Shonkey numbers, John

National leader John key continues to make dishonest and misleading claims about law & order issues, Police and Justice Minister Annette King said today.

“If John Key cannot be trusted to tell the truth about their law & order policy, what can he be trusted to be truthful about?”

Mr Key, speaking at the Police Association annual conference today, repeated his claim that National would put 600 extra police on the street by 2011.

“What he doesn’t say is that 380 of these are already coming, under Labour’s recruitment campaign, and will be trained by June next year.

“What National is actually promising is an extra 220 police, and that’s 75 a year, or six extra per year per police district. That’s a miserable increase, compared to the 2500 extra police, almost 300 a year, that Labour has recruited in the past nine years.

“The biggest hoax is that National’s promised funding for the extra 220 police is only about half the money that will be needed if these extra police are to be equipped properly.”

Ms King said that Mr Key has also continued to tout his insulting victim compensation scheme, a scheme that amounts to about $50 per victim.

“It is a cruel hoax on victims. Labour believes that any scheme that is set up has got to offer victims real compensation, not just token payments. It’s why we have a major investigation into compensation taking place right now.”

Mr Key also repeated his assertion that violence has increased 47 percent since Labour came into office.

“He knows, but won’t admit it, that the main driver of the increased reporting of violence is family violence. Mr Key wants to frighten New Zealanders into believing that extra violence is happening on the streets. In that way he minimises what happens to New Zealand women and children who are the main victims of family violence.

“On one hand Mr Key pretends he’s on the side of victims. One the other, he turns a blind eye to what is happening in our homes, all over New Zealand.”

Ms King said almost all the issues that Mr Key raised in his speech today covered areas that Labour already has well in hand

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More 'promise and hope' policies from Clark

"Between smear campaigns, Helen Clark's announcements in this election are divided into two categories: 'the could've been' variety that she wanted to make, and the 'promise and hope' variety that she has announced but has no idea how to pay for."

National Party Leader John Key is commenting on Labour's latest spending announcement, which once again has no detail on how it will be paid for.

"Today she added to the 'promise and hope' column by making a rushed $50 million a year announcement on Transitional Assistance in response to National.

"This brings the total number of uncosted policies announced by Helen Clark since the pre-election opening of the books to at least 30.

"It's poorly thought through and reactionary. National's package, coming out tomorrow, will be of a broadly similar size but better structured.

"However, the big difference is whether the policy is real or not. National's is part of our fully costed and fully funded fiscal package.

"Labour's is part of Helen Clark's patented 'promise and hope' programme.

"Labour's only response to challenges about where the money comes from is a message to wait for a mini-Budget after the election. That will be when they will undoubtedly cancel any further tax cuts for hard-working Kiwis.

"Helen Clark and Michael Cullen are fair-weather economic managers. They have no idea how to manage an economy in tougher times.

"National has made the hard choices around KiwiSaver and R & D tax credits to give New Zealanders a responsible economic package that will provide security and growth.

"One week to go in the election campaign and Labour has no idea how to do either."

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Slamming the door on organised crime- labour said

Police Minister Annette King told the Police Association conference today that she is confident that New Zealand has the strength and capacity to take on organised criminal groups whose sole ambition is to make profits out of peddling misery and fear in our society.

Ms King says Labour will "continue to crack down on organized criminal activity across a number of fronts.

"Labour is already doing just this, and we will also establish a Commission of Inquiry into Organised Criminal Gangs as a means of establishing the extent of gang involvement in organised crime."

Ms King said the commission's findings would provide an excellent stocktake of the level of organised criminal activity in New Zealand, and supplement all the measures and initiatives currently being taken. "It will only draw on the experiences of police here, but will also hear from overseas jurisdictions facing similar issues and problems.

"There has also been a whole range of local solutions put forward to dealing with criminal gang activities. We need to ensure that any future measures we put in place continue to be effective," she said.

"Labour will expect the Commission to study not only the involvement of gangs in organised crime, but also to study recruitment and other anti-societal behaviour, and will also task the Commission with determining appropriate measures to curb and control gangs."

Ms King says Labour is also committed to investigating and following the progress of South Australian gang legislation to determine if it is applicable in a New Zealand context.

Ms King said Labour is committed to passing a number of Bills including:

• The Serious Fraud Office Abolition and Transition Provisions Bill establishing an Organised Crime and Financial Agency within Police.

• The Organised Crime, Penalties and Sentencing Bill, which significantly increases the maximum penalty for participation in an organised criminal group and make such participation an aggravating factor at sentencing.

• The Criminal Proceeds Recovery Bill, which introduces a new civil forfeiture regime under which assets and profit gained from crime can be confiscated without a conviction.

