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Posts Tagged ‘The Hobbit’

John Key – we will not be held to ransom!

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11380618-Modern-Janus-with-two-masks-isolated-on-white-backgground-Stock-Vector

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When news of the kidnapping of Australians and a New Zealand citizen in Nigeria hit our headlines, our esteemed Dear Leader’s response was unequivocal;

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John Key - NZ won't pay ransom for Kiwi kidnapped by gunmen in Nigeria

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Key was adamant;

“Our very strong policy is not to pay a ransom and our reason for that is we think if we paid a ransom, we’d potentially put a bounty on any New Zealander’s head who travels to a dangerous part of the world, and it potentially makes the situation worse.”

Our Leader was not for turning. Key does not cave in to pressures.

Or, so it seems…

In October 2010, the country was “rocked” with news that that  the Hobbit movies would be “taken away” from New Zealand;

Jackson’s company, Wingnut Films, said in a statement that Warners representatives were coming to New Zealand next week “to make arrangements to move the production offshore” because “they are now, quite rightly, very concerned about the security of their investment.”

A week after Peter Jackson’s dire warnings of impending Mordor-like doom, Dear Leader Key intervened and rode like a Ranger to the rescue (in a BMW limousine, not a stallion);

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Key comes through $34m deal sees Hobbit stay in NZ - NBR - Peter Jackson - Warner Bros

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Even the Warner Bros movie execs had  stallions limos provided (at taxpayers’ expense, yet again) when they came-a-visitin’ to New Zealand to collect their $34 million bucks;

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no-decision-yet-in-hobbit-talks-key

 

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Along with $34 million of taxpayer’s money paid over to Warner Bros, the National government passed legislation changing the status of Jackson’s workers from employees, to “contractors”. This lessened the working-conditions of people working throughout New Zealand’s movie industry.

The employment law changes passed through Parliament within forty eight hours – a feat unheard of in New Zealand’s political process. Unions, workers, and the public had no say in the matter.

As Key said at the time,

“It was a commercial reality that without this [law] change, these movies would not be made in New Zealand.”

So the sovereignty of New Zealand’s Parliament was not ransomed by Warner Bros to gain $34 million plus a change in our labour laws?

Note: On 21 December 2010, two months after Jackson declared that there was an imminent threat to losing The Hobbit to another country, he conceded that no such “threat” existed;

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Peter Jackson Actors no threat to Hobbit - Warner Bros

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Three years later, Rio Tinto threatened to close it’s Tiwai Point aluminium smelter if it’s demands were not met;

Mining giant Rio Tinto has rejected the Government’s offer of a short-term subsidy to continue running the Tiwai Point aluminium smelter.

Instead, it has gone back into negotiations with electricity supplier Meridian to try and get a better deal.

If no deal is made, Prime Minister John Key says the smelter, 79 percent owned by Rio Tinto and 21 percent owned by Japanese company Sumitomo, could be shut down in about five years.

In February 2014, National conceded to Rio Tinto’s demands that it’s electricity subsidies be increased. A further ‘sweetener’ of $30 million of taxpayer’s money was paid over to the smelting multi-national;

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pm-defends-30m-payout-to-rio-tinto

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As Key said at the time;

“If Tiwai Point had closed straight away then hundreds and hundreds and hundreds of jobs would have disappeared and the Greens would have said the Government doesn’t care about those workers and is turning their back on them so they really can’t have it both ways.”

This was echoed by Finance Minister, Bill English;

“The $30m was a ‘one-off incentive payment’ to help secure agreement on the revised contract because of the importance of the smelter to the stability of the New Zealand electricity market.”

So the jobs of eight hundred jobs in Southland were not ransomed by Rio Tinto to gain $30 million plus cheaper electricity rates?

John Key says his government will not pay ransom to extortionists?

His track record proves otherwise.

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References

Fairfax media:  John Key – NZ won’t pay ransom for Kiwi kidnapped by gunmen in Nigeria

Hitfix:   ‘Hobbit’ Crisis – Peter Jackson warns film could leave New Zealand

NZ Herald: PM defends $30m payout to Rio Tinto

Fairfax media:  Govt pays $30 million to Tiwai Pt

Previous related blogposts

The real reason for the GCSB Bill

Muppets, Hobbits, and Scab ‘Unions’

And the Oscar for Union-Smashing and Manipulating Public Opinion goes to…

Peter Jackson’s “Precious”

The Mendacities of Mr Key #9: The Sky’s the limit with taxpayer subsidies!

The cupboard is bare, says Dear Leader

Government Minister sees history repeat – responsible for death

The Mendacities of Mr Key # 16: No one deserves a free tertiary education (except my mates and me)

The Corporate Welfare of Tiwai Point – An exercise in National’s “prudent fiscal management”?

