugee crisis, and we have pollution to our seas, extinctions of species, and a sense of frustration and alienation among some that one person cannot make a difference.” He said awareness of strengths of living in Aotearoa, “together with the possibilities we have, helps inspire our attitude, and the action we get involved with to transform our lives and the planet. “We have a chance to be seeds for the future.” The foundation intends to follow-up with participants and involved groups through a range of key action recommendations. –]]>

Hearing of Legal Challenge to TPPA Secrecy set for Monday 28th September at Wellington High Court

By Selwyn Manning -

September 22, 2015

Source: Professor Jane Kelsey.

The legal challenge to the secrecy of the Trans-Pacific Partnership Agreement (TPPA) negotiations will be heard in the High Court in Wellington at 10am next Monday, 28th September.

The hearing coincides with the meeting of chief negotiators in Atlanta, USA prior to a ministerial meeting from 30 September to 2 October, which is being billed as their final meeting to conclude the deal. Those talks are once again being conducted under conditions of secrecy.

The case involves judicial review of the blanket refusal by the Trade Minister Tim Groser to release eight categories of information sought by Professor Jane Kelsey of the University of Auckland under the Official Information Act.

The request reflected information the European Union Ombudsman had just recommended for release in relation to parallel negotiations between the United States and the European Union.

Other applicants include Consumer NZ, Ngati Kahungunu, Oxfam and the Association of Salaried Medical Specialists.

They are seeking declarations that the Minister acted unlawfully in refusing to release the information.

The Statement of Claim and Statement of Defence can be accessed at http:tpplegal.wordpress.com.

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Review: New Zealand Opera Defines Tosca The Beguiling Tragedy

By Selwyn Manning -

September 21, 2015

Review by Selwyn Manning. There’s so much to ponder in New Zealand Opera’s telling of the classic Puccini opera Tosca. There’s the passion, the love, the loyalty, the power and oppression set within the politics of post World War II Italy. The political turmoil of the period provides a backstory perfectly in tune with Puccini’s story. In 1946, Italy abandoned its monarchy and established a republic. But its political makeup was divided, the population poised on a knife’s edge. Fascist-styled oppression was still a characteristic of the power elite, and, by 1948, the Communist Party had been expelled from the Parliament and (with the help of the Vatican, NATO, and the Mafia) the Christian Democrats began an enduring hold over all estates of Italian society. Submerged beneath the flamboyance of Italian politics, its people strove in earnest to reestablish lives long lost. Rome was a frontline, a construct of a burgeoning Cold War, where spies lurked, espionage was rife, as was intimidation and murder, where people became instruments of oppression. Secrets, fear, idealism, loyalty and love were manipulated, used by the black-gloved hand of a power-elite to destroy opposing forces, ideologies, people. Positioned upon this backstory is New Zealand Opera’s interpretation of Puccini’s Tosca. [caption id="attachment_7268" align="alignleft" width="200"] Ireland’s brilliant Orla Boylan was the beguiling Floria Tosca.[/caption] Tosca, the Diva, is in love with Mario Cavaradossi. Her passion is her virtue, her jealousy is her vulnerability, the latter offers her as a pawn to be played by Baron Scarpia the chief of police. The production team created something special here. The set, the costume, the choreography, the score were in accord perfect to the period. The cast includes:

Ireland’s brilliant Orla Boylan was the beguiling Floria Tosca. And Boylan was a delight. Her international concert appearances include: War Requiem (Perth International Arts Festival, APO); Mahler’s Eighth Symphony (Gürzenich-Orchester Köln); scenes from Wozzeck (Royal Liverpool Philharmonic Orchestra); Vier letzte Lieder (Sinfonieorchester St. Gallen, Hallé Orchestra, West Australian Symphony Orchestra); Capriccio final scene (Orchestre National de France). Boylan’s interpretation drew into the classical characterisations of Puccini’s original Romanian diva while portraying the idiosyncrasies necessary for our post WWII Tosca. Her performance was real and perfectly raw. Boylan is supported by an almost complete New Zealand born cast. And this, is rather special as it provides us an opportunity to celebrate this nation’s operatic stars. [caption id="attachment_7276" align="alignright" width="200"]

Ashburton-born Simon O’Neill brought to life Mario Cavaradossi, the focus of Tosca’s love.[/caption] Ashburton-born Simon O’Neill brought to life Mario Cavaradossi, the focus of Tosca’s love. O’Neill is an internationally acclaimed world class performer. His credentials include: principal artist with the Metropolitan Opera, the Royal Opera House, Teatro alla Scala and the Bayreuth and Salzburg Festivals. An alumnus of the University of Otago, Victoria University of Wellington, the Manhattan School of Music and the Juilliard Opera Center. He is a Fulbright Scholar and was awarded the 2005 Arts Laureate of New Zealand.

His repertoire is extensive displaying an A-List performance-record noting his achievements on-stage at top opera houses from all over the world.

[caption id="attachment_7275" align="alignleft" width="200"]

Tosca’s passion was counterbalanced by her inability to escape the grip of Scarpia’s leathered black hand.[/caption] This was all in evidence as he performed Cavaradossi. It was so easy to become lost within his song, his character, his merit. But one was soon lured back to centre-stage by Tosca’s passion counterbalanced by her inability to escape the grip of Scarpia’s leathered black hand, played by Hastings-born Phillip Rhodes.

Rhodes, like O’Neill, is a celebrated world-class act. His bio details how he graduated with a Diploma in Performing Arts (Voice) from the Eastern Institute of Technology. Was a 2011/12 PwC Dame Malvina Major Young Artist, a joint recipient of the Circle100 scholarship in 2007 and a PwC Dame Malvina Major Emerging Artist in 2004. He won the Lockwood Aria in 2005 and Lexus Song Quest in 2007; attended the Cardiff International Academy of Voice; won second prize in the Montserrat Caballé International Singing Competition in Spain in 2010; was a recipient of a Kiri Te Kanawa Foundation (UK) Cover Award for the 2015/16 season at the Royal Opera House Covent Garden for Enrico (cover) Lucia di Lammermoor. [caption id="attachment_7271" align="aligncenter" width="640"]

The sinister Scarpia performed by Hastings-born Phillip Rhodes.[/caption] The supporting artists were superb: Australia’s James Clayton played the sinister but loyal Cesare Angelotti, New Zealanders Barry Mora played A Sacristan, James Benjamin played Spoletta, and Wade Kernot played Sciarrone. [caption id="attachment_7270" align="alignleft" width="210"]

Tosca provides us an opportunity to ponder the frailties of our humanity, made vulnerable by the times and powers we all live in.[/caption] And of course, the Freemasons New Zealand Opera Chorus was exceptional, and the opera’s score was powerfully performed in Auckland by the fabulous Auckland Philharmonia Orchestra, conducted by Sweden’s Tobias Ringborg.

Tosca is a tragedy with a plot perfectly applied to post-World War II Italy. It bridges almost a half-way point in time from Puccini’s opening night in Rome on January 14, 1900.

It provides us an opportunity to ponder the frailties of our humanity, made vulnerable by the times and powers we all live in. The tragedy that marks Tosca’s end is perhaps a challenge to us all to realise how unnecessary such an end is, to realise that by succumbing to petty jealousies we can set in train the demise of ourselves and those we love.

Bravo New Zealand Opera, your performance of Tosca was for me simply the best. There is still time to see Tosca in Auckland in September and Wellington in October.

AUCKLAND:

ASB Theatre, Aotea Centre, Accompanied by the Auckland Philharmonia Orchestra – Wednesday September 23 and 25 at 7.30pm and September 27 at 2.30pm.

WELLINGTON:

St James Theatre, Accompanied by the New Zealand Symphony Orchestra – October 10, 15, 17 at 7.30pm and October 13 at 6pm.

For more, see www.NZOpera.com

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NewsRoom Digest: Top NZ News Items for September 21, 2015

By Selwyn Manning -

September 21, 2015

This edition of NewsRoom_Digest features 8 resourceful links of the day and the politics pulse from Monday 21st September.

NEWSROOM_MONITOR

Top stories in the current news cycle include Fonterra’s job cuts escalating from two months ago to as many as 750, confirmation that AgResearch is is talking to science staff this week about a proposal for staff cutbacks as high as 20% and news that the number of people wanting to live in New Zealand long term continues to hit new highs.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: Building on New Zealand’s suffrage legacy; Victims Code key part of putting victims’ rights first; India trade mission to focus on building tech sector links; Fund to help reintroduce Kokako to Taranaki; Key people in place to progress investigation; NZ-China science partnership celebrated; Pacific Business Trust appointments made; Prime Minister to attend UN Leaders’ Week

Greens: Gloriavale School teaching Victorian-era values;Migration not enough to build sustainable economy

Labour: Novopay fiasco still isn’t over; Heart patient told to take bus home in his PJs; AgResearch cuts show organisation in chaos

New Zealand First: Child sex offender register destined to fail; Record 60,000 migrants hitting kiwi job seekers

LINKS OF THE DAY

ELECTION COMMITMENT: A year on from the General Election, the National-led Government is delivering on its commitment to help all New Zealanders get ahead, says Prime Minister John Key. More information is available at:http://beehive.govt.nz/sites/all/files/Working_For_New_Zealand-One_Year_On.pdf

FARMER CONFIDENCE LOW: Sentiment remains low among New Zealand farmers, weighed down by a negative outlook among dairy producers. But a glimmer of optimism looks to be returning to the agricultural sector, with the latest Rabobank Rural Confidence Survey registering a small uptick in farmer confidence. Read more here:http://www.rabobank.co.nz/Global-Content/Documents/Privacy-Policy-NZ.pdf

FUTURE PROOF NZ: The New Zealand Youth Delegation are calling on the New Zealand Government to adopt their recently released blueprint with ideas on how to future proof New Zealand. The blueprint can be viewed at:http://www.youthdelegation.org.nz/wp-content/uploads/2015/09/NZYD-Future-Proof-NZ-report.pdf

HOLIDAYMAKERS RISE: Holidaymakers contributed to a 7 percent increase in visitor arrivals to New Zealand in August 2015, when compared with August 2014,according to Statistics New Zealand. View Statistics here :http://www.stats.govt.nz/browse_for_stats/population/Migration/IntTravelAndMigration_HOTPAug15.aspx

KIWIFRUIT INNOVATION SYMPOSIUM: The inaugural Kiwifruit Innovation Symposium will be held on 29 October in Mt Maunganui. For more information and a copy of the full programme, check out http://www.zesprievents.co.nz

MENTAL HEALTH WEEK: The Mental Health Foundation (MHF) is bringing back Mental Health Awareness Week (MHAW) once again in 2015 – from 5-11 October. The theme this year is GIVE – Give your time, your words, your presence. More information including what events are being held in your area, how to get involved, and research about the value of giving, see the website: http://www.mhaw.nz

OUTDOORS PARTY: A new New Zealand political party based on the values of the outdoors environment and communities has been formed. More details available at: http://www.outdoorsparty.co.nz

VICTIMS CODE: A new Victims Code has been launched as part of the Government’s work to better support victims of crime. The Code clearly explains what victims can expect from the services provided by criminal justice agencies at each stage of the criminal justice process. The Code is available on the newly-updated victims information websitehttp://www.victimsinfo.govt.nz

And that’s our sampling of “news you can use” for Monday 21st September.

Brought to EveningReport by Newsroom Digest. –]]>

Search is on for New Zealand’s next generation of agri-leaders

By Selwyn Manning -

September 21, 2015

shane-mcmanaway-ppp-group-chairman-2015 — ]]>

NewsroomPlus.com Contributed by Platinum Primary Producers Agriculture’s young leaders in New Zealand are being urged to step forward and apply for the 2016 Zanda McDonald Award. Open to agri-business professionals with natural leadership skills from across New Zealand and Australia, the award comes with a $30,000 prize package comprising; an overseas mentoring trip, a place on Rabobank’s Farm Manager’s Programme and $1,000 cash. Applicants aged 35 or younger and currently in paid employment in agriculture have until Friday 30^th October 2015 to submit their entries. The substantial prize package aims to help the winner further their career by opening up networks and opportunities. Organisers says they anticipate healthy competition. Shane McManaway, Chairman of the Platinum Primary Producers (PPP), the group behind the award scheme, comments: “This is a fabulous award for young individuals in agri-business who not only feel passionate and driven about what they do, but who also have a natural ability to lead others and make an impact on the agri landscape. “We know there are many very talented young men and women out there. We encourage them to apply for this prestigious award and take advantage of all the opportunities it creates. This year the Zanda McDonald Award was awarded to 27 year old Emma Hegarty – a Beef Extension Office from Queensland, Australia. Emma is the inaugural winner and will take up a 10 day mentoring trip to New Zealand later this month. She will spend time with members of the PPP Group from Landcorp Farming, Allflex, Rabobank, Shanghai Pengxin and NZ Merino. She will also visit two Wairarpa properties – the iconic Castlepoint Station and Spring Valley Enterprises in Masterton. Later in the year Emma will head to Queensland-based MDH Pty Ltd, one of Australia’s largest beef cattle operations, to be mentored by the McDonald family. Emma says winning the award has been like being given the key to unlocking her future. “I am honoured to be the first winner of this award. Having the opportunity to be mentored by some of the most experienced and respected people within the agricultural industries in New Zealand and Australia is one of the best opportunities available to someone developing their career in agriculture. I would strongly encourage anyone eligible to apply for this life changing experience.” Zanda McDonald was a prominent identity in the Australian beef and livestock industry and a foundation member of the PPP Group. He died in April 2013 at the age of 41, following a tragic accident on his Queensland cattle property. Launched in 2014 by the Platinum Primary Producers (PPP) Group, this award was born out of mate-ship and respect for one of agriculture’s natural leaders. The PPP Group is a collective of over 130 of Australasia’s top, rural movers and shakers, representing over 12 million hectares (28%) of farmland across the two countries and over 20 million livestock units. –]]>

5AA: Victim of Tiger Attack Was A Respected Experienced Curator

By Selwyn Manning -

September 21, 2015

At around 11am Sunday Hamilton Zoo’s curator, Samantha Kudeweh, was attacked by a Sumatran tiger. She died at the scene a short time later before ambulance staff arrived. The large male tiger, named Oz, has been identified as having killed her. This tiger had been moved to Hamilton Zoo from Auckland Zoo as part of the Global Species Management plan conservation efforts. New Zealand Herald reported that a visitor to the zoo from Melbourne, Adam Rich, said he saw a female keeper in the tiger enclosure shortly before the attack.

“There was a keeper in there who opened up the gate so the tigers could leave the inside area to go to the outside area,” he said.

Samantha Kudeweh was 43 years of age and had had more than 20 years’ experience working with zoo animals and reportedly had a passion for their wellbeing. She had also worked at Hamilton Zoo for about 10 years. Before that she worked at Auckland Zoo for eight years, and two years at Melbourne Zoo and Werribee Zoo. This morning, her family issued a statement, via the zoo which noted how Sam “was recognised and respected globally as a talented, passionate and highly knowledgeable conservation and zoo professional”. Her favourite animal was the Rhino. [caption id="attachment_7244" align="alignleft" width="237"]

Sam Kudewey. Image courtesy of Hamilton Zoo.[/caption] In her bio, Sam Kudeweh wrote: “For me the best thing about my role is the opportunities to interact with other species one to one, but there is a down side and that is having to say goodbye to animals. That part never gets any easier.” Under her care at Hamilton Zoo, the Sumatran tigers gave birth to two cubs. At the time she wrote: “This is a career highlight for me and the rest of the team involved… It’s very exciting for the zoo and the species.” At this stage, the male Sumatran tiger, Oz, is unlikely to be euthanised. According to International zoo consultant Tim Husband… the tiger would not be put down unless it still posed a threat to human life. He told Fairfax’s Stuff site this morning:

“What a lot of people fail to understand is that even though these animals are in captivity they are still wild and not a domesticated cat.”

