The neverending stories - 1998

THE implosion of the National-New Zealand First coalition might have been the single biggest local story of the year but even that owed more to a running sore than a single trauma.

If anything, 1998 will be remembered, at home and abroad, for on-going stories: the apparently never-ending effects of the Asian financial problems, the siege of the American President and the Marlborough Sounds mystery.

JANUARY

The hangover from New Year's Eve celebrations was made no less palatable as the country awoke to the disappearance in the Marlborough Sounds of holidaying friends Olivia Hope and Ben Smart.

Herald polls showed we are happy the way we are: a resounding "no" to becoming a republic, changing the anthem and joining Australia. That did not stop Mike Moore trying to take a leaf out of the Australians' book, proposing an all-encompassing people's constitutional conference.

In the north, Maori customary fishing rights were put to the test as the Confederation of Chiefs of the United Tribes of New Zealand continued taking large quantities of fish outside the quota system.

Merit Cup led the Whitbread fleet into Auckland. It may not have been ours but who was arguing about adopting a winner with Grant Dalton at the helm?

The American President was apparently as popular as ever with the public but allegations that he encouraged a young intern to lie about their alleged affair had Washington hanging on the dreaded "I" word - impeachment that is.

And Asia's financial woes rumbled on.

FEBRUARY

The day was balmy for the departure of the Whitbread fleet amid a cast of thousands. Happy also were America's Cup organisers: a near record 16 teams had paid the sort of money that signalled a commitment to be at the start line at the end of October 99.

It was a tearful time at Waitangi as the Leader of the Opposition faced a protest on behalf of marae speaking rights for Maori women. The Prime Minister also got close to the people, forecasting a referendum on cutting MP numbers running alongside the October local body elections and proposing the concept of a code of social responsibility.

A tiny hole in a power cable turned into a black hole for central Auckland as the city paid the price for what an inquiry later identified as Mercury Energy's shortcomings. Queen St sounded like a massive construction site as the hired generators boomed, which is more than can be said for business; safety concerns prompted authorities to rule the inner city a night-time no-go zone.

Iraq was warned that the United States was prepared to use "substantial" force if Baghdad refused to grant access to United Nations weapons inspection teams. New Zealand deployed SAS soldiers and military aircraft to the Gulf in preparation for the military response to Saddam Hussein's recalcitrance - arriving only after the United Nations Secretary-General had negotiated a deal. It happened all over again in November.

Winter Olympics opened in Nagano. Fog and heavy snowfalls had as big an influence as the competitors but nothing could deny the Japanese their most successful winter games.

President Suharto ordered the military to take stern action against opponents as food riots signalled that Indonesia was under pressure from the region's economic travails.

World champion discus thrower Beatrice Faumuina was named Halberg Award winner; her coach, Mayor of Auckland Les Mills, was coach of the year.

New Zealanders' wish came true: uniformed police were highly visible on the streets - but this time in support of their wage claims.

Members of the pop group Oasis, flying to Australian, lived down to their reputation for obnoxious behaviour.

Auckland Hospital performed the country's first liver transplant.

And the Asian financial crisis and the Clinton sex saga continued on, as did the hunt for Ben and Olivia.

MARCH

Serb police in Kosovo reacted to an ambush by local rebels by executing 20 civilians in the area, setting the scene for another Balkan nightmare which ran until October before Nato bombing threats finally forced a Serb backdown.

Ladies Night writers Stephen Sinclair and Anthony McCarten accused the makers of The Full Monty of ripping off the New Zealand play.

Mr Gates goes to Washington. Microsoft's Bill Gates began a marathon defence against charges that his company held a monopoly on computer systems.

A month for changes at the top: Indian Hindu nationalists, with some help from small parties, formed a new Indian Government; Zhu Rongji took over as China's Prime Minister; and Boris Yeltsin sacked most of his cabinet for its "lack of dynamism and initiative."

Chile's Augusto Pinochet retired as head of the Army to become a senator-for-life. It proved no sinecure.

