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Posts Tagged ‘500 extra pokies’

National under attack – defaults to Deflection #2

20 February 2013 23 comments

Twentyfour hours ago, the Auditor general released her report into questionable (some might say, dodgy) dealings between SkyCity and Dear Leader John Key.

Whilst the report supposedly “vindicates” National and especially Key, there are questions as to the preferential treatment afforded SkyCity.

The MSM is especially hot on this issue;

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Report sparks fresh debate over more SkyCity pokies

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SkyCity report slates Government ministers

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SkyCity 'treated very differently' in tender

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The SkyCity convention centre deal 10 quotes from the Auditor-General report

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Toby Manhire’s Listener report gives ten quotes from the report, which are damning in themselves,

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1. “We found a range of deficiencies in the advice provided and steps taken leading up to [the] decision.”

2. “Although decisions were made on the merits of the different proposals, we do not consider that the evaluation process was transparent or even handed.”

3. “By the time it was expected that SkyCity would put a firm proposal to the Government for support, officials should have been working to understand and advise on the procedural obligations and principles that would need to govern the next steps. We found no evidence that officials were doing so at this stage.”

4. “The meetings and discussion between the Government representatives and SkyCity were materially different in quantity and kind from those between the Government and the other parties that responded.”

5. “SkyCity was treated very differently from the other parties that responded and the evaluation process effectively moved into a different phase with one party. In our view, the steps that were taken were not consistent with good practice principles of transparency and fairness.”

6. “Overall, we regard the EOI [expressions of interest] process in stage two as having been poorly planned and executed. Insufficient attention was given to planning and management of the process as a whole, so that risks were not adequately addressed and managed.”

7. “We did not see any evidence of formal discussions or decisions on the evaluation process and criteria, or mapping out of the basic options for what might happen next, or advice to Ministers on how the process would be managed and their involvement in it. We do not regard this as adequate for a project of this potential scale, complexity, and risk.”

8. “We have concluded that the preparation for the EOI process and the EOI document, fell short of good practice in a number of respects.”

9. “In our view, the result was that one potential submitter had a clearer understanding of the actual position on a critical issue – that the Government did not want to fund any capital costs – than any other potential submitters … We accept that it is unlikely that this flaw made a material difference to the outcome. However, we have spent some time discussing it because we regard it as symptomatic of the lack of attention to procedural risks, and therefore to the fairness and credibility of the process.”

10. “We are unable to comment on the value of any contribution the Government might make as part of any eventual agreement with SkyCity, because negotiations have not yet been concluded.”

Source: IBID

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When National’s dirty dealings; dodgy Ministers; or somesuch other scandal is about to go thermonuclear, they will automatically deflect to one of three default positions;

  1. Blame previous Labour government
  2. Release story on ‘welfare abuse’
  3. Blame Global Financial Crisis or similar overseas event

And on-cue, 24 hours later, National’s spin-doctors have spun a deflection story,

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Government cracking down on benefit fraud

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As always, predictable.

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= fs =

Investing in someone elses’ future

5 August 2012 54 comments

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Mandates

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Firstly, let’s cut to the chase and address John Key’s assumption that he has a ‘mandate’ from the country to pursue many of his Party’s unpopular policies, including state asset sales.

No, he does not.

As Bryce Edwards said on Radio NZ last year,

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Full Story

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As reported in the NZ Herald,

Moreover, only an estimated 93.2 per cent of the 3,276,000 people who were eligible to vote were enrolled, so the 2,254,581 people who did cast their votes (including special votes) leaves just over 1 million who stayed at home. “

See: 1 million didn’t bother to vote

So doing a bit of simple arithmetic,

  1. 2,254,581 people voted
  2. 1,058,636 voted National
  3. The population of New Zealand is approximated 4,430,000
  4. 1,058,636 is about 24.5% of the entire population.
  5. John Key’s “mandate” is roughly one quarter of  the country’s population.

The Nats can dress that  up any which way they like, but that’s not a mandate. That is  a minority in drag, masquerading as a “majority”.

But still a minority.

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National Conference

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Let’s cut to the next ‘chase’.

The recent National Party Conference in Skycity had nothing to do with conferencing or  the Party’s internal workings. It was purely and simply a public relations exercise  to raise “troop” morale and present National in a positive light to the public.

It was about appearing decisive and on-message. It was about strong leadership and confidence, reminiscent of Rob Muldoon, and Dear Leader played his part perfectly as he gave the rallying cry to his fellow MPs and Ministers.

Key thundered,

Our policy of partial share sales is a win-win and I stand totally behind it.”

See: Labour, Greens hit out at asset share plans

After months of various scandals, resignations, disastrous flip-flops, and gaffes, the Party pulled out it’s “ace-in-the-hole” – John Key. “The Boss” laid down the law, and as Tracey Watkins from Fairfax said,

No more tip-toeing around. That is the clear message from National’s annual conference, where the Government’s economic programme has been invested with a new sense of urgency.”

See: Damp protest shows heat gone from asset sales fire

Ms Watkins tends to present political issues  from a position favourable to National  and her piece on 23 July was no exception. But she also had a valid point – National was fighting back. They were on a counter-offensive on several fronts.

But as the dust settled, and the “whizz-bang-gosh!” factor faded, the public’s  momentary distraction returned to the issues and problems currently confronting us as a nation.

As much as Dear Leader might wish it, those issues and problems will not go away.

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State Asset Sales

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National is desperate to sell this lemon to the public as a going concern. Indeed, the issue was presented as one of several issues on a leaflet/questionnaire that the Parliamentary wing of the Party mailed out,

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The Nats are sensitive to recent public protests and an ‘insider’ advises this blogger that Ministers are tracking correspondence; internal polling; and letters-to-editors on the subject.

In an effort to “sweeten” the deal and to assuage public opposition, National is offering,

  • preference to “mum and dad” investors
  • a three year loyalty share-bonus scheme
  • a minimum of $1,000 dollar share parcels
  • a guarantee of shares to New Zealand investors wanting parcels of up to $2,000
  • Treasury setting up a retail syndicate of share brokers and banks to help first time share investors potential investors.

See: Kiwis encouraged to take up SOE shares

National’s “carrot” is matched by it’s “stick”.  As Bill English threatened in June last year,

We are saying that New Zealanders are at the front of the queue, but if not enough of them show up, it won’t be 49 per cent. I wouldn’t want to exactly guarantee every share but we have got to look at how to make that happen.”

See: ‘Buy state-asset shares or foreigners will’

So the message is crystal-clear; ‘If  we don’t buy these assets (which we already  own),  John Key and Bill English will sell our companies to overseas interests’. It’s like watching a rather bad, cheaply-made, B-grade gangster movie from the 1940s.

But the ‘rort’ doesn’t end there.  Treasury estimates that any loyalty scheme will end up costing taxpayers up to half a billion dollars. That’s because giving away free shares as a “loyalty bonus” still incurs a cost – nothing is for free,

A “loyalty” scheme to sweeten state assets sales for investors could cost the taxpayer $500 million – more than $100 for every man, woman and child in New Zealand – according to Treasury numbers.

[abridged]

In a report to the Cabinet last year, the Treasury said incentives to encourage local investors to buy shares “typically range from 5 to 10 per cent of total value ($250 million to $500 million based on a $5 billion programme)”.

The Government says it expects to raise $5 billion to $7 billion via the sales programme.

Based on the Treasury’s $500 million upper estimate of the cost of a loyalty scheme, the forgone revenue works out to just under $113 for every man, woman and child here.

See: $112 a head for asset loyalty

Labour Leader, David Shearer summed it up thusly,

Effectively, the taxpayer will be paying for a loyalty scheme that a small number of New Zealanders who can afford to buy shares will be able to enjoy. It’s clear there’s some real winners here, and the losers are most New Zealanders. “

Based on the Queensland experience where Queensland Rail was privatised in 2010;  where  a share-bonus loyalty scheme of 1:15 shares was used; the cost to Queensland taxpayers would be $360 million, according to our  Parliamentary Finance & Expenditure committee. To which Key was reported as saying, that the figure was,

“… a possible number. I haven’t seen their workings so I wouldn’t want to agree with that at this point.”

Key’s comments were reported on the NZ Herald website at 5:30am, Tuesday 24 July, 2012.

By mid-day, on the 24th, he had changed his views from ” a possible number  “, to,

These numbers that the Labour Party are coming up with and the Greens are farcical.”

See: PM: Asset loyalty won’t cost hundreds of millions

First point: that report on the Herald’s website was posted at 12:18pm on the same day;  Tuesday 24 July, 2012.  Not quite seven hours had passed before National’s spin-doctors had noticed Key’s blunder, and Dear Leader changed his stance.

