Another good poll for a LabourGreen government

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The election of David Cunliffe has had the desired effect; in yet another poll, Labour is up, whilst National is either down or trailing. If these polls are any indication, and barring any major f**k up from the left, we are on course for a change in government next year (if not earlier).

A recent Herald Digipoll had Labour  on 37.7%, giving  it 48 seats. With the Greens on 11.3%, giving it 14 seats, and with Mana’s one seat, the centre-left would have 63 seats in the House. (See:  Labour rockets in poll)  More than sufficient and not needing to rely on the unpredictable Winston Peters (who has still not ruled out coalescing with the Nats, post election).

The Herald Digipoll is backed up by the latest Roy Morgan poll (for which this blogger was recently polled as well, via cellphone – see: Mr Morgan phoned).

The results are a spectacular boost for a new LabourGreen government – and a death notice for the Tories;

 

 

Centre-Left Bloc

Labour:  37% (+ 4.5%)

Greens: 11.5% (- 3.5%)

Mana:  0.5% (n/c) 1 seat (?)

Centre-Right Bloc

National Party: 42% (+ 1%)

Maori Party: 1% (n/c) 3 seats?

ACT NZ: 0.5% (- 0.5%) 1 seat?

United Future: 0.5% (unchanged) 1 seat?

Conservative Party of NZ:  2% (+ 0.5%)

Unknown orientation

New Zealand First: 4.5% (- 2%)

 

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Source: Roy Morgan

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Gary Morgan, of Morgan polling, says,

“Today’s New Zealand Roy Morgan Poll shows a large boost to Labour’s support (37%, up 4.5%) after the election of David Cunliffe as the new Labour Leader – now at its highest since Helen Clark was Prime Minister in October 2008. The boost to Labour’s support has come at the expense of fellow Opposition Parties the Greens (11.5%, down 3.5%) and New Zealand First (4.5%, down 2%).

“A potential Labour/Greens alliance (48.5%, up 1%) remains well ahead of National (42%, up 1%) and would form Government if an election were held now. The immediate boost to Labour support provides Cunliffe with a great ‘platform’ to explain why New Zealand electors should vote for Labour again.

“If Cunliffe can enunciate a consistent and concise message of the Labour Party policies and how they will improve the lives of New Zealanders and the country in general over the next 12 months, Cunliffe stands a real chance of being elected as New Zealand’s next Prime Minister at next year’s election.”

Indeed.

Roy Morgan explains it’s polling techniques, “This latest New Zealand Roy Morgan Poll on voting intention was conducted by telephone – both landline and mobile telephone  , with a NZ wide cross-section of 934 electors from September 16-29, 2013. Of all electors surveyed a high 5% (down 1%) didn’t name a party.”

It is interesting to note that the number of undecideds/wouldn’t say, are down by a percentage point. That means that just over a year out from the election, voters are making up their minds. And it isn’t looking too good for the Nats. The Nats promote a pseudo-“hands off” approach to economic/social problems (except for Skycity, Rio Tinto, Warner Bros, Southern China Airlines, Mediaworks, etc) – such as Brownlee’s infamous quip that the housing crisis in Christchurch is best left to the free market to solve (see:  Christchurch rent crisis ‘best left to market‘). Yeah, right.

People want active solutions to pressing problems. Throwing corporate welfare at companies like Warner Bros and Rio Tinto will not help struggling young New Zealanders into their own homes; feeding hungry children from poverty-stricken families; or create jobs for the 164,000 unemployed in this country. The latest Reserve Bank restrictions on first home buyers with low deposits – sanctioned by Bill English – will be the final straw.

When New Zealanders eventually  tire of flirting with  a do-nothing National government, they look to interventionist parties (Labour, Greens, and Mana) to do the job.

After two terms, the smile and wave frontman for National will be thrown out and their diabolical legislation can be reversed and consigned to the garbage heap of history.

