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

31 March 2014 5 comments

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Over the last two years (give or take), NZ First leader, Winston Peters, has stated on numerous occassions that buying back shares in the three energy SOEs (Meridian, Genesis, and Mighty River Power) will be a “bottom line” in any post-election coalition deal.

On 20 June 2012, NZ First posted this statement on their website,

New Zealand First will use its influence on the next coalition Government to buy back our state-owned power companies which are being flogged off by National.

Rt Hon Winston Peters says New Zealand First is committed to buying back the shares at no greater price than paid by the first purchaser.

“State-owned assets rightfully belong to all New Zealanders but National is intent on handing them over to rich foreign investors.

“It is simply lining the pockets of the wealthy by selling off well-performing assets that already provide the Government with extremely healthy dividends.”

Mr Peters says it is only fair to alert potential investors that New Zealand First’s intention to buy back the shares will be part of any coalition negotiations.

“As things stand now, the assets will end up in foreign ownership which is an outright attack on our sovereignty. We are committed to repelling that attack.”

The pledge was repeated on 29 November 2013;

New Zealand First is the only political party that has said since the beginning that if the Government did go ahead with this idiotic decision, then when we are in a position to influence the next Government, we would buy back the shares at a price no more than that initially paid for them.

On ‘The Nation‘, on 15/16 March, interviewed by Patrick Gower, Peters repeated NZ First policy that a share buy-back, at a cost no greater than the original purchase-price, was a bottom line policy for his Party;

Gower: So that means buying Genesis back?

Peters: That’s right. At no greater price than they paid for it.

Gower: And does that mean buying back the other power companies as well?

Peters: It means exactly that. That’s what our position has been for some time.

Gower: So that’s a priority for you in any negotiations?

Peters: It is a priority, and it also has the blessings in terms of economic calculations from Treasury.

Taken at face value, Peters’ committment to buy back shares in the powercos seems more comprehensive and radical than either the Greens or Labour. Neither have committed to buying back shares in Meridian, Genesis, and Mighty River Power until the government books allow it.

But, can Peters’ pledge be taken at face value?

Can he be trusted to make good on his word to (a) make a share buy-back a bottom-line in any coalition deal and (b) actually follow through?

His track record on such matters is not good.

On 27 September 1996,  the then-Bolger-led National government sold the Forestry Corporation of New Zealand Ltd cutting rights to a private  consortium (Fletcher Challenge Forests, 37.5%, Brierley Investments Ltd, 25%, and Chinese state-owned company,  Citifor Inc, 37.5%)

This became a major election issue in  the lead-up to the first MMP election in  1996, with the Alliance organising a CIR petition to halt the sale.

NZ First leader, Winston Peters, pledged to buy back the cutting rights, stating on several occasions that any government he was part of would “hand back the cheque“;

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The game plan - what we're all playing for - NZ First buy back forest corp

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During the election campaign, Peters stated unequivocally his intentions that the privatisation of Forestry Corp would not stand under any government he was part of;

“I want to tell the Chinese buyers and I want to tell Brierleys that they had better not make any long-range plans because the day after the election is over we will be sending them an emissary to them them exactly what is going to happen, that is, that we are going to keep out promise, they can give back the asset and we will give the money back.” – Winston Peters,  Otago Daily Times, 1 Feb 1997 (on pre-election statement/promise)

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On 11 December 1996, Peters announced that he would be entering into a formal coalition arrangement with the National Party, to form the first MMP coalition government.

Subsequently, Peters’ pledge to “hand back the cheque” and buy back the forestry cutting rights, was ‘quietly’ dropped;

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NZ First ignored chance to implement own policy

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“… NZ First did not make any attempt to include  in the [Coalition] agreement its policy of placing a 24.9% limit on foreign ownership of strategic assets.

Neither did they raise the NZ First promise to buy-back Forestry Corp, which was sold earlier this year to a consortium including Fletcher Challenge.” – Otago Daily Times, 16 Dec 1996

As Treasurer and Deputy Prime Minister in the National-NZ First government, Peters had ample opportunity to implement his Party’s buy-back policy. It was a promise he could have kept. And should have kept.

Instead, NZ First opted to implement National’s policy of tax cuts on 1 July 1998. With even more tax cuts promised by then-Finance Minister, Bill Birch.

This was money that Peters could have allocated and spent of re-nationalising our forests – but was instead wasted on cutting taxes, thereby reducing the ability of the coalition government to implement a buy-back, as Winston Peters had promised.

If Peters holds the balance of power after 20 September, and if he forms a coalition with either bloc, he may well carry out his promise to buy back shares in our energy utilities.

Or then again, he might not.

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References

NZ First: NZ First Committed To Buying Back State-Owned Assets

NZ First: Our asset sales buyback promise – Radio Live Column

TV3: Winston Peters: Asset buy-back ‘a priority’

FAO.org:  Devolving Forest Ownership in New Zealand: Processes, Issues and Outcomes

Treasury: Income from State Asset Sales as at 30 September 1999

Wikipedia: CITIC Group [Citifor]

Wikipedia: Referendums in New Zealand

Otago Daily Times: Alliance quits quest for forestry petition

Otago Daily Times: NZ First ignored chance to implement own policy

Otago Daily Times: NZ First opts for National

Otago Daily Times: Further tax cuts unlikely before next century

NZPA: Birch pledges more tax cuts

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Be careful what you wish for - Key and Peters

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 16 March 2014.

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Radio NZ: Politics with Matthew Hooton and Mike Williams – 9 December 2013

10 December 2013 Leave a comment

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– Politics on Nine To Noon –

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– Monday 9 December 2013 –

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– Kathryn Ryan, with Matthew Hooton & Mike Williams –

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Today on Politics on Nine To Noon,

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Click to Listen: Politics with Matthew Hooton and Mike Williams ( 25′ 53″  )

This week:

  • The political ramifications of Nelson Mandela’s death and the NZ delegation travelling to South Africa,
  • the Green Party’s new policy for the Meridian share float,
  • and leadership changes within New Zealand’s smaller political parties.

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Corporate Welfare under National

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In case there are still one or two New Zealanders remaining who haven’t yet cottoned on to one very simple truism about National in office, let me spell it out; they are rank hypocites of the highest order.

And in case you, the reader, happen to be a true-blue National supporter, let me explain why.

In the last four years, National has been beavering away,

  • slashing budgets
  • sacking nearly 3,000 state sector workers
  • closing schools
  • attempting to close special-needs services such as Nelson’s Salisbury school
  • cutting state services such as DoC, Housing NZ, Police, etc
  • freezing wages for state sector workers (whilst politician’s salaries continue to rise)
  • cutting back on funding to various community services (eg; Rape Crisis ands Women’s Refuge)
  • and all manner of other cuts to  state services – mostly done quietly and with minimum public/media attention.

In return, the Nats successfuly bribed us with our own money, giving us tax-cuts in 2009 and 2010. (Tax cuts which, later, were revealed not to be as affordable as what Dear Leader Key and Little Leader English made out – see:  Key: $30b deficit won’t stop Nats tax cuts, see: Government’s 2010 tax cuts costing $2 billion and counting)

One such denial of funding for public services is an on-going dispute between PHARMAC and the New Zealand Organisation for Rare Disorders (NZORD) which is struggling  desperately to obtain funding for rare disorders such as Pompe’s Disease,

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Acknowledgement: Fairfax Media – Mum not prepared to wait and die

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NZORD and it’s members have been lobbying National for the last four years to gain funding for much-needed medication. They are in a dire situation – this is a matter of life or death for them.

This blogger has blogged previously about their plight,

Previous related blogposts

This blogger has also  written directly  to the Prime Minister and to Health Minister, Tony Ryall.

One response from Minister Ryall is presented here, for the reader’s attention,

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So there we have it, folks. If you’re a New Zealander dying from a rare disease, and PHARMAC won’t fund life-saving medication – don’t expect an assistance from this rotten government. Their response will be, and I quote,

While I share your concern [snort!!!]  for people with Pompe disease, as I advised you in my letter of 22 November 2012, in the current fiscal environment, unfortunately funding is not available for all treatments.”

So “in the current fiscal environment, unfortunately funding is not available for all treatments“?!

But funding is available for;

$1 Rugby – $200 million to subsidise the Rugby World Cup (see:  Blowouts push public Rugby World Cup spending well over $200m)

$2 Movies – $67 million paid to Warner Bros to keep “The Hobbit” in New Zealand (see:  The Hobbit: should we have paid?) and $300 million in subsidies for “The Lord of the Rings” (see:  Hobbit ‘better deal than Lord of the Rings’ – Key)

$3 Consultants – After sacking almost 3,000 state sector workers (see:  555 jobs gone from public sector) – and with more to come at DoC – National seems unphased at clocking up a mind-boggling $1 billion paid to “consultants”.  (see:  Govt depts clock up $1bn in consultant fees)

And on top of that, we are now faced with the prospect of a trans-national corporate – Rio Tinto – with their hands firmly around Meridian Energy’s neck, attempting to extract a greater subsidy from the SOE powerco. The story began in August last year,

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Rio Tinto seeks power deal revision

Acknowledgement: NZ Herald – Rio Tinto seeks power deal revision

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We know why. Despite implausible assertions to the contrary by National Ministers, Genesis Energy, and Rio Tinto executives – the partial sale of SOE powercos (Meridian, Genesis, and Mighty River Power) have made them vulnerable to the demands of Big Businesses.

Rio Tinto  knows that the share price of each SOE will be predicated on marketplace demand for shares.

They know that if there is less demand for electricity, then the price of power may (note: may) drop; those SOE’s profits will drop; and the price of shares will drop.

That leaves shareholders out of pocket and National with egg on it’s face. And a whole bunch of  Very Pissed Off Voters/Shareholders.

Think: Warner Bros. Think: corporate blackmail to shift ‘The Hobbit’ overseas. Think: National not wanting to risk the wrath of Peter Jackson and a thoroughly manipulated Public Opinion. Think: National looking at the 2011 election. Think: panic amongst National ministers and back-room Party strategists.

National capitulated.

This is precisely what is happening with Rio Tinto, Meridian, and National.

In the space of six and a half hours yesterday (28 March 2013),  events came to a dramatic head. The following happened in one day:

9.15am:

Via a Press Release from Merdian Energy;

Thursday, 28 March 2013, 9:15 am
Press Release: Meridian Energy

New Zealand Aluminium Smelter’s electricity contract

For immediate release: Thursday, 28 March 2013

Meridian was approached by Pacific Aluminium, a business unit of global mining giant Rio Tinto Ltd, the majority shareholder of New Zealand Aluminium Smelters Ltd (NZAS), in July 2012, to discuss potential changes to its existing electricity contract.

Since talks began, various options have been discussed and Meridian has offered a number of changes and concessions to the existing contract.

Chief Executive of Meridian Energy, Mark Binns, says that Meridian has advised Pacific Aluminium of its ‘bottom line’ position.

“Despite significant effort by both parties there remains a major gap between us on a number of issues, such that we believe that it is unlikely a new agreement can be reached with Pacific Aluminium,” says Mr Binns.

In the event no agreement can be reached, Meridian will seek to engage with Rio Tinto and Sumitomo Chemical Company Ltd, the shareholders of NZAS, who will ultimately decide on the future of the smelter.

Meridian signed a new contract with NZAS in 2007, after three years of negotiations. This current contract commenced on 1 January 2013 and remains unaltered and binding on the parties.” – Source

To which Rio Tinto replied,

10.15am:

In a NZ Herald story,

CEO  of Pacific Aluminium (the New Zealand subsidiary of Rio Tinto), Sandeep Biswas responded with,

“We believe a commercial agreement that is in the best interests of NZAS, Meridian, the New Zealand Government, and the people of Southland can be reached. We look forward to continuing productive negotiations with a view to achieving a positive outcome for all parties.” – Source

De-coding: “This ain’t over till the Fat Chick sings, and she’s nowhere to be seen. You guys better start hearing what we’re saying or this is going to turn to sh*t real fast; we’ll close our operations at Bluff; 3,200 people employed by us directly or  indirectly will be told ‘Don’t Come Monday’;  your Southland economy will collapse like a Cyprus bank, and National can kiss goodbye to it’s re-election in 2014. Ya got that, sunshine?”

11.15am:

That got the attention of National’s ministers Real Quick,

The Government has opened discussions with Tiwai Point aluminium smelter’s ultimate owners Rio Tinto in a bid to broker a deal after talks between the smelter and Meridian Energy reportedly broke down.

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“With this in mind, the Government has been in contact with Pacific Aluminium’s international parent company Rio Tinto this week to discuss helping to bridge the gap in their positions over the short to medium term, if this could be of assistance in concluding an agreement.

“In the meantime, we understand Meridian’s existing contract with Pacific Aluminium remains in place at least until 1 January 2016 with significant financial and other obligations beyond that.” – Source

Barely two hours had passed since Meridian had lobbed a live grenade into National’s state asset sale programme, and it’s fair to say that the Ninth Floor of the Beehive was in a state of panic. It was ‘battle stations’. Red Alert. National ministers were, shall we say, slightly flustered,

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12.00pm:

By noon, the markets were reacting. Though share-market analysts were attempting to down-play the so-called  ‘Phoney War’ between Meridian and Rio Tinto, Devon Funds Management analyst, Phillip Anderson, remarked that,

“…the announcement had hit Contact’s share price – the company was down 3 per cent in early trading but is now down only 1.2 per cent.” Source

If Contact’s (a fully privatised ex-SOE) share price had dropped 3% on the strength of these media stories, it is little wonder that share-market analysts were down-playing the brinkmanship being played out by Meridian and Rio Tinto. If the share-market was spooked enough, Contact’s share price would plummet, as would that of Mighty River Power – estimated to be in the $2.36 and $2.75 price-range. (see:  Mighty River share tips $2.36 to $2.75).

In which case, National would be floating shares worth only a fraction of what ministers were seeking. In effect, if Rio Tinto closed down operations, Key could kiss goodbye to the partial sale of energy SOEs. They would be worthless to investors.

3.43pm:

By 3.43pm, and six and a half hours since Meridian’s press release, National had negotiated some kind secret deal with Rio Tinto.  We don’t know the terms of the deal because though it is our money, National ministers don’t think we have a right to the information,

The Government is negotiating a new taxpayer-funded subsidy with Tiwai Point aluminium smelter’s owners and has all but acknowledged its assets sales programme is being used by them to get a better deal on power prices.

State Owned Enterprises Minster Tony Ryall this morning said the Government has opened discussions with the smelter’s ultimate owners global mining giant Rio Tinto in a bid to broker a deal over a variation to the existing electricity contract.

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“With this in mind, the Government has been in contact with Pacific Aluminium’s international parent company Rio Tinto this week to discuss helping to bridge the gap in their positions over the short to medium term, if this could be of assistance in concluding an agreement.”

Mr Ryall indicated the Government had offered Rio Tinto “a modest amount of money to try and help bridge that gap in the short to medium term but there’s still a very big gap in the long term… We’re not interested in subsidising this business in the long term”. – Source

Ryall added,

“…they’re pretty tough negotiators and I’m sure they look at what else is happening in the economy when they make their various decisions…

…”they certainly haven’t got the Government over a barrel.”

Three questions stand out from Ryall’s statement,

  1. If  State subsidies for electricity supply to Rio Tinto’s smelter are “short to medium term” – then what will happen when (if?) those subsidies are lifted? Will shareholders “take a bath” as share prices collapse in value?
  2. Does Ryall think we are fools when he states that Rio Tinto did not have the government “over a barrel” ?! Is that how National views the public – as morons?
  3. How much is the “a modest amount of money” that Ryall is referring to?

Perhaps the most asinine comment from Ryall was this, as reported by TVNZ,

“The electricity market is capable of dealing with all the issues relating to the smelter,” said Ryall.

Acknowledgement: TVNZ News – Talks break down over Tiwai smelter contract

Really?! In what way is “the electricity market … capable of dealing with all the issues relating to the smelter” when the government has to step in with what could be millions of dollars worth of subsidies? Is that how “the market” works?!

This blogger has two further questions to put to Minister Ryall. Both of which have been emailed to him,

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Date: Thu, 29 March 2013, 6.43pm
From: Frank Macskasy <fmacskasy@yahoo.com>
Subject: Re: Your correspondence to Hon Tony Ryall
To:  Tony Ryall  <Tony.Ryall@parliament.govt.nz>

Kia ora,  Mr Ryall,

I am in receipt  of your emailed letter to me, dated 5 December 2012, regarding the non-funding of certain medications for sufferers of Pompe Disease. Firstly, thank you for taking the time to respond to this issue in a thorough and timely way. Several of your other ministerial colleagues seem to lack that simple etiquette.