Maori protesters occupied land on the shores of Lake Waikaremoana while a High Court judge told another crusader, Winston Peters, to give up on the wine box.

Paremoremo erupted into violence as prisoners protested against tougher regulations.

Titanic was the big winner at the Oscars; the top individuals were Jack Nicholson, Helen Hunt, Robin Williams and Kim Basinger.

After a free concert that brought the crowds back to a sun-lit centre of Auckland, Mercury Energy declared the power crisis officially over. Two hours later the city was "celebrating" with another power cut.

Globally, the past three months had been the warmest on record.

And the Asian financial crisis, the Clinton sex saga and the hunt for Ben and Olivia continued.

APRIL

Energy was the local word of the month. Challenge arrived to provide price competition at the petrol pumps, the Government announced details of the carve-up of the Electricity Corporation and Wairoa celebrated the discovery of a gasfield.

Northern Ireland negotiators produced an agreement aimed at ending 30 years of violence. Closer to home the Australian Government's attempts to take on union power sparked confrontations on the wharves.

The American Federal Reserve Board predicted that the global bill for repairing Year 2000 computer glitches could be as much $US300 billion.

The month brought with it the retirement of the year: rugby's Sean Fitzpatrick hung up his boots after 92 tests, 51 as captain. Also D.J. Cameron, doyen of New Zealand cricket writing, retired from the Herald, later to be honoured with the Hillary Commission's lifetime award for services to sports journalism.

Peacemaking worked in Bougainville, a decade of civil war ending with a little help from Papua New Guinea's neighbours.

The Clinton-Starr-Lewinsky saga recorded a win for the President: a federal judge dismissed the Paula Jones sexual harassment lawsuit. At last a development in the Ben and Olivia case; a man is charged with stealing a dinghy linked to the investigation.

MAY

The Taranaki-King Country byelection sent messages in all directions: a close call for National at the hands of Act and a dismal showing for New Zealand First.

European leaders made the final decision to launch their single currency on January 1 1999, overshadowed by a compromise over the appointment of the head of the new central bank that raised doubts about its independence.

Simmering Indonesia boiled over. Troops fired on crowds; students were killed and pressure increased on President Suharto until he finally handed over the reins to his deputy, Jusuf Habibie.

Mergers kept the business world buzzing: in this month's contributions, Daimler-Benz took over Chrysler and Volkswagen moved on Rolls-Royce.

India tested its nuclear capabilities, triggering cries of "arms race" and recriminations over failings of American intelligence. Pakistan ignored pressure and followed suit.

The high point of the year for New Zealand rugby: the Black Ferns were the world champions.

Crime and art came together often in 98. In Rome, robbers spent the night in the National Gallery of Modern Art, tied up the guards and left with two Van Goghs and a Cezanne.

Voters on both sides of the Irish border expressed strong approval for the Good Friday peace plan.

Tariff cuts prompted a short-lived scheme to send thousands of cars on a trip to Fiji in an attempt to drive them through a date loophole.

The final chapter of an adoption scam ended in a South Auckland court when a Texan woman pleaded guilty to charges of fraud related to smuggling a baby from Indonesia, was fined $60,000 and deported.

Obesity and impotency drugs Xenical and Viagra hit town.

And the Spice Girls were no longer five - Ginger quit.

The Asian crisis went on and so did the Clinton saga. Police hunting Ben and Olivia retrieved "an item of interest" from the depths at the mouth of Endeavour Inlet.

JUNE

The month started with Susan Devoy becoming the youngest New Zealand dame.

Mortgage interest rates began a slide that took them from a floating 11.25 mark to under 6 per cent by the end of the year while the dollar dropped under the US50c mark for the first time in 12 years. Amid the doom and gloom, the AMP share float took off with a bang.

The World Cup started with an own goal by Scotland to help Brazil and an own goal by organisers over ghost tickets. Iran knocked out the United States.

Hoodlums - English and Germans in the vanguard - tried but failed to ruin the festival.

Pauline Hanson and her One Nation Party scared Australians with a strong showing in the Queensland state elections.