EveningReport.nz and FiveAA.com.au. –]]>

Christchurch Mayor views affordable housing solution

By Selwyn Manning -

September 21, 2015

NewsroomPlus.com Christchurch Mayor Lianne Dalziel took an up-close look at the advanced construction process of prebuilt modular accommodation units destined for Christchurch, when she visited a 27 acre factory in Foshan City, near Guangzhou on her recent China visit. The Mayor toured the production line of the Chinese manufacturing company supplying the New Zealand building company Ecotech Homes, with chairman Mr Kwong Jiuhung (pictured third from left below), Ecotech Homes’ founder and chief executive Tony Frost (at right) and chairman Mr Derek Smail (at left). Several Ecotech houses on the production line will be shipped to Christchurch and the Mayor looked inside one ordered by the Christchurch businessman Slava Meyn for the manager of his Football Academy at Yaldhurst, Christchurch. Dalziel: “I was most impressed with the state-of-the-art technology and quality assurance being used on the production line to deliver affordable yet highly specified homes in volume and at pace. “It is clear that traditional ideas about prefabrication have been overtaken by the latest technology, which now offers cost-effective accommodation options particularly in the area of social and affordable housing.” Ecotech homes, which are multi-consented by MBIE and rated Homestar 6, are built in a diverse size range suitable for residential and rental accommodation, multi-storey apartment development, multi-storey tourist accommodation (motels and boutique hotels), student and worker accommodation, family holiday properties, and ‘granny flats’ as well as commercial structures such as retail stores and office buildings. Ecotech has established regional distributorships in three New Zealand regions so far and Mr Smail described the Ecotech prebuilt model as “a real ‘game-changer’ that is attracting the attention of both private buyers and commercial property investors. Our demonstration house at the Auckland Home Show last week was swamped with thousands of visitors eager to talk about a viable solution to the rampant costs of new homes.” For more information see: www.ecotechhomes.co.nz –]]>

Bikini bombs lawsuit inspires support at NZ peace conference

By David Robie -

September 21, 2015

Report by David Robie. This article was first published on Café Pacific BEFORE Parisian engineer Louis Réard named the sexy two-piece swimsuit a “bikini” in 1946, it was the name of an obscure Pacific atoll in the Marshall Islands, lost among more than 1100 islets in the trust territory, now an independent republic. And Bikini Atoll was the Ground Zero for 23 US nuclear tests in the Pacific – out of some 67 conducted over the next dozen years in the Marshall Islands. Last year the little republic filed a controversial lawsuit in the International Court of Justice at The Hague against Washington and the eight other nuclear powers – Britain, China, France, India, Israel (although it denies possessing a nuclear arsenal), North Korea, Pakistan and Russia. The Marshall Islands accuses the nuclear club of “violating their duty” to negotiate in good faith for the elimination of these weapons. Now, over this weekend in New Zealand, some 200 people have participated in a World Without War conference drawing up a list for proposed action for peace and the Marshall Islands action came in for some strong support from several speakers. Speaking in a video message from outside UN headquarters in New York, Alyn Ware, international representative of the Peace Foundation, organisers of the event at Auckland University of Technology, gave updates on various initiatives and was optimistic about the Marshall Islands case, believed that it would at least gain sufficient traction to drive the nuclear powers into serious negotiations. Ware, who is also international coordinator for the Parliamentary Network for Nuclear Disarmament and consultant for the International Association of Lawyers Against Nuclear Arms, argued rather compellingly for New Zealand support for this Marshall Islands initiative. Humanitarian law His positive voice was echoed by Dr Kate Dewes, co-director of the Disarmament and Security Centre, and lawyer Matt Robson, a former Alliance MP, who outlined how international humanitarian law currently “banned” the use of nuclear weapons. Many of the sessions at the conference had strong UN empathy with a view that New Zealand should be making far more use of the instruments available, especially while chairing the Security Council – it was chair for the month of July this year and will be chair again for a month during 2016. Other global proposals included promoting the International Day for the Total Elimination of Nuclear Weapons on September 26, supporting the creation of a UN Open-Ended Working Group to take forward nuclear disarmament negotiations, and promoting environmental security. But feedback for action plans overall from the conference was quite eclectic. Some ideas put forward by speakers representing many groups in New Zealand included “setting up a non-violent peace force”, “bringing peace back into Greenpeace”, “reinvigorating public education”; advocating stronger controls on the international arms trade – “there are more regulations on the banana trade than arms”, a higher level of collaboration and coordination between peace movements, legal ratification and integration of the Treaty of Waitangi among all New Zealand communities; establishment of a government monetary policy and for business to live within sustainable means; introduction of “peace journalism” as a concept in schools and in communication studies programmes; and cross-party “anti-war policies”. Also a priority was “listening” more to youth and involving them far more. This was an irony given that although a group of inspiring young interns from several countries working with the Peace Foundation were involved in the conference as volunteers, relatively few youth were to be seen. Where were the students and school children in the programme – almost apart from the SGINZ Victorious March Band who were stunning? Peace Foundation president Dr John Hinchcliff, Vice-Chancellor Emeritus of AUT, had given challenges to the conference in the opening session, and also in a video reported by Pacific media Centre student Alistar Kata a few days earlier. Refugee crisis One of the most popular sessions at the conference was one devoted to the refugee crisis with several speakers describing their experiences as refugees and overcoming the New Zealand bureaucracy barriers in becoming established citizens and residents in this country. There was strong support for New Zealand to take more refuges than doubling the quota from 750 to 1500. (Ireland, for example, with a similar population, is taking up to 5000; and Lebanon, also with a similar population, already has more than 1.5 million). Dr Arif Sayeed, chair of the NZ Refugee Council, applauded many New Zealanders for their support but also called for more compassion and understanding for refugees coming from war zones such as Syria. A new feature documentary, The Man Who Saved the World, about the extraordinary 1983 case of Russian retired colonel Stanislav Petrov, who refused to follow protocols and order a counter-strike when Soviet early warning systems wrongly signalled that five nuclear missiles had been launched by the US. It could have been a global nuclear winter. The filmmakers thrust Petrov out of his obscure vodka-fuelled retirement – “I am just an ordinary man, the right person at the right time” – to take him to New York to see the United Nations, and to also meet actors Robert De Niro and Kevin Costner, and later reunite with his estranged 90-year-old mother in Russia. The conference screening was the Australasian “premiere”. Summing up from several contributions, conference organiser Christopher Le Breton said: “We have huge rampant social injustice, and wars and conflicts, precipitating a mass refugee crisis, and we have pollution to our seas, extinctions of species, and a sense of frustration and alienation among some that one person cannot make a difference.” He said awareness of strengths of living in Aotearoa, “together with the possibilities we have, helps inspire our attitude, and the action we get involved with to transform our lives and the planet. “We have a chance to be seeds for the future.” The foundation intends to follow-up with participants and involved groups through a range of key action recommendations. –]]>

Keith Rankin on Syrian Refugee Migration and Europe

By Keith Rankin -

September 19, 2015

Dancing_and_singing_to_forget_the_pain_of_Syrias_conflict_(11235994366) — ]]>

Analysis by Keith Rankin. This article was also published on TheDailyBlog.co.nz.

The Desperate Journeys that so many Syrians – and others – are making across Europe reveal the shallowness of western thought about global human realities. The semantic distinctions between the words ‘refugee’ and ‘migrant’ allegedly determine whether we should be compassionate or cruel towards people whose main misfortune was to have been born in the wrong places at the wrong times.

The reality of course is that many refugees are migrants and most migrants are refugees. The exceptions are: people in a place of refuge waiting patiently for the situation they are escaping from to end, so that they can go back home (pure refugees); and people, like many young New Zealanders, who go on an extended Overseas Experience more as an adventure than with the intent to reject their tūrangawaewae.

I was one of the latter in the 1970s. I left New Zealand for the United Kingdom in 1974 when economic conditions were better in New Zealand, and I left the United Kingdom for New Zealand when economic conditions were better in the United Kingdom. Before my return to New Zealand in 1978 I met many New Zealanders who claimed to have left “because of Muldoon”. If true, these people were Muldoon refugees. No lover of Muldoon myself – although I do understand both the man and the times better now than I did then – I returned to New Zealand despite Muldoon. My journey in Africa on the way home was a highlight of my life.

For most migrants – as we understand the term – there are three factors at play: a push factor, a pull factor, and a cost factor. The suggestion that the present well-publicised refugee migrants are pure refugees is a case of political correctness, and denies that these people have a specific destination. Yet, when asked, each migrant invariably indicates that they do have a specific destination – usually a particular city, and certainly not always in Germany. To them the thought of being allocated by quota, like cattle, to some destination determined by ‘compassionate’ European bureaucrats is almost as appalling as the machinations of Victor Orbán.

We know well enough the multiple and substantial push factors driving Syrian emigration. The mere existence of push factors makes a migrant a refugee. We are also learning quickly about the supply of emigration services, seemingly an important part of the Southeast European economy. We simplify this market by dismissing it as ‘smuggling’, but it’s a much more complex web of services than what is presented as petty trafficking.

Emigration services are profitable in Southeast Europe, so the supply of such services has increased, exactly as would be predicted in Economics 101. The result is that the prices in these increasingly competitive markets are coming down, giving more emigrants access to these services. The economic history of migration shows that, given the presence of push and pull factors, falling costs associated with the migration process become the critical determinant of the number of migrants.

So the push factors are there, in abundance. The market has responded to the opportunities arising, resulting in falling costs and increases in ‘quantity demanded’, meaning more people in refuges choose to make the break from refugee to migrant.

What are the pull factors? Essentially there are two: income-earning opportunities, and communities formed by preceding migrants. Historically – whether the migrations to Aotearoa, or Hitler’s lebensraum – income-earning opportunities have mostly been about the possession of land. In the twenty-first century, however, it’s much more about employment opportunities.

But it’s also about public equity. The concept of public equity is essential to a proper understanding of economic issues, but is missing from the standard economic toolbox. Needless to say, it is obvious to all that there is a reason why average incomes in Germany are higher than in Hungary, Serbia, Greece, Turkey and Syria. Germany is a richer country because it has a suite of collective resources that allow wages, for example, to be higher than in most other countries. Economists will say that Germany has higher productivity, but leave us to infer that the sources of that higher productivity are essentially public; a mix of infrastructure and institutions. Social capital, broadly defined.

Germany not only has more employment opportunities, but also has more public equity. Merely to be a German permanent resident entitles a person to a higher disposable income than being a resident of Hungary, Serbia, Greece, Turkey or Syria.

The German magnet is essentially threefold – more job opportunities, more public equity, and more established immigrant communities that can support chain migration.

The global spread of social capital is a slow process that is countered by the growth of what might be called social anti-capital. Syria is riven by social anti-capital. Turkey likewise is host to increasing social conflict, caused only in small part by Syrian refugees.

Germany is not simply a (quite) generous victim of trans-European human jetsam. It has experienced an economic miracle in the years after 1950. So it enjoys a disproportionately high share of the world’s economic benefits; a disproportionate share of the world’s consumable goods and services. The problem is that it also hogs – for itself – a disproportionate share of the world’s economic costs.

Economic costs can be surmised in two words – ‘labour’ and ‘exports’. Both of these are costs which too many of us – and Germans more than most – think of as benefits. Germany needs to delegate more of its costs; it needs to let others do the work. And Germany needs to import more than it exports. A country with dangerously high trade surpluses, it needs to invest in the productive capacity of deficit countries like Greece and Turkey, so that workers resident in these countries can labour to produce more of the goods that German consumers enjoy.

This approach would mean that not only Greeks and Turks can find income-earning opportunities in their own countries, but that people requiring refuge in Greece and Turkey can find opportunities to strengthen their host countries through work in their export sectors. Further, this is the process whereby social capital builds these countries, eventually allowing them to enjoy levels of productivity comparable to those found in Germany. Indeed refugee workers in Turkey and Greece would imbibe much of that accumulating social capital, taking it with them when they eventually return to their homelands.

Once we properly understand that labour is a cost, not a benefit, then people in and from poor countries can incur those costs, making goods some of which will be exported to rich countries, allowing the rich countries to produce less while still being rich. Through the increased employment of poor people in or near to their homelands, others, in the rich world, can benefit by working less.

German savings are assuredly being invested in the profitable emigration industries in Southeast Europe and Turkey. German savings could be invested instead in the production of tradable goods in Southeast Europe and Turkey, with Germans themselves benefitting through working substantially less. This can only happen if Germans become less reliant on wages and salaries, and properly acknowledge their high levels of public equity.

Germans can pay their residents more in the form of public equity dividends, and devolve much of their present industry to the European periphery. Likewise, countries on the European periphery (like Turkey and Greece) can choose to support refugees by employing them, and paying their own residents public equity benefits in lieu of reduced labour requirements. Turkey (as the Ottoman Empire) employed huge numbers of Syrians to fight at Gallipoli 100 years ago. If enabled by the likes of Germany to run trade surpluses, Turkey can employ its Syrian guests once again in large numbers. (Even German government aid to these countries for such purposes would be a form of investment. The return on that investment would be the stemming of the migrant flows and the offsetting of the region’s destabilising financial imbalances.)

The refugee migrants that we see on our TV screens – and the many more that we do not see – want just three things: peace, a source of income, and a community to belong to. For many, only Germany offers all three. It need not be so.

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MBIE funds UC researchers’ ideas for over $3 million

By Selwyn Manning -

September 18, 2015

NewsroomPlus.com Contributed by University of Canterbury Three University of Canterbury (UC) science research innovations are among the successful proposals that will receive funding worth more than $3 million through MBIE’s 2015 Science Investment Round. The Smart Idea project from Simone Dimartino received Phase 2 funding following a successful Phase 1, and Daniel Holland and Catherine Bishop were both successful with Targeted Research proposals in the High Value Manufacturing and Services portfolio. UC Chemical & Process Engineering (CAPE) researcher Simone Dimartino said of his project, 3D printed adsorptive media, “This really recognises the potential of our idea and the quality of the research outputs the team has generated so far. Many partners and collaborators – more than 30 people – have worked hard on the project, involved in both research and commercialisation. Most importantly, the renewed funding indicates the quality of the idea and the clear potential there is for commercialisation. Dimartino said of the project: “In our Smart Ideas Phase 1, we demonstrated that we can use 3D printing methods to create perfectly ordered structures with feature sizes smaller than a millimetre. While this is already an important achievement, we want to extend these results to increase the resolution to the order of a few micrometers. “We’re also looking at new materials for 3D printing. While most current 3D printers use plastic-based materials, we’ll be printing biological and sustainable materials. We expect our research to have important applications in a range of industries, including bioseparations, pharmaceuticals, biosensors, catalysis and filtration, as well as in tissue scaffolding for regenerative medicine. UC Chemical & Process Engineering (CAPE) researcher Daniel Holland said of his research project Quantitative Benchtop NMR using Bayesian Analysis, “Nuclear Magnetic Resonance (NMR) is one of the most widely used analytical techniques in chemistry. However, traditionally in order to get the sensitivity, you need to use superconducting magnets that cost upwards of $1 million. “What we are doing is developing a new mathematical approach for the data analysis that will make cheap, portable instruments as sensitive as current superconducting instruments,” Holland said. “The neat thing is that this approach will also be applicable to superconducting magnets and so will improve the sensitivity of the next generation of those as well.” The third successful proposal, Race to the Finish: Processing and Properties Optimization of self-cleaning, antimicrobial ceramic coatings for buttons, knobs, handles and rails in hospitals, came from the Advanced Energy and Material Systems Lab (AEMSLab) – a multidisciplinary research group led by UC’s Department of Mechanical Engineering. The successful project is led by Catherine Bishop in Materials Science and Susan Krumdieck in Process Engineering, but also includes a wider group including Chemical and Process Engineering, Electrical Engineering and Chemistry researchers. The work will be carried out in cooperation with Koti Technologies, and also involves collaborators at Callaghan Innovations, GNS Science and several labs in the UK, Switzerland, Germany and France. Bishop is currently on sabbatical in the United States. Krumdieck said, “The group is extremely excited to have been successful in gaining funding. There is an urgent need for this protection from hospital acquired infections, and this investment in science and engineering research will allow Koti to get into the market at a critical time.” MBIE received 157 full proposals through the submission process. The successful proposals were selected by the Science Board following robust review by independent experts. The new research contracts will start on 1 October 2015, for periods of two, three and four years. The results of the 2015 contestable round saw UC awarded three of the 48 grants in a field that included seven other universities, seven CRIs, various consulting firms and other entities. –]]>

