Detroit to default

'Insolvent' Detroit to default on some of $18.5bn debt, says emergency manager

Ratings services downgrade city's status after Kevyn Orr asks creditors to take around 10 cents in the dollar

the Guardian,

15 June, 2013

The "insolvent" city of Detroit will default on some of its $18.5bn debt and has asked creditors to accept a fraction of money owed to them, in an attempt to stave off the largest municipal bankruptcy in US history.

In a plan unveiled on Friday by the city's emergency manager, Kevyn Orr, creditors were asked to take around 10 cents in the dollar, a move that will kick-start negotiations. Orr also announced that the city would stop making certain payments in order to save money. A $34m instalment on debt due to be issued on Friday was stopped as part of the plan. Orr said the moratorium on payments could save Detroit up to $25m every month – money that could go towards essential services.

Orr said that $1.25bn would be invested over the next decade to improve infrastructure, fix crumbling buildings and update the city's computer systems.

Two ratings services, Fitch and Standard and Poor's, reacted by downgrading Detroit's status to a level reserved for borrowers about to default.

Some creditors emerged from meetings with Orr complaining that he was expecting too much. One bond-holder told Reuters: "It is an unprecedented amount to ask." But Orr insisted that shared sacrifice was needed if the "insolvent" city was to rebound from financial crisis.

Detroit is amongst the poorest large cities in the US, with the highest rate of violent crime. A population decline of around 700,000 has contributed to its problems, resulting in a slump in tax revenue and the blight of deserted properties.

In a statement, Orr said: "Financial mismanagement, a shrinking population, a dwindling tax base and other factors over the past 45 years have brought Detroit to the brink of financial and operational ruin." He added that the city was "tapped out" and that creditors needed to shoulder the sacrifice.

The financial plan is aimed at helping Detroit avoid filing for Chapter 9 municipal bankruptcy. Whether the city is able to do so will largely depend on the course of negotiations between the emergency manager, creditors and labour leaders in the coming weeks.

Orr, a bankruptcy attorney brought in by the state of Michigan, said on Friday that he believed the odds remained at 50/50, regarding whether the city would have to file for bankruptcy.

From roads to schools, Michigan budget touches you

15 June, 2013

LANSING, Mich. (AP) — The state budget that takes effect in 3 ½ months will impact everything from Michigan's roads and the school calendar to its hunters.

The Republican-crafted spending plan was signed by Gov. Rick Snyder on Thursday.

It includes the first significant increase in hunting and fishing license fees since 1997. The plan also makes school districts provide at least 175 days of instruction, five more than the current year.

Overall spending will rise about 1 percent. Universities can't raise tuition more than 3.75 percent without risking some funding.

Another highlight includes a significant boost in money for road and bridge repairs. But it's a one-time expenditure and about a quarter of what Snyder says is needed year in and year out to get Michigan's roads up to par.

http://www.sfgate.com/news/article/From-roads-to-schools-Michigan-budget-touches-you-4602212.php

Bills to dissolve Michigan schools in financial trouble are put on fast track

Detroit Free Press,

12 June, 2013

Bills that would allow the state to dissolve financially insolvent school districts as a last resort are being fast-tracked through the Michigan Legislature. But the bills could come with a hefty price tag for the state.

Three districts — Buena Vista, Inkster and Pontiac — were cited during a legislative hearing Tuesday as being likely candidates for dissolution.

“It’s imperative that we move forward with this” legislation, Rep. Bill Rogers, R-Brighton, said before a joint meeting of the House and Senate education committees. “This is, unfortunately, a necessary, proactive approach to make sure we can accommodate the kids.”

Rogers and Rep. David Rutledge, D-Ypsilanti, have introduced bills that would allow state Superintendent Mike Flanagan and Treasurer Andy Dillon to dissolve a troubled district if it fails to submit a viable plan to eliminate its deficit, doesn’t submit a plan at all or cannot continue to offer an education program to students.

If the district is dissolved, the students would be assigned to nearby school districts. But the district’s debt would remain. The dissolved district would continue to collect the local millage and use that revenue to pay off the debt.