Four men, including two murderers and an individual described as one of the most dangerous criminals in the country, broke out of Paremoremo, starting a hunt that spread into the Coromandel before they were caught.

President Clinton said all the right things in China.

Northern Ireland voters created an administration that included sufficient opponents to the peace deal to make life difficult.

The Asian fallout and the Clinton saga continued while the Marlborough Sounds mystery came to a climax with the arrest of Scott Watson.

JULY

A month of natural disasters. More than 10,000 people died when a cyclone ripped through a city of shacks on the coast south-west of the Indian capital; tidal waves pummelled Papua New Guinea, obliterating villages and claiming 3000 lives; and flooding brought chaos to the Yangtze River valley.

At home, storms lashed the upper North Island, leaving death and destruction, followed by regular deluges that created the flood of the century.

It was a big sporting month. At Wimbledon, Jana Novotna buried the memory of her 1993 choke against Steffi Graff while Pete Sampras tied Bjorn Borg with his fifth title. The Tour de France cycle race hit the road in Ireland. By the end, few would remember the winner of the 1998 event, his name buried under the weight of drug raids, charges, riders' stopworks, admissions of drug-supplying, detentions, suspensions and expulsions.

But nothing else really mattered for the French: they won the World Cup (there's only one, all the others require qualification). Viva la France.

Hong Kong lost its spectacular gateway but major problems with its new airport forced freight handlers to revert to familiar Kai Tak.

In big business, BMW returned to the race for Rolls-Royce; getting part of the business and all the trademark from rival Volkswagen, while in small business a "moms and dads" share float gave many a small holding in Auckland Airport.

The death of three boys, nine, 10 and 11, in a Ballymoney fire-bombing was a stark reminder that peace and Northern Ireland still have a long road to travel before they get together.

Mental healthcare remained under the spotlight with the sentencing of Janine Albury-Thomson to four years in jail for the manslaughter of her autistic daughter, Janine, a term reduced on appeal to 18 months.

Simmering discontent in New Zealand First reached boiling point with Tau Henare's removal from the deputy leadership. Neil Kirton brought an unhappy month to an end for Winston Peters' team with his resignation, which created a hung Parliament.

The Asian crisis claimed its biggest victim. Japanese Prime Minister Ryutaro Hashimoto quit after a heavy defeat in Upper House elections. The Foreign Minister, Keizo Obuchi, replaced him.

Latest on the Clinton saga: Monica Lewinsky won immunity in exchange for testimony; the President decided to testify before a grand jury.

And shops became battlegrounds: Teletubbies went on sale.

AUGUST

Labour prepared for the next election by signalling cooperation with the Alliance; Helen Clark addressed the Alliance conference. Such teamwork was in marked contrast to the shock of the year: Winston Peters led his party's ministers out of cabinet in protest at the Wellington Airport sale; Jenny Shipley responded by announcing the end of the coalition Government and sacking Mr Peters as Deputy Prime Minister and Treasurer. The country ended up with a minority National Government depending on support from Act, New Zealand First defectors and independents.

The High Court rejected urban Maori's claim to fisheries assets.

If last month was not bad enough, Typhoon Otto bore down on the already flooded Yangtze valley, triggering the worst floods in China for more than 40 years.

Beijing, acknowledging that poor planning and official neglect were partly to blame for disastrous flooding, called for an end to deforestation in the upper catchments of the Yangtze.

Unemployment at 7.7 per cent reached a four-year high.

American embassies in Kenya and Tanzania were bombing targets, leaving more than 60 dead and a fuming Washington plotting reprisal attacks against what it described as terrorist bases in Afghanistan and a chemical weapons factory in Sudan. Intelligence about the latter proved doubtful.

From the art-and-crime file, in a daylight raid on the Auckland Art Gallery, a gunman stole Jacques-Joseph Tissot's $2 million Still on Top, which, although recovered, was badly damaged; the Colin McCahon mural removed from the visitors' centre at Lake Waikaremoana in June 1997 came to light in good condition.

