Founded by Max Farndale 1947 - 2018
Enough is enough, review of overseas banks overdueFriday 12 August 2016 - The Big Four Aussie banks are on track for another year of bumper profits at New Zealand’s expense, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.
Chinese control of our meat industryFriday 12 August 2016 - New Zealand First says Silver Fern Farms’ shareholders will regret selling majority control of their co-op to the Chinese but expects the Overseas Investment Office will greenlight it at breakneck speed.
NZ first bringing light on true extent of foreign ownershipThursday 11 august 2016 - New Zealand will no longer be in the dark over how much New Zealand land and housing is in foreign hands thanks to a new bill from New Zealand First.
Enough is enough, review of overseas banks overdue
Friday 12 August 2016 - The Big Four Aussie banks are on track for another year of bumper profits at New Zealand’s expense, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.
“In the financial year just ended they are likely to be taking out over $4 billion after tax in profits and dividends from the NZ economy. This on-going drain is a major contributor to New Zealand’s persistent balance of payments deficit.
“Over 90% of the banking sector in New Zealand is foreign owned, largely by the big four Australian owned banks (ANZ, BNZ, Westpac and ASB). The National government has done nothing to reduce New Zealand’s reliance on foreign-owned banks in its time in government.
“The Key Government has totally ignored the extent of foreign ownership of the New Zealand banking sector and the massive penalty this imposes on the economy. The Aussie owned banks are money-making machines – at New Zealand’s expense.
“This has allowed the enormous drain on our economy that this creates to go on unchecked. We have come to expect nothing else from a negligent and self-serving government that always puts the interests of foreign corporates ahead of the New Zealand national interest.
“Enough is enough!
“New Zealand First is calling for an independent review of the role of the overseas owned banks in New Zealand with the aim of identifying:
· the full costs of foreign ownership and its consequences· policies for expanding the NZ owned banking sector.
Background
“The dominant role of the four Aussie owned banks in the NZ banking system is a dubious distinction that is not shared by other OECD countries.
“If there has been one clear winner from New Zealand’s property boom it has been the Aussie owned banks. The big four Aussie-owned banks have been a prime beneficiary of the property boom- and their profits show it. They are now making combined profits after tax of over $4 billion annually – a massive drain on the economy to benefit overseas owned companies. (The four big Australian-owned banks made a combined profit of about $4.5 billion in the 2015 financial year.)
“Foreign ownership creates a massive hole in the hull of the New Zealand economy. The outflow of profits and dividends to the big Aussie owned banks is the single biggest drain in the balance of payments deficit.
“The Aussie banks are a central player in the property boom – having fed and profited handsomely from it. The boom has stoked a housing bubble in Auckland and that escalation is now spreading to other regions. Outside of Auckland 5 other regions are now hitting all time high for median house prices. Total mortgage lending in New Zealand has now reached $228 billion.
“In Australia the banking sector is facing serious and growing criticism. There are now widespread calls in Australia for a Royal Commission into the banking sector. Inevitably, a Royal Commission would be a prolonged and costly process. For that reason, NZ First is calling for a more narrowly focused and urgent review over, say, a six months timeframe conducted by a qualified panel of three experts.
Focus of the Review
“The Aussie-owned banks have a stranglehold over the NZ banking sector. The core of the review would be on how to redress the gross imbalance in the banking system by building a much bigger NZ-owned banking sector.
“The review would consider what is blocking a much bigger role for the NZ owned banking sector – and how that can best beaddressed.
“Among other issues to be covered by the review will be:
Competition
“How much actual competition does the domination of the NZ banking sector by the Aussie banks provide?
“For example, while the interest paid on bank deposits is at an historic low, interest rates on credit cards remain at rapacious rates. Currently ANZ has a Visa Credit Card interest rate of 20.95% per annum on purchases (22.95% p.a. on cash advances). What is really behind these exorbitant levels?“New Zealand First says the big credit card companies have been ripping off Kiwi consumers and businesses through excessive credit card interchange fees about which the government is doing nothing. An investigation of credit card interchange fees is overdue.