I note that, as Minister of SOEs, you have been in direct negotiations with Rio Rinto, and have offered the company subsidised electricity for the  “short to medium term”.

This will no doubt cost the taxpayer several millions (hundreds of millions?) of dollars.

If  National is able to provide such largesse to a multi-national corporation, please advise me as to the following;

1. Why is the same subsidy for cheaper electricity not offered to ALL New Zealanders? Or even those on low-fixed incomes? Why provide a multi-million dollar subsidy just to a billion-dollar corporation when New Zealanders could do with a similar cut in their power bills?

2. In your letter to me, dated 5 December 2012, you point out that,

“While I share your concern  for people with Pompe disease, as I advised you in my letter of 22 November 2012, in the current fiscal environment, unfortunately funding is not available for all treatments.”

If National has millions of dollars available to subsidise multi-national corporations, them obviously your statement on 5 December 2012 that “in the current fiscal environment, unfortunately funding is not available for all treatments” – is simply not credible.

It is obvious that your government can find money when it wants to. This applies to Rugby World Cup funding, consultants, movie-making subsidies, etc.

As such, I hope you are able to find the necessary funding for medication for people suffering rare disorders.

You are, after all, Minister for Health as well as Minister for State Owned Enterprises.

Regards,

-Frank Macskasy
Blogger

PS: Please note that this issue will be canvassed further on the blogsite, The Daily Blog.

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Minister of Health. Minister for SOEs. Minister for corporate welfare.

Which ‘hat’ will Tony Ryall be wearing today?

And will he find the necessary funding to save the lives of sick New Zealanders?

This blogpost was first published on The Daily Blog on 31 March 2013.

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References

NZ Herald: Rio Tinto seeks power deal revision (10 Aug 2012)

Scoop.co.nz:  New Zealand Aluminium Smelter’s electricity contract Press Release (9.15am, 28 March 2013)

NZ Herald:  Smelter counters Meridian – power deal still possible (10.15am, 28 March 2013)

NZ Herald:  Govt steps in to sort out stalled Tiwai power deal (11.15am, 28 March 2013)

NZ Herald:  Tiwai stoush may affect Mighty River price  (12.00pm, 28 March 2013)

NZ Herald:  Govt offser Tiwai subsidy (3.43pm, 28 March 2013)

Related references

NZ Herald:  Mighty River share tips $2.36 to $2.75 (20 March 2013)

Related to previous blogposts

Pharmac: The politics of playing god (16 June 2011)

$500,000 a year to keep toddler alive (5 Feb 2013)

Rare disease sufferers want pricey treatments (1 March 2013)

Rare disease takes awful toll on boy (1 March 2013)

Call for an Orphan drugs access policy to overcome Pharmac’s systems failure (28 Feb 2013)

Bill English – do you remember Colin Morrison? (4 Feb 2013)

Related Opinion

NZ Herald – Fran O’Sullivan – Govt intervention doesn’t cut mustard (30 March 2013)

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392,000 New Zealanders send a clear message to John Key – Part Rua

12 March 2013 4 comments

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Continued from: 392,000 New Zealanders send a clear message to John Key – Part Tahi

NZ, Wellington, 12 March 2013 – Ms Maniapoto Jackson introduced the first speaker, Greypower’s President, Roy Reid,

“So please welcome up the man who initiated this historical moment for us – the biggest citizens initiated referendum in [New Zealand’s] history!”

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Roy Reid

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“As President of Greypower, I wish to inform you  that Greypower has been opposed to the  sale of state owned assets  for a number of years. And this was reconfirmed at our annual general meeting two years ago. We advised all the political parties in this  House that we were opposed to them selling any of our assets.

Our generation worked hard. We paid the taxes, to build our existing assets. They’re not for sale. They belong to  all New Zealanders.

I sincerely thank all those who worked from one end of New Zealand to the other, to collect those 394,000 signatures just behind us.  It’s the biggest petition  ever presented to this House.
I pay tribute to our co-supporters, the New Zealand students association. For being involved with us, because it shows the country that we are united from the elderly to the younger generations…

…I’m sure that we’ve got enough valid signatures in those boxes to force the referendum. And [despite] no respect for what this government today says, the people of New Zealand will have their say.”

It as perhaps fitting that Mr Reid was given first opportunity to address the crowd.  It was indeed his generation, and others before him, who sacrificed so much to build what we have in New Zealand today. And which a few greedy, short-sighted number of our fellow New Zealanders seem unable to comprehend that these assets do, indeed, belong to us all.

Not just to those with the cash to buy shares.

Our elected representatives certainly did not hesitate to show their agreement with Mr Reid’s comments,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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Ms Maniapoto Jackson then invited the next speaker; ex-Vice President of the Auckland Students Association and  Ngai Tahu; Arena Williams,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Arena Williams

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Ms Williams greeted the crowd in Te Reo and her following message was short, blunt, and to the point,

“There’s one message that the government needs to take home from such an over-whelming support of this petition, and that’s Stop the asset sales and give New Zealanders a chance to have a say on this really important issue!”

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The next invited guest-speaker was  economist, Peter Conway, from the Council of Trade Unions,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Peter Conway

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Mr Conway said,

“The Union movement is really proud to be here today  at this amazing event and I just want to say, fantastic effort. Well done everybody! It’s awesome.

Now it might have been a little bit easier if for me to have the backing of a one million dollar advertising campaign, and maybe if we we’d been able to do it all on line. But I actually think that the fact that we went out there into communities where people work, live, and play and debated the issues; talked to people about it and got such a fantastic response, is really a testament to our democracy…

… So this is part of our democracy. And what we’re saying to the government; respect democracy… Let’s get this referendum up,  and the Council of Trade Unions, on behalf of the union movement, is calling on the government to halt all asset sales and listen to the people.

Kia kaha, and thanks very much.”

Ms Maniapoto Jackson then welcomed the Leader of the Labour Party and MP for Mt Albert, David Shearer,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

David Shearer

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 After expressing his welcome,  Mr Shearer gave a brief thanks to the people, followed by a similarly brief message,

Look, I just wanted to start by saying ‘thank you’, ‘thank you’ for all of those people who went out day after day, weekend after weekend, who stood on cold corners in the middle of winter and got people to sign this petition. Thank you to the hundreds of thousands of New Zealanders who care about this country so much that they put their signature to this petition.

This is about the transfer of an asset that we all own into the hands of a very few. That’s what it’s about, it’s about fairness. It [asset sales]  is not fair.

This referendum will make the government listen to New Zealanders.

The fight will go on. It’s not finishing today. It will go on and we in the Labour Party will continue to fight this until 2014.

I wanted to say, as the boxes were being put up there, I was thinking that “Another Brick in the Wall” tune came into my mind, and I was thinking “We Don’t Want your Asset Sales Programme John Key”…

… Once again thank you for your effort, thank you for being here today. Kia Kaha,  let’s take  it to the government.”

Before Ms Maniapoto Jackson introduced the next speaker, Green Party co-leader Russell Norman, she briefly pointed out  that the Parties behind her were unified, “with only the odd absence, which was duly noted“.

Mr Norman then addressed the people,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Russell Norman

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Mr Norman then addressed the people,

“Today we stand here here on behalf  of the millions of New Zealanders who are opposed to the sale of their assets. Today we stand here on behalf of the hundreds of thousands von New Zealanders who have signed this petition, behind us. Today we stand here on behalf of future generations who are relying on us to stand up for our country.

And that is why we have done this massive piece of  work that you see behind us.

It has been incredibly hard work on behalf of thousands and thousands of people to go out and collect these signatures. It is despicable that the Prime Minister  then says that the people who signed this petition were children and tourists! Prime Minister you do not know New Zealanders!

If the Prime Minister of New Zealand thinks that the people who signed this petition, the 400,000 people who signed this petitition, are not real New Zealanders, then he is in the wrong country…

… Real New Zealanders are the ones who worked and laboured to build those assets up so that we could inherit them. Real New Zealanders are the ones who will look after them so that we can pass them on to those who come after us…

… We have a mandate to keep our assets. The Prime Minister has no mandate to sell them.”

Ms Maniapoto Jackson then introduced Mr Peters, saying  “if there’s anyone who can talk about justice and fairness, it’s Winston Peters“,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Winston Peters

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“…Mr Key does does not have a mandate to make these sales. We all know the last election result and he relies upon the vote of Peter Dunne, who you know, with your money, at the last election had TV adverts saying that he would not do that.  So there is no mandate.

We come now to the referendum, which  is a chance for Mr Key to see whether he’s got the public backing and he doesn’t have even have the backing of one third of the National Party vote by every survey that you and I have seen.

Ladies and gentlemen, it’s going to be difficult over the next few months on this issue, but I want to make something very, very,  clear. Unless we make it clear to everyone who’s buying, that after the next election, whenever they fly the white flag, we intend to take back those shares at no greater price than they bought it for, then we will not be making the message very clear for Mr Key who governs for the few and very few.

Now your problem is,  you don’t own a casino. Otherwise he’d be listening to you.

And you’re you’re not a Hobbit or some wide-boy from Hollywood, otherwise, he’d be listening to you.

No wonder he fell upon the defence of tourists, because that’s what Mr Key is; a CV Prime Minister, who will soon go, on issues like that…

… this is just the beginning. It is not the end.”

Next up, Ms Maniapoto Jackson introduced “the wonderful leader of the Mana Party, and MP for  Te Tai Tokerau, Hone Harawira“,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

Hone Harawira

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Mr Harawira injected a note of humour into the afternoon, and the crowd enjoyed his off-beat way of giving a speech,

“Look I’m going to do most of my korero in Maori, so the best way for you to support it is, every time I stop to take a breath,  clap like crazy!”

The crowd obliged with enthusiasm, clapping and cheering each time he paused  during his korero.

Ending his speech in  Te Reo, he  added,

“Now just for a short chant, a short chant, eh? Because Moana get’s all the the recording rights for this little gig, so mine is going to be a short little chant. So just follow after me. You ready?

“Aotearoa is not for sale!”

The crowd responded, “Aotearoa is not for sale“.

“C’mon, c’mon, now you can do better than that,” he ‘admonished the crowd with a smile.He repeated, “Aotearoa is not for sale!”

The responded boomed back, AOTEAROA IS NOT FOR SALE!”

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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“Tell John Key to Go to hell!”

“TELL JOHN KEY TO GO TO HELL!”

And with that, Hone  Harawira finished with a cheerful “Kia ora tatou!”.

As far as political speeches went, it was one of the shortest and more entertaining that this blogger has heard for a while. He certainly injects a bit of fun into a political event.

As an intriguing aside, this blogger managed to capture this picture of two Davids and a Damian. Their body language seemed to belie any suggestion of tension or ‘struggle between Messrs Cunliffe and Shearer.

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

(L-R) David Shearer, David Cunliffe, Damien O’Connor

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Hmmmm… One has to wonder…

On a closing note, Ms Maniapoto Jackson ‘encouraged’ (dragged!)  Hone Harawira back to the microphone to sing a duet – an old song from their protest days together,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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And final posed-pics from Ms Maniapoto Jackson and  Hone Harawira, after their singing-duet finale,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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It’s interesting to compare the persona of Hone Harawira in the media, especially in his early days in Parliament – with the man who presents to the people, at public gatherings.  There is a warmth and sincerity to the man that is almost wholly lacking in his MSM appearances – but a warmth and humour that is obvious when seeing him in person.

And from the Green Party caucus, this lovely snapshot. They deserve thepride they were feeling in being part of a movement to collect nearly 400,000 signatures,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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In conclusion…

John Key’s casual dismissal of the petition, and the nearly 400,000 New Zealanders who signed it,  was not a “good look”. It spoke volumes of Key’s persona; his arrogance; and his pettiness.

He could just as easily have accepted the petition as part of the democratic process and congratulated New Zealanders for   participating. It would have made him look statesmanlike; stand above petty politics; and increased his mana.

Being derisive; suggesting that the signatures were from “children and tourists”;  was offensive.

It was unnecessary and uncalled for.

It was childish.

It publicly revealed John Key’s innermost insecurities – as he knows that the people are not with him on this issue. It must be a debilitating, depressing feeling, knowing that three million New Zealanders are angrily opposed to what Key and his cronies are up to.

“Where is the love”, he may well ask?

“Where is the respect”, we ask him.

An open message to John Key…

The Prime Minister insists he has a “mandate” to part-privatise our state assets.

I disagree. More people voted for Parties opposing state asset sales than voted for Parties endorsing said sales.

John Key has a one seat “majority”, due in part to manipulations during the 2011 election, and MMP rules that prevented some Parties from gaining representation in the House.  For example, the Conservative Party won twice as many votes as ACT – but gained no seats. (see: Mandates & Majorities)

That’s not a mandate, Mr Prime Minister – that’s an accident of circumstances.

Mr Key – if you truly insist that you have a mandate, then put it to the test. Hold off on the sharefloat for Mighty River Power. Let the people have their say in a referendum.

I, for one, will accept the verdict of a referendum, whatever the outcome. If the majority – even the slimmest margin over 50% – support your asset sale programme, you’ll not hear one more word from me on this issue ever again.

Are you willing to  put your “mandate” to the test, Mr Prime Minister?

Are you willing to listen to, and abide by, the will of the People?

I am.

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Additional

Radio NZ: Petitioners confident of asset sale referendum

Dominion Post: Government to ignore asset sales referendum

NZ Herald: Asset sales petition arrives at Parliament

TV3: PHOTOS: Asset sales petition presented

TVNZ: Petition against SOE sales delivered to Parliament

Newstalk ZB: Opposition MPs greet anti-asset sales petition

Copyright (c)  Notice

All images are freely available to be used, with following provisos,

  • Use must be for non-commercial purposes.
  • At all times, images must be used only in context, and not to denigrate individuals.
  • Acknowledgement of source is requested.

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= fs =

392,000 New Zealanders send a clear message to John Key – Part Tahi

12 March 2013 3 comments

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NZ, Wellington, 12 March 2013 – Another beautiful sunny day with blue skies  (apologies to farmers) was a perfect setting this afternoon in Wellington, when a couple of hundred marchers arrived on Parliament’s grounds, bearing 68 boxes, containing 392,000 signatures.

The referendum requires 304,000 valid signatures to precipitate a nationwide referendum. The 392,000 signatures gives a 22% ‘buffer’ against invalid signatures; people not on the electoral roll; duplicate signatures; and malicious attempts to undermine the petition.

There was a small number of people on Parliament’s grounds  awaiting the march, amongst them tino rangatiratanga activists, Brenda and Fran,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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At about 1pm, marchers arrived, bearing the boxes that contained a priceless treasure – signatures of 392,000 New Zealanders. Media flocked around them. This was an historical event,

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12-march-2013-presentation-of-anti-asset-sales-petition-parliament-referendum

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They walked onto Parliament’s grounds to cheers and applause of those waiting,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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On the steps to Parliament, more media and elected representatives from Opposition Parties were waiting. (Curiously, none from National, ACT, or United Future were in attendance. Their ‘invites’ must’ve been lost in the post?)

Politicians clapped as the marchers approached. Men, women, young, old, Maori, Pakeha, these were New Zealanders who believed that the People’s Assets were not to be stripped and flogged off by a handful of politicians,

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12-march-2013-presentation-of-anti-asset-sales-petition-parliament-referendum

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Sixty eight marchers proudly carried a prized box each,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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The boxes were carefully passed over a security barricade, to be stacked on the Parliamentary forecourt,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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Meanwwhile, the crowd watched, as the stacking of boxes progressed,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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The leadership of the Green and Labour Parties,  with Brendan Horan (far left, standing beside Metiria Turei); former AUSA President, Arena Williams (standing beside David Shearer); Grey Power National President, Mr Roy Reid; Annette King; and (far right – no slur intended, Mr Conway) CTU Economist and Director of Policy, Peter Conway .

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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Mana Party leader, Hone Harawira, joined the Party leaders shortly afterward (NZ First lreader, Winston Peters was standing off-camera, to the left),

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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NZ First leader, Winston Peters, being interviewed by a MSM journalist,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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A panoramic view of part of the assembled crowd,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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Green MP, Jan Logie; NZ First leader, Winston Peters, and NZ First MP, Andrew Williams, at the stacked petition boxes. At this point, the  invited guest-speakers were preparing themselves – and  their notes – to address the crowd and media,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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With a  unique style and flair she has become reknowned for, Moana Maniapoto Jackson welcomed people to today’s presentation of the petition,

“We are celebrating people power…”

Coaching the crowd, to chime in with “Ohhhh yeahhhh” as the chorus, Ms Maniapoto Jackson launched into a short protest-style song. Her powerful voice belted out the words, making her microphone and speakers practically redundant, as she filled Parliament with her lyrical sounds,

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Frank Macskasy   Frankly Speaking  blog  fmacskasy.wordpress.com  12 March 2013 - presentation of anti-asset sales petition - parliament - referendum

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“Hey, hey Mr John Key,

You say you’ve the mandate
We’re here to help,
it’s not too late,
People here are standing strong
a hundred thousand – can’t be wrong
We’re here to help you get back on track,
Let’s stop the sales,
Let’s pull it back.

