The new contracts include all public sector agencies, councils and up to 2500 schools.

“The contracts we are announcing today will mean we have achieved a total saving to the Government of $293 million from the six contracts that have been completed to date in the Government Procurement Reform Programme,” Mr Joyce says.

“Saving more than $108 million on legal costs over the next six years shows the negotiating power of the whole of government when contracting services. We’ve shaved an average of 18 percent off the $100 million annual external legal services bill which is a great result.”

The legal services contract has produced a 39-strong panel of law firms, large, medium and small, to provide external legal services across the Public Sector, including Crown Law. Robust monitoring of the firms on this contract, will allow agencies for the first time to compare each law firm’s ongoing value for money when considering who to choose.

In addition, the first contracts for air travel have been awarded to Air New Zealand, Emirates, Lufthansa and Qantas for up to seven years. Negotiations are continuing
with one other airline.

Air New Zealand will be the preferred supplier for domestic air travel – the largest area of government travel spend. The remaining suppliers (with Air New Zealand) will provide coverage for international flights. Point of sale discounts will now be available to all public sector agencies.

“Air travel is a significant cost for Government and reducing it by more than $70
million over the life of this deal is another great result”, Mr Joyce says.

These contracts are part of the public sector-wide Government Procurement Reform Programme aimed at making Government buying as efficient as possible, and reducing costs.

These two new contracts join last year’s first set of four all-of-government contracts for office consumables, passenger vehicles, print devices and desktop and laptop computers. These contracts remain on track to deliver $115 million in savings over five years.

“Every dollar the Government saves through sharper pricing is a dollar that can be spent on improving public services, building essential infrastructure and keeping our debt levels low,” Mr Joyce says.

For more details on government procurement and all-of-Government contracts visit www.procurement.govt.nz.

“Geothermal energy is one of our most important renewable energy resources with huge potential for growth,” said Dr Mapp.

“This recognition of our geothermal research programmes will allow our scientists to collaborate with an elite group of researchers in the United States, Australia, Switzerland and Iceland.”

Dr Mapp saw the potential of geothermal technology first hand at the recent Clean Energy Expo at the new Clean Energy Centre in Taupo.

“There I met scientists from our research organisations who are committed to finding new ways to harness New Zealand’s extensive geothermal fields.”

The International Partnership for Geothermal Technology (IPGT) seeks to develop advanced, cost-effective geothermal energy technologies through international research co-operation.

Geothermal electricity generation in New Zealand grew by 21 percent in 2010, and accounted for 13 percent of total electricity generation that year. There is significant potential for this to grow with three large geothermal projects in the pipeline by 2020.

“Innovation and clean energy is a big part of enabling New Zealand to grow the economy,” said Dr Mapp.

“This new international partnership will help keep us at the forefront of technology developments such as enhanced geothermal systems.”

New Zealand will be formally admitted to the IPGT in Melbourne on 16 November.

He says this is one of the final procedural steps in the roll out of ultra fast broadband to 75% of New Zealanders where they live, work and study.

The structural separation of Telecom paves the way for its network arm Chorus to be separated into a standalone company. Chorus is one of four companies rolling out New Zealand’s ultra-fast broadband network in partnership with the Crown.

Mr Joyce says structural separation is a major step for Telecom and is the most significant telecommunications industry change in the past 20 years.

“This has been a very successful process, which will result in ultra fast broadband services for New Zealanders at very competitive prices.”

Chorus will be set up as a wholesale-only provider of ultra-fast broadband, along with the Government’s other partners Enable Networks, Ultra-fast Broadband Limited and the Whangarei Local Fibre Company.

Around 70% of the ultra-fast broadband rollout will be provided by Chorus.  It has already begun the rollout in Auckland and Wellington.

With the shareholder voting now completed, the process of separation is to be completed by way of a Court-approved demerger. This is expected to occur by the end of November.

Background

When Telecom bid for the ultra-fast broadband initiative in January 2010, it began the process of structural separation.

Negotiations with Crown Fibre Holdings took place throughout 2010 and early 2011, with the announcement of Chorus as an ultra-fast broadband partner in May 2011.  Alongside this, the Ministry of Economic Development has carried out a significant process of amending the telecommunications regulatory regime to adapt it to structural separation.

The Telecommunications (TSO, Broadband and Other Matters) Amendment Act 2011 was passed into law on 30 July.

“The food and beverage industry accounts for more than half of our total exports and employs one in five New Zealanders, directly or indirectly. Full knowledge of the industry and its performance internationally is key to lifting export growth,” says Mr Carter.

The reports released today cover beverages, processed foods, meat, dairy, produce, seafood and nutraceuticals and foods for health. Further reports analyse global markets, provide an industry guide for investors and look in-depth at the Singapore market.

“New Zealand’s reputation as a trusted producer of high-quality food and beverages is our success story. This project will give businesses, investors and policymakers the information they need to enhance this reputation even further.”

Mr Carter says the research identifies both strengths and weaknesses and provides potential strategic directions for each sector.

