23/01/11 - Cash jobs in sights

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The Inland Revenue Department has made no secret of its efforts to crack down on the "hidden economy".

In its last annual compliance focus report, it said cash jobs and other tactics to suppress income were again in the firing line.

Group manager assurance Martin Scott said the hospitality trade had been a focus for the past two years. "We have identified cases where reported sales and income are well below what we would expect.

"We use information from a range of sources, such as the analysis of sales levels and margins, to establish businesses most likely to be non-compliant. We provide them with an opportunity, where appropriate, to explain any anomalies or provide evidence for their position that may result from legitimate reasons."

In response to the claim that immigration officials had been present on one of its visits, Scott said IRD did not involve other government agencies in such work but in exceptional circumstances where there were security concerns IRD staff might be accompanied by police.

(Source NZ Herald)

21/01/11 - Christchurch centre stage for IPC Athletics World Champs

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Christchurch will take centre stage tomorrow when athletes from around the world go for gold on the opening day of the IPC Athletics World Championships.

More than 1,000 athletes from 70 countries have arrived in the Garden City to attend the competition, which is being broadcast to thousands of people around the world from 21-30 January on online TV channel www.paralympicsport.tv.

The event, being held outside of Europe for the first time, takes place at QEII Stadium, and is one of the last major gatherings of international athletes before the London 2012 Paralympic Games

Tourism New Zealand General Manager Brand and International PR Catherine Bates said the sporting spectacle would help raise international awareness of New Zealand as an accessible and memorable location with modern infrastructure.

"These championships will be widely covered by the international media and that will go a long way towards raising awareness of New Zealand as an accessible destination committed to catering for travellers of all ages and physical abilities."

Tourism New Zealand was supporting the event by providing media packs and B-roll footage of the Canterbury region to attending media. Promotional footage of Canterbury and New Zealand would also be provided to SKY TV for inclusion in broadcasts to 13 different countries, including key tourism markets like Australia and UK, she said.

The Ministry of Economic Development has also supported the event, providing $400,000 in support last year through its Major Event's Development Fund.

Competitors at the 2011 championships include big names of the Paralympics world, such as South African "blade runner" Oscar Pistorius, Swiss "silver bullet" Marcel Hug and American Paralympic Games gold medal winners Jessica Galli and April Holmes.

For more information about the IPC Athletics World Championships, visit http://www.ipcathleticsworldchamps.com

(Source NZ Tourism)

20/01/11 - Inflation jumps after GST hike

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Inflation jumped to 4 per cent in 2010 on the back of the recent rise in GST and increased fuel prices.

According to figures from Statistics New Zealand released this morning, the consumer price index (CPI) rose 2.3 per cent in the final three months of last year, after the government raised GST from 12.5 per cent to 15 per cent.

It was the largest quarterly increase in inflation since September 1989, when the government raised GST from 10 per cent to 12.5 per cent. Statistics New Zealand said the increase in GST contributed about 2 per cent to the CPI.

While the 4 per cent increase in annual inflation in 2010 was above the 1-3 per cent target set by the Reserve Bank, it was widely predicted by the market, and economists do not expect it to prompt an increase in the official cash rate later this month.

ANZ economist Mark Smith said that excluding the increase in GST and other ''one off'' government charges such as increase in fuel excise tax, underlying CPI inflation in 2010 would have been around 1.6 per cent, well within the Reserve Bank's inflation target.

ASB said the figure was slight below its predictions and suggested inflationary pressures ''are contained for now".

As well as the GST increase, inflation was boosted by higher transport costs, up 4.3 per cent in the final three months of the year, and 6.6 per cent in all of 2010, mainly driven by the rise in the pump price of petrol.

Of the 11 groups used to measure the CPI, only clothing and footwear, down 0.02 per cent, dropped during the quarter.

(Source The Press)

21/01/11 - Read-aloud skill a boost for migrant

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Chinese-born Barry Zhang had difficulty speaking to Kiwis when he first moved to New Zealand.

He doesn't have that problem now thanks to a reading aloud programme he attended at New Lynn library.