Crowd’s chorus, Ohhhhh Yeahhhhh!

All together now!

OHHHHH YEAHHHH!”

Ms Maniapoto Jackson then welcomed the first of “a long line of luminaries, that are positively glowing with energy and excitement as we deliver to the government a very strong call from New Zealanders.”

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To be continued at: 392,000 New Zealanders send a clear message to John Key – Part Rua

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Additional

Radio NZ: Petitioners confident of asset sale referendum

Dominion Post: Government to ignore asset sales referendum

NZ Herald: Asset sales petition arrives at Parliament

TV3: PHOTOS: Asset sales petition presented

TVNZ: Petition against SOE sales delivered to Parliament

Newstalk ZB: Opposition MPs greet anti-asset sales petition

Copyright (c)  Notice

All images are freely available to be used, with following provisos,

  • Use must be for non-commercial purposes.
  • At all times, images must be used only in context, and not to denigrate individuals.
  • Acknowledgement of source is requested.

.

.

= fs =

Labour, Greens, NZ First, & Mana – A Bright Idea with electricity!

10 March 2013 15 comments

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What?

A part of me is mightily pissed off at Labour.

Like, really ticked off.

From 2000 to 2008, they had ample opportunity to safeguard state assets and remove them from any prospect of privatisation by ideologically-driven,  rightwing elements in our political system.

But perhaps, I suspect that most folk – including the Left –  had believed that privatisation had been abandoned by National as an  ideological dead-end experiment, leading nowhere except eventual foreign ownership and profits remitted to offshore investors. Which, as a consequence, worsened our already shabby Balance of Payments deficit.

More importantly, we had every right to expect that National believed that asset sales would be a sure-fire way of losing an election.

However, someone – some bright, zealous, political strategist working in some back-room somewhere – must’ve come across a “cunning plan” to make asset sales palatable to at least half the voters.

That’s all the Nats needed; 50% of voters.

Why?

To pay for tax cuts in 2009 and 2010. Those tax cuts dug a $2 billion-plus hole in government revenue (see:  Govt’s 2010 tax cuts costing $2 billion and counting, see: Outlook slashes tax-take by $8b). The shortfall could only be made up by borrowing more – or selling something. National opted for the latter.

How?

Post 2011 Election,  has demonstrated that National has not changed it’s free-market stripes. Given an opportunity, they would hock off as much of the country as possible. For “the good of the nation”, you understand.

At the 2011 election, National were handed that opportunity, on a gold plate*,  by a voting public who seemed to be distracted by smoking magic mushrooms. Whilst voters expressed disdain at National’s privatisation – they voted National regardless.

(Call me old fashioned, but I tend not to vote for things I disagree with.)

Go figure.

Note that I said “they voted National” – they didn’t vote for National. It may seem as if I’m splitting hairs on a molecular level – but bear with me.

Consider the facts;

  • 1. In 2011, National won 1,058,638 votes – or 47.31% of votes cast. That gave them 59 seats.
  • 2. The 2011 election was the lowest voter turn-out (74.21%) since 1887.
  • 3. Whilst Labour’s vote dropped from 2008 to 2011, overall the anti-asset sale bloc gained more popular votes in 2011 than the pro-sale bloc,
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

* Whilst the Conservative gained no seats in Parliament (because of the 5% threshold), their numbers are included because they gained over double the electoral-support for ACT.

In effect, Key could claim an mythical “mandate” simply because the MMP rules in 2011 gave ACT a seat, but no representation for the Conservatives – even though support for the latter was double that of ACT.

  • 4. Voting patterns are reflected in polls which consistantly show public opinion opposed to asset sales. Generally, the figure is around two thirds opposed and less than a third supporting. (see: Most of us oppose selling NZ)

In fact, this blogger cannot find any reputable poll favouring National’s privatisation programme.

However, the harsh reality is that, for politicians, unless faced by a populist revolt and tens of thousands taking to the streets (see: Huge protest says no to mining on conservation land) , the only numbers that really count are bums-on-seats. Parliamentary seats.

Political machinations in Epsom and Ohariu gave Key the two seat Parliamentary majority he needed, and that’s what counts as a “mandate”. For the Nats, that’s the end-of-story.

Who?

As Dear Leader has oft been quoted,

 “On the mixed-ownership model debate, the Government has been very clear about its intentions since well before the 2011 election.” – John Key, 24 June 2012 (see: Most of us oppose selling NZ)

Thus far, 200,000 have pre-registered (see: Mighty River pre-registrations top 200,000) – which, whilst a sizeable number, is still only around five percent of those who voted for National in 2011. And I suspect many are pre-registering for a variety of reasons,

  • self interested naked greed
  • a desire to keep shares in local hands
  • and a few bogus pre-registrations to subvert the process (a surreptitiously organised covert resistance? You might say that, but  I couldn’t possibly comment)

The 200,000 pre-reguistrations is still dwarfed by signaturies to the petition, which is fast approaching 400,000 (see: Asset sales referendum likely)

So, did all 1,058,638 voters  who voted National in 2011 also endorse asset sales, either in whole or partial?

The answer is a clear no.  In a poll just over a year ago (see:  Poll shows asset sales unpopular), around 32% – about one third – of National supporters disapproved of asset sales.

That’s 338,764 voters who opposed asset sales who ticked the box for National in 2011, despite knowing full well that Key was promising partial floats on Meridian, Genesis, Mighty River Power, Solid Energy (now in doubt), and a further sell-down of Air New Zealand.

338,764 people who voted for something they didn’t want.

As Marcus Lush said on Radiolive on 28 February this year (2013),

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Why would anyone vote National and be opposed to asset sales -  28 February 2013 -  Radiolive - Marcus Lush

[click on image to access Radiolive link]

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Good question.

The answer, I think, can be distilled  down into two categories of voters.

  1. The first group simply either didn’t taken notice of  the asset sales campaign, or, more likely did not believe that Key would go ahead with the policy. They may even have thought that Key’s coalition ally(ies), United Future and/or the Maori Party, would stop the sales from proceeding. There was a kind of  “in denial” mentality going on here.
  2. The second group is perhaps more complex. Whilst they don’t support asset sales per se, they perhaps believed National Party rhetoric that shares would remain in New Zealand hands. Considering the consequences of Contact Energy’s privatisation – where the majority of shares are now in Australian hands – this would seem to be a forlorn hope.

Having spoken with National Party voters belonging to Group 1, I believe that asset sales will impact to varying degrees on National’s support at the next election. Having woken up to the fact that Key has no intention of backing away from  sales,  there are 300,000 National voters who may think twice before voting National again.

Expect National to drop in the next few polls following the sale of Mighty River Power.

However, unless something totally unanticipated happens between now and May, the partial sale of Mighty River Power will probably proceed. Followed by Genesis and Meridian. Followed by hefty power price increases if past history is anything to go by.

Where (to from here?)

NZ First’s Winston Peters has promised that any government he is part of will buy back state assets. (Which, by the way, if he’s not telling lies, means that any coalition deal with the Nats is off the table. I’m not holding my breath on this. The 1996 election is still fresh in my mind.)

On 4 March this year (2013), Peters announced,

“New Zealand First will use its influence on the next coalition Government to buy back our state-owned power companies which are being flogged off by National and we are committed to buying back the shares at no greater price than paid by the first purchaser.”

Source: One More Quisling Moment from Key

This is do-able. Especially if NZ Superannuation funds are used, which would not impact or have any bearing on a new Government’s books.

By announcing that the shares would be re-purchased  “at no greater price than paid by the first purchaser” – Peters is effectively putting all purchasers on notice: expect to incur a loss if you buy into National’s thieving (and let’s be clear – selling goods that don’t belong to you is theft) programme.

And a year earlier, in March 2012, Hone Harawira had promised the same in an open letter to investors,

“So today I think it only proper to send a warning to overseas investors – steer clear of any share offer in the above SOE’s. The purchase of these shares is likely to see you caught up in legal battles and direct action from citizens determined to protect their own interests, both of which will be lengthy and costly and have an adverse impact on the value of your investment.

As the leader of the MANA Movement and Member of the New Zealand House of Representatives, I wish to advise that MANA is opposed to the privatisation of state assets and will strongly argue for any shares sold to overseas investors to be returned to New Zealand hands.”

Source: Hone Harawira: Open letter to overseas investors

By contrast, in an attempt to appear “fiscally responsible” to Middle Class voters, Labour and the Greens were luke-warm, at best.

Green co-leader, Russel Norman said,

“We just can’t make the promise that Winston is making. We will do whatever we can, but it is two years away, the books are getting into a terrible mess because of National, and closer to the time we will make an announcement but at the moment we can’t.”

Source: Peters: Use super funds to buy back state assets

And Labour’s Clayton Cosgrove effectively went, ‘ditto’,

“… I can’t commit to an open-ended fiscal envelope. That would be fiscally irresponsible in my view.”

Source: IBID

Which is all pretty timid stuff.

This, my fellow New Zealanders, is why the Centre-Left lost the 2011 Election: no boldness in vision; no measurable difference to the Nats; and no unshakeable courage of  their/our convictions.

All that Labour and the Greens  said was “no” to asset sales.

And when Cunliffe suggested that a future Labour-led government would re-nationalise these SOEs – he was firmly slapped down by his Party.

On 4 December 2011,

I don’t stand for a paler shade of blue, and I want to look down the barrel and say this: if the Government is going to sell off precious state assets then we would not rule out re-nationalising some of them. And people need to be aware of that regulatory risk.”

When asked by host Guyon Espiner whether he would buy them back, Mr Cunliffe replied “we would look very hard [at buying them back].” Source

On 5 December 2011,

Labour leadership aspirant David Cunliffe has moved to clarify his position on the buyback of state assets.

He believed comments he made in a weekend interview, where he didn’t rule out buying back partially privatised SOE’s, had been misinterpreted.

Mr Cunliffe said it was not an explicit promise to buy back all shareholdings National may sell. Source

That’s not “manning the barricades” stuff – that’s an open retreat in the face of a remorseless enemy.

Which, in turn, emboldened National to openly mock and taunt the Labour Opposition, seven months later,

Hon BILL ENGLISH (Deputy Prime Minister) : I move, That the House take note of miscellaneous business. We are still waiting, this week, for the Labour Party to commit to buying back the shares of the 49 percent of the energy companies that the Government is planning to sell, mainly to New Zealanders. New Zealand First has made that undertaking. New Zealand First has shown that the Labour Party has persuaded New Zealand First that its arguments are so strong, New Zealand First should go and buy them back if it has a role in a future Government. But the Labour Party has not been able to persuade itself. Labour members have been in the Chamber arguing, hour after hour, day after day, week after week, that these proposed share offers are fiscally irresponsible, economic nonsense, and a sell-out to foreigners, but they are not so fiscally irresponsible that they are going to buy them back. They are not such a sell-out to foreigners that they are going to buy them back. They are not such an economic nonsense that they are going to buy them back.” – Source

At a time when Labour should be tearing strips of National and setting their own counter-agenda – we’re getting precious little of that. Instead, the agenda is being set by Key and his cronies with bugger-all opposition. The Greens and NZ First have scored more ‘hits’ against the Nats than Labour.

On top of that, the Greens have become the “go to” opposition Party, for criticism of National policies. If you doubt me, check out the next 6pm TV news bulletin. Which opposition party spokesperson is interviewed? Keep tabs over a few night. You’ll quickly see what I mean.

So, what options does Labour have?

It has two options;

  1. Carry on with a conservative course. There is a 50/50 chance it will lead the next government, with perhaps a one or two seat majority, consisting of Labour/Greens/Mana/NZ first.
  2. Strike out with a strategy of  aggressive and bold announcements of initiatives. Announce;
  • radical policies that are a departure from neo-liberalism and declare that the Great Neo-liberal Experiment is dead; “we come to bury the bastard, not praise him”.
  • focus on the message that the 30 year experiment in neo-liberalism has failed utterly, and is one reason we’re driving our young people to Australia
  • a policy that all state assets will be re-purchased at cost-price (as a coalition deal with NZ First)
  • a list of National policies that will be ruthlessly  reviewed and dumped (eg, the Hobbit Law)
  • a focus on job creation; attacking the root causes of child poverty; and a committment for decent housing for all New Zealanders
  • a full review of the tax system, with a plan to reduce (or eliminate gst) and replaced with a comprehensive Capital Gains Tax; Financial Transactions Tax; and other non-income related taxes
  • Comprehensive food-in-schools programmes
  • looking at how our Scandinavian and Nordic cuzzies are running their economies/societies
  • cheaper education for our kids
  • a conversation with New Zealanders as to what kind of society we want to live in – and are we willing to pay for it and set goals to achieve it?
  • etc, etc.

As part of Option 2, I have one further Bright Idea…

A Libertarian acquaintaince and I were chatting one evening at  ‘Backbenches’ (prior to it catching fire – and no, our conversation wasn’t that heated) . We were talking about the three state owned power companies.

He asked me; why should there be  three state owned companies; all producing the same service; at roughly the same costs and prices – have three sets of management; CEOs; offices; accounting systems; staff; etc? Wouldn’t  it make more sense to combine the three and pass the savings onto consumers?

Damn it, he was right. What is the point of having three state owned electricity companies?

One could do the same job – and cheaper.

Just as we had the old ECNZ, prior to Max Bradford’s so-called “reforms” in the late 1990s. At the time, Mr Bradford promised cheaper electricity through competition. Instead, power prices have doubled sinced the start of the century. (see: The 30-year power price hike , see: Power prices over decade)

“Ministry of Economic Development (MED) statistics show average power prices rose from 13.9 cents per kilowatt-hour on average in May 2001 to 26 cents in May 2011.” Source

The problem is not just to re-nationalise our electricity companies.

The next problem is what do we do with them?

How do we make them socially responsive to domestic consumers as well as  efficient?

Do we re-combine Mighty River Power, Genesis, and Meridian back into one single unit, a new ECNZ?

Do we ensure that there are Board members elected to a new ECNZ whose constituents are domestic users? Perhaps any such Board should have directly-elected  representation?

Do we entrench a new, state owned ECNZ in legislation so it’s future is protected from predatory governments seeking either maximum returns (ie, price gouging) or to privatise it?

Could a new ECNZ afford to offer each domestic household their first 300kwh per month, free,  as has been suggested by Victoria University researcher, Geoff Bertram? (see: Call for free power )

These are the issues which the Opposition should be focused on.

And thus far, we’ve not heard much from them.

If  Labour-Greens-NZ First are serious about being an alternative government, then by the gods, they should be serious about giving us that alternative.

Conclusion

When National started campaigning in the 2008 election, it began two years in advance with a series of  aggressive policies. It was acting like a Government-in-Waiting.

By contrast, Labour and the other parties are an Opposition-in-Waiting.   They are timidly watching and waiting for the public love affair with Key to wear off, and for National to f**k up.

Well, news flash guys.  That doesn’t seem to be working too well. The Nats have been excoriated with scandal after scandal last year and this year; unemployment rising; Mainzeal and Solid Energy collapsing – and the Nats are still high in the polls?!

My message to Labour, Greens, NZ first, and Mana;

If you want the voting public to take notice of you, you have to give them something that’ll make them notice you.

Be bold.

Be aggressive.

Offer alternatives.

Offer practical solutions.

Give the public a vision.

And at all times, work together.

If you don’t give the public an alternative, why should they look away from National?

Give the people of New Zealand an alternative, better way of living – and they will look at you.

But not until then.

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(* Plate will soon be auctioned on Trademe.)

Previous Blogposts

Politics through a crystal ball, palmistry, or chicken entrails?

History Lesson – Tahi – Electricity Sector “reforms”

Additional

Power prices over decade

The 30-year power price hike

Call for free power

Cunliffe: buy back any sold assets

Cunliffe not promising to buy back assets

Parliament: Hansards – Wednesday, 20 June 2012, Bill English on Asset Sales

More heat in power struggle as prices go up

Government in $112b barney over accounting

Electricity prices tipped to rise steeply

Heavy traffic hits Mighty River Power share site

One More Quisling Moment from Key

Other blogs

MANA threaten overseas investors not to buy assets – Bloomberg pick up on the story

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How to sabotage the asset sales…

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Something I blogged on 25 June 2012, and now more appropriate than ever…

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On last weekends’ (23/24 June 2012) “The Nation“,  the issue of asset sales was discussed with   NZ First leader, Winston Peters; Green Party MP, Gareth Hughes; and Labour MP, Clayton Cosgrove,

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Source

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Whilst all three parties are staunchly opposed to state asset sales, NZ First leader, Winston Peters went one step further,  promising that his Party would buy back the assets.

