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Posts Tagged ‘asset sales’

Letter to the Editor: Kiwi style or American style?

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FROM:       "f.macskasy" 
SUBJECT:     Letters to the editor
DATE:        Wed, 14 May 2014 23:59:33 +1200
TO:         "Dominion Post" <letters@dompost.co.nz> 

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The Editor
Dominion Post

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I am dumbfound. Absolutely gobsmacked.

With New Zealand's sovereign debt now around $60 billion (as
at November 2013) and having increased by $27 million a day
since National took office - John Key is kite-flying with
suggestions of further tax cuts?!

Is this how National exercises fiscal responsibility -
bribing voters with yet more unaffordable tax cuts?

Previous tax cuts in 2009 and 2010 were paid for with assets
sales; taxing children on their paper rounds; increasing
prescription charges; as well as unsuccessful  attempts to
tax carparks and cellphones. Currently, National is planning
to sell off 5,000 State houses that were once homes to
low-income families.

Instead of tax cuts, New Zealanders might care to tell the
Prime Minister that we should be funding education so that
parents don't have to fork out  $357 million a year in
so-called "voluntary donations" and spend long hours 
fundraising to pay for  supposedly "free" schooling.

It is patently simple. We can have free education and public
healthcare. Or we can have tax-cuts. But we cannot have
both. 

This is the moment we decide whether we want public services
for all New Zealanders, regardless of their financial
circumstances - or an American-style user-pays.

I hope we choose wisely.


-Frank Macskasy
[address & phone number supplied]

 

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References

NZ Herald:  Parents fundraise $357m for ‘free’ schooling

Fairfax media: Public debt climbs by $27m a day

Radio NZ: PM John Key dangles tax cut carrot


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the Editor: what is a politician’s promise worth?

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FROM: 	"f.macskasy" 
SUBJECT: Letters to the Editor
DATE: 	 Sun, 16 Mar 2014 21:10:15 +1300
TO: 	"Sunday Star Times" letters@star-times.co.nz 

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The Editor
Sunday Star Times

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Winston Peters has pledged that his Party's bottom line is
the re-purchase of all shares in Meridian, Genesis, and
Mighty River Power at "a price no more than that initially
paid for them".

This is stated on NZ First's website, and Peter's reiterated
his pledge on TV3's 'The Nation' on 15/16 March.

I sincerely hope that Mr Peters' promise to buy back the
powerco SOEs fares better than his pledge in 1996, to buy
back Forestry Corp's timber cutting rights. Forestry Corp
was privatised by the Bolger-led National government for
around $1.6 billion to a consortium made up by Fletcher
Challenge Forests, Brierley Investments Ltd,  and Chinese
state-owned company,  Citifor Inc (now known as CITIC
Group).

Peters promised during the 1996 general election;

“I want to tell the Chinese buyers and I want to tell
Brierleys that they had better not make any long-range plans
because the day after the election is over we will be
sending them an emissary to them them exactly what is going
to happen, that is, that we are going to keep out promise,
they can give back the asset and we will give the money
back.”

The buy-back never happened, despite Mr Peters becoming
Treasurer and Deputy PM on 11 December 1996. His pledge
quietly disappeared.

Let's hope the same fate does not befall his pledge to buy
back the powerco shares.

-Frank Macskasy
(address  & phone number supplied)

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Related blogposts

Fool me Once, Shame on you

Winston Peters recycles pledge to “buy back state assets” – where have we heard that before?

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Tiwai Point – An exercise in National’s “prudent fiscal management”?

26 February 2014 Leave a comment

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corporate welfare 1

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Timeline

3 October 2007: Meridian and NZAS/Rio Tinto sign agreement for the continuous supply of 572 megawatts of power to the Tiwai Point smelter for 2013 to 2030.

30 October 2011: National government announces partial asset sales, of Genesis, Meridian, Mighty River Power, Solid Energy, and a further sell-down of Air New Zealand.

9 August 2012: Meridian Energy (electricity supplier to Rio Tinto) announces that Rio Tinto/Pacific Aluminium is demanding to renegotiate its electricity supply contract between the Tiwai Point aluminium smelter and Meridian.

10 August 2012: Rio Tinto CEO, Tom Albanese, warns that the smelter will be closed “if they cannot be viable, we have difficult decisions to make”.

