Community and Voluntary Sector Minister Jo Goodhew today announced the recipients of the 2012 Winston Churchill Memorial Trust Fellowships.

Fellows are granted up to 80 per cent of travel costs and can spend between three weeks and three months overseas. The average value of the grants awarded is $5000, and the Trust will provide a total of $75,000 to 15 people.

“This year’s Fellows will learn more about other people and cultures across a wide range of topics such as community welfare and health, disaster preparedness and issues relating to history, commerce, the arts and the environment,” says Mrs Goodhew.

“They will bring back new insights and understanding that will enrich their communities, and ultimately, New Zealand.”

New Zealand’s Winston Churchill Memorial Trust was formed in 1965 with funds from both the government and the public. Since then, net income earned from investments has been used to fund up to 20 fellowships each year.

For a full list of the 2012 Winston Churchill Memorial Trust Fellows, and more information on the Trust, visit www.communitymatters.govt.nz.

The number of people on benefits in New Zealand remained relatively steady over the last month says Social Development Minister Paula Bennett.

“Normally you would see a huge spike in benefits over January, but all benefits rose by just 100 to 351,032 in the last month,” says Ms Bennett.

This is the smallest December to January increase since 2008.

“In the last month more than 2,000 Maori went off welfare into work and more than 2,000 young people did the same,” says Ms Bennett.

There were 62,122 people on Unemployment Benefits in January 2012.

While that is up from 59,964 on the previous month, there were also more than 4,000 people who went off this benefit into work in January.

“Predictions that Unemployment Benefits would rise to about 100,000 post-recession have never eventuated, but clearly we still have a way to go.”

Every month thousands of new vacancies come into Work and Income.

A new advertising campaign that hits television screens on Sunday highlights new consequences for people that refuse to pay fines and reparation, Courts Minister Chester Borrows says.

The 15-second television commercial is part of the Ministry of Justice’s “Pay your fines, or pay the price” campaign and is timed to coincide with the first provisions of the Courts and Criminal Matters Bill coming into force on February 13.

“The message in the ad is clear - unpaid fines may stop you from getting the things you want on credit,” Minister Borrows said.

The message refers to a provision in the bill that allows the Ministry of Justice to release the amount of a person’s overdue penalties to approved credit reporting agencies, and for credit reporting agencies to provide contact details of debtors to the Ministry to use to enforce payment.

Minister Borrows stressed that the bill was targeting people who had no intention of paying up. “We’ve made huge strides in recent years in collecting fines and reparation, but too many offenders think they can avoid paying their fines or making good on reparation to victims of their crimes,” he said.

“It’s critical to the credibility of the justice system that monetary penalties are effective sanctions, so we’re sending a clear message that there will be repercussions for those who don’t honour their responsibilities.

“People who owe fines and reparation but have talked to the Ministry to make sustainable arrangements for repayment have nothing to be concerned about.”

The Courts and Criminal Matters Bill amends 20 statutes and is the most comprehensive review of legislation governing the enforcement of fines in more than a decade. Other measures will come into force next year, including the ability to suspend driver’s licences of people with unpaid traffic-related fines.

The bill also makes it easier for people or firms who are owed money to obtain attachment orders from the courts allowing mandatory deductions from the wages or benefit payments of their debtors.

Courts will also soon be able to re-sentence an offender to prison or home detention if the reparation they have been ordered to pay proves to be unenforceable or unaffordable, provided these sentences were available at the time of the original sentencing.

Prime Minister John Key today confirmed New Zealand was on track to doubling its two-way trade with China to $20 billion by 2015 at the launch of the NZ Inc China Strategy at the Cloud in Auckland.

"We have a strong relationship with China and have seen good growth in trade over the past few years. The launch of the strategy today will help further strengthen that relationship," Mr Key says.

"The goal of doubling two-way trade from $10 billion to $20 billion by 2015 was agreed when I visited Chinese Premier Wen Jiabao in 2010.

"We are on track to meet that goal. Bilateral trade in the year to last September was up 22 per cent on the year before, largely helped by the Free Trade Agreement that came into force in late 2008," Mr Key says.

New Zealand was the first, and is still the only Western economy, that has a free trade agreement in place with China.

Mr Key says the NZ Inc China Strategy launched today sets out ambitious medium term goals and provides a clear direction for the whole of government effort over a five year period.

"It is the second centralised strategy to be launched following India last October. In addition to India and China, other strategies under development are the US, Australia, South East Asia, Middle East, and the European Union," Mr Key says.

"Trade with China is one of the success stories of the New Zealand export sector over the past decade or so. China is also New Zealand’s largest source of foreign students, and our fourth biggest tourist market and we plan to develop these areas further."

The strength of the relationship with China is underpinned by the Chinese community in New Zealand, which numbers more than 147,000 and is growing.

Mr Key says it is fitting the China Strategy is being launched at the beginning of the auspicious Year of the Dragon, and also the year marking the 40th anniversary of New Zealand’s diplomatic relations with China.

"There are good reasons for a strategy. China is the world's second largest economy and is still growing relatively fast. It is also a major influencer in the Asia Pacific region."

The strategy brings government agencies together to work collectively. It has a strong trade and economic focus but also looks at building political and diplomatic ties. The Strategy outlines why New Zealand businesses should be looking at China and gives them some of the information they need to do business there.

The strategy includes a set of five goals that specify action such as increasing trade and developing more high-quality science and technology collaborations.