 

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References

Roy Morgan Poll

Herald Digipoll

Fairfax:  Christchurch rent crisis ‘best left to market‘

Previous related posts

Mr Morgan phoned

Latest Roy Morgan Poll – on course to dump this rotten government

 

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Citizen A: With Martyn Bradbury, Julie Fairey and Keith Locke

– Citizen A –

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– 27 June 2013 –

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– Julie Fairey & Keith Locke –

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This week on Citizen A host Martyn Bradbury, Julie Fairey & Keith Locke debate the following issues:

Issue 1: Poll Dive for David Shearer. Does this latest Herald Digi-Poll scare Labour’s caucus into reconsidering Shearer as leader?

Issue 2: Would a NZ First backed GCSB bill be the worst outcome for New Zealand?

Issue 3: And what did Auckland mayor Len Brown give away to get the support of this National-led Government?

Citizen A screens on Face TV, 7.30pm Thursday nights on Sky 89

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Acknowledgement (republished with kind permission)

The Daily Blog

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Dodgy polls, dodgy dealings, and a spot of fear-mongering

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Dodgy Polls

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The lates Herald-Digipoll paints a depressing  picture for Labour. Or, does it?

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Acknowledgement: Radio NZ – Further fall in polls dismissed by Labour

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However, the poll is by no means as accurate as some would have us believe,

• 11.9% of poll respondents were undecided. (see: Poll shock: Labour, Shearer take dive as Nats roll on)
• The poll has a margin of error of plus or minus 3.6% (see:  IBID)
• Digipoll uses landline phone calling only (unlike Roy Morgan), and therefore excludes households and flats that rely solely on cellphones (source)
• The Herald-Digipoll on 25 November 2011 (one day before the election) reported National polling on 50.9%. (See: Final poll: Nats win looks certain, Winston over 5%) National’s actual election result was 47.31% (source)

The real poll to watch is Roy Morgan, which calls cellphones as well as landlines.

The Herald-Digipoll should therefore be treated with a fair measure of scepticism.

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Dodgy dealings

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Acknowledgement: Peter Francis: undermining family’s campaign for justice was my low point

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Anyone who believes that expansion of GCSB’s surveillance powers would target only “subversives” should read the above article from The Guardian. Read it in full.

And take note of who the UK Police labelled as “subversives”.

Never underestimate the willingness and  ability of state agencies to pry and interfere in our lives – especially  when those state agencies feel threatened.

The State does not “love” us.

The State is a multi-faceted entity that may help us one day – and spy or threaten us the next.

The story of former police officer  Peter Francis should serve as a clear warning to everyone that the power of the State can be easily mis-used, and is best kept on a short leash.

I am therefore incredulous that the GCSB – which broke the law by illegally spying on 88 New Zealanders, is now about to have that law-breaking legalised, and spying over us all, legitimised. This is practically rewarding criminal behaviour.

Now Winston Peters is flirting with the Nats by offering to support the Government Communications Security Bureau and Related Legislation Amendment Bill – with “safeguards”.

“Safeguards”?!

Rubbish.

Peters is not in the least interested in safeguarding the rights of New Zealanders. He is interested only in destroying political opposition (the United Party) and safe-guarding his own interests and position at the next election as “king maker”.

I wonder if Me Peters will be willing to explain to his audiences why he is considering expanding the powers of the GCSB, thereby sending us further down the road of becoming a Surveillance State.

NZ First must vote down the Government Communications Security Bureau and Related Legislation Amendment Bill. Otherwise, he may regret having this stain on his political career.

Mr Peters, just say,

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Fearmongering

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When a politician starts to engage in naked fear-mongering to panic the masses into supporting whatever dodgy agenda they’re engaged in – it’s time to start worrying.

Evidently, according to John Key,  the entire country is in dire  need of “protection” from unseen, unknown  evil villains,

“By the way, very senior Labour members within that caucus understand completely the importance of national security and of keeping New Zealanders safe and the very question they might have to ask themselves if one day there was a equivalent of the Boston bombings in New Zealand would they be the very same members who would stand up and say they prevented New Zealanders from being kept as safe as they otherwise could be.”