Second point: the figures were not from the Labour Party, nor The Greens. They were Treasury’s figures.

Was this a deliberate attempt to undermine the credibility of those figures by shifting it’s provenance from Treasury to opposition parties?

Key then made this extraordinary comment,

If you think about the entire float that could be in the order of $5 billion to $7 billion. Let’s argue that it’s $5 billion for a moment if you then turned around and said about 20 per cent of that could be for mum and dad, it could be more it could be less – but just for the purposes of maths that’s a billion. If you apply the Australian Queensland model that’s one in fifteen shares – that’s 6 per cent. Six per cent of a billion is $60 million for the entire programme.”

20 per cent “?!?!

What happened to the 49% that Key and English have allocated to “mum and dad” investors,

Counting the Government’s controlling shareholding, we’re confident 85-90 per cent of these companies will be owned by New Zealanders, who will be at the front of the queue for shares.”

See: Running up $5-$7b more debt not the answer

Was this an unintended slip from Key that National is counting on only 20% of shares going to New Zealanders?

And did he think that no one would notice?

Acknowledgement:  Cheer up Mr Key – Fairfax still love you

This is disengenuous of Dear Leader. On the one hand, National is claiming that 49% of shares will be allocated to local “mum and dad” investors – and on the other, they are calculating a bonus-share loyalty scheme on a figure of 20%. Key is shuffling figures around and quoting them to suit daily events.

This is not the first time Key and English have done this.

In January last year, when John Key announced National’s policy to part-privatise five state assets, he stated,

If we could do that with those five entities … if we can make some savings in terms of what were looking at in the budget and maybe a little on the upside you’re talking about somewhere in the order of $7 to $10 billion less borrowing that the Government could undertake.”

See: John Key reveals plan for asset sales

The figure of $7 billion to $10 billion proceeds from a partial asset-sale then shrank,

First, the Government gets to free up $5 billion to $7 billion – less than 3 per cent of its total assets – to invest in other public assets like modern schools and hospitals, without having to borrow in volatile overseas markets.”

See: Running up $5-$7b more debt not the answer

And finally, English confessed all,

If we did get $6 billion, that would be a gain of sale [of $800 million] which is just a product of the accounting. I just want to emphasise that it is not our best guess; it’s just a guess. It’s just to put some numbers in that look like they might be roughly right for forecasting purposes...”

See: English admits his SOE figures just a guess

Key did precisely the same thing over the Skycity-convention centre-pokie machine contra-deal.

He advised the country that building a new convention centre (in return for changing the law to allow up to 500 additional pokie machines for Skycity), would result in up to 1,900 new jobs in Auckland,

It produces 1000 jobs to build a convention centre, about 900 jobs to run it, and overall the number of pokie machines will be falling although at a slightly lower rate.

See: Key defends casino pokie machine deal

Key’s figures turned out to be rubbish.  The true numbers were disclosed last month by Horwath Ltd director,  Stephen Hamilton,

Horwath director Stephen Hamilton said he was concerned over reports the convention centre would employ 800 staff – a fulltime-equivalent total of 500.

He said the feasibility study put the number of people who would be hired at between 318 and 479. “

See: Puzzle of Key’s extra casino jobs

Key  had either made them them up out of thin air, or else he has some very poor advisors.

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Frustrated – Where to from here?

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And lastly, the sheer economics of the partial asset-sales cannot be  commercially sustained, as  BERL reported in May of this year,

The interim loss of earnings resulting from reduced dividends and the period of time before the new assets reap benefits is never recouped.

”Subsequently, the option of asset sales can only significantly improve the Government’s accounts if a set of assumptions are adopted that are at the extreme ends of plausibility.”

‘While the initial offering may be directed towards domestic purchasers, future private share transactions could increase the portion of shares [and earnings] in overseas investors hands.

”Such an outcome would lead to a further deterioration in the external deficit and external debt position.”

See: Asset sales will leave Govt worse off

Unbelievable.

Unbelievable that a number of New Zealanders still believe that National is a sound manager of the economy. These muppets couldn’t run a corner Dairy – they simply wouldn’t have a clue how much to charge for a packet of chippies.

No wonder Labour Leader David Shearer expressed his frustration at Dodgy John’s slippery numbers, when he said,

We absolutely have no idea how much this loyalty scheme is going to cost New Zealanders. He was happy to go out and announce the loyalty scheme at the National Party conference but he’s not prepared to come out with the numbers now.”

See: PM: Asset loyalty won’t cost hundreds of millions

Either way, National is keeping information on asset sales secret – or they have no idea what’s going on. Conspiracy or cock-up – neither option is particularly reassuring.

The ground keeps shifting, and this blogger believes it is a deliberate ploy to deny information to sales-critics and the public. Without solid information, it becomes harder to mount a sound critique of National’s plans – though BERL has done a fairly reasonable job of it.

Accordingly,  this blogger invites “mum and dad” investors to exercise caution as shares are made available to the public,

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Full story

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A Possible Solution?

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As BERL stated in their report, selling state assets will eventually impact on the government’s balance sheet. Quite simply, any short-term gain through sales proceeds will  eventually be whittled away by reduced dividends from half of these state assets sold into private ownership,

The interim loss of earnings resulting from reduced dividends and the period of time before the new assets reap benefits is never recouped. “

Plain english: we will  lose money on the deal.

Selling any of these State assets defies understanding.

As Treasury stated last year, the revenue stream is quite significant according to their own SOE Economic Analysis  that, “…on average, the SOEs have performed favourably when compared to the averages for the quartiles computed for the benchmark companies“.

See: Treasury SOE Economic Profit Analysis 25 November 2011

On average, Treasury show a 14.5% average shareholder (Government) return. Compare that to other investments, and it’s a fairly remarkable achievement for state enterprises which – according to free marketeers – are not supposed to operate more effectively than private enterprise.

See: Assets returning record dividends – Greens

In a further,  surprising turn of events, in February 2001, Finance Minister Bill English agreed, stating,

Generally the SOE model has been quite successful in that respect.”

And even  went so far as to complain that they were making excessive profits! (There’s no satisfying the National Party!? They sell under-performing state assets, explaining that the “market will improve their performance” – and then complain when state assets are making too much money! Then the Nats will flog them off to reduce returns and make them more “competitive”.)

See: State-owned power returns excessive, says English

By contrast, Contact Energy – an electricity corporation privatised in 1999, and now mostly Australian-owned – retails it’s electricity at a higher price than it’s competing, state-owned rivals.

See: 226,000 shop for power savings

National has stated several reason for wanting to sell 49% of Meridian, Genesis, Might River Power, Solid Energy, and further down-sell Air New Zealand – but their   main, carefully-worded, rationale has been to “reduce debt/invest in new assets/infrastructure”,  according to Bill English,

We are firmly focused on keeping the Government’s overall debt as low as possible and that is the most important consideration over the next few years.”

See: Govt says asset sales will cut debt

If  National is planning on extracting $6 to $7 billion from most New Zealanders’ pockets, then they are dreaming. A small minority (the 1%, as usual) might have the resources – but even they, I suspect would have to off-load their own assets to buy into the five offered SOEs.

It is more than likely that, like Contact Energy, the majority of new shareholders will be corporate and/or offshore  investors.  New Zealanders simply don’t have the savings to buy their own energy comnpanies and airline.

If National wants to realise $6 to $7 billion  from partial-privatisation and is serious in not wanting major foreign ownership, then it has only one other option: the NZ Superannuation Fund.

Selling half of five state assets to the NZ Super Fund would achieve several desired goals,

  1. Keep state assets in New Zealand ownership
  2. Prevent an outflow of profits to offshore investors, which would worsen our current account deficit
  3. Satisfy Maori that water resources were not about to be privatised, and therefore any claims before the Waitangi Tribunal could be set aside
  4. Fulfill a government-ordered directive that the NZ Super Fund invest more heavily in New Zealand

In May 2009, Finance Minister Bill English wrote to the NZ Super Fund, instructing that,

The Government believes that is is in the national interest for the Fund to have significant interests in New Zealand. Consequently, persuant to section 64 of the New Zealand Superannuation and Retirement Income Act 2004 (the Act), I direct the Guardians to note that it is  the Government’s expectation, in relation to the Fund’s performance, that opportunities  that would enable the Guardians to increase  the allocation of New Zealand assets in the Fund should be appropriately identified and considered by the Guardians. “

See: Letter from Minister of Finance Regarding NZ Directive and Funding May 14 2009

How much does the NZ Super Fund have invested in overseas businesses?

