Archive
Nick Smith
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I take no satisfaction from Nick Smith’s resignation. Dear Leader will simply appoint another National MP to take Smith’s portfolios. Nothing has changed.
In the scheme of things, his letter to ACC on behalf of former National Party activist and friend, Bronwyn Pullar, appears to be one of those gaffes that all politicians of species Homo Sapiens are capable of.
What I find unjust is that Dr Smith fell on his own sword – whilst John Key got away with something even more questionable, last year, when on 4 October, John Key made this statement in the Debating Chamber,
“When Standard & Poor’s were giving a meeting in New Zealand about a month ago, what they did say was there was about a 30% chance we would be downgraded – that’s what happens when you’re on negative outlook. They did go on to say though, if there was a change of government, that downgrade would be much more likely.”
That statement was the beginning of a political furore that, for the first time, attacked Key’s credibility.
Less than a week later, on 10 October, Standard & Poors issued a firm rejection of John Key’s assertion that Standard & Poors stated “if there was a change of government, that downgrade would be much more likely“. In fact, S&P was quite adamant,
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Key’s staff eventually released the so-called “email” that Key claimed had been sent to him by a friend (un-named), which made the S&P claim. The email was (supposedly) sent on 6 September 2011 at 11:24 am,
“ Hi John
I was part of a session with a range of economists yesterday morning – every year they do this session – with economists from Aus plus all the main NZ banks, and this year two from Standard and Poors, including the guy who obviously has a lot to do with the NZ grading.
Anyway, the S&P guys were very complimentary about how the NZ Govt is managing fiscally and their trust that what you say will happen happens, and your unwavering commitment to getting NZ’s balance sheet sorted for the long term.
But there was a key one-liner that I thought you could well use. S&P said that there was a 1/3 chance that NZ would get downgraded and a 2/3 change it would not, and the inference was clear that it would be the other way around if Labour were in power. They discussed the impact on interest rates if NZ got downgraded and how that would quickly impact on the home owner mortgage market, so net net there is a much higher risk to NZers that they will face higher interest rates under a Labour Government.
Don’t know how you use it but they were quite serious. “
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So, who was telling the truth?
In an effort to uncover the truth, Key fronted to a media conference,
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To this day, the identity of the mysterious author of that “email” has never been disclosed and we have no clue as to the veracity of who-said-what.
Perhaps the wrong person resigned.
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= fs =
Tui Time!
Sent in by an astute reader,
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The irony of this billboard is that it is not a parody. It’s a real billboard spotted on someone’s front lawn.
Obviously this particular hoarding-facing was designed before news that government borrowings have increased from $16.7 billion to June this year, to $18.4 billion to October this year.
Or that interest rates will most likely rise, due to credit downgrades by Fitch and Standard & Poors. And with an imminent announcement Moody’s – also likely to be a down-grade – expect your mortgage repayments to rise soon.
I suspect these particular billboards may come down very shortly. The embarresment factor may be somewhat irritating for the encumbent government.
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Acknowledgement
Thanks to ‘Sandman’ for sharing this image with us.
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A New Public Image Being Born?
Recieved today – and like John Key’s mysterious Standard & Poors “email” – my source will remain anonymous as well…
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I assume the above three images depict the billboard facings coming down – not going up.
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Hmmmm, obviously the “artist” had a point to make about our Dear Leader, and not the local candidate? It will be interesting to see what other graffiti makes it on to National’s hoardings.
It is also interesting to note that, this graffiti aside, there seems to have been remarkably little vandalism toward political hoardings. Are people that apathetic toward the 2011 election that even the vandals can’t be bothered?!
You have to wonder what they are putting into our drinking water…
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Politics-Free Zone? “Tui” time!
