Press Release

Questionable supermarket policy needs investigation: Greens

Allegations that supermarket giant Progressive Enterprises is applying pressure to its suppliers adds further impetus to the Green Party's call for a Commerce Commission inquiry into industry practices, and a code of conduct for supermarkets, Safe Food Spokesperson Sue Kedgley says.

According to a news report, grocery suppliers will be penalised for having their products promoted in rival supermarkets at or around the same time as Progressive's own advertised promotions. If this occurs, suppliers would be charged for the differential on the price offered in the opposition supermarket.

"These are precisely the kind of tactics that penalise small independent growers and suppliers who are already struggling in a highly competitive environment," Ms Kedgley says. "Progressive allegedly wants details of suppliers' supermarket specials with trade competitors - in advance - and will not accept promotions for inclusion in its mailers where there is a clash with a competitor's promotion arranged by the supplier," Ms Kedgley says.

Ms Kedgley says she is alarmed at reports that, while suppliers are furious about these practices, they fear if they don't play ball, their products would be left off supermarket shelves.

"Why should a farmer who grows and supplies broccoli to Progressive and the local New World be punished by a retrospective cut on their payment from Progressive because New World decides to have a special on broccoli in the same week?

"Most farmers and manufacturers have nowhere else to sell their produce than the two supermarket chains that control 96 percent of New Zealand's grocery market. An investigation would clarify whether there is any truth to the allegations that Progressive may be misusing its position to force small farmers and business people to take cuts in their margins.

"It would also determine whether this practice breaches the restrictive trade practices under the Commerce Act.

"New Zealanders spent $16 billion in supermarkets last year. They are a huge business, and it is essential that there are clear rules governing the trade, which prevent unfair trading practices occurring in the sector. That's why we need a Commerce Commission Inquiry into the sector and a code of conduct for supermarkets, such as exists in the United Kingdom," Ms Kedgley says

The Warehouse Group Limited ("WHS") today announced that it has reached an unconditional agreement to sell its 50% interest in "The Base" retail complex at Te Rapa to Tainui Group Holdings Limited ("TGH") for a gross consideration of NZ$37.4million.

The Warehouse entered into a 50/50 joint venture in 2003 with TGH, the commercial arm of Waikato- Tainui, to develop "The Base", a 60,000 square metre retail complex, north of Hamilton.

Commenting on the acquisition by Tainui Group Holdings, Mike Pohio, Chief Executive said "we would like to take this opportunity to thank The Warehouse Group for the very positive and constructive relationship we have had with their board and management team over the past four years".

In commenting on the sale, Ian Morrice, Managing Director of The Warehouse Group said "The Base development has been a successful venture for The Warehouse, and is the site for development of our existing store into the third Warehouse Extra. We thank Tainui Group Holdings for their professionalism and support in successfully establishing The Base as a significant retail destination in the Waikato area".

The settlement is scheduled to take place in July 2007. The Warehouse Group will report an after tax surplus on divestment of between NZ$11.8 and NZ$12.4 million in the 2007 financial year.

Press Release: NZ Red Cross

New Zealand Red Cross is taking steps to ensure Kiwi kids get a healthy breakfast before they start the school day.

Today, World Red Cross Red Crescent Day, marks the official start of New Zealand’s Red Cross Breakfast in Schools programme.

Supported by Countdown supermarkets, New Zealand Red Cross is offering primary schools throughout the country the opportunity to take part in Red Cross Breakfast in Schools.

Red Cross Breakfast in Schools is being offered to all decile one primary schools that don’t already provide a similar nutrition-based breakfast programme. The new programme is an addition to New Zealand Red Cross’ targeted community programmes aimed at assisting those who can’t always help themselves.

“It’s widely acknowledged that children with full tummies find it easier to concentrate and have a better chance of fulfilling their learning potential,” says Red Cross Breakfast in Schools national programme manager, Patrick Cummings.

“In an ideal world we wouldn’t need to take up this challenge. However, the reality is there are children in New Zealand who are arriving at school hungry which has resulted in a group of vulnerable people within our society. Children have a basic right to adequate daily nutrition. Our role as a humanitarian organisation is clear; we’re taking action to make a difference to the lives of these vulnerable children.”

Countdown general manager Leon van Rensburg says there is a definite need for the programme.

“We supported the New Zealand Red Cross pilot last year which confirmed the need for a breakfast in schools programme. Feedback from parents and the two schools involved was positive and we now look forward to extending the programme nation-wide.

“Supporting this Red Cross programme is a natural link for Countdown. Our nation-wide network of stores is well placed to meet the food needs of the participating schools at a local level,” Mr van Rensburg says.