• The Search and Surveillance Powers Bill to provide a coherent, consistent approach to law enforcement powers of entry, search and seizure. The law has failed to keep pace with technology, with existing legislation sanctioning law enforcement use of interception and tracking devices cumbersome and outdated. It is silent with respect to the use of visual surveillance devices.

"We will also act on a number of other fronts to combat crime, including:

• Making it easier, through the Search and Surveillance Powers Bill, to detect younger people carrying knives in a public place. Carrying knives has become fashionable amongst some young people today, and the use of knives by youth gangs has slightly increased over recent years.

• Extending to other centres the Counties Manukau community and police initiatives to respond to youth gangs.

• Encouraging government agencies and community groups to continue work in partnership to respond effectively to young offenders' psychological problems, alcohol and drug issues, educational failure and lack of employment skills.

• Establishing Drug and Alcohol Teams at a local level to coordinate a range of service to provide tailored solutions for those who commit crime to fund their drug use.

• Passing the Sale and Supply of Liquor and Liquor Enforcement Bill to make it more difficult for young persons to obtain alcohol.

• Passing the Domestic Violence Reform Bill, which will enable Police to issue interim protection orders; improve the response of the Criminal Court and the Family Court to victims of family violence; and provide better protection for children in Family Court matters.

• Introducing legislation to give effect to the recommendations of the Task Force for Action on Sexual Violence that was set up in July last year.

"Labour is committed to a modern, effective, fair and accessible justice system which makes offenders accountable, reduces offending, supports the victims of crime, and, in turn, strengthens our communities," she said.

"Every New Zealander is entitled to feel safe in their homes and in their community, but governments cannot solve all the issues in isolation. Labour believes in working with communities to make our neighbourhoods as safe as we possibly can. We all need to take responsibility in the battle against crime."

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Desperation drips from latest smear attempt

National Party Leader John Key says Labour's latest attempt to link him to the controversial H-Fee is little more than a desperate smear less than a fortnight out from the election.

"This is a desperate attempt by the Labour Party to smear me 10 days out from the election. I have never been involved in the H-free transaction. The Serious Fraud Office Director at the time has confirmed that."

Former SFO head Charles Sturt has previously confirmed: 'Mr Key was simply one in a "vast array of innocent people, potential witnesses, in a massive fact-gathering exercise. I feel compelled to fully support the reported comments of John Key in relation to the H-Fee transaction. It should not need to be said that John Key was completely innocent of any wrongdoing whatsoever. For any politician to hint or suggest otherwise would be absolutely rubbish and pure mischief-making'.

Mr Key says the Labour Party's desperate attempt to link him with this issue again now appears to revolve around an earlier H-Fee transaction which took place in Australia while he was working for Elders in New Zealand.

"I was not involved in, or even aware of, that earlier transaction. Labour is clearly scraping the bottom of the barrel and will stop at no lie or innuendo."

Mr Key says he has previously clarified the year of his departure from Elders in the New Zealand Herald on July 19.

"I remain focussed on the issues that matter to New Zealanders. I challenge Helen Clark to do the same, and face up to her record on law and order, the economy, health and education."

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Key faces accusations of misleading the public

National Party leader John Key faces accusations of misleading the public about his knowledge of one of New Zealand's most notorious white collar crimes, the New Zealand Herald website reported today.

An item posted on the newspaper's website said the allegations centred around the so-called H-Fee -- two payments totalling $A66.5 million to Equiticorp funnelled via sham foreign exchange transactions in 1988 -- and an interview Mr Key gave the Herald last year.

During the interview in August 2007, Mr Key confirmed he worked as a foreign exchange dealer at Elders Merchant finance, part of Elders IXL, which made the payments to the Allan Hawkins-controlled Equiticorp.

But he said he left Elders in 1987, before the transactions were processed.-


"Three months before any of these deals got decided I left Elders...I was never involved in them," Mr Key said during the interview.

The Herald said it had checked court documents made public by the Labour Party which included the fact that Mr Key resigned from Elders in June 1988, six months after the first payment.

It said there was no evidence Mr Key was involved in handling the sham transactions.

The Herald said it had read the 13,000 page court file in Melbourne which contained a statement by Mr Key in which he said he resigned from Elders on June 24, 1988, and was immediately placed on leave because he was going to a rival company.

It said Labour was planning to drop the "bombshell" on the election campaign trail tomorrow.

Prime Minister Helen Clark said if the Herald had published the story then they obviously believed there were questions to answer.

Miss Clark said it was not a story that she was handling, but whether it was a bombshell depended on the answers to the questions raised by the story.

Asked if it was appropriate for Labour to be digging around in Mr Key's past, Miss Clark said the lives of political leaders were open books.

source : nzpa

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Labour releases comprehensive Health Policy

Prime Minister Helen Clark and Health Minister David Cunliffe today released Labour’s health policy, underlining Labour’s commitment to a strong, safe, affordable and accessible public health system for every New Zealander regardless of ability to pay.