7 September 2012:  Rio Tinto/New Zealand Aluminium Smelters  announces it will  make 100 workers redundant by November 2012.

7 August 2013: Rio Tinto/New Zealand Aluminium Smelters  announces 30 maintenance workers to be made redundant at the Tiwai Point smelter.

8 August 2013: National government announces agreement to give cash subsidy of  $30 million  to Rio Tinto, and Meridian Energy to supply the smelter with cheaper (price undisclosed) electricity than agreed in 2007.

9 August 2013: Bill English confirms that he has not sought a guarantee from Rio Tinto that jobs will not be lost at the smelter.

20 August 2013: National government announces details to sell 49% of Meridian Energy.

14/15 February 2014: Rio Tinto announces a   $4.43 billion ($US3.7 billion) annual after-tax profit. Rio Tinto shareholders recieve a 15% increase in dividends.

An exercise in National’s “prudent fiscal management”?

We were conned.

There is no other way to describe events between October 2007 and February this year; we were conned by a multi-national mining/metals giant that exploited National’s core-policies, for their own gain.

How else to describe the above events?

Once National announced their intention to partially-privatise Meridian Energy and float it on the New Zealand  (and Australian) stock exchanges – Rio Tinto realised that the price of Meridian shares would be determined by the income they derived from selling electricity.

As Green Party co-leader, Russel Norman stated,

”Rio Tinto took advantage of Mr Key’s obsession with asset sales by threatening to derail the sale of Meridian by closing the Tiwai smelter, so Mr Key gave them $30 million of public money.”

Rio Tinto was Meridian’s biggest customer, supplying  Tiwai Point  with approximately 15% of New Zealand’s total  electricity output. As such, Rio Tinto had Meridian  (and by proxy, the National Government) by the balls. And on 7 September 2012 and 7 August 2013, Rio Tinto squeezed.

By making  130 workers redundant, it sent National, and it’s compliant  leader, a clear message; “Don’t f**k with us, Johnny-boy. These 130 plebes are an example of what we can do to screw you over“.

Had Rio Tinto followed through on it’s threats (and make no mistake – they were threats), it would have brought down the government. That would have ended Key’s career and his reputation would have been in tatters. No Knighthood or beersies for Johnny-boy!

Key had no choice but to capitulate. Key admitted as such when he said on 14 February,

“At the end of the day I think the Government took a modest step to ensure there was a smooth potential transition there – that we didn’t have a glut of electricity we couldn’t use or that thousands and thousands of Southland jobs are out at risk.”

The resulting loss of 700 jobs at the smelter,  and a further 2,500 downstream throughout Southland, would certainly have been embarrassing for Key and damaging to National .  But this is a government that has overseen the sacking of approximately 3,000 state sector workers (up to August 2012) and 29,472 few jobs in the manufacturing sector, since 2006 (2013 Census results), so unemployment per se is not a problem that overly concerns right-wing government ministers.

What really threatened this government was Key’s reference to a “glut of electricity” – note the words. A glut of electricity would have de-railed the entire asset sales programme. Result; end of National; end of asset sales programme (and the neo-liberal agenda on the whole), and the end of Key’s career.

This shabby, self-serving, politically-expedient exercise, has cost us – the tax-payer – $30 million, plus an even cheaper electricity deal than probably anyone else in this country gets. No wonder the contract price is even more uber secret than the goings-on at the GCSB – the public would erupt in fury if they came to know what our electricity was being sold for, whilst the rest of us have mounting power prices, year after year after year.

Meanwhile, the lowest paid workers in New Zealand’s rest homes are paid just barely above the minimum wage;

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Resthome spy hails saint-like workers

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To which our well-heeled Prime Minister responded thusly,

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PM  No money for aged care workers

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To quote Dear Leader,

“It’s one of those things we’d love to do if we had the cash. As the country moves back to surplus it’s one of the areas we can look at but I think most people would accept this isn’t the time we have lots of extra cash.”

Interesting. Key and his Cabinet cronies found $30 million to throw at a multi-national corporation – which only six months later posted a $4.43 billion ($US3.7 billion) annual after-tax profit.