Russian stock and bond markets went into free fall, the rouble was allowed to devalue and a moratorium was declared on debt. Yeltsin dismissed his cabinet - again. World stockmarkets responded with a thud.

Infection at an Auckland school prompted the scary cry: diphtheria is back.

More "peace" in Northern Ireland: a car bomb in Omagh killed 28 in the worst attack in the province's 29-year conflict.

A pilot was praised for efforts to save a plane that crashed in Foveaux Strait, claiming his own life and those of five of his 10 passengers.

Sign of the times: local independent liquor retailers prepared to take advantage of changes allowing parallel importing.

Australians who mocked Auckland power woes had their comeuppance: contamination affected Sydney's water supplies while a month later an explosion shut down Melbourne's gas supplies.

Clinton update: The President told the country he did have a relationship with Monica Lewinsky and regretted misleading people, including his wife.

Asia update: the disease reached the American stockmarket.

And the month brought to an end the worst All Black season since 1949, with five test losses in succession.

SEPTEMBER

Last month it was diphtheria; this month it was tuberculosis as six cases were discovered in a South Auckland school in the first mass outbreak of the disease in a decade; another occurred in November.

Malaysia turned its back on the free market with a clamp on currency trading, pegged the ringgit to the dollar and demanded all ringgit held abroad be returned before the end of the month. Prime Minister Mahathir sacked his deputy, Anwar Ibrahim, beginning a month of unrest as the backdrop to the Commonwealth Games, culminating in street riots and claims by Anwar that he was beaten by police.

At the Games themselves, rugby's horror season was given some relief with a gold medal, a timely boost to the New Zealand effort in Kuala Lumpur, where a bag of medals and Craig Barrett's non-scoring walk rendered premature a claim back home that New Zealand athletes lacked a "killer instinct."

A Swiss Air jet crashed close to the Nova Scotia coast, killing all 229 on board.

More art and crime: Charles Goldie's Rahapa, Ohinemutu was sprayed with red enamel paint in the Dunedin Public Art Gallery.

Rob Waddell became the sports achiever of the year: world champion in the single sculls at Cologne, Germany.

Germany also saw the end of an era: voters swept the Christian Democrat-Free Democrat coalition from power and with it Chancellor Helmut Kohl.

Ngapuhi included the Waitangi treaty house in their land claims.

Baby L died after becoming the centre of court action to decide whether she should continue to be treated for rare abnormalities that stopped her feeding or breathing on her own.

Busy Clinton saga month: President finally apologised for his "bad mistake"; special prosecutor Kenneth Starr finally sent his 445-page report to Congress; and a tape of the President's testimony was released for public consumption.

OCTOBER

The Hikoi of Hope arrived at Parliament after spreading a message of a need for real jobs, affordable housing, improved health and education systems and reasonable wage and benefit levels.

In Australia, voters burst One Nation and Pauline Hanson's bubble while returning the Howard Government.

A real peace message for Ulster: the Nobel price was given to the Catholics' John Hume and Protestants' David Trimble.

Sports ownership arrived. The Warriors league team was bought by private interests, including former national coach Graham Lowe and the Tainui Maori Trust Board. On the water, Barbara Kendall and Aaron McIntosh were world board-sailing champions. And A.J. Hackett set a world record for a bungi off a building with his leap from Auckland's Sky Tower.

In national politics, the Code of Responsibility was quietly dropped and Tau Henare launched his new Mauri Pacific Party with policies that included mandatory teaching of Maori in all primary and intermediate schools. At a local level, sitting mayors felt the effects of dissatisfaction as voters inflicted defeats on many incumbents, including Auckland City's Les Mills.

Britain responded to a Spanish magistrate's request to hold Chile's Augusto Pinochet for possible extradition on genocide, terrorism and murder charges. High Court judges said heads of state were immune from prosecution elsewhere, a ruling overturned a month later by the Law Lords.

In efforts to get together, Taiwanese and Chinese talked at the highest official level since 1949 and Israelis and Palestinians reached a land-for-peace deal that brought an immediate car-bombing response from extremists.