Further information on the strategy can be found online at: www.nzincstrategy.mfat.govt.nz

Police Minister Anne Tolley has turned the sod for a new police station at Rolleston, near Christchurch.

The total cost of the project is $1.6 million, and is set to be completed by September.

“Our police require the best tools for the job to keep communities safe,” says Mrs Tolley.

“The new Rolleston police station will incorporate modern design and technology, and is located much closer to the local community than the existing station.

“I look forward to returning to Rolleston later in the year and seeing for myself the difference it makes for staff and the community.

“And as we look to the future I want to thank Canterbury Police for their continuing hard work and dedication in difficult times.

“The respect which the public has for their efforts is well-deserved.”

Transport Minister Gerry Brownlee is calling for people to take care and drive safely this long weekend.

"Many New Zealanders will want to take advantage of this long weekend and head away. It's important to drive to the conditions, check vehicles before setting off, use patience, and avoid taking risks," says Mr Brownlee.

“Police will be lowering speed tolerances for the month, sending a very clear message that unsafe speeds are not acceptable. I urge people to heed this message.

“2011 was a record low road toll, but we had a tragic spate of crashes over the Christmas holiday period. This January has also been marred by a number of serious crashes.”

Provisional statistics show 35 people were killed on the road in January this year. Last year there were 28 deaths over the same period.

“It’s also disturbing to see that failing to wear seatbelts has been a factor in recent crashes. Buckling up is a simple step we can all take – one that can mean the difference between life and death.

“This year the government will be continuing to work through the actions of its Safer Journeys road safety strategy, but if we are going to continue to reduce the number of deaths and injuries on our roads, we’ll all need to do our bit for road safety. Drive safe and have a happy holiday.”

The recovery of justice services in Christchurch is making excellent progress, Minister for Courts Chester Borrows said during a visit to the city today.

Minister Borrows visited seven Ministry of Justice facilities, including the successful District Court operation at Ngā Hau e Whā marae in the eastern suburbs, and the site of a new central city courthouse.

The new courthouse currently being constructed on Cambridge Terrace will be used for a range of criminal and civil hearings, with a focus on High Court and District Court jury trials. The first court hearings from the new courthouse will begin in mid-March.

“Returning services to the central city is a priority for the Ministry of Justice,” said Mr Borrows.

“The new courthouse is a symbol of the Ministry’s continuing commitment to investing in the city of Christchurch, and I am pleased that it is the Courts which are leading the return of government agencies back to the CBD and I hope this gives confidence to the people of Canterbury.”

A number of modular buildings are being used to construct the purpose-designed building. It is anticipated that court services will operate from the new facility for around two years.

Mr Borrows also visited the District Court operation, which was established at Ngā Hau e Whā marae at Aranui in mid-April last year. The innovation of basing court operations within the community was borne out of necessity, but has had a lasting positive impact, said the Minister.

“The experience of holding hearings at Ngā Hau e Whā has created a number of unanticipated benefits. One of these is having government and non-government services working from the single location, but locating court hearings in truly community venues reinforces that the responsibility to see justice done rests with us all.

“Also, the court is easy to access in post-earthquake Christchurch, and is in the heart of a community hit hardest by the earthquake,” he said.

Mr Borrows also met with staff working from the Ministry’s registry facility in Sockburn; Coronial Services and Legal Services staff based in Burnside; and Māori Land Court and District Court staff working from the Aoraki House/Māori Land Court building in the city.

Court services currently operate from three permanent courthouses in the central city as well as Ngā Hau e Whā marae. More details are available from: www.justice.govt.nz/media/christchurch-earthquake-response-2011
 

Conservation Minister Kate Wilkinson tomorrow launched the game bird habitat stamp and art prints for 2012 to mark World Wetlands Day, held internationally on February 2 each year.

New Zealand’s game bird habitat stamps initiative is based on the successful American model where the stamps are used to endorse hunting licences with funds raised going towards waterfowl conservation projects.

Ms Wilkinson says Fish & Game NZ is one of New Zealand’s lead agencies for World Wetland Days and today she paid tribute to the organisation and hunters for the contribution they make to wetland protection.

“In most areas Fish & Game are one of the biggest players in the advocacy, protection and enhancement of wetland habitat,” she says. “For many years it has been recognised that the key to sustainable management and harvest of game birds is good habitat – look after the habitat and the birds and fish will look after themselves.”

While New Zealand conservation efforts over the last two or three decades have centred on saving rare indigenous wildlife, in recent years public sentiment has shifted towards the role wetlands and water generally play in the wider environment and how threatened these important ecosystems have become.

“As a Cantabrian I’m well aware of the importance of clean natural waterways and the role wetlands play in reducing floods, recharging groundwater, purifying water or augmenting flows,” says Ms Wilkinson.

“Wetlands also support the greatest concentrations of bird life of any New Zealand habitat and support far more species than a comparable forest. Numerous threatened species – such as the Australasian bittern, brown teal, fernbird, marsh crake, white heron, and native fish – rely on New Zealand’s remnant wetlands for their survival.”

While wetlands are always in the natural process of evolving towards dry land, introduction of invasive plants and land development has resulted in New Zealand losing some 90% of its natural wetland cover.

“For decades now, Fish & Game NZ and hunters have been working in good faith with landowners to claw back what’s been lost – the conservation gains they’ve achieved are highly commendable.”