Answer: NZ$6,459,938,145 – Nearly $6.5 billion. Possibly more  by now.

See: NZ Superannuation Fund: Full Final Equity List – 30 June 2011

How much was National expecting to gain from it’s privatisation programme? Between $6 and $7 billion dollars.

$6.5 billion happens to lie smack in-between $6 and $7 billion!

Considering that the NZ Super Fund is actually a state owned entity, selling five SOEs, whether partially or the whole damned lot, would not matter one iota. They would still be state-owned.

National has an opportunity here; they literally can have their SOE Cake, and eat it.

  • The state assets would remain state assets.
  • National would gain a guaranteed NZ$6.5 billion – no mucking around with messy share floats.
  • The revenue from the state assets would remain in New Zealand.
  • The Super Fund would have even more profitable investments in their portfolio.
  • The Super Fund will be investing in our future – not someone elses’, in another country.
  • Maori may well be satisfied that their taonga, water, was not being privatised.
  • Our current account would not be blown further into the red.
  • New Zealanders would be happy chappies, as the great majority oppose losing ownership of state assets.
  • Opposition from the Left would most likely evaporate – heck, we might even vote for you in 2014, Mr Key!!

Where is the down-side in this compromise?! Damned if I can see any.

And the strangest part in all this proposal? I may just  have saved John Key’s arse from being thrown out at the next election.

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= fs =

National – what else can possibly go wrong?!

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A contributor to The Standard blog, ‘Jenny’, made a very simple – but insightful post, detailing National’s track record in the last three and a half years,

This is a government determined to gift everything they could possibly wish to the rich and powerful, and on behalf of this greedy sector force onto the rest of New Zealanders.

More Pokies

More drilling

More fracking

More booze

More junk food

A fire sale of public assets

More pollution

More corruption

More scandal

Less sovereignity

Less civil liberty

More toadying to foreign powers

More toadying to foreign corporates

More spying snooping and videoing of New Zealand citizens

More bail-outs

More tax cuts

More job cuts

More benefit cuts

Have they actually done anything worthwhile or positive?

See:  Katherine Rich on the Health Promotion Board: The next outrageous piece of Nat cronyism

Jenny posits the question, “Have they actually done anything worthwhile or positive?

Try as one might, despite inane rhetoric and vague promises, no National Party MP, functionary, or groupie could possibly point to any success achieved by John Key and his colleagues.

Not . One.

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1.Economic Growth

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National’s “Master Plan” for economic growth and job creation seems to revolve around four events – none of which have been particularly successful,

  1. The rebuild of Christchurch. Despite being an opportunity to upskill 160,000 unemployed and a major boost to the economy – nothing much is happening. Instead, National is content to allow tradespeople from overseas to come into the country and carry out  the work. With few apprenticeships, we are woefully unprepared for the looming demand for tradespeople – a damning lack of planning by National and it’s naive reliance on the “free market” to provide skilled workers.
  2. The Rugby World Cup – far from being a major boost, seems to have contributed very little to our economy. In the last three months of 2011, GDP grew  just 0.3% – half  that  predicted by economists. It seems that Dr Sam Richardson’s prediction, that $700  million was a hopelessly unrealistic expectation proved to be unerringly correct.  Who is ultimately responsible for National throwing $200-plus million of our tax dollars at this exercise in outrageous extravagance? Murray McCully? Steven Joyce? John Key?
  3. The Sky City/Convention Centre deal. Our illustrious Dear Leader promised 1,800 jobs from this planned project, in return for re-writing gambling legislation and permitting Sky City to increase pokie machine and gaming tables by up to 500. Potential social fall-out surrounding increased problem gambling was casually dismissed by both John Key and Sky City’s CEO Nigel Morrison.    Unfortunately, as with most of John Key’s figures and promises, the expectation of 1,800 jobs was as fictitious as much of what he says.
  4. Asset sales. With weak growth; a stagnant economyhigh unemployment; and New Zealanders continuing to escape to Australia, National’s one (and only) trump card appears to be the partial-privatisation of five state owned corporations. As has been pointed out, ad infinitum, floating shares in these SOEs will not contribute to economic growth; nor create new jobs (in fact,  it is likely to result in redunancies, if past privatisations are any guide); nor create real wealth. It simply shuffles bits of paper (shares) around from investor-to-investor-to-investor. And if investors need to borrow to buy these shares, we are using overseas funds for speculative purposes. Which sounds suspiciously like our love-affair with speculative housing-“investments”.

As Business NZ has stated, our economic growth has been ‘unspectacular’. And that’s coming from one of National’s own business allies. (Just as Business NZ seemed somewhat unimpressed as National’s lack of planning and direction last year, just prior to the election.)

Otherwise, National’s Grand Plan can be summed up as a reliance on a “two pronged” approach to growing the economy; a hands-off “free market” approach, and tax cuts. Not only have neither worked terribly well, but these measures have been counter-productive.

Tax-cuts  gave massive increases in income to the richest 10% of New Zealanders – whilst the GST increase has made life harder for the poorest and lowest-paid in this country.

Right wing cheer-leaders who bleat on about their rich masters “working hard and deserving  increased wealth” may be aspirationists who one day hope to become one of the Master Class – but I hope they’re not holding their breath. That day will be a long time coming.

Tax cuts have also resulted in a government budget blow-out. Borrowing $380 million a week, whilst claiming that National is “not borrowing for tax cuts is credible only to National; their salivating sycophants; and low-information voters (for whom “The GC” is the height of documentary-making).

Tax cuts have also not delivered the promised boost to the economy by increasing spending and consumption. This is not surprising, as the tax cuts were given to the wrong sector of society.

High income, wealthy, asset-rich families tend to use their tax-cuts to reduce debt or spend on investments (shares, kiwisaver,  etc) that do not directly help small businesses.

Low income, poor, families spend everything. These are the the people who will buy more food to put on their tables; clothes; shoes; medication; and other consumables. These are the people that small businesses rely on on for their custom. And the retail supermarket sector is suffering a massive drop accordingly.

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Middle income families continue to stuggle not to fall behind. Any tax increase they may have gained has been swallowed up by increased gst, government charges, increased user-pays, etc.

I think most people have since ‘twigged’ that National has indeed borrowed for tax cuts. And we’re having to pay back those massive borrowings by  cutting services; slashing the state sector; and selling our state assets.

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2. Asset Sales

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National’s asset sales programme has been an unmitigated disaster from Day One.

Since National first announced their decision to partially privatise Meridian, Genesis, Mighty River Power, Solid Energy, and Air New Zealand, this issue has been opposed by the public.

National has used it’s so-called “mandate” from last year’s election to proceed with their policy, and passed enabling legislation only last Tuesday (26 June).

Any notion of a “mandate” is shaky and open to interpretation.

Whilst the National-ACT-Peter Dunne Coalition has 61 seats, and Labour, NZ First, Greens, Mana, and Maori Party have 60 seats – the number of Party votes cast tells a different story.

National , ACT, United Future Party Votes Labour, Greens, NZ First, Maori Party, Mana, and Conservative Party votes

National – 1,058,636

Labour – 614,937

ACT – 23,889

Greens – 247,372

United Future – 13,443

NZ First – 147,544

Maori Party – 31,982

Mana – 24,168

Conservative Party* – 59,237

TOTAL – 1,095,968

Total – 1,125,240

The irony of the Conservative Party gaining more Party Votes than ACT and United Future combined – yet winning no  seats in Parliament  – will not escape most fair-minded people. Adding the Conservative’s 59,237 party votes to the anti-asset sale bloc, yields a majority of voters opposed to National’s programme.

It is only the current rules of MMP (now under review) that allows this quirk to take place.

Add to that, opinion poll after opinion poll showing  60% to 80% of respondents  opposed to asset sales, and National’s mantra that “We have a Mandate” becomes patently untenable.

A recent  NZ Herald poll, where respondents were asked to leave a comment, as well as a “Yay” or “Nay” vote yielded results that were thoroughly predictable,

For: 151

Against: 552

The National Party understands this only too well. Hence their desperate, ad hoc  schemes to bribe the public with all manner of ‘sweeteners’,

  • giving first option to buy shares  to “mum and dad” investors
  • a bribe of “loyalty” shares
  • promise of “affordable” shares  for investors

There is a considerable degree of arrogance in National’s pursuing of their asset sales, despite considerable public anger.

