Tui time, Dear Leader?
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“Over time, as they get to see the merits of the overall programme and recognise what the Government’s trying to do, which is basically to build more assets for New Zealanders but not put more debt on the balance sheet, and as they have an opportunity to invest, I think they will warm to that. I think it will take some time but I think they will get there.”
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If Dear Leader thinks that the public will “warm” to the idea of asset sales, then he is further out of touch than I ever thought possible,
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Unless Dear Leader is privy to research that the rest of us are not, every poll thus far shows steadfast public opposition to asset sales. Even two polls on politicians’ websites – one, Peter Dunne, and another belonging to Bill English – showed a massive opposition tostate asset sales. (Neither polls are accessible on those websites, and have been taken down.
See: Is Peter Dunne about to become the Man of the Year?
As the first sale nears, National will find public antipathy and pressure increasing. National’s own internal polling is probably showing anger increasing and support for National dropping.
The next public opinion polls will be crucial. If National stays steady in poll ratings – the sale process will proceed.
If National drops below 40% in those polls – expect the sale process to go the same way as Hekia Parata’s plans to increase class-room sizes.
In which case, John Key’s only “exit strategy” is to “post-pone” the sales indefinitely and put the blame on an increasingly uncertain global situation.
Why not? He’s used that excuse countless times before.
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Other blogs
Tumeke: Why people hate John Key
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Build more assets by selling them. That is just completely illogical.
It ain’t Uranus Frank. They don’t even live in the same universe as me. I live in reality. John Key lives in loonie-land.
Sir Peter Dunne, the next Speaker of the House of Representatives
Like hell I’m warming to asset sales. I’m getting more pissed off as timre goes. I’m on the next protest march to parliament!!
I think he picked John Key’s planet perfectly Matt. Ur-anus. Geddit? It’s where most of Key’s words come from.
In which case I think this is worth repeating, Remember remember the fifth of November
Peter Dunne, treason and plot.
I see no reason why Peter Dunne, treason
Should ever be forgot…
He has to back out. He’s got no choice if he wants to see a third term for his party. Dunne is dog tucker and ACT is history. So he’s between a rock and a hard place if he persists. Key can carry on with the privatisations, but it’ll be his swan song.
The only thing that would warm me would be this guy on a bonfire.
oh Mark yes indeed reminds me of that song ‘build a bonfire build a bonfire put the wanker on the top’ lol hiya Toko bloody key saying we’ll warm stupid idiot when we can’t afford power, ew ew horrible bloody man
I notice his recent pic’s r showing signs of utter stress”like should i or not” but long comes jimney cricket to say ”oh go on the public gonna luv u for it”..yeah right Grrrrrrrrrr
I’m really going to miss TVNZ7, but the fight was unsuccessful, it’s gone. In the grand scheme of things there are some other issues that are so much bigger. What about asset sales?
I would recommend anyone buying shares to keep silent about it. They will be buying off ‘us’ the right to exclusive ownership of those shares and the dividend stream we all collectively enjoy at present. They will also ‘own’ the responsibility of putting up the power prices – they should hold keep VERY QUIET.
I’m interested in buying shares. What will happen to me?
Depends what your friends are doing Curious George? If they too are buying shares you will all be happy to have cut yourself a slice of the action and will be able to share warm fuzzies together. If your friends don’t buy shares and have trouble paying their power bills as they rise, I guess you will want to keep quiet about any share purchase.
Just asking Janya if these power companies belong to or r kiwi owned why is it that we r encouraged to buy shares….was this the governments intention to keep our power companies here?? or was it purely to sell it off to pay bac elusive foreign debt…im kind of missing the point here??…im of the thinking that its unfair to everyone else as we as majority cannot afford to buy any shares, um why is it a hush,hush …im not angry about it, u could say inquisitive about the logic of it all
Hi Toko, I wondered for a while what the difference is between us owning the shares as we do now, or if we buy them from the government. Then I realised the ownership now is in collective form, held on our collective behalf by two ministers of the crown, the dividends collected by them and put to the government coffers for the benefit of us all. What the sell off does is to change that ownership from collective to exclusive. the new owners of the sold shares will own the shares exclusively and enjoy any dividends exclusively ( selfishly) the rest of us missing out. Privatised!. Anyone wanting to invest in these shares will not be doing it to reduce our power prices or share their dividends with us (who don’t buy any shares because we are happy owning them collectively). The will effectively be taking away our assets and making personal gain at our expense. Does anyone think they will be admired for their selfish actions??? that is why they will need to keep very quiet about their purchase as the majority of NZers will not want to know them.
