April 2004
Monthly Archive
Wed 28 Apr 2004
The new breed of super fast trains coming into service throughout the world may soon be relying on door control units created in New Zealand.
The high tech units replace older systems that are no longer reliable or robust enough to meet the demanding requirements of high speed passenger trains, and are the work of Palmerston North based Conzept Engineering, working in partnership with Noske-Kaeser NZ and R&D Technology Solutionz (RDTS).
Conzept has received exports orders of more than $1 million but General Manager, Keith Smith, says the project may not have got off the ground without investment from government funding agency, Technology New Zealand. Conzept received $120,000 through Technology New Zealand’s Technology for Business Growth (TBG) scheme, which allowed the company to tap into outside expertise of Noske-Kaeser NZ and RDTS.
“We may have had to look for a new investor or gone offshore without the government support,” said Mr Smith.
The control units must ensure train doors are fail-safe. They detect obstructions so that no-one gets caught, remain closed while the train is moving without being affected by vibrations or rattles and perform to high standards over many years of rigorous service. The software within each door unit communicates with the train’s operating system, detecting and reporting faults and triggering alarms when needed.
During the testing phase, the control unit opened and closed a test door 250,000 times without fault before being considered reliable. The unit was also rigorously tested for electromagnetic compatibility with train systems, and underwent extended shock and vibration trials.
Conzept has made its first delivery to Australia where they will be built into the doors of high speed trains for use in Melbourne and Perth. Mr Smith said further negotiations were underway to supply a large number of units for a European train project. Noske-Kaeser markets the product, Conzept’s role centres on production.
“The key message to the success of this project is that we had our customer on board before development work began. That’s a luxury for some, but having the customer with you from the outset keeps you on track with what the market wants, not what you think it wants,” says Mr Smith.
“We’ve been successful with air conditioning systems worldwide but this new product takes the brand and mana to a new level,” he said.
Conzept has an international reputation in the transport industry for its manufacturing of air-conditioning units which it produces in partnership with Noske-Kaesar, a German company which has a design and project management subsidiary in Palmerston North. The relationship began in 1990 when the German parent company was awarded the contract to supply air conditioning units for ten ANZAC frigates.
Mr Smith says supplying two different products - air-conditioners and door control units - is a good synergy for the company.
Conzept, which has 75 staff, is relatively unknown in New Zealand because most of its manufacturing work is subcontracted by companies, such as Noske-Kaeser.
Wed 28 Apr 2004
Auckland – Kiwi Income Property Trust has successfully raised NZ$50 million through a placement of units to institutional investors to fund the acquisition of Unisys House in Wellington.
The Trust has an unconditional contract to purchase Unisys House in Wellington’s CBD and government precinct for $44 million, with settlement due on April 30, 2004. The property has been substantially refurbished, and with its government sector tenants will further diversify the Trust’s tenant mix, said Chief Executive of the Manager of Kiwi Income Property Trust, Angus McNaughton.
“A total of 49,504,950 units at $1.01 per unit will be issued on 5 May 2004, and will rank equally with ordinary units, but will not participate in the final dividend relating to the year to March 31, 2004 that will be paid in June 2004. The new issued units will initially trade as Kiwi Income Property Trust New Ordinary Units (under the acronym KIPNC and ISIN NZKIPE0010S6), but will amalgamate with existing units after the final dividend record date which will be June 11, 2004.” said Mr McNaughton. Goldman Sachs JBWere acted for Kiwi Income Property Trust in arranging this placement.
Wed 28 Apr 2004
the Panel granted an exemption to Rubicon Forests Limited from compliance with rule 43(5) of the Takeovers Code in relation to a partial takeover offer for Tenon Limited.
Under rule 43(5) of the Code, Rubicon is required to send the offer document, within a prescribed timeframe, to every person who is registered as a holder of Tenon shares on the record date.
Approximately 140 people, together holding 0.11% of Tenon shares, are shown on the share register as having an address in the United States of America. The Panel has been advised by Rubicon that if the offer document is sent to shareholders whose addresses on the share register are in the United States Rubicon will need to comply with certain aspects of United States law regarding takeover offers. The cost of complying with United States law in respect of the relevant United States shareholders would be out of proportion to the number of shareholders affected and the extent of their shareholding.
