Sunday, November 5, 2006

Figures released by Simon Power, law and order spokesman for the National party, show that the New Zealand Labour led government lets 81% of all prisoners not do any work while in prison. Newspaper, Sunday News says that some Christchurch prisoners have been given a barbecue for good behavior.

Simon Power’s figures show that of the 7,612 prisoners only 19% (1,470) of them took part in Corrections Inmate Employment during 2006. But in 2005 it was at 23% and in 2004 it was at 26%. He says that the prisons with the least amount of inmates working are: Rolleston with 8.6%, Mount Eden with 8.7%, Rimutaka with 11%, Christchurch Women’s with 13.5% and Dunedin with 13.8%. Mr Power said: “These figures are an appalling indictment on this Government’s approach to prisoner rehabilitation and preparing them for release.”

“In May, Corrections Minister Damien O’Connor announced a strategy that he said would help in ‘significantly increasing the number of prisoners in work and training. But a week later this was shown to be nothing more than window dressing when the Budget increased funding for prisoner employment by a measly $336,000 – up 1%.”

“They have cut funding [on the Corrections Department] by 27% since 2001/02, from $46.5 million to $34 million.”

Mr Power blames the low work rate on the big prison construction budget of $490 million. “There would have been more than a miserable $336,000 extra to spend on effective rehabilitation and work schemes,” he said.

“[Mr O’Conner] seems happier to spend $11 million on landscaping four new prisons and allow prisoners to sit around playing Playstations and Xboxes on their flat-screen TVs than he is about helping them get better prepared for when they are released.”

“Prisoners should be doing meaningful work, training or study while they are in prisons, and I imagine the public would agree,” Mr Power added.

Mr Power, commenting on the barbecue, said: “These people are in prison because they were found to be in serious breach of the law. The victims of their crimes will be grossly offended by the idea that they are being rewarded for anything. This is the just the latest in a long line of incredibly bad decisions made by the Corrections Department over the past year and taxpayers have had enough.”

Bevan Hanlon, president for the Corrections Officers Association, said: “The Mobsters getting a BBQ was a “joke”. (Christchurch Prison) staff are reporting the smell of dope every day. Mobsters are threatening staff on a daily basis and there appears to be high cellphone use (mobile phones are banned in jail). So what happens? They are given a BBQ.”

Tuesday, April 15, 2008

Rival United States airlines Delta Air Lines and Northwest Airlines announced today that they have agreed to merge. The new airline, which will use the Delta name, will be the largest commercial airline in the world.

Technically, Delta will be buying Northwest in a roughly US$3 billion deal. Northwest shareholders will receive 1.25 shares of Delta for each share of Northwest. Based on Monday’s closing prices on the New York Stock Exhange this represents a 17% premium for Northwest shareholders.

Richard Anderson, the Delta chief executive officer who will also head the new company, said: “We said we would only enter into a consolidation transaction if it was right for all of our constituencies; Delta and Northwest are a perfect fit. Today, we’re announcing a transaction that is about addition, not subtraction, and combines end-to-end networks that open a world of opportunities for our customers and employees. We believe by partnering with our employees, including providing equity to U.S.-based employees of Delta and Northwest, this combination is off to the right start.”

The combined company would have $35 billion in annual revenue and approximately 75,000 employees. The deal does have to receive regulatory approval. “We will look at the competitive effects of the transaction and how it would affect consumers,” said Gina Talanoma, a spokesperson for the United States Department of Justice.

Airline industry consultant Robert Mann told Reuters, “It’s a very optimistic view on an industry that’s been very dismal for the last couple of weeks.”

Friday, April 23, 2010

The oil rig Deepwater Horizon sank yesterday after an explosion Tuesday night that left eleven people missing.

According to an officer from the US Coast Guard, the rig sank sometime in the morning. The rig had caught fire after an explosion of unknown origin occurred two days ago. 115 of the 126 workers on board the time of the explosion have been rescued after evacuating in lifeboats, either by the Coast Guard or from other ships in the area.

The remaining eleven have not been located, although Coast Guard officials have expressed optimism that they are still alive.

