30/03/11 - Minister attending Bali Process meeting

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New Zealand’s commitment to preventing people smuggling and human trafficking will be reinforced at the Bali Process Ministerial Conference, says Immigration Minister Jonathan Coleman.

Dr Coleman is attending the fourth Bali Process in Indonesia this week. The conference brings together Asia-Pacific countries to work on practical measures to help prevent and deter people smuggling and human trafficking.

‘‘People smuggling and human trafficking are serious issues throughout the region and the Bali Process is about working together effectively to prevent and deter these dangerous and undesirable activities,’’ says Dr Coleman.

‘’Attending the Bali Process confirms New Zealand’s support and commitment to tackling the irregular movement of people. Our geographical isolation mitigates our exposure to smuggling and trafficking, but as a regional partner, the Government is determined to support ways to deter these criminal acts.’’

The Bali process, which is being co-chaired by Australian Foreign Minister Kevin Rudd and Indonesian Foreign Minister Dr Marty Natalegawa, will focus on strengthening regional plans to effectively combat people smuggling and human trafficking.

New Zealand launched a Plan of Action to prevent human trafficking in 2009. The Plan puts specific strategies in place to prosecute traffickers to the full extent of the law, and meet the needs of victims.

(Source  Beehive, Jonathan Coleman)

30/03/11 - University in the gun for letting overstayer complete degree

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Immigration New Zealand is investigating AUT University for enrolling an overstayer as an international student, accepting payment from her and letting her complete her studies while she was in the country illegally.

Chinese student Mengna Wang paid about $40,000 in fees over the two years she took to gain her bachelor of business in accounting.

But AUT has told her she cannot graduate because she did not have a student permit.

The acting head of Immigration NZ, Steven Dunstan, said it was an offence "to educate someone who does not have the authority to study".

"We have taken up with AUT the circumstances of Miss Wang's study there."

He said education providers were responsible for ensuring prospective students held authority to study before allowing them to do courses.

AUT's director of corporate affairs, Tiffany White, said it was the student's responsibility to obtain a student visa.

She said the university had a procedure to confirm students had the right visas, and it had been updated this year "to align with new, tougher provisions in the Immigration Act".

Miss Wang was able to complete her course at AUT without holding a visa to be in New Zealand.

Ms White said that because of the privacy law, universities could not make immigration status checks on students before offering them a place.

Immigration New Zealand said Miss Wang was not granted further student permits after her first one expired in December 2007 because it was not satisfied she was a genuine student.

Miss Wang came to Auckland in 2007 to study English at the New Zealand Academy of Studies, but was cut from the course because of her poor attendance.

Immigration said it had also found out that a medical certificate explaining her absence had been forged.

But even without a student permit, Miss Wang enrolled at ICL Business School and completed a diploma of business administration course.

Immigration said it will also be speaking to the school about Miss Wang's study there.

Using cross credits from her diploma, Miss Wang got her place in AUT in July, 2009.

Miss Wang said AUT knew all along she did not have a student permit.

"It's so unfair and crazy because I have studied hard and did what I have to do to pass the course," the 23-year-old said.

"I have worked hard for my bachelor of business, and I just want my degree so I can go back to China."

Her appeal to Associate Immigration Minister Kate Wilkinson to intervene last month was declined.

Miss Wang said an ex-boyfriend gave the fake medical certificates to the school without her knowledge.

But Ms Wilkinson said that even if she granted Miss Wang a student permit, she would still be unable to get her degree.

"AUT has advised that Miss Wang could not receive her parchment or official academic transcript unless she held a student visa that covered the whole length of study," the minister said in a letter to Miss Wang's immigration agent.

Immigration New Zealand says Miss Wang has been told she may be liable for deportation.

(Source NZ Herald,  Lincoln Tan)

29/03/11 - Bureaucracy slashed for visiting academics

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Barriers to overseas academics visiting New Zealand are being removed with the introduction of a new visitor category, says Immigration Minister Jonathan Coleman.

The visiting academics visa allows academics from 50 countries, which New Zealand has special visa waiver arrangements with, to travel here without first obtaining a visa offshore. It comes into effect on April 4.