The exemption allows Rubicon to not send the offer document to shareholders whose addresses on the Tenon securities register are in the United States of America. However, those shareholders will be sent a copy of the target company statement and accordingly will be aware of the offer and will be able to take steps to participate in the offer.
When considering the exemption the Panel noted that a significant number of Tenon shares may be controlled, although not directly held, by people in the United States of America. The Panel notes that the Code does not require bidders to make or send an offer to any person not shown as a holder of securities in the target company on the securities register of that company.
The Panel considers that the exemption is consistent with the objectives of the Code because it is important for the promotion of competition for control of code companies that offerors not be required to incur significant costs of complying with the laws of an overseas jurisdiction in circumstances where that requirement is occasioned by a minimal number of shareholders, holding a minimal number of shares, in that jurisdiction.
The Panel has granted an exemption from rules 28(1)(a) and 45(1) dealing with various notices required by the Code. Exemption from those rules was necessary as a consequence of the exemption from rule 43(5).
Tue 27 Apr 2004
The spectacular maiden Australian visit of P&O Cruises’ giant Star Princess has led to unprecedented demand for big-ship cruising, with a 350% increase in bookings for Star Princess’ big sister Sapphire Princess.
On the back of the 109,000 ton Star Princess’ sell-out season last summer, more than 2000 Australian passengers have already booked on the 116,000 ton Sapphire Princess’ Australasian itineraries for next summer.
P&O Cruises Managing Director Gavin Smith said publicity surrounding Star Princess’ visit had also had a flow-on effect for P&O Cruises’ local premium ship Pacific Princess.
“Pacific Princess bookings are up by more than 85% compared with the same time last year. We’re seeing strong bookings from new passengers, as well as a high level of repeat business, with new cruises to Queensland, Tasmania and New Zealand attracting past passengers eager to experience different itineraries.
“With its stylish décor, superior service, choice of restaurants and luxury spa facility, Pacific Princess really is the cruise alternative to a luxury resort,” he said.
“The introduction of so many new itineraries and destinations for Pacific Princess means Australians now have even more choice when it comes to experiencing world-class cruising close to home.”
Mr Smith said that the success of Sapphire Princess’ bookings in Australia was representative of the cruise market boom around the world.
“According to industry figures, a record 11 million people around the globe will take a cruise this year and more than 250,000 Australians are tipped to take a cruise in 2005. The international cruise industry is now a A$40 billion industry and growing up to three times faster than the general travel industry.”
For those keen to sail on the biggest cruise ship to visit Australia, Sapphire Princess voyages still available include:
• 12-night Auckland to Sydney cruise departing 30 January 2005 from A$2587 per person; and
• Bangkok to Beijing for 16 nights departing 26 March 2005 from A$3323 per person.
On Pacific Princess, a 10-night voyage to Tropical North Queensland departing 18 November 2004, or a 10-night cruise to New Caledonia and Vanuatu departing 9 January 2005, each start at A$2464 per person.
Mon 26 Apr 2004
There’s a bit of smuggling going on the Hauraki Gulf this week, but surprisingly, it’s all kosher.Exercise FORGE, a joint agency exercise between the New Zealand Customs Service and the Department of Conservation (DOC) kicks off this week in the Hauraki Gulf. With a focus on testing operational capabilities in a joint response to illegal border activity, the exercise runs through until Friday 30 April, providing a valuable opportunity to see response operations first hand.Manager of the Customs Service Risk Response Group, Paul Smith, said the general scenario involves activating a joint response team to deal with a simulated illegal smuggling activity.
” We’re looking at the interoperability between Customs and DOC. This means checking out how ready we are to respond to such a scenario, what the operational capabilities are of both our people and equipment, and testing our communications in this type of a multi agency environment.”
“We’re expecting it to be a very successful exercise and give us the opportunity to see what can be improved, how good our standard operating procedures and practices actually are, and also see if there are other training areas we should be looking at.”
DOC national compliance and law enforcement coordinator Felicity Heffernan said the exercise was a chance to test the organisations capability and performance when dealing with border incursions in an operation that was as realistic as possible.
“The successful conviction of the two Czech plant smugglers in February was due to DOC, Customs and MAF working together in the Wildlife Enforcement Group. DOC needs to maintain its high level support to this group.”
The key to successful operations in the past has been making sure all actions or decisions have a legal basis and all evidence is obtained in a way that is legally admissible in court and can withstand judicial review. This exercise will be looking to achieve the same outcome.