Taxation“The review would provide a systematic assessment of existing tax arrangements applying to foreign owned banks and their borrowing practices.
“One area that would get long overdue serious scrutiny would be the Approved Issuer Levy tax (AIL) regime.
“When New Zealanders lend money to banks they are subject to withholding tax on any interest they earn. When the banks borrow overseas from non-residents then the Approved Issuer Levy (AIL) system provides an alternative to Non-resident Withholding Tax (NRWT).
“As a non-resident of New Zealand for tax purposes a person may apply to the IRD and elect to have AIL applied to the interest they receive. This will generally mean they will pay a levy of 2% rather than NRWT of 10% or 15%.
“The Approved Issuer Levy is not small change; it applies to hundreds of millions of dollars of bank borrowing.
Government Banking Services
“In 2015, following a tender process, the government confirmed that Westpac would continue to have the lucrative contract it has had since 1989 to provide the bulk of the government’s banking services. However, there is no inherent reason why NZ cannot provide for a much larger proportion of its banking sector – as it once did. Since its inception, KiwiBank has been a success. Kiwis can run a big bank. The time has come to have a plan and set some targets for New Zealand ownership of the banking sector.
Not a Regulatory Review
“The review New Zealand First proposes is not intended to replace the existing regulatory role of the Reserve Bank. For that reason it will not cover the prudential, security or resilience capacity of the banking system that the Reserve Bank monitors.
“A special IMF Review is due to report early in 2017 and that review will focus on resilience and the ability of NZ financial system to withstand shocks.
Summary
“New Zealand First believes New Zealand needs a strong, competitive and profitable banking sector – but to the greatest possible extent the banking sector should be in New Zealand, not foreign ownership.
“The purpose of government is not just to enrich foreign corporates. New Zealand First says the government’s inaction on the dominance of overseas-owned banks in the New Zealand banking system is a total abdication of responsibility.
“For our government to be just sitting on its hands while profits pour out of the country to foreign-owned banks is just not good enough.
“New Zealand has been a cash cow feeding the profits of Aussie-owned banks for far too long.
“It’s time to stand up for New Zealand’s economic sovereignty!
“Action to protect New Zealand’s national interests in the banking sector is imperative and the first step is a comprehensive review of the role of overseas-owned banks as New Zealand First proposes,” says Mr Peters.
Chinese control of our meat industry
Friday 12 August 2016 - New Zealand First says Silver Fern Farms’ shareholders will regret selling majority control of their co-op to the Chinese but expects the Overseas Investment Office will greenlight it at breakneck speed.
“Today was the owners of Silver Fern Farms last chance to preserve one of New Zealand’s great assets for present and future farmers,” Mr Peters says.
“Last year, the suits and directors at Silver Fern Farms (SFF) said the co-op was in crisis and faced receivership or liquidation. They now say last year was a good year, so this 180 degree about-turn condemns them out of their own mouths.
“Then again the directors, the very people who got the co-op into this mess, carved out a $7m slush fund for themselves - the purpose of which shareholders both didn’t know and more pointedly, didn’t want to know about.
“Only so much can be done for an industry which is voluntarily following infant formula into foreign control. I guess it proves ‘you can take a horse to water but you cannot make it think’.
“As parts of the added value operation start to close around the country and plans are hatched to shift value-add processing abroad, large sections of provincial New Zealand will see that they were simply sold down the drain.
“Typically, not one member of the National Party caucus had the guts to raise a finger in protest. Then again most of them wouldn’t know a cow from a bull.
“If the Chinese do complete this deal, it will mean a majority of New Zealand’s red meat industry will be in foreign hands. Most of ANZCO is Japanese, while foreigners have big stakes in Blue Sky, United Beef Packers and Lean Meats.
“That doesn’t count the debacle that was Chinese-owned Prime Range Meats. It really does not bode well for the remaining Kiwi owned processors because foreigners will control the price on the hook in New Zealand. They’ll make up the difference in value-add offshore and those offshore profits will not be going to New Zealand farmers.
“It is bizarre shareholders would do this given all the heavying of Zespri and Fonterra in retaliation for complaints over Chinese steel being dumped here. Chinese control will also cause massive problems in a highly sensitive and lucrative United States beef market.
