Faster growth noticed in public sector wages by latest NZ Labor Cost Index

Faster growth noticed in public sector wages by latest NZ Labor Cost Index

It has been specified by the Statistics New Zealand Labor Cost Index released today that a much faster growth was noticed in public sector wages as compared to private sector wages in the last year.   

An increase of 3.3% in salary and wage rates (including overtime) in the year to the March 2009 quarter was recorded by the index, which comes as lesser than the revised increases of 3.5% and 4% in the years to the December and September 2008 quarters, respectively.

Additional $120 million raised by Fletcher Building

Fletcher Building

An additional sum of $120 million has been raised by Fletcher Building from its share purchase plan and top-off offer. The move now takes the total capital raising by the company from a previous placement and these offers to $526m.

Yesterday, both the top-up offer and the $100m share purchase plan closed over-subscribed. Thus no need was required for the underwriters to take up any shares.

The plan offer received applications totaling of $177m and $21.7m for the top-up offer.

Decision in Vestar Case reserved by Judge


A decision for a case in which a former client sought to take action against insurers for failed financial advisers Vestar, has been reserved by a High court judge.

Compensation is being sought from QBE Insurance Ltd which provided Vestar's professional indemnity insurance by the former client, a trust, which invested an undisclosed sum with Vestar. The client appealed for it in a test case before the High Court at New Plymouth.

Pauanui owing more than $100,000 to Coromandel businesses

Pauanui Lakes Resort

The failed Pauanui Lakes Resort owes more than $100,000 to Coromandel businesses, which include a liquor retailer, a Pauanui electrician and a local radio station. It seems that all of them would lose tens of thousands of dollars and won’t receive pending payments. 

It should be noted that these three companies are not the victims alone, in fact there are many other which suffered due to the collapse of the plush golf resort and associated companies which went into liquidation on Friday.  

NZ shares experience modest gains

New Zealand share market

Despite worries about the state of US banks; modest gains were posted by the New Zealand share market. 

Since the Australian market turned negative and future prices hinted a fall in the US market when it opens, the benchmark NZX-50 index closed up 12.309 points or 0.437 percent at 2831.36. 

Today, the turnover was worth $94 million of which $28.7m was in Telecom shares. Among the 116 stocks traded, there were 44 rises and 30 falls. 

Among the best performers of the leaders, Telecom came up rising 5c to 283.

NZ expansion planned by McDonald’s


30 additional fast food restaurants have been planned to be constructed by McDonald's in New Zealand and during the next three years it would also employ another 6000 staff.

Local managing director Mark Hawthorne told that in the year 2009 the chain will open 10 new outlets. 

He further informed that this year approximately $100 million would be spent by the company and its franchisees on constructing new stores and refurbishing existing ones.