The Repeat Read Aloud programme is being offered again this year at New Lynn, Ranui, Waitakere Central and Massey libraries. It runs for six weeks over the school term with the next one starting in early February.

Mr Zhang participated in the free programme last year.

"Writing and reading was okay but speaking was difficult," he says.

He now feels far more confident speaking English.

New Lynn programme co-ordinator Wendy Wilton says the initiative is for adults wanting to improve their English skills.

They are always looking for more volunteers to help run the project.

This requires around two to four hours a week for the six weeks.

"We can never have enough volunteers," she says.

"You don't have to be a teacher or a tutor to help out."

Mrs Wilton says the programme is not based on education but about helping new immigrants integrate into New Zealand society.

It involves reading simple books aloud, having conversations and playing word games like charades.

Call 817-6076 for more information.

(Source Western Leader)

17/01/11 - Economists expect inflation spike

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Economists expect last year's rise in GST and escalating petrol prices to have contributed to a spike in inflation in recent months. The Consumer Price Index, which is a gauge of inflation, is released on Thursday morning.

According to a Reuters poll, most economists expect the index to have jumped 2.3% in the three months to December, compared with the previous quarter.

That would take the annual rate of inflation to 4%, compared to the seven-year low of 1.5% recorded in the year to September.

Westpac's chief economist, Brendan O'Donovan, says climbing petrol prices and GST are to blame.

Mr O'Donovan says the Reserve Bank is unlikely to be worried by an annual inflation rate of 4% despite it being outside its 1-3% target band, and is not likely to raise rates until September or later.

He says inflation could peak at 5% later this year, especially if high commodity prices and bad weather push up food prices. The Goods and Services Tax rose from 12.5% to 15% in October.

(Source Radio New Zealand)

17/01/11 - Chinese keen to bring their riches to NZ

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New Zealand has a strong appeal for rich Chinese people who want to move here as investor migrants.

Two have been granted conditional residencies after investing more than $10 million each in "approved investments" and 43 others - more than from any other country - are waiting to be granted approval or have received approval in principle to transfer more than $1.5 million each.

Acting head of Immigration Jan Clark says the department has also given approval to a third Chinese investor to transfer money.

Immigration Minister Jonathan Coleman said the business migration scheme had attracted $416 million of potential investment capital to New Zealand.

So far, more than $102 million has been transferred and invested here and $133 million has been approved for funds transfer.

Applications worth another $181 million are being processed.

"We developed a policy package that makes New Zealand very attractive to business migrants, and they're staking their confidence in New Zealand at a time of difficult international financial conditions," Dr Coleman said.

When the scheme was introduced, many would-be investors from China claimed Immigration's recognition of money transfers only through the banking system was blocking them from investing in New Zealand because of China's strict money transfer rules.

A licensed immigration adviser said the two successful investor applicants had transferred their money through Hong Kong to get around the rules.

"Their nominated funds are in Hong Kong, and it is easy enough to use the Hong Kong banking system to transfer the money here," said the adviser, who did not want to be named.

He was advising his other Chinese clients to use similar means to move their money if they wanted to apply for New Zealand residency.

"It's a bit of a hassle and takes longer, it's a pathway they can use," he said.

"For example, the Chinese can buy properties in Hong Kong, liquidate the funds and then transfer the money over."

However, the New Zealand Association for Migration and Investment advocacy and policy chairman Jimmy Lee said New Zealand's business migration policy still discriminated against the Chinese.

The association has made a written submission to the Department of Labour, which oversees Immigration, asking it to review its business migration policies.

"From the Immigration figures, we know the Chinese hold the key to how successful the policy will be," Mr Lee said.

"There should be a total review of the business migration policies if the Government is serious about wanting more investor migrants."

Immigration adviser Ming Tiang, who runs Chiwi Immigration Services, says he has at least 10 Chinese clients, with between $1.5 million and $10 million to invest, who could not meet Immigration's "bank transfer only" requirement.