“Labour will continue to invest in a world class public health strategy aimed at helping New Zealanders stay well. We will prioritise fighting the disease and disability caused by obesity, tobacco, and alcohol and by the preventable cancers.

“Labour is committed to far reaching screening and wellness programmes, including important new initiatives like the B4 school checks for four year-olds, bowel cancer screening, HPV vaccination against causes of cervical cancer, and other world class public health programmes.

“We will continue to give strong support to cervical and breast cancer screening. Labour will work to see that PHOs and district health boards (DHBs) are linked through district wide primary health care plans in order to identify gaps in primary care and barriers to access.

“As soon as economic circumstances permit we will work to reduce the cost of doctors’ visits further, with priority being given to the 65 plus and six to seventeen year age groups,” Helen Clark said.

David Cunliffe said Labour will work with DHBs to strengthen regional, clinical, and administrative networks. Productivity can be lifted through joint purchasing and common approaches to workforce development and IT planning.

“Labour will also continue to prioritise shorter waiting times for treatment in the cardiac, cancer and orthopaedic services.

“Labour will increase the number of training places at New Zealand medical schools, with an extra 50 places in 2010 and a further 50 places in 2011,” David Cunliffe said .

“An important new initiative is our pledge to provide free annual health checks for intellectually disabled people with high support needs.

“We will also strengthen work force development and regulation in the aged care sector, and ensure that the audits of facilities are publicly available.

“Under Labour we have achieved a great deal in health. Today we are renewing our commitment to world class public and primary health care, an integrated DHB network to provide the hospital services we can all trust and rely on, and a renewed emphasis on delivering quality services for our seniors and others in care,” David Cunliffe said.

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All talk, no action from Labour over failing kids

Labour's latest plan to identify at-risk kids is simply more bureaucracy and fast talk, says National's Education spokeswoman, Anne Tolley.

"The Ministry of Education has already spent $700,000 on the behaviour screening tool which has been slammed by experts as a waste of money.

"The scheme, which aims to screen all Kiwi toddlers to identify future violent offenders, is simply counting the numbers and provides no real solutions to helping our at-risk kids.

"Teachers, social workers, and parents up and down the country are crying out for real solutions to help them identify at-risk children.

"Yet all that Labour can do is throw hundreds of thousands of dollars at an initiative that even its own expert panel has told it to 'forget about'.

"More bureaucracy, endless talk and number crunching will do nothing to identify and address at-risk young people like the 11-year-old Gisborne boy recently reported to be running his own gang.

"After nine long years Labour has failed Kiwi families and schools.

"Teachers need resources and real solutions to deal with troubled young people.

"National will deliver these, not the bureaucracy and talk that have become Labour's hallmark."

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Party coalition a five headed monster-national said

National says if Labour manages to stitch together a multi-party coalition after the election it will potentially be a "five-headed monster".

Based on the latest poll results, Labour could form a government involving The Green Party, The Maori Party, New Zealand First and the Progressives.

National leader John Key is warning of the dangers should that happen.

"I think it's a very clear choice for New Zealanders. Do they want to put in a National government with a fresh view that will work going in one direction with a smaller group of parties. Or do they want a potentially five-headed monster."

Mr Key says such a mix would be a very difficult Government to hold together and manage.

Prime Minister Helen Clark says it shows Mr Key is a bit rattled. She says it is ridiculous, as the National leader is trying to stitch up a Government involving Act, United Future and the Maori Party.

"He knows that any arrangement from National that brings Roger Douglas anywhere near Government is something that people do not want at all. So he's trying to cover that very unpopular fact."

Miss Clark maintains Labour has a real chance of forming the next government, if it can encourage people to vote.

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Emergency department delays for most

There's yet more proof of how gridlocked the country's hospitals are becoming with the latest emergency department waiting time report from the Government, says National Party Health spokesman Tony Ryall.

"There's been no improvement in waiting times for the vast bulk of people attending EDs. These so-called triage 3 patients make up 80% of the people in Ministry reports turning up at EDs. They turn up with fractures, breathlessness and bleeding and are having to wait for hours and hours to be seen. They should be seen by a doctor within 30 minutes but on average only 53% are.

The latest information for the three months ending June 2008, shows none of the country's major hospital emergency departments is seeing patients soon enough.

Only six of the smaller district health boards (DHBs) in New Zealand are meeting all three of the Government's own waiting time benchmarks for treating patients at emergency departments. These benchmarks are recommended by the Australasian College of Emergency Medicine.