With Countdown’s support to provide food for the breakfast programme, New Zealand Red Cross has committed to offering a nationally co-ordinated, sustainable long term programme that meets the needs of the community.

“Red Cross Breakfast in Schools runs in partnership with primary schools that hope to eliminate the distractions empty stomachs can bring to the classroom and who want to help their students reach their full learning potential,” says Mr Cummings.

“New Zealand Red Cross, in partnership with participating schools, coordinates the volunteers who are responsible for delivering the food to schools from Countdown supermarkets and overseeing the programme at a local level. Schools provide the equipment and facilities to store, prepare and serve breakfasts each morning.”

East Tamaki Primary School in Auckland is the first school to officially participate in Red Cross Breakfast in Schools with more schools expected to follow soon. East Tamaki Primary School began the pilot programme on World Red Cross Red Crescent Day last year and today celebrates its first anniversary of taking part.

BACKGROUNDER

Red Cross Breakfast in Schools programme Background information

Introduction Red Cross Breakfast in Schools is a New Zealand Red Cross community service delivery programme that offers children attending decile one primary schools throughout New Zealand the opportunity to eat a healthy breakfast before they start school. The programme is a face-to-face, friendly approach to providing a healthy, nutritious breakfast and encouraging healthy eating behaviours.

How it works New Zealand Red Cross is supported by Countdown supermarkets to provide breakfast to children in those decile one primary schools that choose to participate in the programme.

New Zealand Red Cross’ role, in partnership with the participating schools, is to co-ordinate the daily operation of Red Cross Breakfast in Schools by selecting and training volunteers, ensuring sufficient breakfast supplies are available and monitoring and evaluating the programme.

Volunteers will ideally be drawn from the school’s local community. Volunteer selection includes undertaking a recruitment process and relevant training. Volunteers will assist in serving breakfast each morning at the participating schools that choose to offer it.

Participating primary schools provide the resources to serve and prepare breakfast. These include a room where breakfast can be served and all equipment necessary such as plates and bowls. Where a school is unable to provide the equipment, New Zealand Red Cross will consider its needs on a case by case basis.

For Red Cross Breakfast in Schools to be successful, it is important that the participating school makes a strong commitment to the programme.

All breakfast food is supplied by local Countdown supermarkets. In areas where there isn’t a Countdown supermarket, Woolworths (also owned by Progressive Enterprises) will provide the food.

Pilot Programme In 2005, New Zealand Red Cross undertook a vulnerability and capacity assessment (VCA) study, based on an international Red Cross model, in the Northland region. The study aimed to provide evidence-based guidance for the future provision of community programmes that fulfil the Movement’s rules and assist to reduce suffering to the people of New Zealand.

The VCA recognised a small number of ‘gaps’ in which New Zealand Red Cross might become involved in addressing need. One such area was that of hungry school children. The research indicated that of the children going to school hungry, children from lower decile schools featured most prominently. The VCA concluded that at least 10% of students in the schools studied would likely participate in a breakfast programme.

A Ministry of Health survey (2002)[1] concluded there were high percentages of children aged between five to 14 who sometimes or always ate nothing before school. This research, coupled with the VCA, indicated to New Zealand Red Cross that the problem was one of national significance and there was an obvious area of vulnerability within the community that was not currently being addressed in a broad and co-ordinated manner.

New Zealand Red Cross’ Northern/Midland region was nominated to conduct a pilot breakfast in schools programme to ascertain if the programme should become another Red Cross community service delivery programme, and if it should be operated on a national basis. Red Cross worked closely with Manukau City Council to initiate the pilot.

Koru School and East Tamaki Primary School became involved in the pilot programme in 2006. The results of the pilot, independently assessed by researchers from the University of Auckland, found the response from both the students and the staff indicated a continued need for the programme.

As a result of the pilot, East Tamaki Primary School is the first school to officially offer the Red Cross Breakfast in Schools programme in 2007.

Schools Red Cross Breakfast in Schools is currently offered to decile one primary schools. After the programme is fully integrated nationally, and providing it is achieving its aims, the programme may be extended.

Volunteers People wishing to volunteer their time are encouraged to contact their nearest Red Cross Service Centre. See www.redcross.org.nz for contact details.

Food Progressive Enterprises, through its Countdown supermarkets, is well placed to support Red Cross Breakfast in Schools with a network of stores nationwide. The company’s support for the programme is a philanthropic effort to help vulnerable children in an area in which the company operates – food.

Countdown supermarkets provide the following for Red Cross Breakfast in Schools: Wheat biscuit cereal Milk Wheatmeal bread Variety of spreads Cocoa
ENDS

AMP Shopping Centre Fund has announced its second acquisition in New Zealand with the purchase of The Palms shopping centre in Christchurch. The Palms is a major regional shopping centre located on the eastern side of the city and features a gross lettable area (GLA) of 35,448 sqm, over 100 retail outlets, a cinema complex and 1,450 car parking spaces.

