More pain for dairy industry, Council ducks questions on air subsidy, New details in $27.8m claim

In NBR Print today, Fonterra chief executive Theo Spierings doesn’t mince his words when he says that current dairy prices are unsustainable for farmers both here and around the world. The problem is there doesn’t appear to be much light at the end of the tunnel as far as any recovery goes. Jason Walls looks at the forces working against the dairy sector.

The exact nature of millions of dollars in ratepayer support for new Singapore Airlines flights out of Wellington remains hazy amid mounting embarrassment for the council over the deal, Tim Hunter reports. Council deputy mayor Justin Lester, who was involved in arranging the deal with Singapore Airlines, told NBR the money was “marketing support.” However, it remains unclear whether the money would be paid to third party advertising agencies, say, or as a direct subsidy to the airport or airline.

A new report on the $27.8 million dissolution of Kiwi Deposit Building Society says a claim relating to shares in a collapsed Australian satellite firm will be heard in August this year. And, as Hamish McNicol discovers, a judgment from last year has cast more light on what is involved, including allegations of a “sham” loan agreement – and a substantial change in plead by the companies involved.

Last time NBR caught up with Bypass Network Services, the tiny Auckland company had been flattened by a legal action brought by Sky TV, MediaWorks, TVNZ and Lightbox owner Spark. Talk about a steamrolling. But although Bypass’ original product is down for the count in New Zealand, late last year it finalised a deal with a distributor in Indonesia. And now it is targeting the giant Indian market. Chris Keall reports.

Exchanged-traded funds are an increasingly popular way to invest, closing last year with a record $US3.5 trillion in assets, reports Calida Smylie. However, a rocky start to 2016’s equity markets has already seen extensive selling – and ETFs are coming under suspicion for worsening recent market swings.

Thanks to a perfect storm of market conditions, New Zealand exporters are currently enjoying historically low shipping rates. But, warns Ports of Auckland chief executive Tony Gibson, if the sector continues on its present course there’s the real risk of it running aground on the shoals of unsustainablity. Nick Grant reports.

Public relations executive Sarah Sparks has lost her attempt to limit the number of properties BNZ can sell as part of a dispute between her ex-husband and former NBR Rich Lister Greg Olliver. Campbell Gibson reports.

Statistics NZ will spend $4 million informing the public they will no longer receive paper forms in the nation’s first “online-first” census. Chelsea Armitage reports.

Papakura MP Judith Collins’ labelling of the Independent Māori Statutory Board as an “unaccountable monster” that thinks it is “outside the law” has hit a nerve with Māori, Auckland councillors and mayoral contenders.  Sally Lindsay has the story.

Gaps in Official Information Act responses raise doubts about the vigilance of the government’s tertiary training overseer, writes Tim Hunter in Hunter’s Corner.

Buller Electricity’s takeover offer valuing Pulse Energy at a little over $42 million is now a fait accompli, with Buller having moved to the compulsory acquisition stage. But, as Shoeshine points out, the tipping point ensuring Buller would be successful was an informal decision just before Christmas by the Takeovers Panel.

In property news this week, Sally Lindsay says diversifying into different sectors is coming home to haunt some of the big Australasian retailers.

And Auckland’s central city office vacancy rate has declined to 7.8% –the lowest for more than a decade, Chris Hutching reveals.

Long-time A2 Milk investors’ exceptionally happy Christmas period, writes Jenny Ruth.

What you can count on Winston Peters for – being obstreperous, unpredictable, and occasionally wilfully contrarian, writes Rob Hosking in Order Paper.

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

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