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Posts Tagged ‘David Slack’

Citizen A – 24 January 2013

27 January 2013 1 comment

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– Citizen A –

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– 24 January 2013 –

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– David Slack & Dr Wayne Hoper –

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– National Party cabinet reshuffle  –  First Political Poll of 2013  –  Ratana & the Maori Party –

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Issue 1: National Party cabinet reshuffle – rearranging deck chairs on the Titanic or the boldest political move of the 21st Century?

Issue 2: First Political Poll of 2013 – National up and Labour down – what does David Shearer need to do?

and Issue 3: Ratana this weekend – has Maori political influence peaked – what is happening in the Maori Party?

Citizen A broadcasts on Auckland UHF and will start transmitting on Sky TV on their new public service broadcasting channel ‘FACE Television’ February 7th February 2013.

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Acknowledgement (republished with kind permission)

Tumeke

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Citizen A – 4 October 2012 – Online now!

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Citizen A

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– 4 October2012 –

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– David Slack & Selwyn Manning –

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Issue 1: two inquires, one Police investigation , spies meeting in Wellington, Key visiting Hollywood and an official apology – how much more weird can the Kim Dotcom scandal get?

Issue 2: Does the Education Ministry’s handling of school closures in Christchurch make the GCSB illegal spying look competent?

Issue 3: If crime is down, why are we building a new billion dollar private prison?

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Acknowledgement (republished with kind permission)

Tumeke

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Bolivia, New Zealand, and Tony Kokshoorn

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As the economy continues to stagnatebusiness confidence plummets, unemployment remains stubbornly high, and other negative social and economic indicators feature in our daily media reporting,  National’s desperation for any means for economic growth becomes more apparent.

The national cycleway fizzled out; the Christchurch re-build moves at a snail’s pace; and the Sky City convention centre has become a liability as the public is (rightly) concerned about increasing problem gambling.

National continues to look at easy, quick-fix solutions. And nothing is easier as a quick-fix than digging a hole and extracting precious stuff. You can’t get easier than that.

Facing staunch public opposition, on  20 July 2010, National announced that it was backing away from mining in Conservation land. In an attempt to allay mounting public anger, Energy Minister Gerry Brownlee stated categorically,

At the time the discussion document was released, I made it clear that it was a discussion. There were no preconceived positions from the Government. We have no intention of mining national parks.”

See:  Govt confirms no mining Schedule 4, national parks

But it seems that the Nats cannot help themselves.  Like a kleptomaniac drawn to shiny things, National disclosed on 25 June,

The Government has confirmed plans to survey for minerals in world heritage sites on the West Coast.

Aeromagnetic surveying will be conducted in the South Island from Haast to Karamea, including large chunks of Te Wahipounamu South West New Zealand world heritage area.

The surveying follows a similar project in Northland last year, when more than 13,590 square kilometres of the region were surveyed from February to August. That was followed by an announcement from Energy and Resources Minister Phil Heatley this month, of a competitive tender process for exploration permits for metallic minerals in the region. “

See:  Mineral hunt in heritage areas

They said were  “just looking“.

On the following day – probably sensing rising public unease – Dear Leader John Key rushed to reassure the public,

I can give you an assurance we won’t be mining on world heritage sites.   What we are doing is gathering information for a variety of other reasons.”

See:   Key: No mining in world heritage areas

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One wonders what Key’s “ variety of other reasons  ” are?!

As one media report states,

The Conservation Department says it is one the great natural areas of the world, with “landscapes of untouched beauty”.

The West Coast surveys will not include areas protected under Schedule 4 of the Crown Minerals Act. However, the schedule does not prevent mining in world heritage areas such as Te Wahipounamu.

Economic Development Ministry spokeswoman Tracy Dillimore said yesterday that Te Wahipounamu would be surveyed to provide a good understanding of the geology and mineral potential of the wider area.

“New Zealand is potentially highly prospective for a wide range of minerals. The Government would like to see New Zealand maximise the benefits of safe and environmentally responsible development by reputable operators”.  “

See:  Mineral hunt in heritage areas

On 11 July, in response to a Herald-Digipoll, Grey District mayor, Tony Kokshoorn was invited to comment on the issue of mining on the West Coast, on Radio New Zealand’s  ‘Afternoon With Jim Mora’s‘ show.

To say that Kokshoorn was enthusiastic about mining – including open cast mining – would be the understatement of the year,

” … Look the benchmark has always been talked about in the last two years was when Gerry Brownlee said they were going to actually mine on Schedule 4  [DoC] land. What happened was you had a big protest  that was just alluded to a minute ago, down Queen Street and they said 50,000 went down there and that was taken as the benchmark and people were against mining on Conservation land.