NOTE:

This year’s artwork features the bobwhite quail, a species introduced to New Zealand in the late 1800s but evident only in small numbers today. The stamp is based on artwork by Janet Marshall, a well-known New Zealand wildlife artist. As well as the stamp there is a limited edition print of the artwork and two different first day covers, being released today to celebrate this World Wetland Day. There is also a miniature sheet of stamps available. Buying any one of these is a very practical way of giving direct support to habitat protection.

The bobwhite quail on the habitat stamp for 2012 is the last species on the list of Wildlife Act 1953 Schedule 1 Wildlife declared to be game to feature on the stamp. In 2013 the Australian Bittern (although not a game bird) will feature on the stamp to reflect significant wetland wildlife and overall wetland health.

New Zealand joined what is known as the Ramsar Convention on Wetlands of International Importance in 1976. Today, World Wetland Day is celebrated on 2nd February around the globe as one of the major ways Ramsar helps promotes wetland protection throughout the world. The Ramsar World Wetlands Day theme for 2012 is Wetlands and Tourism.

Related document:

Game_Bird_Habitat_Collection_artwork.pdf (pdf 4.09 MB)

Auckland litigator Murray Ashley Gilbert SC has been appointed a Judge of the High Court, Attorney-General Christopher Finlayson announced today.

Justice Gilbert graduated with an LLB from Auckland University in 1977. In 1976 he joined Kensington Swan in Auckland as a law clerk, later becoming a partner in 1985. In 1996 he became a partner with Chapman Tripp. He left to form the partnership Gilbert Walker with Campbell Walker in 2004.

In 2008 Justice Gilbert was appointed Senior Counsel.

Justice Gilbert is a Trustee and Board Member of the National Maritime Museum and General Committee Member of the Royal Akarana Yacht Club.

The new Judge will sit in Auckland.

A new programme that aims to generate innovative solutions to reduce the number and severity of falls in the home has been launched today by ACC Minister Judith Collins.

The programme, called Idea Nation, features a series of brainstorming forums and a competition encouraging all New Zealanders to submit their falls-prevention ideas and help ACC solve this national problem.

“On the face of it, a fall might not sound too serious but every year thousands of New Zealanders from all walks of life are hurt by a fall at home," said Ms Collins.

Falls cost the country an estimated $1.8 billion in annual social and economic costs. Every year more than 100,000 working age people are injured as a result of a fall and more than 10,000 of them are so seriously injured that they are unable to work.

“These falls are happening to people at the most productive time of their lives - when they run households, support families and hold senior positions at work.

“Falls at home are causing significant disruption to the lives of New Zealanders and can lead to lost productivity for thousands of businesses. This causes lasting damage to New Zealand families, communities and our economy.

“No one in the world has really been able to come up with the solution for reducing falls in the home among working age people. Idea Nation is calling upon all New Zealanders to apply their number eight wire thinking and submit their ideas for preventing falls.

“I’m confident that by using Kiwi ingenuity and working together we can make New Zealand homes safer for us all,” Ms Collins said.

For more information about Idea Nation and how to get involved, visit www.acc.co.nz/ideanation. Competition entries open from 12 March 2012 and there are prizes for the winners of each of the following categories: schools, universities, business and general public.
 

Courts Minister Chester Borrows congratulated Ministry of Justice staff today, following the successful launch of a regional way of working across district courts in New Zealand’s most populous region.

From today, services offered at each of the six district courts in the region – North Shore, Waitakere, Auckland, Manukau, Pukekohe and Papakura – will be managed regionally to ensure better service delivery at the local level.

The shift to the new way of working follows extensive consultation with staff, the judiciary and court users, and has been rolled out against a backdrop of business-as-usual activities at the affected courts.

"Auckland is by far our busiest region so it’s been a great effort by court staff to get ready to go live today with the new system.

"I saw fit-for-purpose workplaces, well designed processes and staff who could tell me what a good day meant for them in terms of quality and productivity. There were clear indications that the change process has been well managed,” he said.

Mr Borrows stressed that the new way of working did not change the services offered at each court. He said that the only difference court users should notice is more efficient services, with the new systems and processes making things consistent, aligned, and easier to access.

“Consolidating these systems is a significant change to the way we manage our courts behind the scenes. They are a key part of ongoing efforts to modernise the way we deliver services in the Auckland region and around the country.”

“The benefits of taking a regional approach to managing resources and workloads are clear. The recent centralising of the management of Family Court hearings scheduled for one day or more, has reduced waiting times for those cases from 19-35 weeks to just nine weeks,” Mr Borrows said.

“The public can expect an enhanced service, with quicker timeframes, and easier access to that service.”

Local Government Minister Nick Smith and the Christchurch City Council have met today and agreed to the appointment of a Crown Observer to assist the Council.

"The appointment of a Crown Observer onto the Christchurch City Council will help address any governance issues and work to rebuild the public confidence in the Council," Dr Smith says.

"Effective governance has never been so important in the city's 150 year history. I have emphasised to the Council that people have a choice whether to stay or invest and they are looking to the Council for effective leadership that will give them confidence in the future of Christchurch.

"The role of the Crown Observer will be to rebuild good professional relationships between the Mayor, Councillors and staff and to provide guidance on how they can effectively govern at this challenging time.

"The Crown Observer will help the Council address widely-held concerns that its decision making and governance roles are becoming dysfunctional.

"These failings cannot be left to undermine the valuable recovery work the Council is doing. I hope that by working with the Crown Observer, the Council will make any consideration of further Government intervention in the Council unnecessary," Dr Smith says.

