There is still no solution to the Air New Zealand crisis. The cabinet has been discussing a possible rescue package for the airline that would allow it to recapitalise and stem losses flowing from its subsidary, Ansett Australia. But the cabinet meeting has broken up with the Prime Minster saying further negotiations are needed before a solution is found for Air New Zealand's financial troubles. Helen Clark says negotiations between the government and the airline will probably continue up until Wednesday as they seek a constructive solution. READER
The crisis has sent Air New Zealand shares plummeting and severely strained the [illegible] finances, with revelations that Ansett is now losing one and half million dollars a day. Air New Zealand has been talking to the Australian prime minister over Ansett's fate. But as the high level talks continue, Air New Zealand has given its clearest indication yet that its ready to abandon Ansett. The Air New Zealand board is now meeting - earlier today the acting chairman Jim Farmer told Radio New Zealand's Kim Hill that all the major shareholders are contributing to a rescue package. CUT And this was Dr Farmers response when asked if the package was for Ansett as well. CUT And Dr Farmer gave his view of Air New Zealand's future without Ansett. CUT
The acting finance minister Trevor Mallard has been involved in the Government's talks with Air New Zealand and he joins us now. LIVE
Our political editor Al Morrison joins me now. LIVE
In Australia, angry Ansett workers have protested outside the airline's Melbourne offices. One of those workers is Steven Smith, who has worked for Ansett for the last 27 years - he joins me now. LIVE
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Fiji's hopes for a stable government are now uncertain following an announcement by Mahendra Chaudhry and his Labour Party that they will take up their constitutional right and accept eight cabinet seats. I will be speaking to our reporter in Fiji, Barbara Dreaver, shortly about this development, which follows today's swearing in of Laisenai Qarase as prime minister. Mr Qarase, who is the leader of the SDL or United Fiji Party, promised that his government will restore stability. CUT Mr Qarase is also appealing to the international community not to interfere in Fiji. CUT In the last few minutes, the deposed Prime Minister, Mahendra Chaudhry, announced his plans - our reporter Barbara Dreaver was there and joins us now. LIVE
The nationwide campaign to save electricity is over and the Government has announced a review of how the system works amidst accusations that electricity generators are charging too much. The campaign to save ten per cent of electricity over ten weeks was prompted by record low inflows to the country's hydro lakes, but is to be wound down three and a half weeks early. I asked Energy Minister Pete Hodgson whether the Government over-reacted to the situation. B/ANNOUNCE: Mr Hodgson says the review will look at the level of profit being made by the electricity generators. PREREC
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Returning to our lead story - and the Air New Zealand crisis. Cabinet has today discussed a rescue package for the airline - but has not announced any solution to its problems, or that of its subsidary Ansett Australia, which is losing more than one and a half million dollars a day. The cabinet meeting broke up with the Prime Minster saying further negotiations are needed before a solution is found. The board of Air New Zealand is now meeting in Auckland, while in Australia, angry Ansett workers have protested outside the airline's Melbourne offices. Martin Foley is a spokesperson for the Australian Services Union which represents about half of Ansett's 16 thousand staff. He told me that they have long-feared that the Air New Zealand board would cut ties with Ansett Australia. PREREC
[illegible] Business editor John Draper has been following the story and joins me now. LIVER
The State Services Commissioner, Michael Wintringham been appointed to conduct a formal inquiry into standards of behaviour and the leaking of documents within the defence force. It's one of three inquiries being conducted into defence which have been prompted by the Auditor General's report into the Army's purchase of armoured vehicles, and opposition claims that the army tried to influence government defence policy. The Defence Minister, Mark Burton says the State Services Commissioner will inquire into the standards of behaviour, the leaking of documents and the inappropriate use of information by Defence Force personnel. Mr Burton joins us now. LIVE
The National party has taken what it calls the middle ground in the controversial debate over parents' rights to physically punish their children. It does not want a ban on smacking but is pressing for a law change to set limits. The law, as it stands, gives parents the right to use reasonable physical force when they're disciplining their children but it is up to juries, considering particular cases, to decide what that means. We're joined now by [illegible] social issues correspondent Shona Geary. LIVE WITH DROP INS
The Environment Court has begun hearing appeals over plans for a controversial Northland prison. The Corrections Department wants to build the 300-bed prison at Ngawha - a geothermal area near Kaikohe.
But it's run into problems with strong objections from many Māori - and a neighbour who says the prison will ruin her tourism business. Our Northland reporter Lois Williams went to the first day of the appeal hearing in Paihia and she joins us now. LIVE WITH DROP IN
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