HEADLINES & NEWS
A deal is being floated which would see Qantas Airways buy into Air New Zealand, and radically alter the shape of the national flag carrier. The proposal would see Qantas buy a significant shareholding in Air New Zealand from the company's two main shareholders Brierley Investments and Singapore Airlines. Brierley owns 30 percent of Air New Zealand, Singapore Airlines 25 percent. Under the deal, Air New Zealand's subsidiary Ansett would be sold to Singapore Airlines. I spoke to Qantas spokesperson Micheal Sharp in Sydney, asking if the company is seeking to 55 percent of Air New Zealand. PREREC
The Prime Minister Helen Clark says the Commerce Commission would have to agree to any such proposal.
She says the proposal would also have major implications for bilateral air agreements between New Zealand and other countries, which restrict foreign ownership by another airline to twenty-five percent. And the Transport Minister Mark Gosche says that the Government is still waiting for more detail on the proposed deal. CUT
An aviation specialist says the plan reflects Qantas's long term goal to have a stronger international presence through critical regional alliances with other airlines.
Peter Harbison is from the Centre for Asia Pacific Aviation Studies in Sydney - he says Qantas is one of the key partners in the One World Alliance, while Air New Zealand, Singapore Airlines and Ansett are partners in the rival Star Alliance. He says a succesful Qantas deal would see Air New Zealand moving into the One World Alliance. I asked him where that would leave competition in the domestic market here. PREREC
Singapore Airlines says it has held exploratory talks with Qantas on selling its 25 percent stake in Air New Zealand to the Australian carrier. But Singapore Airlines says it is still only a proposal and it must carefully consider the strategic and financial implications. READER
The Social Services Minister has backed down from plans to build a youth justice centre at Mandeville, near Christchurch, to house young criminal offenders. It follows continued pressure from residents, culminating in a four thousand signature petition presented today to the minister, Steve Maharey. The residents argued that the site was too far from Christchurch, had no public transport, and was in the middle of a built up residential area. But Steve Maharey says the decision was influenced by a several factors, including potential legal issues that could have delayed or prevented construction. PREREC
The Waimakariri Community Action Group which organised the petition has welcomed the Government's back down on the Mandeville site. The group's spokesperson Jim Gerard joins us now. LIVE
BUSINESS NEWS WITH JOHN DRAPER
In Fiji - the court hearing to decided whether coup leader George Speight should stand trial on treason charges has been delayed for a week because Speight's lawyer has withdrawn from the case. Speight and his 12 accomplices in the May 19 coup appeared in court amidst tight security - our reporter Shalen Shandil was there and he joins us now. LIVE
This year's record dairy payout is putting on average an extra 90 thousand dollars into farmers' pockets. The big payout is being credited to increased production, a favourable exchange rate and strong growth in sales. Federated Farmers says this will give the country's 14 thousand dairy farmers the chance to invest both on and off the farm - to the tune of two billion dollars. Tarek Bazley compiled this report. PKGE
5.30 NEWS HEADLINES
SPORT with STEPHEN HEWSON
Dramatic evidence has emerged in the High Court in Christchurch today in the trial of the man accused of causing the death of a woman on a picket line at the Port of Lyttelton in December 1999. 53 year-old Derek Paul Powell is changed with the manslaughter of Christine Clarke, who died from serious head injuries two days after being hit by his vehicle. Our reporter Nathan Mills has been at court and joins us now. LIVE
A Ministry of Health report shows that the amount of dioxin in breastmilk has reduced by seventy percent in the last ten years. Dioxins and the pesticides dieldrin and ddt have been linked with cancer, developmental problems and damage to the immune and reproductive systems. While mother's milk still contains come dioxin, the Ministry is continuing to encourage breast feeding. The Ministry's Child and Youth chief advisor Pat Tuohy says a study undertaken by the World Health Organisation last year showed breastfeeding's benefits far outweigh any risks. PREREC
The government is defending its initiative to offer prison inmates student loans, saying it will help rehabilitate criminals. The opposition is critical that inmates are being offered thousands of dollars on low interest rates to cover their course costs. Sally Wenley reports. PKGE
The British Government has gone to the Court of Appeal in Wellington in the [illegible] move to stop a New Zealand-born former British SAS soldier from publishing a book about a disasterous Gulf War mission. The former soldier, known by the cover name Mike Coburn, was a member of the secret Bravo Two Zero mission behind Iraqi lines which ended with three of the seven man team dead and three captured and tortured. The British Government unsuccessfully tried to gag Mr Coburn in a High Court action in Auckland - it is now appealing that Court's decision to allow publication of the book "Soldier Five". Our Court Reporter Merle Nowland has been listening to the argument and joins me now. LIVE
120 years after being wiped out by ship rats, the endangered North Island Robin is back in the Hunua range south of Auckland. Ten birds were released yesterday and another twenty birds were set free today as part of the restoration of the ranges by the Auckland Regional Council and the Conservation Department. The Robins are being brought up from near Lake Taupo - ARC councillor Bill Burrill describes their historic trip north. PREREC
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