Last Friday (30 September), Prime Minister John Key (or ‘Dear Leader‘ as he is now known), played radio DJ for an hour. Using the excuse of the “electoral commission rules”, Key’s presence on Radio Live was supposedly an “election free” event,
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During Key’s session on air, New Zealand’s second sovereign credit-ratings downgrade was announced. Again, he refused to discuss the issue, citing “electoral commission rules”. His one hour was to be keep “politics and election free”.
We learnt that his cat was named, “Moonbeam“.
Which is like having Peter Jackson on-air and expecting him not to make any comment whatsoever on any of his movies or the entire film-making industry…
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Just because Dear Leader instructs his listeners that his show was an “election free zone” does not make it so. In fact, it clearly was not “election free” at all, and only the most naive or ardent National Party-apologist could claim it to be. Quite simply, John Key is the Prime Minister and Prime Ministers are political irrespective of what “zone” they might be in.
In fact, hosting a politics-free radio show is a perfect opportunity for any politician to “connect” with his/her electorate and promote their persona as being one-of-the-people.
But there is more to this issue than simply John Key getting one hour of free media exposure. Quite a bit more.
It began in 1984 when Steven Joyce, at age 21, set up his first radio station, “Energy FM”. From there, his business venture expanded considerably,
“Joyce made his millions in broadcasting. He got involved with student radio as a presenter and programme director while doing his zoology degree at Massey University in Palmerston North. Then he and a group of friends, including radio presenter Jeremy Corbett, started their own station in Joyce’s hometown of New Plymouth.
Corbett says Joyce son of a grocer had a prodigious work ethic: “Steven expects everyone to work as hard as him and nobody does.”
Joyce was 24 when Taranaki’s Energy FM finally got a full licence. Later, the team began acquiring other stations. As Corbett puts it: “I got married and left, and the rest of them became millionaires.”
Joyce says money was the furthest thing from his mind. For years “we kept living like university students [so] we could keep ploughing money back into the business”.
By 2000 he was CEO of an empire called RadioWorks, with 22 radio stations and 650 staff. He didn’t want to sell up, but Canadian company CanWest launched a stockmarket raid and left him standing with a cheque for $6 million in his hand. It was a “bittersweet” moment.” Source
“In 2004, CanWest Global Communications combined television company TV3 Network Services and radio company RadioWorks to form the new MediaWorks company. On 29 July 2004, 30% of this new company was sold on the NZSX. Three years later, in July 2007, CanWest sold its stake of the company to Ironbridge Capital, a group of Australian investors, who subsequently obtained the remaining 30% from other investors. MediaWorks is significantly larger than any of its other investments.” Source
So far we have the following “trail”: Steven Joyce/Energy FM → Steven Joyce/RadioWorks → CanWest → CanWest/MediaWorks → Ironbridge/MediaWorks, which is the current ownership-situation.
In April 2009, the Radio Broadcasters’ Association wrote to the now-Minister of Communications, Steven Joyce, asking for the high cost of renewing radio spectrum licence payments to be spread over 20 years, rather than paid in one lump sum. Source.
In the following month, May 2009, the Ministry of Economic Development advised Joyce that there was no compelling reason to accede to the Association’s request, as it would “put the Government in a credit financing role“. Joyce followed that advice and subsequently declined the RBA’s request. Ibid.
At around this point, the Dear Leader Prime Minister starts to get involved and things begin to get murky. Around August 8th or 9th, 2009, Brent Impey – the then-CEO of Mediaworks – lobbied John Key directly, to get a deferred-payments scheme put in place. (Evidently, such a scheme was desirable not because MediaWorks was in financial trouble – but because it would improve their bottom-line profitability.)
At first, John Key denied even meeting with Brent Impey, and stated this in answer to parliamentary written questions,
“The Prime Minister said he had “no meetings” with representatives of MediaWorks to discuss the deal.” Source
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Two days later that answer was corrected, saying he “ran into” Brent Impey at a “social event” in Auckland where the issue was “briefly raised” and he “passed his comments on” to the responsible minister.” Source
It seems fairly unbelievable that one could have a meeting with someone; discuss a matter involving $43 million – and then claim to have forgotten it?!
