Pay boost for NZ Defence Forces
Defence Minister Mark Burton announced a significant increase in pay and allowances for many of our Defence Force personnel. The increases adjustments are recognition of the fact that the greatest assets of the New Zealand Defence Force are its people.
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Pay and allowance increases targeted at lower paid ranks and identified technical trades with recruitment and retention problems. Over 80 percent of uniformed defence force personnel will receive increases from 1 May 2001. The average increase is 5 percent and individual increases range from 1 to 19 percent.
A major part of the pay adjustment is a move towards a flat rate for the military factor. (The military factor is a payment in addition to base pay that recognises the unique liabilities of military service, such as service discipline, compulsory postings, on call 24 hours, etc). The military factor will now be a minimum of $4508 pa, rather than a percentage of base pay. Consequently, lower paid ranks benefit the most from this change. The most junior ranks such as Privates, Aircraftsman and Able Seamen will receive increases of between 6 and 13 percent.
After years of decline, this is a significant step towards bringing pay rates into line with comparable occupations in the private sector. The junior ranks of our army, navy and airforce have demonstrated time and time again their professionalism and commitment, and they deserve this recognition.
CEP negotiations with Hong Kong to kick off
Prime Minister Helen Clark announced that New Zealand and the Hong Kong Special Administrative Region had agreed to commence negotiations on a closer economic partnership agreement. A key objective of the CEP is to lift the bilateral trade to a new level of engagement. It is expected to boost two-way trade in goods and services and to increase bilateral investment. Our decision today to launch negotiations will send an important signal about our commitment to boosting trade opportunities and to promoting the Apec goal of free and open trade and investment in the Apec region.
We have discussed with Hong Kong our government's concern to ensure that any final agreement properly addresses issues relating to rules of origin. The agreement should also be consistent with movement towards our environmental goals. Encouraging trade in ways which enhances sustainability - environmentally, socially and economically - is important for New Zealand and we look forward to progressing this agreement in that light.
In New Zealand talks will now start with both industry and union representatives to ensure the upcoming negotiations take proper account of their interests. The New Zealand government has also been discussing with Hong Kong issues relating to labour standards, and expect talks to progress on this issue over the next few months.
Inflation down
The March CPI result was below market expectations and is consistent with inflation returning back to within the 0 to 3 percent target range later this year, Finance Minister Michael Cullen announed on Thursday. The CPI fell 0.2 percent over the quarter, taking the annual rate to 3.1 percent. Much of the credit for containing the inflationary pressures in the economy should go to the ordinary New Zealander. Clearly businesses are absorbing some of the price pressures created by the low dollar, and workers are being responsible in their approach to wage negotiations.
Government policies also had an important impact. The biggest single contribution to the drop in the CPI came from the restoration of income related rents for low income state housing tenants. Statistics New Zealand calculates this led to a 9.7 percent fall across all dwelling rentals. Also, the usual upward pressure on the index at this time of year from tertiary fees failed to materialise due to the Government's fee stabilisation policy. The other big contributors to the drop were: lower petrol prices and international air fares.
Changes to immigration provisions target skills shortages
The Government will introduce special provisions to immigration rules, allowing industry groups to employ skilled workers from overseas, Immigration Minister Lianne Dalziel and Economic Development Minister Jim Anderton have announced.
The special arrangements for IT workers from overseas will effectively be extended to other occupations where a case has been presented by an occupational or industry group.
One issue that keeps coming up in economic and regional development is the skills shortage in key industry areas such as forestry. These provisions will go some way to addressing these concerns.
Industry groups will be able to approach the Minister of Immigration to seek exceptions to permanent or temporary immigration policy in cases where industries or sectors were experiencing skill shortages.
The Government's decision on this matter is a direct response to the Auckland Business Forum in October 2000.
Te Mana back to Solomons
The Government has approved the return to Solomon Islands next week of the Navy's frigate HMNZS Te Mana. Te Mana will return to the Solomons for nearly three weeks as part of New Zealand's ongoing support to the Solomon Islands peace process. New Zealand accepts that it has special obligations to our Pacific neighbours to assist in maintaining peace and in the Solomons we are working closely with Australia. Both the Te Mana and HMNZS Te Kaha were deployed to Solomon Islands last year and Te Kaha was used as a platform for peace talks.
Te Mana sails from Auckland on Sunday, April 22, and will relieve the Royal Australian Navy's ship HMAS Manoora on Friday April 27. Te Mana will maintain a naval presence in the region until May 14 after which it will return to New Zealand.
