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Archive for 15 August 2011

Capitalism, top heavy and toppling – Bernard Hickey

This is must-read stuff…

Full article here.

It is worth noting that, here in New Zealand, recent tax cuts gave $2.5 billion a year to the top 10 per cent of earners and “practically nothing to the bottom 20 per cent of earners, who got 3 per cent of those cuts”.

It is also worth noting that, as a country, we are having to borrow $380 million  per week to – in part – fund those tax cuts.  That’s $17.6 billion this year alone.

Far from being a “prudent fiscal manager”, National is being highly irresponsible as it continues to woo the  Middle Class for their votes.

Only thing is: eventually it all has to be paid back. Even selling all out SOEs won’t cover that debt mountain, as we simply don’t have enough state assets left after the 1980s and 1990s.

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TVNZ7, Radio New Zealand, and distracting trinkets.

A neo-liberal is one who knows the price of everything and the value of nothing. In this case, this National government are slowly strangling good, quality broadcasters like RNZ and TVNZ7 – whilst  feeding us a daily diet of brain-cell deadening, pseudo-news on TV1 and TV3 and apalling programming that consists mostly of American sitcoms, cooking programmes, and bleak crime shows.

If only New Zealanders were as passionate about the lack of governmental support for quality broadcasting as we were about stranded penguins; “Wellywood” signs; and books by Ian Wishart.

Oh, but that would mean thinking about complex issues, wouldn’t it? Jerking the knee with superficial,  emotion-tugging,  issues is much easier:  no effort required.

The state-owned broadcaster registered itself as the Radio New Zealand Charitable Trust with the Charities Commission last month.

Some of its charitable purposes, which were listed on the commission’s website, included education, research, fundraising and providing grants to a number of individuals and groups.

A spokesperson for Broadcasting Minister Jonathan Coleman said the broadcaster still received $34 million a year but couldn’t say how long it had been receiving that amount.

A financial review of Radio NZ for the 2009/10 financial year showed it had a net deficit of $498,000 after tax, compared to a surplus of $13,000 the year before.

The review said RNZ had been too cash-strapped to participate in the 2010 New Zealand Radio Awards or put in a bid for the Rugby World Cup 2011 coverage.

Kedgley said she first thought the charity registration was a joke.

“I am appalled to discover that it is serious proposition and that the Board of Radio New Zealand has been forced by the Government’s funding freeze on Radio New Zealand to set up a trust so that it can go out with a begging bowl to the public,” she said.

“The move suggests there is quiet desperation at Radio New Zealand. The broadcaster simply cannot make ends meet under the Government’s funding freeze.”

Curran said the move raised some “serious questions”.

“Not the least of which is why the whole of RNZ has been registered as a charity, and what the long-term intention is,” she said.

“Radio NZ’s survival should not be dependent on it having to solicit donations. It is our state radio broadcaster and holds a special place in New Zealand.”

Broadcasting Minister Jonathan Coleman couldn’t be reached for comment and neither could RNZ chairman Richard Griffin.

Griffin told Fairfax earlier this year that RNZ could only survive a funding freeze for another two years.

He said the current freeze put the public broadcaster in a “more than difficult” financial position.

“If we’re left in a position where every year costs increase and funding remains static, we’re going to wither.”

It was believed that the charity was mainly to fund its concert station.

It is an unbelievable, bizarre state-of -affairs when a public service such as Radio New Zealand , has to register itself as a charity. If this doesn’t ring alarm bells with us, then we are truly asleep.

It should also give us cause for concern that National  will be closing down TVNZ7. This free-to-air; advertising free; public network is a wealth of news, documentaries, and offers an un-commercialised look at ourselves and the world around us.

TVNZ7  treats the viewer with intelligence and respect.  It is television as it should be – and not the mindless rubbish that we are now served up every day on other channels. (Parliament TV excepted – that contains very mature, erudite debate from our Honourable Members of Parliament.)

It is a great shame that two quality public services – TVNZ7 and Radio New Zealand – can be put in jeopardy through the lack of political support from the government-of-the-day, and because of public apathy.  If New Zealanders were as passionate about their own  public broadcasting system, as they were about wayward penguins, oh what a much more mature society we would be.

But we are like children, it seems, and easily enthralled by the latest distracting trinket.

New Zealand has often been described as a “young country”.

That is truer than we realised.