But no money for the lowest paid, hardest-working people (predominantly women) in our community. Key responded to Russell Norman’s criticism of the $30 million welfare handout,

“If Tiwai Point had closed straight away then hundreds and hundreds and hundreds of jobs would have disappeared and the Greens would have said the Government doesn’t care about those workers and is turning their back on them so they really can’t have it both ways.”

If only we could believe Key. But considering that thousands  lost their jobs since the Global Financial Crisis, and National has not bailed out any other company, the Prime Minister’s protestations ring hollow.

In fact, it’s fairly well obvious that the taxpayer-funded payout to Rio Tinto had nothing to do with jobs or the Southland economy – and everything to do with the state assets sales. As David Hargreaves wrote on Interest.co.nz,

“So, it will cost you, I and him and her a combined NZ$30 million of our hard-earned to keep the Tiwai Point aluminium smelter open just long enough so that the Government can flog off 49% of Meridian Energy.

That’s about the size of the deal struck between Meridian and the company controlled by global giant Rio Tinto, with additional sugar coating supplied by the Government, courtesy of us.

From the point the Government first stepped in earlier this year in an attempt to ‘help out’ it was always obvious tax payers were going to be forced to front up with some readies for the pleasure of keeping the always controversial smelter running for a while longer.

I have no doubt that the smelter will be closed in 2017, which is now when the owners get the first chance to pull the plug.”

The most asinine aspect to this deal (and there are many) is that Finance Minister,  Bill English, told Radio New Zealand on 9 August 2013 that “ensuring the safety of those jobs was not part of the deal and no undertakings were sought on the operation of the company”.

No guarantee for preserving jobs?!

Question: So what, precisely, did $30 million buy?

Answer: Rio Tinto not rocking the boat and upsetting National’s asset-sales programme.

This was a most odious, repugnant deal.

Every New Zealander contributed some of their hard-earned cash, which ended up in Rio Tinto’s shareholder’s pockets.

All done to achieve the sale of state assets which we own.

John Key gave away our money; which ended up in shareholder’s pockets; to sell assets we own; to other share investors.

This is the crazy side of National’s economic policy. This is  corporate welfare and crony capitalism rolled into one. Which begs the question to National’s supporters; is this what they see as “prudent fiscal management”?

How “prudent” is it to pay a subsidy to a multi-national corporation, that posted a multi-billion dollar after-tax profit,  that will most likely close the smelter regardless in some near future date (2017?)?

And why was that $30 million not invested in other job creation industries in Southland, so that a multi-national corporation could not hold this country to ransom? After Rio Tinto and Warner Bros – who is next to hold a gun to our collective head demanding a taxpayer subsidy/payout?

This was an odious, repugnant and wasteful deal.

This should not be allowed to be forgotten this election.

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John Key says I'd like to raise wages but I can't

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References

NZ Herald:  Meridian boss hails deal with smelter

Radio NZ: Details of Meridian share offer announced

Radio NZ: National announces plans for asset sale profits

TV3: Rio Tinto seeks new Bluff smelter terms

TV3: Rio Tinto eyeing smelter closures

Australia Mining: Rio Tinto’s New Zealand smelter to axe jobs

Fairfax Media: More jobs to go in smelter revamp

Interest.co.nz: Govt pays NZ$30 mln to smelter owners in a deal that will clear the way for the float of Meridian Energy

Radio NZ: No job guarantees sought in smelter deal

Otago Daily Times: Rio Tinto profit more than $4.4b

NZ Herald: PM defends $30m payout to Rio Tinto

NZ Statistics: 2013 Census QuickStats about national highlights

Dominion Post: 555 jobs gone from public sector

Fairfax media: Resthome spy hails saint-like workers

Fairfax media: PM – No money for aged care workers

Interest.co.nz:  Opinion: There was a certain inevitability the long-suffering taxpayer would be ‘invited’ to cough up for the pleasure of keeping the Tiwai Point smelter open

Previous related blogposts

John Key’s track record on raising wages – 4. Rest Home Workers

“It’s one of those things we’d love to do if we had the cash”

2013 – Ongoing jobless talley

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The Cost of Living

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 18 February 2014.