Gareth Hughes and Clayton Cosgrove were luke-warm on the idea, quite rightly stating that there were simply too many variables involved in committing to a buy-back two and a half years out from the next election. (And Peters never followed through on his election pledge in 1996 to buy back NZ Forestry – “to hand back the envelope”, as he put it –  after National had privatised it.) There was simply no way of knowing what state National would leave the economy.

Considering National’s tragically incompetant economic mismanagement thus far, the outlook for New Zealand is not good. We can look forward to more of the usual,

  • More migration to Australia
  • More low growth
  • More high unemployment
  • More deficits
  • More skewed taxation/investment policies
  • Still more deficits
  • More cuts to state services
  • And did I mention more deficits?

By 2014, National will have frittered away most (if not all) of the proceeds from the sale of Meridian, Genesis, Mighty River Power, Solid Energy, and Air New Zealand.

In such an environment, it is difficult to sound plausible when promising to buy back multi-billion dollar corporations.

Not to be thwarted, Peters replied to a question by Rachel Smalley, stating adamantly,

The market needs to know that Winston Peters and a future government is going to take back  those assets. By that I mean pay no greater price than their first offering price. This is, if they transfer to seven or eight people, it doesn’t matter, we’ll pay the first price or less.

Bold words.

It remains to be seen if Peters will carry out that threat – especially if a number of his shareholders are retired Kiwi superannuitants?

When further questioned by Rachel Smalley, Peters offered specific  ideas how a buy-back might be funded,

Why can’t we borrow from the super fund, for example? And pay that back over time?  And why can’t we borrow from Kiwisaver  for example, and pay that back over time…”

The answer is that governments are sovereign and can make whatever laws they deem fit. That includes buying back assets at market value; at original sale price; or simple expropriation without  compensation. (The latter would probably be unacceptable to 99% of New Zealanders and would play havoc with our economy.)

Peters is correct; funding per se is not an issue. In fact, money could be borrowed from any number of sources, including overseas lenders. The gains from all five SOEs – especially the power companies – would outweigh the cost of any borrowings.

Eg,

  1. Cost of borrowing from overseas: 2% interest
  2. Returns from SOEs: 17%
  3. Profit to NZ: 15%

We make on the deal.

The question is, can an incoming Labour-Green-NZ First-Mana government accomplish such a plan?

Should such a  radical policy be presented to the public at an election, the National Party would go into Warp Drive with a mass  panic-attack.

But it’s not National that would be panicked.

It would be National going hard-out to panic the public.

National’s scare-campaign would promise the voters economic collapse;  investors deserting the country; a crashed share-market; cows drying up; a plague of locusts; the Waikato River turning to blood; hordes of zombie-dead rising up…

And as we all know, most low-information voters are highly susceptible to such fear-campaigns. The result would be predictable:

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But let’s try that again…

A more plausible scenario would have the leadership of Labour, NZ First, the Greens, and Mana, meeting at a secluded retreat for a high-level,  cross-party strategy conference.

At the conclusion of said conference, the Leaders emerge, with an “understanding”, of recognising each others’ differing policies,

  1. Winston Peters presents a plan to the public, promoting NZF policy to buy-back  the five SOEs. As per his  original proposals, all shares will be repurchased at original offer-price.
  2. The  Mana Party  buy-in  to NZ First’s plan and pledge their support.
  3. Labour and the Greens release the joint-Party declaration stating that  whilst they do not pledge support to NZ First/Mana’s proposal – neither do they discount it. At this point, say Labour and the Greens, all options are on the table.

That scenario creates considerable  uncertainty and anxiety  in the minds of potential share-purchasers. Whilst they know that they will be recompensed in any buy-back scheme – they are effectively stymied in on-selling the shares for gain. Because no new investor  in their right mind would want to buy  shares that (a) probably no one else will want to buy and (b) once the buy-back begins, they would lose out.

Eg; Peter buys 1,000 shares at original offer price of $2 per share. Cost to Peter: $2,000.

Peter then on-sells shares to Paul at $2.50 per share.  Cost to Paul: $2,500. Profit to Peter: $500.

Paul then cannot on-sell his shares – no one else is buying. Once elected, a new centre-left government implements a buy back of shares at original offer-price @ $2 per share. Price paid to Paul: $2,000. Loss to Paul: $500.

Such a strategy is high-stakes politics at it’s riskiest.   Even if Labour and the Greens do not commit to a specific buy-back plan, and “left their options open” –  would the public wear it?

The certainty in any such grand strategy is that the asset sale would be effectively sabotaged. No individual or corporate buyer would want to become involved in this kind of uncertainty.

Of less certainty is how the public would perceive  a situation (even if Labour and the Greens remained staunchly adamant that they were not committed to any buy-back plan) of political Parties engaging in such a deliberate  scheme of de-stabilisation of a current government’s policies.

The asset sales programme would most likely fail, for sure.

But at what cost? Labour and the centre-left losing the next election?

We may well end up winning the war to save our SOEs – but end up a casualty of the battle.

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Related Blog posts

Peter Dunne says

Campaign: Flood the Beehive!

Additional

Asset sales remain unpopular for NZers

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Wellingtonians rally to send a message to the Beehive! (part toru)

17 February 2013 3 comments

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SOEs

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Continued from:

 

Wellingtonians rally to send a message to the Beehive! (part rua)

 

NZ, Wellington, 13 February 2013 – At this point, there was some light entertainment – firstly from this chap,

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“John Key” – first tried to convince the crowd that he’s really a “nice guy”.  The response from the crowd was anything but ‘understanding’.

“John Key” then sang his now-famous version of the New Zealand anthem, which he said was now “partially privatised” – so minus every third or fourth word. Thwe song made bugger-all sense – much like asset sales themselves.

The anthem was missing the last line, which he said, had been “sold in it’s entirety, including the word ‘New Zealand’.

After “John Key” was ‘helped’ off the stage with accompanying boos and cat-calls, Energy campaigner, Molly Melhuish took the microphone.

Ms Melhuish spoke for Greypower. Like Geoff Bertram, she is also deeply knowledgeable about all facets of the energy industry, including pricing systems used for residential, commercial, and industrial sectors.

As always, listeners leave a talk by Ms Melhuish with a greater knowledge and insights into the electricity industry in our country,

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Ms Melhuish first explained a bit of the background of the  “Keep our Assets” campaign,

“… Greypower was essentially asked to front this campaign, and we said at the first strategic meeting of the ‘Keep our Assets’ campaign that we wanted to co-front it with the youth, so we found a youth group, it was the University Students Association.

Because we believe this campaign is about those older people. Surprisingly many of our members were involved in building those assets. We said they’re ours, we want to keep them.

But we speak to our grand-children and our grand-children recognise… they just don’t want them sold. So the Greypower group board as a group, supported this ‘Keep our Assets’ campaign, all seven zones.

There are a small number of individuals in our meetings who really believed John Key when he said ‘we have to sell the assets so we can  re-pay the debts’. Geoff [Bertram] told you how wrong that is, but people are conservative,  want to be safe, and many, or most of the people who still say ‘we have to sell the asssets’ do so because they believed [John Key]. John Key is a show pony, he’s… telling the story told to him by others. He’s  a used car salesman. Would you buy a used car off that guy? I wouldn’t.”

“…Just yesterday afternoon, I spoke to Mana Tawa… The very very first question I asked was ‘Why can’t we have solar power on our houses? Our family in the U.K., you know, they got money to put photo-voltaics [on our roofs] and they were able to pay it off on our power bills. She said, ‘Why can’t we have that?”

We could, but we have to vote for it.

We won’t under this administration.

Another one  said, when I bought my place in a retuirement village in Porirua, we were promised lower bills. We are now paying more for our little retirement village than I paid for a four bedroom house.

So you get a captive consumer and they  can hike power bills not twice, but four times!

Greypower now has a policy that says energy leglislation must say [that] all household energy and especially electricity must be provided in a manner that’s fair, sustainable, efficient, and reliable. That was the law in 2001- Labour changed the law to make that. [But] National government took away “fair and sustainable” [from legislation]. That is wrong.

What to do about it? Change the government!

The only way you will get a change is to change the government! Vote for it! Peter Love told you that  in the first speech; vote for change. Greypower sez vote for change. That’s your job – We Greypower can support it but it is your job to vote for change.”

And she’s right. The only way we can effect change is by the ballot in the Voting Booth. Deciding not to vote because of some half-arsed cliche about “all politicians being the same”  is defeatist garbage. It is  craven surrender to forces who welcome people giving away their vote because vested interests have persuaded you that “change is not possible”.

Change is possible. But not when cynicism guides your decisions.

Molly Melhuish was followed by Aotearoa Not For Sale activist, Frances, who spoke of her own ‘journey’ to  set aside her apathy and become active. Despite English being a second language from Frances, her words were truly inspiring. A million New Zealanders like her, and no government would dare risk selling our treasures,

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Frances first described the desperate conditions that afflict the poor or unemployed in other countries, where social welfare services barely exist, or not at all. She referred to the shame of someone loosing their job, and killing themselves and their entire family by mass-suicide – because the provisions that we often take for granted (or that right-wingers complain about), do not exist in their society.

“…I saw this country as a country so beautiful and with a humanity and the government with a heart [?] to looking after the poor and the under-privileged and  the vulnerable groups. But throught the years I don’t know what has happened, I was too busy looking after kids, young children, and being someone who didn’t speak very good english. I sort of stayed low and keeped quiet and don’t want to say much about nothing against   government. Although I do complain a lot at home if I say something, I see the government doesn’t do something nice to people.

But then I accidently walked through a public meeting … beginning of last  year and then that was about state asset sale. And I was so shocked about what ‘s going to happen. And I thought, well,  for the last 15 years my shower time from … ten minutes down to three minutes, because we need to have a budget for our power because the power bill kept going up.And then I cut my hair short so I don’t have to spend so much time [in the shower]. So all these things, and  I decided maybe this year I will not harass my kids to have a showers if they don’t want to because it’s just getting more and more expensive.

There might be more stinky people around the city.

And hey, we are from middle income family, and during the winter time we fight often … argue with my husband about whether we should have the heater on. And I just never thought  will  come to this day!

And now they’re going to privatise these companies and  sell to all those rich, only going to benefit the very rich few. Especially some foreign companies. And I was like,  that’s not right, I can’t afford to pay even higher bills.”

And I thought, what happened? … From me not paying attention to politics. I actually don’t like politics. I  want to just appreciate art and literature, but then from me not doing anything for so many years, what has this country become? Because a lot of people are like like me, they don’t like politics. They don’t want to take action; “I often give them moral support, I’ll  give you some  dollars, but you do the work. You go against the government.”

But then this time I realised what example I was setting for my children…

… But I feel great because I work with so many dedicated people and so many beautiful people, and  selfless. And they are wonderful. We are all trying to make this country a better place for us, for others,  for our children.

And for middle income like us, we struggle, and I just hate to think how the low income, how the  beneficiary actually survive. And this government keep taking things away from the general  public, from the  weaker and from the vulnerable group. …

… Being a housewife, what can I do? I go out to collect signatures because that’s  easy thing for me to do. It takes a lot and time and a lot of effort, but I’m glad I can make  contribution. And I feel everybody here can make contribution…

… And being at home I can teach my kids, say, well don’t believe everything you heard from the media. And don’t just listen to what people say, you watch what they do. Especially our Prime Minister.

Frances finished with these thoughts,

“We can all make a difference… I saw so many people on the street. Some  are angry but most  of them are so depressed because they think government will never listen, and they think what we are doing going to be  in vain, just not going to change anything.  And I say to them, I say, if you don’t make any noise for this, what do you think government are going do to us next?

I want to set  example to my children to say, if you really believe, and you have to believe, you can make a difference, you can change something. You just take actions and do whatever you can….

… But  we have to still have to pressure the government, we want our referendum now, not later!

… One day when my kids ask me ‘mum have you done anything to protect us from being attacked by our government’ then I can say, I have done something. And I hope we can all say that, say  we have done something to protect you from bad government policies.”

Amen to that, Frances.

Frances struggled at times with the English language  – but the message she gave was as clear and meaningful as words could possibly convey.

This blogger found her to be truly inspirational.

As clouds darkened the evening sky, and the southerly ‘breeze’ gave a ‘bite’ to the assembled crowd, there was final entertainment from Steve and  John,

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And finally, a rousing applause given to Richard, who shouldered much of the responsibility in organising the event,

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Meanwhile, further down the waterfront, others were more comfortable with their boutique beers and frothy lattes,

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Want to help?

Make a donation (any size) to: BNZ, 02-0560-0158770-00

Volunteer by contacting: saynotoassetsales@gmail.com

Go to: any of the Relevant orgs listed below.

Additional

TV3: Asset sales referendum likely (6 Feb 2013)

TV3: Govt under fire over Contact redundancies (14 Feb 2013)

NBR: Supreme Court to ignore govt deadline on water rights decision (15 Feb 2013)

Youtube: Say No to Asset sales in Aotearoa NZ.mov

Copyright (c)  Notice

All images are freely available to be used, with following provisos,

  •     Use must be for non-commercial purposes.
  •     At all times, images must be used only in context, and not to denigrate individuals.
  •     Acknowledgement of source is requested.

Relevant orgs

It’s Our Future

Keep our Assets

Aotearoa is not for Sale

Aotearoa is Not for Sale | Facebook

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Wellingtonians rally to send a message to the Beehive! (part rua)

17 February 2013 7 comments

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Continued from:

 

Wellingtonians rally to send a message to the Beehive! (part tahi)

 

NZ, Wellington, 13 February 2013 – The first speaker was Peter Love; Te Atiawa, and Board Member of the Wellington Tenths Trust,

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Peter Love spoke of having to buy a bottle of water from the dairy – and yet Maori were castigated for trying to assert their own water rights. Holding up a plastic bottle of water, he said it’s not about “Maori owning the water”,

We have to make sure you don’t have to go into a dairy to buy this!

He spoke of countries such as China sending their workers into Pacific Island nations to build infra-structure and buildings for the locals, but for a price.  Peter Love spoke of powerful interests  seeking valuable resources  such as the fish in Cook Islands territorial waters.

He said asset sales would be a magnet for overseas investors,

They’re after our assets!”

Which is why“, he said, “we’re all here this evening challenging the government.”

Peter Love finished with a humorous touch,

My wife said, ‘hullo – don’t get arrested Peter...”

He encouraged the crowd,

“…Don’t forget, keep it up. Sign the petition against it. And we may have to call you again to go to Parliament.”

The next speaker was Peter Love’s mokopuna (grandchild), Kaira Ranginui-Love, of Te Atiawa, who spoke directly to the many young people in the crowd,

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Ms Ranginui-Love spoke with deep passion about her feelings for this country, and how others wanted a piece of our paradise,

I love Aotearoa! I don’t know about you but I absolutely love this country. I believe Aotearoa is Heaven on Earth…

… For many of you, Aotearoa has been a home for you and your families since the time of the settlers, and for others.”
 
“… But regardless of how we all got here and what we’re all doing here, I think we can all agree  what connects us is our love for Aotearoa.”

“We are very lucky to live here. We have the oceans, the rivers, the forests, the lands,  and all that dwell therein. So we must look after our country, and be the caretakers, for now and for the future generations to come. We need to be wary that we don’t allow our country to be exploited by those in a position of power. The National government, the National Party, they have an immoral agenda based on monetary gain only…”

“…Is this government listening to our views?”

“I think this govermnment blatantly  ignores it’s people and what they want. What we all want. No thought has gone into the rippling effect that this will have on our futures.”

“…We’ll have no say, and we’ll  have no rights. This referendum will help to stop the government from making a terrible mistake. Remember, everybody wants a slice of our country, our paradise. So it is time to stand up. It is time to fight for this generation and the generations to come….”

“…The time to act is now, before it’s too late.”

Next, the Mayor of Wellington, Celia Wade-Brown – a veteran campaigner against the privatisation of Wellington’s former “Capital Power” company in the 1990s – spoke of her thoughts on selling strategic assets that belong to the people,

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Mayor Wade-Brown welcomed people to the rally and acknowledged the hard work by organisors to set up the rally,

Let’s give the organisors a big round of applause!”

This week there’ve been a number of really important issues raised that resonate with all of us; leadership; jobs; a fair go; and a clean environment; public ownership of strategic assets. Those aren’t alternatives to each other, they go hand in hand.”