INVESTOR 1
($10 million+ investors)

Number of applications approved by country

2 - China, US

1 - Finland, UK, Singapore, South Korea

INVESTOR 2 
($1.5 million+ investors)

9 - US

2 - UK

1 - Japan, Singapore, South Africa

APPLICANTS

Approved in principle/under process (top three countries)

43 - China

35 - UK

19 - US

Source: Immigration New Zealand

(Source NZ Herald, Lincoln Tan)

15/01/11 - Migrant party faces an uphill struggle

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It has taken only a relatively short time for the emergence of a new political party that will court the vote of Chinese migrants.

The catalyst for the creation of the fledgling New Citizen Party is the March 5 byelection in Botany, where migrants make up more than half the voters.

The party's founders have forsaken the option of promoting the Chinese migrant voice through parliamentary representation in one of the mainstream parties.

The poll has been called because a Chinese migrant who took that course, former Cabinet minister and National Party MP Pansy Wong, has resigned. Another migrant, Raymond Huo, is a Labour Party MP.

That is the more traditional alternative for minorities. Maori, for example, were for a long time content to be aligned with Labour.

About 30 years ago, Matiu Rata's attempt to get a Maori party, Mana Motuhake, into Parliament failed. It took grievances over one issue, the foreshore and seabed, to give birth to the Maori Party.

Success for the New Citizen Party may depend on its identifying a similar discontent among migrants, most of whom seem happy to support National.

Many may also feel uncomfortable about the new party's business orientation and the involvement of Beijing-based Jack Chen.

Its founders talk of accommodations with Maori tribes for party votes at the next general election, and gaining support outside the Asian community.

First, however, they face an uphill battle to establish credibility by attracting the migrant vote in Botany.

(Source NZ Herald)

12/01/11 - Confidence up, economy improves

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Confidence among businesses appeared to improve in the three months ended December, both in the businesses' own trading conditions and in the general state of the economy.

The New Zealand Institute of Economic Research's (NZIER) quarterly survey of business also showed the economy rebounded in the December quarter after contracting in September.

Trading activity for firms improved from -15% to -1% on a seasonally adjusted basis.

NZIER principal economist Shamubeel Eaqub said the rebound was patchy, and was concentrated in large firms and the upper North Island.

Activity fell sharply in Canterbury, reflecting the post-earthquake disruption.

Despite that, most sectors experienced better conditions in December.

There was a large rebound in retail sales.

But as most of the survey responses were received in the first half of December, they would not reflect the lacklustre retail environment closer to Christmas, he said.

"The economy rebounded from a weak September quarter, avoiding a double-dip recession. The recovery remains shallow and slow compared to previous cycles."

A return to growth had brightened the mood of business, Mr Eaqub said.

Seasonally adjusted business confidence rose from -8% to 3% and the confidence was slowly filtering through to new hiring and investment.

However, that needed to accelerate to drive a sustainable recovery.

Continued deleveraging by households, restrained government spending and a soft housing market would influence the medium-term outlook, he said.

ASB economist Christine Leung said it was encouraging that the improvement in activity was broad-based.

In particular, manufacturing reported a rebound in activity on the back of improvement in both domestic and export sales.

"This is positive for the economic recovery, given manufacturing is a key sector of the New Zealand economy, and activity in this sector was one key area of downside surprise in the recent third-quarter GDP report."

With historically low inventory levels, Ms Leung expected a modest improvement in manufacturing output in coming quarters. Some businesses were still intending to expand their workforce.

As a result, businesses were finding it increasingly difficult to find skilled labour.

That was expected to flow through to emerging wage pressures, albeit from a subdued level, in the coming year.

Businesses reported easing cost pressures and fewer businesses intended to raise prices.

Those measures suggested inflation pressures were contained for now, Ms Leung said.

With pricing intentions falling more than costs expectations, it appeared the margins of businesses were still squeezed.

The Reserve Bank would be encouraged by the survey results, as they indicated a broad-based improvement across sectors, she said.

In addition, with inflation pressures looking contained, there was little urgency to raise the official cash rate.

The central bank indicated in December it wanted to be more confident the recovery was "firmly under way" and inflation pressures were lifting before it started to normalise monetary policy.

