Air NZ ruffled by union ruling, Rich Listers divvy up Dairy Holdings, Chorus valuation raises eyebrows

Air New Zealand faces an uphill battle in a tussle over union wages, following a court decision that may aid unions fighting for members. A leading employment lawyer says the airline will need to be “inventive” to make it to the Court of Appeal. Court reporter Victoria Young assesses the damage in today’s National Business Review.

A tussle for control of one of New Zealand’s largest dairy enterprises has ended with the founder cashing up his shares. Dairy Holdings founder Alan Pye has finally sold his 25% to other shareholders including rival and fellow NBR Rich Lister Colin Armer. Mr Pye was coy about what he is going to with his stash of cash, although market rumours are already swirling about his plans. Chris Hutching reports.

At the time Chorus was created, less than three years ago, the copper network had a book value of $1.8 billion. The share market now finds Chorus worth $750 million. Yet, Chorus suggested to its investors last week that the value of the copper network should be recognised as between $14-16 billion – a 700% increase in less than three years. Jordan Carter, chief executive of InternetNZ, says copper broadband prices based on those numbers would drive up the prices paid to Chorus by ISPs – and everyone’s home Internet bill – by up to $50 a month more.

Insolvency practitioner Damien Grant is defending a perceived lack of action concerning the liquidation of companies involved in raising $15 million for the Albany Heights housing project. But some critics remain unhappy at the progress. Duncan Bridgeman reports.

The success of the primary sector may be creating more income and profitability but it is not creating a lot of jobs. In fact, the number of people working across the industry has declined 9% over the past century. Jamie Ball discusses this issue with NZIER’s Shamubeel Eaquab.

The markets tend to take a hit when geopolitics get tense but one expert is urging investors to put aside emotional instincts to sell down and concentrate on long-term fundamentals. Business reporter Calida Smylie reports.

Steven Joyce, the man dubbed the “Minister of Everything” picked up an extra role in the post-election cabinet reshuffle and is now minister for regulatory reform, along with all his other portfolios. He tells political editor Rob Hosking what’s hot on his agenda right now.

Nobel prize winning economist Jean Tirole believes companies are better at fixing prices than regulators. NBR editor Nevil Gibson applies this theory to New Zealand.

Don’t miss NBR Showroom, our special motor vehicle feature this week.

Briefly:

• Michael Coote says secular stagnation is a disease of advanced economies brought on by miserliness
• Ad Media reporter Campbell Gibson on Paul Henry’s new breakfast show
• Wayne Brown asks who’s been caught by the anti-money laundering bureaucrats

All this and more in today’s National Business Review. Out now.