‘’Even though academics are often here for a short time – for instance to speak at a conference – it’s technically work if they receive any sort of reward, including accommodation or airfares. Previously academics have required a work visa before travelling here,’’ Dr Coleman says.

‘’This deters some from visiting, to New Zealand’s detriment, so from next week academics will be able to get a visiting academic visitor visa on arrival in New Zealand.

‘’This brings New Zealand into line with Canada and the United Kingdom and enhances New Zealand’s attractiveness as a destination for top visiting academic talent.’’

The visiting academic visitor visa will automatically allow them to stay for up to three months, or for a maximum of three months in any one year if they make several trips here. Beyond that period they will still require a work visa.

(Source Beehive, Dr Jonathan Coleman)

26/03/11 - Most Lotto winners stay in their jobs

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Nearly 90 per cent of big Lotto winners are still working in the same job they had before their lucky day.

A New Zealand Lotteries survey of 100 "big winners" has revealed what they spent their money on and what the experience has meant to them.

The survey has been released exclusively to the Weekend Herald as Powerball jackpots to $25 million tonight. If it is won, it will be the second-biggest Powerball win.

Based on the survey's findings, if there is a winner tonight, it is most likely they will splash out on their mortgage, as 24 per cent of winners did, or overseas travel (18 per cent). Another 18 per cent bought a new car.

And they are also likely to share the win with a charity (48 per cent).

A big winner is someone who has won Lotto first division, which ranges from about $300,000 up to $1 million depending on the draw, or Powerball, which ranges from about $4 million to about $30 million.

Eighty-eight per cent of the winners are still working in the same job after their big win.

Only three winners said they had retired because of the win and six others said they had changed jobs to something less stressful or part-time.

Lotteries chief executive Todd McLeay said the survey had revealed many quirks in the country's Lotto punters.

Winners said they hid their tickets under pillows, in sock drawers and even inside a chair.

"One woman even carried her ticket in her bra. She said that at 70, she knew it was safe there.

"We've found that winners are not particularly superstitious about how they buy their tickets, with 83 per cent having no special rituals. Six per cent will always go to the same shop, yet one winner will buy only in a town they haven't been to for more than five years. And one lucky winner said they'd rubbed the tummy of a Buddha statue the day they won."

Eleven per cent of winners said they bought a new house. Others bought boats or caravans or renovated their houses.

Among other purchases were a stallion, a pottery kiln, an electric drum kit and an engagement ring.

Five winners said they paid off debt.

Asked what the wildest thing they did after winning was, one winner admitted going to lunch with three friends and spending $1000.

Two said they went bungy jumping, another winner treated his wife to a helicopter ride and another ordered a new swimming pool.

When asked what the best thing about winning was, 56 per cent said financial security, while 19 per cent said helping out family and friends.

In October last year, a pig hunter from Papakura won the country's biggest single Lotto prize of $28.7 million.

The win was the single biggest because a $36 million Big Wednesday prize won in June 2009 in Masterton went to a family syndicate of four people.

Experts advise big winners to take their time with spending.

Craigs Investment Partners head of private wealth research Mark Lister said paying debt should be the first priority.

NZ Lotteries also provides support for winners to help them to cope with their newfound riches.

Striking it lucky

• 88 per cent of winners are working in the same job.
• 24 per cent pay into their mortgage.
• 48 per cent give to charity.
• 56 per cent say financial freedom was the best thing about winning.

(Source NZ Herald,  Beck Vass)

25/03/11 - Fall in GDP expected after economy skirts recession

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The economy eked out growth of 0.2 per cent in the last three months of 2010, enough to reverse the September quarter's decline and avoid a technical recession.

But output grew just 0.8 per cent during the year and almost all that growth happened a full year ago. The last three quarters of 2010 saw the economy expand a cumulative and mere 0.1 per cent.

In per capita terms, output is 5 per cent lower than it was at the pre-crisis peak three years ago.

By the end of last year, economic output had recovered only half the drop that occurred during the 2008/09 recession.

Compared to previous recoveries this was very poor, ANZ economist Sharon Zollner said.

"Accommodative monetary policy and high commodity prices are helping, but headwinds posed by disruption from the September 2010 Canterbury earthquake, ongoing debt reduction and a flat housing market have held back recovery," she said.