But the benchmark is totally wrong. I mean, it’s a well known fact it was nothing like 50,000 people. It was more like only 25,000 or 30,000 people that marched in the first place, so it’s all out of kilter. The bottom line here is that  West Coasters  and a lot of people in New Zealand, they do want mining. They want to actually get  the wealth that’s in the ground, out, so we can have  good health, education, and policing. 

Why would we send our workers to Australia and the rest of the world, to earn big wages and earn those countries valuable overseas exchange when we can have it, and we can have wealth ourselves?

Jim Mora asked,

Even if it’s open-cast, a lot of it?

Mayor Kokshoorn replied,

Yes, of course. Look, it’s a pin-prick  on the surface. The West Coast runs from Karamea to Haast, which is the equivalent of Wellington through to Auckland.  It’s a huge, huge, area. We’re not going to ruin the crown jewel that we have, and which is our rain forest. We’re gonna make sure they stay intact.

There’s a big tourist industry round that and you got to go back to the fact that the Resource Management Act 1991 was put in place for that exact reason, and was to get a win/win so we can actually manage our environment and at the same time get economic development for our region. So for anyone to think that somehow we’re going to ruin it; we’re going to get the chainsaws out again; or we’re going to get the bulldozers out, that is just absolute rubbish.

Those days went many, many years ago. “

Source: Radio NZ   The Panel with David Slack and Ali Jones (Part 2)

Tony Kokshoorn sez “we’re not going to gret the bulldozers out again”. In which case,  pray tell, Mr Mayor, how do you propose to dig an open-cast mine? With f*****g teaspoons???

And how can he say that “those days went many, many years ago” – of chainsaws and bulldozers – when that is precisely how open cast mines are dug out of ground or mountains. Let us be absolutely candid and straight up; open cast mines are excavated with bulldozers and other massive earth-moving equipment.

The waste material – millions of tonnes of rock – has to be dumped somewhere.  Much of those tailings contain toxic heavy metals and other elements,

Mining can cause serious long-lasting water pollution through acid mine drainage. Copper, lead, zinc, cadmium and arsenic can leach out when water contacts the exposed rock in mine workings or tailings. This pollution is very serious and can be a problem that remains long after a mine is abandoned.

On Mt Te Aroha, poisonous waste –  from just 90,000 cubic meters of tailings of the Tui mine, (which was abandoned in 1970 when the mining company went bankrupt) , is costing taxpayers over $17.5 million to attempt to fix. The Martha Mine will have over 40 million cubic meters of toxic tailings.  Which means the Tui Mine tailings are just 0.225% of  the volume of the Martha mine tailings !

See:  How would outstanding  areas  be degraded by gold mining?

To remind folk what an open-cast mine looks like, this is the Newmont mine in Waihi,

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Perhaps the most dubious claims made by the likes of Tony Kokshoorn, Steven Joyce, et al,  is that mining will create new jobs and increase our wealth.

As recently as 5 July, Key stated,

New Zealanders, mostly, understand that while we owe it to future generations to do everything we can to protect our environment, we must also do all we can to leave them with a robust and sustainable economy where they can expect a good job and a good standard of living.

We have always believed that New Zealand’s mineral wealth can play a large part in the economy, and we have also always believed this can be done with a minimal impact on our environment”. “

See: Poll backing for more mineral searches cheers Key

They almost always point to Australia as an example.

However, Australia’s wealth is predicated on several other factors as well,

  • A$1.3 trillion-dollar compulsory savings fund
  • Stable political system and economy
  • Strong trade union movement that ensures regular wage increases and protection of conditions
  • The service sector of the economy, including tourism, education, and financial services, accounts for about 70% of GDP. Source

Far from rolling in cash, Australia has a balance of payments that is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years. Source

As well,

”  One single factor that undermines balance of payments is Australia’s narrow export base. Dependent upon commodities, the Australian government has endeavoured to redevelop the Australian manufacturing sector. “

See:  Balance of payments of Australia

So it appears that the mining industry is not quite the ‘gold mine‘ that many believe for Australia.

More to the point, in de-constructing the illusion that mining is some kind of economic ‘panacea‘,  is the example set by Bolivia. A cursory comparison of fiscal indicators between Bolivia and New Zealand yields some interesting facts,

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Bolivia

New Zealand

Population

10,629,000 [2]

4,416,000 [1]

Gross domestic product (2011)

US$24.604 billion [2]

US$161.851 billion [1]

Gross domestic product per capita (2011)

US$2,314.826 [2]

US$36,648.204 [1]

GDP Purchasing Power Parity (PPP) Total (2011)

$50.904 billion [2]

$122.193 billion [1]

GDP Purchasing Power Parity (PPP) per capita (2011)

$4,789.212 [2]

$27,668.367 [1]

Gini coefficient [3]

58.2 (high, 2009) [3]

36.2 (medium, 1997) [3]

Unemployment

5.5% (est.) [4]

6.5% (est.) [5]

Growth

5.1% (2011 est.) [4]

2% (2011 est.) [5]

Inflation

6.5% (2011 est.) [4]

4.5% (2011 est.) [5]

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Sources

[1] Source IMF

[2] Source IMF

[3] Source Wikipedia – The Gini coefficient measures the inequality among values of a frequency distribution (for example levels of income). A Gini coefficient of zero expresses perfect equality where all values are the same (for example, where everyone has an exactly equal income). A Gini coefficient of 100 expresses maximal inequality among values (for example where only one person has all the income) .