“The debt burden would not follow the students into the receiving district,” Rutledge said.

Until the debt is paid off, the state School Aid Fund would have to cover per-pupil payments to the district that takes in the students. A House Fiscal Agency analysis released Tuesday estimates that if the Buena Vista, Inkster and Pontiac districts were to be dissolved, the state aid fund would need to kick in $34 million annually in per-pupil funding.

Michigan has 55 school districts and charter schools operating in a deficit, the largest number ever.

Some of the most urgent problems are in the three districts cited. The Buena Vista School District in Saginaw County closed for two weeks because it couldn’t pay staff. Many of its problems stem from a drastic drop in enrollment and having to repay hundreds of thousands of dollars this year for a program the district no longer runs.

In Pontiac, the Local Emergency Financial Assistance Loan Board formally found last week that “probable financial stress” exists in the Pontiac school district, which is dealing with a deficit of nearly $30 million. The declaration is the next step toward the possible appointment of an emergency manager, a consent agreement, a neutral evaluation process or Chapter 9 bankruptcy.

And Inkster Public Schools, which is having cash-flow problems, is moving forward with ceasing to operate its high school and turning it over to a charter management company.

Some lawmakers expressed frustration that the bills are being fast-tracked in the next two weeks, before the Legislature takes its summer break. “I just hate rushed votes like this,” said Rep. Tom McMillin, R-Rochester Hills.

The tight time frame is also one of the reasons some aren’t willing to support the bills.

Vickie Markavitch, superintendent of Oakland Schools, the intermediate school district for Oakland County, told lawmakers that there are too many issues to be resolved.

“I don’t know if it can be crafted well and passed in time for implementation for this fall,” Markavitch said. “There are some questions, some issues, some details we think this legislation has yet to address.”

The legislation is getting the backing of Gov. Rick Snyder. Dick Posthumus, a Snyder adviser who spoke at the hearing, said the Buena Vista and Inkster districts “are not likely to have money to open schools in the fall.”

“There’s no place for the kids to go to school. We need to take emergency action,” Posthumus said.

Flanagan, in a statement read to lawmakers Tuesday, said he’s willing to take on the responsibilities the legislation would give him, saying, “It will help keep our state’s children in schools and their educations continuing.”

Concerns were raised about residents in the communities where districts are dissolved not having elected representation. And many of the lawmakers who spoke questioned why the Michigan Department of Education and the state Treasury Department had not acted sooner to address issues in the struggling districts.

“Someone has to be held accountable for this,” McMillin said. “We need to make sure this doesn't happen again.”

Lawmakers clashed during the hearing, as Democrats on the committees tried to make the point that cuts in funding are a key reason many of these districts are struggling.

But Rep. Pete Lund, R-Shelby Township, said that’s not the problem.

“We’re here because of mismanagement, gross mismanagement. That didn’t take place over one year or two years.”

Sen. Coleman Young, D-Detroit, said funding can’t be ignored.

“Long term, this is a conversation about funding. Quite frankly, we have to decide long term how we’re going to fund our children’s future.”

Philadelphia Closes 23 Schools, New $400 Million Prison Being Built

Cryptogon,

June 15th, 2013

Via: Opposing Views:

Philadelphia officials are closing almost two dozen schools and decimating the budgets of the remaining schools under a so-called “doomsday” education plan.

However, amid all these cuts for education, the state of Pennsylvania is building a new $400 million prison for Philadelphia.

Budget cuts meet climate change - the face of collapse

This is the face of collapse – economic collapse, energy collapse and climat collapse. At a time when the country is facing more storms and floods than ever in in its history budget cuts are forcing authorities to turnoff the flood alarm system.

How more obvious does it have to get?

US Flood alarms threatened by budget cuts

The U.S. flood alarm system is about to get smaller.

CNN Money

10 May, 2013

On May 1, the U.S. Geological Survey began turning off some 150 stream gauges that monitor water levels on the nation's rivers and streams, thanks to the federal spending cuts, also known as sequester.

It's a one-two punch for the flood monitoring system -- the agency could be turning off another 200 gauges because of funding cutbacks at states, cities and towns that are struggling with their own budget crises.