“This will stimulate thinking and enable government and industry to work together to resolve issues and drive export growth.

“The world needs food, and it’s common sense that this is produced in the most suitable locations by the most efficient producers. New Zealand has a clear advantage in quality food production, and this project will help strengthen our position,” says Mr Carter.

The project will run for five years, updated annually, and new reports and market information will be added.

The access criteria for four new sub-funds, put in place to support the development of more social and affordable housing, are being released today.

The four funds are:
Growth fund – Pūtea Whakatipu
Māori fund – Pūtea Māori
Niche fund – Pūtea Kaupapa Motuhake
Rural fund – Pūtea Taiwhenua

“These funds are part of Government moves to significantly increase the volume of social and affordable housing that’s provided by other, non-Government organisations,” says Housing Minister Phil Heatley.

The funds will be distributed through a considered tender approach by the Social Housing Unit (SHU), Te Wāhanga Kāinga Pāpori. The SHU was set up as a semi-autonomous unit within the Department of Building and Housing in July this year.

“This is an exciting opportunity,” says Mr Heatley.

“Providers of niche, social and affordable housing can now see the criteria they must meet to access funding. Although similar to the previous Housing Innovation Fund (HIF), the criteria were simplified, and a number of bureaucratic processes removed, to ensure that maximum building gain can be wrung out of every dollar.”

“This drive to increase the pool of social and affordable housing coincides with Housing New Zealand’s current push to significantly upgrade their old housing stock, better use large sections, and ensure state housing is available for those most in need,” says Mr Heatley.

The SHU will also be active in the supply of Crown land to social housing providers and, where appropriate, any surplus state housing stock. The aim is to give providers the leverage they need to significantly grow their ability to provide affordable housing.

“We want to ensure the Government’s investment delivers the greatest possible increase in the volume of niche, affordable and social housing,” Mr Heatley says.

Summary information about the funds has been posted on the Social Housing Unit website at www.socialhousingunit.govt.nz, and the full tender documents are available through the Government Electronic Tenders Service (GETS) at www.gets.govt.nz

The Minister will attend the Foreign Ministers’ meetings and represent the Prime Minister at the Leaders’ meetings.

“It will be an important meeting for the Commonwealth as it debates what reforms are needed to be more effective,” said Mr McCully.

“The Commonwealth can also make a useful contribution to the Pacific. Since New Zealand is currently the Chair of the Pacific Islands Forum I will brief Commonwealth Leaders on the outcome of our recent successful meeting in Auckland,” he said.

The Minister will have meetings with Caribbean and African Commonwealth members, as well as with the European Union.

He will also meet with Vanuatu Prime Minister Sato Kilman to sign a Joint Commitment for Development, which sets out the priority areas for New Zealand’s aid and development effort in Vanuatu.

CHOGM is a biennial meeting and was last hosted by Trinidad and Tobago in 2009. Her Majesty the Queen will attend.

Treasury today released the Pre-Election Economic and Fiscal Update (PREFU) which forecasts average annual growth of almost 3 per cent between 2012 and 2016, more than 150,000 new jobs over the forecast period and strong growth in wages and household incomes.

“The Government has put in place a comprehensive programme over the past three years to improve the economy’s competitiveness and build faster growth.

“The economy has now grown in eight of the last nine quarters and growth in the first half of this year has been stronger than Budget 2011 forecasts. This has contributed to the creation of 43,000 new jobs in the past year – 20,000 more than forecast at the time of the Budget,” Mr English says.

“A solid growth outlook, combined with the Government’s responsible economic management, has ensured we remain on track to move from a forecast deficit of $10.8 billion in the current year to a surplus of $1.5 billion in 2014/15.

“Getting back to surplus as soon as possible is one of the most important things the Government can do to lift national savings and rebalance the economy towards our productive sectors.

“However, while New Zealand is relatively well placed, the global waters are getting rougher. This is reflected in Treasury’s forecasts for trading partner growth, which have been revised downwards.

“As a result, growth is forecast to peak slightly lower than expected in the Budget, but off a higher base. Growth of 3.4 per cent is still expected in the March 2013 year and average almost 3 per cent a year across the forecast period.

“That growth outlook underpins Treasury’s forecasts of more than 150,000 new jobs and average annual wage growth of almost 4 per cent between 2012 and 2016. In the Budget, Treasury predicted an extra 170,000 new jobs over the forecast period. The new estimate of 150,000 jobs recognises that actual jobs are already 20,000 ahead of Budget forecasts.”

The lower global growth outlook is expected to keep interest rates lower for longer – reducing financing costs for mortgage holders, businesses and the Government.

“While the outlook for many developed countries has weakened, New Zealand is expected to benefit from our growing trade links with Australia and the faster-growing Asian economies, which now take about 60 per cent of our exports.

“The Canterbury rebuild will also support growth, with Treasury revising its damage estimate from the earthquakes from $15 billion to $20 billion, meaning the rebuild will be longer and contribute more to economic activity.

