NZ troops to Tonga
New Zealand has sent a contingent of defence personnel and police to Tonga after a request from Tonga's government for security assistance in the wake of rioting last week. Australia is also providing defence personnel and police to a New Zealand-led contingent. Prime Minister Helen Clark said a group of about sixty New Zealand Defence Force personnel will provide security at Fua'amotu International Airport. They will work with Aviation Security, Tonga Defence Services, and Tonga Police in securing international flights, aircraft, crews, and passengers. New Zealand Police efforts will centre on security for the New Zealand High Commissioner and his staff in Nuku'alofa. Helen Clark said the riots have been deeply unsettling for Tonga at a time when the country has entered a process of political reform, which New Zealand supports.

Fresh start for students
A fresh start for people overseas with student loans is being offered under new rules unveiled by Tertiary Education Minister Dr Michael Cullen and Revenue Minister Peter Dunne. Interest-free student loans are key to improving access to tertiary education. However, the rules around overseas borrowers need improving as they discourage many from meeting their obligations and deter some from coming home. The Ministers say they recognise that graduates want to travel overseas and gain valuable skills and experience and that repaying student loans during their OE can be difficult. They wanted to avoid creating unmanageable debt that discourages people from returning home. The new rules will make it easier for students heading overseas to stay on top of repayments and give more breathing space for those overseas and struggling with rising debt. In future Inland Revenue will know when borrowers go overseas, as a law change will allow data matching between Inland Revenue and New Zealand Customs. The data match is expected to reveal about 40,000 borrowers who are or have been non-resident and whose loan accounts will have to be adjusted.

Economic relations with Japan
Japan and New Zealand have established a working group to take a fresh look at the bilateral trade and economic relationship to identify specific possibilities for building trade and investment. Trade Minister Phil Goff says that, as the world's second largest economy, Japan is an important regional friend and our third largest trading partner with two-way trade worth more than $7.3 billion. Phil Goff says New Zealand would welcome starting negotiations for a trade agreement with Japan but to date, that has been a step too far for Tokyo, principally because of their concerns about the strength of our agriculture sector. New Zealand wants to demonstrate that the agriculture sector can work with Japan for shared benefit, Phil Goff says. The working group has a broad mandate, looking at all options for developing the relationship. It is expected to report to both governments in 2007.

New laws good for business
New laws to fine-tune business legislation and reduce compliance costs were passed by Parliament. Commerce Minister Lianne Dalziel said the Business Law Reform Bill will create tangible benefits because they were suggested by the business sector, legal practitioners and enforcement agencies. It introduces changes to five Acts to clarify and update their intended purposes and remove unnecessary compliance costs. The changes include: Most small companies will be eligible for the Exempt Companies regime; SMEs with 25% or more overseas ownership will no longer be required to file financial statements; overseas registered companies will no longer have filing requirements in excess of those required of New Zealand registered companies; an infringement notice and fine system for directors who fail to file company annual returns on time; extending the management and director banning provisions to those banned in certain overseas jurisdictions; broadening the field of membership as set out in a credit union's rules; and credit unions and their associations having more flexibility on administrative matters such determining the minimum deposit holding for members and removes the need for Ministerial approval when offering new services. Lianne Dalziel said the changes would reduce compliance costs.

Free digital TV funding
The government is supporting TVNZ's proposal to move into free-to-air digital television, with $79 million over the next six years. Digital television provides a major opportunity to re-assert the role of public broadcast television, and boost the quality and range of programmes available to Kiwis, Broadcasting Minister Steve Maharey said. The government's investment aims to reinforce TVNZ as the flagship public television broadcaster through two new commercial-free channels. As well as increased local content hours, there will be new content commissioned by TVNZ, more in-depth programmes and opportunities for a wider range of audiences to view programmes at more accessible times. In June, the government announced support for the establishment of Freeview, a consortium of New Zealand's free to air broadcasters, including Television New Zealand, CanWest, Maori TV, Trackside and Radio New Zealand. An independent cost-benefit report puts a net national benefit at around $230 million if analogue switch off is achieved by 2015. Funding for TVNZ's digital content proposal will be released to TVNZ over six years, with the intention to move to self-sustaining services over time.