Archive | Archive – local business

22 October 2002

The Securities Commission has banned advertising for 3 futures contract programmes run by Investment Programme Management Inc, which is registered in Belize, Central America, and has offices in Malaga, Spain. Advertising for the scheme has been distributed in Auckland & Hamilton by a few financial planners. The commission said the scheme had no investment statement or registered prospectus, and neither the company nor its New Zealand distributors were authorised futures dealers.

21 October 2002

North Shore City, Waitakere City and Rodney District Councils have agreed to sell their 10.7% of UnitedNetworks Ltd to Vector for $160 million, at the $9.90/share offer price. The councils’ stake is held through the Waitemata Electricity Trust, which is allowed to sell after a recent change to the trust deed. The trust will retain $8.9 million to finance the 3 areas’ undergrounding programmes. The balance will be distributed according to their number of electors in October 2001.

Items on Local Business this week:

Don chops off another finger

18 November 2001

One main item of business news this week, and it was known before it happened: the interest rate cut supposedly to regulate our economy, but factored in along with every other economic commodity. The system has lost its purpose, with no suggestion of a new model to work by, the same as in the US.

A nation holds an advantage by staying ahead, something we seem determined not to do. The knowledge economy is something we’re still largely thinking about when others are on stage 5. Interest rates: we follow an international practice.

Here’s Wednesday’s announcement, abbreviated:

The Reserve Bank cut the official cash rate by 0.5% to 4.75% on Wednesday. Said the bank’s governor, Dr Don Brash: “Even before the tragic events of 11 September, the world economy was slowing quite rapidly… The slowdown in the international economy is already affecting the New Zealand economy and will continue to do so. Export prices are now falling across a wide front, while nervousness about air travel is having an adverse impact on the growth of tourism. Business confidence has declined markedly, and we are expecting investment spending to slow. The economy has already slowed quite sharply and is likely to continue growing rather slowly in the immediate future. This will exert downwards pressure on inflation… [But] it is not inconceivable that the current slowdown will prove to be short-lived.” The Reserve Bank is next scheduled to review the official cash rate on 23 January 2002.

8 January 2003

The Auckland Regional Council has added some detail to its proposal in December to charge rates on the basis of capital value (Snapshot on local business 8 December 2002), plus targeted rates for public transport and biosecurity. The council will open its draft funding & rating policies to public consultation & submissions in April, as part of its annual plan consultation process. The consultation period will end in May and final decisions will be made in June for a direct rating system to start once the law is changed from 1 July. EDS NZ Ltd will head a consortium collecting the council’s rates. The council will vote early this year on some aspects not yet decided, such as its remissions policy and rating of Maori freehold land. Those will then be opened to public consultation & submissions.

23 November 2003

Auckland mayor John Banks officially turned the sod on Friday to start the $140 million, 27-month stage 2 of the central motorway junction upgrade.The $55 million 1st stage, from Khyber Pass Rd to Gillies Ave, is due for completion in January 2005. The 2nd stage will improve & complete the links between the 3 motorways, Grafton Gully & the port. Work on the $68 million State Highway 16 project in Grafton Gully is set for completion by the end of this year.

2 October 2003

The Grafton Gully Wellesley Bridge was officially opened by Auckland mayor John Banks today. The bridge slopes in 2 directions & crosses 6 motorway lanes in spanning the gully. It will provide a new link between the central business district and Grafton Rd & Auckland Hospital and provide new ramps to & from the Southern & North-western motorways, as part of a $300 million Spaghetti Junction upgrade. Mr Banks said the Grafton Gully project would also provide a natural link for the future eastern transport corridor.

30 September 2003

General Finance Ltd (an arm of the Cairns Lockie mortgage group) has introduced 2 products to help new South African immigrants handicapped by restrictive money exit rules, a no-deposit 100% home loan and a no-financials home loan for self-employed buyers without 2 years’ financial statements to validate their incomes.

Kiwi Income Property Trust noteholders will get 1.176724 new units on conversion today (at the weighted average price of $1.045725). Noteholders will receive an interest payment for the September half today, so won’t be eligible for that period’s dividend. Once the interim dividend record date passes, in December, the new units will become ordinary units.
Website: Kiwi Income Property Trust

29 September 2003

The Britomart railway station and ground floor of the old CPO building will be turned over to a 6-hour fashion show on Saturday night, 18 October, in support of a $1 million fundraising campaign by StyleAid, a charitable trust for men, women & children living with HIV & Aids. The series of fashion shows running on both levels will precede NZ Fashion Week. There will also be other entertainment, a dinner & an auction (top prize an Audi convertible). Top price is $395 for the entire event, down to $55 for entry to all shows but not the dinner, tickets available from Ticketek. The event has been organised by Lyn Parent, who has run a series of charity fashion shows this year through her company, L’Vadas Events Ltd.
Website: StyleAid
L’Vadas events

9 November 2002

Michael Hill International Ltd opened its 2 Canadian stores on 30 October in malls on the outskirts of Vancouver, 1 at the Lougheed town centre in Burnaby and the other at Sevenoaks in Abbotsford. It’s also set up a Vancouver support centre and will open a third store, at the Mayfair mall on Vancouver Island, in a week.