The earthquake a month ago had cancelled out signs of a burgeoning recovery early in the year.

"We're now looking at a March quarter fall in GDP.

"We expect activity to recover somewhat in the June quarter, but avoiding a recession in 2011 still looks a close call."

Bank of New Zealand head of research Stephen Toplis said the overall GDP reading showed that economies could keep growing even in the face of localised disasters.

"When you consider that in the December quarter, the country was still suffering global demand uncertainties, increasing household savings and post-earthquake disruption, it's perhaps remarkable the out-turn was as strong as it was," Toplis said.

"Sure, the February event was much more extreme and will have a much more negative short-term impact on growth.

"But we still stick to our guns that the economy will find a way to scramble through the mess."

Deutsche Bank chief economist Darren Gibbs expects the March quarter to record a modest contraction, with growth elsewhere offset by the hit to activity in Christchurch.

"However, like most other commentators, we're optimistic that modest growth will resume in the June quarter and then strengthen in the second half of this year, supported by the slightly easier monetary policy settings now in place, strong trading partner growth, the gradual flow-through to incomes from stronger terms of trade, the early stages of activity associated with reconstruction in Canterbury, and activity associated with the Rugby World Cup."

The 0.2 per cent growth recorded for the December quarter matched the median forecast among market economists.

Agricultural output continued its year-long decline, shrinking 0.5 per cent, with a fall in milk production only partially offset by an increase in wool production.

But forestry activity was up 6.6 per cent, driven by export demand.

Manufacturing activity was up 2.5 per cent for the quarter but still down 1.3 per cent for the year and 12 per cent below its level three years ago.

Construction was up 1.5 per cent, reversing half the preceding quarter's decline. The increase was in non-residential building and infrastructure; residential construction dropped.

The services sectors, which represent more than two-thirds of economic activity, were flat overall - their weakest performance for two years - driven by a 2.1 per cent decline in the retailing, accommodation and restaurants sector.

On the expenditure side, household consumption rose 0.2 per cent. Investment spending, by contrast, rose 4.8 per cent overall despite less investment in plant, machinery and equipment (down 1 per cent) and residential buildings (down 7 per cent).

The main upward contributor was spending on transport equipment, reflecting lumpy imports of ships and aircraft. Infrastructure spending was up 6 per cent and non-residential buildings an eyebrow-raising 17 per cent.

Net exports were negative, with export volumes up 2.1 per cent but import volumes up 6.6 per cent.

THE NUMBERS

• 0.2pc how much the economy grew in the December quarter
• 0.8pc how much it grew over the whole of 2010
• 50pc how much of the recession's decline in the level of economic activity has since been clawed back
• 5pc the drop in output per Kiwi compared with three years ago

(Source NZ Herald,  Brian Fallow)

24/03/11- NZ avoids double dip recession

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New Zealand's economy avoided a double-dip recession as manufacturing bounced back in the December quarter and underpinned growth. The kiwi dollar gained.

Gross domestic product grew 0.2 per cent in the three months ended December 31, according to Statistics New Zealand, after a 0.2 per cent contraction in the third quarter. That beat a Reuters survey of economists, which was picking 0.1 per cent growth.

Annual GDP grew 1.5 per cent.

Manufacturing activity drove the expansion, up 2.5 per cent and ended two quarters of contraction for the sector. Construction rose 1.5 per cent as rebuilding efforts began in Canterbury after Last year's 7.3 magnitude earthquake.

Still, most other parts of the economy struggled at the end of last year, and retail trade shrank 2 per cent as households continued to eschew spending in favour of repaying debt. Wholesale trade contracted 2.7 per cent in the quarter, its first decline since September 2009.

CTU economist Bill Rosenberg said the Christchurch earthquake was only part of the picture affecting the December quarter figures.

"What matters is the effect on people, their jobs and their standard of living. Continuing stagnation shows the government still has an important part to play in stimulating the economy and providing support for people out of work, as well as generous assistance to the people of Christchurch. It is not the time to cut expenditure," Rosenberg said.

There were growing fears New Zealand's economy contracted for a second quarter having last year dragged itself out of its worst recession in almost two decades, and economists aren't picking a strong rebound until 2013, according to a survey by the New Zealand Institute of Economic Research.