Fund Manager for the AMP Shopping Centre Fund, Conrad Sinclair, said the property is an outstanding regional shopping centre. “The Palms is a high-quality property located in a great area. It is an ideal strategic fit for the AMP Shopping Centre Fund and further diversifies investor exposure to established, strong performing retail assets. We are very pleased to have made another key acquisition in the New Zealand market. Overall growth in quarterly retail sales has averaged 1.5 per cent over the last five years compared to 1.1 per cent in Australia,” Mr Sinclair said.

The acquisition, which was made for an undisclosed sum, is subject to approval from the Overseas Investment Office and will see AMP Capital Shopping Centres assume the role of property and asset manager for The Palms. Settlement is expected to occur in late May 2007. The Palms was purchased from interests associated with retailer Tim Glasson.

The AMP Shopping Centre Fund has $1.8 billion in assets under management and comprises 10 properties including a 50 per cent share of the Bayfair Shopping Centre in Tauranga and a 25 per cent share of one of Australia’s largest shopping centres, Warringah Mall.

In total, AMP Capital Shopping Centres asset or property manage 43 shopping centres across Australia and New Zealand. In New Zealand, these properties include Botany Town Centre, LynnMall, Manukau Supa Centre and Bayfair Shopping Centre.

Press Release by Mainfreight Limited at 12:49 pm, 02 Apr 2007

Mainfreight Limited (Mainfreight) today confirmed that it had reached
conditional agreement to sell its Pan Orient Project Logistics business and
its 75% interest in LEP (New Zealand and Australia) to global logistics
company Agility Group for A$83 million and subject to closing adjustments
in relation to working capital. The purchase price will be paid in full on
completion of the sale with A$1.5 million to be held subject to an escrow
arrangement and payable in instalments if certain project contract targets
are met.

Pan Orient is an Australian-based business specialising in the supply of
logistics services to large projects in Australia and Papua New Guinea, in
particular within the mining sector. It was acquired by Mainfreight as
part of the Owens Group acquisition in 2003. It is the last of the non
core Owens businesses to be sold.

LEP is an Australasian-based freight forwarding business, owned 75% by
Mainfreight and 25% by Agility. A significant proportion of the freight
handled by LEP is sourced from the expanding Agility network and it became
increasingly apparent that its logical owner was Agility. The funds
released from the sale will be used by Mainfreight to fund its ongoing
international expansion.

Mainfreight is satisfied that this transaction fairly reflects the
underlying value of both businesses and will provide ongoing employment and
growth opportunities for the people employed.

For technical reasons the sale is a related party transaction for the
purposes of NZSX Listing Rule 9.2 and NZX Regulation has granted
Mainfreight a waiver from the requirement to obtain shareholder approval
under NZSX Listing Rule 9.2 in relation to the sale. NZX Regulation has
made or will be making a separate announcement of that waiver decision.

The sale is conditional on any necessary government approvals, consents
being obtained under two joint venture arrangements, Mainfreight entering
into a transitional services agreement to provide LEP and Pan Orient with
ongoing transitional information technology and other services and
administrative support and certain key employees remaining in employment
with the business.

The transaction will be completed on the business day before Mainfreight's
accounting cut off date in the month in which the conditions are satisfied.

ENDS 

PRESS RELEASE 

The Government plans to introduce legislation to enable regional councils to provide better local public transport services, says Transport Minister Annette King. Ms King says the changes follow a review by a group, comprising representatives of central government and local government and public transport operators, of current public transport legislation.

The proposed legislative changes will give regions the power to set standards that all commercial services will be required to meet over time, she says. These will apply to scheduled bus and commuter ferry services nationwide, but not to long-distance coach and ferry services (such as the Interislander) or rail, school services provided by the Ministry of Education, or taxi operators.

"Improved public transport services are a key to achieving our goal of environmental sustainability. The proposed legislation will give regions tools to improve their public transport services so that they provide better value for money for users, local and central government and taxpayers," Ms King says.

"For example, it will enable regional councils to require operators to meet quality and performance standards for commercial services which include integrated ticketing. It will also enable regional councils to maintain their existing public transport services without change where this is deemed appropriate, or opt to bundle services together if this best suited the needs of the region and its community."

Ms King says one of the key aims of the proposed legislation is to ensure fair competition and an open market for all public transport service providers. “Under the proposed legislation there will continue to be scope for commercial services to play an integral role in providing public transport.”

The Land Transport Management (Transport Services Licensing Act) Bill 2007 is currently being drafted and will be introduced into Parliament within six months. When it reaches the Select Committee stage there will be an opportunity for the public and stakeholders to make further submissions.

