Letter No.91
1 December, 1998

16 November 1998

The APEC Summit in Kuala Lumpur is unable to get an agreement by members to specify the tariff reduction measures strongly supported by NZ Prime Minister Jenny Shipley and Foreign Minister Don McKinnon. A watered-down compromise allows member countries to sign up for tariff reductions at their own pace, and leaves the World Trade Organisation to solicit tariff reduction measures from non-APEC member nations.

17 November 1998

The four voluntary sector umbrella groups, who were told last week by Associate Minister of Social Services Nick Smith that they should merge, are now being told that if they merge they will be offered a total of $50,000 in funding support. Currently, the organisations collectively receive $168,000 from the Community Funding Agency. Bonnie Robinson, executive director of one of the groups, the NZ Council of Christian Social Services, says the four organisations can not possibly amalgamate before their funding ends in July next year, nor can they be expected to do the work they had been doing for less than one third the money.

The Reserve Bank of NZ eases the mix of wholesale interest rates and currency exchange rates. The bank action intends to stimulate the economy in the face of a sharp decline in economic activity and inflationary pressures. Bank governor Don Brash: "There has rarely been a time of greater uncertainty in the world economy, with some now suggesting that there is a realistic chance of a serious global recession." Brash expects the NZ economy to shrink by -1.5% in 1998.

The OECD's Economic Outlook further cuts their estimates of global economic growth. The report now expects between 1.7% and 2.2% growth over the next two years. The report also says that a further shock in Asia is quite possible if the Japanese do not quickly address their deteriorating banking system. The OECD is also proposing interest rate cuts by government banks, warning that failure to do this will see the world economy grind to a halt.

18 November 1998

With membership of student unions becoming voluntary this year, Waikato Polytechnic Student Association is the first student union to begin reducing the services it offers. The union announces it can no longer offer advocacy, student job search, class representation, secondhand book sales or the student handbook.

19 November 1998

Statistics NZ's quarterly figures show that while wages have increased over the last year, the number of people in paid employment dropped. The average weekly wage is now $425, up from $408 last year. 47.4% of the population is in paid employment, down from 48.7%.

Parliamentary social services committee refuses a petition to allow non-retirement age widows to go onto superannuation, rather than the dole. A single superannuatant currently receives $66 more than the single unemployment benefit. Joy McLauchlan, petition committee chairperson, says that from April through September 1997, 12% of women alone or widows beneficiaries requested and received a special benefit or special needs grant because the dole was not enough.

The Quality Public Education Coalition criticises the recent changes in the government's tertiary education policy and the student loan. Pip Abernathy of QPEC says the recent review of the student loan scheme did not address the real deficiencies in the scheme, including: charging interest in the period while students are not earning, charging above market interest rates, denying 70% of students allowances because of their parent's income ,and making those same 70% the only non-working job-seekers in the country ineligible for an unemployment benefit.

20 November 1998

Floating interest rates on home loans hit a 31-year low of 6.5% at all the major NZ trading banks.

Criticism grows concerning the use of prison labour to produce goods that are sold on the open market. The Corrections Department admits that some of the produce is exported, including herb seeds and strawberries, but qualifies this by saying these are not exported by the department but by companies to whom the department has sold the goods. NZ prison workers earn an average of $13 per week.

22 November 1998

The Historic Places Trust will be making staff redundant after the government announces it is cutting its budget by half. The trust has 75 staff and 50% of its income is applied to staff. The trust manages 56 properties held in trust for the nation, prepares conservation plans and helps the public with renovation inquiries.

The Labour Party's annual conference votes to extend the minimum annual leave allowed to workers from three to four weeks and employer funded paid parental leave from six to twelve weeks.

24 November 1998

Meat and Related Trades Workers' Union secretary Graham Cooke says the Australian Meatworkers' Union has contacted him about job vacancies in Australia for experienced workers. Cooke says he investigated the call to make sure these vacancies are not for strike breaking purposes and is satisfied the offer is genuine. Cooke points to the use of the Employment Contracts Act by North Island firms to run plants 24 hours a day, seven days a week has resulted in the current over-capacity and the ensuing job losses. He says that South Island meat industry workers still have similar working conditions as they did before the Employment Contracts Act.

An Auckland police recruitment campaign that started a month ago has 3,000 respondents to fill 200 positions.

25 November 1998

Statistics NZ releases its report regarding the figures used by the Social Welfare Department in the benefit fraud ad campaign earlier this year. The report says that while the statistics were sound, the interpretation of what constituted fraud made the claims in the ads confusing.

Victoria University's first foodbank opens. Foodbank co-ordinator Alice Revell says that of the 30 students who have used it, most lived off their student loans because they were ineligible for a student allowance or the emergency unemployment benefit because of their parents' income, but did not receive support from their parents.

26 November 1998

The rent reductions on state houses announced last month will, in many cases, be accompanied by a lowering of the accommodation supplement. Fraser Folster, a spokesperson for housing minister Murray McCully, acknowledges that WINZ will consider each case by case to see if the customer would still qualify for the same amount of accommodation supplement as they did before their rent cut. Housing lobby groups react angrily. Peter Hughes of the State Housing Action Coalition says the only winner is the government. Hughes: "What they are reducing off rents, they're taking back through reducing accommodation allowances. It's not really a rent reduction at all, is it?"

27 November 1998

Work and Income NZ's employee code of conduct requires that staff must reveal their political affiliations and inform their manager of their political activities. Associate Minister of Social Services Peter McCardle says the directive did not originate from his office. See fuller report in this issue.

28 November 1998

Minister of Education Wyatt Creech responds to the Quality Public Education Coalition's criticism of the recent revamp of the student loan scheme. Creech maintains that the scheme allows all students to take part in tertiary education. The new conditions make it easier for students to pay off their loans and that he and the Minister of Revenue are reviewing the way the interest rate is set.

A soup kitchen is started up in Murapara. David Thomas says that recent forestry lay-offs have put financial pressure on families. The kitchen will be offering breakfast two days a week with its priority being children.