As to the govt’s motives? I doubt it has much to do with any excuses they have offered, they are still finding a big enough lie the majority will swallow. It is not about any of their justifications, it is just about stealing our assets that make money to sell to their mates – if they have to do that via us “mums and dad’s”, well whatever gets them their gold at the end of the rainbow. Asuterity and assets stripping without the excuse of a debt level like Greece – but then they are woking on that too and if we get to 2014 under this govt we will be will on the way to that too!!
Geez thanks for that info Janya i thought it was a good deal buying into the shares but on second thoughts my eyes r thinking $$$ signs talk about “wakeup n smell the roses” tho i don”t have the money now till end of the year hm>>>>not a wise choice oh well back to square one again >>yep i got the picture tah for that
His talent is as a salesman. This is what is called “talking it up”.
I warm to the idea of him being sent to a Siberian Gulag as a gift of democracy and good will, if only to keep a Russian gangster’s bits warm in the winter
only thing warm bout Key is the gas from his ass, he’ll probably start taxing us on that, ew ew ew Wanker everyone’s freezing and he’s selling our rug from under us and bloody power companies have a free reign bills through the roof. Do think bout u all cold xx
Well said Janya. The poorest and struggling middle class won’t have much spare cash to put toward shares. They struggle to pay their power bills, rates, insurance, car rego, mortage or rent, student loans, food, clothing, medical bills, etc. Only Key could be so out of touch that he thinks we all have a few thousand bucks lying around.
On the investment side of what might happen, depends on the price of the shares but my pick on reading the financials for the last few years is the dividend paid is in excess of the real cash flow into these companies. The ‘net profit after tax’ has been considerably lower than the ‘dividends paid’ in many cases and this is not sustainable – can’t imagine how this could continue as the debt equity is now approaching 50:50 because the companies will have had to raise debt to pay the dividends.
(Don’t know what CraferFarms debt:equity was but he 100% owned the farms didn’t he? It is the DEBT that is the controling factor when it becomes a major part of the balance sheet.)
I suggested to the select committe that it was the likelyhood that the bleeding of dividends from these compainies was coming to an end – that was why they were being sold down, the only way to get significant $ in the future?
So how does that leave the ‘investment in shares’? potentially less dividend than currently paid – lower returns than promoted. If the company issues more shares for development or retiring debt – a call to shareholders for more money in a rights issue: accept that and more $ down the hole, don’t accept and the value of investment diluted.
Sound investment???? I don’t think so. Putting the money into PV solar panels on the roof and reduce having to buy power? ABSOLUTELY.
But opps, that will create holes in the generators income, oh dear less dividends to shareholders or power prices up again ……
I’ll be investing in PV solar panels and am currently helping to advocate for our local council to support a scheme to help consumers into PV Panels.
(These are personal observations not financial advice.)
Been thinking recently about the public reaction to asset sales in the 80′s as compared to today. The most vocal in opposition to this round of asset sales appear to be those mid 40′s and under, many of us were too young to understand then what the fuss was, and those with the comprehension to grasp the consequences had little way of reaching the alleged grown-ups of our concerns.
Generation X witnessed this happen the first time but our voice was not heard – we know our history and we don’t want to see it repeat.
But there is another factor, comparatively speaking the 80′s were a time of plenty, excess even, the greed that came to symbolise this time was recognised much later. Society today is different, and one of the growing differences is the separation of the classes, we have a clearly defined rich and poor – we have poverty.
The reasons for poverty are huge and some can be attributed to choices, but not all. Regardless of choice the victims are kids, and when kids grow up in poverty the cycle can continue – its called the poverty trap. Inter-generational joblessness, homelessness and crime, and as has happened for hundreds of years this creates anger.
Enter alongside this John Key calling out to ‘Mum ‘n Dad’ investors with $1000 to buy a personal stake in what is already owned collectively. A call for NZer’s to be selfish is unpalatable to most, but it is the pitch to the “have-not Mum’s & Dad’s” that has proved so insulting
This is more than an argument about asset sales and learning from what has gone before.
This is about class
I’m too young to know anything about the 1980s and only a little of the 1990s Mike but thanks for filling in the gaps. you help complete the picture of why seling our power companies is not a good idea
My dad won’t be voting National this time. Mum has always been a Labour voter.