The drought is a timely reminder of how much the New Zealand economy depends on rainfall, writes Brian Fallow.

Slaughterman Kent Sambells' workload was "hectic" last week as Waikato farmers called him in to destroy ailing cattle and take them away for processing into pet food.

Farmers should know in a few days if Tropical Cyclone Sandra, forming off the coast of Australia, will bring some vital rain to parched NZ farmland, forecasters say.

The parched North Island won't see rain for at least a week as hot, dry weather continues in what has been described as one of the worst droughts since the 1940s.

Power prices will continue the rapid rise revealed by the Herald on Sunday, officials have warned the Government.

Prime Minister John Key went a tad off-script in a speech in Santiago yesterday, and delivered New Zealand's economic history via a parable of wine.

Sheep and beef farmers may be in for a tough time with profits predicted to halve this season as the full impact of lower lamb prices and widespread drought starts to hit home.

Drought is likely to shave 0.5 per cent off gross domestic product by the end of the year and take a toll on next year's output as well, says ANZ bank.

Indeed TV3 reported last year that David Shearer and John Key hold the same position, that "nobody owns water. It's everybody's resource".

The funny thing about an impending economic catastrophe was that no one seemed to care.

Exports fell in the last three months of 2012 in real terms and the impact has been compounded by a decline in what we can buy, by way of imports, for a given quantity of exports.

It would make the inner city an attractive, convenient and interesting place to live and work, writes Michael Barnett and Kim Campbell.

During question time Prime Minister John Key was asked about the new minimum wage of $13.75 and calls for a living wage of $18.40 in Parliament today.

All manner of people, policies and practices are being blamed for the near-collapse of Solid Energy, the state-owned coal company that is burdened with $389 million in debt.

Charities have started providing bandages and dressings for children with skin infections in poor parts of Northland and South Auckland because government funding is not enough to meet the need.

David Shearer has pulled it off, writes John Armstrong. Yesterday's reshuffle of shadow portfolios is very different from the one he instituted on becoming leader 14 months ago.

The hot dry summer in the North Island is helping to push world dairy prices up - but the high kiwi dollar is taking the cream off the top.

In the fifth straight gain, prices in the latest world dairy auction rose 3.1 per cent overnight, takings prices to their highest level in five months.

Everyone agrees we're a low-wage economy but the impact of that on families has been lost behind a haze of judgment and indifference, writes Tapu Misa.

Looking after children is expensive and most people underestimate the cost, writes David Mayes. That cost is not just in terms of the money we pay out at the time,

Strong retail sales in the last three months of 2012 added to evidence the economy had hauled itself out of a soft patch by the end of the year.

A recent pick-up in Australian housing loan approvals has gone into reverse, suggesting a series of interest rate cuts is taking its time in percolating through the economy.

Providing New Zealanders with a living wage is not high on the Government's agenda and it is unlikely to support the campaign, Prime Minister John Key said today.

Almost 750,000 Kiwis look set to be classed as the new working poor when the union movement fixes the value of a "living wage" needed to have a decent life here.

Actor Grae Burton was the classic "Kiwi bloke" in Tui beer commercials last year. His work only just earned him what unions consider a "living wage".

It's time for a dose of fatalism and some common sense when it comes to dealing with earthquake-prone buildings across New Zealand in the wake of the Christchurch quakes.

They are public offices carrying out public functions. The act applies to most other public agencies and there is no reason at all why it shouldn't apply to these.