The Mayor spoke of Deborah Littman visiting Wellington and talking to Council (see: Mayor pushes to give hundreds a pay increase ) about how a living wage has in helped  many aspects of society in Vancouver and London, by raising incomes,

Low pay doesn’t help the local economy; low pay doesn’t educational failure, and low pay doesn’t help poor health. So the living wage is an idea to inspire us, it’s a journey, not an overnight transformation… … a living wage is good for the local economy.”

Mr Wade Brown referred to a Greenpeace economic report which outlined ambitious ideas for new jobs, new prosperity, and a clean economy. She outlined Greenpeace’s ideas for how huge wealth could be created for New Zealand by building an economy based on 100% renewable energy,  energy efficiency, and sustainable transport.

The mayor went on to describe one of her earliest actions soon after being elected to the City Council in 1994,

I voted in one of the earliest political decisions when I was elected on Council against the sale of Capital Power. And now the energy retail and lines businesses have been split up and sold and sold again  and it’s really impossible to assess what they would  be worth now.

But it could’ve been a huge help to the capital city as a basis for a smart grid, for electricity demand management, and for more manageble bills for people on low incomes. So I understand your concerns about selling of power generation companies.

More successfully, Wellington City Council voted against the sale of our Airport shares. Although one third does not give us control. But it does keep us in the loop and it gives us a considerable dividend that keeps your rates down.

And in the ’90s there were really truly mutterings –  I saw Cr Stephanie Cook here earlier and she’ll back this up – there were muttering about selling of our council social housing. It never did get to a vote, thank goodness... “

Social housing for vulnerable tenants was a social partnership, she said.

Mayor Wade-Brown then described Wellington’s water supply and categorically stated,

The basic public infrastructure should remain in public ownership and the charging policies and the conservation policies should be set democratically.”

She took a good natured ‘dig’ at Peter Love with the remark,

And I would like to add that you don’t need to buy in bottles because there are free water fountains along the waterfront.

Ms Wade-Brown told the audience that Council, in partnership with local Iwi, was bringing back alienated land to return to the Town Belt.

The Mayor added,

So local government faces the same financial pressures as households do, as you do,  as business does, and as central government does. But we’re not going to face those pressures by selling of our strategic assets. We won’t sell social housing, we won’t sell water infrastructure, we won’t sell the reserves that make this capital city so special.”

The mayor implored people to sign the petition – but not ten times,

It doesn’t help to sign it ten times, ok guys? If you’ve signed it, you’ve signed it…
… And tonight people are tweeting, blogging, using Youtube, and everything else to have your say. And that’s my main message; stand up and have your say, in the capital city!

Kia kaha.”

Next up – perhaps the country’s sanest, most common-sense economist – Ganesh Nana, rose to tell it from an economist’s  perspective.

Perhaps surprisingly, he wasn’t tied up and thrown into the harbour. Economists in the last thirty years have had a bad rep – perhaps only second to certain policians.

But Ganesh Nana is a rare breed of economist. He sees through the neo-liberal fantasy world of ideology and tells us that the dogma of the New Right simply does not work as ‘the label on the can’ promised,

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Ganesh Nana started by saying,

I’m an economist, ok, so I promise not to say anything about ‘The Phoenix’ or anything about cats…”

That elicited a laugh from the crowd and then he launched straight into the issue of asset sales and started by asking,

You might ask why would you at all be interested in hearing from an economist, and I ask the same thing; “why is anybody  interested in hearing from an economist given whate total mess we’ve made of the economy to date, but never mind… You guys should really be asking for an apology from the economists given the mess we’ve made...”

“… But I will apologise on my own behalf for not not actually shouting out a lot louder evertime we’ve made a wrong turn. So today here I am shouting out just a bit louder for making a wrong turn yet again.”

The audience warmed quickly to Ganesh Nana’s self-deprecating comments and clapped at his remarks. Only a lone heckler, yelling out comments he must’ve thought were very hilariously witty (mistakenly),  stood apart from the crowd.

Ganesh Nana continued,

From a business perspective; a business person’s perspective;  this is a very, very, very,  simple problem facing us, or a simple question; why would you sell an asset?

I ask you that question and from my own academic perspective or background, when faced with that question  I go to a dictionary and look up the definition of an asset.

It’s really quite simple… … you’ll find some words around something that is valuable and of use. And then I started to think as a business person or as an ordinary person why would I get rid of something that is valuable and of  use?”

He then asked,

“…These assets that the Crown have, [that] the government on our behalf, [as] taxpayers, are holding. Do they continue to be valuable and useful?

And if so why are we getting rid of them?”

… From a business perspective the only reason I’d get of an asset is if it suddenly became a liability.

That is, it required a lot of upkeep and it wasn’t paying it’s way, so it wasn’t really an asset. And then, yes,  you get rid of it fast.

But is anybody seriously trying to tell me that those electricity generation stations, and all the infra-structure around it,  is something that we, as a nation, ‘ain’t gonna’ need for the next 20, 30, 40, 50 years?

Because if the answer to that is ‘yes’, then let’s get rid of it, because we don’t need it. But if we do need them, we need to hold onto them. It’s really quite that simple.”

Ganesh Nana was also adamant that not all economists follow the neo-liberal, monetarist line,

“…People who think that businesses or economists totally agree with getting rid of assets or following the market path, and there are lots of other reasons we could go into which are far too technical to go into tonight, about following the market and about how government shouldn’t be involved in assets; and shouldn’t be involved in the economy – those are smokescreens.

There are quite surprisingly some economists, myself included, who don’t follow that [ideology], and actually go back to the textbook… If it’s an asset, and it’s going to earn something over the future, you hold onto it for dear life. Because that’s what your future relies on!”

Ganesh Nana’s speech was well-received by the crowd. One could sense  that it was a relief for many who were listening,  that not all economists were wide-eyed free-marketeers demanding the dismantling of the State.

Ganesh Nana was followed by Geoff Bertram, Senior Economics lecturer at  Wellington’s Victoria University, and one who had been closely studying the energy sector. Mr Bertram understands the mechanisms by which our energy companies are valued and re-valued – and his simple explanations quickly reveal these valuations as clever, malevolent, rorts.

The same rorts used to drive up power prices on an almost annual basis,

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Now, the government’s aiming to sell off nearly half of some state-owned companies worth about ten billion [dollars], so it’s hoping to get a bit about under half… perhaps $4.5 billion from the sales from anybody prepared to buy the shares that they’re going to issue.

I’m going to talk tonight really about the motivation  that might lie behind those sales, and I personally think it boils down to two things.

The first is the desire of  the Treasury to get the money and run before certain things become very apparent about the way that electricity prices have been set over the last two decades.

And the second reason I think is to close off policy options that might remain open to future governments if the assets remain in full public ownership. Because while the assets are in full public ownership, it is possible to change the way they are managed and change the way that  electricity is supplied…”

Geoff Bertram then made an explosive accusation against the government which, if true, revealed a shocking reason why National is so hell-bent on privatisation of certain state assets,

“… It’s my view that probably the  most important political consequence of the part-privatisation of SOEs is to place private investors in those enterprises  and thereby immunise them against possible future policy that might reduce their value.

And since  I think an important part of an improved government policy would indeed reduce their value, I am opposed to the asset sales…

…The companies have a very high valuation. The reason why they have a very high valuation  is that they have successfully participated in a long-running rort to extract cash from residential electricity consumers by the inexorable driving up of prices of electricity.

That rort, has been possible, because government policy has allowed and has indeed supported the emergeance of a cartel of five, large, vertically-integrated, generator-retailers – three of whom are SOEs  – which have been able to operate without any effective regulation, at the expense of  consumers who were too vulnerable to protect their interests against price hikes.

And if you looked at the tracks of electricity prices over the last 20, 30 years you will have noticed that large industry has protected itself very successfully; commercial electricity buyers have done fine; residential who are the dis-organised, unrepresented, undefended, captive group of customers have seen their prices go up in real terms 100% since 1986.

And the main consequence of the electricity reforms has indeed been that doubling of the cost of electricity to ordinary  households. 

That’s a major cause of energy poverty; it’s been an important part in the growing  inequality of income and wealth in this country; and it’s something that a socially responsible government would,  in my view,  be taking serious action to reverse.”

The audience broke into heavy applause as the implications of Geoff Bertram’s comments sank in.

It is simply extraordinary that none of the media present at the rally that day has reported Geoff Bertram’s amazing – and disturbing – analysis of the energy sector and electricity pricing in New Zealand. Is what he’s saying boring?! Too complicated?! Risking opening a can of worms?!

This should be a prime-time story on TV3’s “Campbell Live” and Radio New Zealand.

Geoff Bertram continued,

“Just to put that doubling of the residential price in context. New Zealand’s pretty much on it’s own in the OECD and if you look at  the figures for other countries around the OECD, from 1986 to the present, the price of electricity to residential consumers  in OECD Europe, in Australia, and in the United Kingdom, is still the same as it was in 1986. In the United States, Japan, and France, prices are down 25% , compared to where they were in 1986, in real terms.  In South Korea they’re down 50%, compared to where they were in 1986.

New Zealand is the only only OECD country that has gone out there and driven up electricity prices 50%. We’re also pretty much the only country that doesn’t have a regulator in place, and where government doesn’t have any particular social policy relating to the pricing of essential services to the public.”

Geoff Bertram then explained what he called “the re-valuation game”, as it applied to electricity pricing in New Zealand,

And here’s how it works.

You take a bunch of assets with a given value, and you look at the existing price, to consumers of the product, and you say “well look, we can get the price up”; so you project  that higher price; you capitalise that; and then if you can get the price up the asset will be worth more; so then you re-value the asset; and then you go and use the higher value of the asset to justify raising the prices, and then you repeat.

And this is the circular process which has been going on in New Zealand now, in electricity, for more than a decade. It is completely legal under New Zealand law.

It is not illegal to profiteer or  to gauge captive customers in this country. [In] very few countries is that true.

And it’s consistant with New Zealand’s generally accepted accounting practice which basically tells you that there’s a rotteness at the core of accounting practices in this country.”

Geoff Betram further described how the ECNZ had sold power stations to the newly formed Mighty River Power, in 1999, at a considerable mark-up. In effect  government sold these power stations to itself and in the process pocketed a huge profit. To pay for those power stations, prices were raised, forcing captive residential consumers to pay more and more for their electricity. He added that we have been,

“…living under a government which for two decades has  become effectively  a corporate predator, in this sector, where once it used to be a social provider.

The applause that followed that statement was louder than before. People were ‘getting’ what Geoff Bertram was telling them. He continued,

Here’s the problem. Electricity was once an essential service provided to households at the lowest price, consistent with covering the industry’s costs. 

Since 1986 the sector has been corporatised and part-privatised, and it’s pricing has been driven by the quest for profit by giant companies that have the market power to gouge their consumers.

As the owner of three of those companies, the New Zealand government has therefore become a predator. And now the Treasury wants to cash in on that rort by selling out half the government’s stake.

What that means in terms of the options for the future for government to turn around and come back from the predator model and return to a social service approach  for energy supply, is being closed off.”

Geoff Bertram suggested that every household in New Zealand could be allocated 300kwh [kilowatt hours] of free power every month, and pay market rates for anything over and over used. He added,

But if you want to deal with energy poverty and get kids out of hospitals with asthma and other respiratory diseases and so on, one of the really good  things that you can do is get cheap energy into New Zealand households and that would be sustainable on the basis of the current government owned assets.

About 300 kwh free. [But if] you sell Mighty River and what’s feasible comes down to 200 [kwh]. You sell Genesis and what’s feasible comes down to 100 [kwh]. You sell Meridian and it’s gone…

What I’m saying is the contract  that supplies the Rio Tinto smelter down at Bluff, the old Comalco contract, is the contract New  Zealand households should have had from the start.

And it still could be done.”

Imagine, every household in the country, receiving a dividend of 300 kwh, each month. The positive benefits for low-income families, in damp, drafty houses, would be incalculable. Coupled with providing free meals in schools for children, it would be a major blow against child poverty in New Zealand.

But not if National get’s it’s way.

A new Labour-Green-NZ First-Mana coalition government must listen to people like Geoff Bertram, Ganesh Nana, et al, if we are to progress forward.

After Geoff Bertram, the crowd was entertained by Maarama Te Kira and Lucky Ngatuere,

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Following on from the entertainment, Jane Kelsey, Law Professor from Auckland University, addressed the Rally. Professor Kelsey is also one of the country’s acknowledged experts on globalisation, and a staunch critic of the TPPA (Trans Pacific Partnership Agreement), which is being negotiated in secrecy and condemned worldwide.

Professor Kelsey has also been the target of some fairly vindictive statements from the NZ Herald (see: Gordon Campbell on the NZ Herald’s attack on Jane Kelsey).

Professor Kelsey started by welcoming old friends to the rally,

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“…It was great to see lots of familiar faces from battles of the past, but it was also great to see so many young people here, because these battles are your battles for the future…

… I congratulate not only the organisor here, but  those who have been running the campaign  in Wellington gainst the asset sales, because it’s been a real inspiration across the country, and I know it’s being watched by people outside the country as well.

Some of those who are here will remember those battles we had in the mid 1980s when we were told that state-owned enterprises were simply a way of creating more efficient ways of keeping assets in  our hands. And we said at the time that it was a lie. And we knew it was a lie and they knew it was a lie. And we proved it was a lie and then they sold them off and then we had to buy them back.

Because as we predicted would happen, when you have private owners, especially private foreign owners, who have no stakes in our future, they will strip the assets. And thats what Bell-Atlantic and Ameritech did with Telecom and that’s what Wisconson Railways  did with the railways, and that’s what the [foreign ]banks that still own our banks, did with the Post Office Savings Bank and the BNZ and the Rural Bank, and so on, and we’ve been there and done that and we know what it means.”

At this point, Professor Kelsey held up a metre-square white board with heavy black lettering on it; ‘SAY NO’. It was a take on Winston Peter’s ‘NO’ sign from the Owen Glenn Donations affair in 2008. (see: Peters denies latest Owen Glenn allegations)  The placard provoked laughter from the crowd who obviously recalled the significance of it.

” They also know that the problem [for the neo-liberals] was that we were able to reverse some of those failed privatisations, and other things that failed. Like when they tried to privatise ACC. Like when they tried to de-regulate the electricity market. … So what they have is a new strategy designed to lock-in and make potentially irreversible the kinds of policies that they want to see rule in the interests of their cronies for the indefinite future.
These particularly  toxic legal products are known as Free Trade and Investment Agreements but they have nothing to do with trade, they’re actually investment protection agreements that make it almost almost impossible for us to be able to do the kinds of reversals of failed privatisations we’ve done in the past. We have a number of those agreements already.

And they are potentially causing some problems.
Some of you will have followed what’s happening with the tobacco companies, and their threats to sue over the introduction of plain-packaging tobacco. What we have now now is a particularly virulent strand of this this toxic disease. It’s known as the Trans Pacific Partnership Agreement, or the TPPA. We have other ways of describing the TPPA – Taking People’s Power Away. Toxic Profiteers Plundering Aotearoa.
What it’s designed to do, in particular in relation to investment, is to say ‘You have to open your doors without restrictions to the rights of foreign investors to be able to buy any of the assets within Aotearoa’.
Now, we already have an open door,  and they’ve already signed away the ability to reverse some of that.

But now they want to raise the thresholds even further, so that our ability to vet foreign owners is effectively taken out of our hands. But worse than that, once the foreign investors own the assets, these agreements give special guarantees to those foreign companies. They give guarantees that we will  not alter our future laws and policies in ways that significantly affect the value or the profitability of their investments.
So once we have – or they have – given away our assets, our ability to do anything to recover them is not only constrained by the kinds of threats that we’ve seen in the past and concerns about ‘crisis’ and ‘investor confidence’ and all of that other bullshit – we have threats from foreign investors under an agreement like the Trans Pacific Partnership Agreement, that they will sue our government not only for the loss of the value of their assets but the for the loss of future profits from those assets.
…It will not be a case that will be brought in our domestic Court. It is a case that will be brought in a secret, off-shore tribunal, where there will be three Arbitrators who would sit on the Hearing who last week were acting for an investor, and this week are acting as a judge in the cases brought before them by an investor. There is no system of  precedent, there is no openess so we can see the documents, or even sit in on the Hearings. There may not even be a publication of their judgement at the end of it!
These kinds of secret offshore tribunals are  so discredited now that many  governments are saying  they won’t agree to deals that allow foreign investors to have those powers.  And the Australians have said in the Trans Pacific Partnership Agreement that they won’t agree to foreign investors having those powers.