Kerry Marshall, MBE, former President of Local Government New Zealand, former Mayor of both Nelson City and Tasman District, and a former Local Government Commissioner has been appointed as the Crown Observer and will attend his first Council meeting this Monday (30 January).

Related document:

Crown_Observer_Proposal.pdf (pdf 11.35 KB) 

The Minister of Defence is attending defence talks in Europe next week after the bilateral meeting with the Australian Defence Minister and attending the joint Australian New Zealand Cabinet meeting in Melbourne this weekend.

On Sunday evening Hon Dr Jonathan Coleman will travel to London to meet defence leaders and to hold talks related to his State Services portfolio.

He will then attend the ISAF Defence Ministers meeting in Brussels for talks on support and transition in Afghanistan.
Dr Coleman will also hold a series of bilateral meetings with senior ISAF and NATO political and military figures.

While in Belgium the Minister will also attend a special ceremony at Messines Ridge near Ieper on February 3rd for the reburial service of the remains of a New Zealand soldier.

The World War One soldier’s remains were discovered with his NZ Rifle Brigade hat badge, shoulder badge and rifle brigade buttons.

Social Development Minister Paula Bennett is delighted with the response to the Green Paper both in terms of turn out and contributions.

“I have been fronting up and listening to a huge range of New Zealanders from local iwi in Whangarei to staff in the lunch room at Carter Holt Harvey, to a children's panel in the Waikato,” says Ms Bennett.

The Minister’s Green Paper tour which started in Kaitaia will end in Invercargill with meetings in 17 towns and cities including all of New Zealand’s main centres.

The Green Paper camper van is also visiting 32 destinations nationwide and Green Paper Champions have held public meetings across the country to stimulate debate and encourage submissions.

Meetings have been held in community centres, theatres, offices, lunch rooms and meeting places. Many have been so well attended that there has been standing room only.

"For some it’s been emotional and even frustrating at times, but that’s the nature of things when we're dealing with uncomfortable issues,” says Ms Bennett.
People can make submissions on the Green Paper in a number of ways including attending meetings, stopping at the Green Paper camper van, posting on Facebook, email or post.

Submissions now total 1,275 and with the close date of 28 February fast approaching they are flowing in at an increasing rate.

Nelson, Blenheim and Kaikoura will be hosting meetings with the Minister on Thursday next week and final dates for the rest of the South Island are to be publicised shortly.

“This is genuine public consultation, people’s views on these issues are important and all submissions will contribute to a White Paper and a ten year plan to better protect and nurture our most vulnerable children.”

Canterbury Earthquake Recovery Minister Gerry Brownlee has today announced the extension of the Government’s buy-out offer to owners of rest homes and retirement villages in Christchurch’s residential red zone.

Mr Brownlee said he was very pleased to be able to make the announcement, as the issue had caused understandable concern to the residents affected.

"This complex matter has been a focus for the Canterbury Earthquake Recovery Authority’s policy team for a number of months, so it's great news that a solution has been found.

"Extending the scheme was complicated by the fact that rest homes and retirement villages are, strictly speaking, commercial businesses and our focus has been on making offers to private residential property owners in order to help people move on with their lives.

"However, it was obvious the residents of rest homes and retirement villages fell into a category other than commercial business, and a solution had to be found to assist those residents as well."

The extension is to four developments - Kate Sheppard Gardens, Kate Sheppard Lifecare, Avonview Retirement Village, and St Ives Rest Home. Letters have been sent to the four business owners advising them of the change.

A letter of offer to each owner will follow shortly, and CERA will work with the rest home and village owners as quickly as possible to ensure the residents are assisted.

CERA is responsible for coordinating and leading the rebuild of Canterbury and supporting the welfare of its residents. For more information visit www.cera.govt.nz

Canterbury Earthquake Recovery Minister Gerry Brownlee says today's commencement of construction on the first multi-level building in Christchurch’s CBD since the February 22 earthquake is an important milestone.

"Moments like this need to be recognised," Mr Brownlee said.

"Today's commencement of construction demonstrates a belief in the future of the central city by the building’s owners, and by the tenants they have secured to occupy the building.

"It sends a message to other property owners in the central city that investing in the future of Christchurch can happen now, ahead of completion in the CBD demolition programme."

This new building is being built on the original Harcourts Grenadier Real Estate building site at 271 Madras Street, which was demolished as a result of damage from February 22 earthquake

The four level building will be constructed to the highest earthquake engineering standards and is due for completion by Christmas. As many as 150 people are expected to be employed during its construction.

Mr Brownlee said he had been encouraged by commercial developments across greater Christchurch receiving consent, gaining appropriate contract works insurance cover, and getting underway.

"Today's commencement of work follows the news of piles being driven on the $20 million Latimer Lodge hotel site at Latimer Square, and consent being granted for a $7 million 20-shop boutique mall in the old Woolston Tannery complex on Cumnor Terrace.

"We're also aware of supermarkets, aged care facilities and other commercial developments getting underway across the region.

"New Zealanders can take heart that commercial redevelopment of Christchurch is well underway," Mr Brownlee said.

Land Information Minister Maurice Williamson and Associate Minister of Finance Dr Jonathan Coleman have accepted the recommendation of the Overseas Investment Office (OIO) to grant consent to Milk New Zealand Holding Limited (Milk New Zealand), a subsidiary of Shanghai Pengxin Group Co. Limited, to acquire the 16 Crafar farms.

"It is clear that all criteria under sections 16 and 18 of the Overseas Investment Act 2005 have been met, therefore we accept the recommendation of the OIO to grant consent," Mr Williamson said.