Questions and Answers

Which legislation will be affected?
Both the Transport Services Licensing Act 1989 and the Land Transport Management Act 2003 will be affected. There may also be some consequential amendments to other legislation such as the Local Government Act 2002 and the Land Transport Act 1998.

Why have these changes to the legislation been proposed?
It is an opportunity for the Government to help regions provide improved public transport services throughout the country that align with national transport objectives in the New Zealand Transport Strategy (NZTS) - a system that is affordable, integrated, safe, responsive and sustainable.

Under current legislation, regional councils have very limited control over commercial services - those which are not contracted or funded by the council.

• This legislation would empower regional councils to impose controls and make it compulsory for commercial services to comply with them.
• The controls would be set out in the Regional Passenger Transport Plan (RPTP), which would be the result of consultation with the community itself.
• The ability to impose controls would give local government more power to ensure that commercial services are meeting the standards expected by the region. For example, there would be the ability to require integrated ticketing or to set standards for ease of access for passengers into vehicles.
• At present, operators of commercial services are not required to provide any ongoing information about their services, such as the demand in particular areas or for certain routes, or on the cost of services.
  • This type of information is crucial for regions to establish systems that are integrated and responsive to community needs.
  • Controls set out within RPTPs could require operators to provide this information as a way for regions to better manage their public transport system.

What are the benefits for New Zealanders?
This legislation will enable local people to develop local solutions for local problems. It will give each region tools to ensure that all public transport services in that area comply with the local Regional Passenger Transport Plan (RPTP).

• This will make it easier for regional councils to implement affordable, integrated, safe, responsive and sustainable transport systems for their regions.
• Benefits will include better value for money and more consistent public transport services.

Are RPTPs required under the current legislation?
Regional councils currently prepare Regional Passenger Transport Plans, but have extremely limited powers of control over commercial services. The proposed legislation will enable councils to specify controls that they need.

What is the difference between a contracted and a commercial service?

• Commercial services are identified and provided by operators without any financial assistance from regional councils.
• Commercial services operate indefinitely, unless an operator withdraws them.
• Contracted services are identified by a regional council. They then go through a public tender process before an operator is contracted for a specified period --- commonly three to five years.

How will a more consistent public transport system be created?
Under current legislation public transport operators can register and de-register services, which may be a single trip at any time on any day, not necessarily a complete timetable for a route, with a maximum notice period of 21 days. Regional councils are then obliged to replace this service, but it leaves them inadequate time to implement the best possible service for the community. It restricts their ability to offer a reliable, consistent and sustainable service for the local people.

• The changes will mean a longer notice period of 90 days and better control over other aspects of the public transport services, such as the ability to set quality standards, in accordance with the RPTP of that region.
• It will also mean that regions can opt to bundle services together if this best suited the needs of the region and its communities.

How would this legislation improve services for people with disabilities?
It will enable regions to better cater for those with disabilities by allowing regions to stipulate in their RPTP appropriate controls intended to address this need. Currently, regional councils can only ensure those with disabilities are catered for on the contracted services they fund. Operators of commercial services are not required to ensure appropriate facilities are available on the services they run.

What are the potential environmental benefits under this new legislation?

• This change will empower regions to insist on better environmental practices from commercial services through the RPTP. For example, regional councils can now specify EURO4 buses on contracted services, but not for commercial services.
• At present, any bus that meets the minimum standards set by Land Transport New Zealand can be used on a commercial service.

Why does this legislation not apply to long-distance coach and ferry services, rail, school bus services or taxi operators?

• The changes have been designed to address concerns raised by local government regarding public transport services.
• No concerns were raised around these other services.
• Rail is already a contracted service through regional councils and further development of rail networks is a transport sector priority.

When are we likely to see changes from this Bill implemented in regions?
This will depend on each region and decisions councils make. It is likely regional councils will be required to review their RPTPs every three years.

How would these changes affect the commercial industry?

• Commercial operators will still be able to operate existing commercial services, but will, over time, have to comply with any RPTP controls.
• There will still be scope for innovation in terms of the services they provide.
• A key aim of the legislation is to provide fair competition and an open market for all public transport service providers, and to enable councils to shape public transport services to best suit the needs of their region and communities.

Will these changes mean cheaper fares?
The changes will mean a fairer, more open market for contracting public transport services. This may alter fares in some regions over time, but the aim is essentially to achieve better value for money, rather than a flat reduction of fares.

Will these changes result in a safer public transport system?
The safety of all public transport services is managed through the transport services licensing regime and various transport rules, but it is anticipated the proposed changes will positively affect safety through the standards and controls stipulated by councils and their communities in their RPTPs.