In business, the tables were turned on raider Brierley Investments as a Disney-linked company got the troubled company in its sights, only to have its bid rejected.

And the Employment Court prevented the Fire Service from sacking 1600 firefighters and making them apply for 300 fewer positions, describing it as an unethical employer.

South Africa faced its truth and reconciliation report with little stomach for the truth and apparently a long way from reconciliation.

Typhoon Mitch set the scene for a major disaster in Central America. At home floods wreaked havoc down the west of the North Island.

And the sagas: the House voted to begin impeachment procedures; Japanese corporate bankruptcies soared.

NOVEMBER

Nicaragua, El Salvador and Honduras became disaster areas as the devastation inflicted by Mitch unfolded with more than 10,000 dead and hundreds of thousands homeless.

Sporting month of taking the smooth with the rough. One sire's two daughters did New Zealand proud as Zabeel offspring Jezabeel and Champagne quinella the Melbourne Cup; Frank Endacott became the first New Zealand league coach to win a series in Britain in 27 years: reward, an uncertain future. And the English pair, Nick Faldo and David Carter, tamed the winds and what Greg Turner described as a terrible golf course to win the world cup of golf at Gulf Harbour.

American Vice-President Al Gore resorted to what Prime Minister Jenny Shipley described as megaphone diplomacy as he lectured the Malaysian Government on human rights, drawing attention away from the Kuala Lumpur Apec summit's economic advances - if there had been any.

The wine box is not closed after all. The Appeals Court overturned a High Court direction to Winston Peters to put a lid on it.

Crime of new and old styles: vandalism on the Net destroyed more than 4500 New Zealand Web sites while assassins killed Galina Starovoitova, one of the few politicians in Russia to enjoy public respect.

Palestinians celebrated the most tangible evidence yet of their progress towards statehood: the opening of their international airport.

Question of the month: could Auckland handle the America's Cup influx and Apec at the same time?

And, after all that focus on Clinton's habits, voters took the opportunity during mid-term congressional elections to send the message politicians had not been hearing - we've had enough of Monica Lewinsky.

Democrats make ground on the majority saga-stirring Republicans.

DECEMBER

But still it went on. In fact, December provided timely climaxes to the year's running stories.

The United States House Judiciary Committee sent four impeachment articles to the full House. Ten days later William Jefferson Clinton became only the second American President to be impeached. The House voted 228 to 206 to send two of the articles to a Senate trial. The public response: the President's job-approval rating climbed over 70 per cent.

The United States and Britain finally responded to Saddam Hussein's obstruction of United Nations weapons monitors. Four days of bombing and missile attacks left the Iraqi leader defiant, nominal allies critical and most questions unanswered.

Deposition hearings in Blenheim brought our own on-going story to the end of a chapter. Scott Watson was committed for trial on charges of murdering Olivia Hope and Ben Smart.

Janine Albury-Thomson was freed after serving five months of her sentence for killing her autistic daughter.

The Government said no to another frigate - for the time being - and yes to 28 fighter aircraft.

In Britain, the Home Secretary allowed extradition proceedings against General Pinochet to continue, only to have the Law Lords take the unprecedented step of setting aside their own decision denying the Chilean dictator immunity from arrest. They ruled that one of their number involved in the decision was too close to Amnesty International.

Sport suffered from charges of bribe-taking in the bidding for Olympic Games sites and bookie-assisting by Australian cricketers.

In the merger business: Exxon and Mobil; British Aerospace and DaimlerChrysler Aerospace; British and Swedish drug giants Zeneca and Astra.

Violent crime hit small communities with a fatal home invasion in Reporoa and another attack in Ohakune. Overseas, the bodies were recovered of a New Zealand worker and three British colleagues who had been kidnapped by Chechen rebels.

The Sydney-Hobart yacht race turned into a tragedy as storms left two crew dead, six missing and 10 yachts abandoned.

And the economy took us out on a positive note.

- Compiled by Chris Rosie