"We are satisfied that Milk New Zealand's application for consent meets the criteria set out in the Act," Mr Coleman said.

The approval follows the receivers, KordaMentha’s acceptance in late 2010 of Milk New Zealand’s bid for the farms.

Milk New Zealand’s acquisition will further support the supply of high quality dairy products into the Chinese market and help set the foundations for further economic and export opportunities with China.

Stringent conditions policed by the OIO will ensure that Milk New Zealand's investment delivers substantial and identifiable benefits to New Zealand. These include investing more than $14m into the farms making them more economically and environmentally sustainable; protecting the Nga Herenga  and the Te Ruaki pa sites and improving walking access to the Pureora Forest Park and Te Rere falls.  An on-farm training facility for dairy farm workers will also be established.

A copy of the OIO's recommendation is available at:
http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/oio-recommendation-crafar-farms-20120127.pdf

A copy of the OIO’s Decision summary is available at:
http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/decision-summary-milk-nz-holding-limited-201110035.pdf

OIO background information is available at:
http://www.linz.govt.nz/sites/default/files/docs/overseas-investment/oio-background-information.pdf

Questions and answers

Which Ministers made the decision?

The deciding Ministers were Associate Minister of Finance Hon Dr Jonathan Coleman and Minister for Land Information Hon Maurice Williamson.

What were the criteria for consent? 

After a comprehensive review and consideration of the OIO’s recommendation, Ministers were satisfied that Milk New Zealand met all of the relevant criteria in the Overseas Investment Act 2005, and therefore accepted the OIO’s recommendation to grant consent.

The "substantial and identifiable benefit to New Zealand" criteria were satisfied by particular reference to the following factors:

• Creation/Retention of jobs - section 17(2)(a)(i)
• Increased export receipts - section 17(2)(a)(iii)
• Added market competition/productivity - section 17(2)(a)(iv)
• Additional investment for development purposes - section 17(2)(a)(v)
• Increased processing of primary products - section 17(2)(a)(vi)
• Indigenous Vegetation/Fauna - section 17(2)(b)
• Trout, salmon, wildlife and game - section 17(2)(c)
• Historic Heritage - section 17(2)(d)
• Walking Access - section 17(2)(e)
• Offer to gift riverbed to the Crown - section 17(2)(f)
• Consequential Benefits - regulation 28(a)
• Advance significant government policy or strategy - regulation 28(f)
• Economic Interests - regulation 28(i)

What are some of the proposed benefits Ministers considered before granting consent?

Benefits considered by Ministers included the intention of Milk New Zealand to invest more than $14m in the properties to make them more economically and environmentally sustainable.

Milk New Zealand will also ensure protection of two important pa sites (the Nga Herenga pa and the Te Ruaki pa), and provide improved public walking access to the Pureora Forest Park and Te Rere falls.

Milk New Zealand will also establish an on-farm training facility for dairy farm workers.

Milk New Zealand intends to engage Landcorp Farming Limited (Landcorp) to manage the farms. The Overseas Investment Office considers that the involvement of Landcorp makes it more likely that the expected benefits will occur.

In addition, Ministers have imposed comprehensive conditions of consent on the company to ensure that the benefits proposed by Milk New Zealand are delivered.

What conditions of consent did the Ministers impose on Milk New Zealand?

Conditions of consent imposed by Ministers include the following: The individuals with control of Milk New Zealand must continue to be of good character

• Milk New Zealand must invest a minimum of NZD $14m in the properties
• Milk New Zealand and their associates must not acquire an ownership or control interest in milk processing facilities in New Zealand unless a 50% or more ownership or control interest in those facilities is held by non-overseas persons
• Milk New Zealand must establish an on-farm training facility for dairy farm workers and must meet the capital cost of establishing this facility
• Milk New Zealand must give two scholarships of not less than NZD $5,000 each year to students of the on-farm training facility with the first two scholarships to be awarded by 31 December 2013
• Milk New Zealand must use reasonable endeavours to assist Landcorp to extend its business to, and market its products, in China
• Milk New Zealand must provide public walking access over Benneydale Farm and Taharua Station, in consultation with the Department of Conservation  and the New Zealand Walking Access Commission
• Milk New Zealand must take reasonable steps to protect and enhance existing areas of significant indigenous vegetation and significant habitats of indigenous fauna and flora on the properties
• Milk New Zealand must register a heritage covenant in respect of the Te Ruaki pa site on Tiwhaiti Farm
• If required by the Office of Treaty Settlements, the Applicant must transfer the Nga Herenga pa site (approximately 1.6ha located on Benneydale Farm) to the Crown for nil consideration.

Milk New Zealand agreed to all conditions of consent imposed by Ministers.

How did Milk New Zealand satisfy the business experience and acumen requirement?

The Overseas Investment Act 2005 requires the individuals with control of the relevant overseas person to collectively have business experience and acumen relevant to that overseas investment.

The level of business experience and acumen required to satisfy this condition may vary according to the nature of the investment.  In this case, the overseas investment is the acquisition of a large corporate farming business. The Ministers considered that the individuals with control have sufficient business experience and acumen to operate a large business of this nature.

Milk New Zealand is a subsidiary of Shanghai Pengxin Group Co. Limited, a fast growing international agribusiness which includes investment in sheep breeding, wheat, soy and maize production in China and South America.

Shanghai Pengxin has obtained advice from leading New Zealand consultancies such as Perrin Ag, Landcorp and PwC. Shanghai Pengxin will also employ two New Zealand directors and an independent chairman to the board of Milk New Zealand.