“Some of the major DHBs are, in fact, going backwards (*1). They are no where near meeting the Government's targets. It's little wonder that the news is full of gridlocked hospitals in Code Red, and even the previously unheard of Code Purple.

Mr Ryall is praising the hard working doctors and nurses for a slight improvement in triage 2. These patients have serious head injuries and suspected heart attacks. They should be seen within 10 minutes but on average only 71% are. After nine years of Labour, billions of extra dollars, and thousands of extra bureaucrats most Kiwis would expect our frontline emergency departments to be doing much better.

“How long you wait in a hospital emergency department has a direct bearing on how well any treatment will work (*2).

"When the economy gets tough as it is now, Kiwis need to know they can rely on their public hospitals. Frontline doctors and nurses need to be given authority to sort out the ED crisis around the country. National's plans for giving doctors and nurses more say, will help fix the ED crisis. It's worked overseas and it can work here,” says Mr Ryall.

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Reserve bank slashes interest rates

The Reserve Bank of New Zealand cut its official cash rate to 6.5 percent, the lowest since January 2005, citing financial market turmoil and markedly slower economic growth.

The cut, in line with economists' expectations, comes with the New Zealand economy in recession against a backdrop of the world's biggest financial crisis since the 1930s.

Kiwibank and ASB have been the first retail banks to follow suit and cut home mortgage rates.

Kiwibank dropped its variable home loan rate by one percentage point.

Chief executive Sam Knowles said the new variable rate would be 8.70 percent per annum with immediate effect for new customers and in two weeks for existing customers.

ASB Bank was the first of the major banks to move, reducing its fixed lending rates, but keeping its variable rate under review.

Among its new rates are a 6 month fixed rate of 7.99 percent, compared with its website-advertised rate of 9.25 percent, and a 12 month rate of 8.1 percent, compared with 8.95 percent on the website.

The rates would take effect from tomorrow, the bank said.

Meanwhile, Reserve Bank governor Alan Bollard said if inflation fell as expected, he was likely to cut interest rates further. Economists are now picking the OCR to fall to as low as 4.5 percent by next March.

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Advance election voting opens

Advance voting has opened for the November 8 election in New Zealand .

Advance votes can be cast by voters who are unable to get to a polling place in their electorate on election day.

Chief Electoral Officer Robert Peden said more than 250 advance voting places would be available from today for people to vote.

There would also be special arrangements in some electorates.

They include d sending ballot papers by boat to Pitt and Stephens Islands, visits by officials to communities along an 80km stretch of the Whanganui River and voting vans travelling around the Kaikoura and West Coast electorates.

He said staff would also visit hospitals and rest homes to ensure people who couldn't get to a polling place had the opportunity to vote.

In 2005, 197,938 or 8.59 percent of votes were cast in advance.

Details of advance voting places are available from the elections website www.elections.org.nz or by calling 0800 367656.

Advance voting closes at 6pm on November 7.

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National to get tough on child abusers

National leader John Key said today his party would limit who could get home detention and would impose longer sentences for abusing or killing children.

Mr Key said home detention sentences were too easy to get and it should only be available to low level offenders.

National would reassess whether home detention was an appropriate sentence for people convicted of violent, sex and drug charges.

Penalties for those who abused or neglected children would also be increased.-nzpa

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Auckland Airport bond issue in hot demand

Auckland Airport today announced that its public offer of $80 million of retail bonds for cash has already been fully subscribed, less than a week after opening.

This does not include the reserve of $50 million set aside for holders of existing Auckland Airport unsubordinated, unsecured, fixed rate bonds maturing on 15 November 2008. Those existing bond holders can apply to have all or part of the principal of those bonds exchanged on maturity for the bonds under this offer.

Subject to bond holder take-up of the exchange offer, any remaining bonds from the $50 million reserve will be placed on public offer on a first-come first-served basis.

Chief financial officer for Auckland Airport, Jason Dale, said, “This is an important and exceptionally pleasing expression of the market’s confidence in Auckland Airport at a time of very uncertain investment conditions. The strength of the demand indicates that quality, long-term investment opportunities will always remain in vogue.”

The bonds offer investors an opportunity to invest in an iconic kiwi long-term infrastructure business.

Interested members of the public should contact their financial advisors or share brokers, or First NZ Capital Securities (First NZ Capital) on 0800 162 222 to request an investment statement.

The bonds will be direct, unsecured, unsubordinated debt obligations of Auckland Airport. The bonds will have a maturity date of 15 November 2016. The minimum holding in respect of the bonds is $10,000 and in multiples of $1,000 thereafter.

Application has been made to NZX for permission to list the bonds and all the requirements of NZX relating thereto that can be complied with on or before the date of distribution of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement.

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Shell slashes price of petrol

Shell cut petrol by 8 cents a litre and diesel by 6 cents today.