NewsRoom Digest: Top NZ News Items for September 18, 2015

By Selwyn Manning -

September 18, 2015

This edition of NewsRoom_Digest features 8 resourceful links of the day and the politics pulse from Friday 18th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the tsunami warning for NZ’s east coast and the Chatham Islands being cancelled, the casino operator SkyCity is expecting to start work on its international convention centre Auckland before Christmas after gaining resource consent and Immigration NZ’s stance that the three New Zealand-born children of a father awaiting deportation to Kiribati will also be sent to the island

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: NZ – Filipino Arrangement on migrant workers; Minister welcomes NZICC resource consent; Improving the HPV immunisation programme; McClay to visit China; Support for world’s smallest penguin;Ministers re-affirm Defence relations; McCully to EU and UN

Greens: Govt loaded decks in SkyCity’s favour leaving NZers to foot the bill

Labour: Kate Sheppard’s legacy still has to be lived up to

Māori Party: Advancing the interests of Māori land owners

New Zealand First: NZ Rugby World Cup Fans The Poor Cousins

LINKS OF THE DAY

ACCOUNTANTS AGAINST CORRUPTION: Australia and New Zealand risk losing their global standing in anti-corruption efforts, according to a new report from Chartered Accountants Australia and New Zealand (CA ANZ) released today. The report is available at: http://www.charteredaccountants.com.au/futureinc/Publications

ANZ NZ JOB DATA: Labour demand continues to weaken modestly, with a buoyant Auckland job market holding up the national figures against larger falls, according to the latest ANZ job advertising data. More information is available at: http://www.anz.co.nz/resources/a/e/aeb9d846-c4ae-4293-9bef-69fb6276a575/ANZ-JobAds-20150918.pdf?MOD=AJPERES

CONVENTION CENTRE CONSENT GRANTED:Independent commissioners have granted a resource consent, subject to conditions, for the New Zealand International Convention Centre. A copy of the decision is available here:http://www.aucklandcouncil.govt.nz/EN/AboutCouncil/meetings_agendas/hearings/Document/conventioncentredecision20150828.pdf

GOOD NEIGHBOURS: Almost 90 percent of us are happy with the amount of contact we have with our neighbours – although nearly half of us have little or no contact with them, Statistics New Zealand said today. Read more at:http://www.stats.govt.nz

/browse_for_stats/people_and_communities/Well-being/social-connectedness/social-networks/connection-to-neighbourhood.aspx

HPV IMMUNISATION PROGRAMME: Health Minister Jonathan Coleman has welcomed a plan to improve the National Human Papillomavirus (HPV) immunisation programme.The immunisation improvement plan, can be viewed on the Ministry of Health website here: http://www.health.govt.nz/publication/revitalising-national-hpv-immunisation-programme

INVESTMENT APPROACH, NAH: The Council of Trade Unions has published a paper on the MSD’s “Investment Approach”, showing that it fails the test of being an investment approach. The paper is available at:http://union.org.nz/sites/union.org.nz/files/Investment%20Approach%20is%20not%20an%20investment%20approach%20-%20Rosenberg_0.pdf

MIGRANT WORKERS: A bilateral Arrangement on the recruitment and treatment of Filipino migrant workers has been signed. A copy of the Arrangement is available here: http://www.mbie.govt.nz/info-services/employment-skills/international-services/arrangement-on-the-recruitment-and-treatment-of-filipino-migrant-workers/

SUPERSENIORS WEBSITE: A new website for New Zealand’s SuperSeniors has been launched today. SuperSeniors will pull together in one place the wealth of information available for older New Zealanders online, including superannuation entitlements, finances, health and SuperGold discounts.The website can be accessed athttp://www.superseniors.msd.govt.nz

And that’s our sampling of “news you can use” for Friday 18th September.

Brought to EveningReport by Newsroom Digest. –]]>

Radio: NZ Report Chinese Move To Buy Prime Farm Block Blocked + Dunedin’s Cannabis Museum Has Guests!

By Selwyn Manning -

September 18, 2015

New Zealand Report: Selwyn Manning delivers his New Zealand Report to Australia’s radio FiveAA.com.au. This week: Chinese Move To Buy Prime Farm Block Blocked + Dunedin’s Cannabis Museum Has Guests – Recorded live on 18/09/15.

ITEM ONE Foreign Bid Farm: The National led Government has for the first time rejected a major bid by a Chinese company to purchase a large farming block in the Central North Island. Pure 100 Farm applied in 2014 to the Government’s Overseas Investment Office to buy Lochinver Station near Taupo for $88 million. The 13,800 hectare farm is considered prime farming real estate. The Overseas Investment Office initially authorised the purchase, but Associate Minister of Finance Paula Bennett this week rejected the purchase, stating there was no significant benefit to New Zealand should the sale to go ahead. Pure 100 Farm is a subsidiary of the China-based Shangahai Pengxin company. In February Shangahai Pengxin stated it planned to double its $500 million investment in New Zealand-based farm assets, within the next five years. The current owners of Lochinver Station are angry. Stevenson Group’s chief executive Mark Franklin told media on Wednesday: “We are concerned that this process has taken 14 months with the end result that we have been deprived of our property rights to sell to the highest value bidder for some vague national benefit which has not been defined.” There has been much public angst about foreigners buying up significant blocks of New Zealand land. And the Government faced strong condemnation in 2012 when it approved the sale of a network of land (known as the Crafer Farms) to Shangahai Pengxin. But Bennett rejected suggestions the sale was blocked because the buyers were Chinese. She told the New Zealand Herald: “I’m not going out there and deciding who buys land on the basis of their surname.” Bennett added that one of the reasons for declining the sale was the low number of extra jobs it would provide. ITEM TWO A Night You May Not Remember: A night at the (cannabis) museum (ref. Stuff.co.nz includes image plus video) If you are looking for a holiday you may possibly forget, consider checking in to Whakamana, the Dunedin-based cannabis museum, which is now listing its guestroom on AirBnB. The museum is promoting its enterprise in a rather laid back manner, describing its accommodation as having an “awesome queen bed with reading lamps, a bit of closet space, plenty of electricity outlets… and a few houseplants.” Curator Abe Gray told Fairfax’s Stuff website he couldn’t help people ‘score’ but he could take interested people on custom tours, to certain scenic locations … which include the pro-cannabis law reform protests at the University of Otago.

New Zealand Report broadcasts live on FiveAA.com.au and webcasts on EveningReport.nz LiveNews.co.nz and ForeignAffairs.co.nz.

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‘World Without War’ – and a conference to help make it happen?

By David Robie -

September 17, 2015

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Report by David Robie. This article was first published on Café Pacific MORE than 40 people with wide-ranging expertise will pool their knowledge and ideas and propose an action plan for peace at a two-day conference this weekend at Auckland University of Technology. As Peace Foundation president Dr John Hinchcliff says in the above video interview with Pacific Media Watch’s Alistar Kata: “The world is facing a grim future in many directions, in not just nuclear weapons.” The idea is for people share their knowledge as the basis for understanding the global threats and developing realistic action that might make a difference. According to the World Without War action website, participants include “senior academics from AUT, the University of Auckland and Waikato University, experts against violence and war from Sweden and New Zealand, critics concerned about high tech weaponry, leaders representing our youth, the United Nations, Māoridom, education and religions.” –]]>

NewsRoom Digest: Top NZ News Items for September 17, 2015

By Selwyn Manning -

September 17, 2015

This edition of NewsRoom_Digest features 12 resourceful links of the day and the politics pulse from Thursday 17th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the Government rejecting an application by a subsidiary of China-based Shanghai Pengxin for purchase of the 13,800 ha Lochinver Station because the benefits to New Zealand were not considered sufficiently substantial and identifiable, creditors of Solid Energy approving a progressive sell-down of the company’s assets over the next two-and-a-half years and a tsunami warning being issued for New Zealand’s eastern areas after a magnitude 8.3 earthquake struck off the coast of Chile.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: NZ welcomes reconciliation moves in Sri Lanka, Suffrage Day raises profile of inspiring leaders; Online tool helps food businesses understand new regulations; $5.5m projects see new classrooms open at two Auckland schools; Bill passed to resolve land issues; New A+ sustainability standard for aquaculture; New school for Western East Cape; McClay welcomes sensible outcome for Solid; James Cook Research Fellowships awarded; Speech- Bill English – Social Investment; Tsunami warning marine and beach threat; Dunedin Hospital redevelopment next steps; Minister congratulates Pacific music legend; Major benefits expected from new forest harvesting technology

ACT Party: Come on Labour, step up to the plate

Greens: Economic slowdown an opportunity to invest; Better rules needed to keep NZ land in Kiwi hands; Divestment Bill part of climate solution; Govt must ensure Solid Energy buyers live up to standards

Labour: Desperate Government threatens financial veto – again; Lochinver is right decision for first time since 2012; Worst Six Months for Economy since 2011; TICS Amendment Bill a check on Minister’s powers; Joyce unaware of National MP on Taratahi board; Parliament should back pathway to work; Government sends major Canterbury contract to Australia; Target fail- Exports to GDP lowest since 1997; Bulging mailbag sign of growing health crisis; Target fail- Exports to GDP lowest since 1997

New Zealand First: So Where Was The Benefit In All The Other Farm Sales To Foreigners?; Speech- Protecting the integrity of sport and preventing corruption

United Future Party: Dunne Speaks- Are the Politics of Moderation Dead?

LINKS OF THE DAY

BIRTHDAYS GALORE: Statistics NZ is reminding New Zealanders that their wallets may be in for a hammering, with ‘peak birthday’ due to hit the country this week. The peak birthday period will start on 19 September and stay with the country until 1 October. As a fun feature Stats NZ has released Rank Your Birthday, a tool to show birthdate rank, how common it is, and how many people potentially share the big day. The calculator is based on births from 1980 to 2014 and can be accessed here: http://www.stats.govt.nz/browse_for_stats/population/pop-birthdays-table#tool.aspx

COUNTING KERERU: The Great Kererū Count is about to take flight, with New Zealanders across the country being asked to keep their eyes on the skies to help scientists build up a comprehensive picture of where our native pigeon is – and isn’t – found. The annual count runs from Saturday 19 Sept until Sunday 27 Sept. Public observations can be recorded on the website http://www.greatkererucount.nz

ECONOMIC GROWTH BOOSTED: Growth in services and primary industries supported a 0.4 percent increase in GDP in the June 2015 quarter. Read more here:http://www.stats.govt.nz/browse_for_stats/economic_indicators/GDP/GrossDomesticProduct_HOTPJun15qtr.aspx

GST: An issues paper was released today that provides options to improve the way certain GST-related rules operate in practice. The officials’ issues paper, GST – Current issues, can be found at www.taxpolicy.ird.govt.nz

FOOD BUSINESSES: An online tool was launched today that will help food businesses discover how they will be affected by the new Food Act 2014, which comes into force in March next year. People can find out which rules will apply to their business, and when they will need to transition to the new rules, on the MPI website:http://www.mpi.govt.nz/food-safety/food-act-2014/where-do-i-fit/

FRUIT FLY PROGRAMME: The Ministry for Primary Industries (MPI) is asking Auckland residents to hang in there for just a few more months while it completes its programme to eradicate a small population of the horticultural pest, the Queensland fruit fly. Full details about movement restrictions is available at:http://www.biosecurity.govt.nz/pests/queensland-fruit-fly

INSPIRING LEADERS: A toolkit of resources for women looking to achieve their leadership goals has today been launched by Minister for Women Louise Upston. View the Inspiring Women case studies athttp://women.govt.nz/inspiring-women

NATIONAL SCIENCE CHALLENGE: The Science for Technological Innovation National Science Challenge has been launched, with initial funding of $32.92 million. For more information about the National Science Challenges, visithttp://www.mbie.govt.nz/info-services/science-innovation/national-science-challenges/

OPPOSING EUTHANASIA: A website dedicated to helping families oppose euthanasia and assisted suicide, and to help them make a submission to the inquiry being carried out by Parliament’s Health Committee. Go here for the website: http://www.protect.org.nz/

PURCHASE OF LOCHINVER STATION DECLINED: An overseas company’s application to purchase Lochinver Station has been declined because the benefits to New Zealand are not substantial and identifiable. Click here for more: http://www.linz.govt.nz/news/2015-09/pure-100-farm-limited-application-for-consent-acquire-lochinver-station

TSUNAMI ALERT: Christchurch Civil Defence and Emergency Management (CDEM) is monitoring the tsunami alert issued by the Ministry of Civil Defence and Emergency Management at 12pm today for East Cape, Chatham Islands, Coromandel and Banks Peninsula. Read more information from the Ministry at: www.civildefence.govt.nz

WATER QUALITY ISSUES: “When it comes to water quality – are we playing a long game or a short game?” asked lawyer Helen Atkins, partner at specialist environmental law firm Atkins Holm Majurey, at Water New Zealand’s annual conference today. See more here: http://www.waternzconference.org.nz/

And that’s our sampling of “news you can use” for Thursday 17th September.

Brought to EveningReport by Newsroom Digest. –]]>

Updated: Last ditch TPPA Ministerial in 10 days – is Groser preparing to swallow the rat?

By Selwyn Manning -

September 17, 2015

Information Sourced by EveningReport.nz from Professor Jane Kelsey + NZ Government.

[caption id="attachment_6181" align="alignleft" width="150"]

Professor Jane Kelsey.[/caption]

Canadian officials have confirmed rumours that the trade ministers from the twelve countries negotiating the Trans-Pacific Partnership Agreement (TPPA) plan to meet in Atlanta, US at the end of the month in a last ditch attempt to conclude the deal. The chief negotiators are set to meet on 26 September to try to clear the ground for the politicians.

The ministers’ meeting coincides with the UN Sustainable Development Summit when their political leaders will be together in New York, giving US President Obama the perfect opportunity to pressure John Key and the others to accept US demands, according to Auckland University law professor Jane Kelsey.

Of the three big outstanding issues – market access on automobiles and dairy and longer monopoly protections biologic medicines – autos is the only one where there have been public moves to settle the differences.

Mexico and Canada object to a deal on autos reached by the US and Japan. The four said progress was made at a meeting this week and will meet again early next week in the US.

‘Whether the Atlanta ministerial would proceed without agreement on autos remains to be seen’ Professor Kelsey said. ‘Another failed ministerial would doom the negotiations. But they are between a rock and a hard place, as the controversial deal is now hostage to the US presidential election cycle and this is really their last chance to conclude it under Obama’.

The market access issues are especially sensitive for Canada, which has an election in a month from now, but the details of the deal would not be released until after that date.

‘In contrast to autos, there has been no noise about dairy at all,’ Kelsey said. ‘This lends support to the view expressed to me by informed people in other countries that autos is the bigissue and once that is settled dairy is not expected to delay a final agreement.’

‘Put another way, Groser is expected to swallow the rat, rather than hold up the deal, and wear the flack at home by saying New Zealand couldn’t afford not to be part of the TPPA. The details of the final deal won’t be available for another 30 days so he can talk up the benefits without any facts to get in the way.’

* Professor Kelsey called on Minister Groser to ‘abandon his carefully ambiguous language and set out some real bottom lines on pharmaceuticals, investment, state-owned enterprises, and dairy so New Zealanders know where he stands before the secret deal-making resumes in Atlanta.’

* New Zealand officials have confirmed inevidence to the Waitangi Tribunal that no substantive changes can be made after the negotiations are concluded. The US Fast Track law then drives the timetable. The President must give 90 days notice before signing the TPPA and the text must be made available 30 days after that – but too late to change anything in the text.

[caption id="attachment_7208" align="alignleft" width="150"]

Trade Minister, Tim Groser.[/caption] On August 1, Trade Minister Tim Groser wrote that he was disappointed that the TPP negotiations were unable to reach a conclusion. He added however that TPP ministers “collectively pledged to meet again as soon as possible to finalise the deal”. Groser said good progress was made in the July/August negotiations “but a number of challenging issues remain, including intellectual property and market access for dairy products”. “We will continue to work toward a successful conclusion. This is about getting the best possible deal for New Zealand, not a deal at any cost. “I am confident that we will reach an agreement that is in the best interests of New Zealand when negotiations resume,” Tim Groser said. On August 21, Groser traveled to Malaysia to take part in meetings involving Asia and BRIC nations counterweight to the TPP – the Regional Comprehensive Economic Partnership (RCEP). The RCEP meetings were held alongside the the annual East Asia Summit Economic Ministers’ Meeting, and ASEAN Economic Ministers’ consultations with New Zealand and Australia. At the time Groser wrote: “The Kuala Lumpur meetings are an important point of engagement for New Zealand with ASEAN and the wider Asian region.” He added: “The RCEP meeting will review the overall state of the negotiation and its forward path. We also look forward to confirmation of an agreement on the structure for initial market access offers on goods.” The Government detailed how East Asia has more than 3 billion people and there is increasing regional economic integration:

RCEP countries include 7 of our top 10 trading partners who took nearly $30 billion of our exports in 2014. Helping New Zealand businesses gain greater access to that massive customer base will provide significant benefits to our economy.