Our government – when John Key was first asked about this – said, “Oh, well if the Australians don’t think it’s a good thing, it sounds a little bit off-beam to me, so I suppose we’d go where Australia goes”.

Then his officials officials briefed him and said, “Well, actually Prime Miniter, no, we’re going to agree  to foreign investors having these powers”.
So this Trans Pacific Partnership Agreement is currently being negotiated. They want to try to close off the negotiations in October this year. The negotiations are all taking place in secret. We don’t get to see the final agreement until it’s signed off by the eleven countries negotiating it, which includes the US where the big foreign investors are based.
So, effectively the government is negotiating a Bill of Rights for foreign investors not only to enter and buy up this country, but to be able to threaten us in the future if we try to take back control of what is ours.”

Professor Kelsey invited the crowd to join in the campaign to oppose the TPPA, and pointed out information that was freely available on nearby tables. She warned the crowd,

“Join us in the campaign against the Trans Pacific Partnership Agreement, because so many of the things that we care about – We will not be able to effectively regulate in the future; we will not be be able to take back control of our future; if this agreement is passed. Parliament doesn’t get  an effective say on it. This is an agreement negotiated by the  Cabinet, it can be ratified by the Cabinet; and we have no say until it is a done deal.
We know that the Prime Minister is very good at secret done deals. We know that the Prime Minister is happy to do deals on behalf of his cronies. We know that the Prime Minister is prepared to sell out democracy, sovereignty, and tino rangatiratanga. And if we’re going to take back control of our futures then this agreement is a priority to stop this year, along with the asset sales.”

Professor Keley thanked the audience, who in turn cheered and clapped for her.

Meanwhile, Shane and Ariana (?) held aloft the anti-TPPA banner,

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Next up, Bishop Justin Duckworth – the Anglican Bishop of Wellington. He had some very personal but salient anecdotes to share with us,

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Bishop Duckworth greeted the crowd and started with this story from his own family,

” I was sitting out before and listening to the speakers, who were awesome, and I was suddenly talking to a new friend, I met a new friend, and he was telling me he was a father like I was a father, and we were discussing our children, and I suddenly remember a story that happened between my wife and my teenage boy. Classic conversation went down about domestic chores. And my beautiful wife, Jenny was saying to my boy, “it’s your turn to do the dishes”.

And he sort of said, “No, I did the dishes last night”.

And then she said, “I vacuumed the floor.”

And then he said, “Well, I watered the garden.”

And then she said, “Well, I dropped you to school.”

And it was escalating. Until my wife finally busted what I thought was the argument to end all arguments. And she said this; “I gave birth to you.”

I thought;  that’s it. Argument stopped. How could you argue with that?

My teenage boy had this comeback, “And your generation destroyed the environment for us.”

Good line, eh?

And it’s true isn’t? It’s true that our generation not only did we destroy the global environment, but  we have also instigated the global recession as well. And I think that the issues that we are talking about today about asset sales; the reason why that this issue in particular hits our public so strongly, and we have such a good turnout to this rally, is that because I think it’s at the core of a whole lot of other issues.

And so, as a man of faith, as a follower of Jesus, I just want to tell you what concerns me. And these are questions I have, I haven’t got the answers, but these are just questions.

Around asset sales I have questions  around the lack of regulation already  in place in the assets that we own…

… I heard Geoff speak, and I also read his articles, the reports about his papers a couple of weeks ago.  I am concerned that that it is simply not fair, and not just …”

“If we were to sell our assets how less a control do we have? If we already have such limited control at the moment on the regulation of them, how much more limited will it be in the future?”

My second question I would have is this. Recognising… that the Kai Tiaki of New Zealand is Tangata Whenua’s Maori people, and the wairua of this country, the spirit of this country is held by that Kai Tiaki, by the Maori people. I would have questions around what happens if we start selling our assets overseas, what does that mean for the Kai Tiaki here?

“… Third question would follow on from the Greenpeace speaker [Bunny McDiarmid – no recording of her speech made; blogger’s stuff-up], and that woud be this; What happens to the environment longer term if we lose responsibility and control of our power companies? What guarantees do we have whether actually our environment and our global climate change issues will actually be positively addressed by our country? I think there are huge issues there if we choose to sell our assets.”

Bishop Duckworth then concluded with this sobering anecdote – something personal, yet with global implications in how we treat each other,

“…Those of you who don’t know, my father was born in Burma – in Myanmar. A few years ago I went back with him; never visited before, me and my brother went back to Burma. Took my dad, visited a whole lot of wider family.

Once we were on a temple tour, as you do on these sort of trips. We were touring around these temples, and me and my brother, having a lot of sibling rivalry, we’d constantly compete to see who could get the best bargain for the little knick-knacks. You know that I mean? Those little things you buy constantly. So me and my brother were constantly competing for who could get the best deal  on knick-knacks.

One night we were just finishing another temple tour and this guy sidled up to me and was selling me hand-painted pictures of Burmese countryside. Now I’ve been around long enought to know what you can normally get these pictures for.

Normally you pick these pictures up for about three US dollars.
But I was militant that night. And I thought I’m going to prove once and for all that I can run the biggest, best bargain in the world. So I drilled that fellow down to get the best  bargain I could. And in the end I managed to get four pictures for five US dollars!

…We were getting a lift home, and I was showing the pictures to my brother and saying, “Look, I’ve got the best bargain ever!”

And the driver of our horse and cart leant over and asked, “Hey, um, what’d you pay for those?”

I said, “I paid five US dollars for the four of them”.

He sez, “Ohhh, it must’ve been a bad day.”

I go, “What do you mean?”

“The man musn’t have been able to sell anything that day, so he had to sell his goods at cost price, at least at cost-price,  just to buy rice for his family.”

And suddenly I realised what was just some crazy game, ideological game, for me, was actually  life and death for other people.

And my big questions I have around this issue is this; is this some crazy ideological issue that we’ve been driven  here, or is it actually about everyday people who are struggling, who need jobs, who need security, who need a future, and who need decent power.

And that’s my question.”

Ariana then troduced Maanu Paul, Chairman of the Maori Council, and  who was currently taking the Government to the Supreme Court over water rights. Maanu Paul had some interesting observations, and made a call to action,

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Maanu Paul offered a greeting to the people at the rally, and then began with,

“When I was asked to come and speak, at this,  I asked, “who makes money out of this lot [asset sales] ‘?

And the answer was, we need to raise the consciousness of our nation in respect of our opposition to the sale of assets. The New Zealand Maori Council has had a long history of opposing the sale of our assets, beginning in 1986, when we established Section 9 of the State Owned Enterprises Act, which we said, “nothing in this Act shall be contrary to the Treaty of Waitangi”.

And then we had the lands case in 1987 when we stopped the sale of state owned land. And then we had a negotiation with the Crown over the sale of the biggest man-made forest in the southern hemisphere – the Kaingaroa Forest. And then they sold the spectra. And  we had an argument with the Crown over who owned the spectra. It’s about the same argumwent as who owns the water.

And the government of the day said, ‘Maori did not know anything about the spectra’. And I shot back to them, ‘Neither did they. An Italian  fellow named Marconi knew about it, and the Poms didn’t know anything about it at all’.

The upshot is that they allocated us a portion of the spectra and now we’re a part of Two Degrees.

Finally we come to the sale of the dams and the capacity to generate power. The whakapapa so far tells us that the constant that is present in all this is that the Maori Council has ensured that state owned assets stay in this country.”

There was strong applause at this point, and with a smile, Maanu Paul continued,

“Thank you. Because I’m going to ask you to put your hands in your pockets, because you owe us.”

More good natured laughter, and Maanu Paul’s smile widened, as the audience understood the nature of his remarks. He explained,

“You owe us because if we didn’t take this government to the Tribunal, to the High Court, and the Supreme Court, our assets would’ve been gone, would’ve been sold by now.

That is the reality of what we’re facing. And so the Council is dedicated to ensuring that we leave the world a better place for our mokopunas. We leave the world a better place that wehen we were born to it. And the world we were born to was, as far as I was concerned, I had the right to go and fish in my foreshore in my foreshore and seabed… heh heh heh…

I had the right to swim in my rivers and my lakes and call them my own. I had the right to do what I wanted with my land without having it confiscated.

And all of these tell me right now, that those rights have been eroded. Those rights have been eroded because this government, and previous governments, have failed to properly honour the Treaty of Waitangi.”

At this point, Maanu Paul called for direct action of a sort that up until now had not been considered. His comments have been reported in the media, and this is what he said, verbatim,

“And so my  message today, to us, is quite simply, is that we need to do more than sign a petition. We need to do more than gather in Frank Kitts Park, and what we need to do is to sit outside of Parliament and demand that we maintain the control of our assets.

What I’m suggesting – and I don’t know whether my Council’s going to agree with me about  this – but what I’m suggesting  is that we have a Noho Kainga [sitting] on Parliament grounds!

And we sit there until a fellow called Winston Peters might have put a Bill in Parliament that says ‘we are wishing to maintain ownership of the assets that we paid for in the taxes that’ve been levied upon us in the name of the public good’.

The audience resoponded enthusiastically to this suggestion, and the feeling was strong that many would’ve upped and left for Parliament’s ground at that very moment.

Maanu Paul continued,

“And the reason I’m saying this to you is that simply because there is no protection of your assets paid for by your taxes, which were levied upon you in the first place, in the name of the public good.

And we are the public and we should have a Nono Kainga to protect to protect our public good.”

Maanu Paul then sang a new “public anthem” to the crowd. This blogger can report that  his singing is something to behold – Maanu Paul has an awesome singing voice. Firstly his song was rendered in Maori, and then for the benefit of those who don’t yet know the language (including this blogger), in English,

‘I am the water, the water is me,

Cascading down,

from Ranginui,

Enveloping all,

The environment,

I am the water,

the water is me.’

Ariana asked the crowd,  “Yes, yes, yes! A sit down at Parliament – who’s up for it?

The response was shouted from the crowd loud and in affirmation.

A new people’s action may be in the offing… Stay tuned, folks. This ain’t over – not by a long shot. Or by John Key’s lamentable imagination.

A new chapter is unfolding.

Continued and concluded at:

Wellingtonians rally to send a message to the Beehive! (part toru)

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Additional

TV3: Asset sales referendum likely (6 Feb 2013)

TV3: Govt under fire over Contact redundancies (14 Feb 2013)

NBR: Supreme Court to ignore govt deadline on water rights decision (15 Feb 2013)

Youtube: Say No to Asset sales in Aotearoa NZ.mov

Copyright (c)  Notice

All images are freely available to be used, with following provisos,

  •     Use must be for non-commercial purposes.
  •     At all times, images must be used only in context, and not to denigrate individuals.
  •     Acknowledgement of source is requested.

Relevant orgs

It’s Our Future

Keep our Assets

Aotearoa is not for Sale

Aotearoa is Not for Sale | Facebook

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= fs =

Wellingtonians rally to send a message to the Beehive! (part tahi)

17 February 2013 6 comments

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NZ, Wellington, 13 February 2013 – Set against an overcast early evening sky, and a chilly southerly, several hundred Wellingtonians of all ages, races, political affiliations, and backgrounds came together at Frank Kitts Park, on Wellington’s waterfront,

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Their common unity of purpose was to oppose the partial sale of state-owned assets,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com aotearoa not for sale - 13 february 2013 - frank kitts park - wellington - anti asset sales

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Electricity-dustry expert, Molly Melhuish, with others from DEUN (Domestic Electricity Users Network). Ms Melhuish (center, holding white clipboard)  is  intimately familiar with the working of the electricity industry in this country and was a key member in   campaigns to oppose electricity privatisation in the 1990s – including Wellington’s Capital Power.

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The messages were simple, and to the point. From Labour,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com aotearoa not for sale - 13 february 2013 - frank kitts park - wellington - anti asset sales

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… to the Mana Party,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com aotearoa not for sale - 13 february 2013 - frank kitts park - wellington - anti asset sales

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The message for National  was clear – what’s ours is ours,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com aotearoa not for sale - 13 february 2013 - frank kitts park - wellington - anti asset sales

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This Wellingtonian understood the folly and false-economy of selling state assets which are money-making cash-cows. Right wing politicians know this – but their zealous obedience to neo-liberal dogma seems to over-ride any semblance of common-sense,

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Many in the crowd were of an age to recall the sale of Telecom – something that was resisted by 93% of New Zealanders,

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Interestingly, at least one right-wing politician has belatedly realised that selling state assets was a mistake – see: Bolger: Telecom sale a mistake

Dedicated ANFS activist, Frances, had a very simple question for Dear Leader,

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ANFS activist, Athena, handing out leaflets to people in the crowd and discussing issues with them,

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With media filming the event, ANFS co-convenor, Ariana, opened the Rally with a welcome to the crowd and  an introduction of the speakers who had been invited to address the rally, with their thoughts on the sale of state assets,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com aotearoa not for sale - 13 february 2013 - frank kitts park - wellington - anti asset sales

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The speakers came from a variety of backgrounds, and each gave their perspective on the issue of selling the people’s assets.

To be continued:

Wellingtonians rally to send a message to the Beehive! (part rua)

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Additional

TV3: Asset sales referendum likely (6 Feb 2013)

TV3: Govt under fire over Contact redundancies (14 Feb 2013)

NBR: Supreme Court to ignore govt deadline on water rights decision (15 Feb 2013)

Youtube: Say No to Asset sales in Aotearoa NZ.mov

Copyright (c)  Notice

All images are freely available to be used, with following provisos,

  •     Use must be for non-commercial purposes.
  •     At all times, images must be used only in context, and not to denigrate individuals.
  •     Acknowledgement of source is requested.

Relevant orgs

It’s Our Future

Keep our Assets

Aotearoa is not for Sale

Aotearoa is Not for Sale | Facebook

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= fs =

Is John Key ‘losing the plot’?!

18 September 2012 3 comments

Lifted from the media today,

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Full story

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When the Leader of the pro-capitalist National Party starts talking about “nationalising elements such as water and wind”  – whilst at the same time instigating a programme to partially privatise Genesis Energy, Mighty River Power, and Meridian – the question has to be asked; has John Key flipped his lid?!?!

Regardless of whatever atmosphere they are breathing on the Ninth Floor, there must be some severe oxygen depletion at work to have affected Key’s mental processes so badly.

New Zealanders from both ends of the spectrum, Left and Right, as well as the general populace, must be wondering what is going on in the land of Planet National.

Right wing National supporters must’ve wondered if they had heard their Dear Leader correctly when he uttered the taboo “N” word (“nationalisation – not “n—-r”).

The Left would have been rolling their eyes and shaking their heads in dismay, and wondering, “How much more of this clown will the public take? Does he have to decapitate and eat a kitten before his popularity takes a nose-dive and drops lower than John Banks’ credibility?”

Nationalisation of water and air…

Whilst selling of our state assets at the same time…

The breath-taking audacity of the man.

In reality, what he is saying is that  the government is toying with the idea  of making a grab for certain natural resources – before selling them to private investors.

His comment is as ludicrous as his statement on TVNZ’s Q+A on 16 September when he dumbly blurted out,

… So if you accept that viewpoint, then I think you have to accept that elements like water and wind and the sun and air and fire and all these things, and the sea, along with natural resources like oil and gas, are there for the national interest of everyone. They’re there for the benefit of all New Zealanders, not one particular group over another. “

See: TVNZ Q+A Interview with Prime Minister John Key

Yeah, right, Dear Leader. I’m sure that came as a bit of a surprise to the private oil and gas companies currently exploiting our gas and oil fields.

John Key – always a laugh a minute with his incredibly outrageous remarks. Unfortunately, his clownish behaviour is ultimately at our expense.

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A lesson in Energy Economics

17 September 2012 Leave a comment

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This is the Treaty of Waitangi, signed by most tribes in New Zealand, and by the Representative of Her Majesty, Lieutenant-Governor, William Hobson,

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The full English text can be read here: Treaty of Waitangi.

The relevant part to the treaty, guaranteeing rights to land, forests, water, mountain, etc, is this bit, Article 2,

Article the second [Article 2]

Her Majesty the Queen of England confirms and guarantees to the Chiefs and Tribes of New Zealand and to the respective families and individuals thereof the full exclusive and undisturbed possession of their Lands and Estates Forests Fisheries and other properties which they may collectively or individually possess so long as it is their wish and desire to retain the same in their possession; but the Chiefs of the United Tribes and the individual Chiefs yield to Her Majesty the exclusive right of Preemption over such lands as the proprietors thereof may be disposed to alienate at such prices as may be agreed upon between the respective Proprietors and persons appointed by Her Majesty to treat with them in that behalf.

Seems fairly clear; what’s theirs is theirs and no nicking each others’ stuff.