[4]CIA Factbook

[5] CIA Factbook

Bolivia’s economy is heavily dependent on oil, gas, and mining,

Bolivia’s estimated 2011 gross domestic product (GDP) totaled $23.3 billion. Economic growth was estimated at about 5.1%, and inflation was estimated at about 6.9%. The increase in GDP primarily reflected contributions from oil and gas production (7.9%); electricity, water, and gas distribution (7.6%); construction (7.2%); transport and communications (6.0%); and financial services (5.5%). Exports rose by more than 30% between 2010 and 2011 to $9.1 billion, due mostly to increased commodity prices, not increased volume.

In 2011, Bolivia’s top export products were: hydrocarbons (45% of total exports), minerals (27%), manufactured goods (24%), and agricultural products (4%).

See: Wikipedia Bolivia Economy

Quite simply, Bolivia’s reliance on mining and hydrocarbons does not seem to have yielded the wealth that people like Key, Joyce, Kokshoorn, and others, are telling us should be our reward for digging bloody big holes in the ground.

Whilst the Bolivian GDP grew two and a half times that of New Zealand, the income appears not to  have “trickled down” to ordinary Bolivian workers.

In fact, as the chart above shows, GDP per capita and GDP Purchasing Power Parity per capita is greater for New Zealanders by several orders of magnitude, than it is for Bolivians.

Further GDP per Capita rankings can be found here:  List of countries by GDP (nominal) per capita. Despite Bolivia’s higher  GDP growth, New Zealanders’ per capita incomes are far higher. Our standard of living is greater.

Accepted wisdom tells us  that our more diverse economy is more productive, and a  subsequently greater wealth-producer. Opportunities for higher wages (than Bolivia) abound throughout our economy that includes food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, as well as mining and hydro-carbon extraction.

As David Slack said on the same panel, hosted by Jim Mora, when he addressed the NZ Herald-Digipoll ‘support’ for mining,

I’m  kinda dismayed that there’s still this Lotto mentality that wants to just find a way to just happen upon our wealth rather than developing  our economy so  that we’ve got more high value business so that we’ve got perpetual wealth from that…  [host interuption]

… Yeah, well you’ll have it once then it’s gone, and you’ll only be getting the royalties off it, not the whole damn thing.

If mining was such a quick-fix wealth creator, then Bolivia should be light-years ahead of us. It clearly is not, and this blogger believes that our higher per capita income can be attributed to the  diversification  and sustainability of our economy.

It should also be remembered that, as David Slack  pointed out, New Zealand does not earn $100 million from the extraction of Mineral X. We benefit from only the royalties (currently set at  1 or  5 %), some taxes, and a few thousand jobs.

See: Taxation and Royalties for Mining Companies

This Fairfax article is  illuminating,

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Full story

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Compare,

” Crown royalties from the mining industry returned just $6.5 million last year… “

With,

” Mining was a $2b a year industry, with $1.1b in exports… “

Obviously, New Zealand makes bugger-all from mining royalties.

And if the mining companies are owned by offshore interests (eg; New Zealand’s two biggest gold mining companies; Newmont, which owns the open pit Martha Hill and underground Favona mines at Waihi, is US-based; and Australian-based OceanaGold), then profits made are remitted overseas, worsening our balance of payments. Only company tax (which can be minimised) and employment of local people provide any measurable benefits to our economy – and even those are minimal.

Where the mining activities result in a tax loss, this loss may be set off against income from non-mining activities, although the benefit of the mining loss is reduced by 50%; ie $300 of mining losses are required to be offset against $200 of non-mining income. The reasons for these unusual offset arrangements relate back to a period when mining companies paid a lower rate of tax than ordinary companies.

Mining companies are prohibited from grouping their profits or losses with other mining companies or with non-mining companies.

Despite these limitations, the tax regime for mining companies is generally regarded as concessionary. For example, it allows mining companies to immediately deduct their exploration expenditure and any expenditure incurred in the development of the mining licence. Thus buildings, mine-shafts, plant and machinery, production equipment and storage facilities, which would ordinarily be capitalised under standard accounting conventions, may be deducted immediately for income tax purposes.