On 26 October last year,  Dear Leader  said,

They don’t fully understand what we’re doing. My experience is when I take audiences through it, like I did just before, no-one actually put up their hand and asked a question. “

On 3 May, as a 5,000 person march wound it’s way through Wellington, John Key grinned to reporters and cheekily said,

How many people did they have?  Where was it? Nope wasn’t aware of it. So look, a few thousand people walking down the streets of Wellington isn’t going to change my mind. “

And on 26 June, Key tried to dismiss TV3 journalist John Campbell with this demeaning insult,

No, um, and with the greatest respect to your financial literacy, you’ve proven that you don’t actually have any. “

Key said pretty much the same about Greens co-leader, Russel Norman,

With the greatest respect to [Green Party co-leader Russel Norman], I’m sure he’s a great bloke, he doesn’t know much about economics. “

It is fairly obvious that Key has very little time for anyone who opposes his views. In fact, he gets downright belligerent and  derisive.

Who does he remind me of? Someone else who used to belittle and deride anyone who dared disagree with him – especially in economic matters. Who else was famous for his arrogance? Another Prime Minister,

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Despite public opposition and several valid commercial reasons made clear that these sales will be financially disadvantageous to our economy, National carries on, oblivious to all but it’s own ideological fanaticism.

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This is a Party totally out of touch with the rest of the country.

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3. Welfare

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In 2008, the GFC (Global Financial Crisis) hit the world with a social and economic recession not seen since the 1920s/30s. Coporations like Lehmann Bros collapsed. General Motors filed for bankruptcy protection. Others had to be bailed out with billions of taxpayers’ dollars. Millions lost their jobs and homes, and unemployment skyrocketed. Europe is tottering on the brink of a domino-like collapse of their currency.

Here in New Zealand, unemployment doubled from 3.4% by the end of 2007, to 7.3% by the end of 2009.

When criticism is levelled at National’s inability to address our stagnating economy, John Key and Bill English point to the GFC, stating it’s not their fault,

We did inherit a pretty bad situation with the global financial crisis.” – Source

This is a global debt crisis and you certainly wouldn’t want to add more debt at that time unnecessarily.” – Source

The economic downturn that may occur on a pronounced basis in Europe is factored into our books.” – Source

But when it comes to those who are the casualties of the economic downturn; the unemployed, National suddenly sings a different tune when it comes to Cause-and-Effect,

The Government is considering requiring beneficiaries to immunise their children.” – Source

Social Development Minister Paula Bennett yesterday said contraception would eventually be fully funded for female beneficiaries and their 16 to 19-year-old daughters. ” – Source

Prime Minister John Key says beneficiaries who resort to food banks do so out of their own “poor choices” rather than because they cannot afford food.” – Source

Under the Government’s new youth welfare policy, announced by Prime Minister John Key at the weekend, 16- and 17-year-old beneficiaries would receive a payment card for food and clothes from approved stores.” – Source

And perhaps – worst of all – was  this piece of vileness from Finance Minister, Bill English,

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[click on image to go to TV3 website]

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English’s smirking disdain, for all those New Zealanders who have lost their jobs due to the global financial crisis, was plain to see.  Shame on him; his revolting attitude; and shame on every person in his electorate who voted for this arrogant little man.

The National Creed

1. The  Global Financial Crisis – a handy excuse for poor economic policies and mismanagement.

2. The Unemployed – a handy scapegoat for National’s inability to grow the economy and create new jobs.

3. If in doubt, never take responsibilty; refer to #1 and #2.

Latest redundancies;

Will drug testing be used to  “sort this lot out smartly”, Mr English?

And more bizarre is Paula Bennet’s admission that National “has ruled out universal drug testing of all beneficiaries, with drug and alcohol addicts being exempted from sanctions for refusing or failing a drug test when applying for a job“.

See:  Addicts escape beneficiary drug testing

Which means that if addicts and alcoholics are not tested – that leaves only those  workers who’ve been unfortunate enough to lose their jobs through New Zealand’s ongoing stagnating economy.

Adding insult to injury doesn’t begin to cover the humiliation which National intends to thrust upon workers who’ve lost their jobs.

And all because National has no job creation policies.

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4. Sky City/Convention Centre

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This is perhaps one of John Key’s shonkiest deals. It is no wonder that the Auditor General is investigating the Sky City “arrangement” – so I have little faith that the investigation will yield much that is incriminating of Dear Leader.

As Key stated with utter confidence, on TV3’s ‘The Nation‘ on 17 June,

KEY: The involvement I had, as Minister of Tourism was to go and talk to a number of critical players, and as part of a general conversation say to them, “Hey, look, New Zealand’s interested in building a convention centre. Did that with Sky City. I did that with people out at ASB Centre The Edge. I did that with Ngati Whatua. That’s not unusual.  I mean, and to argue that that would be unusual would be to say, well, look I have discussions with people in Whangarei about building a museum there. And I have discussions  with people in Auckland about building  a cycleway.

So now what we’re  talking about about is, ok, was there undue influence or was the process correctly handled, that’s what the auditor general  will say.

So let me tell you this, for a start off, ok, in terms of the expression of interest process, my office had absolutely no involvement, no correspondence, [ interuption by Rachel Smalley] no phone calls, absolutely nothing. So when the auditor general  comes in there will be no correspondence, no phone calls, no discussions, zero. “ – Source (@ 6.37)

That statement does not instill confidence in me. Dear Leader has just stated, on record, that no evidence exists of his meeting(s) with Sky City management. Key admitted meeting with Sky City’s Board in late 2009,

I attended a dinner with the Sky City board 4 November 2009 where we discussed a possible national convention centre and they raised issues relating to the Gambling Act 2003“. – Source

But what was said or agreed on, we don’t know. As Key has stated, “when the auditor general  comes in there will be no correspondence, no phone calls, no discussions, zero”.

This is not a very good  example of transparency. It is certainly not the “transparency in government”  that Key has promised this country on several occassions.

In fact, it’s dodgy as hell.

See:  Doing ‘the business’ with John Key – Here’s How

In the same  blogpost ( Doing ‘the business’ with John Key – Here’s How )  dated 23 April, this blogger outlined John Key’s somewhat dubious tactics for pushing through dubious policies,

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Promise Big Numbers.  It doesn’t matter if the numbers never eventuate because they were fictitious to start with. By the time the media and public realise the true facts, the issue will be all but forgotten. A week may be a long time in politics – but a year positively guarantees  collective amnesia for 99% of the public.

From December, 2010,

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Cycleway jobs fall short

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6:00 AM Wednesday Dec 8, 2010

The national cycleway has so far generated just 215 jobs – well short of Prime Minister John Key’s expectation of 4000.

In May, Mr Key said he expected the $50 million project, which involves building 18 cycleways throughout the country, to generate 4000 jobs.”Source

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Who can remember the initial cycleway project and the promise of 4,000 new jobs?

Precisely.

From March, this year,

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Key defends casino pokie machine deal

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08:23 Mon Mar 5 2012 – AAP

Opposition parties are accusing the government of selling legislation through an agreement that will see Auckland’s Sky City build a $350 million convention centre in return for more pokie machines…

…  But Mr Key says it’s a good deal for New Zealand.

“It produces 1000 jobs to build a convention centre, about 900 jobs to run it… ” Source

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In a year’s time, who will recall the promise of 900 new Convention centre jobs?

Who will care that only a hundred-plus eventuate?

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Well, it didn’t take one year. It took only a matter of  months. On 5 March, John Key asserted,

 “It produces 1000 jobs to build a convention centre, about 900 jobs to run it, and overall the number of pokie machines will be falling although at a slightly lower rate.”

See:  Key defends casino pokie machine deal

But then, on 5 June,  the NZ Herald reported,

Job numbers touted by Prime Minister John Key for a proposed international convention centre at SkyCity are much higher than official estimates.

Mr Key has said a deal allowing SkyCity more gambling facilities in exchange for funding the convention centre would provide 900 construction jobs and work for 800 people at the centre.

But the figures are much higher than those in a feasibility study done for the Government by hospitality and travel specialist analyst Horwath Ltd.

Horwath director Stephen Hamilton said he was concerned over reports the convention centre would employ 800 staff – a fulltime-equivalent total of 500.

He said the feasibility study put the number of people who would be hired at between 318 and 479. “

See:  Puzzle of Key’s extra casino jobs

Sprung! Another of Dear Leader’s “little white lies” uncovered.

Next ‘cast iron guarantee’ from Dear Leader, who said on his website,

SkyCity has agreed to pay the full construction costs of the centre – estimated at $350 million. The company has asked the Government to consider some alterations to gambling regulations and legislation.”