“How is it that foreigners can see value in what we produce, but the producers and this government can’t? Meat progressively joins forestry and increasingly dairying to condemn farmers as price takers at the bottom of the heap.
“As for the stock transportation arrangements established within SFF without any proper disclosure to shareholders, it will become a matter for the Serious Fraud Office,” says Mr Peters.
NZ first bringing light on true extent of foreign ownership
Thursday 11 August 2016 - New Zealand will no longer be in the dark over how much New Zealand land and housing is in foreign hands thanks to a new bill from New Zealand First.
“Foreign ownership of New Zealand properties, businesses and houses poses major risks to our economy and sovereignty and today’s drawing of the Land Transfer (Foreign Ownership of Land Register) Amendment Bill in Parliament is the first step to address them,” says New Zealand First Leader and MP for Northland Rt Hon Winston Peters.
“It is well past time for New Zealand to have a comprehensive database on the extent of foreign ownership of land and property.
“Currently, government has no plan to stop the offshore takeover of New Zealand’s most strategic asset, the rural sector – New Zealand First does.
“Our Bill will ensure a comprehensive register of all foreign-owned New Zealand land is compiled and made available to the general public and policy makers.
“The register will apply to all dealings in ‘land’ as that term is defined in section 2 of the Land Transfer Act 1952 and will provide transparency for concerned New Zealanders.
“With the huge increase of foreign ownership and flood of immigrants into New Zealand, New Zealand First believes this bill is urgently needed,” says Mr Peters.
“After all, what government interested in defending the rights of New Zealanders would want to continue on in blissful ignorance of who owns land and houses in this country.”
Last week’s debate around skill shortages, particularly in Auckland, showed there are some measures we could implement immediately and other things we could do to ease the tension between the skill requirements of business and the gaps immigrants can fill says Michael Barnett, head of the Auckland Chamber of Commerce.
The review of Immigration NZ’s approach to recruitment should start by looking at how they target shortages in each region. “It is not enough to just rely on a nationwide skills shortage list.”
Immigration NZ’s immediate and long term skills shortages lists must be able to respond rapidly to changes in our economy and we need them broken down by region as they have been for the Christchurch rebuild. “The lists need to be developed strategically and with speed.”
In other points for review Mr Barnett suggested:
“I note that Otago Polytechnic already do this, and it seems to work”.
Not wanted on EU voyage.
Europe’ most virulent outbreak of tribalism is nowadays evident in Scotland’s determination to quit the United Kingdom and team up with the EU. The problem is that the EU has no intention of participating in this particular version of the Highland Fling.
Scotland’s main economic dowry of whisky is now almost entirely owned outside Scotland. It’s two banks, the Bank of Scotland and the Royal Bank of Scotland are bankrupt and nationalised and controlled from London, writes our European correspondent.
Its oil and oil services industry is badly depleted. That leaves salmon. Here Scotland indeed holds a global trade asset. Its commercial fish farming has added to instead of depleting its tourist value.
Then there is of course tourism itself and here again Scotland possesses a unique asset in that its hospitality is far more competitive and generous than anything south of the border.
The reason that the EU is not courting Scotland is that Scotland is regarded as a potential Greece whose insoluble finances have been mercifully camouflaged by the near-hysterical Project Fear attendant upon Brexit and the subsequent panic-attack entirely generated within London and its elites.
Scotland’s romantic attachment to near-Europe began in Elizabethan times with a focus on France.
It is here one might imagine that Scots in the years since the UK joined the EU might have accomplished something that proved too much for their English neighbours. Namely, to learn French.In the event Scotland put its educational thrust behind reviving Gaelic which is now pronounced as in “garlic.”
So instead of immersion courses concentrating on a living language one encounters in the Western Isles especially eccentric communes devoted to re-instilling a long-forgotten language. At least French president Francois Hollande has stalled in giving the green light to France’s 75 nascent languages.
The failure of Scotland to institute its own engine block–grade production engineering industry began to make itself obvious in the middle of the last century and this concern intensified as Asian ship builders took over from the Clyde.