Water science experts warn that turning off the gauges will weaken the monitoring system that helps communities prepare for floods.

"We're trying to be very careful about which ones we say aren't going to receive funding," said Michael Norris, coordinator for the National Streamflow Information Program. The group has been been working for months to figure out which gauges are the least critical. "The last thing we want to do is put anyone's life or property in danger."

The gauges allow the National Weather Service to forecast floods and help the U.S. Army Corp of Engineers manage its water reservoirs.

"Without these observations, (our) forecast and warning operations will be impaired, reduced, or discontinued on a location-by-location basis," said Christopher Vaccaro, a weather service spokesman.

The cuts couldn't come at a worse time. Scientists have pointed that climate change has led to record floods recently, similar to the one that plagued Midwestern states two weeks ago.

Climate change continues to lead to "more unusual weather events than we used to have," said Donald Wuebbles, a professor of atmospheric sciences at the University of Illinois at Urbana-Champaign.

In fact, climate change was one reason President Obama proposed spending an additional $7.2 million to fund an extra 400 stream gauges next year, according to budget documents.

Floods kill 95 people each year and cause about $8 billion in property damage, according to the National Weather Service. Last October, Superstorm Sandy killed 72 people and caused $50 billion in damage.

The National Stream Flow Information Program is one of thousands of federal programs facing federal budget cuts. The program took a $2 million direct hit to its 2013 funding.

The Geological Survey is facing its own budget cuts and may have to furlough employees later this year. It's been under a hiring freeze and has cut back on employee travel and trimmed contracts for maintaining and upgrading its databases.

The water gauge instruments aren't cheap. They cost on average $16,000 apiece and upkeep is expensive -- officials must check on the instruments about six times a year to make sure they are running properly.

The water level measurements are not just used by the weather service. Boaters, kayakers and other water enthusiasts keenly follow the water levels that the agency broadcasts online.

The decision to turn off any one gauge is a tough one because of the implications, say water experts at state offices.

In the early 1990s, federal budget cuts forced more than 350 gauges to be turned off, including one on the Licking River at McKinneysburg, Kentucky.

In 1997, thunder storms caused record-breaking floods in the Licking River of up to 52 feet, which inundated the town of Falmouth and killed five people.

Better data on that river might have saved lives, officials have said.

"In that particular case, loss of that stream gauge was devastating," Norris said.

So far, gauges have been shut down in states like Kansas, Nebraska and Wyoming.

In Iowa, three gauges will be turned off next week. Greg Nalley, associate director for Iowa Water Science Center, said he worked closely with the National Weather Service to find the least critical gauges. Those three were chosen, because other stream gauges exist upstream or downstream on those waterways.

"We don't like losing any of them, but we haven't got a choice," Nalley said.

US sequestration cuts

FAA to Close 149 U.S. Airport Towers After Budget Cuts

The U.S. will close 149 air-traffic control towers run by contractors at small- and mid-sized airports beginning on April 7 as a result of automatic budget cuts at government agencies.

Bloomberg,

23 March 2013

The Federal Aviation Administration spared 24 towers on its original list of 173 subject to closing, it said in an e-mail yesterday. All the towers being shut down are run by private companies, not the government as at larger facilities.

Attachment: The 24 FAA Towers Spared

The shutdowns will be phased in over four weeks. About 750 to 1,100 controllers and supervisors may lose their jobs, said Spencer Dickerson, executive director of the Alexandria, Virginia-based Contract Tower Association.

“Unfortunately we are faced with a series of difficult choices that we have to make to reach the required cuts under sequestration,” Transportation Secretary Ray LaHood said in an e-mailed statement.

Airports losing their towers averaged 54,000 flights in 2011, the most recent year for which FAA data are available. Four had fewer than 20,000 landings and takeoffs, according to agency data.

The airports losing their towers have mostly general- aviation traffic, with smaller amounts of charter and military flights. Of the group, 13 averaged at least one airline arrival and departure per day in 2011, according to the FAA.