Thu 22 Apr 2004
Tax Freedom Day in New Zealand is important because it represents the day in the year when the average New Zealander stops working for the government and starts working for themselves, the executive director of the New Zealand Business Roundtable, Roger Kerr, said today.“As far as central government is concerned, today, April 22, is the earliest Tax Freedom Day for New Zealand.”Mr Kerr said that the calculation of April 22 is based on central government core expenditure, which amounts to 31 percent of gross domestic product (GDP).
“On that basis, Tax Freedom Day is little changed from last year (April 23)”, Mr Kerr said.
The Business Roundtable regards government spending as the best measure of the tax burden because almost all government spending ultimately has to be financed from present or deferred taxation (borrowing). Because the government is running a fiscal surplus (taxation is higher than spending), Tax Freedom Day would be later if a comparable taxation measure were used.
Indeed the government spending measure understates the true tax burden because it leaves out or underestimates elements of government spending such as local government. If these are included, total government spending in New Zealand, as measured by the Organisation for Economic Cooperation and Development (OECD), is projected to be almost 40 percent of GDP in 2004. On this basis, Tax Freedom Day would fall on 26 May.
This broader measure highlights the extent to which New Zealand is a highly taxed country. Compared with New Zealand, Tax Freedom Day on this measure comes more than two weeks earlier in Ireland (8 May), Australia (10 May) and the United States (10 May), and at a similar time for the OECD as a whole (29 May). A number of Asian and other countries have levels of government spending, and hence tax burdens, that are well below the OECD average.
The OECD has revised its basis of calculating general government total outlays in the past year. This will delay the arrival of Tax Freedom Day in most member countries compared with 2003.
The government lifted its long-term spending objective from under 30 percent of GDP to 35 percent in the 2000 Budget Policy Statement. In the 2004 Budget Policy Statement, the government stated that rising surpluses are required to achieve its high-level fiscal objectives. According to the government, this requires core Crown expenses (plus the net payment/withdrawal to the New Zealand Superannuation Fund) to average around 35 percent of GDP over the horizon used to calculate NZS contributions. The government’s fiscal policy means that the tax burden, together with contributions to the New Zealand Superannuation Fund, will remain at least at its present high level for the foreseeable future.
In the 2004 Budget, the government intends to increase spending primarily on policies that redistribute income. It does not plan to reduce spending and taxes to enhance economic efficiency and boost growth. Government spending is forecast to rise by 0.5 percent of GDP next year, which will delay Tax Freedom Day by three days.
“These calculations are of interest because of economic evidence that, beyond a certain point, government spending and taxation hamper economic growth”, Mr Kerr said. “No country has achieved per capita growth rates of 4 percent or more a year on a sustained basis with general government spending approaching 40 percent or more of GDP.
“Finance minister Michael Cullen has said that it will be apparent by the middle of this year whether the government is on track to lifting New Zealand’s trend growth rate to a higher level. The Budget projections next month will almost certainly confirm that it is not. It follows as a matter of logic that the share of government spending in the economy must be reduced (and the quality of spending improved) if the government is serious about its aim of restoring New Zealand to the top half of the OECD income rankings”, Mr Kerr said.
Wed 21 Apr 2004
Following a recent High Court decision, the Commerce Commission is highlighting to businesses that they cannot avoid liability under the Fair Trading Act by claiming they were ignorant of or misunderstood the law.
The Auckland High Court has dismissed an appeal by Fastlane Autos Limited against a conviction of six charges of breaching the Fair Trading Act in relation to the advertising of motor vehicles.
Fastlane Autos Limited was fined a total of $18,000 plus costs in the Waitakere District Court in June last year. The Commerce Commission laid the charges against Fastlane Autos for failing to adequately disclose that a $5,000 minimum trade-in offer did not apply to all trade in vehicles, and that financial terms were not readily available as advertised.
In his judgment, Justice Randerson dismissed Fastlane Autos’ argument that it had a defence under the Fair Trading Act in that it had made a ‘mistake of law’ in understanding it was entitled to make deductions from the advertised trade-in figure. Justice Randerson clarified that there is no ‘mistake of law’ defence under the Act.
He also commented that on the facts, the original Judge was fully justified in concluding that the advertisements and the representations were made in an unqualified way and were false or misleading.