Acknowledgement: NZ Herald – Spy bill: ‘This isn’t playtime’ – Key

That’s on top of Key’s other utterances.

On weapons of mass destruction,

“There have been covert attempts to acquire New Zealand science and technology for programmes relating to weapons of mass destruction or weapons delivery systems”

Acknowledgement: NZ Herald: PM’s hacking claims a distraction – Labour

On foreign terrorism (with domestic support),

“There are people within our country who have links to offshore terrorist groups.  Those links range from helping to fund terrorist groups through to an attraction to their extremist activities.”

And,

“While the terrorism threat in New Zealand has remained low, there are people within our country who have links to off-shore terrorist groups.”

Acknowledgement: TVNZ – Key reveals WMD cyber terrorism threat to NZ

I wonder if those “off-shore terrorist groups” comprise of Greenpeace, Sea Shepherd, PETA,  et al?

On cyber espionage,

“And the many other threats to our national security have continued to intensify, these include cyber-attacks against Government and private organisations where information is at risk, and the intellectual property of some of our smartest and most innovative New Zealanders is at risk.”

Acknowledgement: IBID

But it’s all ok, according to Key, who resorts to the “You-Have-Nothing-To-Fear” rhetoric,

“With regards to the three main functions, the Act will be amended to make clear the GCSB can use its powers when undertaking activities in all of these areas, subject to controls and conditions.”

“Controls and Conditions”?!

We’ve already had “controls and conditions” under the current GCSB law, which stated quite clearly* that the Bureau was not legally permitted to spy on New Zealand citizens and permanent residents.

Nevertheless, that still didn’t stop them  from spying on 88 New Zealanders and permanent residents.

Acknowledgement: NewstalkZB – Threats of cyber espionage and terrorism

“What actually happens with national security is protecting the interests of New Zealanders, and if people aren’t doing something wrong, then it’s very unlikely they would be falling within the remit of the GCSB’s activities.”

Acknowledgement: Otago Daily Times – Key goes on offensive over GCSB

Really? “If people aren’t doing something wrong, then it’s very unlikely they would be falling within the remit of the GCSB’s activities.”?!?!

The families spied on by Peter Francis and other UK police [see above: Dodgy dealings] might feel differently, Mr Prime Minister.

Fear-mongering – a despicable way to convince the public for the need to change a law.

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*Note

Section 14 of the Government Communications Security Bureau Act 2003 states;

14 Interceptions not to target domestic communications

• Neither the Director, nor an employee of the Bureau, nor a person acting on behalf of the Bureau may authorise or take any action for the purpose of intercepting the communications of a person (not being a foreign organisation or a foreign person) who is a New Zealand citizen or a permanent resident.

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Polls, Rogue Polls, and Damned Rogue Polls!

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Two previous polls this month showed a slight increase for National, and a small corresponding drop for Labour,

National – 47.9% (+0.45)

Labour – 32%  (-2%)

Greens – 10.7% (+1.6%)

NZ First – 5.5% (+1.1%)

ACT – Dog tucker

Source: Herad Digipoll 11 September 2012

National – 46.5%  (+2%)

Labour – 31%  (-1%)

Greens – 12.5%  (-2%)

NZ First – 4.5%  (-0.5%)

ACT  – still dog tucker – with biscuits thrown in

Source: Roy Morgan 13 September 2012

Which makes a recent TVNZ/Colmar Brunton Poll somewhat odd, as it appears to break the trends shown in the above two polls,

National – 45%  (-3%)

Labour – 34%  (+2%)

Greens – 12.0%  (n/c)

NZ First – 2.0%  (-1%)

ACT  – dessert, leftover humble pie

Source: Labour makes gains on National – poll 23 September 2012

So two polls show National tracking up – and one shows the same Party dropping. Which is correct? Which is the ‘rogue poll’?

