Letter No.84
13 August, 1998

29 July 1998

The Ministry of Health issues a report titled Our Children's Health pointing out large disparities between Maori and non-Maori children's health.

30 July 1998

ACC Minister Murray McCully says that while ACC is opening up for competition, it does not exempt businesses or the self employed from having to buy insurance for their employees or themselves. All employers will be required to insure their employees against accidents.

Students from all the Wellington tertiary institutions demonstrate against cuts in education spending. About 300 students march through central Wellington, meeting Associate Education Minister Brian Donnelly on the steps of parliament. The action is in protest at cuts which will raise student fees and the recent rule changes which will make many students ineligible for the emergency unemployment benefit.

The Employers Federation criticises Minister of Labour Max Bradford's turnaround on changes to labour laws.

31 July 1998

The Education Ministry issues its quarterly report concerning the suspension of school children for misbehavior. It shows that Maori students are being suspended from schools at twice the rate as non-Maori.

The Health Funding Authority orders hospitals to notify up to 65,000 NZ'ers that the operations they have been expecting from the public health system will not take place. The new "points" system that has replaced waiting lists means many operable health conditions will no longer be treated for free through the public health system.

Thousands of automotive workers occupy Hyundai Motor Co factories in Korea and bring Hyundai to a standstill, after the announcement of the sacking of 2,700 workers.

2 August 1998

Although the figures are not yet available, the National Bank concedes its takeover of Countrywide Bank is destined to cost jobs.

3 August 1998

Ministry of Maori Affairs Tau Henare calls for an overhaul of social service funding for Maori. Referring to the recently published Closing the Gaps report, Henare says that mainstreaming the provision of housing, health and education services is failing Maori. He calls for a return to the "targeted" assistance to Maori organisations working in the areas of employment, education, health and housing.

Wellington's Capital Coast Health's unprecedented draft business plan is made public. In order to operate within their budgets the hospitals simply plan to eliminate several major service areas. The business plan identifies general medicine, respiratory medicine and mental health as non-core services that the hospitals can not afford to run on the money allocated.

The demand for university graduates in industry has dropped significantly. A survey by PA Consulting Group finds a 15% decrease in graduate recruitment to July this year. PA's human resource team leader Kevin McBride says that some companies are reluctant to commit to new staff in the current economic climate.

4 August 1998

A High Court decision excludes urban Maori groups from having any claim on Treaty of Waitangi fishing assets.

The nation's newest foodbank opens its door. The Hamilton Combined Christian Foodbank is a trust supported by the city's five christian social service agencies. The trust's chairperson Nancy Caiger says the consolidation of the different agencies means that they no longer had to compete for donations. A trust spokesperson Michael Redman says the foodbank centre would provide key statistics to government about poverty in Hamilton. Redman: "Perhaps this will become a catalyst for changes to social policies which could hopefully result in people becoming less reliant on foodbanks."

The Education Review Office publishes a report called The Senior Secondary Student. It says the number of students staying at high school through the seventh form has doubled in the last ten years. To accommodate the diversity of these students, schools must offer a wider range of courses. The report also says that, along with academic programmes, schools need to offer a menu of courses that are career oriented and/or linked with tertiary institutions.

5 August 1998

Statistics NZ releases figures showing unemployment has risen to 7.7%.

Income Support Service's benefit-crime teams detect 61% more overpayments this year than last year. National benefit-crime manager Joan McQuay says the increase is not because more people are ripping off the system but because her team has become more adept at detecting overpayments. About one quarter of the benefit-crime team's investigations result in "substantiated" allegations. These overpayments amounted to 2.4% of the country's benefit bill last year.

Bancorp economist Stuart Marshall writes that rising unemployment is good because it showed the labour market was responsive to the economy.

6 August 1998

About 300 office workers at forestry company Carter Holt Harvey will lose their jobs over the next nine months. CHH is the second largest listed company in NZ. The company is struggling primarily from depleted log demand from Asia. It has recently closed businesses in Hastings and Palmerston North and chief executive John Faraci says the company has plans to close further plants.

The Health Funding Authority is criticized for under spending its mental health budget for the second year in a row. At the same time, mental health officials estimate that half of adults and most young people are currently unable to access psychiatric services when they need them.

Labour list MP Joe Hawke is outraged at Stuart Marshall's comments about unemployment. The MP invites Marshal to visit marae in Northland and Hawkes Bay where unemployment is prevalent.

7 August 1998

The "Bring Forth Our Nation's Promise" event begins in the Auckland Town Hall. The series of meetings hope to develop a vision for NZ and create networks between the many people who have developed progressive and innovative community or social initiatives. American psychologist and motivational expert Jean Houston is facilitating the seminars and workshops. Houston will also be leading events in Wellington, Christchurch and Taupo.

8 August 1998

An English regional development "success" comes unstuck. Enticed by a $NZ2 billion British government subsidy, German industrial giant Seimens set up a semi-conductor factory in the northeast of England just last year. Seimens announced today the plant is closing. The company says that cut-throat competition from Korea, trying to export its way out of recession, has undermined the world semi-conductor market.

9 August 1998

Labour leader Helen Clark speaks as an invited guest at the Alliance Party's annual conference, signaling closer co-operation between the two centre-left parties, and a possible coalition in future government.

The Combined Beneficiaries Union is disappointed with Te Whanau o Waipareira Trust's John Tamihere's embrace of the Community Wage Scheme. CBU president Helen Capel says she believes Tamihere does not understand the wider implications of the scheme.

10 August 1998

A student sit-in at Massey University's registry offices enters its fourth day. Students are protesting the University Council's decision to raise fees next years by about $300. Student Association president Peter Hobson says the students are asking the Council to reconvene, receive submissions from students and revisit their decision to raise fees.

11 August 1998

Busloads of Carter Holt Harvey workers travel to Auckland from the Kinleith mill near Tokoroa to attend the CHH annual meeting. The workers are concerned that the company has not met its voluntary redundancy targets and that it may take more direct action to reduce worker numbers.

The mothballed Toyota car assembly plant in Thames is to get a new lease of life. Beginning early next year the plant will begin overhauling used Toyotas. It is a bit early for details, but plant manager Chris Leavy says that about 70 staff will be required.

The Australian Morgan and Banks job index asked Australian employers what impact they think the rise of the One Nation Party would have on employment prospects. Results: 31% of the employers replied it would have a negative effect, and only 2.2% said it would have a positive effect.