“Household saving is expected to continue to strengthen after becoming positive in the past year for the first time in over a decade. This will have a dampening effect on growth in the near term, but build a stronger platform for future growth.

“This year’s PREFU is in stark contrast to that delivered three years ago, which revealed a decade of deficits and sharply rising debt. By December 2008 those forecasts had turned into never-ending deficits and ever-rising debt.

“The Government has worked hard to turn those forecasts around, while managing the many challenges we have faced along the way.

“It’s crucial we stick to our programme of responsible financial management and policies that build a more competitive economy if we are to make the most of the opportunities that lie ahead,” Mr English says.

“I am delighted to be able to welcome David Cameron to New Zealand. His visit gives us an opportunity to demonstrate the strength and maturity of the relationship between the United Kingdom and New Zealand,” Mr Key said.

Mr Cameron will visit New Zealand before attending the Commonwealth Heads of Government Meeting in Perth. His programme will include a formal bilateral meeting with Mr Key, a short visit to Christchurch, and other events which will be advised in coming days.

Mr Key said he was looking forward to having Mr Cameron in New Zealand for what would be an important visit.

“The relationship between New Zealand and the United Kingdom is a very deep one – it is one of our oldest and closest,” Mr Key said.

“We have strong ties between our people and businesses, and a shared outlook on international affairs. This visit will give us an opportunity to celebrate those historical ties and give momentum to the modern relationship which reaches far and wide.”

Mr Key said he looked forward to discussing a wide range of regional and global issues with Mr Cameron, including the economic situation in Europe and around the world.

Further details of Mr Cameron’s visit will be released closer to his arrival next week.

The $5 million special project extends the Eastland Community Trust’s Healthy Homes project to improve the health and wellbeing of people on the East Coast.

The Trust has already completed 1,800 homes and is now investing a further $2 million to complete an additional 2,000 homes. The project targets families on a low income, particularly those with health needs.

The Energy Efficiency and Conservation Authority (EECA) is contributing $3 million through the Government’s Warm Up New Zealand: Heat Smart programme.

“I applaud the Trust for taking the initiative with this project. Improving insulation in old houses has been shown to have a significant impact on the health of the householder,’’ says Ms Parata.

“Warm homes lower the risk of people getting sick – and that is especially important for those at risk – the young, the elderly and people with respiratory illnesses such as asthma.’’

The Government is investing $347 million in Warm Up New Zealand: Heat Smart over four years to provide insulation and efficient heating for New Zealand homes.

Anyone who has a home built before 2000 is eligible for 33 per cent off the cost of installing ceiling and under-floor insulation up to a maximum of $1300. Community Service Card holders can get 60 per cent off the cost of installing insulation.

Close to 130,000 homes throughout New Zealand have been retrofitted since the Warm Up New Zealand Heat Smart programme began in 2009.

“Warm Up New Zealand: Heat Smart special projects make insulating more affordable for groups, communities or regions that have some specific need, for example a health issue, a low decile community or a remote regional location.

“Working together with partners, who provide additional funding, makes insulating more accessible for those who really need it and will benefit the most,” says Ms Parata.

“Energy efficiency is a focus for the Government, along with renewables, the exploration of our natural resources and the pricing of carbon as we manage our environmental responsibilities and realise our economic opportunities.”

“Selling small quantities of raw milk direct to people at the farm gate is a long standing tradition and there is support for that to continue,” Ms Wilkinson says.

“At present, the law lets farmers sell a daily maximum of five litres of raw milk from their farm to people to drink and give to their family.

“The discussion document focuses on how to provide for limited sales of raw milk for drinking, as the Government is not proposing to allow commercial-scale sale of this product at this time.”

Three options are being proposed, the third of which is MAF’s preferred option. They are:
• Maintain the current legal position;
• Make limited amendments to conditions of sale and retain the requirement for a Risk Management Programme (RMP); and
• Make limited amendments to conditions of sale and exempt farmers from an RMP for farm gate sales, but still require them to meet some animal health and hygiene requirements and to keep records of sales.

This consultation document is independent of the current Dairy Industry Restructuring (Raw Milk) Regulations 2001 made under the Dairy Industry Restructuring Act 2001 and the Commerce Committee inquiry into the price of milk.

“It is important to remember that raw milk could contain organisms that can make you sick. Because raw milk is not subject to a heat step, like pasteurised milk, these organisms are able to survive and grow.

“For vulnerable populations, such as the very young, elderly, pregnant women and those with low immunity, it is important they and their carers are aware of the health risks and are advised against consuming raw milk and raw milk products.

“Making raw milk available to local rural families, who did not have access to pasteurised milk, was the original reason for farm gate sales. Over time the reasons consumers want access to raw milk have changed.

“This consultation provides the opportunity to update the legislation by balancing the rights of people who want to drink raw milk with the need to ensure that the community is protected from food-borne illness.”

“I invite all those interested to provide input about the options put forward.”

Submissions close on 5 December 2011.

A copy of the consultation document can be found at: http://www.foodsafety.govt.nz/elibrary/industry/farm-gate-raw-milk-sales/index.htm