From “Nanny State” to “Daddy State”…

I don’t think there’s much question that  serious social problems in this country  are not being addressed in any meaningful way by this current government…

So is the Prime Minister, John Key, really  aware of what is actually going on in New Zealand right now?  Well, judge for yourself…

So what is National doing about soaring youth unemployment?

At their recent Conference, held in Wellington, they came up with this…

(Article abbreviated)

They’re going to clamp down on booze and cigarettes?!?!

That’s it?

Oh good lord! And people thought that Labour was “Nanny Statist”?!?!

I wonder who will be next to feel the iron fist of National’s Polit-buro state control? The retired? Civil Servants? Anyone using state hospitals???

Congratulations, my fellow New Zealanders: we have gone past Nanny State to Big Brother.

It might be worthwhile considering that,

  • Not all unemployed youth smoke
  • Not all unemployed youth drink
  • Even if they do,  Key says that they will still receive “a limited amount of money for young people to spend at their discretion“.  Like… on booze and ciggies?!
  • Even if they won’t have enough “discretionary pocket money” – what is to stop them stealing it? Or selling their Food Card for cash, and then buying ciggies and booze?

In the meantime, how many jobs will this piece of neo-Nanny Statism create?

The answer, I submit, is:

Even the NZ Herald was quick to acknowledge this simple fact in their August 16 editorial,

Yet there is also nothing in the Prime Minister’s announcement that creates jobs for young people. There, the Government still has work to do.”

Meanwhile, as National blames the young unemployed of this country for the world recession, and proposes to penalise them by tinkering with their only means of survival – the problem continues unabated,

The last time youth unemployment was this high was in 1992…

1992?

Wasn’t that the previous National government led by Jim Bolger, with Ruth Richardson as Minister of Finance? And didn’t she implement a slash and burn economic policy in her “Mother of All Budgets” that resulted in unemployment reaching over 10%?!?!

Why, yes. It was.

Are we starting to see a pattern develop here, folks?

It is abundantly clear that National has no clue how to address this problem. Attacking welfare benefits which keep people from starving to death, or more likely, breaking into our homes to find food, is not an answer. It is a cheap shot geared toward winning votes from uneducated voters who hold the illusion that living on a benefit is a cosy arrangement (it is not).

There are no policies being announced to create jobs, or to train young people into a trade or profession.

National should be throwing open the doors of our polytechs to train young people into tradespeople that the community desperately needs. With the re-building of Christchurch shortly to commence – where are the necessary tradespeople going to come from? (Most have buggered of to Australia.)

If this is the best that National can come up with, then, my fellow New Zealanders, we are in deep ka-ka.

Meanwhile…

Dr Mapp said the research science and technology was the way to create jobs, economic growth and a higher living standard for the country.

“To that end, it is vital that high-tech, exporting companies maintain their competitive edge in global markets.”

The grants range from $300,000 to $5.9m and run for three years.

They are valued at 20 per cent of the research and development spend in each business and provide a maximum $2.4m a year for three years.

Dr Mapp said they provide the businesses involved with more financial security over that period.

Businesses to get grants in the latest round were involved in  software development, biotechnology, manufacturing and electronics.

Wellington companies which received grants:

Core Technology: $629,400

Open Cloud: $2,394,920

Xero: $4,040,000

Xero was founded by Rod Drury in 2006,  who made $65 million in the same year after selling his email archiving system AfterMail. Xero purchased Australian online payroll company,  Paycycle, in July of this year for A$1.5 million.

Which begs the question as to why the government has given away $4 million of tax-payers money when the owner is ‘flush’ with $65 million and has enough capital to buy off-shore  companies elsewhere.

Is this a prudent use of tax-payers’ money,  especially when,

* government is cutting back on social services?

* government has cut back on youth training programmes?

* government is borrowing $380 million a week, and telling the rest of us to “tighten our belts”?

At a time when government is berrating unemployed 16 and 17 year olds for being on the dole and  “smoking ciggies”, instead of  providing meaningful training and/or employment, it seems that National is still “picking winners” in the field of commerce.

$4 million could go a long way in providing training, and a future, for many 16 year olds.

By contrast, how much do young people, living away from home, recieve from WINZ? It must be a grand sum, to earn the Prime Minister’s stern attention. The answer is:

It’s a shame they’re not “picking winners”  with our unemployed youth.