The price cut, which came into effect at 11.30am, takes Shell unleaded petrol to $1.81.9 a litre and diesel to $1.35.9.

"While crude oil has been steadily falling, we are now seeing the decrease flow through into the cost of refined product," said Shell spokesman Kylie Reeves.

"The kiwi dollar has also stabilised over the last couple of days, helping us to pass on this significant saving to motorists."

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NZ dollar slides

The New Zealand dollar tumbled 2c against the greenback early today as stocks slid in the United States after figures showed a big slide in US retail sales.

By 8am today the NZ dollar was buying US60.70c , having been above US62.60c just 4-1/2 hours earlier. It had climbed from US61.70c at 5pm yesterday.

Around 8am the Dow Jones industrial average was down 5.6 percent for the day, after data earlier overnight showed US retail sales decreased 1.2 percent last month.

ANZ said the night was relatively quiet for the NZ dollar by recent standards. The weaker than expected US retail sales, contributing to the selloff on the Dow, had quickly dashed hopes of a solid move for the kiwi above US62.50c.

The kiwi did gain against the Australian dollar overnight and by today's local open was at A90.10c, from A88.75c at 5pm.

The NZ dollar slipped against Australian and Japanese currencies -- to 0.4490 euro from 0.4542, and to 61.17 yen from 62.50. The trade weighted index was 60.25 at 8am from 60.84 at 5pm.

BNZ currency strategist Danica Hampton said worries about the global growth outlook had taken a toll on growth sensitive currencies such as the NZ dollar, particularly against safe-haven currencies such as the yen.

The euro fell against the US dollar and yen, weighed down by steep losses in US stocks as global risk aversion increased. The greenback also fell against the yen.

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Source: NZPA

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Clark-Key debate tonight

Prime Minister Helen Clark and National leader John Key go head to head tonight(october 14) in the first major televised leaders' debate of the election campaign. Both will be spending some time in Auckland today preparing for the event on TV One. Mr Key says he will not have the same problem as his his predecessor Don Brash, who stated after the 2005 debate with Miss Clark, that it was not gentlemanly to interrupt a woman

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Govt steps in to protect savings

The Government is introducing a $150 billion bank deposit guarantee scheme, but says it has total confidence in New Zealand's banking sector.

The opt-in scheme, which was announced on Sunday along with a similar move in Australia, aims to ensure continued confidence among depositors amid a freeze on international credit that is chilling the world economy.

Helen Clark has also said a Labour government would present a mini-budget in December to deal with the effects of the international financial crisis.

"It's obviously affected the kind of policies we are going into the election with," she says.

"We're not looking to cut overall government spending but we have to look very carefully where we direct it."

Clark says the government is assuming the international crisis will have a prolonged effect on economic growth.

Australia's prime minister Kevin Rudd is describing the global financial crisis as "a national security crisis".

Analysts say there is now little doubt that growth in Australia will slow sharply next year with the possibility of recession very real.

The International Monetary Fund has warned of a meltdown in the global financial system, and many other countries have already moved to protect their banks.

Michael Cullen, who is using his powers under the Public Finance Act to introduce the opt-in scheme, says he does not believe the taxpayer is at risk.

The scheme, initially for a two-year term, will cover all retail deposits of participating New Zealand-registered banks, and retail deposits by locals in non-bank deposit-taking entities such as building societies and credit unions.

The scheme will be free for institutions with total retail deposits under $5 billion.

A fee of 10 basis points per annum will be charged on total deposits above $5 billion. This means that a bank with $20 billion in retail deposits would pay $15 million in fees per annum.

Australia's move to offer an even broader guarantee would have left New Zealand as one of the few countries in the world without such a policy in place.

"The deposit guarantee is designed to give assurance to New Zealand depositors. The New Zealand banking system remains sound. We want to ensure that ordinary New Zealanders feel that their deposits are safe in the current uncertain international financial market conditions," Cullen says.

The guarantee was offered because Cullen says he would not be comfortable with New Zealand being the only country not offering such a policy.

The contingent liability would go down in the books at $150 billion: "Not one I expect to be called upon because the institutions are extremely sound," Cullen says.

Most of the banking sector cash assets are made up of wholesale banking deposits.

KPMG deputy chairman Godfrey Boyce says the move is consistent with what is happening overseas, but it is a significant change to the established thinking in New Zealand.

"It's definitely a ground shift move, but it reflects the extraordinary times we're in I guess," he says.

The decision was somewhat inevitable with every western country seeking to look after its own deposit base.

"You start to look as though you're out to one side just by the mere fact you don't act and move with everyone else. I think there was peer pressure," Boyce says.

In New Zealand, finance sector woes have centred on property-related finance companies and funds, and retail investors have not really been affected.