Signs of a turnaround in business confidence at the start of this year were snuffed out by last month's earthquake in Christchurch that killed more than 180 people and caused as much as $15 billion of damage to the country's second-biggest city.

The kiwi dollar rose to 74.24 US after Statistics New Zealand released the figures, and was last at 74.21 cents from 74 cents immediately beforehand. Finance Minister Bill English has just issued a statement saying that the GDP stats "confirm the economy was subdued in the second half of 2010, although there are reasons to be optimistic about the outlook for the coming year".

"Gross domestic product figures for the December quarter largely confirm what other indicators have been telling us.

"They reflect slower domestic growth as New Zealanders increased their savings and paid down debt, as well as the significant impact of the first Canterbury earthquake," English said.

"The economy is making the adjustment it needs to - away from excessive borrowing and housing speculation and towards more savings and debt repayment. It's important the Government plays its part in this rebalancing by getting its own finances in order and returning to Budget surplus.

"In the short term, this is constraining growth, particularly in domestic sectors like housing and retailing.

English said that there were reasons to be optimistic about economic growth picking up later this year, despite the impact of the Christchurch earthquake.

"New Zealand's commodity export prices remain around record levels, interest rates and inflation are relatively low, the rebuilding of Christchurch will provide a boost to the regional and national economy, and the Rugby World Cup will attract tens of thousands of visitors." said English.

ASB Bank economist Jane Turner said that activity over the first three months of this year had been disrupted by the February earthquake and so the bank had "pencilled in a small decline in GDP for the quarter, in contrast to a sharp lift prior to the latest earthquake." Beyond that, growth over the first half of the year was likely to be subdued.

"Nonetheless, the 50 basis point OCR should help bring some relief to stretched households and businesses, and we expect a recovery in confidence and underlying demand over the second half of 2011."

She cautioned that Statistics NZ would have a real challenge compiling GDP figures for the current quarter, because of the disruption and dislocation suffered by Christchurch business.

"The underlying momentum in the wider economy should gradually improve over the course of the year, and 'gradual' translates into the RBNZ being comfortable keeping the Reserve Bank on hold until early next year. At that point, it will start focussing on the inflation pressures kicked up by the bow wave of construction activity," said Turner.

Goldman Sachs economist Philip Borkin said that while today's data dispelled the fears that the economy had fallen back into recession, it did confirm what people knew for some time; 2010 was a tough year for the economy.

"While the first earthquake in September undoubtedly impacted, a theme of private sector deleveraging in our eyes is really the major reason for the lacklustre performance," he said. "Looking forward to 2011, the early part of the year will obviously again be hampered by an external shock."

Borkin said he estimated the February earthquake would knock growth in the first quarter of this year by around 0.7 percentage points.

"But later in the year we expect growth to improve due to 1) loose financial conditions; 2) a low base of activity to begin with; 3) eventual reconstruction activity; and 4) businesses putting better their balance sheets to work."

Statistics NZ said the February Christchurch quake caused more damage the September temblor, and the medium to long-term impacts on infrastructure and tourism will be felt throughout the Canterbury region.

The September quake was estimated to have caused some $4 billion of damage, and last month's may have wreaked more than $10 billion of damage.

(Source NZ Herald)

24/03/11 - Home affordability best in seven years

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Home loan affordability improved in February and early March to its best levels in seven years as flat to falling house prices in many areas and a large reduction in floating mortgage rates after the February 22 earthquake boosted home buyers' purchasing power.

The ongoing benefits of last year's income tax cuts for those on higher incomes boosted affordability to its best levels since March 2004, which was just before house prices surged, the Roost Home Loan Affordability report shows.

The Reserve Bank's 0.5 per cent cut in the Official Cash Rate has been passed on quickly to new floating mortgage borrowers.

However, there are renewed signs of a two-speed housing market where prices of more expensive homes in Auckland are firmer than entry level and investment properties in the outer suburbs and in provincial cities, where prices are weaker and buyers are in a stronger position.

"The interest rate cuts this month have significantly improved the outlook for home buyers," said Rhonda Maxwell, spokeswoman for mortgage broking group Roost Home Loans.