See:  John Key -Convention centre development moves ahead

Yeah, I’ll bet that Sky City has “asked the Government to consider some alterations to gambling regulations and legislation“…

In business, it’s called a ‘contra-deal‘.

But it’s seems that even this deal is not as “free” for tax-payers as Key has made out. In fact, it has been uncovered that  taxpayers are definitely ‘stumping up’ some of their hard-earned cash,

Budget documents reveal that if the plan goes ahead, taxpayers will contribute up to $2.1 million to ensure its design and facilities meet Government expectations...  The Prime Minister, however, is defending the budget allocation of millions of dollars towards a potential Sky City convention centre.

John Key says he has always said his preferred position is that no taxpayer money would be spent – and that if it does go ahead, it will have economic spinoffs. “

See:  Govt misleading public over Sky City: Labour

So… Key has (once again) mis-led the public, and his stock-standard explanation is that “if it does go ahead, it will have economic spinoffs .”

John Key  claims that “a new convention centre would bring 144,000 additional nights of Auckland stays for business tourists, who generally spent twice as much as other tourists“.

See:  Casinos safer than pubs, Key says

But as Bob McCoskrie, National Director of Family First NZ, said somewhat more convincingly,

Tourists come to see the country and the culture – not the casinos. If tourists were really focused on gambling, they would be going to Las Vegas – not the Sky City casino venue in Auckland.

See:  Tourists Come to See Country & Culture – Not Casinos

What’s the bet that the forecast for “economic spinoffs” will be as accurate as National’s predictions for spin-offs from the Rugby World Cup or national cycleway?!

See:  Weather and World Cup fail to lift GDP

See:  Current account deficit widens to $2.7 billion

See:  Growth slows – GDP up just 0.3pc

How many times have we heard Prime Minister John Key make all sorts of promises that this or that will deliver jobs and economic growth – only to see the promise fail. Which is then  usually followed by an excuse relating to the global economic slowdown?

It’s getting rather predictable and tedious.

What Dear Leader has tried to gloss over and  dismiss is the inevitable consequence of increasing pokie machines: more problem gambling. Both John Key and Sky City CEO, Nigel Morrison,  have tried to trivialise this growing social problem,

The incidence of harm cited from Lotto is greater than that from pokie machines in casinos. Getting those facts across is difficult.  We’re not just on about growing our gaming machines.  We would like to grow our table games product and expand our operations to meet the growth of Auckland. “

See:  Casino boss: Lotto does more harm

Gambling addiction in many way is as pernicious – if not worse – than alcohol and drug additions. A compulsive gambler can damage not only his/her own life – but those around them. Houses have been lost; businesses crippled or closed down; families torn apart,  as problem gamblers suck others down into a whirlpool of uncontrollable gambling.

See:  Barred gambler coaxed back to casino

See:  Mum steals $330k from marae to feed pokies

From a Ministry of Health  report,

Overall, the prevalence of problem gambling in New Zealand adults was 0.4% (about 13,100 adults). Additionally, the prevalence of moderate-risk gambling was 1.3% (representing a further 40,900 people). In total, 1 in 58 adults (1.7%, or 54,000 adults) were experiencing either problem or moderate-risk gambling.

Other key findings of this study include:

  1. Maori and Pacific people experience more gambling-related harm than other people
  2. people living in more socioeconomically deprived areas are more affected by gambling-related harm.
  3. this study may help to inform the provision of problem gambling intervention services and public health activity, as the study showed that:
    • problem gamblers can be found in both urban and rural areas
    • Maori and Pacific people appear to be under-represented in intervention services
    • people experiencing gambling problems are more likely than other people to be current smokers, have hazardous drinking patterns, have worse self-rated health, and have a high or very high probability of a mood or anxiety disorder. “

See:  A Focus on Problem Gambling: Results of the 2006/07 New Zealand Health Survey

Interestingly, the above report, using 2006/07 data, and posted online in 2009, is the most recent Ministry of Health report available. Nothing more recent – and perhaps more damning of current gambling policies – is apparent on the Ministry of Health website.

Why is that?

On a more personal level, this blogger is aware of an elderly couple who were both addicted to pokie machines. Badly in debt, they were forced to down-size their family home and buy a smaller, more modest,  property. One of the couple died soon after, leaving the other who continued her gambling habit.

Not only has this elderly woman lost her surplus cash from the house-sale, but has gambled using equity in her current home.  She often ‘borrows’ money from her grown up children.

Her  modest house is deteriorating through lack of maintenance.

Not only has this woman lost all equity in her home, she is now more reliant on  both the State and her family.

Meanwhile, this article on Sky City’s most recent posted profits should be cause for concern,

”  Sky City Entertainment, one of the biggest gambling operators in the country, has seen a significant rise in profits over the course of the last year. The company attributes this growth to the earnings generated by the Sky City Casino in Auckland.

Over the course of 2011, profits for Sky City rose by over $10 million to $78 for the year. The company believes that the changes made to Sky City Auckland are to thank for this impressive profit increase over the course of the past year.

$50 million was spent on renovating the gambling facilities available the casino, but the company still managed to offset the costs with improved profits. In addition to building a new VIP lounge, Sky City also renovated other areas of the casino to make them more attractive to players.

Slots [pokies]  brought in the amount of increased revenue, seeing a rise by 17%. Non-gaming elements also helped to boost profits. Auckland’s recently-revamped hotels and restaurants garnered a great deal of attention from patrons.

It seems that the adage “you have to spend money to make money” is true for Sky City.  “

See:  Sky City Sees Huge Revenue Jump

If the convention centre is National’s only scheme to grow the economy and to create 170,000 new jobs – we are in deep trouble.

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5. TVNZ7

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Nothing best illustrates  National’s narrow vision of the role of government than the demise of TVNZ7. Nothing.

Whether the previous Broadcasting Minister, Jonathan Coleman, or the current Minister, Craig Foss – their attitude has been the same; market forces shall prevail – and public-interest programming shall be the responsibity of NZ On Air, who shall contract such programmes to current commercial broadcasters.

Except that this is a cop-out.

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The beauty of TVNZ7 is that public broadcasting was, in the main, focused on a single broadcasting platform. The public knew where to go to watch certain types of programming.

Just as the public now go to supermarkets to buy their meat, fish, veg & fruit, and bread – instead of going to a butchers; a fish shop; a  fruit & veg produce store; and a bakery. Imagine the uproar if John Key told us we must go to five different food retailers to buy five different sorts of foodstuffs?! Dear Leader would have a size 9 boot imprinted on his backside.

TVNZ7 fulfilled the same public demand; niche programming on a niche broadcaster.

Just as, currently we have racing on the TAB channel; Chinese programming on CTV; parliament on Parliament TV, etc.

Ironic that politicians have no problem broadcasting their “debates” (inverted commas used deliberately), deeming their squabbles and shrill screams a must have – but not public, non-commercial TV.

Or, that we can have non-stop horse racing on a free-to-air TV channel.

But we are not entitled to have access to non-commercial public TV.

Whatever concept National has of public television, it is clear that Broadcasting Minister, Craig Foss’s vision is different to the rest of New Zealand,

“…  the government was ‘committed’ to supporting local content through NZ on Air, instead of directly funding single broadcasters. “

See:  No help for titanically pointless bill

Having public TV through NZ On Air is akin to selling vegetarian/vegan food products in butcher shops. You have to go looking for it. It’s not easy to find. And it’s buried amongst ‘crap’ you’d rather not have to put up with.

And what makes NZ On Air funding of  ‘Media7/Media3‘  “public television” – when it will have advertisements peppered throughout?

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Take out the advertising of underarm deodorants; cat/dog food; toilet ducks; panty shields;  the latest 4WD monstrosity from Korea; promos for the latest US crime/cop shows; reality TV shows; home improvement shows; US sitcoms; and voyeuristic, soft-core porn like “The GC”,  and a 30 minute current affairs programme from TVNZ7 becomes a 20 minute show on TV3.

There goes our chance to focus on critical social issues, as commercial advertisers compete for our attention.

What next? Advertising in Tolstoy’s  “War and Peace”? Shakepeare’s “Macbeth”? Anne Frank’s Diary?

We are being ripped off in more ways than one. We deserve better than this.

But not, it seems, according to National; there is more than an element of vindictiveness in their decision to can TVNZ7. As if it was their opportunity to “stick it to us” after their embarrassing backdowns on mining in conservation schedule four estates; their attempt to cut teacher numbers and increase classroom sizes; and ongoing resistance to state asset sales.

The closure of TVNZ7 is a clue what National thinks of us. And it ain’t very pleasant.