Boyce says he believes bigger banks will raise questions about how different-sized banks are treated under the scheme.

"Basically you don't pay anything if you've got a retail pocket base of $5 billion or less, and then if you're ANZ, BNZ, Westpac or ASB you pay essentially a guaranteed fee over $5 billion," Boyce says.

"It seems a little bit of an inequity sitting in there somewhere, which I think the big four will reflect on."

National Leader John Key yesterday welcomed the move.

He called it an "inevitable and sensible step" considering international moves. However, he agreed that New Zealand's banking system continued to be sound.-tvnz/nzpa

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NZ First cleared as Labour picks up in the polls

New Zealand First leader Winston Peters' re-election chances have been given a big boost just as opinion polls show Labour gaining support and closing in on National.

The Serious Fraud Office yesterday cleared NZ First after investigating two donations to the party.

It found the money was used for the purpose the donors -- Sir Robert Jones and the Vela family -- intended.

It did discover NZ First might have breached electoral laws in the way the donations were handled, but that is a relatively minor issue and is being dealt with by the Electoral Commission.

Mr Peters stood down from his foreign affairs and other portfolios while the SFO inquiry was carried out, and Prime Minister Helen Clark took over.

She said last night she would continue to hold his portfolios because other inquiries were still going on and the election was close.

Mr Peters said the SFO inquiry had been a waste of time, and he had always known there would not be a fraud case to answer.

National, which has ruled out working with NZ First after the election, has held a strong lead over Labour for most of this year and some polls have put it more than 20 points ahead.

But two polls within the space of a few hours yesterday changed that.

The New Zealand Morgan poll showed a dramatic change, with Labour gaining support, National losing it and a gap of just three points compared with 11 a fortnight ago.

The sudden change in support trends was doubted -- until TV3 came out with a poll showing Labour up three points to 39 percent and National down four to 45 percent.

The gap in the TV3 poll was six points compared with 13 two weeks ago.

Miss Clark said the polls showed voters were thinking seriously about risking a change of government.

She said voters knew Labour had run a strong economy for most of the past nine years and trusted it to deal with the financial crisis.

Both polls were taken just before National released its tax cuts programme, which has been criticised for cutting down KiwiSaver benefits and ending tax rebates for research and development to pay for them.

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National package an assault on savings and investment-Labour said

National leader John Key the other day revealed his plans to destroy KiwiSaver and its long-term benefits for New Zealand for the sake of his own pursuit of power, Finance Minister Michael Cullen said today.

"John Key\'s announcement today that National would slash by half employer contributions to New Zealanders\' personal savings, and cut into many employees\' contributions, exposes National\'s short-term agenda and proves how hollow National\'s so-called economic growth plan really is.

"National\'s first instinct is to destroy a programme that will help promote growth and to remove important employment rights that protect employees in KiwiSaver.

"If implemented, this would gut KiwiSaver and sells the 800,000 plus members down the river. It would mean the sell-out of many Kiwis\' hopes of buying their first home. It would mean the sell-out of many New Zealanders\' opportunity to having a little bit more in retirement," Dr Cullen said.

"The past 18 months of major stress in international financial markets has highlighted very clearly that New Zealand needs to strengthen its savings culture and needs to strengthen its savings and investment record. This is why KiwiSaver is so important.

"The short-sightedness of National\'s proposed attack on savings is matched only by its attack on investment in research and development and in infrastructure. John Key proposes to axe the R&D tax credit that is a fundamental ingredient in raising the nation\'s productivity and non-inflationary growth rate over time. John Key also proposes no offsetting increase in public sector research and development," he said.

"All for what? A poorly-designed tax package that delivers nothing to 370,000 New Zealand households that receive Working for Families, reduces legislated tax rates and thresholds for the lowest and highest earners and claws back as much as it gives in tax cuts – and more – for current KiwiSavers.

Note: Impact of National\'s proposals on modest income KiwiSavers

A person earning $30,000 in Kiwisaver under Labour would save $750 a year themselves, receive a $750 contribution from the government and a $750 contribution from their employer: That is $2,250 a year in their account. Labour has protected workers against employers clawing back their (employers\') contribution.

But under National\'s anti-savings plan, the same person would pay in 2%, that is $375, receive $375 from the government but the $375 from their employer would be paid by the employee because of reduced wages: In other words, that worker would still have to pay $750, but their return would only be $1,125 in their account after a year.

Because these people would not get any additional tax relief under National\'s plan, they would end up losing $1,125 a year from their savings account in order to pay for National\'s tax cut package which, by design, mostly benefits those already on high incomes, without children and who do not have a personal savings plan.

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National gives with one hand and takes with the other

National has unveiled an economic and tax package that gives with one hand and takes with the other.

