SUPER FUND: Losses in the NZ Superannuation fund sent the Government’s operating financial balance fell into deficit for the first time in more than 14 years in the seven months to January, Treasury said. The headline operating balance in the seven-month period was in deficit by $394 million, $4.2 billion below forecast. The operating balance excluding gains and losses (OBEGAL), which strips out unrealised investment gains and losses, was a surplus of $3.1 billion, $633 million lower... more>

ECONOMY: Reserve Bank governor Alan Bollard left the Official Cash Rate (OCR) unchanged on 8.25 percent as economists forecast in the quarterly Monetary Policy Statement. New Zealand has the developed world’s highest interest rates and despite what Dr Bollard acknowledged as a deteriorating global economy, he sees no reason to cut rates any time soon. Dr Bollard said the world downturn posed less risk to the New Zealand economy. "We do not believe it is appropriate to lower... more>

RURAL: The International Year of the Potato has got off to a bad start for local potato growers, with yields well down due to a cold spring and dry summer. Potato Product Group chairman Terry Olsen said crops already harvested this year have had far lighter yields than expected and it was likely to be the same for crops waiting to be harvested. "Generally we are looking at a real challenge over the next few months to meet demand from customers, both in retail and processing," Mr Olsen... more>

SOFTWARE: Christchurch-based Jade Software Corporation has highlighted the difficulties of improving the incomes of many mid-career professionals. Reporting annual net profit up 3 percent to $8 million, the privately-owned company said it had spent nearly $30m during the year on product and market research and development and the acquisition of two new businesses. Managing director Rod Carr said that in an industry based on creative, motivated and skilled people it was reassuring to see... more>

AUCKLAND AIRPORT: Finance Minister Michael Cullen has accused National leader John Key of being "very slippery" on his stance toward the Government’s move to protect Auckland Airport from foreign control. Dr Cullen announced new foreign investment rules allowing ministers to block deals that would allow control of strategic assets and land to fall into overseas ownership. He said it was in response to uncertainty around the Canadian Pension Plan Investment Board’s (CPPIB) offer... more>

TAX: The oil and gas industry accused the Government of a "knee jerk reaction" after ministers announced a tax loophole was going to be closed. Finance Minister Michael Cullen and Revenue Minister Peter Dunne said changes to the Income Tax Act were necessary to protect the revenue base. Dr Cullen told reporters that if the changes were not made, tax on an industry worth as much as $20 billion over the next decade could be lost. The New Zealand Petroleum Exploration and Production... more>

ECONOMY: A surge in aluminium prices boosted the ANZ Commodity Price Index by 0.9 percent in February, reversing a fall the previous month. Seven of the 13 commodities rose in terms of world prices last month, three fell and three were unchanged. A 12.5 percent jump in world aluminium prices was due to a significant shutdown of smelting capacity in China after power was cut during snow storms. "Excluding the surge in aluminium prices, the commodity price index would have been unchanged... more>

ECONOMY: New Zealand’s economic growth will rise 2.7 percent in the year to March, and remain around that level for the next three years, a private economics house says. The New Zealand Institute of Economic Research (NZIER) said in its quarterly review that growth would taper off towards the end of this calender year before recovering on record dairy returns. "Growth is holding up a little bit better, and while consumption is easing off, it’s not easing off as much as we were... more>

CARBON CREDITS: An international company selling "carbon credits" around the world has started signing deals with New Zealand foresters to obtain rights to credits from their forests. The company, GreenAir Ltd, is lining up owners of forests planted since 1990 to sell the carbon credits from their plantations when the Government allows forestry emissions trading later this year. One carbon credit is equivalent to one tonne of carbon dioxide being removed from the atmosphere. GreenAir said... more>

MINING: Glass Earth Gold is reporting that exploration in Otago has led it to new major gold-bearing structures. The structures were similar to that at Oceana Gold’s Otago Macraes gold mine, the company said in a progress report on its exploration activities. The finding came after Glass Earth carried out an airborne geophysical survey over a large area of Otago, followed by more exploration work on the ground. At the Serpentine historical alluvial gold-field geochemical soil... more>