Was the Ministers’ decision influenced by New Zealand’s Free Trade Agreement with China?

No.  Ministers were satisfied that Milk New Zealand met all of the relevant criteria under the Overseas Investment Act 2005.  Ministers can only have regard to the criteria and factors outlined in the Overseas Investment Act 2005.

Every application is decided on its individual merits and the outcome would be the same even if New Zealand did not have a Free Trade Agreement with China.

What is the total land area of the Crafar farms?

The 16 Crafar farms have a combined area of approximately 7,893 hectares.

How much agricultural land has been the subject of consents granted in the last two years?

In the last two years, consent was granted for overseas persons to acquire 357,056 hectares of agricultural land. 

Where did the investors that gained consent to acquire land for agriculture over the last two years come from?
Consents granted involving agricultural land by country of majority ownership, are:

• United States to acquire 25,306 hectares of farm land
• Germany to acquire 6,834 hectares of farm land
• Switzerland 9,727 hectares of farm land
• Australia 3,861 hectares of farm land
• United Kingdom 22,600 hectares of farm land
• Hong Kong to acquire 759 hectares of farm land.

Excluding Hong Kong, there were no other consents granted to Chinese investors to purchase land for agriculture during the last two years.

What happens if Landcorp decides not to manage the properties?  Would consent be revoked?

If Milk New Zealand does not enter an agreement with Landcorp to manage the farms, the conditions of consent require Milk New Zealand sell the properties.  All conditions of consent will be strictly monitored by the OIO.

Why did it take so long for the OIO to assess Milk New Zealand’s application?

Milk New Zealand’s application was extremely complex due to the number of properties involved, with each having its own unique issues that the OIO needed to consider.

For applications like Milk New Zealand Holdings Limited, the OIO aims to make decisions within 70 working days, excluding the time it takes for an applicant to provide information requested by the OIO and for Ministers to reach a decision.

The OIO took a total of 54 working days to assess the application and Milk New Zealand took 123 working days in total to provide information requested by the OIO. 

Why didn't Ministers or the OIO let the consortium led by Sir Michael Fay buy the farms?

It is important to note that Ministers and the OIO were not involved in accepting the bids for the Crafar farms.  This question is best directed to the receivers, KordaMentha.

What impact will the legal proceedings filed by the consortium led by Sir Michael Fay have on the consent granted to Milk New Zealand?

We cannot comment as this matter is currently before the Court.

Core Crown tax revenue was about $500 million below forecast in the five months ending 30 November, reinforcing the need for ongoing spending restraint and responsible fiscal management, Finance Minister Bill English says.

“The Government is committed to reducing its deficits over the next two years and returning to surplus in 2014/15,” he says. “This won’t be easy, particularly with ongoing debt problems in Europe reducing forecasts for global growth.

“However, returning to surplus and repaying debt are among the most important things the Government can do to ensure New Zealand can withstand future shocks and build a more competitive economy based on exports and new jobs.”

The Government’s operating deficit before gains and losses was $4.48 billion in the five months to 30 November. This was $252 million larger than forecast in the pre-election update in November – reflecting lower than forecast tax revenue, which was partly offset by lower than forecast core Crown expenses.

Costs from the latest Canterbury earthquake on 23 December will be included in the Crown accounts when the Earthquake Commission has measured the financial impact.

Mr English says the Budget Policy Statement, to be issued on 16 February, will confirm the Government remains on track to post a budget surplus in 2014/15.

“Not surprisingly, given the more subdued global economic outlook, that surplus now looks like being smaller than the $1.5 billion forecast in the pre-election update – at somewhere between $300 million and $500 million.

“As the Prime Minister said yesterday, returning to surplus is important to our plan to limit debt and take pressure off interest rates and the exchange rate,” Mr English says.

The Government has announced a series of hui to consult with Maori on legislative changes it considers are necessary for the float of minority shareholdings in four State Owned Enterprises to New Zealanders.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall will lead the February consultation process with iwi around the country, which will be facilitated by Sir Wira Gardiner.

The Government is also seeking written submissions through a consultation document on its proposal to remove Genesis Energy, Meridian Energy, Mighty River Power and Solid Energy from the SOE Act and put them under new legislation that ensures the Government retains at least 51 per cent ownership and other individual shareholdings are limited to 10 per cent, Mr English said.

"We promised to talk with iwi when we originally announced plans to partially sell the four energy companies and Air New Zealand last year,” Mr English said. “We want to understand Maori views before we take final decisions.”

Mr Ryall said the consultation will not cover specific investment opportunities, but iwi investment on a commercial basis will be welcomed.

"The Government has promised all New Zealand investors they will be at the front of the queue for shares."

Mr English said the five partial share floats will free up billions of dollars for investment in schools, hospitals and public infrastructure – and help ensure New Zealand avoids the kind of debt crisis faced by Europe.

The consultation document, together with information on how to make written submissions, will be available from 1 February 2012 at: www.treasury.govt.nz/mixed-ownership-consultation

The deadline for receipt of submissions is 5pm on 22 February 2012.

The schedule for hui is:

Arts Culture and Heritage Minister Christopher Finlayson today welcomed the return of 20 Toi moko (mummified Māori Heads), formerly held in French institutions, to New Zealand.

“This is a wonderful day for the people of New Zealand and for those Maori whose ancestors’ remains have been returned home,” Mr Finlayson said. “Toi moko have a great deal of cultural and spiritual value to New Zealand and especially to Maori.”