See: Taxation and Royalties for Mining Companies

Further regarding taxation, the Fairfax article   states,

“… but the Government had not yet done any work on how much more tax or jobs could be created from expanding mining into conservation land.”

“More tax”?

Doubtful.

Dear Leader is already on record opposing the Capital Gains Tax, and any other tax for that matter,

National is not going to be raising GST. National wants to cut taxes not raise taxes. “

See: Key ‘no GST rise’ video emerges

And lastly; jobs.

How many workers does the mining industry employ?

Number employed: 4,000 directly, another 8,000 indirectly, as suppliers of goods and services

See: Key Facts of New Zealand Mining

By comparison, the tourism sector plays a significant role in New Zealand’s economy,

Tourism Satellite Account 2011 Report [1 MB PDF]

Year to March 2011 (released October 2011)

  • Tourism Expenditure
    Total tourism expenditure was $23.0 billion, an increase of 2.1 percent from the previous year. 
  • Tourism Contribution to GDP
    Tourism generated a direct contribution to GDP of $6.9 billion, or 3.8 percent of GDP.  The indirect value added of industries supporting tourism generated an additional $8.8 billion to tourism. 
  • Domestic and International Segments
    Domestic tourism expenditure was $13.2 billion, an increase of 2.5 percent from the previous year. 
  • Tourism Export Earnings
    International tourist expenditure in 2011 ($9.7 billion) represents 16.8% of the total export earnings ($52.4 billion).  Tourism is New Zealand’s second largest export earner, followed dairy ($11.6 billion or 19.9% of exports) in 2011. 
  • Tourism Employment
    The tourism industry directly employed 91,900 full-time equivalents (or 4.8 percent of total employment in New Zealand), an increase of 0.6 percent from the previous year.
  • Tourism Contribution to GST
    Tourists generated $1.7 billion in goods and services tax (GST) revenue.

See:   Ministry of Economic Development – Tourism satellite account

It should not escape anyone that there is a high degree of irony here. A multi-billion dollar industry (tourism) relies on the very environment that the Mining industry would despoil with their activities.

To sum up;

  1. Mining is not as beneficial to a modern economy as some insist.
  2. Bolivia is a mining nation and is lagging behind New Zealand in per capita income.
  3. Bolivia’s GDP is growing 2.5 times faster than ours – but so is their inflation, whilst incomes still lag behind ours.
  4. Australia’s mining wealth is considerable – no doubt – but their balance of payments  is more than 7% of GDP negative, and has had persistently large current account deficits for more than 50 years
  5. Australia is far too reliant on mining wealth; their economy is far too dependent on commodities; and they need to diversify.
  6. Crown Royalties are minimal – 1-5% .
  7. Big profits by foreign-owned mining companies leave New Zealand.
  8. Open cast mining creates a considerable impact on the environment, despite claims to contrary.
  9. Mining companies enjoy  a taxation regime that  “is generally regarded as concessionary”.
  10. And far more New Zealanders are employed in the Tourism sector than in the mining industry.

To repeat David Slack’s comments from Radio New Zealand,

I’m  kinda dismayed that there’s still this Lotto mentality that wants to just find a way to just happen upon our wealth rather than developing  our economy so  that we’ve got more high value business so that we’ve got perpetual wealth from that…  [host interuption]

… Yeah, well you’ll have it once then it’s gone, and you’ll only be getting the royalties off it, not the whole damn thing.

Whilst Dear Leader John Key stated,

New Zealanders, mostly, understand that while we owe it to future generations to do everything we can to protect our environment, we must also do all we can to leave them with a robust and sustainable economy where they can expect a good job and a good standard of living.

We have always believed that New Zealand’s mineral wealth can play a large part in the economy, and we have also always believed this can be done with a minimal impact on our environment.

See:  Poll backing for more mineral searches cheers Key

I know who I believe.

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Additional

NZ Herald:  Optimism dips in struggling economy

NZ Herald:  Poll backing for more mineral searches cheers Key

Fairfax Media: NZ economic growth ‘unspectacular’

NZ Herald:  Unemployment rate lifts to 6.7pc

Crown Minerals Act 1991

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Citizen A – 7 June 2012 – Online now!

16 June 2012 2 comments

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Citizen A

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– 7 June 2012 –

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– David Slack & Claudette Hauiti –

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Issue 1: Has National underestimated smaller class sizes? Was Hekia set up?

Issue 2: Stopping abusers and killers from having babies – Child protection or divisive bennie bashing for political gain

Issue 3: The Greens hold their party conference in the weekend, what are the challenges facing them taking a serious role in any Government post 2014?

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Acknowledgement (republished with kind permission)

Tumeke

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