5 November 2002

Auckland City Council share sale working party chairman Douglas Armstrong said today Auckland International Airport Ltd’s directors & management had agreed to help the council sell its 25.6% stake in the company. The council is using a dual-track sales process aimed at trade buyers & institutional investors.

4 November 2002

Statistics NZ said today salary & wage rates (including overtime) rose 0.7% in the September quarter, the biggest rise since March 1997, and in the year to September rose 2.2%. Fulltime equivalent employee numbers rose 3.9% and job takeup 3.7% over the year. The quarterly employment survey showed average total hourly earnings rose 3.1% in the August year

Tower Ltd expects its net loss for the September year to be $30-40 million, excluding any fall in value of Tower Australia’s ownership of Bridges, which it said could be significant. Tower will release its result on 5 December.

Latest: Tsang and Wells’ Savoy holdings percentages dip, Alpe leaves Tourism Holdings, Force reviewing Argentinian structure, Warehouse sales up 19%.

8 August 2001

CDL Hotels NZ Ltd managing director Tsang Jat Meng’s holding in Savoy Equities Ltd has fallen from 5.4% to 3.557% as a result of the redeemable share redemption in June 2000 and 1:10 consolidation last October. Likewise, the holding of Wells Investments Ltd (Garrick Wells) has fallen from 7.08% to 4.181%.
Chris Alpe has quit as a non-executive director of Tourism Holdings Ltd because, he said, he will spend much of this year living overseas.
Force Corp Ltd, now controlled by Sky City NZ Ltd, is reviewing possible restructuring of the financial arrangements for its Argentinian cinema interests. Force expects to announce its June year result within a few weeks.
The Warehouse Group Ltd reported fourth-quarter group sales, to 31 July, up 19.1% to $394 million, including Clints and Solly’s in Australia for the first time. Same-store sales, excluding those Australian businesses, rose 15.1%. Sales for the full year rose 15% to $1.654 billion. Fourth-quarter sales by The Warehouse chain rose 25.7% to $279 million, full-year sales 15.2% to $1.162 billion, same-store sales 14.2% for the quarter. Fourth-quarter gross margin contracted as the chain chased market share and cleared surplus stock. The Warehouse increased retail space 20.9% to 306,838m² in 75 stores. The Warehouse has terminated its joint venture agreement with Care Chemists because the pharmacy industry hasn’t been deregulated as expected. Exiting this venture will cost it a $1.5 million after-tax charge. The group expects to report its financial result for the year on 7 September.

10 April 2003

Air NZ increased its passenger load by 9.9 in February over February 2002, to 797,000 passengers, and by 4.4% for the year to date (the June financial year), to 6.3 million passengers. Revenue passenger kilometres (rpks, the measure of actual bums on seats) rose 5.8% for the month, 7.6% for the year to date, on available seat kilometres (asks, available capacity) up 10.1% for the month and 0.1% year to date. The passenger load factor fell 3 points for the month to 75.2%, but rose 5.4 points year to date, to 77.1%. Domestic passenger numbers rose 12.5% for the month and 3.5% year to date, the passenger load factor rose 10 points to 77.2% for the month and 6.5 points to 66.7% year to date. International passenger numbers rose 6% for the month, 5.7% year to date, and the international load factor fell 4.8 points for the month to 74.9%, but rose 5.2 points year to date to 77.6%.

The Australian Competition & Consumer Commission issued a draft decision today saying it proposed to deny approval to a proposed alliance between Qantas Airways Ltd and Air New Zealand Ltd, and the NZ Commerce Commission also said it was likely to reject the proposal. The Commerce Commission said the NZ public was likely to lose out by $202-432 million/year and benefit by $30.2-46.3 million/year, compared to savings claimed by the airlines of $236 million at year 3.

Items on Local Business this week:

Help for migrants

Shore council wants to be nice

Latest: Help for migrants, Shore council wants to be nice.

29 April 2001

A news release from Auckland City Council community development committee’s chairman, Cllr Penny Sefuiva, indicates an end to 17 years of madness, during which New Zealand has invited many thousands of migrants to live here, mostly in Auckland, then done too little to help them adjust. It’s probably the most enduring aspect of pure Rogernomics, providing an opening but insisting on no support for those who take the opportunity. Said Cllr Sefuiva: “We all have a responsibility to help these people adjust to a new environment because failure to do so results in social costs which impact on all of us.” Auckland and Manukau cities will run a pilot study to help migrants and refugees settle in, with a new service centre — address not yet known — and a strategy to consolidate and co-ordinate the many services community groups provide. The project is government-funded.

North Shore City Council’s draft economic strategy, prepared by McDermott Fairgray, recommends the council host business forums every six months. The council’s strategy & finance committee also resolved to support the Competitive Auckland project.