Central Illinois Regional Airport in Bloomington, Illinois, had the most airline flights of those airports with 4,835, according to the data. Pinnacle Airlines Corp. (PNCLQ) operates flights there under contract to Delta Air Lines Inc. (DAL)

Closing Impact

Florida is set to lose 14 towers, the most of any state. They include facilities at Naples Municipal, Boca Raton and Ocala International airports. Texas will lose 13 and California 11.

Among the towers being spared are ones at airports in San Carlos, California; Jacksonville, Florida, and Meridian, Mississippi. The FAA spared the 24 facilities because airport operators convinced the agency that closing them “would have a negative impact on the national interest,” according to the agency statement.

Planes, including airliners, can continue to fly to airports without functioning towers. Most of the roughly 5,000 U.S. public airports don’t have towers. Instead of being guided by controllers, pilots radio each other to coordinate landings and takeoffs, according to FAA procedures.

Lawmakers React

Advocates for pilots and airports said shutting the towers will harm safety and impose economic hardship on businesses such as flight schools that rely on controllers to guide planes.

“The White House does not understand the consequences of these actions, or they do and they simply do not care,” Craig Fuller, president and chief executive officer of the Aircraft Owners and Pilots Association, a Frederick, Maryland-based advocacy group, said at a town-hall meeting March 21 at DuPage Airport in West Chicago, Illinois. “Either way, this approach is dangerous and should not stand.”

Some Republican lawmakers said President Barack Obama’s administration was using the tower cuts for partisan gain.

“The FAA must reevaluate its decision, and the White House must put an end to its political charade,” Representative Jim Sensenbrenner, a Wisconsin Republican, said in a release.

Representative Bill Shuster, a Pennsylvania Republican who is chairman of the House transportation committee, and Senator John Thune of South Dakota, the top Republican on the commerce committee, wrote to LaHood asking for more information on the closings.

FAA’s Budget

FAA Administrator Michael Huerta told Congress Feb. 27 there wasn’t a choice on whether to shutter most private towers. The private tower program is one of the agency’s largest contracts, he said.

The 15,000 controllers employed by the FAA will be forced to take one unpaid day off every two weeks starting April 21, which will aggravate delays at some of the busiest U.S. airports, including Chicago O’Hare and Atlanta’s Hartsfield- Jackson, he said.

The FAA must cut $627 million out of its $16 billion budget by the end of the fiscal year on Sept. 30, Huerta said.

Dickerson said it was unfair for the government to shut down more than half the 251 private towers while sparing government-run facilities. The association represents firms that run the towers.

“Controllers at contract towers perform a host of important functions, including separating aircraft, issuing safety and weather alerts, and assisting with military, emergency response, and medical flights,” Dickerson said.

Large Carriers

Airlines for America, a Washington trade group representing large carriers, said its members have no plans to cancel or suspend flights because of the closures, Jean Medina, the group’s spokeswoman, said in an e-mail.

Airports pay a portion of the operating costs at 16 private towers that will remain open through Sept. 30, and other local officials can use that option to keep their towers open, according to FAA rules.

No FAA air-traffic facilities will be shut down for at least a year, Doug Church, spokesman for the National Air Traffic Controllers Association union, said in an e-mailed statement.

The FAA’s union contract requires that controllers get at least a year’s notice before a facility is closed, Church said. The agency Feb. 22 issued a list of 49 FAA towers that were subject to closing in addition to the private towers.

Union President Paul Rinaldi said in an e-mail the tower closings were a poor way to balance the budget.

“Ultimately, the partisan posturing in Washington that led to sequestration is the reason for today’s decision and its destructive effects on aviation,” Rinaldi said.

British wildlife

I fear this is just the beginning.

Budget cuts may trigger 'perfect storm' of threats to UK wildlife

Conservationists voice concern as environmental policy faces massive shake-up

the Independent,

3 Febraury, 2013

Britain's countryside and wildlife face a looming "perfect storm" of threats to environmental protection, conservationists warned tonight.

The threats are headed by the possibility of massive cuts to EU funding for farmland wildlife schemes, which provides hundreds of millions of pounds annually to help British farmers look after the often-declining species on their land, from birds to butterflies to bumblebees.