Groser also took part in:

Celebrations to commemorate the 40th anniversary of dialogue relations between New Zealand and ASEAN. This includes events to showcase the New Zealand-ASEAN relationship, such as a NZ-ASEAN awards event, NZ-ASEAN Business Council meetings and an alumni forum for the ASEAN-New Zealand Young Business Leaders’ Initiative.

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Editorial: Can Turnbull Compel Key to debate beyond the banal and assume the reputation offered him?

By Selwyn Manning -

September 17, 2015

Editorial by Selwyn Manning.

Selwyn Manning, editor – EveningReport.nz

In a week where Malcolm Turnbull relieved Australians of their elected prime minister and, as new leader, delivered a lift in the polls for the Liberals – it’s time to consider whether he can coerce his New Zealand counterpart to reach beyond the banal and truly assume the reputation offered to him.

For the record, in his first press conference on taking back the Liberal Party leadership, Malcolm Turnbull singled out John Key’s leadership style. He said:

“John Key has been able to achieve very significant economic reforms in New Zealand by doing just that, by taking on and explaining complex issues and then making the case for them. And I, that is certainly something that I believe we should do and Julie and I are very keen to do that again.”

In reply, John Key said this week:

Both he and Turnbull were both moderates and at the centre of their respective National and Liberal parties. They both came from an investment banking background. (ref. NZHerald.)

Labour leader Andrew Little sounded rather peeved. He said:

Key had presided over seven deficits, growing public debt, and an economy that did not have much to show for seven years of National Government. “If that’s Malcolm Turnbull’s ambitions, then I pity Australia.” (ref. NZHerald.)

Standing back from it all, I see John Key’s magic is his common touch. He can mix it with people in the street. Have a bit of a laugh one-on-one, and, also successfully deliver a good comedy routine to a live crowd.

He is no technocrat, he’s intelligent but avoids intelligent debate. If challenged, or if confronted with rational robust inquiry, he can demonise the messenger, relegate them as having political motives. He has been known to use ridicule using the weight of his prime ministerial power.

Key’s success is also due, in my opinion, to an ability to shrug off criticism, move on from an issue, to render his opposition impotent by taking effective elements of their policy. This is especially so when he detects a public mood for change on an issue, Key will remove the opposition from the space, pluck the popular aspects of their policy, rebrand it, dominate the debate, and claim the solution as his own.

It is slick politics. But it so often misses the mark at being effective.

Consider:

The Key Government’s hands off approach to foreign-based speculation in the Auckland housing market;

What solutions has the Key Government developed in response to the devaluation of the white-gold economy?;

The Key Government’s inability to deliver solutions (or even respite) for families living in those state-owned homes that are simply mouldy damp, toxic slums;

How the Key Government was reluctantly dragged to the alter of human reasonableness over the global response to Syria/Europe’s mass refugee disaster.

John Key’s magic is not what Malcolm Turnbull suggested. It is not due to delivering economic reforms in New Zealand by taking on and explaining complex issues and then making the case for them.

For example, centre-right voters and developers have long demanded the National-led Government reform the Resource Management Act. Key’s government has tweaked the RMA but after seven years in office, it has not delivered reform to the satisfaction of that key voting bloc.

However, the Trans-Tasman leadership relationship, the bromance, is likely to thrive. Both prime ministers are as Key rightfully suggested, representatives of the more moderate elements of their respective National/Liberal parties.

And one would hope, that the intelligence and commitment that Malcolm Turnbull brings to robust debate, and to the Australian prime ministership, may rub off on our prime minister – this at a time when comparatively New Zealand has lost its zest for discourse beyond infotainment.

Flagging the likelihood of a strong El Nino event this year

By Selwyn Manning -

September 17, 2015

NewsroomPlus.com Contributed by Ben K Jarman, J.P. Morgan Australia Limited It has been said that economists make weather forecasters look good. Combining the two therefore seems especially dangerous, but it is nevertheless worth mentioning that the experts are flagging the likelihood of a strong El Nino event this year. In New Zealand, El Ninos have played out as negative supply shocks to the primary sector, with floods in normally dry areas, and drought in normally fertile areas. As an agricultural commodity exporter, El Nino depresses real primary sector output, real exports, and real GDP growth in New Zealand, but typically raises export prices, and has mixed effects on inflation. In general the implications for the currency are therefore not obvious, but at this juncture we see the RBNZ being most sensitive to incremental growth weakness, and the mix of outcomes as worsening an already deteriorating external balance. Both should make an El Nino event negative for NZD, consistent with our forecast bias (NZD/USD to 0.58 over the next 12 months). The 2015 El Nino New Zealand’s weather authority, MetService, noted this month that the 2015 El Nino event “has reached maturity in the tropical Pacific Ocean. Both the ocean and atmosphere have surpassed strong thresholds.” Sea surface temperatures are a couple of degrees warmer than normal, and the Southern Oscillation Index (SOI, see Figure 1) is deep into negative (i.e. El Nino) territory, which hasn’t happened to that degree since the severe event of 1997-98. Rainfall in New Zealand is only slightly below average at this stage, but the El Nino phenomenon is expected to strengthen into year-end, with the potential to drive a much drier than normal summer and early autumn, which depresses winter crop yields and pastures for livestock/dairy into mid next year. A hit to growth, for an already growth-defensive central bank Below we have used the meteorological bureau’s classification of El Nino events over the last 20 years (1994, 1997-98, 2002-03, 2006, 2009-10) to examine how the phenomenon typically affects macro variables and NZD/USD. At first glance there does not appear to be any obvious pattern in terms of how El Nino affects the currency (Figure 2). But it is important to first control for other dynamics playing out in the economy to find the marginal influence of this supply shock. We model a vector of macro variables as a system, adding in a dummy variable to represent the effect of El Nino periods (more details at the bottom). The results discussed below therefore represent the ‘average’ El Nino effect after controling for other influences. Comparing our own results with other studies, the most convincing finding is the effect of El Nino on primary sector GDP, which, after incorporating that sector’s share of total output, reduces real GDP growth by a total 0.5%-pts over 4 quarters (Figure 3). This is in the ballpark of the 0.3%-pt drag estimate made by the IMF (see here) and the 0.3-0.6%-pt drag the RBNZ pegged on the 2013 drought (see here). The RBNZ’s work is in particular worth mentioning as, unlike our approach which treats all El Ninos as equal, their work calibrates the extent of dry weather conditions to the geography and the time of year when it will do most damage. An El Nino that creates dry weather through March, as in the 2013 drought, would therefore push estimates of the growth drag to the upper end of the above range. What muddies the waters somewhat with El Nino is the fact that the negative supply shock to the primary sector typically pushes up export prices, on our estimates by 4-5% on average, creating some complications for inflation and monetary settings. Certainly the 2013 drought (not technically an El Nino episode) prompted a steep rise in dairy prices and made the RBNZ turn hawkish. However, our sense is that with dairy prices having fallen sharply over the past 18 months (even after the bounce of the last few auctions), and with the RBNZ having just delivered deep cuts to their GDP forecasts, the central bank will be more sensitive to the real GDP growth hit than to an export price rally off the lows. Another of our findings is that El Nino events are on average quite inflationary (+0.9%-pts). The RBNZ study mentioned above finds mixed effects (e.g. food prices up, non-tradables inflation down), while the IMF finds New Zealand to be an outlier among Southern Hemisphere economies, with El Nino being deflationary. The IMF concede, however, that this finding may be picking up the broader trend toward lower inflation through the sample, as inflation targeting took hold. We do not view our finding of inflationary El Ninos as having great significance for monetary policy, given the persistent undershooting of the inflation target in recent years. The fact that the inflation effect is measured to be positive, and similarly that NZD has historically risen more often than fallen during El Nino episodes, likely reflects the fact that the output gap happened to be positive on average when these events started. At the moment, the output gap is slightly negative, and GDP growth is moderating, which tilts the balance of risks to medium term inflation from an El Nino shock to the downside (Figure 4). Risks still biased to weaker news on the external sector We have been bearish NZD on the basis of the dairy sector’s weakness, the RBNZ’s change in stance, and external vulnerabilities. Tempering that to an extent has been our constructive view on the New Zealand household sector’s ability to withstand the income shock from the agriculture sector. The information to date on consumer spending and the housing market still suggests resilience. However, as the size of the primary sector shock gets bigger, it represents a bigger hit to headline GDP, in a world where the central bank is proving very sensitive to downside risks. As RBNZ Governor Wheeler made clear in last week’s MPS press conference, El Nino is on his radar too – Wheeler mentioned El Nino, alongside a “dramatic” China slowdown, as the most likely catalysts of recession in New Zealand that would bring “substantial” further rate cuts. Even if things don’t get that serious, the combination of deteriorating primary sector exports and stable domestic demand growth under an El Nino event would push the current account deficit wider, and increase the call on foreign savings at a moment when markets are losing patience with current account deficit nations. Model details: We estimate a VAR system, using quarterly data with 4 lags on; global GDP growth; the NZ output gap (2 qtr lag); NZ export price growth (USD terms); the quarterly change in NZD/USD; 1 quarter change in the RBNZ OCR; primary sector GDP growth; and quarterly inflation. We then add an exogenous dummy variable set to 1 for quarters in which El Nino was active. Alternative specifications involved including the El Nino dummy as an endogenous variable, placed first in the Cholesky ordering, with other variables as above. This did not change the estimates materially. _______________________________________ Source provided to editor@newsroom.co.nz: markets.jpmorgan.com/research –]]>

Taking control: why computer coding should be taught in primary schools

By Selwyn Manning -

September 16, 2015

In my last piece I focused on the first device I bought to use the Ubuntu version (AKA Ubuntu distro) of the Linux Operating System (OS). I found much online collaborative activity contributing to the use of Ubuntu. I was looking for an alternative to the Windows OS, which does almost everything for us, making it easy to use and accessible: but with it we give up control to Microsoft and its big corporate, competitive, market-dominating enterprise driven by the profit incentive. Using Ubuntu requires a little more effort, but with it, comes a bit more control of my computing, and an increase in understanding about what makes computers and their software work. Using Ubuntu is much like using Windows in many ways. For the first couple of weeks I was able to do most things I wanted with mouse clicks. I was a little wary of taking the step to use the terminal to type commands. This involves communicating more directly with the OS, typing in coded commands. However, once I made the effort to do this, I soon gained confidence. I was reminded of the first computing course I did back in the mid-late 1980s. Those were the days before the World Wide Web, browsers and the mouse that can click on pre-coded links. Everything had to be done through typing in commands in a form (or language) that the OS could read. I learned to create my own graphical patterns, and was told this was a very simple form of programming. At the time it gave me a great sense of achievement, and confidence in my computer use. Back then, there was some optimism that computing use would equip all young learners with the ability to create their own programmes, thereby having a lot of control over their computing use, and stimulating their creativity. But gradually the big corporates gained prominence, and took a lot of the imitative from ordinary users. They started to do everything for us. Now many of us have no idea about how much of our personal information, stored in ‘My Documents’ and other folders, get sent back to Microsoft, and used for marketing purposes. We have no idea how many back-doors are included in digital devices by the NSA (us National Security Agency) and its 5 Eyes partners. As a result of my experiences with Ubuntu, I have begun to think about the importance of teaching computer programming in schools. There are growing calls for such teaching. The Australian Labor party leader Bill Shorten, recently announced that it would be Labor policy to include the teaching of programming in schools. In May this year, The Conversation reported:

Bill Shorten’s recent announcement that, if elected, a Labor Government would “ensure that computer coding is taught in every primary and secondary school in Australia” has brought attention to an increasing world trend.

Many foreground that this is necessary for building a successful national IT industry. However, the benefits for all or most young children learning the basics of computing is far greater than that: it’s about gaining more understanding and control of the use we make of digital devices. While specifics of the various computer languages change, the underlying principles remain pretty much the same. That means once learned they can be transferred to new computing developments. Much of the current focus on computing in schools focuses on how various current devices are used. On Tuesday, Radio NZ reported that a recent OECD study showed that:

… education systems which had invested heavily in information and communications technology had seen “no noticeable improvement” in Pisa test results for reading, mathematics or science. “If you look at the best-performing education systems, such as those in East Asia, they’ve been very cautious about using technology in their classrooms,” Mr Schleicher said.

Last year in NZ, the case was put for school students learning to write code. Lee Suckling reported, [caption id="attachment_7180" align="alignleft" width="287"]

Photo accompanying Lee Suckling’s article on Stuff website.[/caption]

In a nutshell, learning to code enables pupils to learn the step-by-step commands to make websites, games, and apps. Common coding languages include HTML, Python, CSS and JavaScript: all of which are widespread and versatile. At the moment, coding is optional in New Zealand schools and the uptake is limited since it was introduced at NCEA level in 2011.

Nicholas Jones reported that students as young as 7 years old are successfully learning to write code at West Auckland’s Marina View School. I will describe the steps I took to use Ubuntu on a reconditioned laptop.]]>

NewsRoom Digest: Top NZ News Items for September 16, 2015

By Selwyn Manning -

September 16, 2015

This edition of NewsRoom_Digest features 8 resourceful links of the day and the politics pulse from Wednesday 16th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the international dairy prices rising sharply for the third consecutive time, a decision by Wellington City Council to take part in a trial of online voting for next year’s local body elections and controversy that Work and Income has been underpaying some beneficiaries by a day after their initial stand-down period for the past 18 years – a “mistake” that legislation has been introduced to Parliament to retrospectively nullify.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government:Bill to establish child sex offender register passes first reading; Pharmac funds first rare disorders medicine under new approach; Speech: Jonathan Coleman – NZ Nurses Organisation annual conference, Te Papa, Wellington; Tourism fund opens for fourth round; Registrations of Interest sought for Local Mobility Action Teams; Museum to bring more art to Christchurch city; Refinements to Auckland Unitary Plan process announced; Changes to commercial fishing catch limits; Partnership approach to visiting drivers’ safety

Greens: Sam Lotu-Iiga must be stood down

Labour: Come on John, leave Kiwi families a real legacy; Ministers pass buck on Pasifika centre; Nats’ short-termism leaves Super Fund $17b lower; Nats flaky funding putting NGOs at risk; Prime Minister must seek flag solution; National MP implicated in Taratahi funding rorts

New Zealand First:PM Remains Hands Off Despite Warnings On Foreign Buy-In Of Silver Fern Farms

NZ National Party: Local MP encourages earthquake preparedness

LINKS OF THE DAY

AIR NZ LAUNCHES SUSTAINABILITY FRAMEWORK: Air New Zealand released its first Sustainability Report today. A digital copy of the report is available here: http://www.airnewzealand.co.nz/assets/PDFs/J004845-Sustainability-Report-2015_FINAL-ART-NEW_MEDRES.pdf

GLOBALDAIRY TRADE: International dairy prices have risen sharply for the third consecutive time. The GlobalDairyTrade auction’s overall price index rose 16.5%, its biggest increase in the past five years. More information is available at: https://www.globaldairytrade.info/

NZ EXPORTS: Data released by Statistics New Zealand show a rise in New Zealand’s overseas expenditure combined with a fall in earnings from exports drove an increase in our seasonally adjusted current account deficit. More information is available at:http://www.stats.govt.nz/browse_for_stats/economic_indicators/balance_of_payments/BalanceOfPayments_HOTPJun15qtr.aspx

NZ INVESTMENT QUARTERLY: The month of August 2015 provided a salutary reminder of why equities and other growth assets command a risk premium. Markets fell over 10% and intra-day market volatility rose to levels not seen since the GFC period. Read more: http://nzier.org.nz/about/new-zealand-investment-quarterly/

OECD STUDY: An OECD study has found that investing in computers in schools doesn’t appear to improve pupils’ achievement. The study is available at: http://www.oecd.org/education/students-computers-and-learning-9789264239555-en.htm

SKILLED JOB VACANCIES: The number of skilled job vacancies advertised online fell by 0.1 per cent in August, while there was a 1.9 per cent rise across the year, according to the Ministry of Business, Innovation and Employment’s (MBIE) latest Jobs Online report. Read the report: http://www.mbie.govt.nz/info-services/employment-skills/labour-market-reports/jobs-online

TOURISM FUND OPENS: The opening of the fourth funding round of the Tourism Growth Partnership was announced today. More information is available at:www.mbie.govt.nz/info-services/sectors-industries/tourism/tourism-growth-partnership

WALK 2’D FEET: Kiwis are being asked to put their best foot forward this Sunday (20 September) for New Zealand’s first nationwide Walk 2 D’Feet Motor Neurone Disease (MND).For information on locations and to register for your local event, visit: http://www.walk2dfeetmnd.co.nz or facebook page onhttp://www.facebook.com/Walk2DFeetMNDNZ

And that’s our sampling of “news you can use” for Wednesday 16th September.