"Affordability for young couples is now at levels not seen since the middle of last decade, which is encouraging many to look at buying their first homes," Maxwell said.

A young couple earning the median wage can afford to buy a first quartile priced house with 21.6 per cent of their disposable income required to service an 80 per cent mortgage.

This is down from 21.9 per cent in December and down from a June 2007 high of 35.1 per cent.

The national median house price rose to $350,000 in February from $340,000 in January, but the first quartile house price was flat at $245,000.

Prices outside of central Auckland and Wellington are flat to falling.

The Roost Home Loan Affordability report measures affordability nationally and regionally for individual income earners and households, taking into account median house prices, interest rates and incomes.

The Roost Home Loan Affordability measure for all of New Zealand showed the proportion of a single median after tax income needed to service an 80 per cent mortgage on a median house to 51.7 per cent in early March after the Reserve Bank rate cut, improving from 54 per cent at the end of February and 52.7 per cent at the end of January.

Affordability improved in central Auckland, Hamilton, Rotorua and Kapiti Coast because of lower house prices, but worsened somewhat in West Auckland and South Auckland due to higher prices.

Queenstown reclaimed the mantle as the most expensive city in the country after a rise in its median house price.

Wanganui took the top spot as the most affordable city from Invercargill.

Affordability has been improving since December 2009 as house prices have flattened out and interest rates have fallen, the monthly measure calculated by interest.co.nz in association with Roost found.

Most home owners are still on fixed mortgages, but more new borrowers are choosing to float, given floating rates at around 5.75 per cent are cheaper than average longer term fixed rates at around 6.2 per cent.

The Home Loan Affordability reports are now using the floating rate as most new mortgages are now floating rather than fixed.

Home loan affordability hit its worst level of 83.4 per cent in March 2008 just after house prices peaked and 2 year mortgage rates were close to 10 per cent.

Affordability is difficult in Auckland, Wellington, Hamilton and Tauranga for those on a single median income, but homebuyers in smaller provincial cities will find home ownership much more affordable.

Households with two incomes are also in a stronger position, particularly those bidding for homes priced in the lower quartile.

Affordability for households with more than one income improved in January because of the fall in the median house price.

This measure of a 'standard typical household' found the proportion of after tax income needed to service the mortgage on a median house was to 35.4 per cent at the end of February from 35.7 per cent in December.

This measure assumes one median male income, half a median female income aged 30-35 and a 5 year old child that receives Working-for-Families benefits.

Any level over 40 per cent is considered unaffordable for a household, whereas any level closer to 30 per cent has coincided with increased buyer demand in the past.

The survey's measure of a 'standard first-home-buyer household' found the proportion of after tax income needed to service the mortgage on a first quartile home fell to 21.6 per cent in February from 21.9 per cent in December.

This measure assumes a first home buyer household includes a median male income and a median female income aged 25-29 with no children. Any level over 30 per cent is considered unaffordable in the longer term for such a household, while any level closer to 20 per cent is seen as attractive and coinciding with strong demand.

(Source NZ Herald)

19/03/11 - Japanese in NZ desperate to extend visas

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Japanese citizens in New Zealand are worried about returning home and are seeking ways to extend their stay here.

Immigration New Zealand says it will view each case "sympathetically" and use "common sense and empathy" in arriving at decisions to requests from people affected by the disaster.

Mika Sugawara, whose work permit is expiring soon, was booked on a flight last Tuesday to return to Japan, but did not go because the tsunami had wiped out nearly all of her home city of Sendai.

Now she is doing all she can, including enlisting the help of a local MP, to remain in New Zealand "for the sake of her children" because of radiation fears.

"My house is still standing, but everything else in town does not exist any more," said Ms Sugawara, a 47-year-old former psychotherapist and mother to 12-year-old Haruki and 9-year-old Ayane, who goes to Glendowie Primary School.

Her town, once home to nearly 20,000 people, is now just a muddy wasteland after the magnitude-9 earthquake and tsunami.

Friends at home are telling her they are struggling to get even essentials like food and water, and an unfolding nuclear crisis is causing radiation fears.

"My children are all I have to live for now, and there is no way I will take them back there knowing there is some kind of danger," she said.