This blogger opts for the latter, the TVNZ/Colmar Brunton Poll.

With National’s recent strategy to paint Maori water claims as “greedy” and maintaining that “no one owns the water” (as opposed to coal, oil, and gas being sold to power thermal electricity generation) ; and Bennett’s relentless beneficiary-bashing proceeding at Warp Factor 9 – it is hardly surprising that the Nats are rising in the polls.

This is the same dog-whistle politics which Don Brash used during his stint as leader of Labour Greens ACT Mickey Mouse Party  the National Party (finally got the right one – hard to keep track of  The Don, these days)  in January 2004 during his infamous “Orewa Speech”.

The racists and low information voters loved it. Whether bashing the “lazy druggie benes” or bashing the “lazy greedy Mow-ries” – National and ACT know they can always rely on exploiting this country’s latent prejudices to secure some increased electoral support.

The Nats enjoyed a stunning 17% meteoric rise in the polls in 2004, thanks to Brash’s odious speech, that would’ve made a certain German Corporal proud.

The  TVNZ/Colmar Brunton Poll is definitely rogue.

It is too early for the punters to cotton on to the fact that National Party strategists, beavering away in their little dens on the Beehive’s Ninth Floor (or basement dungeon, or where ever Key keeps his Orc-ish minions) are conning them Big Time.  Diversion and distraction – the oldest game in the political book to keep the Middle Classes from realising that National is failing to rev up the economy and unemployment is on the rise.

I am reminded of playing with kitty cat with a bit of string…

It works similar with the Middle Classes. But instead of string, use bene-baiting or “standing up to dem  Mow-ries“. Guaranteed to work.

This blogger still believes that we are in line for a change in government come 2014 (or earlier). Eventually, the Middle Classes tire of hearing the unemployed, solo-mums (but never solo-dads), Maori, etc, demonised and begin to realise that National has nothing positive to offer.

That is when people realise that the Emporer has no clothes. *ick*

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Addendum

As a side issue…

Colmar Brunton brags on its website that it ” is delighted that the One News Colmar Brunton Poll is noted as the poll that most closely predicted the 2011 election “.

According to their own data, they are nothing of the sort. In fact, Roy Morgan achieved closer Party polling than Colmar did. The closest polling figures to actual Election Night voting results are marked in red,

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Source

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Colmar Brunton got four results closer to Election Night with scores for the Conservative Party, Labour, Greens, and Mana.

Roy Morgan got five scores closer to Election Night; National, ACT, United Future, Maori, and NZ First.

If you’re going to brag that you do a better job than your competitors, it might be a good idea to back it up with real evidence. (At least 50% of respondents agree with that assertion… )

Interestingly, Colmar Brunton generally got it right with the opposition parties (except for Conservatives) whilst Roy Morgan generally got it right with the government coalition parties (except for NZ First).

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Previous related blogposts

As predictable as the rising sun (11 Sept)

Poll shows gain for National’s ‘dog whistle’ politics (18 Sept)

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As predictable as the rising sun

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As previously posted on 6 September,

“With low polling and redundancies dominating the headlines, National has cast about for another dog-whistle to distract the easily-led Middle class.

They’ve done the unemployed and solo-mums (but never solo dads) “to death”.

Next minority on the List; Maori.

Cue: John Key’s derisory response to the upcoming nationwide  hui on water rights,

“The Government does not believe there should be a national hui; does not believe there should be a national settlement and it probably would not recognise all of the rights and interests that some Maori groups believe they have.

If the Crown was to be represented at the hui, and it wont be, because we’ve said were not having a national hui, we don’t support that…if you are an MP in the government you represent the Crown and any representation by my MPs at such an event would be interpreted as representation by the Crown.

I’ve made that position absolutely crystal clear..I do not accept the view that there needs to be a national hui, because I do not accept there will be a national settlement, because I do not accept it’s a national issue.”

