More support for families and students
Hundreds of thousands of New Zealanders will benefit from law changes passed by Parliament this week, which will make student loans interest free and expand the Working for Families package. The family tax relief provisions raise the threshold at which family income assistance begins to abate from $27,500 to $35,000 and reduce the abatement rate from 30 per cent to 20 per cent. This will provide targeted tax relief to 160,000 working families. Finance Minister Michael Cullen said the size of the tax reduction will depend on family circumstances, including the number of children, but will average around $50 a week. Dr Cullen said the interest free student loan policy would apply to existing and new loans and had been designed both to cut the cost to students of tertiary study and to encourage skilled New Zealanders to invest their skills in the New Zealand economy. For this reason, with some important exceptions, people will have to be living in New Zealand to qualify for the interest free loans. The changes take effect in the year beginning 1 April 2006.

Government confirms 2006/07 ACC levies
The government adopted new ACC levies for 2006/2007. They include a decrease in costs for motorists and no change for employers. However, there will be some increases for self-employed and wage and salary earners, which reflect the rising cost of healthcare, especially for long-term claimants. The ACC levies were adopted following public consultation and review by the Department of Labour. The new levies take effect from 1 April 2006, with the exception of the motor vehicle account which takes effect from 1 July 2006.

NZ role in historic East Asia Summit
Prime Minister Helen Clark attended the inaugural East Asia Summit in Kuala LumpurM this week. The Summit included leaders from the ten ASEAN members, China, Japan, South Korea, India, Australia, and New Zealand. Helen Clark said New Zealand's permanent place at the Summit marks a major development in our relationship with the region. The Summit will now meet annually to advance the interests of regional security and stability.

Report on effect of smoke-free legislation
One year on from the introduction of a ban on smoking in the workplace, a Health Ministry report has found no overall downturn in bar retail sales, tourism or employment. It also supports the significant health benefits for bar and restaurant workers and customers, and confirms strong public support. The Smoke-free Environments Amendment Act (2003) introduced a smoking ban in all indoor workplaces and hospitality venues from 10 December 2004. Associate Health Minister Damien O'Connor said the findings showed New Zealanders had understood and embraced the shift to smoke-free workplaces, which will result in better health across the population.

NZ delegation at World Trade Organisation meeting in Hong Kong
Trade Negotiations Minister Jim Sutton said this week's meeting of the World Trade Organisation in Hong Kong was hugely important to New Zealand. A successful outcome to a WTO Round of negotiations is the government's top trade priority. The WTO was the only place to address issues such as export subsidies of agricultural products and other trade barriers that affect New Zealand's trade, said Mr Sutton. He said this Doha development Round also offers a real chance to stimulate economic growth and reduce global poverty. The New Zealand delegation included Trade Minister Phil Goff, officials, industry representatives, and interest groups.