Beehive Bulletin January 2001
A weekly update on Government announcements and activities

 

ISSUED 26 JANUARY 2001

CONTENTS

NZ-Japan air services deal
Transport Minister Mark Gosche and Tourism Minister Mark Burton say New Zealand's economy is set for a multi-million dollar boost following an arrangement reached between Japan and New Zealand allowing greater access for each other's airlines. Announcing the deal this week, they said deal could be worth around $150 million a year to New Zealand as a result of an expected increase in Japanese tourists. The deal allows Air New Zealand to have two more B767 services a week to Tokyo, bringing the total to seven a week from mid-2002. If demand permits it also allows larger B747 aircraft to fly into Japan's other major international airport, Osaka, on two services a week currently operated by smaller B767s. The agreement means that Air New Zealand should be able to increase its New Zealand-Japan seat capacity by nearly 20 per cent.

DHB services streamlined
Health Minister Annette King has announced that HealthShare Ltd, a subsidiary company of five of the new district health boards - Waikato, Lakeland, Pacific, Taranaki and Tairawhiti - will provide regional service planning, purchasing and contracting functions for the five boards. The setting up of the company from 1 February would streamline the administrative functions of the five DHBs. Annette King said the decision illustrates the sort of co-operative work that has been going on between the Ministry of Health and boards leading up to, and following the passing of, the New Zealand Public Health and Disability Act in December.

Business confidence boost
Finance Minister Michael Cullen this week welcomed the latest NZIER survey showing a strong bounce-back in business confidence. Michael Cullen says the survey is in line with other surveys and points to good economic growth this year. The turnaround is dramatic - from net 45 per cent negative to net 31 per cent positive in just three months. Dr Cullen says the survey demonstrates just how volatile business sentiment is in New Zealand, but the g was doing what it could to sustain and protect the current high levels of optimism. This included moves to actively increase investment in R&D, lower business compliance costs, encourage better use of e-commerce, expand the skills base of the workforce and open new export markets.

Cabinet responds to dairy deal
Agriculture Minister Jim Sutton says a lot more work needs to be done before the government can endorse the proposed merger of New Zealand's two largest dairy companies and the Dairy Board. The Cabinet considered the proposed merger this week at its first meeting for 2001. Mr Sutton says the industry is asking the government to override New Zealand's competition laws and clear the way for a monopoly in the country's most important processing industry. He says the government will think long and hard about the issue, as there are good reasons why governments legislate against monopolies. The minister said a working party of diary executives and government officials will look at the plan. While cautious, the government was not prepared to rule out a merger.

Settlement for Jan and Murray Willis
A $550,000 settlement has been reached between the Inland Revenue Department and Auckland couple Jan and Murray Willis over their long running dispute with IRD, Revenue Minister Michael Cullen said this week. He said he was pleased a satisfactory agreement acceptable to both parties had been reached through the mediation process. Inland Revenue Commissioner John Perham recognised that the department did not perform as well as it should do. Dr Cullen said the settlement recognises the reality of all of the complex issues raised by the Willises with the Finance and Expenditure Committee, and is a full and final settlement of all those issues.

Latest enterprise awards announced
A worm breeding co-operative, a cable car manufacturer and a footwear designer are among winners in the latest round of Industry New Zealand Enterprise Awards announced this week by Associate Commerce Minister Laila Harré. She said the awards fit snugly with the government's commitment to job creation. Laila Harre said small and medium enterprises are a critical part of our economic framework. More than 40 per cent of all New Zealanders work in small and medium enterprises, and 96 per cent of businesses in New Zealand employ 19 or less full time staff.

Immigration advisory group
Immigration Minister Lianne Dalziel has named a six-member immigration Ministerial Advisory Group and a four-member refugee sub-group. The ministerial advisory group has been set up to provide additional advice to the Minister on the community's views on immigration policy and practice. Members are William (Bill) Milnes, Dr Ashraf Choudhary, Parthasarathy Bhagavathula (Partha Sarathy), Samuelu Sefuiva, Patrick O'Connor, Trudie McNaughton and Karen Te-O-Kahurangi Grant. The government has also appointed Patrick O'Connor, Heval Hylan, Abbas Mohammed El-Shiekh and Zeinab Hussein on to the advisory group's refugee sub-group.

 


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