Ms Sugawara has approached Labour MP Raymond Huo to write a letter explaining her plight to Immigration Minister Jonathan Coleman.

Yumi Nagai, whose work permit expires next week, says she would rather be a "safe overstayer" in New Zealand then "live in danger" in Japan. The 29-year-old preschool teacher comes from the seaside town of Rikuzentakata, which was also nearly wiped out by the tsunami.

She says many of her friends and relatives are without water, electricity, fuel or enough food, and is worried about radiation escaping into the atmosphere in the aftermath of several explosions at nearby nuclear plants.

"I was born in Japan, and there is where I want to live. But I think if I returned to Japan now, there is where I am going to die," Miss Nagai said.

Auckland Japan Society president Masa Sekikawa says there could be hundreds among the Japanese community in New Zealand who have been directly or indirectly affected by the tsunami.

"Some have lost family members and friends, others who know of friends who lost their loved ones. Everyone in the community is feeling the pain," Mr Sekikawa said.

"There is now a real fear of radiation and uncertainty about going home, and our society will support any Japanese national who feel it is safer to be in New Zealand in the mean time."

Acting Immigration New Zealand head Stephen Dunstan said the department had not received an influx of requests from Japanese nationals to stay here longer.

"We are reminding our staff of previous advice regarding requests for further visas from people who ordinarily reside in a country that has suffered a disaster," he said.

"In such circumstances we apply common sense and empathy."

(Source NZ Herald, Lincoln Tan)

17/03/11 - New Zealand – India ties strengthened with opening of Mumbai Consulate General

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New Zealand’s business, investment and tourism links with India will be strengthened by having a New Zealand Consulate General in Mumbai, says Immigration Minister Jonathan Coleman.

Dr Coleman, who officially opens the Mumbai office tomorrow (NZ time), says a Consulate General in India’s financial capital will help further develop business opportunities between New Zealand and India.

‘’The Consulate General with consular, trade, investment, tourism and visa functions will provide an enhanced service to growing business connections and the wider relationship between India and New Zealand,’’ Dr Coleman says.

‘’It is our first full Consulate General in India. It also symbolises the commitment of the New Zealand Government to deepening our existing warm and positive relationship with India.
‘’Trade between the two countries is continuing to increase and industries such export education and tourism can benefit from having closer connections with an Indian economy that has grown significantly over the past decade.’’

Trade between New Zealand and India is worth over NZ$1.2 billion a year and India is New Zealand’s eighth largest export market, up 16 places from three years ago when it was 24th. New Zealand is also looking to partner with India in key industries such as agricultural technology and the food supply chain, IT innovation, wood and green technologies.

The number of students from India has quadrupled in the past seven years with 9700 currently studying in New Zealand. India is New Zealand’s third largest source country for students behind China and South Korea in the $2 billion per annum export education industry.

The number of Indian holidaymakers visiting New Zealand has also tripled in the past 10 years with 14,100 touring here last year spending around $40 million.

‘’The Mumbai Consulate General is the first office in which we bring together all of our New Zealand Government agencies that previously had separate offices in Mumbai. We call it a “New Zealand Inc” approach to providing service to the Indian market – a one stop shop,’’ Dr Coleman says.

The Mumbai office houses New Zealand Trade and Enterprise, Tourism New Zealand and Immigration New Zealand.

(Source Beehive, J Coleman, Minister of Immigration)

17/03/11 - Review: Apple iPad 2

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SAN FRANCISCO - With the original iPad, Apple brought an attractive, easy-to-use tablet computer to the masses at a reasonable price - a feat numerous companies are trying to top.

With Friday's US release of the iPad 2, Apple is pulling further ahead, with improvements that make an already excellent tablet even more enticing. It goes to show that when it comes to tablets, Apple refuses to be bested.

The new iPad is skinnier, faster and slightly lighter. It comes with cameras for video chatting and snapping photos, while keeping the same prices, ranging from US$499 to $829 depending on the configuration.

Competitors such as Motorola and Samsung sell good tablets of their own, with many of the same features. Motorola's new Xoom even has a higher-resolution screen than the iPad. Still, nobody has been able to match the iPad's simplicity, innovation and style.