Brought to EveningReport by Newsroom Digest. –]]>

The Homeless: They’re not just statistics

By Selwyn Manning -

September 16, 2015

NewsroomPlus.com Contributed by Rupeni Vatubuli, NewsRoom_Plus Homelessness is witnessed on an everyday basis. We cannot help but sympathise for those who are less fortunate as we walk past.

Flickr_Jim_Fischer — Source: http://wlrn.org/

There are many factors that could lead up to someone being homeless whether it’s caused by a job loss, family dispute, physical disabilities or even untreated mental illnesses. Whatever the reason may be, it’s likely that in the course of our lives we will know of someone who has been on the verge of being homeless, if not in a full state of being homeless. Truth be told, “homelessness” could hit us at any age or stage in life with sudden unexpected turn of events. What are the feelings that immediately speak of being homeless? The feeling of being Alone… Stranded… Hungry… Sleep deprived… Dirty… Too proud to beg… Helpless… Invisible… Worthless… And just when you think things could not get any worse, you get picked on by people who seem intent on denigrating your state of living further, as a source of amusement for them even … You try to scream but no one else hears you, and why would people bother? After all, you’re an eyesore to society…. These are elements of a a story I can relate too… because I lived it, albeit briefly, as a rough sleeping teenager. I remember feeling very much ALIVE in the head, but as far as society was concerned I was pretty much DEAD. The Hard Times report released last month by The Salvation Army has captured those tensions and is well worth turning to for an explanation of an issue that often goes under reported. As defined by Statistics New Zealand, homelessness encompasses the living situations where people with no other option to acquire safe and secure housing are without shelter, in temporary accommodation, sharing accommodation with a household or living in uninhabitable housing, while rough sleeping refers to those who are homeless and without shelter, and is the most extreme and obvious form of homelessness. Using Auckland as an example, the report states the alarming increase of rough sleepers in recent years. A recent City Mission report recorded 69 rough sleepers in 2013 which later increased to 147 in 2014. The count in 2014 is double the average yearly number over the past 10 years. Some may say “So? it’s not my fault that they’re too lazy…Homelessness is faced worldwide…there are organisations out there to help them, you’re repeating figures that I already know!” True, all true…but the purpose of the Hard Times report is to not only give you yearly figures but a face to each headcount of those who are homeless. The report captures this by representing the response of nineteen people who are sleeping rough in West Auckland. From sleeping in cars, parks, under bridges, under buildings, tents and so on. The participants explained the length of time in which they slept on the same spot. Where most answered spending “Over a month and less than an year”, one participant admitted sleeping in the same spot for more than 10 years. In terms of income, Most survive on Sickness benefits or Invalid benefits however almost all of the participants reported that the main source of income they received was a benefit from Work and Income. As for health and safety, 14 were identified as having physical or mental health issues, while on other hand of safety 12 of the participants reported that they had no concerns about their safety. A profile that especially caught my attention was of a man who has been living in his van for the past nine months. Relationship problems were a major contributor to his current living state. He is a father who is willing to work so his kids can have a home to stay in when they visit him. The feeling of not having things go your way is something we should all be able to identify with, along with trying to meet ends meet with the hope it will get better one day. I know I do and reading Hard Times really brought that home. –]]>

Value of NZ Super Fund Grows by $3.1 billion Over 2014/15 – Returns 14.64%

By Selwyn Manning -

September 16, 2015

Chairman Gavin Walker said the annual result was an excellent one. “The past year has continued a pattern of very strong, above-market returns by the Fund. These returns – 16.8% p.a. over the last five years – are the result of disciplined and consistent investing.”

“Returns in the 10%-20% range are at the higher end of our expectations and will not continue indefinitely. Over the long term we expect the Fund to earn, on average, 8%-9% p.a.”

Mr Walker said the year had been a highly successful one for the Fund’s active investment strategies, particularly its strategic tilting programme. The Fund exceeded its passive Reference Portfolio benchmark by $1.15 billion (4.45%) over the year. The Guardians’ expectation is to add value above the Reference Portfolio of approximately 1% per annum, over the long term.

Over the last five years active investment strategies have added $4.54 billion (3.65% p.a.) in value to the Fund.

“These results provide a strong endorsement of the Guardians’ ability to add value, after all costs, compared to a purely passive approach to funds management,” said Mr Walker.

The Fund also exceeded its second performance benchmark, the Treasury Bill return, by $2.90 billion (11.14%) over the year. The Treasury Bill benchmark is a measure of the cost to the New Zealand Government of contributing capital to the Fund instead of paying down debt.

Looking forward, Chief Executive Adrian Orr said global markets were currently experiencing increased volatility and uncertainty. Global equity markets fell -6.49%* in August.

Mr Orr said this current volatility would inevitably have an impact on Fund returns in the short term. “It is normal to see considerable volatility in our monthly and indeed annual returns. We remain focused on our long-term strategies. As an agile and highly liquid investor, we are well positioned to manage short-term volatility, and will look to take advantage of market disruptions as they occur.”

The Guardians recently re-committed to a long-run 80% growth, 20% fixed income Reference Portfolio composition. “Given the Fund’s long time horizon – it will keep growing until 2080 – this strong weighting to growth assets is appropriate,” said Mr Orr.

Mr Orr said further detail on the Fund’s performance over the year would be provided in its Annual Report, to be published in October.

All returns are quoted after costs, before NZ tax.

*MSCI All Country IMI.

Full June Performance Report

–]]>

Keith Rankin’s Chart for this Week: Inflation-Corrected Hourly Wages

By Keith Rankin -

September 16, 2015

Analysis by Keith Rankin.

[caption id="attachment_7171" align="aligncenter" width="987"] New Zealand Wage Stasis since 1990s.[/caption]

This week’s chart shows that New Zealand ordinary-time hourly wage rates, as measured by the Labour Cost Index (LCI), have been static since this index was created in the early 1990s. While the LCI is presented by Statistics New Zealand in index number form (like the Consumers Price Index; CPI) I have substituted the latest hourly wage (as published in the Quarterly Employment Survey), and have deflated the LCI numbers by the CPI in order to present ‘real wages’.

The chart tells us that hourly wages are no higher in 2015 than they were in 1993. In that time Real GDP per person of working age – the average slice of New Zealand’s ‘economic cake’ – has increased by 38 percent. Yet, since 1993, the only way that wage and salary earners could increase their income was to work longer hours. Even more disturbing, in the time that we had a Labour-led (workers’) government – 2000 to 2008 – wage rates fell. It was only in the late 1990s and post-2011, under MMP National-led governments, that the chart shows any sign of increasing wages.

Last week I noted that, if this process of wages only just keeping up with inflation had applied for the whole period from 1926, women’s average weekly wages today would be $190 per week. If we apply that to both genders, we would be looking at an average wage today of about $300 for a forty hour week, or $7.50 per hour. Fortunately, and thanks mainly to significant real wage increases in the 1940s and 1970s, our average hourly wage today is $29 rather than $7.50. It should be much higher, given the productivity changes that have occurred.

Further, we note that the biggest increase in income inequality in New Zealand took place between 1985 and 1995. Jane Kelsey in The Fire Economy (p.87) shows it more specifically as 1988 to 1993. While nobody denies that inequality of financial wealth continued unabated after 1993, my chart for this week confirms that wage rates have been static for two decades despite average incomes (GDP per person) rising over 35 percent.

How can we square these apparently contradictory statistics? In part by noting that relatively more income generated in New Zealand is appropriated by non-residents with interests in New Zealand. In part the discrepancy is due to New Zealanders of working age (over 15) working significantly longer hours on average; much of this will be longer hours worked by mothers, tertiary students and persons over 65. And in part, the discrepancy is due to property income accruing to the richest five percent in forms that are not easily captured in our income statistics.

Finally, I will note that the $29 hourly rate is almost certainly an overstatement of the true average hourly rate in New Zealand in 2015. This figure comes from the Quarterly Employment Survey, which is heavily biased towards regular tenured fulltime employment, and does not at all reflect the reality of remuneration for hours committed to casual labour contracts.

Inequality is an increasing problem in New Zealand. Otherwise, average hourly real wages in New Zealand in 2015 would have risen from $29 to about $40 in the years since 1993.

—

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Public interest journalism – a new non-profit beginning for Scoop

By Selwyn Manning -

September 16, 2015

Pacific Media Centre A message from the New Scoop Team On December 19, 2014, the Scoop Team set out on a project called “Operation Chrysalis”. We decided to turn Scoop’s 16-year-old online news publishing business into a new kind of news business, one connected directly to its readers, owned by a not-for-profit and based on a new business model. Tomorrow, September 16, 10 months later, it will be day one of New Scoop. Scoop’s operating company will be transferred into a charitable trust dedicated to promoting public interest Journalism called the Scoop Foundation for Public Interest Journalism. The New Scoop publishing company will shortly adopt a new constitution which will add further protections around editorial integrity. We have launched a website and public campaign to announce the fruits of our work at takebackthenews.nz . All our readers, and indeed all New Zealanders, are invited to participate in the future of the Scoop project. With the use of an infographic this document sets out how the New Scoop structure is designed and intended to work. New Scoop explained in an Infographic. To help explain how New Scoop will work — and how interested people and organisations can become involved if they are interested — Scoop’s designer Scott Broadley has drawn us an infographic that sets out the key relationships which lie behind the new not-for-profit structure. Pacific Scoop is an Auckland-based educational partner of Scoop published by the Pacific Media Centre. More information –]]>

Keith Rankin on The Economy of Services

By Keith Rankin -

September 15, 2015

Analysis by Keith Rankin. This article was also published on Scoop.co.nz.

I wrote last week about how just about everyone – even economists who should know better – regard the economy as a production system. We imagine a whole bunch of goods that are produced and then, through their sale, turned into money. Thus, in this view, the economy is all about making stuff in order to make money. The more stuff we make the better. And the more people work (both more people and more work), then the more stuff, then the more money. Further, if we can increase the amount of stuff made per unit of work effort (productivity), then we can make even more stuff and therefore even more money.

The obvious critiques lies around whether we really can (or indeed want to) buy so much stuff; and that many resources used to make as much stuff as we can now will be depleted for future making-of-stuff. The make-as-much-stuff-as-quick-as-we-can ethos represents both waste and intergenerational theft. Picking the low-hanging fruit as fast as we can today is not conducive to making high amounts of stuff tomorrow.

As all economists know in their heart-of-hearts, ‘the economy’ is a welfare system; a balance between ‘goods’ and ‘bads’, between benefits and costs. Labour (work) is the principal human cost, so, like all costs, should be minimised not maximised. While we say that economic benefits are ‘goods and services’ (and indeed both goods and services are sold for money), the final ‘consumable’ benefits of ‘the economy’ are entirely services.

So food (which we buy) give three types of service: calories for energy, nutrients for health, and flavour for pleasure. Computers give us services directly – eg computation, word-processing and filing – and give us access to other services, via the internet. Goods are valued for the services they confer upon us. We get other services directly from the market, such as theatre performances. And we also get environmental services from nature. Thus conserved forests gives us many services (eg habitat, hydration, anti-erosion, shade), just as harvested trees (as construction materials) may give us shelter (a service) and (as paper) literacy services.

Clothing gives us multiple services: warmth, modesty, protection, identity and vanity. One very rich person might spend 100 times as much on clothes as another person, but only draw say twice as much service in total from their clothes. In that case, the value of clothing services per dollar spent on clothes would be fifty times higher for the poorer person than for the rich person. Thus the economic welfare arising from the poorer person’s clothing will be much greater than that arising from the richer person’s clothing. For every dollar of cost incurred in making those poorer person’s clothes, the benefit (in clothing services) is fifty times greater.

When economic benefits are properly understood as services, it becomes very clear that, in any highly unequal society, reduced inequality in itself dramatically increases the amount of services enjoyed, and hence the economic welfare of the society. Clothing that remains in the wardrobe gives minimal service. Service output is more dependent on the use we make of what we buy than it is on the amount of dollars we spend on our purchases.

Does that mean that perfect equality gives the maximum welfare? No. Some people should enjoy more services than others.

Some people sacrifice more; they work harder, or do more unpleasant work, or do more difficult work, or do work with greater consequences if it is not done well. They deserve to enjoy more services. Others may have a greater capacity for constructive happiness, for example through literacy and higher education. A ‘cultured’ person will generally have more capacity than others to benefit from cultural services. A person trained in ‘kapa haka’ – for example – will have more capacity to benefit from related cultural services than a person not so trained. So an equal distribution of services will not mean a maximisation of welfare.

Inequality confers other benefits. People with higher incomes are best placed to try out new services first, when those services are expensive. Inequality creates markets for new services which, if any good, may become services eventually accessible to most people. Whether we are referring to cycling, driving, or making calls from ‘brick’ cellular phones, the rich enjoyed them first. If they had not done so, they would not have got cheaper and better. They would not have become mass consumption activities if the rich hadn’t purchased the means to these services first.

Marginal utility diminishes, however. Some rich people may have 10 cars, but don’t get to spend much time in any of them. The extra enjoyment gained by the tenth car is quite small. Thus, already sated with pleasure from the services available to them, people of comfortable means may defer extra consumption. Instead they save now with the intention of buying more service-conferring goods later. Or they insure against future loss of service, through precautionary saving. These people tend to die with thousands or millions of dollars of unspent purchasing capacity. Others must enjoy today the services these savers have foregone, albeit as debt. It is appropriate that debtors, who gain more services earlier, should incur more costs (such as work) later.

Happiness (utility) includes some risk-taking, meeting challenges; enjoyment is not all comfort and pleasure. An economy that maximises welfare must always ensure ample opportunities for accessing adventuring services.

Some people – rich or poor – may gain pleasure from the unhappiness of others; for example, they may enjoy prime real estate knowing that they have excluded others from that land. This is happiness arising from positional services. The improved position of one person – with a good solicitor or tax accountant – is countered by the worsening position of one or more others. When one person gets ahead, another gets behind. While possibilities for upwards social mobility (success?) are undoubtedly economic benefits, they also depend on downwards social mobility (failure?). So a welfare‑maximising society must have the capacity for providing compensating services for the downwardly mobile, and for those who do not achieve their aspirations. Downward-mobility is a prerequisite for upwards social mobility.

The economy is a welfare system. Welfare represents – at a societal level (indeed at a global societal level in a globalised society) – a balance between service benefits and expended resources. Both benefits and costs will be incurred unequally. However, if inequality extends beyond its modest optimal level, then welfare losses become very great. Rich people cannot gain anything like the amount of service benefit per dollar spent than can people on modest incomes.

And we might note that a dollar borrowed typically generates much more added service utility to the borrower than the loss of utility incurred by the lender. While debt spending substantially ameliorates present inequalities, massive indebtedness coexisting with massive inequality is a second-best solution.

An optimal welfare economy – an economy of equity, service and conservation – is characterised by modest inequality, and hence relatively low levels of offsetting financial behaviour.