As recently as 20 years ago there was a strong hope that Silicon Glen would become a fixture in the IT sector. In the event and through lack of scale it too became submerged, as did Finland’s and Canada’s.
All this is not apparent to anyone passing through Scotland. To the question of how exactly Scotland will make its way in the world as a country in its own right one receives the breezy reply that whisky and salmon will do the trick.
The country which provided the New World with its doctors, engineers, and educationalists has become Europe’s current version of such vintage, yet currently quiescent, nationalistic trouble spots as Catalonia, the Balkans, and the Basque region
Form the MSCNewsWire reporters' desk Monday 15 August 2016
Four years ago inventor Brett Cottle followed his girlfriend from Auckland to Westport. Since then, working out of the Epic technology hub set up by the well known Dellaca family in a former Postie Plus warehouse in Westport, he has designed an affordable home handyman's desktop-sized computer numerical control machine, a device that cuts wood, plastics and aluminium.
He and business partner Brook Matheson, co-founded Vertigo Technologies, under which they are marketing their GEM_XYZ a desktop sized CNC machine.
According to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for July was 55.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Although this was 1.8 points lower than June, it still represented healthy growth. The sector remains solidly in expansion in almost all months since October 2012.
BusinessNZ's executive director for manufacturing Catherine Beard said that while both production and new orders came back slightly from strong activity levels, employment has been a slow and steady burner in terms of activity.
Today’s Special Resolution will determine if our largest meat exporter remains in Kiwi hands and it is vital to ask hard questions of Silver Fern Farms’ board and management, says New Zealand First.
“Today’s Special Resolution is the last chance farmers have to keep control before they learn the hard way what being Chinese controlled feels like,” says New Zealand First Leader and Northland MP Rt Hon Winston Peters.
“If the spin SFF bigwigs put into last October’s ordinary resolution result is anything to go by, we can expect more of the same this afternoon.
“It must be remembered that today’s vote is a Special Resolution and this sets a much higher bar than the ordinary resolution they’ve failed to get away with. To pass, three-quarters of all shareholders carrying voting rights must support this resolution; not just those who vote.
“Going back to last October’s ordinary resolution, even then, only 55.219m shares out of a possible 100.379m shares voted to sell. That’s not the 82% figure spun by SFF’s shiny suits, but a bare majority of 55%.
“So with today’s vote and before writing up their stories, the media especially need to ask:1. How many “shares carrying voting rights” were eligible to vote?2. What was the outcome on a “shares carrying voting rights” basis?3. Did the resolution gain approval from at least 75% of all shares carrying voting rights?4. Demand to see the so-called legal opinion that Silver Fern Farms says gives it the right to ignore both the Companies Act and its own constitution over this major transaction.5. Copies of legal opinions backing the view of Management and the Board that selling 50% of a co-op with gross assets of some $627m is not a major transaction as defined by either statute or case law.
“Before the vote is held we must point to what the Companies Office wrote in a letter to me dated 6 May: “Our initial view is that while the allegations in your letter relate to non-compliance with the [Companies] Act, they are matters for which shareholders or other entitled persons have civil remedies they can pursue”.
“How the board and management of SFF react to today’s Special Resolution may trigger just that eventuality. This is not over, not by a long chalk,” says Mr Peters.
The Reserve Bank is deferring the start of the proposed changes to investor loan-to-value restrictions (LVRs) nationwide from 1 September to 1 October 2016, based on feedback from the banking industry from its recent consultation on the proposals.
Deputy Governor, Grant Spencer, said: “Banks have indicated through their submissions that more time is required to enable them to meet the new restrictions that apply to investor loans nationwide, given the pipeline of loan pre-approvals made prior to our announcement in July.
“We understand that banks have been applying the new LVR restrictions to new loan applications since the LVR changes were announced. On that basis we will defer the formal introduction of the changes to 1 October in order to accommodate the backlog of pre-approvals.”