See: Pundit – TVNZ kills ad-free channels to grow profits

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6. Education

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Current cutbacks to state and social services is a re-run of the 1990s. National’s cuts now, mirror those of last century.

Bolger, Richardson, Shipley, and Bill English  ran amok – slashing health, education, police, military, and anything else they could lay their cold, clammy, neo-liberal hands on.

At one stage, in the late 1990s, the health system was so badly run down that   patients requiring critical surgery were not receiving it – and were dying on waiting lists.

See: Died waiting for by pass

See:  Funding cut puts centre in jeopardy

See:  Myers warns few jobs, more poor, ahead for NZ

This year, as part of National’s on-going agenda to cut government services; reduce the size of the State; and to pass on savings  as tax cuts to the rich, National has cut staffing levels; departmental budgets; and services.

The New Zealand middle class tolerates this – until it affects them, personally.

Enter: 24 June – Minister Parata and her plans to slash teacher numbers and increase class sizes.  That was a step too far, and a teacher-parent-principal-Boards alliance fought back. Hard.

Bill English – a bloodied veteran of the Bolger-cum-Shipley administration of the late 1990s –  recognised the signs that a revolt of the middle classes was in the offing.   National’s merciless cuts to social and government services in the ’90s had resulted in an electoral thrashing in the November 1999 elections.

Upshot: 7 July – Government u-turn on cost-cutting policy.

This is now the second major policy u-turn by National. Their previous bloodied-nose, in July 2010, when Gerry Brownlee was forced to announce a back-down on National’s proposals to mine schedule 4 conservation land, was a stunning exercise in people-power.

In my previous blogpost (Why Hekia Parata should not be sacked), I argued that Educational Minister, Hekia Parata should not be forced to step down from her ministerial role. As I pointed out, “sacking Parata for policies that every other Minister has been implementing seems pointless. Especially when National’s essential policy of cutting expenditure and services would remain unchanged”.

However, recent revelations from OIA-released  document have revealed,

The papers for the education budget reveal class size funding ratio changes went even further than what was announced.

Education Minister Hekia Parata originally urged changes that would seen 1300 fewer teachers hired over the next four years than would have happened under the existing funding formula.

That plan to curb growth in teacher numbers would have seen a “a minimal net reduction” in staffing of about 260 after four years.

The Government eventually decided on a less aggressive plan to cap teacher numbers, with almost the same number proposed to be employed in 2016 as now.

That plan to save $174m over four years was agreed and written in to the Budget but Parata was forced in to an embarrassing backdown earlier this month, which cancelled the plan and returned to the status quo.

However Parata’s original plan was to cut $217m. “

See:  Deeper teacher funding cuts ditched

It appears that Ms Parata’s inclination was for even deeper cuts to Education services  than, (a) the public was initially aware of and (b) that her National ministerial colleagues could stomach.

This explains, in part, why Key torpedoed  Parata’s plans to cut education services; he was thoroughly exasperated with an an incompetant  Minister who badly overestimated her abilities and could not “sell” even a watered down version of her plans. He must have been spitting tacks that, had Parata’s initial plans to cut $217 million (instead of $174 million) gone ahead,  she would have found herself in a much deeper hole, and the fallout to National would have been much worse.

This blogger has come to the conclusion that Hekia Parata is way over her head, and should step down as Education Minister forthwith.

At any rate, she will be gone at the next cabinet re-shuffle.

Tea-lady might be a good, safe role for her?

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7. ETS – Another of Key’s broken promises

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John Key is adamant that National will not consider slowly raising the retirement age from 65 to 67, because it is a committment he has promised to keep,

I’ve made it quite clear it would be my intention to resign from parliament if I broke that promise to New Zealanders.”

See:  Govt against raising retirement age

This blogger finds it hard to understand Key’s reticence to “breaking” an election promise. After all, he’s broken promises not to raise GST; to retrieve the bodies of the Pike River miners;  to address growing youth unemployment; stem the flow of migration to Australia; grow the economy; and now, to implement an ETS.

In May 2008, Key stated,

Key outlined a series of principles an ETS should have, including…

… It should be closely aligned with Australia’s ETS.

It should not discriminate against small and medium businesses in allocating emissions credits and purposes. “

See: Nats call for a delay to emission trading scheme law

At the time, Key also stated,

This not about National walking away from an ETS, we support that. . . we just simply want to get it right and we now have the time to get it right.  “

That was four years ago.

Since then Australia has implemented it’s own carbon tax that will lead in to a full ETS by 2015,

The A$23-a-tonne price on carbon emissions started yesterday [1 July 2012] , directly affecting 294 electricity generators and other companies.

The federal Government is aiming to cut carbon emissions by 5 per cent by 2020, with the carbon tax shifting to an emissions trading scheme in 2015. “

See: Protests greet day one of Aussie carbon tax

By contrast, National has been delaying implementing New Zealand’s own version of an ETS, and has now “postponed” it until 2015.

And yet, four years ago, Key stated that New Zealand’s emissions trading scheme should ” be closely aligned with Australia’s ETS  “.

Our Aussie cuzzies have already started their carbon tax/ETS.

With National postponing the ETS for farmers, industrial and commercial polluters, until 2015 – that means that Dear Leader’s “postponement” will have lasted seven years – over two Parliamentary terms.  How long does Key need to ‘get it right’ ?

Ten years?

Two decades?

Perhaps the turn of the 22nd century?

Let’s cut through the BS here. John Key is not “postponing” the ETS – he is postponing it indefinitely. National has no intention of ever implementing it. So much for Key’s statement,

Ours is not a political agenda here, we want a good ETS that works.”

That deserves to be immortalised,

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See also: Tumeke – Blue ignores Red to pretend to be Green while turning to Brown to subsidize big polluters

See also: Tumeke – The Emissions Trading Scam and the audacity of Farmers

The sooner the Nats admit this deception, the better for the entire country. Until then, the only sector paying the ETS is… us, the public.

Which leads on to…

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8. Tax Cuts & Government charges

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In 2009 and 2010, National cut taxes.  The rationale, as National explained in their 2008 document,

In the short term, National’s tax package will give households confidence and some cash in their back pockets to keep the economy going and to pay down debt.

In the longer term, our tax package encourages people to invest in their own skills and make best use of their abilities, because they get to keep more of any higher wages they earn. It encourages them to look for and to take up better and higher-paying jobs that make more use of their skills.

See: National Party  Tax policy

However, what National giveth with one hand; National taketh with the other.

Any benefits from the ’09 and ’10 taxcuts have been more than swallowed up (for low and middle income earners) by increases in a myriad of government and SOE charges.

The most recent have been Family Courts fees, which have risen astronomically.

From July 1 2012, services which used to be free to couples in dispute, now incur considerable court fees,

  • Child custody disputes: $220
  • Property disputes: $700
  • Hearing of any application for each half-day, or part half-day: $906

Of all National’s user-pays regimes, charging couples who are separating; highly stressed; and where violence may be involved, is mind-boggling. We thought it was miserly when National decided to tax children in the last budget – but these user-pays Family Court fees hit people who are vulnerable in the extreme,

But Family Law Specialists director Catriona Doyle says most families try to avoid handing custody and property decisions to a judge and only use the Family Court as a last resort in irresolvable conflicts.

The few people who waste the court’s time by filing repeatedly or unnecessarily won’t be put off by the fees because they’ll either be wealthy enough to afford it or earning little enough to have the fees waived, she says.

“It’s going to hit the middle class and lower income families where $220 is a lot of money.”

Women especially will be hit hard, as they are often financially disadvantaged when a relationship breaks up, Ms Doyle says.

Rather than trying to keep children out of court, the ministry should be aiming to resolve conflicts before children are affected by them, she says.

“Leaving children in a conflict situation where the parents are at war is neglect and abuse. The kids who live in that situation are damaged.”

A judge should be the person to decide if a case is genuine or flippant, especially when children are involved, she says.

“It’s not something that should be addressed by Parliament or a court registrar”.

See:  Family court fees will hurt women – lawyer

Minister of Courts, Chester Borrows, stated plainly,

What we are trying to do here is have a disincentive for people to be able to bring these matters before the court. “

See:   Family Court fees tipped to hit low earners, children

(Note: As a matter of interest, Chester Borrows is the very same Minister who stated he would be buying shares in SOEs, when they were partially-privatised. See:  Conflicts of Interest? )

National complains that  court costs have risen  from $84 million in 2004/2005 to $142m in 2010/2011 – hence Family Court fees must be imposed.