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NewsRoom Digest: Top NZ News Items for September 15, 2015

By Selwyn Manning -

September 15, 2015

This edition of NewsRoom_Digest features 10 resourceful links of the day and the politics pulse from Tuesday 15th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include China’s biggest meat processing company Shanghai Maling Aquarius investing $261 million for joint control of New Zealand’s Silver Fern Farms, the Federation of Family Budgeting Services says people are doing a better job of paying off their debts according to and recommendations in the Productivity Commission’s final report on improving outcomes from social services to “make greater use of devolution in the social services system”.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: Prime Minister congratulates Malcolm Turnbull; Market Diversification key in BGA Exports Programme; New Zealand to open Embassy in Colombia; Businesses support schools’ Managed Network; Prison initiative contributes to rheumatic fever prevention; Youth addiction services access improves; Ministers welcome Productivity Commission report on social services; Productivity Commission report supports Whānau Ora; Paper addresses loss grouping tax issues; Minister congratulates NZAS on 25th anniversary of Kakapo Recovery partnership; Community providers boost social housing; Hawke’s Bay chooses its local democracy

ACT Party: Everybody take a deep breath

Greens: Government needs to act on workplace domestic violence response; New information shows Corrections withdrew fines issued to SERCO; Treasury- Climate uncertainty hurting business

Labour: Information important, but raw data not robust; Labour To Table New Flag Referendum Bill; Silver Fern Farms sale result of Govt inaction; Government doubles down on underfunding social services; Govt must come clean on secret HNZ dividend; South Island threatened with recession; No end in sight for EQC customers with dodgy repairs; English finally admits unemployment fall ‘unlikely’; Maori Party’s Land Law Slammed By Judges

New Zealand First: PM called to account on future of Silver Fern Farms; Playing politics with the flag; PM Quick To Subsidise Foreign Firms But Not Kiwi Ones; National and Peter Dunne block battle of Britain motion; English turned down meeting request with silver fern farms; More Kiwi troops likely for Iraq

NZ National Party: Local MP encourages earthquake preparedness

LINKS OF THE DAY

BUSINESS GROWTH AGENDA : Strengthening key market relationships and diversifying into new markets is a major theme for the update of the Export Markets workstream of the Business Growth Agenda released by Economic Development Minister Steven Joyce and Trade Minister Tim Groser. Copies of the report are available at:http://www.mbie.govt.nz/info-services/business/business-growth-agenda/towards-2025

FAMILY BUDGETING REPORT: Data in a new report released by the The Federation of Family Budgeting Services suggests people are doing a better job of paying off their debts. The report is available at :http://www.familybudgeting.org.nz/figures-show-budgeting-is-needed-as-much-as-ever/

FESTIVAL OF PACIFIC ARTS 2016: Around 100 Māori and New Zealand-based Pasifika artists will represent Aotearoa alongside 26 other Pacific nations at the 12th Festival of Pacific Arts in Guam next May and June – considered the premier arts and culture event for the Pacific region. More details on the festival are available at:https://www.festpac.visitguam.com/

FEWER FARM SALES: Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 20 fewer farm sales (-4.9%) for the three months ended August 2015 than for the three months ended August 2014. More information is available at:https://www.reinz.co.nz/reinz/index.cfm?1CC3D519-18FE-7E88-4249-4CE523B4D44B&obj_uuid=17B6DD46-7005-41D5-A488-32B912B83CE3

HOSPITALITY NEW ZEALAND CONFERENCE: Shane Green, host of the American reality television show Resort Rescue, is to be the keynote speaker at the Hospitality New Zealand annual conference being held in Nelson on 6, 7 and 8 October. More information is available at : http://www.hospitalitynz.org.nz/Events/Future.html andhttp://www.hospitalitynz.org.nz/Events/Hospitality_Showcase.html

LOCAL AUTHORITIES STATISTICS: The latest data on the performance of core non-trading activities of local authorities is now available. Read more:http://www.stats.govt.nz/browse_for_stats/government_finance/local_government/LocalAuthorityStatistics_HOTPJun15qtr.aspx

NZ UNIVERSITIES WORLD’S TOP 3%: All New Zealand’s universities remain among the top 3% in the world according to the 2015 QS international rankings released yesterday. The list of rankings are available at :http://www.topuniversities.com/university-rankings/world-university-rankings/2015#sorting=rank+region=+country=+faculty=+stars=false+search=

PM’S TEXT MESSAGE REPORT: Chief Archivist Marilyn Little today released the report of her review into the Prime Minister’s recordkeeping practices in regard to text messages. A full copy of the report is available here:http://www.archives.govt.nz/advice/public-records-act-2005/managing-text-messages-under-public-records-act-2005

PRODUCTIVITY COMMISSION REPORT: The Productivity Commission recommends setting up a separate system to deal with those who have the most complex needs. Every year, the country spends $34 billion on social services, more than 10 percent of GDP. Click here for the full report: http://www.productivity.govt.nz/inquiry-content/2032?stage=4

REPORT ON 2014/15 BASE MILK PRICE: The Commerce Commission today released its final report on Fonterra’s base milk price calculation for the 2014/15 dairy season. The Commission’s final report on the base milk price and related information can be found here: http://www.comcom.govt.nz/regulated-industries/dairy-industry/review-of-fonterra-s-farm-gate-milk-price-and-manual/statutory-review-of-milk-price-calculation-2/review-of-milk-price-calculation-201415-season/

And that’s our sampling of “news you can use” for Tuesday 15th September.

Brought to EveningReport by Newsroom Digest. –]]>

NZ’s Agricultural Productivity Report Card: Could Try Harder

By Selwyn Manning -

September 15, 2015

NewsroomPlus.com Contributed by Motu The agricultural sector produces over 40% of total merchandise exports. Do dairy and sheep/beef farms contribute to New Zealand’s improving level of productivity? A study by researchers at Motu Economic and Public Policy Research – a not-for-profit, non-partisan research institute – found that the vast majority of the differences between farms were because of differences in their capital, labour, expenditure, and land, rather than due to any particular gains in productivity. New Zealand has had a long period of poor productivity performance. Research from the Productivity Commission in 2014 showed that while kiwi incomes should be 20 percent above the OECD average, they are instead 20 percent below. “There are two elements to our research that may be controversial, as we looked at increases in output for firms that increased stock rates and used nitrogen-rich fertilisers,” said Dr Adam Jaffe, Motu Director and a researcher on the paper. Higher stock rates are associated with higher output, with sheep/beef firms that increased their stock rates by 10 percent increasing their output by 1.2 percent (worth around $1,000 a year on average) compared to the dairy industry’s 0.5% increase in output. However, because dairy firms are larger and have higher average stock rates than sheep/beef, the increase in average annual income is considerably greater for dairy firms, being worth on average$1,800 a year. “There is a lot of discussion around environmental damage to waterways from dairy farming, particularly those firms who apply nitrogen-rich fertilisers. Our study shows there is still a massive benefit to a dairy farmer who applies effluent, as they will have around 6.5 percent greater output. On average we found an increase of $500 in output for every additional 13 kg of effluent applied per hectare,” said Dr Jaffe. Sheep/beef firms are more likely to apply non-lime based fertilisers, and less likely to use lime-based fertilisers and effluent than dairy firms. “Interestingly, the sheep/beef firms who applied fertilisers recorded a 2 percent lower mean output. This is possibly because fertilizers are only applied in response to adverse conditions,” said Dr Jaffe. “Between 2002 and 2008, the level of productivity in the dairy industry increased more rapidly than that of sheep/beef. This has since reversed, following a 35 percent drop in dairy’s productivity in 2009. Although some improvement has since been recorded, average productivity in the dairy industry remain lower than in the past,” said Dr Jaffe. “If you’re a dairy farmer, our research shows that there’s not a financial gain to be made from doing non-dairy activity like forestry. However, sheep/beef farms get quite a lot of benefit – if you also have a few dairy cattle your average output goes up by around 4.5 percent, but you’ll be even better off if you harvest forest, which will increase your output by 6 percent, or around $5,200 a year,” said Dr Jaffe. On average, dairy firms produce greater output, but also use higher inputs. Sheep/Beef farms vary more in their level of output and have a higher proportion of firms operating at a below industry average level. Dairy firms are more homogenous. Output density across firms “There were large differences in the productivity recorded across regional councils. We weren’t able to assess whether these arise from differences between the regions themselves because of things like preferable climate or being closer to port, or were due to differences between the firms and their management skills and access to capital,” said Dr Jaffe. Long-term Regional Difference in Multifactor Productivity The above graph takes Northland as a base and ranks the regions from lowest to highest productivity. The paper includes 83,964 yearly observations from 31,920 agricultural firms. 73% of the observations are from the sheep/beef industry. The proportion of sheep/beef observations fell between 2002 and 2012, with output falling at a faster rate, resulting in dairy firms accounting for over half of the 2012 output, but for only a third of all firms. The working paper “Agricultural productivity in New Zealand: First estimates from the Longitudinal Business Database” by Motu researchers Eyal Apatov, Richard Fabling, Adam Jaffe, Michele Morris, & Matt Thirkettle, was funded by the Kelliher Charitable Trust and the Productivity Hub under the Longitudinal Business Database Productivity Partnership programme. –]]>

American migrant sailor boosts Tongan America’s Cup challenge dream

By Selwyn Manning -

September 14, 2015

Pacific Media Centre The world’s oldest and wealthiest race has an unlikely challenger, an ancient Tongan kalia. An American sailor, resident in Tonga’s Vava’u islands, is convinced he has the fastest boat the world has never seen, reports Asia-Pacific Journalism. Pacific Scoop: Report – By Emma Jones Tonga’s best chance of proving its modern maritime prowess may come in an America’s Cup challenge being touted by an American immigrant to the country. Mark Belvedere, owner of Eueiki Eco Resort in the Vava’u Islands, claims the Tongan kalia he is restoring is faster than any America’s Cup boat. “I have, what I consider, a boat that will blow away anything in the America’s Cup, anything you have in New Zealand.” Belvedere spent many years studying and teaching Pacific maritime history in Mexico before settling in Tonga. He is so confident of his boat’s abilities that he posted a challenge to the 34th America’s Cup with the support of the then Tongan Tourism Minister, Fineasi Funaki. Belvedere chose Tonga to live as he believes it was the sailing epicentre for migration of the Polynesian people centuries ago, and he had his heart set on beating the world under-sail speed record. “I looked for the ultimate platform to break the record, so I developed the same system that was utilised for thousands of years by the Polynesians. I found that throughout their history that they made these great sailing ships that all lean their rig to weather and have totally different load patterns than anybody is using in the world today, the world has a lot to learn by looking at their [Tongan] history of sailing.” Tongan kalia Belvedere believes today’s America’s Cup yacht designers are “over-engineering a dinosaur” with their current multi-hull boats and that the Tongan kalia is the prefect boat built for speed. “The boat that has them all beat; because it can be built the lightest with all the highest benefits, that is pitching, heeling, riding moments, power to weight to ratios, the things you want to make speed machines, is a Tongan kalia, which was developed by these people thousands of years ago.” While the late Fineasi Funaki threw his support behind Belvedere’s first America’s cup challenge in 2010, Tourism Tonga have reservations their beloved kalia is able to beat today’s America’s Cup boats. Tourism Tonga general manager Owen Pau’u, says he’s discussed this idea with Belvedere, but has doubts about the credibility of the claims. “I’m sure the America’s Cup fraternity have tapped into all the advanced technologies available to ensure their boat is the fastest on a yearly basis, whereas the ‘fastest Kalia’ was built and tested in 2004, so I am sure it is now way outdated.” With estimates at $40 million plus, Pau’u also acknowledges the cost of launching a bid at the Auld Mug is out of reach of the Tongan government. “Tonga does not have that amount of money at the moment to spend on the America’s Cup. Tonga has gained the right to host the South Pacific Games in 2019, however the government is still trying to find the funds for SPG 2019.” Design rules The biggest challenge for a Tongan entry in the 2017 cup will be the strict design rules that Larry Ellison has put in place, which Belvedere is adamant were done off the back of his challenge. “They know what I’ve got is super, super fast. I’m doing three times the wind speed without j-foils in a 26ft boat, you can’t beat that, nobody is doing those speeds.” He says he knows the challenge was taken seriously by Ellison and any changes put in place were done out of fear. “They didn’t want to entertain a one on one challenge with me so they put the design rule up instantly, as soon I laid my challenge. It would’ve changed the route of the control of the cup and $10 billion of tourism that it develops, so Ellison wants to control all that.” With Belvedere keeping the location of the kalia and his testing waters a closely guarded secret, his claims have come up against scepticism by some in the industry. Auckland yacht designer Brett Bakewell-White says the rules of the Americas Cup would prevent an entry with a Tongan-style vessel. “The current America’s Cup cycle is using a virtual one-design yacht with solid wing sails and hydrofoils – all teams are forced to use virtually identical yachts. Given that the current AC yachts literally fly above the water on hydrofoils, I would say that there is no chance that a conventional displacement vessel would be even close in speed.” Pacific Cup Belvedere says as a starting point he wants to enter in a Pacific yachting cup, and hopes that New Zealand will get on board, although previous attempts to speak with Emirates Team New Zealand have failed. “I went down to NZ to talk to Grant [Dalton] but it was in the phase with Barker leaving and the new guy coming in so it wasn’t a good time to talk.” He acknowledges the expense of launching a Pacific Cup, and had hopes he could piggyback on Team New Zealand’s funding. “Unfortunately you guys are totally sponsored by Emirates, and Emirates don’t fly here – although they were interested in our airport in Tonga, so the Royal family went to meet Emirates. It didn’t come together because with the timing of Fineasi dying took the wind of the sails.” Deed of Gift Funding issues and design rules aside, Belvedere is steadfast in his belief that Tonga should have a boat in the America’s Cup. “According to the Deed of Gift, the essence of the whole thing [the cup] is about the country, its people, its technology not a design a rule, not a class race. When you get into that it really has to do with an ancient sailing culture and its ability, so Tonga should be allowed.” “The oldest sailing country in the world should be able to go for the oldest trophy in the world.” Emma Jones is a student journalist on the Postgraduate Diploma in Journalism reporting on the Asia-Pacific journalism course at AUT University. –]]>

Malcolm Turnbull Challenges Tony Abbott For Leadership – Transcript of Doorstop Interview Canberra

By Selwyn Manning -

September 14, 2015

Turnbull and Abbott — Australia's Prime Minister Malcolm Turnbull ousts Tony Abbott from the top political job.

MIL OSI – Source: Malcolm Turnbull Australian Federal Member for Wentworth Transcript of Doorstop Interview Parliament House, Canberra. Subjects: Liberal Party Leadership MALCOLM TURNBULL:

Thank you very much. A little while ago I met with the Prime Minister and advised him that I would be challenging him for the leadership of the Liberal Party, and I asked him to arrange or facilitate a meeting of the Party Room to enable a leadership ballot to be held. Of course I’ve also resigned as Communications Minister.

Now this is not a decision that anyone could take lightly. I have consulted with many, many colleagues; many Australians; many of our supporters, in every walk of life. And this course of action has been urged on me by many people over a long period of time. It is clear enough that the Government is not successful in providing the economic leadership that we need. It is not the fault of individual ministers, ultimately the Prime Minister has not been capable of providing the economic leadership our nation needs; he has not been capable of providing the economic confidence that business needs.

Now we are living, as Australians, in the most exciting time. The big economic changes that we’re living through here and around the world offer enormous challenges and enormous opportunities, and we need a different style of leadership. We need a style of leadership that explains those challenges and opportunities; explains the challenges and how to seize the opportunities. A style of leadership that respects the peoples’ intelligence, that explains these complex issues, and then sets out the course of action we believe we should take, and makes a case for it. We need advocacy, not slogans. We need to respect the intelligence of the Australian people.

Now if we continue with Mr Abbott as Prime Minister, it is clear enough what will happen. He will cease to be Prime Minister and he will be succeeded by Mr Shorten. You only have to see the catastrophically reckless approach of Mr Shorten to the China-Australia Free Trade Agreement. Surely one of the most important foundations of our prosperity to know that he is utterly unfit to be Prime Minister of this country and yet so he will be if we do not make a change.