Mr Spencer noted there had been a number of queries related to exemptions. He clarified that the range of existing exemptions to LVR restrictions will continue to apply under the proposed changes. These exemptions permit the banks to make high LVR loans that would otherwise be limited by the restrictions. Exemptions apply where:
· Owner-occupiers or investors are constructing or purchasing a new dwelling (provided the loan commitment occurs prior to, or at an early stage of, construction of the dwelling).
· Owner-occupiers or investors require bridging finance to complete the purchase of a residential property on a date prior to the completion of a sale of another property.
· Owner-occupiers or investors are re-financing an existing high LVR loan, or shifting an existing high LVR loan from one property to another (provided the total value of the new loan does not increase).
· Owner-occupiers or investors are borrowing to fund extensive repairs or remediation that is not routine or deferred maintenance. This includes events such as a fire, natural disaster, weather tightness issues or seismic strengthening).
· A loan is made under Housing New Zealand’s Mortgage Insurance Scheme, including the Welcome Home Loans scheme.
· Borrowers with owner occupied and investor collateral can use the combined collateral exemption to obtain finance up to 60% of the value of the investment properties and 80% on their owner occupied property.
“It is important to emphasise that these exemptions are permissive but do not create an obligation on the banks to make such loans. The banks will still apply their own lending criteria to individual borrowers and may choose to not provide finance in these circumstances or to provide it only at lower LVRs.
“The consultation process closed on 10 August and we are continuing to analyse submissions. Further adjustments to the proposals, including the exemptions, are still possible and we expect to publish a final policy position later this month,” Mr Spencer said.
Under the proposed new restrictions:
· No more than 5 percent of bank lending to residential property investors across New Zealand would be permitted with an LVR of greater than 60 percent (i.e. a deposit of less than 40 percent).
· No more than 10 percent of lending to owner-occupiers across New Zealand would be permitted with an LVR of greater than 80 percent (i.e. a deposit of less than 20 percent).
· Loans that are exempt from the existing LVR restrictions, including loans to construct new dwellings, would continue to be exempt.
Cathay Pacific has special fares on sale until 19 September including return Premium Economy class to London from $4,429.Business class fares are available from $6,689 for a return trip to Zurich and return business class fares to Rome are available from $6,649.These fares are available for departure from now until 30 November 2016 and 15 January to 31 March 2017.Cathay Pacific also has a last minute one way deal to Frankfurt from $999 economy class for departures between now and 15 November 2016, on sale until 31 August. All fares include taxes and fly via Hong Kong.
TravelInc
Science and Innovation Minister Steven Joyce has today announced that AgResearch and Massey University will jointly build New Zealand’s largest agri-food research centre in the Food HQ Precinct on the Massey University campus in Palmerston North.
As part of AgResearch’s Future Footprint Programme, AgResearch and Massey University are investing $39 million in the Food Science Research Centre and the design for the new buildings is well underway.
“The research conducted at the Centre will span the agriculture sector from farm to consumer, with a focus on dairy and red meat research,” Mr Joyce says.
“The Centre will also support education – training under-graduate and post-graduate students to support the future of the food industry.’
The development and leveraging of Food HQ is a key initiative of Accelerate 25, the Manawatu-Whanganui Regional Economic Action Plan.
The Food Science Research Centre will be housed alongside the Massey University Institute of Food Science and Technology, the Riddet Institute, and the Massey Food Pilot. Construction is expected to be complete by the end of 2018.
The Government will also provide $100,000 to help FoodHQ attract international research and development and connect directly to multi-national companies; and FoodHQ partners have committed, in principle, to match the Government’s contribution.
“The investment will fund a new business development manager, who will support FoodHQ to accelerate growth and create a more compelling value proposition for global R&D firms,” Mr Joyce says.
“The business manager will focus on market development and lead a strategy refresh that will ensure FoodHQ is able to capitalise on lessons learnt since its inception in 2013.
“Food innovation is one of the Manawatū-Whanganui region’s key strengths, and there are significant opportunities for growth and job creation in further lifting innovation across the region and producing more commodity and value-added products.
The Manawatū-Whanganui Economic Action Plan has been developed by the region with central government support. It forms part of the Government’s Regional Growth Programme.
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242
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