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Radio NZ: Nine To Noon – Election year interviews – David Cunliffe

26 February 2014 Leave a comment

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- Radio NZ, Nine To Noon -

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- Wednesday 25 February 2014 -

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- Kathryn Ryan -

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On  Nine To Noon, Kathyrn Ryan interviewed Labour’s leader, David Cunliffe, and asked him about coalition negotiations, policies, polls, and other issues…

 

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Radio NZ logo -  nine to noon

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Click to Listen: Election year interviews (27′ 50″ )

A major policy statement by David Cunliffe;

@ 22.00:  “We will create incentives for private employers to be certified living wage employers, who pay the living wage  to all their employees, by giving them a preference in  Crown contracts.”

This will not only support firms that pay their staff properly – but will de facto give preference to local businesses to supply goods and services!

If this doesn’t motivate Small-Medium Enterprises to switch their allegiances from the Nats to Labour, I don’t know what will!

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Has Key just insulted 1,058,638 National voters?

21 December 2013 Leave a comment

As was predicted, Key’s response  to voter turnout to the asset sales referendum has been dismissive and derisory,

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PM playing down voter turnout - 13.12.13

Source

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With “only” 1,297,281 voting papers returned,  Key was obviously unimpressed,

Well the numbers don’t look like they’re that significant. I mean at the moment it’s sitting at around about 40 per cent.

Key added that the number was ” not absolutely amazing, it’s not overwhelmingly opposed“.

Considering that 1,058,638 people voted for National in 2011, does that also mean that Key is dismissive of National’s electoral support in 2011 as “ the numbers don’t look like they’re that significant“; “not absolutely amazing“; and not “overwhelmingly opposed ” to the Labour Party’s anti-asset election campaign?

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electoral result 2011

Source

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Because from where I stand, 238,643 more people participated in the  asset sales referendum  than voted for National, two years ago.

I’m sure 1,058,638 National voters would be unimpressed at the suggestion that they “don’t look like they’re that significant “.

That’s the trouble when a Prime Minister casually describes nearly a quarter of the country’s population as not “significant”. That’s a lot of people to dismiss out of hand.

And a lot of aggrieved voters.

This blogpost was first published on The Daily Blog on 14 December 2013.

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References

Wikipedia: 2011 Election results

Fairfax media: PM playing down voter turnout

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Radio NZ: Politics with Matthew Hooton and Mike Williams – 16 December 2013

16 December 2013 2 comments

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- Politics on Nine To Noon -

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- Monday 16 December 2013 -

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- Kathryn Ryan, with Matthew Hooton & Mike Williams -

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Today on Politics on Nine To Noon,

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Click to Listen: Politics with Matthew Hooton and Mike Williams ( 22′ 37″  )

This week:

  • Len Brown

Listen to Matthew Hooton’s surprising analysis of Len Brown’s hotel room upgrades.

  • Paula Rebstock and the MFAT Inquiry
  • Asset sales referendum
  • Christine Rankin vs Paula Bennett

en Brow.

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Letter to the Editor: Key’s arrogance shines through

16 December 2013 2 comments

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FROM:    "f.macskasy" 
SUBJECT: Letter to the Editor
DATE:    Mon, 16 Dec 2013 08:09:19 +1300
TO:      Dominion Post < .co.nz >

 

The Editor
DOMINION POST

As predicted by many, Prime Minister Key has been busily
dismissing and deriding the results to the recent asset
sales referendum with comments like these;

"Well, the numbers don’t look like they’re that
significant. I mean at the moment it’s sitting at around
about 40 per cent.     That’s not absolutely amazing,
it’s not overwhelmingly opposed. But the people who are
motivated to vote will be those who are going to vote
against." 

And,

"They were expecting a big turnout, they were expecting a
big vote in their favour and they didn't get either of
those. Overall what it basically shows is that it was a
political stunt."

John Key's increasingly strident utterances and arrogant
nature is becoming more public with each passing day and it
has become abundantly clear to New Zealand how casually he
dismisses public opinion.

So be it.

At the next election I hope no National candidate has the
cheek to say that their party listens to public concerns,
because we will know that is a barefaced lie.

-Frank Macskasy
(address & phone number supplied)

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Email address

Dominion Post:   .co.nz (max 200 word limit)

References

NZ Herald: Asset sales proceed in spite of referendum

Fairfax media: PM playing down voter turnout

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