20 Oct 2008

Morning Report: local papers

6:43 am on 20 October 2008

Monday's papers: Rise in GST forecast to cover Government deficits; Labour axes extra spending promises; police officer pelted with bottles; CPO hotel project in Dunedin may be "parked".

NZ Herald

The New Zealand Herald reports a prediction by tax expert John Shewan that GST might have to rise to 15% within five years, to dig New Zealand out of deficits delivered by the worsening world economy and big election promises.

In international news: the paper says North Korea is to make an important announcement, amid speculation over the health of its leadership. Predictions from Japan are that Kim Jong Il is dead - or has been overthrown in a coup.

The Dominion Post

The Dominion Post says Labour has axed plans to roll out more spending promises and National has offered to work with the Government to protect our banks as concern mounts about the economy.

A lone police officer was forced to abandon an arrest and take shelter in his car after being pelted with bottles by drunken teenagers in Dannevirke.

The Press

The Press says John Key wants Labour to work with National on a massive scheme to guarantee all lending between New Zealand banks and their overseas counterparts.

Police are warning of the dangers of modifying vehicles at home after the deaths of two North Canterbury teenagers when a 4WD vehicle rolled on a riverbank. The vehicle had had its roof and cab removed in a "home job.

ODT

The Otago Daily Times says parts of Otago continue to show small increases in residential building activity as new dwelling consents issued across much of New Zealand's building sector slump to a 22-year low.

But the developer planning to convert the former chief post office in Dunedin into a Hilton hotel hinted on Sunday night the world economic downturn could lead to the project being "parked".