The French Parliament voted in May 2010 to allow the repatriation of Toi moko, acknowledging the cultural and spiritual importance to New Zealand, and in particular to the Maori people, of bringing Toi moko home to their ancestral lands. The first Toi moko to be repatriated from French institutions arrived in may last year.

Since 2003, New Zealand authorities have followed a policy of facilitating the repatriation of Toi Moko and koiwi tangata Māori (Māori ancestral remains) from museums around the world. Toi moko and koiwi tangata form part of some museum collections of Pacific artefacts dating from the 19th Century.

The Toi moko will be held by the Museum of New Zealand Te Papa Tongarewa, which negotiates and facilitates the return of Toi moko and köiwi tangata Māori from overseas institutions on behalf of the New Zealand Government.

Toi moko and koiwi tangata are repatriated to Te Papa on an interim basis, and Te Papa works closely with iwi (Māori tribes) to determine their attributed place of origin, for eventual burial where possible on ancestral lands.

Prime Minister John Key today met with the 100 participants in this year's Prime Minister's Youth Programme – young people who have overcome adversity and made a real effort to turn their lives around.

The group of 14- to 17-year-olds from South and West Auckland were chosen to take part in the week-long programme in recognition of making positive, life-changing choices.

Youth Affairs Minister Paula Bennett also attended the celebration dinner at the Ellerslie Events Centre with the Prime Minister, along with business leaders, celebrities and leaders from the community.

"Every year I am really impressed by the young people I've met and the inspirational stories I've heard through this programme," says Mr Key.

"These young people have overcome numerous challenges and made a concerted effort to change their behaviour and lifestyles. They've decided to take responsibility for their futures."

The participants were nominated by community leaders, including school teachers and youth aid officers, after improving academic performance, or by moving away from anti-social behaviour such as truancy or low-level offending.

This is the third year of the programme, which sees the participants engaging in a number of activities, including the opportunity to learn from high achieving New Zealanders such as the Warriors and designer Trelise Cooper.

Participants in this year's programme will benefit from follow-up mentoring for up to three months after it finishes this week.

John talks about the ground he covered in today's speech on the economy, setting out the Government's main economic priorities over the next several years. To read the speech, go here.

Environment Minister Nick Smith today launched the environmental recovery plan, to address the long term effects of the Rena disaster on the wider Bay of Plenty region.

“This plan is needed to bring together a wide range of central, regional and local government organisations as well as iwi to ensure the long-term clean-up job is well coordinated,” Dr Smith says.

“The grounding of the Rena was New Zealand’s worst maritime environmental disaster. This plan has been developed to co-ordinate the long-term recovery and restoration of the Bay of Plenty environment. Our goal is to restore the Bay of Plenty environment to as close as is possible to it’s pre-Rena state,” said Dr Smith.

Following the ship’s grounding on 5 October, the appointed salvors have prevented further significant oil spills and removed some containers from the vessel. This and the work of Maritime New Zealand, iwi, community volunteers, New Zealand Defence Force, DoC and the Wildlife Recovery Team, have provided an effective emergency response.

“This plan identifies the environmental issues for the beaches, seabed, water, fisheries, wildlife and management of waste and sets out who is responsible for the recovery and monitoring of each. A governance group has been established to oversee the implementation of the plan and to make sure everything possible can be done to restore the environment,” Dr Smith says.

Dr Smith also announced that Catherine Taylor, formerly Maritime New Zealand’s Chief Executive has been appointed as the Rena Recovery Manager.

“We are very fortunate to get someone who has been so intimately involved in the everyday response to the Rena grounding to lead the coordination and implementation of the long term recovery plan. Ms Taylor’s appointment will mean a seamless transition from incident management to recovery implementation.

“Disasters can bring out the best in people and so, it has been here. I want to acknowledge the contributions of iwi and Councils to this plan and commit to working with them to restore the Bay of Plenty environment,” says Dr Smith.

Foreign Minister Murray McCully has announced that New Zealand will make an initial $350,000 available to support the response to the floods in Fiji.

"Sadly six lives have been confirmed as lost and over 1,500 people have been evacuated because of floods and bad weather affecting most parts of the country," Mr McCully said.

"The Western Division, including Nadi, Lautoka, Ba, Tavua and Rakiraki have been worst hit by flooding and many areas have been left with no power or water.

"New Zealand’s funding will be made immediately available to the Fiji Red Cross for the distribution of essential relief items to those in need, followed by other agencies identified as best placed to meet immediate needs.

"Assessments are on-going and New Zealand stands ready to consider additional assistance as further information comes to hand."

New Zealand is coordinating closely with authorities and relief agencies on the ground, as well as with Australia and France under the FRANZ arrangement.

Currently there are no reports of New Zealanders in need of urgent assistance in Fiji. New Zealanders in flood affected areas should follow the advice of tourism operators and the local authorities, stay in touch with friends and family in New Zealand and register their details with the Ministry of Foreign Affairs and Trade on www.safetravel.govt.nz.
 

Russian Minister of Foreign Affairs Sergey Lavrov will arrive in Auckland next Monday (30 January) for a two day visit to New Zealand, Minister of Foreign Affairs Murray McCully announced today.

“I am pleased to welcome Sergey Lavrov to New Zealand, particularly as his visit comes at a high point in New Zealand-Russia relations. We have completed three rounds of Free Trade Agreement negotiations and a number of other bilateral initiatives are in the pipeline,” Mr McCully said.