Party leader John Key revealed a slightly pared down tax cut package that puts more in people's pocket's next April, but offers less than planned.

The cuts are funded by cutting planned increases to Government subsidies for those in KiwiSaver and axing research and development tax credits for businesses.

There is also a reduction in the amount to be spent on infrastructure in the next three years, so that borrowing is reduced.

Mr Key said a worker on the average wage of about $48,000 would be better off by an additional $18 a week above Labour's tax cuts when National's first tranche of cuts kicked in on April 1 next year, if the party is elected.

Incorporating Labour's October 1 cuts, the same worker would be $47 better off by April 1, 2011.

The package outlined by Mr Key included movements in both the thresholds that different rates start at, and drops in the actual rates themselves.

It also included a tax rebate of $10 a week for taxpayers earning between $24,000 and $50,000 who do not receive anything from Working for Families.

It is estimated 600,000 people would qualify for the rebate.

Mr Key said National had scaled back its tax cuts plan by $2 billion in the face of a decade of forecast budget deficits.

It was estimated the tax cuts would now cost $5.7 billion up to 2011/2012.

The changes to KiwiSaver as well as dropping the research and development subsidy would save $5.9 billion over the same period.

Mr Key said the worse than expected economic figures released on Monday meant National had been less generous with the top tax rate and the lower scales as well.

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NZ dollar struggles on risk aversion

The New Zealand dollar remained under pressure on Wednesday as global economic uncertainty weighed down on equity markets and eroded risk appetite, but it held above two-year lows.

The kiwi, which rallied late on Tuesday after the Reserve Bank of Australia's surprise 1 percent interest rate cut, stumbled as analysts predicted the move could also herald more aggressive easing from New Zealand's central bank.

The Reserve Bank of NZ's next policy meeting is on Oct. 23, with its 7.5 percent benchmark rate seen certain to fall.

"We see it as a tight call between 75 basis points and 100 basis points," ASB Bank chief economist Nick Tuffley said in a note to clients.

In normal times, the prospect of lower yields would hurt the kiwi, though given the global market turmoil investors might look more favourably on a big rate cut to shore up an economy already in recession.

At 0415 GMT the kiwi was at $0.6242/52 compared with $0.6383/93 in late local trade on Tuesday. It touched a two-year low of $0.6170 in late local trade on Monday.

On the cross rates, the kiwi was steady above a five-and-a-half year low against the yen and fell away from ten-month highs against the Aussie.

New Zealand's main opposition National Party unveiled its proposals for cutting personal taxes if it wins the Nov. 8 general election, promising larger cuts sooner than the Labour-led government.

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Disaster Awareness Week: tomorrow will be disturbing and dramatic for Wellingtonians

Wellingtonians will be left in no doubt about the need to be prepared for a major earthquake or other emergency after two dramatic Disaster Awareness Week events TODAY (Wednesday 8 October).

The Capital's new tsunami and civil defence warning system will get a noisy and dramatic unveiling and then, at 8.30pm, TV3 will screen a two-hour dramatic tele-feature - Aftershock - about an earthquake and tsunami hitting Wellington.

A helicopter carrying powerful loudspeakers will fly low over the central city and coastal suburbs for one hour from 6pm to 7pm on 8 October. The chopper will carry a new public-address system that's specifically designed to warn as many people as possible, in as short a time as possible, about impending danger.

Wellingtonians can expect to hear a jarring and shrill sound – the national Civil Defence ‘Sting' siren – followed by the words:

"This is a test – the next time you hear this siren it could be a real emergency or disaster. Get ready to get through – your local council can help."

The test messages will also be broadcast at street level from vehicles operated by the City Council's Emergency Management Office between 10am and 12 noon – and then 6pm and 7pm to coincide with the helicopter exercise.

The 10am to 12 noon street-level exercise will cover the CBD and the southern suburbs to Island Bay. The 6pm-7pm street-level exercise will coincide with the helicopter test and will cover outer suburbs including Johnsonville, Karori, Kilbirnie and Miramar.

The Council's Civil Defence Controller, Mike Mendonca, says the tsunami warning exercise, followed by Aftershock, should leave Wellingtonians in no doubt about the need to prepare for emergency.

On Wednesday evening, good weather permitting, the helicopter will fly around the coast and harbour edge from Owhiro Bay to Ngauranga and then return – broadcasting all the way.

Mike says the portable PA system is so loud that people are warned to move well clear before it operates at full volume. It has been measured at more than 140 decibels – from more than 1 kilometre distant.

The PA system can be operated ‘manually' - with a person speaking into a microphone – or it can broadcast a series of pre-recorded messages pertinent to the emergency or situation at hand.