Despite having declined the Radio Broadcasters’ Association’s first appeal (May, 2009) – after Key “ran into” Brent Impey at a “social event” the matter was re-visited and on October 22, 2009, Cabinet agreed to the RBA’s request for deferred payments.
Question: What transpired between May 2009 and October 2009 to so radically change government policy, and in effect adopt the role of “credit financing”, against the advice of the Ministry of Economic Development, which Steven Joyce had originally accepted?
Question: What role did John Key have to play in this matter? Because all of a sudden he seemed to become pivotal to this issue and it’s outcome.
Question: How could John Key have forgotten that he “ran into” Brent Impey at a “social event” ?
Click here for a Timeline of events, by NZ Herald report, Derek Cheng.
Essentially then, for reasons that are as clear as a barrelfull of Christchurch liquifaction, this government decided to make a loan for radio frequency-fees, worth $43.3 million to MediaWorks.,
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As John Drinnan wrote in the above article,
“…the Government allowed them to keep the frequencies and pay the money over a 50-month period – paying 11.2 per cent interest a year. The Crown held a mortgage on the frequency with a strong security. “
However, politicians being politicians, they will always argue the point,
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“Telecommunications Minister Steven Joyce yesterday said the money was not a loan, but a deferred payment system to help the radio industry during tough times in 2009.” Ibid
Steven Joyce was adamant that this was not a “loan” to MediaWorks,
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In fact, Joyce goes on to say,
“”They have to present it as a debt because it is a debt they owe the Crown, so how they do that is between them and their accountants.
“All I can tell you is that the Crown has not advanced any cash to MediaWorks at all, that the Crown has offered a deferred payment option to all of the frequency holders who were due to renew at that time, which involved them paying interest and getting in their payments over five years.”” Ibid
So according to Steven Joyce, this is not a debt “the Crown has not advanced any cash to MediaWorks at all“?!
Reallllly?
Is that how it works?!
In which case, property-owners around New Zealandf should rejoice and do cartwheels! We have no debts! The mortgages that our banks and building societies extended to us are not debts at all because they did not “advance any cash” to us! After all, mortgage monies are paid directly to the vendor – the new owner never sees a cent of it. Banks and other financial institutions simply hold a mortgage over our properties, and charge us interest on top of principle, to be re-paid.
Which is precisely what this government has done, as already mentioned above,
“…the Government allowed them to keep the frequencies and pay the money over a 50-month period – paying 11.2 per cent interest a year. The Crown held a mortgage on the frequency with a strong security. ” Source
It’s a loan, Mr Joyce. Deal with it.
So perhaps it’s little wonder why Radio Live (owned by MediaWorks) did not extend Labour Leader Phil Goff, and other Party leaders, the same advantage as John Key had,
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Of course Radio Live “didn’t give an explanation for refusing“. It’s fairly obvious what has transpired in some fairly shady, back room, “arrangements”. It is fairly obvious that whatever “arrangement” now exists between Media Works and John Key and his government is now to their mutual benefit.
The question is; did that $43 million buy just the one hour with Radio Live?
Or is there more to come?
Watch this space.
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Additional reading
Key’s six million dollar man – Steven Joyce
Key changes tack over meeting with broadcaster
Wikipedia – MediaWorks New Zealand
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Naughty Americans told off…
… by wealthier, more fiscally prudent Communist China?!
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This has to be the greatest irony since… since… oh, it simply is! America – the home of capitalism, free enterprise, and republicanism – being counselled by another sovereign nation that is nominally a one-party, communist, centrally-planned state to pull it’s socks up and sort out it’s economic affairs?!?!
I bet our American cuzzies never saw that coming when the Berlin Wall was torn down in 1989, and the West declared victory over communism soon after?!
Next thing you know, and Russia will be criticising America over their use of water-boarding torture-techniques against detainees at Guantanamo Bay…
God, I love the human race.
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