ASB expected the June meeting would be the earliest "live" meeting for the bank to contemplate resuming the reduction of monetary policy stimulus, Ms Leung said.

(Source Dene MacKenzie, Otago Daily Times)

11/01/11 - Another recession for NZ still a strong possibility – economist

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A rebound in business activity alongside strong building approvals data is not enough for TD Securities to change its mind about New Zealand’s immediate economic future.

“We have been flagging the notion of a triple dip recession for some time, with a necessary and sufficient condition that Sept qtr GDP contracts.  Indeed GDP fell -0.4%, very close to our below-consensus forecast,” TD Securities head of Asia Pacific Research Annette Beacher said.

"On our preliminary calculations, [the] December quarter isn’t looking much healthier, outside of the Canterbury reconstruction effort, hence another 'recession' for New Zealand remains a strong possibility."

Nevertheless, she said, this morning two pieces of “good news” were released, with a rebound in activity reported for the December quarter by New Zealand businesses in NZIER’s Quarterly Survey of Business Opinion and a “welcome rebound” in building approvals for November.

“November building approvals rose a healthy 8.8%, skewed entirely towards apartments (increasing threefold to +200 approvals).  While any sort of building activity is welcome news for an economy that is flat-lining at best, building approvals have averaged 1300/mth for the last year now with no real discernable upward trend,” Ms Beacher said.

She added that her view remains that the Reserve Bank can hold official interest rates steady at 3% until July and called for RBNZ governor Alan Bollard to “just say 'monetary policy is appropriate' rather than leave the tightening bias on the table, no matter how watered down.“

The RBNZ will next review the official cash rate on January 27.

(Source National Business Review)

09/01/11 - Tourism New Zealand unveils '100% Pure You'

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Tourism New Zealand's long-running 100% Pure New Zealand marketing message is evolving with a new campaign being unveiled today that puts visitors' unique experiences at the heart of the message by adding "You" to '100% Pure'.

Chief Executive Kevin Bowler said the evolution would help take the highly successful 100% Pure New Zealand marketing message to the next level.

Research suggested New Zealand could further increase its appeal as a holiday destination by personalising its marketing message and focusing on more than stunning landscapes and awesome scenery, he said.

"We have identified people around the world already considering travelling to New Zealand who have the financial means to make the trip. The addition of 'You' to the successful 100% Pure New Zealand advertising message is a logical next step that will benefit New Zealand's tourism industry by highlighting the many individual experiences on offer."

The campaign, debuting in Australia today, includes television commercials, online banner ads and a new '100% Pure You' tagline that, over time, will be used for all Tourism New Zealand advertising globally. It will be rolled out in New Zealand's major North American, European and Asian markets by the end of February.

Tourism New Zealand General Manager Marketing Communications Justin Watson said the new campaign would provide a better platform to bring to life the diverse tourism experiences available in New Zealand.

"The new global campaign will help us take New Zealand to the world in a way that better connects with our target audience. Authentic and special experiences will become the major draw card, while the beautiful scenery and environment will be a vital part of the story as the backdrop."

"We have stayed in close contact with New Zealand regional tourism operators and industry during the development of the '100% Pure You' message and the feedback we've received is that this new campaign is sufficiently versatile to effectively promote many aspects of the New Zealand experience."

100% Pure New Zealand has been used to promote New Zealand as a tourism destination since 1999. In November last year, New Zealand was ranked the third strongest country brand in the world, up one place from the previous year and ahead of the USA, by FutureBrand's Country Brand Index.

About the Australian campaign

The 100% Pure You campaign launched in Australia today includes television commercials which will be seen in the core markets of New South Wales, Queensland and Victoria in both the metropolitan and regional areas, supported by digital display advertising.

The campaign showcases the personal experiences of a young woman jet boating, a middle-aged father taking his children tramping and a young woman horse riding. They focus on the 'feeling' and benefit gained from the uniquely New Zealand experience. The emotion and experience is captured by the proposition of 100% Pure You and what that means for the individual.

The advertisements coincide with an Air New Zealand promotion from Australia to New Zealand.

(Source Tourism New Zealand)