“The New Zealand-Russia relationship has strengthened over the past few years. Visitor numbers are at their highest levels; business interest has increased and the Russian rugby team recently came to New Zealand for their first ever Rugby World Cup competition.”

While in New Zealand, Minister Lavrov will hold a bilateral meeting with Prime Minister Key and Foreign Minister McCully. The two foreign ministers will sign a Consultations Plan to formalise increased cooperation between the New Zealand and Russian Foreign Ministries over the next two years.

Minister Lavrov will also meet with the Leader of the Opposition as well as Russian community leaders and businesspeople.

Minister Lavrov will depart for Australia on 31 January.

Prime Minister John Key today outlined the four key priorities the National-led Government will focus on during its second term in office, and also provided an update on the path towards a surplus in 2014/15.

In a speech in Auckland, Mr Key said the Government’s four key priorities for the term are to:

• responsibly manage the Government's finances
• build a more competitive and productive economy
• deliver better public services
• rebuild Christchurch.

"Over the past three years, we have proven that we can deliver strong and stable Government in very difficult times – including through a global economic crisis and the series of destructive earthquakes in Canterbury," Mr Key said.

"The next three years will be about rebuilding and strengthening the country. We are in a good position to do that compared to a lot of other nations."

Mr Key said that the Government’s focus on responsibly managing its finances includes a commitment to return to surplus in 2014/15 – which National campaigned on at the election.  The Budget Policy Statement, which will be released on February 16, will update the track toward that surplus.

"Today I can confirm that we are still on track to post a surplus in 2014/15, and the upcoming Budget Policy Statement will show a forecast surplus in the range of $300 to $500 million in that year," Mr Key said.

"Given the events in Europe, this surplus is understandably smaller than was previously forecast. But we remain on our tight fiscal track."

Mr Key said New Zealand is in a relatively good position to deal with any fall-out from the European crisis in the near term.

"In both 2012 and 2013, the New Zealand economy is forecast to grow more strongly than the Eurozone, the UK, Japan, the United States and Canada – so we are in relatively good shape. However, it is important that we get back to surplus and make our economy more competitive."

The Government will be implementing the 120-point economic action plan released during the election campaign, while also focusing on delivering better public services and rebuilding Christchurch.

"We have a busy agenda. Within our public services work we will be implementing major welfare reforms, focusing on raising achievement across the education sector, improving health services and introducing legislation to strengthen sentencing, parole and bail laws.

"On top of these initiatives we are taking a hard look at the way public services are organised across the board. The state sector could do much better at achieving results and at delivering value for money. I will have more to say about this when we release the Better Public Services Advisory Group report and outline our direction for state sector reform in the next month or two.

"Finally, this year we will be getting on with rebuilding Christchurch, which is a top priority for this Government. We are totally committed to the reconstruction of Canterbury and I’m determined to see that momentum is maintained.

"It will be another busy and challenging year but I am very confident about New Zealand’s prospects.

"We need to get out and seize our brighter future because it won’t come delivered on a plate. My Government is committed to that task," Mr Key said.

Primary Industries Minister David Carter says the go-ahead for the Irrigation Acceleration Fund’s first project delivers on the Government’s promise to lift economic growth through efficient water use and storage.

Mr Carter welcomed today’s announcement that the IAF and the Hawke’s Bay Regional Council are to jointly fund a $3.3million full feasibility study of the Ruataniwha Water Storage Project.

This takes the total investment in the Project so far to $4.8million, when combined with the investment in pre-feasibility stages already completed.

“This scheme stands to unlock enormous productive potential in the Hawke’s Bay region, with the amount of irrigable land likely to increase from 6000ha to around 22,000ha,” says Mr Carter.

The $35million Irrigation Acceleration Fund was announced in last year’s Budget and supports the development of irrigation proposals to the ‘investment ready’ prospectus stage.

“Projects will only succeed if they are committed to good industry practice that promotes efficient water use and environmental management, particularly around land-use intensification,” says Mr Carter.

“The Ruataniwha Water Storage Project, with its storage dam on the Makaroro River, has the potential to provide security of supply for Hawke’s Bay farmers, enhance the region’s recreational opportunities and improve river flows in summer.

“Smart irrigation infrastructure development is key to building an innovative, competitive and sustainable rural sector,” Mr Carter says.

Trade Minister Tim Groser will today depart for Switzerland, to attend the 2012 World Economic Forum (WEF) which will be held in Davos from 25-29 January.

The theme of this year’s conference is ‘The Great Transformation: Shaping New Models’. The programme will focus on issues arising from the rebalancing of the global economy.

Mr Groser will also participate in the Informal Gathering of World Economic Leaders.

“This is a unique opportunity for New Zealand to engage with some of the world’s top economic decision-makers on how we should respond to the shifts now taking place in the world economy, and on the implications for New Zealand,” Mr Groser said.

In Davos, Mr Groser will also attend a meeting of Trade Ministers to discuss the future of the multilateral trading system following the 8th WTO Ministerial Conference.

“In the wake of the most severe downturn in 70 years, the binding commitments made in the WTO provide us with a clear safeguard against the rise of protectionism. It is vitally important that political leaders reaffirm these commitments and maintain their resolve to continue moving forward on trade liberalisation, keeping us on the path towards global economic recovery,” Mr Groser said.

In addition to the formal sessions, Minister Groser will take the opportunity to meet with some of his counterparts to discuss progress on New Zealand’s trade agenda.