In the event of a genuine tsunami emergency, the broadcast message will urge residents to get out of their homes and move inland or to high ground immediately – at least 1.5 kilometres inland or 35 metres above sea level - and to not wait around to collect valuables or other possessions.

Mike says Aftershock pulls no punches in showing how normal life, as we know it, would be drastically disrupted for months, if not years, following a big quake in the region.

On Thursday, starting at 9.30pm, a follow-up documentary on TV3, Aftershock - Would You Survive?, will force viewers to question that great Kiwi edict: She'll be right.

In Would You Survive?, local family Brent Lewis and Cathy Sneyd thought they were pretty well-prepared for a disaster, until they were hit by one. With kids Lizzy, 17, Doug, 14, and Sam, 12, the family had done what many Kiwi families do – they'd bought a few bottles of water and a few extra tins of food, put them in a big box in the garage, and forgotten about it.

Over ‘a long weekend from hell' they received a wake-up call that they say has changed them for good. Cold, wet, tired, thirsty and hungry, the family put their bodies on the line to help viewers see for themselves what could happen to them.

The programme will test the average Kiwi's preparedness for a natural disaster – and ability to survive if the worst happens. The programme puts the family through their own personal disaster, challenging them at every turn as their world is literally shaken-up and then they're made to cope in a disaster zone with no help, for three long days.

Mike Mendonca says he hopes Wellingtonians will learn some serious lessons from the Aftershock programmes. "Whether we like it or not, if a big quake strikes the region then we will all personally have to look after ourselves for at least several days – and probably longer.
"The better prepared we are, the less traumatic the experience will be."

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Nats' tax cuts to be smaller than expected

National leader John Key says the party's planned tax cuts to be announced tomorrow will be scaled back due to the current economic climate.

Mr Key told journalists in Auckland that it would be irresponsible at this stage to proceed on the scale National originally envisaged.

Mr Key said New Zealand was facing three serious challenges: "A worsening international outlook, a recession and under Labour, little prospect of the conditions needed for long-term growth."

National was committed to ongoing tax cuts, but yesterday's opening up of the books with predictions of years of deficits had led to changes.

"We have made some changes to our tax package in light of the news Michael Cullen dished up in yesterday's pre-election fiscal update (Prefu)," Mr Key said.

"The thrust has not changed. But we are being realistic about what is fair and affordable in light of the mess Labour will be leaving behind it."

Following on from the Labour tax cuts of October 2008, National would still be making further tax reductions on April 2009, April 2010 and April 2011.

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NZ First argues against tax cuts

New Zealand First is taking a stand against tax cuts, arguing National and Labour have got their priorities wrong.

It comes as National prepares to unveil its tax cuts package tomorrow, against a background of Treasury predicting a decade of budget deficits.

New Zealand First Leader Winston Peters believes what is needed is changes to the Reserve Bank Act and inflation controls - not tax cuts. He says there is not much point of a tax cut when we have the third highest interest rates in the OECD.

Mr Peters says the state should use its credit to get rates down, and focus on building a sound economy. He says tax cuts for consumptive wealth is a fatal economic move to take.

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Cullen welcomes US Senate approval of finance bailout

Finance Minister Michael Cullen has welcomed the United States Senate's approval of a massive $US700 billion ($NZ1.04 trillion) rescue plan for the nation's finance system.

Dr Cullen like many others around the world is now hoping that the House of Representatives, where lawmakers rejected the original version on Monday, 228-205, will back the bill on Friday

A strong bipartisan Senate majority rallied behind the controversial Wall Street bailout package, passing it by 74-25, but only after tacking on an extra $US110 billion in tax breaks to lure votes from both parties.

Dr Cullen said the vote was important to restore confidence in financial markets whose collapse could send the world into economic recession.

"It is a very positive move, particularly because there was a very large majority for it, basically three to one in favour, and reports so far seem to indicate that the changes to the bill will be sufficient to insure enough votes in the House of Representatives," Dr Cullen said.

"It is very important, it is a pity that it has already been delayed as that will weaken the effect a bit. But restoring the confidence in the financial sector is very important and of course the bill has a number of measures in it to try and ensure as far as possible that those responsible for this whole sad and sorry saga aren't able to profit."

Dr Cullen said the views of those in the US who believe Wall Street should be allowed to crash ignored the repercussions of a US and worldwide economic recession potentially flowing from a complete loss of confidence in the finance sector.

Like the legislation the House rejected Monday, the Senate bill essentially creates a $700 billion federal programme to buy bad assets from banks and other financial firms at a steep discount.

President George W Bush , Treasury secretary Henry Paulson and Federal Reserve chairman Ben Bernanke have warned repeatedly that failure to pass the legislation would lead vital credit markets to seize up, forcing employers to lay off employees, plunging the economy into recession and perhaps even another Great Depression.-NZPA

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