This is faulty logic, and is penalising people who are attempting to sort out damaging relationship breakdowns.  Using Family Courts is preferable to taking the law into one’s own hands. Disincentiving people from using the law – which Parliament put in place to protect us all – is like disincentivising people from calling the Police if you’ve been burgled.

Instead, if we are being “encouraged to resolve issues ourselves”, find the burglar; beat the crap out of him; and retrieve our stolen property ourselves.  That is what Borrows is advocating.

Further using Borrows’ “logic”, National should implement high user-pays charges in public hospitals, as  ” a disincentive for people ” to use hospitals.

It sounds ridiculous? It is ridiculous.

It is also dangerous. Borrows and his idiotic fellow ministers are playing with peoples’ lives. Putting expensive, punitive barriers up at a time when families most need society’s help defies logic, common sense, and most of all, compassion.

But then – when did anyone ever accuse the National Party of being compassionate?

And will the Dear Leader, John Key,  take responsibility if something goes horribly wrong, and an emotionally-stressed family explodes into violence because they had no way out through the Family Court? Like hell he will.

This is a death waiting to happen.

On your miserable head be it, Mr Borrows.

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9. More on those tax cuts

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As an aside, National’s 2008 Tax document makes this derisable claim,

” This makes it absolutely clear that to fund National’s tax package there is no requirement for additional borrowing and there is no requirement to cut public services.

Jeez. No wonder people don’t trust politicians.

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10. Alcohol law reforms

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The latest offerings of irrationality from John Key’s Universe; evidently Dear Leader does not believe that minimum pricing for alcohol would work. He suggests (with a straight face, no doubt) that minimum pricing for booze would not work because it could drive people to drink lower quality liquor instead of reducing consumption,

What typically happens is people move down the quality curve and still get access to alcohol.”

See:   PM sceptical dearer booze will cut consumption

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Mr Key, how do I mock thee? Let me count the ways… (with apologies to Elizabeth Browning)

 How do I mock thee? Let me count the ways.
I ridicule thee to the depth and breadth and height
My soul can reach, when laughing at you hard
For the ends of Banality and Idiotic Government.
I mock thee to the level of every day’s
Most quiet need, by sun and ecobulb-light.
I deride thee freely, as men strive for human rights.
I caricature thee purely, as they turn from praise.
I jeer at thee with the passion put to use
In my old griefs, and with my voter’s faith.
I scorn thee with a scorn I seemed to lose
With my lost saints. I sneer at thee with the breath,
Smiles, tears, of all my life; and, if  The People choose,
I shall but take the piss better after you are voted out.

Why so contemptuous, you ask?

Because raising the price of  tobacco has been the number one tool of both Labour and National governments.

As recently as 12 June, John Key stated on a Fairfax online interview,

The Government is unashamedly trying to deter people from smoking through price, particularly young people who are very sensitive to rising tobacco prices. I know this is difficult for those that have smoked for quite some time, but for your long term health I can only encourage you to try and give up. “

See: Blogpost –  Fairfax; An hour with Dear Leader (@ 12.57)

So high-pricing for tobacco is useful for ” the Government is unashamedly trying to deter people from smoking ” – but not for alcohol?

Raising prices to deter smoking works. But raising prices to deter binge-drinking doesn’t?

It boggles the mind how Dear Leader can hold two conflicting viewpoints, simultaneously, without suffering a brain explosion.

Or is it simply that the liquor industry is a generous donor of funds for National’s election campaigns?

In the meantime, life goes on,

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See:   Ambulance base for Wellington party central

See:   ‘Pressure valve’ medics patch up night’s drunks

See:   BERL Report – Costs of harmful alcohol and other drug use

See:   Drunk kids flooding our hospitals

See previous blogpost: A kronically inept government

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11. Government Cost cutting = Economic suicide

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On 12 May, this blogger posted a piece on National’s slashing of our MAF biosecurity.

In part, I posted this dire warning,

Now, we have the prospect of  having entire suburbs in Auckland being contained in some kind of loose “quarantine”, after a Queensland fruit fly was caught in a pest surveillance trap,

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Considering that the Queensland fruit fly costs the Australian economy approximately  $160 million a year, this is a very real threat  to New Zealand’s own $5 billion annual horticultural industry.

Five billion dollars, per year, every year. All under threat because this government wanted to save a few million bucks by employing fewer biosecurity staff.

As if the discovery of a  painted apple moth in 1999; the varroa mite infestation of our honey hives in 2000; and other isolated instances of pests found in this country did not serve as a warning to us – National  proceeded to cut back on biosecurity staffing.

This blogger wonders sometimes (actually, all the time) what goes through the minds of our esteemed Honourable Ministers of Her Majesty’s Government. These are supposedly well-educated men and women, with support from thousands of University-educated advisors – and yet they still manage to accomplish the most incredibly moronic decisions conceivable.

National has put at risk this country’s  $5 billion industry – simply to save a few million dollars.

They have risked horticulturalist’s businesses; workers their jobs; and all the down-stream economic activity – to save a small percentage of billions.

This blogger has three pieces of advice for all concerned,

  1. John Key must  accept the resignation of  David Carter, Minister for Bio-security immediatly.
  2. National must reinstate biosecurity services to pre-2009 levels.
  3. Horticulturalists (and others who own farms and other agricultural businesses) should carefully consider whether National is working on their behalf – or for the sake of implementing false economies. What is the point of an orchardist voting for National – if National is going to screw his/her business by cutting back on essential government services such as biosecurity?!?!

Hopefully, this  fruit fly is a lone bug; perhaps a stowaway in someone’s bag or in a container offloaded at Ports of Auckland.

If so, once again we’ve been lucky.

But how long will our  luck hold out?

See previous blogpost: Bugs and balls-ups!

It seems our luck ran out some years ago,

The kiwifruit growers’ association is considering legal action over the outbreak of the vine disease PSA and says it can’t rule out seeking compensation.

An independent review released on Wednesday into how the bacterium came into New Zealand has found there were shortcomings with biosecurity systems, but it does not say that caused the entry.

The disease was first confirmed near Te Puke in 2010 and has infected 40% of the country’s kiwifruit orchards. It is expected to cost the industry $410 million dollars in the next five years.

Ministry for Primary Industries director general Wayne McNee asid the review did not determine how PSA came into the country but does show where improvements can be made.

NZ Kiwifruit Growers president Neil Trebilco says he can’t rule out that compensation will be sought by growers.

See:   Kiwifruit growers take legal advice over PSA

A damning report into the outbreak of kiwifruit virus PSA is another in a series of warnings over the biosecurity system that the Government has failed to act on, Labour’s biosecurity spokesman Damien O’Connor says.

The independent report was commissioned by the Ministry for Primary Industries (MPI) following the devastation caused by the virus in the Bay of Plenty orchards with an estimated cost of $400 million.

The report, released yesterday, found “shortcomings” in New Zealand’s biosecurity system although it could not say how the incursion had occurred.

It said MPI could improve protections and must work more closely with industry groups.

The report also suggested resources be moved from low-risk industries to high-risk ones such as the kiwifruit sector.

O’Connor said there needed to be a complete overhaul of the biosecurity system.

The National Government cut biosecurity funding in 2009 and had accepted the growing risk caused by faults in the system, he said.   “

See:  Labour: Govt ignored biosecurity warning

Anyone with two inter-connecting neurons would’ve figured out very quickly that if a government cuts biosecurity then we put ourselves at dire risk of pests entering our country. Like the varroa mite. Or PSA bacterium.

With approximately  550,000 shipping containers and 4.5 million people entering New Zealand each year, it stands to reason that we are at extreme risk of unwanted organisms being brought into the country.

National was warned as far back as 2009, when 60 Biosecurity jobs were “dis-established”.  It therefore defies understanding as to why National believed that cuts could be made to frontline MAF Biosecurity without serious consequences.

Spelling out those consequences,

  1. Millions – even hundreds of millions of dollars of valuable export dollars lost,
  2. Jobs lost,
  3. Businesses ruined,
  4. And not one single government minister taking responsibility.

The only question now remaining to be asked: how many farmers and horticulturalists will vote for National at the next election?

Remember:  you get the government you deserve.

This time, it is farmers and horticulturalists who have been warned.

See:   Risks involved in cutting MAF Biosecurity jobs

See:   Farming at risk if biosecurity jobs cut, PSA warns

See:  Minister warned about biosecurity concerns

See:  Fruit restrictions in place

See:  Biosecurity savings ‘false economy’

See:  Biosecurity NZ webpage

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12. The Terminally Ill

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During the 2008 general election, Prime Minister  John Key adopted the Herceptin campaign.

