9^th June 2008

ANNOUNCEMENT OF RATIFICATION

EXPECTED SHORTLY

The CANZ Ratification road show has now been completed and we expect to be able to confirm results of ratification later this week.

Although the deal is likely to be confirmed ratified, our members left the CANZ National Officers in no doubt that they are far from happy with the offer and there are high expectations set for negotiations set down for August 2009.

CANZ are now awaiting the commencement of the Work Practices Project which will be directly linked to identifying productivity gains and hence potential increases to our terms and conditions.

The CANZ National Officers will be formally requesting that the Management Team of PS involve them in preparing the Budget bid for the next round of negotiations.

We take the opportunity of expressing our appreciation for the turn out of members at all meetings and increase of 30% over the first round of meetings.

In particular Rimutaka Prison astounded us with a massive turn out of 257 which is the largest single meeting for some time.

During the ratification meetings there were some serious non-bargaining issues raised that the Executive Team believe require some assurances and process confirmation and we are taking steps to address these. They relate to CANZ supporting our Administration Workers during current change management processes underway in some parts of the business including Camps and we want to ensure the Department maintains the integrity and transparency of that process.

We are meeting the Department tomorrow to report back and will air these issues.

We anticipate these being resolved by Thursday 12^th June 2008. Once the ratification outcome is confirmed we will advise.

On Behalf of the National Officers