Interest rates expected to keep falling even after record cut; Govt. rejects Treasury advice; another guilty verdict in Glassie case; Japanese climber found dead; Hore is top rugby player; and more
- The Reserve Banks's record interest rates cut hogs today's front pages. Governor Allan Bollard slashed the official cash rate 1.5 percent to five percent, the lowest rate since 2003. The Press says it will help the economy through "a serious storm" next year as most banks reduced lending rates yesterday. While hundreds of thousands of home-owners "will get a boost in coming months as they roll off fixed-term mortgages", it means a hit for savers, the DominionPost warns. It adds that some economists are predicting Bollard will make another one percent cut in a month's time. However, the Business Herald (offline) goes further, saying as the recession worsens next year the OCR could fall to 3.5 percent. The Herald's lead story quotes commentators saying the cut would do little to cushion the economy from the impact of the global financial crisis or stop house prices falling.
- Elsewhere on its front page, the Herald says another ACC "blowout" threatens to undermine the benefits of National's tax cuts. Nick Smith has revealed a second ACC account – this time covering workers – will need a cash injection. ACC wants to increase the levy on workers to cover a $1.3 billion shortfall, but Smith wants to curb the levy rise.
- National is also at odds with officials at Treasury. Its briefing to the incoming government recommends an increase to GST, cutting the top personal tax rate to 30 percent, introducing a capital gains tax,and reining in public sector spending, The Press reports. But Bill English says the document is out of date and has rejected the suggestions.
- William Curtis, the father of murderers Wiremu and Michael Curtis, was last night found guilty on eight charges of assaulting Nia Glassie. In one graphic piece of evidence, the court was told that Curtis Snr. wrapped a woollen scarf around the three year-old's neck and dangled her in the air until her face turned purple. He will be sentenced in January.
- The Otago Daily Times leads with news the region's District Health Board expects a deficit of more than $13 million for this year. No "knight on a white horse" is coming to bailout the DHB, so chair Richard Thomson says "it will mean changes to how we do things and where we do things".
- Rescuers waiting for weather to clear hoped they would have a three hour "window of opportunity" this morning to save two Japanese climbers trapped high on Aoraki Mt Cook. Updated reports this morning say that a helicopter was able to reach the men and that one has been airlifted to Christchurch Hospital with frostbite. But the second climber died just last night after the pair's tent blew away.
- And hooker Andrew Hore is named rugby player of the year, after the All Blacks won 14 of 16 tests this year.