The one thing that is clear about our current situation is the trajectory. We have lost 30 Newspolls in a row. It is clear that the people have made up their mind about Mr Abbott’s leadership. Now, what we also need to remember, and this is a critical thing, is that our Party, the Liberal Party, has the right values. We have a hugely talented team here in the Parliament. Our values of free enterprise, of individual initiative, of freedom, this is what you need to be a successful, agile economy in 2015.

What we have not succeeded in doing is translating those values into the policies and the ideas that will excite the Australian people and encourage them to believe and understand that we have a vision for their future. We also need a new style of leadership in the way we deal with others, whether it is our fellow Members of Parliament, whether it is the Australian people. We need to restore traditional Cabinet Government. There must be an end to policy on the run and captain’s calls. We need to be truly consultative with colleagues, Members of Parliament, Senators and the wider public. We need an open Government. And open Government that recognises that there is an enormous sum of wisdom both within our colleagues in this building and of course further afield.

But above all we have to remember we have a great example of good Cabinet Government, John Howard’s Government most of us served in. And yet few would say that the Cabinet Government of Mr Abbott bears any similarity to the style of Mr Howard. So that’s what we need to go back to.

Finally, let me say something about Canning. Now this is an important by-election and I recognise dealing with this issue in the week before the by-election is far from ideal. But regrettably there are few occasions that are entirely ideal for tough calls and tough decisions like this. The alternative, if we were to wait, and this issue, these problems were to roll on and on and on is we will get no clear air. The fact is we are maybe 10 months, 11 months away from the next election. Every month lost is a month of lost opportunities.

We have to make a change for our country’s sake, for the Government’s sake, for the Party’s sake. From a practical point of view, a change of leadership would improve our prospects in Canning, although I’m very confident that with the outstanding candidate we have, that we will be successful.

Now — please. You will understand that I now have to go and speak to my colleagues. I trust I’ve explained the reasons why I am standing for the leadership of the Liberal Party, motivated by a commitment to serve the Australian people to ensure that our Liberal values continue to be translated into good Government, sound policies, economic confidence creating the jobs and the prosperity of the future.

Remember this: The only way, the only way, we can ensure that we remain a high wage, generous social welfare net, first-world society is if we have outstanding economic leadership, if we have strong business confidence. That is what we, in the Liberal Party, are bound to deliver and it is what I am committed to deliver if the Party Room gives me their support as leader of the Party. Thank you very much.

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NewsRoom Digest: Top NZ News Items for September 14, 2015

By Selwyn Manning -

September 14, 2015

This edition of NewsRoom_Digest features 10 resourceful links of the day and the politics pulse from Monday 14th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the Government being accused of expecting charities to do an increasing amount of the core work its agencies should be doing, British farmers are calling for a review of New Zealand’s quota of lamb exports to Europe and the latest poll of polls showing the National Party is once again comfortably ahead of a Labour-Green combination.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: Whitebait, birds receive conservation boost; Employment outcomes to be published; Funding for offender addiction treatment; Funding round starts for new forest planting; Constitution confirms rural fire responsibilities

ACT Party: Free Thoughts – The Flag Referendum and Red Peak

Labour: Chathams a plane ride too far; Investigation needed for search and rescue shortcuts; How much more evidence do you need Minister?

Māori Party: Continuing the hīkoi forty years on

NZ National Party: New awards to recognise outstanding contribution of Hutt Valley Youth

LINKS OF THE DAY

AUCKLAND’S ‘HOT SPOTS’: Barfoot & Thompson has released a sizzling list of the 20 hottest spots in the Auckland property market over the last 18 months, providing valuable insights for buyers and sellers. Read more at:http://www.barfoot.co.nz/news/2015/september/auckland-hot-spots

CLNZ EDUCATION AWARDS: Teacher’s Choice voting for the CLNZ Education Awards went live today and teachers from across New Zealand are now able to have their say on the best educational resources of 2015. Teachers can cast their votes here: https://www.surveymonkey.com/r/Teacherschoice

DAIRYNZ’S 2015 ELECTIONS: Ten farmers have put their hands up for three seats on DairyNZ’s Board of Directors – voting for which opened at 12noon today (Monday, September 14). View candidate profiles and the Q&A at:http://www.dairynz.co.nz/about-us/how-we-operate/dairynz-elections/

INTERNATIONAL CELLO FEST 2016: World-leading cellists and cello teachers will congregate in Hamilton next year for a week-long international cello festival hosted by the University of Waikato. To keep up to date with International Cello Fest 2016, including the latest programme information, visit: http://www.waikato.ac.nz/go/cellofest.

NZASB EXPOSURE DRAFT: The New Zealand Accounting Standards Board (NZASB) has released an Exposure Draft for public comment, proposing amendments that, in certain circumstances, would allow charities not to recognise donated goods at the date of acquisition. Information on the Exposure Draft is available here:http://www.xrb.govt.nz/Site/Accounting_Standards/Exposure_Drafts/Dom_ED_2015-3.aspx

NZIER FORECASTS: The latest NZIER Consensus Forecasts shows a further downward revision in growth expectations amongst forecasters since the June survey. Annual average economic growth is expected to track below 3% out to 2019. More details are available at : http://www.nzier.org.nz/publication/increased-uncertainty-over-growth-outlook-consensus-forecasts-september-2015

NZMSA SURVEY. New Zealand Medical Students’ Association (NZMSA) Medical Student Bullying Survey confirms that bullying and sexual harassment is widespread in our hospitals. The results are available at:

http://www.nzmsa.org.nz/final-results-for-nzmsa-medical-student-bullying-survey/

REAL NEEDS OF SUICIDAL NEW ZEALANDERS: The current Health Select Committee is investigating why people desire to end their lives and give feedback on the effectiveness of existing support services. More information is available at : http://www.tiny.cc/termsofreference

SOCIAL SERVICES REPORT: The New Zealand Productivity Commission will tomorrow release its final report into the delivery of social services. The draft report and information is available at:http://www.productivity.govt.nz/inquiry-content/2032?stage=3

ZERO HOUR CONTRACTS: The Amalgamated Workers Union, which represents farm workers, fears the Government’s zero hour contracts legislation could cost thousands of labourers their jobs. See a copy of the bill here:http://www.parliament.nz/en-nz/pb/sc/make-submission/51SCTIR_SCF_00DBHOH_BILL64668_1/employment-standards-legislation-bill

And that’s our sampling of “news you can use” for Monday 14th September.

Brought to EveningReport by Newsroom Digest. –]]>

Academic’s epic ocean row makes the Guiness Book of World Records

By Selwyn Manning -

September 14, 2015

NewsroomPlus.com Contributed by The University of Auckland Tara Remington’s epic 4000km row across the Pacific Ocean from Los Angeles to Waikiki last year has made the Guiness Book of World Records. Tara, 44, a professional teaching fellow at the University of Auckland’s Faculty of Education and Social Work, rowed across the Pacific Ocean from Long Beach, Los Angeles to Waikiki in Hawaii with American Paralympian Angela Madsen, 54. The pair left Los Angeles on 20 May 2014 in their 6m mono-hull rowboat the Spirit of Orlando and reached Hawaii on 21 July 2014. The journey took 60 days, five hours and five minutes to complete. It is listed in the book as the first team to row the mid-Pacific east to west. The 4000km odyssey raised money for New Zealand girl Charlotte Cleverley-Bisman. Charlotte lost her arms and legs to meningitis as a baby in 2004. Now a ten-year-old, she needs on-going assistance with prosthetic limbs as she grows. The news came as a huge surprise to Tara. She only found out last Friday night when a friend posted a picture of the book on facebook. “So on Sunday morning, after my son’s soccer game finished, we drove into the city to buy our own copy of the book. “I think for me, the most exciting part of being in the book is the permanence of something that still feels a bit surreal. “And the Guiness Book of World Records is one of my son’s favourite books to read.” Tara and Angela coped with the stress of the row by listening to Kiwi classics like Split Enz, The Topp Twins and Patea Maori Club. Tara even taught Angela the haka. They also enjoyed playful dolphins, and were impressed by a large white shark that swam up alongside their boat and rolled over to show them its belly. When they reached Waikiki, Tara ate a cheese pizza to celebrate after two months of living on two minute noodles. Never one to sit still for long, Tara is now planning to row the Yukon River Quest 2016 with former colleague Dr Airini. The 715-km (444-mile) wilderness adventure paddling race is held on the Yukon River from Whitehorse to Dawson City in Canada’s Yukon Territory. Tara, a Waiuku resident, first got involved with Charlotte’s charity through the Meningitis Trust in the 2007 Atlantic Rowing Race, and now her daughter Jade is Charlotte’s pen-pal. –]]>

Margaret Long: “A public servant in the very best sense of the word”

By Selwyn Manning -

September 14, 2015

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NewsroomPlus.com Earlier this year, Margaret Long (nee Brand), a life member of the PSA and relentless campaigner for equal pay passed away. Margaret, a Department of Statistics clerical worker, joined the PSA Women’s subcommittee in 1952 and became known to her rueful opponents as ‘Firebrand’ for her determination to achieve equal pay. Headlines opposing equal pay were commonplace. “Equal Pay for Women is Injustice for Men” ran in Wellington newspaper The Evening Post. In a case where a Dunedin woman was demoted in 1956, a National MP is quoted having said “She won’t mind, she is young, attractive and has a husband.” The PSA adopted the principle of equal pay in 1914 but made no progress until the 1950s. Women civil servants were regularly passed over for promotion and salary increases in favour of younger male staff with little or no experience. The Public Service Commission defended this practice by arguing that men were paid a ‘social wage’ that recognised their role as the family breadwinner. This attitude ignored the reality that growing numbers of women supported themselves financially, and often their families as well. THE MARGARET LONG MEMORIAL LECTURE On Friday night, 11 September, Labour Party leader Andrew Little delivered the Margaret Long Memorial Lecture at Otaki College Hall. The speech was given in memory of Margaret Long QSM and her commitment to social justice, equal pay and her work in the Otaki community. Here is the full text of that speech: Tēnā Koutou Katoa. Thank you all for the opportunity to speak this evening. It is an honour to speak today in memory of Margaret Long. Tonight, I want to talk about her life, the causes she fought for, the victories she won, and the work that she left for us to continue. I also want to talk about the way she fought for what she believed in, and the lessons we can take from that. Margaret Long was a public servant in the very best sense of the word. She spent her life in service to other people. Helping others. Teaching others. Campaigning for others. That was Margaret’s calling. From her work as a teacher, to her activism for pay equity, to her life membership of the PSA, to her years of service to local community groups here in Ōtaki, Margaret spent her life making other people’s lives better. Through her work, through her campaigning, she helped secure better treatment for millions of New Zealand women who came after her. The Government Service Equal Pay Act 1960, which abolished gender discrimination in the Public Service, was the result of the efforts of campaigners like Margaret. That piece of legislation was the first in New Zealand’s history to enshrine in law the principle that a woman doing the same job as a man deserved the same pay. Margaret was a fierce believer in equality. She wanted to see people get a fair reward for the effort they put in. She wanted to see women treated with the dignity they deserved. And when confronted with injustice and discrimination, she was tenacious in standing up to it, fighting it, and doing what she could to end it. This was a woman who knew injustice when she saw it, and she knew what to do to change it. There’s a well-known story about Margaret that I really like. It was 1955, and the chairman of the Public Service Commission was speaking at a Public Service Association conference. He had finished his speech and was taking questions from the floor. One of the PSA members spoke up and asked the chairman about the issue of equal pay. Why was it, they asked, that a man should be paid more for doing the same job as a woman? The chairman looked down from the stage and replied: “‘Why pay ten bob for an article you can get for five?’’ Margaret would use that remark to win over more supporters for her equal pay campaign. She held it up as an example of the sort of bigotry that was holding women in New Zealand back. She used it to bring new energy and supporters into her campaign. She didn’t just get mad, she got organised. And it worked. Over the course of Margaret’s life, the equal pay movement won real advancements for women in New Zealand. Not just the legislation in 1960 ending pay discrimination in the public service, but legislation in 1972 outlawing it in the private sector as well. But for all the advancements she and her fellow campaigners had been able to make, when Margaret died earlier this year, just 2 days short of her 88^th birthday, she died knowing there was so much work still to be done. Right now, according to the New Zealand Income Survey, the gender pay gap in New Zealand is almost 10%. On the mean weekly full time wage the gap is a full 18.4%. Margaret Long worked for many years in the Department of Statistics. She knew that numbers don’t lie. On equal pay, the numbers aren’t good. According to the World Economic Forum’s Annual Report, in just the last year alone, New Zealand has dropped from 7^th in the world to 13^th when it comes to closing the gap between men and women. A 9.9% gender pay gap means a woman would have to work an extra 28 days per year to keep up with her male counterpart’s salary. That’s like finishing the race, then saying to half the runners “you have to do another lap”. This pay gap persists even in Government departments. The Human Rights Commission’s 2012 Census of Women’s Participation, looked at the gender pay gap in Government departments. It showed that 21 agencies had a gender pay gap higher than the 14.3% average, with the highest being 42%. The state services (and local government) have the EEO clause in their legislation, so the state should be an exemplar employer, leading the way on policies and practice to implement equal pay. Under this Government, that isn’t happening. In professional industries, the gender pay gap is often just as wide. For example, a study of pay rates amongst chartered accountants showed the gap between men and women had widened this year to its highest level since 2010, with a man making on average over $45,000 more than a woman in a comparable role. The gender pay gap has a big impact on women later in life. According to ANZ, New Zealand women, on average, are likely to retire with around $60,000 less than men, based on current savings patterns. That kind of discrimination is not a part of our national character, so I believe as New Zealanders these numbers should give us real cause for concern. They show we aren’t living up to our ideals. We’re tolerating unfairness. The pay equity question goes deeper than just average hourly wages. According to MBIE, nearly half the women in our workforce are in industries that are more than 80% female. It’s not a surprise that these industries tend to have much lower incomes than those dominated by men. That’s why the vast majority of workers on the minimum wage are women. That’s part of why Labour believes we need to raise the minimum wage and extend parental leave to give women more support to stay in paid work while giving them more time to spend those precious early months focussed on their baby if that is what they choose to do. When Margaret Long started campaigning, the gender pay gap was kept alive by allowing men and women to do the same job for different pay. Today it survives by undervaluing the work that women do. This is an issue of pay equity, and remains a significant challenge. And it has serious flow on effects as well. Low pay among women is a key contributor to New Zealand’s shameful rates of child poverty, given the high percentage of children dependent on income generated by women. We will never fully address the gender pay gap – we will never finish Margaret’s work – unless we ensure there is no gender bias in the way we value the work that women do. Pay equity is the next fight we have to win. That is what is at issue in the ongoing Kristine Bartlett case. I want to acknowledge here the work of people like the Service and Food Worker’s Union, the PSA, NZNO, the Pay Equity Campaign and Kristine Bartlett herself. They are continuing Margaret’s fight today. The question which must be resolved this this: if a man and a woman do work of equal value, but in different roles – is it right for a man to be paid more than a woman? Because the grim reality that too many women in New Zealand have to face is that our society simply does not value the work they do as much as the work men do. This has been an area our current government has been loathe to address. The government could have asked to appear in the Employment Court at the start of Kristine’s case. It didn’t and only made an appearance after the decision when it turned up at the Court of Appeal. We need to change the notion that the government doesn’t need to step up on this critical issue/ We need a government fully committed to equal pay for work of equal value. We also need to address New Zealand’s shocking shortage of women in senior leadership positions. Kiwis look at places like America, where there are more men named John running large companies than all women running large firms put together, and shake our heads. We don’t want to be that kind of country. But when the New Zealand Herald recently published a survey of the highest paid corporate executives in New Zealand, guess what happened? Not a single woman made the list. Not a single one. I want to be very clear today. The Government that I lead, the next Labour Government, will make closing the gender gap a priority. We will make sure that the work women do is valued, and that every woman has the same opportunities a man would. This matters to me. I’ve spent my working life making sure the labour market operates in a way that ensures people have secure jobs, decent work, and the opportunity to get ahead. I came into politics because I wanted to play my part in building economic opportunity for every New Zealander. In Labour, we believe that the best way for our country to get ahead is to make it easier for New Zealanders to get ahead, no matter their background. Opportunity for everyone leads to prosperity for everyone. We can’t get ahead as a country if we are leaving some of our most talented workers on the side-lines and holding them back from taking on leadership positions. When women miss out on the opportunity to make the most of themselves, we are all the poorer for it. Or as Helen Clark, someone who knows more than a little about the power of women’s leadership, put it: “All our societies are the poorer if they fail to tap the full potential of half their population.” It’s a simple question of inclusion. Which makes it a basic social democratic principle. That’s why the next Labour Government will take a lead on pay equity. We’ll start with urgently working on paying aged healthcare assistants and caregivers fairly, and work out a track to get to a position of pay equity as quickly as possible. We’d take the lead and work with all stakeholders on making pay equity in that sector a reality. And we would want to see the principles that inform pay equity available for all working women, and commit to proper enforcement mechanisms. The last Labour Government made progress on this in 2006 with the nurses MECA, providing the $500 million to registered nurses and caregivers in DHB hospitals to address the pay equity gap. That was the result of tireless campaigning by NZNO, a group that is a core part of today’s pay equity movement. The Labour Party has always been at the forefront of fighting for fairer treatment and a better future for women. We were the first party in New Zealand to write pay equity into our policy platform in 1927. In fact in 1990, Labour passed the Employment Equity Act. In 1990, you could say we were ahead of our time, if it weren’t for the fact that addressing this issue has taken too long already. That law, which set out a process for groups of people in female-dominated occupations to compare themselves to similar male-dominated occupations for the purpose of determining a fair pay rate, was the first piece of legislation to be repealed by the incoming National Government in 1991. And on the day it was repealed members of the National Council of Women came out of Parliament and joined the unionists and others protesting the tearing up of that short lived but powerful next step toward pay equity. That’s a legacy we carry with pride, and it’s a promise we will deliver on in Government. That’s the type of change that Margaret spent her life fighting for. But I think it’s worth stopping for a moment and examining how it was that Margaret and the pay equity movement won the changes they did. What Margaret Long understood was that change for the better doesn’t come from on high. It doesn’t just happen at the whim of our political leaders. Social change happens because ordinary men and women identify injustice, and come together to demand that it ends. In a democracy, change can’t happen overnight. A new idea can’t win acceptance right away. It requires everyday people to speak out, to find allies, to change minds, to win people over. To build a better country from the ground up, by building a constituency for change. That change can take years. But nothing of value comes easy. In the words of Gandhi: “First they ignore you, then they laugh at you, then they fight you, then you win.” Margaret Long was someone who knew that all too well. She knew that the key to change was persistence. There was a time, before the law changed, when the old boffins of the public service and her opponents in the media would give Margaret the scornful nickname of “Miss Firebrand.” She hated that name because she saw it for the sexist putdown that it was. But when they mocked her, Margaret kept going. What many people don’t know about the night the 1960 Government Service Equal Pay Act passed was that in the end, the vote was unanimous. When Margaret started her campaigning, equal pay was a radical idea, and the people advocating it were scoffed at. When it came before the house, not a single politician dared to vote against it, so large was the constituency for change. They ignored her, they laughed at her, she fought them, and she won. There’s a real lesson to be taken from her victory. For parties like Labour who believe in social justice, who want to see change for the better, the lesson is that we cannot make change on our own. The Labour Party sprung out of the labour movement. Out of the acknowledgement that one could not be successful without the other. Yes, we need political parties to enact changes to law, but that can’t be done without a real movement for change, just as popular movements need political power to effect legislative change. Today, nearly 3000 other carers have joined Kristine in her legal challenge . And now we see midwives and education support workers adding their voice to the cause. By campaigning, by changing minds, by bringing court cases, by exposing the statistics of inequality, by identifying injustice and bringing people together to end it, they are building that constituency for change. In a democracy, real change is only possible if we bring people with us. If we if do that, there is nothing we can’t change. People love to tell us that problems are too hard to solve. That things will never change. That the challenges we face are too big or too complex, better left to the experts or left alone all together. But Margaret’s life, the victories she won and the way she won them, proves those people wrong. She shows us that if there is an injustice we cannot stand, an unfairness we cannot tolerate, then we have the power to change it together. Margaret Long’s life and service were an inspiration. New Zealand’s public life, as well as the community in Ōtaki that she loved, are so much poorer for having lost her. But her legacy lives on. The fight for equal pay continues. The fight for fair treatment of workers, for economic opportunity for everyone, continues. When we look to Margaret’s example, we know that together, with persistence, commitment and courage, we can win that fight. We can end injustice, banish discrimination and build a New Zealand where everyone can live up to their potential. Thank you. ___________________________________ Margaret Long obituaries: –]]>