The cuts may be outlined this week when EU leaders, including David Cameron, meet in Brussels to decide their budget for the next seven years – a budget which seems certain to be slashed.

But also greatly concerning environmental campaigners is the real possibility that the Government’s wildlife watchdog, Natural England, will be swept away and merged with the much bigger Environment Agency.

If this happens, it will be the first time since 1949 that there will no longer be a dedicated official body acting as a champion for habitats and species.

At the same time, local authorities are making swingeing cuts to their own environmental services and staff, an extensive new road-building programme is threatening valuable wildlife sites, and Conservative ministers are looking again at the possibility of undoing powerful EU wildlife laws which provide the strongest countryside protection of all in Britain.

Any of these threats would concern wildlife lovers, but the fact that they are all coming together has senior conservationists seriously alarmed.

“We may be witnessing the greatest shake-up in environmental protection for a generation,” said Martin Harper, director of conservation at the Royal Society for the Protection of Birds (RSPB).

The greatest concern among environmentalists centres on possible EU funding cuts. Funding for agri-environment schemes from the Common Agricultural Policy (CAP) is the biggest single pot of money for wildlife protection available in Britain.

About £450m is spent annually on these “Environ- mental Steward- ship” schemes in England alone, 75 per cent of it coming directly from Brussels (with the rest put in by Whitehall), with another £70m-plus spent on similar schemes in Scotland, Wales and Northern Ireland.

They have made a real difference in enabling farmers to repair much of the damage caused by intensification of agriculture – bringing back birds whose populations have been devastated, such as the skylark, and in particular the rare cirl bunting, whose recovery would have been otherwise impossible.

But when EU heads of government meet in Brussels on Thursday they seem certain to reduce the Union’s overall budget. Reduced funding for CAP is a likely consequence, with the parts of the programme that protect farmland wildlife particularly vulnerable. During the November budget negotiations, EU leaders discussed cuts of 13 per cent.

Analysis by the RSPB, however, suggests cuts might be as much as 23 per cent over the whole budget period, which the society thinks could prove disastrous.

The other threats are causing similar concern. The Government’s public consultation exercise on the future of Natural England closes today and many observers think it will be swallowed by the Environment Agency, meaning the independent voice for wildlife and landscapes will disappear with the larger body.

Local authority cuts to environment services and staff include proposals from Somerset County Council to cut the whole of its countryside service, and major losses of countryside rangers in London boroughs such as Ealing, Barking and Dagenham, while the Government’s new roads programme will, according to the Campaign for Better Transport, impact on four National Parks, seven Areas of Outstanding Natural Beauty, 39 Sites of Special Scientific Interest, three National Nature Reserves, 54 ancient woodlands and 234 local wildlife sites.

It is also clear that some members of the Government still wish to weaken the Habitats Regulations, which transpose EU wildlife laws – setting up Special Protection Areas and Special Areas of Conservation – into British law. These laws form the toughest environmental protection of all in the UK. In November 2011 the Chancellor, George Osborne, said the rules “place ridiculous costs on British business”.

In his major speech on Europe last month, Mr Cameron hinted that these rules might be on the table during his planned renegotiation of Britain’s relationship with the EU: “We need to examine whether the balance is right in so many areas... including on the environment,” he said.

If the cap fits: EU wildlife funding

The European Union money for wildlife matters enormously.

The agri-environment schemes funded by the CAP have spread extensively, and latest figures show they now cover a record 6.5 million hectares of England, which is 70 per cent of the farmland. About 60,000 farmers take part in the schemes, which are split into the basic Entry Level Stewardship and the more ambitious (and better rewarded) Higher Lever Stewardship, both of which began in 2005.

The HLS schemes in particular are making an enormous difference in bringing many species that had nearly vanished back to the countryside. The cirl bunting in Devon is one example, along with the marsh fritillary butterfly which is returning to parts of the West Country.

Air new Zealand

Air NZ axes Hong Kong to London

Air New Zealand is axing flights between Hong Kong and London in a bid to recover profits.

Stuff,

6 November, 2012

The service will be cut from March next year after a review found it was not likely to become profitable in the foreseeable future, the airline says.