Commission Chair Paula Rebstock said the Commission was pleased with the High Court decision to dismiss the appeal.
“This case sends a strong message to businesses that ignorance of the law or a mistake of law does not constitute a defence.
“It is also a reminder to motor vehicle dealers, and retailers in general, to be clear in all advertising and verbal representations to customers about any terms or conditions that apply to an offer,” Ms Rebstock said.
Background
Auckland-based car dealer Fastlane Auto Limited was fined $18,000 plus $880 costs in the Waitakere District Court in June 2003 for six breaches of the Fair Trading Act.
The Commission laid the charges against Fastlane Auto for failing to adequately disclose that a $5,000 minimum trade-in offer did not apply to all trade in vehicles, and that financial terms were not readily available as advertised.
Fastlane Auto offered financial terms of various weekly payments over a three year term. The offer did not, however, disclose specific term and conditions on the finance, which were:
. finance was only to approved borrowers;
. vehicles over ten years old could only be financed over two years;
. the weekly payments quoted were not always available, as they were dependent on the amount of the deposit.
Fastlane Auto made the claims through advertising in the Auto Trader magazine between January and July 2000, and through representations to at least one customer at the car yard.
Wed 21 Apr 2004
There were 211,700 short-term overseas visitor arrivals in New Zealand in March 2004, up 17,900 or 9 percent on March 2003, according to Statistics New Zealand.
In March 2004, there were more visitors from Australia (up 14,200 or 23 percent) and the United Kingdom (up 3,200 or 13 percent) than in March 2003.
The number of stay days for all visitor arrivals in March 2004 decreased by 4 percent on the previous March, from 4.00 million days to 3.82 million days. The average length of stay was 18 days in March 2004, compared with 21 days in March 2003.
In the year ended March 2004, there were 2.163 million visitor arrivals, up 101,000 or 5 percent on the previous March year. There were more visitors from Australia (up 105,000), the United Kingdom (up 36,300), Germany (up 4,500) and the United States (up 3,700), but fewer visitors from Japan (down 22,500), China (down 15,400) and Taiwan (down 9,900), compared with the year ended March 2003.
Seasonally adjusted monthly visitor arrivals were up by 1 percent in March 2004, following a drop of 3 percent in February 2004.
New Zealand residents departed on 113,600 short-term overseas trips in March 2004, an increase of 30 percent or 26,200 on March 2003. There were more trips to Australia (up 17,500 or 37 percent), the United Kingdom (up 2,000 or 55 percent) and Fiji (up 1,400 or 45 percent).
In the year ended March 2004, New Zealand resident short-term departures numbered 1.434 million, up 12 percent on the year ended March 2003.
Permanent and long-term (PLT) departures exceeded arrivals by 300 in March 2004, compared with an excess of 1,800 PLT arrivals over departures in the previous March month. This net PLT outflow, which is the first since May 2001, can be attributed to 1,600 fewer PLT arrivals and 400 more PLT departures. The main reason for the drop in PLT arrivals was a fall in non-New Zealand citizen arrivals (down 1,400). China accounted for over half of this drop, with 800 fewer arrivals, the majority of whom were from the 15–24 year age group. PLT arrivals have now dropped in each of the past 13 months when compared with the same month a year earlier, while PLT departures have increased in each of the past eight months.
The seasonally adjusted series recorded a net PLT inflow of 1,200 in March 2004, down from 2,100 in February 2004.
In the year ended March 2004, there was a net migration gain of 28,000 – 33 percent lower than the net inflow of 41,600 people in the previous March year. This resulted from 87,500 PLT arrivals (down 11,200), and 59,500 PLT departures (up 2,400) in 2004. Compared with the March 2003 year, New Zealand citizen arrivals were up 1,100 and New Zealand citizen departures were down 1,000. In contrast, non-New Zealand citizen arrivals were down 12,300 and non-New Zealand citizen departures were up 3,400.
There were net inflows from China (7,400), India (4,100) and Japan (2,100) in the year ended March 2004. There was also a substantial net inflow from the United Kingdom (10,300), up 43 percent on the March 2003 year figure (7,200). Conversely, there was a net outflow to Australia of 11,000 in the March 2004 year, compared with net outflows of 11,300 in the March 2003 year and 16,100 in the March 2002 year.
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