Mobile eye clinic changes lives for thousands of Fijians

By Selwyn Manning -

September 13, 2015

Pacific Media Centre The World Health Organisation says three-quarters of all blindness can be prevented or treated, with the Pacific Islands having one of the highest rates of avoidable blindness in the globe. Asia-Pacific Journalism reports on the Fred Hollows Foundation’s new mobile eye clinic in Fiji. Pacific Scoop: Report – By Emma Jones An 11.5 metre container on wheels, about the same size as a Kiwi holiday caravan, has already changed the lives of more than 3000 Fijians – and it has only been working four months. Earlier this year the Fred Hollows Foundation shipped its mobile eye clinic to Fiji. With it being the first of its kind in the world, it was an ambitious and risky venture for the charity. The goal of the clinic is to provide eye assessments and surgery to people in outlying villages who, due to financial or supportive constraints, are unable to make the journey to Suva for treatment. Executive director Andrew Bell says the foundation purposely embarked on a quiet roll out for the clinic so any kinks could be cleared up and to be sure the project would work. “We spent a long time researching for the clinic and while we were pretty confident it would work, you always worry you’ve overlooked something, particularly culturally,” he says. Bell says that for the initial roll out they chose three villages that are within an hour from Suva, so they were close to the capital if they needed any support. Demand outstrips capacity “We didn’t advertise so that we didn’t over-promise before we were sure we could deliver, but right from the first day we were flat out with patients – we hoped that would happen, we were pretty certain was going to happen, and now we’ve got proof it’s happening.” Bell says hearing about long queues of people at the clinic every day is music to his ears. “We’re at a point now where we can say ‘this thing is working and it’s fabulous’.” The biggest benefit of having the mobile eye clinic is that it doesn’t take up already stretched local hospital resources, the container is self-contained and it can stay on site for four – six weeks at a time. The container is able to carry out up to 10 surgeries a day, with the clinic currently averaging 30 per week, on top of that are the diabetes patients who require laser surgery. The first locals tend to know about the clinic is when the colourful truck pulls into the village, and then it’s up to the bush-telegraph to spread the word, which is how patient Aminasi, found out. “I was working in the area when I heard from villagers that the mobile eye clinic was doing free eye checks.” Cataracts cause Bell says the main cause of blindness is cataracts: “It happens to everybody and comes with age, but malnutrition and diabetes speed it up.” “In NZ every person is entitled to one cataract surgery under public health, and because of our access to world class medical eye care these are treated much sooner, when you are still able to see functionally. However in the Pacific, because of the lack of access to medical care, the level of blindness we are seeing is extreme – as in completely blind.” Bell talks of cataract patient Serafena Underwood who prior surgery was unable to see the nurse’s hand waving right in front of her face, but now she says she can see her grandchildren for the first time and look into her husband’s eyes. “The best feedback we get from patients is that finally they can go to the toilet themselves unaided – they just want that basic human dignity of going to the bathroom alone, and that’s now been restored by giving their sight back to them.” Mahmood, a 51-year-old local was spoken to in the queue for the clinic, “I hope to get my eye fixed so I can return to work as a taxi driver.” Similar is truck driver Kinivuai, who relies on his sight for employment, “I was very happy to have my eye operated on.” Big rewards Lead opthamologist on the Mobile Clinic, Dr Harris Ansari, says it’s the smiles, gratitude and prayers that are the biggest rewards. “One of my patients was brought in by two people for his cataract surgery. When he returned one week after the surgery he drove to the clinic by himself, the feelings are overwhelming.” Dr Ansari says even though the clinic is mobile and free, the quality of care is not compromised in any way, and is similar to those delivered in a developed country. “The clinic is equipped with all the state of the art pieces of equipment; it also serves as a training ground for nurses in training from other Pacific Island countries.” The future The demand for eyecare services is great throughout the Pacific, but with such high demand in Fiji, Andrew Bell says he can’t see them moving on anytime soon. “In terms of other Pacific countries, the long term plan is to have a mobile clinic in those, as long as their roads and transport can move it – but what we really need is another clinic.” “We are constantly innovating, one idea in discussion is a smaller, lighter clinic that can be lifted and dropped into area with poor access, for example Kiribati – it would then be able to be moved with the rising seawaters when needed.” However additional clinics are only possible through donations which is a constant battle for the foundation who have only been able to attract one corporate sponsor, Specsavers. “The Pacific Islands are part of our wider community so we need to be looking after them as well as own, but getting a regular stream of funds is hard to achieve.” “Donors are very much needed, for $25 a month you can restore someone’s sight.” Donate to Fred Hollows Foundation Emma Jones is a student journalist on the Postgraduate Diploma in Journalism reporting on the Asia-Pacific journalism course at AUT University. –]]>

NewsRoom Digest: Top NZ News Items for September 11, 2015

By Selwyn Manning -

September 11, 2015

This edition of NewsRoom_Digest features 4 resourceful links of the day and the politics pulse from Friday 11th September.

NEWSROOM_MONITOR

Top stories in the current news cycle include the Waitangi Tribunal finding that Tuhoronuku, the Ngapuhi authority negotiating a settlement for the country’s largest iwi is not fit for the job, an Education Review Office report that shows the principal and two teachers at a disgraced private school in Auckland are not fully registered as teachers, and news that former Green co-leader Russel Norman is to resign from Parliament to head Greenpeace New Zealand.

POLITICS PULSE

Media releases issued from Parliament by political parties today included:

Government: Minister welcomes scholarship to mark land march anniversary; Property rules strengthened by Taxation Bill; Kiwis’ health suffers as Government spin machine goes into overdrive; New funding supports sustainable Pacific fisheries; PGP delivering much needed support to rural communities; NZ Trade Commissioner to PNG announced

Greens: Auditor General shows Minister for Primary Industries was wrong to make swamp kauri assurances; Govt asleep at the wheel in ‘dangerous territory’; Green Party Congratulates Russel Norman On Greenpeace Appointment; Government ignoring lessons of East Timor when it comes to West Papua

Labour:Departure of Tim Barnett as General Secretary; Small agency clocks up big travel bill; Ngapuhi mandate needs refresh; Royal Commission needed into dodgy repairs; Bill English is Finance Minister not financial advisor

New Zealand First:Customs workers locked into zero-hour contracts; National fails on Southland Rural Broadband; Nga Puhi Faces Big Push To Sort Representation

LINKS OF THE DAY

BEE AWARE MONTH: September is Bee Aware Month. The National Beekeepers Association has collected details here: http://www.nba.org.nz/beeawaremonth/ and there is a very information Facebook page here:https://www.facebook.com/Bee-Aware-Month-155550234605563/timeline/

GYNAECOLOGICAL CANCER AWARENESS: Every day as many as three New Zealand women are diagnosed with gynaecological cancer and one woman dies. Read more here: http://www.nzgcf.org.nz

NGĀPUHI MANDATE INQUIRY REPORT: The Waitangi Tribunal released the Ngāpuhi Mandate Inquiry Report today recommending that the Crown delay any further negotiations with Tuhoronuku to give Ngāpuhi the time and space needed to address the flaws the Tribunal has identified. The report is available at:http://www.justice.govt.nz/tribunals/waitangi-tribunal/news/ngapuhi-mandate-inquiry-pre-publication-report-released

NZ FOOD PRICES UP 0.4%: In the year to August 2015, food prices increased 0.4 percent, Statistics New Zealand said today. This follows an increase of 1.2 percent in the year to July. More information is available at:http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/FoodPriceIndex_HOTPAug15.aspx

And that’s our sampling of “news you can use” for Friday 11th September.

Brought to EveningReport by Newsroom Digest. –]]>

‘We won’t be intimidated’ over West Papua at Forum, says Sogavare

By Selwyn Manning -

September 11, 2015

Pacific Media Centre Pacific Scoop: Makereta Komai in Port Moresby Solomon Islands will not be intimidated by Indonesia or other countries in the Pacific Islands Forum in its push for West Papua. Prime Minister Manasseh Sogavare is willing to take it to the next level, to demand global action through its membership of the United Nations in New York. Speaking to journalists, Sogavare said he was in Port Moresby this week with three proposals – to push for observer status, agree to a high level fact finding mission and have West Papua listed in the United Nations Committee Decolonisation Committee, known as the Committee of 24. To demonstrate the gravity of his government’s commitment, Sogavare included his Special Envoy on West Papua, Matthew Wale and the leader of the United Liberation Movement for West Papua, Octavanius Mote in his delegation to Port Moresby this week. “It’s not a new issue, it’s one that has been with us even before some of us became an independent nation. We have admitted them to Melanesia Spearhead Group (MSG) as observers and we hoped that we could accord them the same to be observers at the Pacific Islands Forum. “Indonesia’s Vice-Minister for Foreign Affairs, Abdurrahman Mohamed Fachir, did not mince his words when he said that “the issue of Papua was irrelevant” to the Forum Leaders discussion here in Port Moresby. “I think this is not the right forum to discuss West Papua for a number of reasons. We are here discussing important economic development, co-operation, how to address climate change, maritime, fisheries and ICT connectivity for the Pacific. Human rights abuses “I’d like to remind the Pacific Forum Leaders that Indonesia is a democracy and we have the most detailed provision on human rights in our Constitution. We even have a national commission that investigates human rights abuses. Fachir said his country strongly believed in the international principle of non-interference in the national affairs of other countries. “It is now up to the Forum Leaders to discuss Papua and we believe in their wisdom,” said Minister Fachir. Sogavare disagrees with the suggestion by Indonesia that West Papua is “irrelevant” to the agenda of the Pacific Islands Forum. “Bringing West Papua to the agenda of the Pacific Islands Forum is within the framework of the Leaders meeting. We are not going outside that mandate,” said Sogavare. He fully acknowledges Indonesia’s sovereignty over West Papua but questions that sovereignty if the people’s human rights are abused and violated. “By virtue of our membership of the UN we recognise the sovereignty of Indonesia over West Papua. But the same United Nations recognises the rights of people for self-determination and violation against human rights. “The strong stance taken by the Sogavare government has also tested its relationship with Jakarta. Forum framework “They’ve expressed disappointment and we’ve explained to them that our action is well within the framework of the Pacific Islands Forum and the Melanesian Spearhead Group (MSG).“We are in active consultation with Indonesia. “That’s a very interesting diplomatic term. They don’t have to agree to our position but we just consult them and explain to them that this is the right thing for us to do, and we will move ahead,” said Sogavare. He said Solomon Islands appreciated Papua New Guinea’s position because it shared a common border with Indonesia. “It’s a sovereign decision that PNG will have to make that best represents the interests of its people. That we will respect. “However, these are issues that go beyond sovereignty like human rights. If a member of the UN is committing human rights violations against its own people, it is no longer the issue that is domestic to that country but one that must be addressed by the United Nations,” said the Solomon Islands leader. Fiji’s Foreign Affairs Minister, Ratu Inoke Kubuabola, reiterated his country’s respect for Jakarta’s territorial integrity and sovereignty over West Papua. “We see West Papua as part of Indonesia and as far as human rights are concerned, Fiji will raise its voice here at the Forum and all also at the United Nations. “When we opened our mission in Jakarta in 2012, during bilateral meeting with former President, Susilo Bambang Yudhoyono, our Prime Minister raised human rights issues in West Papua. I have personally raised it with my former counterpart, Marty Natelegawa and the current foreign affairs minister, Retno Marsudi. “If there any human rights violations reported, Fiji will raise it with Indonesia and raise its voice at the United Nations. “We take it up with Indonesia ourselves, when we hear it we raise it directly with Jakarta because of the good bilateral relations we enjoy with Indonesia,” said Ratu Inoke. Civil society organisations active in the push for West Papua’s inclusion on the Forum agenda, maintain that it is the moral obligation of Pacific Leaders to find just resolution to the human rights abuses that have claimed more than 500,000 lives. Source: Pacnews/Pacific Media Watch 9423 –]]>

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