Around 70 London-based cabin crew jobs are expected to be slashed.

The move will enable more capacity to be redeployed to North American destinations such as Los Angeles and San Francisco, chief executive Rob Fyfe said.

Last month the company announced a further 5,000 return seats to its North American routes through to the end of June 2013.

Customers with tickets between Hong Kong and London from March 4, 2013 will be re-booked, in most cases onto Cathay Pacific.

Around 8000 customers are affected. Koru members will still receive lounge access and benefits.

‘‘We wanted to strengthen our presence in Hong Kong which is an important market and vital gateway into Mainland China for Air New Zealand,’’ Fyfe said.

‘‘In line with this we have received approval from the New Zealand Ministry of Transport to form a strategic agreement with Cathay Pacific effective from 12 December 2012.”

Air New Zealand began flying services between Hong Kong and London in October 2006 and operated between 5-7 times a week.

Fyfe told analysts last year that no stone would be left unturned as part of the comprehensive review of its long-haul business, which was losing $1 million a week, including the possibility of pulling out of London.

Earlier this year Fyfe ruled out axing the flagship route, saying Air NZ would respond by better matching capacity to reduced passenger demand on the London service via Hong Kong and Los Angeles.

Australian roads - deteriorating infrastructure

Australia:Road repairs and safety under threat: budget cut hits VicRoads

BUDGET cuts have forced VicRoads to scrap its road safety division and ditch its long-held strategy for maintaining the state's roads, even though the strategy was designed to avoid the need for major, expensive repairs.

the Age,

6 November, 2012

It has slashed in half its road repaving commitments for the coming year, expecting to resurface just 3.2 per cent of Victoria's roads. A previous strategy to resurface 7 per cent each year was explicitly designed to reduce repair costs.

VicRoads has also scrapped its Road Safety and Network Access division, as about 450 staff depart under the state government's public servant redundancy program.

The division managed strategies for reducing road trauma and improving truck freight routes. Remaining road safety staff have been scattered across the organisation.

David Shelton, VicRoads' road safety co-ordinator, said road safety work would not be diminished.

''Improving road safety and reducing the road toll remains a key priority for VicRoads,'' Mr Shelton said.

According to VicRoads' website, the strategy, called ''Stitch in Time'', has since 1993 ''ensured that regular and timely maintenance has been carried out to prevent roads deteriorating to the point where they require major work''.

''This helps to ensure roads are smoother for all road users, and is also a cost-saving measure, preventing the need for expensive major rehabilitation.''

VicRoads spokesman Travers Purton said the general principles of Stitch in Time still applied and road resurfacing was happening where it was needed most.

''This means that, from year to year, funding for a region may increase or decrease depending on how works are prioritised across Victoria,'' Mr Purton said.

Months of heavy rain have damaged the state's roads and the Baillieu government partially reversed its cuts to road maintenance last month when it announced a $45 million ''boost'' for the worst affected roads. First on the list was the Henty Highway in western Victoria, where $1.2 million will be spent fixing a badly potholed stretch of road near Branxholme.

VicRoads engineers have welcomed the extra funding, but warned it was likely to be a Band-Aid solution.

''At a time when engineers are advising the need for greater investment in roads, we are seeing patching replace repairing, engineers being cut from VicRoads and budgets being constrained,'' said Bede Payne, the Victorian director of the Association of Professional Engineers, Scientists and Managers Australia, which represents VicRoads engineers. ''This kind of cost-cutting will cost Victorian taxpayers in the long run.''

Cars are also being damaged by hitting potholes.

Mornington Peninsula resident Selina Gilmour recently made an insurance claim against VicRoads after sustaining minor damage to her car for the fourth time this year, she says from hitting potholes.

''I have been doing the run from Balnarring to Balwyn for six years and I've noticed this year the holes have increased significantly,'' Ms Gilmour said.

VicRoads rejected her claim because each incident caused less than $1220 damage, its minimum threshold for compensation. It referred her claim to the Mornington Peninsula Shire, which also knocked her back. It said it had inspected that road and found no problems.