See: Key – Government won’t go to water hui

Maori-bashing.

Almost as good as bene-bashing.

Or “get tough on crime/crush cars” rhetoric.

“Standing tough” with Maori “demands” for water rights will probably work a treat with racist rednecks and low-information voters.  With the former, their racism is deeply ingrained and such ignorance can be written of like the forty-plus financial companies that sucked billions out of mums and dads investors.

With the latter, it is a matter of education and dispelling myths and prejudice, before people’s  eyes eventually open and they connect-the-dots.

National will probably rebound in the polls on this strategy.

See blogpost: National in trouble? Time to dog-whistle the Middle Class!

It appears that my prediction has come true and  the latest Herald-Digipoll shows a slight “burp” in  National’s poll rating.

Support for National has risen marginally by 0.4% – a barely discernible rise for the Party,

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Source

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The slight rise in support for National is due in no small part to their redneck dog-whistling; opposition to Maori water-rights claims; beneficiary bashing; and suchlike.

This kind of support is a kneejerk reaction and can be comfortably ignored. People eventually look for a government that offers positive messages – not constant negatives.

By contrast, Labour has dropped in the polls by 2%. But it can take heart that the move has gone to NZ First (1.1%)and predominantly the Greens (1.6%). (This poll was taken before Shearer announced Labour’s Food in Schools policy.)

The increased support for the Greens should reinforce Labour’s move to the centre-Left, and confidently abandon all pretenses of adopting a “National-lite” mirror-image.

For Labour to rise in the polls, they need only stay true to their roots  and raison d’être – as the conscience and humane face of New Zealand society.

Likewise there is room for only one hard-arsed, neo-liberal obsessed, bene-bashing Party in this country, and that segment of the political spectrum is firmly inhabited by the National Party.

Labour’s path is clear; reassert it’s moral leadership on the political spectrum and reach out to every sector of New Zealand society.

Offer New Zealanders a clear path; more of the same of National’s unworkable policies; or something better. Something that encapsulates New Zealanders’ sense of fairness.

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Bolivia, New Zealand, and Tony Kokshoorn

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As the economy continues to stagnate,  business 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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As predicted: National dropping in polls!

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Full Story

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As this blogger has predicted over the last couple of months, National is starting to drop in the polls. They are taking a ‘hit’ in electoral support as scandal after scandal hits various government Ministers and the public are becoming more and more aware that National has no economic plan to grow the economy and generate new jobs.

The Poll results for the latest Herald Digipoll,

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National: 48.1% (- 2.8 points)

Labour: 34.8% (+ 6.8)

Greens: 9.2% (- 2.6)

NZ First:  4.9% (- 0.3)

Maori Party: 1.7% (+ 1.3)

United Future: 0.7 per cent (up from 0)

Mana: 0.1 (- 0.2)

Conservatives: 0.1% (- 1.2)

Act: 0.0% (- 1.8)

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As if to underline National’s fall in the polls is confirmed by voter confidence in the way the country is being run. Voter confidence has fallen as well,

• 49.2%  believe the Government is moving in the right direction (down from 54.4%)
• 42.1%  believe the Government is moving in the wrong direction(up from 36.7%)

As well as confirming the  view that this government is becoming less popular with each passing day,  this blogger predicts that this government will not run it’s full course to 2014.

The Opposition parties (Labour, Greens, NZ First, and Mana) should be working over-time to present a credible broad front of a government-in-waiting. Policies for job creation, alleviation of poverty, and government-supported economic groweth  must rank as the top three policies.

Nothing else will do.

Along with those three policies, all opposition parties must maintain a strong internal discipline.

In plain terms of single syllables: for god’s sakes, don’t stuff it up!

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References

Labour makes big leap in poll

NZ Herald Editorial: Labour leader shaping up as quiet achiever

Related Blogposts

National – The End is Nigh

Bugger the polls?

Bugger the polls? (Part #Rua)

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