The iPad 2 looks much like the first iPad, though it has a sleeker, lighter body with a curved back. All this helps the tablet fit more naturally in my hands, and the modified shape makes it easier to hold for extended e-reading sessions, for example.

Among the most noticeable changes is the inclusion of cameras, one on the front and one on the back.

This is something I've been hankering for, as the iPad's crisp display, measuring 9.7 inches diagonally, seemed like the ideal canvas for video chat. The subsequent arrival of several tablets with front and rear cameras made it practically a necessity for iPad 2.

Fortunately, Apple thought so, too. Both cameras on the iPad 2 work with the company's FaceTime video chat application and the back camera shoots high-definition videos.

A friend I chatted with over FaceTime moved pretty smoothly on the iPad's screen, though the image could have been much sharper. With the front camera, my friend could see me. If I switched to the back camera, I could show him my surroundings.

You can take still photos, too, though I found this awkward given the tablet's size. The results were not fantastic, but self-portrait fans will find the front-facing camera useful for composing new profile photos for Facebook.

The new iPad has Apple's new dual-core A5 chip, which helped applications open more quickly than on the older iPad. The original never felt slow, but the faster I can start a new game of Plants vs. Zombies, the better.

Add to that a new version of Apple's iOS software. The new processor and the new iOS combined to improve web surfing, as I could load up pages noticeably faster over my home Wi-Fi network. As expected, videos loaded quickly and generally streamed flawlessly.

The new software allows you to share music and videos from your iTunes library on multiple Apple devices on the same Wi-Fi network. And it now lets you set the iPad's mute switch to function as a screen lock, which makes it much easier to prevent my Netflix movie from rotating mid-scene just because I've shifted my butt on the couch.

The updated iOS comes with iPad 2 and is available as a free download for the original iPad and the two most recent models of the iPhone and iPod Touch.

On Friday, Apple also rolled out iPad versions of its iMovie video-editing software and GarageBand software for recording and editing music. I tried GarageBand (US$5) and was wowed by how simple it was and how well it took advantage of the iPad's touch screen.

If you're musically inclined, you can pick up your guitar and adjust its sound through GarageBand's bevy of amplifiers and effects pedals. If you don't play an instrument (or feel lazy), you can swipe through a list of "smart" virtual instruments. A guitar with preset chords lets you strum by swiping the screen. You can arrange drums on a grid based on how noisy and complicated you want the beat to sound.

The coolest part is how sensitive the virtual instruments are. Start beating your fingers on a virtual drum kit, and you can hit the drums and cymbals harder or softer. You'll get different sounds if you hit the ride cymbal in different places, and you can even tap the rim of the snare instead of just hitting the drum itself.

It's quick and easy to record and edit songs, then save or email them to a friend (who will hopefully applaud your artistic endeavours).

When playing back my musical masterpiece and other content on the iPad 2 I did long for a second speaker - there is just one on its back. Fortunately, that lone speaker did sound quite crisp, even with the sound turned all the way up.

Like the first iPad, the iPad 2 is rated for up to 10 hours of battery life, and it performed like a champ. Playing a mix of videos streamed from YouTube over Wi-Fi and saved on the iPad itself, I got a bit more than 10 hours of entertainment before it died.

In the United States, you can buy versions that work with either AT&T's or Verizon Wireless' cellular network, rather than just AT&T before. Unfortunately, it will only connect to these carriers' older 3G networks. Verizon's 4G network is already live, and AT&T plans to launch its 4G network in the summer. (In the meantime, AT&T is calling an upgraded version of its 3G network "4G.") The Xoom gets points here because it will be possible to upgrade it to use Verizon 4G.

The cheapest iPad connects only through Wi-Fi, however. You can also get it in black or white - before, your only option was black.

Without question, the iPad 2 is a great tablet. Still, this doesn't mean the first iPad is ready for the trash can. It's still a stellar gadget, and now it's cheaper (while supplies last) with the arrival of a successor.

Should you feel the urge to have the latest and greatest, however, go for it. Chances are, it will be the best tablet in town - at least until the arrival of the iPad 3.

After its US launch, the iPad 2 goes on sale March 25 in 26 other markets, including New Zealand.

(Source NZ Herald, Rachel Metz, 15/03/2011)