''There is no evidence that the council had received any complaints regarding a pothole prior to this event,'' it wrote. ''You should be aware that potholes can form in the road surface extremely quickly and with very little indication that the roadway is breaking down.''

Australian budget cuts

Australia to Announce Cuts at Budget Review Tomorrow, Swan Says

The Australian government will announce “significant” cuts at a budget update tomorrow as it remains committed to restoring a surplus, according to Treasurer Wayne Swan.

Bloomberg,

21 October, 2012

“The toughest conditions in the global economy in generations have cut a swathe through traditional sources of revenues,” Swan said today in his weekly economic note. “This will require more savings to be found. The savings will be significant.”

The federal government is preparing to reveal A$4 billion ($4.1 billion) in spending cuts and other measures, the Sydney Morning Herald said yesterday. Increased charges for visa applications will boost revenue by about A$500 million, the Sunday Telegraph reported today, without saying where it got the information.

Prime Minister Julia Gillard’s government has committed to restoring a budget surplus this fiscal year after four years of deficits even as growth slows. Australia’s economy is succumbing to a slowdown in world growth that the International Monetary Fund predicted this month would decelerate to the weakest pace since the 2009 recession.

“I have no doubts whatsoever about the critical importance of our budget strategy,” Swan said. Returning to surplus was “appropriate” because of the Australian economy’s strong fundamentals including low unemployment, inflation in check and a robust investment pipeline, he said.

Abandon Commitment

The government could abandon its surplus commitment and consider rate cuts if the global economy gets worse, the International Monetary Fund said Sept. 20. The country recorded its widest trade deficit since 2008, with exports falling for the third straight month in August, the Bureau of Statistics said in an Oct. 3 report.

Australia, the biggest exporter of iron ore and coal, has managed to avoid recession for 21 years as China’s infrastructure-led economic stimulus fueled demand for commodities. Slower demand growth for commodities this year has weighed on prices, denting projected tax revenues. The price of iron ore has fallen 14 percent since July 1.

Radio NZ story buried - yet again

Another example of major cutbacks.

It is difficult to escape the conclusion that there is a attempt to ensure that certain stories never see the light of day, while escaping the accusation of 'censorship'

I heard this item on the radio once yesterday. It was never repeated and did not make it onto the Radio New Zealand website.

It is not, as far as I can see, in the print media and it took quite a search to find this item.

I will leave it up to you to make up your mind whether this story is trivial and of no interest to New Zealanders.

New police projects but no new money

Police have been praised for their work but told they will have to do better without any more money in the near future.

3News,

26 April, 2012

In a speech to the Police Association's annual conference in Wellington on Wednesday, Police Minister Anne Tolley noted falling crime rates and a record low road toll in 2011, despite no new money in the police budget.

She warned police will have to keep operating with tight purse-strings for some time yet, even as they roll out new technology and policy programmes, and establish new file management centres, criminal justice support units and investigation support units in each police district.

"Change can be difficult, and that is especially so when there is no extra money available, or on the near horizon," Mrs Tolley said.

While there will be challenges, she says police need to look at ways to "work smarter and better" and stay focused on "delivering the very best service we can for taxpayers".

That includes meeting new public service targets, such as crime-reduction goals and fewer court appearances for young people.

Mrs Tolley also emphasised the government's four economic priorities, including managing finances, boosting the economy and delivering better public services, to support her pitch to the Police Association, which has been critical of a lack of new funding and resources for officers.

More 111 calls exceed two-minute answer time

Radio NZ,

18 October, 2012

The number of 111 calls that could not be answered immediately by police has been steadily increasing throughout the year.

A major review of the service was sparked by problems identified after Auckland woman Iraena Asher disappeared at Piha in 2004, after having contacted emergency services.

Figures for this year through to August show a steady increase in the numbers of calls that were abandoned.

Calls not answered within two minutes are classed as abandoned and are manually retrieved by Telecom and put back at the front of the 111 queue.

In January 62,400 calls were answered and 88 abandoned.

In August, just over 55,206 calls were answered and 139 abandoned.

The Labour Party says budget cuts mean the police are now stretched, and it's worried the 111 service will continue to erode as a result.