Pharmac was funding herceptin treatment for women suffering from breast cancer only up to a nine week period.  Breast cancer patients wanted treatment extended to twelve months. Pharmac refused, stating there was no evidence that an extended treatment period would prove beneficial,

Pharmac CEO,  Matthew Brougham, said,

A fresh review of the science and other information has failed to convince us that 12-month treatments offer any additional benefits over the concurrent nine week treatment.”

See:  Nats pledge funding for 12-month Herceptin course

Enter,  John Key. As the 2008 election campaign swung into full force, Key leapt upon the issue,

National recognises that many Kiwis have limited access to modern medicines. We will improve that access.

“We will boost overall funding for medicines and speed up the registration of new medicines, with final approval remaining in New Zealand.

“These initiatives will be funded within the indicative health spending allocations in the Prefu [Pre-election Fiscal and economic Update].

“They are also further examples of our determination to shift spending into frontline services for patients, rather than backroom costs.”

See:  Key says Nats would fund 12-month Herceptin treatment

The election promise was one of many that Key made (along with tax cuts and the perennial “getting tough on crime), and on 10 December 2008, the Prime Minister-elect announced,

I am proud to lead a government that has honoured such a commitment to the women of New Zealand.

“The commitment was part of National’s first 100-days action plan.  I am pleased that the Herceptin funding policy effectively applies from the swearing in of the Government on 19 November.”

See:  Government honours Herceptin promise

Unfortunately, John Key’s belief that ” National recognises that many Kiwis have limited access to modern medicines. We will improve that access. We will boost overall funding for medicines and speed up the registration of new medicines, with final approval remaining in New Zealand   seems only to apply during election campaigns.

At other times, Key  does not seem to want to know.

Allyson Lock is one of five New Zealanders who suffers from Pompe Disease. It is a terminal condition.

There is medication available (called Myozyme ), but it currently receives no funding from Pharmac agency Pharmac.  It is an expensive drug, but without that medication, Allyson and her fellow sufferers will not survive.

See: Mum not prepared to wait and die

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Frank Macskasy Frankly Speaking Blog Pompe

IN SEARCH OF CURE: Allyson Lock will travel to Brisbane every fortnight for five years to receive treatment for the rare incurable disease Pompe.

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Allyson and her group have appealed to John Key for funding for their medication – without success. In fact, Key wants nothing to do with Allyson and other Pompe sufferers.

At a recent “on-line  chat” with John Key, hosted by Fairfax Media, several people including this blogger attempted to put a question to the Prime Minister; why was National not prepared to fund medicine for Pompe as they had for breast cancer sufferers?

See previous blogpost:   Fairfax; An hour with Dear Leader

After all, Pharmac had expressed the same reservations regarding the efficacy of  Myozyme as they did with long-term  herceptin treatment. Yet, that did not stop Key from ensuring breast cancer sufferers had full access to a year-long course of herceptin.

John Key and Health Minister Tony Ryall have wiped their hands of Allyson.

It is not election year.

So there are no political points to be scored in saving the lives of five fellow New Zealanders.

I look forward to John Key proving me wrong; a link to this blogpost will be sent to media as will as the Prime Minister’s office. The rest is in his hands.

To Prime Minister, John Key;

Fund treatment for Allyson and others, Mr Key. They deserve no less than breast cancer sufferers. You can either oversee funding for their treatment – or attend their funerals.

Your call, Mr Prime Minister.

See previous blogpost:   Priorities?

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Related blogpost

The wheels are coming off, and there’s a funny ‘plink-plink’ sound

A John, a Tony, and a Winston

Additional

David Cunliffe:  Speech – The Dolphin and the Dole Queue

Gordon Campbell:  Efficiency Is Not Your Friend

Acknowledgement

Thanks to ‘S’  for proof-reading.

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John Key has another un-named source???

3 April 2012 8 comments

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John Key continues to bury his head in the sand regarding Skycity’s demand for 500 extra pokie-machines, in return for a $350 million convention centre.

Considerable community concern has been expressed that National’s close connections with Skycity may result in more pokie machines, with the inevitable consequence of increased problem gambling.  Even the neo-conservative organisation, “Family First” has condemned National and Skycity’s plans to expand it’s operations.

National Director of Family First, Bob McCoskrie, said,

Tourists come to see the country and the culture – not the casinos. If tourists were really focused on gambling, they would be going to Las Vegas – not the Sky City casino venue in Auckland.”

“Casinos thrive on the false promise of getting rich quickly, but the reality is that those who can least afford to gamble are gambling themselves deeper into debt. The government should be protecting families – not fleecing them. It is ironic that the government is targeting loan sharks at the same time as increasing the number of pokie machines.” – Source

McCoskrie said that “there are far too many pokie machines in our communities. Recent figures show one  machine for every 180 kiwis, yet one for every 4000 in US“.

Indeed. Here in New Zealand, we do ‘Dumb‘ exceedingly well.

The Green Party has been particularly scathing of National’s intention to amend legislation, to facilitate Skycity’s expansion plans.

Green Party spokesperson, Kevin Hague, condemned National’s irresponsibility in no uncertain terms,

The profits that Sky City believes it can extract from vulnerable gamblers are obviously immense to make it worthwhile for them to build the centre.

This ‘public policy for sale’ approach by the Government is strongly reminiscent of its rush to change industrial relations law to suit another multinational corporate, Warner Brothers.

I predict that the ‘behind closed doors’ negotiations between the Government and Sky City will find ways of allowing Sky City to extract more profit from the New Zealand public without needing to change the law, thereby entirely shutting the public out from having a say.

The extraordinary hardship and suffering caused by the gambling industry in New Zealand should see the Government trying to find ways of reducing the size and reach of the industry, not cosying up to it and making the regulatory framework looser.” – Source

Why is it that everything has a fair degree of common sense on this issue – except National?!

The Prime Minister, John “Dear Leader” Key, has been in utter denial about the destructive effects of gambling addiction.  It’s not just his head that is buried in the sand – he’s climbed in, and buried himself.

Amongst other statements of unbelievable naivety, Dear Leader has stated,

In a casino they are in a better environment say than attached to a pub deliberating targeting low income people in South Auckland.” – Source

Yeah, right.

Because low income people don’t go to casinos!?

Actually, they do. This blogger has visited Skycity Casino on a couple of occassions. (No, I didn’t place a bet. If I wanted to waste money, it’s easier to throw it out the window.) On both occassions, judging by dress style; worn clothing and shoes; and other tell-tale signs, many of those who seemed cybernetically linked to rows of pokie machines – were from low-income households.

I could not recall a single person in a suit, or upmarket dress, on the pokies.

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But perhaps the most eye-opening aspect of  Keys comments was when he  referred to  a “professor” from  University of Adelaide – whom he did not namewho had told of  a gambling studies conference in 2008, where it was claimed that Sky City’s host responsibility programme was “probably the most advanced in the world“.

An un-named source?

Another one?

Is this Un-named Source related to the other Un-named Source, who had supposedly emailed John Key about a supposed meeting – where Standard & Poors had supposedly claimed that New Zealand would have had a credit down-grade had there been a Labour Government in office??

(Which, later, Standard & Poors  rejected as being untrue.)

The same Un-named Source who supposedly sent Key this unsigned email,

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Cobblers!

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But it strikes me as symptomatic of the bizarre “JohnKey  In Wonderland” we have created in our country when  the Prime Minister bases government policy on mysterious, un-named sources, who we cannot discuss; nor debate; nor even understand; because we know nothing about his/her/it’s credentials.

Too many of these Un-named Sources floating around. Hard to keep track of them.  We need to start numbering them.

Or, here’s an idea, give them names?

And just maybe, New Zealanders need to be just a little less trusting of the man – whose name I  will keep confidential – who is our Prime Minister.

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Related blogposts

“I dunno. I wasn’t told. I wasn’t there.”

Drugs & Gambling – NZ’s 21st Century Growth Industries?

Additional

Govt folds for SkyCity

Green Party: Gambling Policy Summary

Green Party:  Public policy on gambling should not be for sale

Tumeke: Sky City to gain $25 million from 350 more pokies in dirty deal with Government

NZ Herald: Axe tobacco, ban cigarette exports – health professor

NZ Herald: ‘Big Tobacco’ on trial  – Canada’s biggest-ever lawsuit

NZ Herald: Government gets big bucks for bad habits

NZ Herald: Casinos safer than pubs, Key says

Scoop.co.nz:  Tourists Come to See Country & Culture – Not Casinos

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