The environmental impacts of the explosion and subsequent sinking of the rig are unclear. While up to 13,000 gallons of crude oil per hour has been released from the rig, until now, the effects have been considered minimal, as it had been burned off in the fire. That does have the potential to change, though, according to David Rainey, vice president of the lessor of the rig, BP. The rig, built in 2001 by Hyundai Heavy Industries was owned and operated by Transocean.

The rig was located roughly 50 miles southeast of the coast of Louisiana, and was under lease to BP since 2007. It was completing the construction of a new oil well, and was constructing a layer of cement in the well to reinforce it. This is considered dangerous, as it has the potential to produce an uncontrolled release of case, called a blowout. While the cause of the explosion has yet to be determined, a blowout is considered a possibility.

One survivor of the explosion, who declined to give his name, told the The New York Times that he was lying in bed when the explosion happened. “It caught me by surprise. I’ve been in offshore 25 years, and I’ve never seen anything like that,” he recalled.

Stanley Murray, the father of another survivor named Chad, an electrician, said: “My son had just walked off the drill floor.” However, Murray said that a neighbor did not make it in time, adding that his son told him that the missing eleven workers could not have made it out alive. “The eleven that’s [sic] missing, they won’t find them,” Murray said.

Saturday, October 23, 2021

China property giant Evergrande Group wired USD83.5 million in interest owed in an offshore bond from September 23 on Thursday, temporarily averting default, according to a Reuters source and Chinese newspaper Securities Times.

The wire to a Citibank fiduciary account following a 30-day grace period came after assurances by various members of the Chinese government, Reuters reported. At a Beijing forum Wednesday, Chinese Vice Premier Liu He described the risks as controllable, and chairman of the China Securities Regulatory Commission Yi Huiman said that while authorities needed to curb excessive debt more broadly by “improv[ing] the effectiveness of the constraint mechanism on debt financing”, the matter would be dealt with properly.

Once China’s top real estate developer, Evergrande had accumulated approximately USD305 billion in liabilities, two per cent of the Chinese gross national product, after “dwindling resources” cut its value by 80%, according to Reuters. September data revealed Chinese home sales by value fell by nearly 17% year-on-year, according to The Guardian, and fears over its default led to a slowdown in China’s third quarter GDP growth to a year low of 4.9%. Two sale negotiations with rival developers Hopson Development and Yuexiu, valued at USD2.6 billion and USD1.7 billion, respectively, were suspended, reportedly due to a lack of consent by the government of Guangdong province currently overseeing Evergrande’s restructuring.

News of Evergrande’s remittance caused its shares to rise by as much as 7.8% this morning after a two-week pause in trading for the anticipated sale of 50.1% in Evergrande Property Services Group, and offering some reprieve for bondholders, according to Reuters. Portfolio manager at GaoTeng Global Asset Management James Wong, interviewed by The Guardian, called the news “a positive surprise”, adding “[i]f Evergrande pays this time, I don’t see why it won’t pay the next time.” Jun Rong Yeap for IG Asia pte., interviewed by Bloomberg, said the report “overturned” the narrative “that Evergrande will face difficulty in securing cash ahead”.

Further missed payments are due October 29 and November 11 after similar 30-day grace periods; including yesterday’s USD83.5 million, nearly USD280 million is owed to bondholders.

Stocks have been down for many major Chinese developers: Reuters Wednesday reported year-to-date stock prices fell 87.8% for Sinic Holdings, currently in Fitch Ratings’ ‘restricted default’ after failing to make an October 18 bond payment valued, according to The Guardian, at USD246 million; 80.2% for Evergrande itself; 78.3% for E-House, 58.5% for Fantasia Holdings and 54.6% for Kaisa Group, which defaulted in 2015 and had bonds reach record lows.

Estimates of the Chinese real estate market’s size range from 16 to 25% of the Chinese gross domestic product, according to The Guardian. Chinese President Xi Jinping’s aim to transform the country’s economy from one of debt-fuelled “inflated” growth to one of improved “quality and returns” included imposing regulations on developers that limited their capacity to borrow. A Guardian comment piece from economist George Magnus published on October 15 made reference to China’s “ghost cities” and “rampant credit creation” that has given rise to high vacancy rates and the “financialisaton of housing”.