Now, unfortunately, I have fellow New Zealanders who hold to the belief that the Treaty of Waitangi is “no longer relevant” or is “outdated”.

Interesting idea that; “no longer relevant”.

Firstly, the Treaty has no “expiry date” or “statute of limitations”. Nothing in the  small print  states that the Treaty is valid for only X number of years.

Secondly, imagine trying to tell our American cuzzies that their Declaration of Independence – signed in 1776AD, and therefore some 64 years older than our own Treaty – is “no longer relevant” or  “outdated”? They’d have half their US Marines camped outside your front door – and not in a happy way, either.

And of course, there is the Magna Carta, signed in 1215AD, and which is the basis of much of our modern law.  If the Magna Carta is “no longer relevant” or  “outdated” then we are in serious trouble, as the state would have arbitrary powers of detention and imprisonment without right of trial, and we would lose other legal protections from State abuse.

And then there are the Ten Commandments, several thousand years old, which state the most basic laws of a civilised society; no killing, no stealing, no false accusations, etc.

Few people would try to assert that these basic laws are “no longer relevant” or  “outdated”?

Time does not extinguish rights.

Those who object to the principles of the Treaty do so out of fear and misconceptions (and sometimes out of downright racist hostility) than any notions of fairness.

The Treaty is the basis upon which our ancestors agreed to live together and to respect each other. We should respect that agreement and use it in the spirit in which it was signed.

Otherwise we disrespect our forebears (on all sides) and do ourselves a dishonour in the  process.

Moving forward and onward…

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II

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In replying to Maori claims of water rights, Dear Leader John Key has stated earnestly that “no one owns the water”.

Until now,  Maori have made no claims over water in terms of this country’s energy production. With Meridian, Mighty River Power, and Genesis Energy under collective  state ownership, it could equally be said that “no one owned the power companies – they belonged to us all.

If, until now, we all benefitted from collective ownership of power companies, then, equally the source of that power was in collective ownership. Now National is attempting to privatise 49% of  Meridian, Mighty River Power, and Genesis Energy – effectively changing the rules.

The concept of private ownership is now contemplated for up-till-now collectively-owned assets. So what about the source of that power which will now benefit a small group who will own 49%?

Can the source of hydro power be owned, especially when it produces profits?

Let’s test that idea, shall we?

Simple question: who owns the following resources?

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Oil. Natural  gas. Coal. Uranium. None of this stuff  is free. Someone owns the ground or the process used to extract it.  There is a concept of private ownership  over these energy sources that can be quantified, measured, controlled,  priced, and sold.

Until Pakeha arrived on these fair shores as the second wave of  “boat people” – refugees from a class-stratified society – Maori had no concept of private ownership. Property was not owned by individuals. Iwi and hapu held collective kawanatanga over their lands, waters, forests, hills, seashores, etc.

Once Pakeha arrived, the notion of private ownership and Land Titles were introduced to Maori.

Some Pakeha might object – but water is sacred!

So is land. God knows enough of our young men have gone off to war to defend our nation; our people; our lands, from foreign domination, in two World Wars.

Some Pakeha would object – but water is ephemeral!

So are radio/television  frequencies. But that hasn’t stopped the government to leasing/selling those to private companies. (Try broadcasting on the same wavelength as TVNZ or TV3, and see what the reaction from those companies and the State would be.)

This is a hydro power station,

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Powered by this stuff,

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Water  generates the turbines which produces the power that is on-sold to consumers.

So how does water differ from oil, gas, coal, and uranium?

Private ownership?  It suited us Pakeha when it was used to our benefit to “acquire” land from Maori.

Maori learnt that lesson well and the shoe is now on the other foot.

If Pakeha are going to flog of 49% of  assets that, up till now, no one owned and collectively benefitted us all, then by the gods, Maori can – and should – apply precisely the same principle.

Welcome to the world of capitalism – our ‘gift’ to Maori

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III

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Pakeha schizophrenia over private ownership was nowhere better summed up than on TVNZ’s Q+A, on 16 September, when Shane Taurima interviewed Dear Leader John Key on this issue,

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In a stunning act of conversion to social democratic principles, John Key equated the collective ownership of water with oil and gas,

… So if you accept that viewpoint, then I think you have to accept that elements like water and wind and the sun and air and fire and all these things, and the sea, along with natural resources like oil and gas, are there for the national interest of everyone. They’re there for the benefit of all New Zealanders, not one particular group over another. “

See: TVNZ Q+A Interview with Prime Minister John Key

Really?!?!

JohnKey is telling us that, ” natural resources like oil and gas, are there for the national interest of everyone. They’re there for the benefit of all New Zealanders, not one particular group over another “?!?

Since when did National or Labour nationalise the oil and gas industry???

This little piece of news-trivia slipped by me, that’s for sure. (Must’ve been announced on the other TV channel when we wasted two minutes watching ‘The Ridges‘.)

It’s pure bullshit of course. John Key is spinning porkies when he’s suggesting that the oil and gas industry is ” there for the national interest of everyone “. These resources belong to various corporations – not ”  for the benefit of all New Zealanders “.

In fact, the last time New Zealand held any State ownership in any aspect of the oil and gas industry was  with Petrocorp and Maui gas – both  privatised, respectively, in 1988 and 1990.

See: Treasury – Income from State Asset Sales

John Key’s assertion that the oil and gas industry is ” there for the national interest of everyone ” is either delusional (spending too much time with John Banks?) or a clumsy fairytale to try to woo New Zealanders into a cosy, cotton-wool, fantasy world.

This blogger would welcome and support National nationalising all oil and gas production in this country, ”  for the benefit of all New Zealanders “.

The fact is that Dear Leader blew it.

Not only was his paradigm absurdly false – but it actually shored up the legitamacy of Maori claims over water rights.

If private ownership can be conferred over this country’s oil and gas resources, for the private benefit of shareholders, then John Key needs to explain – in far more truthful terms this time – why water is different.

This blogger  believes that so far he has made a complete hash of things.

More importantly, will a Court take a similar view?

My money is on Maori winning this one.

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IV

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An email sent to Dear Leader,

Date: Monday, 17 September 2012 12:11 AM
From: Frank Macskasy <fmacskasy@yahoo.com>
Reply-To: Frank Macskasy <fmacskasy@yahoo.com>
Subject: Nationalisation of oil and gas resources
To: John Key <john.key@parliament.govt.nz>
Cc: David Shearer <david.shearer@parliament.govt.nz>,
    Russel Norman <Russel.Norman@parliament.govt.nz>,
    Metiria Turei <metiria.turei@parliament.govt.nz>,
    Winston Peters <winston.peters@parliament.govt.nz>

Kia Ora Mr Key,
 
On 16 September, you stated on TVNZ’s Q+A the following statement,
” … So if you accept that viewpoint, then I think you have to accept that elements like water and wind and the sun and air and fire and all these things, and the sea, along with natural resources like oil and gas, are there for the national interest of everyone. They’re there for the benefit of all New Zealanders, not one particular group over another. “
 

Source:  http://tvnz.co.nz/q-and-a-news/interview-prime-minister-john-key-5085886

I missed the occassion when our oil and gas industries were nationalised, so that profits would remain in New Zealand,  “for the benefit of all New Zealanders, not one particular group over another”.

This is an excellent state of affairs and I welcome your government’s conversion to social democracy whereby  our ”  natural resources like oil and gas, are there for the national interest of everyone “.

I take it as a given then, that you have not only abandoned your asset sales programme, but will be re-nationalising Contact Energy.

In which case, it is a truism that “no one owns the oil and gas” in the ground, and subsequently these resources belong to all New Zealanders collectively.

I may have to reconsider my vote, come 2014, as I wish to support the newly discovered  social-democratic principles shown by your Party.

With regards,
-Frank Macskasy
Blogger

See: https://fmacskasy.wordpress.com/2012/09/17/a-lesson-in-energy-economics/

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From Parliament, 2011, to Greymouth, 2012

4 September 2012 5 comments

Nothing better illustrates National’s Epic Fail in the matter of generating new jobs than these two events…

Last year, as National delivered it’s budget, Dear Leader John Key stated,

New Zealand can’t keep borrowing money at $380 million a week. We can’t have New Zealanders exposed to high interested rates, New Zealanders need a plan for jobs.

This is a budget that actually delivers that.

Treasury say in the Budget, as a result of this platform on what we’ve delivered, 170,000 jobs created and 4% wage growth over the next three to four years.”*

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Full Story

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Fast forward sixteen months later, to Greymouth,

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Full Story

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It seems an extraordinary situation  that we have arrived in when New Zealanders have to take to the streets to protest.  Not protesting to save our Conservation estates; nor our state assets from being flogged of;  or in favour of  gay rights; nor any other environmental, political,  or civil rights  issue – but merely to protect jobs in a community.

It is bizarre that this is what we’ve come down to; protesting for jobs.

Unfortunately, this is about as “good” as it gets for a National-led government. National, being a Party that adheres to free market  principles that only private enterprise can create jobs, is trapped in it’s own ideology.

Which means that, unlike the past government of Mickey Savage, National refuses to be proactive. It will not get involved in job creation initiatives because it believes it has no role to play in such an area. That is for the Marketplace to deliver.

We may be waiting for quite a while.

In  May of this year, unemployment stood at 6.7%.

See: Unemployment rate lifts to 6.7pc

By August it had risen to 6.8%.

See: Unemployment rises: 6.8pc

The next Quarterly result, for the September-November period, will most likely show a similar increase.

If  the partial-privatisation of  Meridian, Mighty Rive Power, and Genesis Energy proceeds – expect more redundancies further still.Privatisation nearly always results in job losses (and price increases) to generate greater dividend returns to private investors.

That is what it means to elect National to power.

See:  Highest jobless rate in 2 years

National is so wedded to free market dogma that this situation will worsen until such time as New Zealanders can no longer stomach a right-wing government and follow their French cuzzies into electing a more proactive centre-left government.  Only then will a centre-left government deal with unemployment and focus on proactive stategies to create jobs.

See: Labour shortage here to stay, so we had better get used to it

We’ve been ‘here’ before, in history.  This blogger has seen this political drama repeated decade after decade since the 1970s.  (In fact, it’s getting rather tediously predictable.)

Unfortunately for the decent, hardworking people of Greymouth and elsewhere in New Zealand, the tragic drama  of unemployment, family life disruption,   social dislocation, and harm to business,  must play out before the final Act is staged on Election Night.

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* At least, that’s what we hope he said. This blogger is checking the Parliamentary Translation Unit to confirm.

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Asset Sales: two down, three to go!

22 August 2012 21 comments

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Oh dear, National seems to be in a spot of bother over it’s planned partial privatisation of  five SOEs…

Earth, Air…

One state owned enterprise, Solid Energy, appears now to be off the sales list. According to Finance Minister Bill English,

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Full story

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On top of that, there appears to be a real questionmark over the sale-value of Air New Zealand, as well, according to outgoing chief executive Rob Fyfe,

However, outgoing chief executive Rob Fyfe has said he would be “surprised if the Government would be wanting to sell” at the current low share price.

The company was in the midst of a “cyclical low” on its share price, Fyfe said in June.”

See: ibid

Fyfe is correct.

A look at Air New Zealand’s recent and longer term share price history shows that it has been badly affected by the Global Financial Crisis (GFC).

In 2007, Air New Zealand’s share price stood at $2.47 a share,

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Source: Google Finance – Air New Zealand Ltd

At the end of trading (22 Aug), today, that share price stood at 92.5 cents each. That’s a loss of  $1.545 per share,

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Source: Google Finance – Air New Zealand Ltd

In fact, the share price dropped from 94.5 cents a share yesterday (21 Aug) to it’s current level of 92 cents.

Looked at another way; it’s like having your home valued at $247,000 in 2007, prior to the onset of the GFC – and having it valued at only $92,500 today.

Not a good environment to be a seller.

NOTE: It is interesting that, of all the SOEs, Air New Zealand is the only one that has a small, privately-owned component. The state owns 73.13% of Air New Zealand, other investors own 26.87%.

See: Air New Zealand – Shares on Issue

This situation is a ‘quirk’ of Air New Zealand’s re-nationalisation in October 2001, when it faced collapse under a massive $NZ1.425 billion operating loss incurred by then-private owners.

See: Wikipedia – Air New Zealand, Re-nationalised era

So it’s current share value is a relatively true reflection of it’s present market-value.  There is no “guesswork” involved, as Bill English revealed in February this year, with the other four SOEs,

See: English admits his SOE figures just a guess

Helluva way to run an economy…

Most sane people wouldn’t sell at such a ridiculously low price and would wait for the market to recover.

However, despite misguided belief, National’s commercial nous is vastly over-rated. In fact, some of their commercial decisions have been absolutely apalling.

The most famous being that these assets – especially the power companies – actually return a higher dividend to government than would be the cost of borrowing that same money. As BERL reported in May,

Partial asset sales will do nothing to curb New Zealand’s growing debt problem, a new report by economic analysts Berl says.

The Berl report, commissioned by the Green Party and released today, says the Government’s partial asset sales programme to build new assets would leave the Crown accounts ”permanently worse off”.

Government debt, the ratio of debt to assets, net worth and total assets would all be worse off after the programme was carried out, Berl found.

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

”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“.”

See: Asset sales will leave Govt worse off – BERL

Madness.

The up-shot?  Unless the global economy stages a miraculous recovery in the next two years (about as likely as The Second Coming or Klingons camping out in my backyard),  and National ministers are dumber than I thought, Solid Energy and Air New Zealand can be scratched from the privatisation agenda.

Added to this, is a brewing toxic mess involving commercial interests and  Treaty claims over water rights…

Water…

At the beginning of August, Key realised that the partial-sale of SOEs was not going to go smoothly.  Until now,  state owned power companies were exploiting water resources for the benefit of the nation as a whole.

Maori were content with that status quo; for as long as no one owned the power companies – they were owned by us all – the same could be said of water.

But the moment that private ownership of  hydro-power generation was mooted – the situation changed. Water would be used to generate power, which would be sold, and would deliver profits to private owners.

Saying that “no one owns the water” that hydro-power stations use is akin to saying no one owns the coal or gas that are used in coal-powered and gas-powered stations.  Ridiculous.

The Waitangi Tribunal will shortly be delivering it’s response to Maori Council claims over water rights.

Most likely, the Tribunal will find in favour of Maori. This blogger can conceive of no reason why this should not happen, and just as land can be owned – so can water rights.

It’s a bit late-in-the-day for capitalist National voters and politicians to now be claiming socialist principles of  “collective ownership”. That just ain’t gonna wash, Jethro.

If National over-rules the Tribunal findings, then Maori will go to Court – the High Court to be precise. Of all Pakeha institutions, Maori have a great affinity for the legal system. They know how to use it for greatest advantage.

Going to Court will have one result; a lengthy delay in the asset sales programme.

On 22 August, National admitted what the rest of us already knew,

The Government says it is going to have to start making judgments about how much of its partial asset sales programme can be completed in this term of office…

[abridged]… Finance Minister Bill English says the Government also has to deal with other issues, such as the Waitangi Tribunal report on water rights relating to the partial sale of Mighty River Power, and possible legal action.

Mr English says he is not taking it for granted that the Government will be able to complete the full programme this term. “

See: Govt less bullish about partial asset sales

Fire…

And as if that was not enough to put a spoke in the wheels, two corporate interests have recently made announcements that could have a significant impact on share prices for the remaining three SOEs; Mighty  River Power, Meridian, and Genesis.

Norske Skog Tasman

Norske Skog Tasman’s plan to halve newsprint production at its Kawerau mill will have implications for the power generation industry if it goes through with it, says an industry analyst.

The company, which accounts for about 2.9 per cent of New Zealand’s power demand, is looking at cutting its annual production to 150,000 tonnes from 300,000 tonnes because of dwindling domestic and offshore sales.

The analyst, who requested anonymity, said the partial closure would further extend the “significant” generation over-capacity in the New Zealand electricity market.

A 50 per cent reduction in Norske Skog Tasman’s electricity demand would equate to about one year of demand growth estimated in Ministry of Economic Development forecasts. “

See: Paper mill cuts threat for power industry

By coincidence, Norske Skog buys most of its power from Mighty River Power, which is the first SOE that National  plans to partially privatise.

Any potential “mum and dad” investors may be warned off from investing in MRP shares. If  Norske Skog proceed with their plans, power consumption will decrease dramatically – and so will profits.  Which will mean a cut in dividends paid to shareholders.

Tiwai Aluminium Smelter

Perhaps the ‘nastiest’ surprise for National and it’s Dear Leader was this announcement on 11 August from multi-national conglomerate, Rio Tinto,

Meridian Energy’s announcement that it had been approached by New Zealand’s biggest power user, Rio Tinto, to discuss potential changes to its supply contract has created uncertainty for the Government’s plans to partly privatise the three power generators, analysts said.

State-owned South Island power generator Meridian said it had been approached by Pacific Aluminium, a business unit of Rio Tinto, the majority shareholder of New Zealand Aluminium Smelters (NZAS), to discuss potential changes to the electricity contract with the smelter.

The statement comes a time when Rio Tinto is assessing its options for the NZAS smelter at Tiwai Pt.

Tiwai takes about 15 per cent of New Zealand’s electricity, so the prospect of changes to the contract between Meridian and Rio was enough to send Contact Energy’s share price down 20c to $4.80 on Thursday.

Few in the financial markets expect Tiwai Pt to close, but if it did, much more power would be added to the national grid, depressing prices and affecting the profitability of all the power generators. “

Rio Tinto’s announcement immediatly  sliced 20 cents off  Contact Energy’s share price. What will it do to the three state owned power companies?

It’s hardly surprising, really. Everyone else appears to be putting their hand out, or up, to gain benefit from the asset sales – why not multi-national corporations who are already parked here in our country?

The Herald report goes on to say,

Morningstar analyst Nachi Moghe said there was ongoing concern about the feasibility of Tiwai Pt and the possibility that it might eventually shut down.

“Obviously, if that happens it will hurt everyone, but it will hurt Meridian the most,” he said.”That additional supply will throw the supply-demand balance out of kilter.”

One fund manager said the news was a “bolt from the blue”.

In the contract negotiations, he said, the pressure could go on Meridian to reduce its price, or to reduce the volume of power it supplies, which would have an impact on the wholesale electricity market.

“It’s poor timing but great timing on behalf of Rio Tinto as we go into the mixed ownership model process,” said the fund manager, who did not want to be identified.”

See: Smelter power review ‘bolt from blue’ for asset sales

Rio Tinto appears to be exploiting current uncertainties and confusion in  the current  environment.  As pressure mounts on National from every direction, this appears to be an opportune moment for corporations to start  flexing their own muscles.

Just what the Nats needed – their own corporate allies to shaft them at the worst possible moment.

Capitalism. Ya gotta laugh.

Weather

And the most critical factor to impact on the electricity generation industry: the weather.

This is something that even the “invisible hand” of the free market is utterly powerless to influence. Meridian’s profits have already been affected,

The worst inflows into its hydro lakes for 79 years took a toll on Meridian Energy’s earnings in the year to June 2012.

The state-owned generator and electricity retailer yesterday reported a net profit after tax of $74.6 million, down from $303.1 million the year before.”

See:  Dry year helps knock 28%  off Meridian profit

At this point, Dear Leader John Key might be starting to wonder. With all these ‘forces’ ranged against his Party’s plans to flog off our state assets – perhaps the Fates are trying to tell him something?

What next?

This blogger is surprised that China and Australia – both nations with which we have Free Trade Agreements – have not put their hands up to line up and buy shares.

After all, that is what FTAs are about. Legally, we might not be able to stop them.

Will we be hearing from our Chinese and Aussie cuzzies next?

Watch this space.

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Additional

Tiwai Pt threat could delay Mighty River sale

Energy float may turn into a s(t)inker

Other blogs

No where to go on Maori water rights

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Devonport: their cheeky contradiction of Private Ownership vs Public

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Immigration & Customs for new arrivals

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Residents angry at Devonport Treaty settlement

Updated at 4:52 pm on 31 March 2012

Residents of the Auckland suburb of Devonport challenged a Treaty of Waitangi settlement at a public meeting on Saturday.

An agreement reached by the Government in November allows Ngati Whatua o Orakei to buy a 3.2 hectare block at Narrow Neck which is currently used by the Defence Force.

The terms of the sale would allow the hapu to develop the land after the navy finishes using it.

But many residents are against private ownership of the land and say they want the entire headland protected from commercial development.

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About 300 residents attended the meeting held on the Defence Force land, to hear an explanation of the sale from the Minister for Treaty Negotiations, Chris Finalyson.

Mr Finlayson clarified that the neighbouring Fort Takapuna reserve and parts of the headland closest to the sea would not be sold and would be kept open to the public.

He said residents could make submissions to the Maori Affairs Select Committee which is handling the settlement.

Almost all of the people who spoke at the meeting opposed the sale and many left the meeting saying they remain angry at the situation. ” – Source

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It seems that the good people of Devonport are somewhat ‘miffed’ that 3.2 hectares of land at Devonport will be part of a Treaty settlement with Ngati Whatua o Orakei. The land is currently legally protected under the Hauraki Gulf Marine Park Act – but this protection will cease once it becomes private land  as part of the  the settlement.

It is worth noting that the 3.2 hectares in question is only a small fraction of the 31,565 hectares taken by the colonial government since colonisation. 3.2 our of 31,565 hectares – about .o1% of what that tribe possessed before the “rule of Britain” took hold of the countrry. (The  same “rule of Britain” that supposedly recognised and protected property rights, but never mind about that.)

Locals are upset at the prospect of the Treaty settlement. As many of stated, they want the land to be protected and do not want it passed over to private ownership. Once in private ownership, they say, the land might be developed.

(Just as land taken from Ngati Whatua o Orakei was on-sold to colonists, who then developed it. Ie; they built houses.)

So I guess the lesson I’m learning here is; land development is ok if it’s by pakeha.

But not ok, if it’s by Maori?

Ok, got it.

But what really amuses me is that the people of Devonport seem to have a somewhat ambiguous approach to the notion of an asset  held by the community for community purposes – and a community asset that can be sold into private ownership…

Folks, welcome to Devonport…

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Devonport is the southern part of the North Shore electorate,

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North Shore Electorate

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At last year’s election, the voters of North Shore voted over-whelmingly for the National Party candidate, former radio and TV presenter, Maggie Barry,

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Party Candidate Votes % ±% Party Votes % ±%
National Green tick Maggie Barry 22,709 62.44 +0.59 23,113 62.16 +4.10
Labour Ben Clark 7,481 20.57 -3.44 6,036 16.23 -5.17
Green Pieter Watson 2,802 7.70 +1.50 4,035 10.85 +4.24
ACT Don Brash 1,293 3.56 -0.41 714 1.92 -5.55
Conservative Craig Jensen 904 2.49 +2.49 829 2.23 +2.23

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Source

As the above chart clearly reveals, over 62% of voters gave their Party and Electorate votes to National.

That’s the same National Party that campaigned on a policy of partial privatisation of Genesis Energy, Meridian, Mighty River Power, Solid Energy, and a further sell-down of Air New Zealand.

By contrast, those parties (Labour, Greens, NZ First) that campaigned against state asset sales received only 30.74% of the Party vote.

So I think we get a fairly clear idea where there hearts and minds of North Shore (including Devonporters) voters lies; firmly in the Tory bosom. North Shore/Devonport is about as ‘blue‘ as you can get. And they certainly didn’t seem to mind too much about National’s stated policy of partial-asset sales, did they?

The sale of community owned assets didn’t seem to occupy the minds of North Shore voters last year? So it seems a bit rich that that Devonport folk are now up-in-arms about Crown land being returned to their original owners – when several SOEs will soon end up in partial foreign-ownership.

So they have a bit of a cheek to protest now, when they couldn’t care less about privatisation last year. In fact, I would say they pretty much got what they voted for.

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NGATI WHATUA O ORAKEI NAVY DEAL

Hapu to buy:

* Five New Zealand Defence Force housing blocks for $95.63 million. These will be leased back to the Crown for five years.

* Defence land at Wakakura Cres for $10 million.

* Defence land at Narrow Neck for $13.8 million.

* Deal vests a 33.64ha conservation area in tribe’s name. To be used as a recreation reserve administered jointly by tribe and Auckland Council.

* Purewa Creek’s name to be changed to Pourewa Creek.

* $18 million – $2 million already received through hapu’s 1993 Railways settlement.

* Rights of first refusal for 170 years over surplus Crown-owned properties. ” – Source

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The Muppet Show – Kiwi style!

21 February 2012 5 comments

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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.

“That’s an honest answer.”Bill English, 17 February 2012

That may be an “honest answer” – but it also has to rank as one of the dumbest in New Zealand’s political history.

To explain what Bill English was being “honest” about,

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Full Story

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That’s right, folks, our Finance Minister has just let slip that National has no idea how much money they will raise from the part-privatisation of Genesis Energy, Might River Power, Meridian, Solid Energy, and Air New Zealand.

They don’t have a clue.

The $5 -$7 billion they have been quoting pre and post election are figures seemingly plucked out of hot-air from Parliament’s oxygen-depleted atmosphere. (Oxygen depletion tends to have unpleasant side-effects on a brain such as confused, muddled, thinking.)

John Key – realising that Bill English had made National the laughing stock of the country – jumped in, changing the “best guess” to a “best estimate”,

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Full Story

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However, Key didn’t help matters much when he added,

I think they are our best estimates”.

“There are lots of variables in there … what we do know is the Crown will absolutely have a minimum of 51 per cent shareholding but could have more. We don’t know what price the market will pay at the time; we don’t know the exact timing of all these particular floats.”

So let’s see.  Key and English don’t know any of the following,

  • How much will be raised by the partial-privatisation?
  • Whether they will end up with 51% ownership – or more?
  • Or even the timing of the “floats” (sale of shares)?
  • Or what price the shares will be sold at???

No wonder Greens co-leader Russel Norman said, in utter exasperation,

That isn’t how we should be running the finances of New Zealand.”

Norman wasn’t playing usual political one-upmanship games – he was voicing the entire country’s disquiet at what is rapidly looking like mickey mouse incompetance.

Yet again this is an example of National simply not being up-with-the-play.  Much like unaffordable tax-cuts of ’09 and ’10; the Jobs Summit of 2009 that achieved very little;   the credit down-grade they “never saw coming”; the broken promise on raising gst; the $1.4 billion revenue short-fall – National’s economic policies seem to be ad-hoc at the very best.

No wonder even the business community was left wondering if National had any plan at all for economic recovery.

If this was the Muppet Show, it might look something like this,

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Instead, it looks like this,

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Full Story

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These two clowns muppets are in charge of billions of dollars worth of public property?

I am not reassured. In fact, I wouldn’t trust these two to run  a charity sausage sizzle.

I can imagine how that would end badly,

  • 1 x sausage, @ 50 cents wholesale
  • gas, onion, sauces, napkin, est. 50 cents per sausage
  • Retail price: ? 40 cents   60 cents   75 cents!

Cue: muppet theme & roll credits.

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Other Blog stories

Selling assets will cost us more than keeping them – the idiocy of National

“Best guess?” – National and Fairfax are working very hard for one another

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Dunne’s Dumb Deal?

5 December 2011 3 comments

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Full Story

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What Mr Dunne gets:

– No sale of KiwiBank or Radio New Zealand.
– Statutory limits will be introduced on the sale of public asset to no more than 49 per cent of shareholding to private interests and limits would be put on the extent of single entity ownership.
– A ban on guided helicopter hunting on conservation land will be introduced to Parliament.
– The budgets of both Radio New Zealand and Television New Zealand will be maintained.
– The Families Commission will be revamped.
– There will be public consultation on Mr Dunne’s Flexi-Super policy.
– Guaranteed access to rivers, lakes, forests and coastline.
– An agreement to reintroduce Mr Dunne’s income sharing legislation which failed to win enough support in the last Parliament.
– Free health-checks for over 65-year-olds would also be investigated.

Whoa…! Back up that coalition-pony, sonny boy!

No sale of KiwiBank or Radio New Zealand?!?!

Since when did National advocate or campaign on the privatisation of Kiwibank or Radio New Zealand?

In fact, John Key made it a campaign promise that Kiwibank was not up for sale, and that the only state assets on the block were Genesis Power, Meridian, Might River Power, Solid Energy, and Air New Zealand. No mention whatsoever of Radio NZ or Kiwibank.

What’s going on here?

Either Peter Dunne is telling fibs and creating a false “victory” – or else National had a secret agenda of further asset asales!?

Someone is misleading the public.

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+++ Updates +++

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Full Story

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The above article starts out positive and seemingly Dunne has succeeded in saving TVNZ7 from disappearing and being replaced by a shopping channel…

Until one reads this in the same piece,

I would have preferred to have got a much more explicit agreement regarding the future of TVNZ 7 but the National Party wouldn’t go there.”

And Dunne  then adds,

TVNZ keeps saying it needs to run as a commercial body, and it obviously makes its own decisions, but I think it needs to recognise there is a significant chunk of the population that prefers the approach TVNZ 7 takes and would be very disappointed if that channel was to close.

So he really hasn’t “saved TVNZ7” at all. In fact, Dunne admitted as much this morning (Dec 6) on Radio NZ, when he said on “Morning Report“,

” …I wanted to get an absolute committment  to the retention of TVNZ7. We weren’t able to get that. The government wasn’t prepared to make that, uh, concession…”

Ok, so let’s sum this up,

  • Dunne get’s a promise from National that neither Kiwibank nor Radio NZ will be sold.
  • But National never suggested selling Kiwibank or Radio NZ in the first place.
  • So what kind of “victory” is it to get a committment on something that the Nats weren’t intending to do anyway?
  • Dunne then negotiates to get an absolute committment to save TVNZ7.
  • And fails.

Have I missed anything?

Moving right along…

“Free health-checks for over 65-year-olds” – ???

Great. More rip-offs from my generation, the Baby Boomers. Everyone else has to pay for health checks – but all of a sudden we get freebies?

Yet again Baby Boomers – being a sizeable bloc of voters – gain tax-payer funded social services whilst everyone else has user-pays.

No doubt these “free health checks” will be funded from that sale of state assets. Once again Baby Boomers are ripping off future generations for our own selfish benefit.

The word obscene comes to mind.

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Email  Peter Dunne to let him know what you think about asset sales:

p.dunne@ministers.govt.nz

ohariu.mp@parliament.govt.nz

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Politics through a crystal ball, palmistry, or chicken entrails?

2 September 2011 2 comments

In a somewhat weak attempt to allay fears over National’s stated intention to partially-privatise several state assets, Bill English has stated that he “believes only 10 to 15 per cent will initially go to overseas buyers”.

However, tellingly, National refuses to actually pass any legislation to prevent this from happening;

 

National says it will “cap” single investor’s holding to 10%.

But National refuses to explain how it will engineer  this “cap”.

It doesn’t take a rocket scientist to figure out that a corporation could easily employ five “shelf companies“, each buying a block of 10% of the shares. These “dummy” companies would  each own a block of shares – in name only. The parent company – owning each dummy company – would be the real owner.

Result: a foreign corporation owning a sizeable chunk of each SOE.

Case in point:  Contact Energy.

 

 

In 1996, Contact Energy was split of from it’s parent SOE,  Electricity Corporation of New Zealand and fully privatised in 1999 as part of the then-National Government’s plan to “reform” the energy sector and make it more “competitive”. Energy Minister, Max Bradford,. assured New Zealand that the splitting up of ECNZ, and privatisation of Contact Energy, would introduce competition and drive prices down.

The opposite actually occurred and power prices doubled during the following decade.

When Contact Energy was privatised in 1999, 40% of the publicly offered shares were purchased by Edison Mission Energy. That 40% was subsequently increased to 51%.   Edison Mission started with a minority shareholding – which was soon increased to a majority sharehold.  (Starting to sound familiar?)

In 2004, Edison Mission sold it’s 51% stake to Australian company, Origin Energy.

Furthermore,

“The terms of this float were such that sharebrokers earned a greater commission from issuing shares to overseas shareholders than they did from issuing them to local shareholders. Many of the shares went to shareholders overseas (Gaynor, 1999). After the float, Gaynor assessed Contact as about 62% overseas owned.” Source

In reality, despite “assuring noises” made by Bill English and John Key, there is no way to prevent much of the proposed 49% sell-off of the SOEs, from falling into foreign ownership. This will not help New Zealand’s balance of payments, as profits are repatriated overseas, to offshore investors. It will mean that our most critically strategic assets will have owners who have no interest in New Zealand, except as a source of profits.

And importantly, we will lose approximately half of the profits made by these SOEs.

In 1999, Max Bradford promised New Zealanders that power prices would be “driven down” by competition.

That promise failed to materialise.

 

Garrick Tremain cartoon, Otago Daily Times, circa 1998/99

 

This year, English and Key promise that “only 10% to 15%” of shares will go to overseas investors.

Do we believe them sufficiently to “tick National” at this year’s general election?

I certainly will not.

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Further Reading:

Molly Melhuish

New Zealand Electricity Authority

Energy and Resources (New Zealand Government, portfolio website)

Max Bradford

Contact Energy

Electricity sector in New Zealand