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KickingThe HobbitRGB

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This blogpost was first published on The Daily Blog on day month year.

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The Mendacities of Mr Key #9: The Sky’s the limit with taxpayer subsidies!

20 February 2015 3 comments

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key and skycity

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We all know the story by now; how Key admitted to discussing a convention-centre deal over  dinner with Skycity executives on 4 November 2009,

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

The lack of transparency in the deal-making process was subsequently criticised by the Auditor-General in February 2013. Toby Manhire from The Listener listed ten quotes outlining the AG’s dissatisfaction with Key and his officials’  behaviour;

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

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

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

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

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

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

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

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

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

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

Key’s response, in Parliament was an outright denial;

“Absolutely, and the reason for that, as the member will be aware, is that the Auditor-General’s report was divided into three parts. The first part of it was focused on my involvement, and I was totally and utterly cleared and vindicated in that. That was my only involvement.”

The Auditor General, Phillipa Smith, was less than impressed by Key’s attempts at mis-representing her Office’s report as a ‘vindication’;

”That fact that [the report] took 50 or 60 pages suggests that nothing was entirely clear cut. We have said that we found problems with the process that was adopted and so I think the report speaks for itself.”

Right-wing NZ Herald columnist and National sympathiser, John Armstrong, was trenchant in his condemnation of Key’s comments. On 20 February, 2013, he wrote;

Verging on banana republic kind of stuff without the bananas – that is the only conclusion to draw from the deeply disturbing report into the shonkiness surrounding the Government’s selection of SkyCity as the preferred builder and operator of a national convention centre.

The Prime Minister’s attempt to downplay Deputy Auditor-General Phillippa Smith’s findings in advance of their release yesterday by saying he had not lost any sleep from reading draft copies may turn out to be a costly political miscalculation.

John Key may have escaped personal blame for the serious flaws in the old Ministry of Economic Development’s handling of the convention centre project but the report is far worse than he had been leading people to believe.

He is taking refuge in the report’s assurances that no evidence could be found to suggest “inappropriate considerations”, such as connections between political and business leaders, were behind the final decision for the Government to negotiate with SkyCity as the preferred bidder.

In other words, no corruption. Or at least none that could be found.

Right-wing commentator, Matthew Hooton, was more scathing and pulled no punches;

The procurement process for the Auckland centre was a farce and as close to corruption as we ever see in New Zealand.

As reported by the Deputy Auditor-General, Mr Eagleson – whose best friend and Las Vegas gambling buddy is Mark Unsworth, SkyCity’s Wellington lobbyist – had been conducting private talks with SkyCity through 2009 and early 2010, including about what regulatory relief SkyCity wanted.

Mr Eagleson argued a procurement process was unnecessary and that the government should just go with SkyCity on the grounds no one else could realistically compete.

(Hat-tip: No Right Turn.)

Read Hooton’s full column. It is far more critical and insightful than any left-wing commentator (including myself) has been on this issue.

Even before the AG’s investigation and damning report, Key’s figures of extra jobs resulting from the proposed convention centre were in doubt.

On 3 April 2012, Key stated in Parliament;

“I might add, when we were out announcing that we were doing a deal with Len Brown in Auckland, he was quite a little lamb chops before the election, because Len Brown knew as well that it will create 1,000 jobs in its construction, 900 jobs ongoing, hundreds of thousands of visitor nights for a convention centre, and tourists who will be spending twice as much in New Zealand.”

By June, Key’s claims for “1,000 jobs in its construction, 900 jobs ongoing” were questioned by hospitality and travel specialist analyst, Horwath Ltd. Horwath director, Stephen Hamilton, was blunt;

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

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

“That’s not the number of employees at the convention centre. That’s the number in the whole economy. Some will be at the convention centre, some will be in the hotels and some will be additional taxi drivers.”

[…]

He also questioned the construction job figures, saying: “I’m not quite sure what the source of that 1000 was.”

The original Horwath report said 150 jobs could be created over a five-year construction period for a total of 750.

But the most well-known promise from Key was that the convention centre would not cost tax-payers a cent. In May 2013, Key justified his deal-making with SkyCity by stating;

“The construction of the new convention centre will not cost taxpayers or ratepayers a cent, with SkyCity meeting the full project costs in return for some concessions from the Government.”

Nearly two years later, inflation appears to have  turned “not a cent” into an estimated “$70m to $130m shortfall”, with SkyCity hustling National for a tax-payer bail-out.

On 10 February, Key appeared to have caved to SkyCity pressure to pay a massive taxpayer-funded subsidy to the casino operator;

“I’m keen to see the best convention centre I can for Auckland, because this is a very long-term asset, so I would hate to see some sort of eyesore constructed down town.

There are issues around the construction of it. Obviously you can spend more and get something that looks a lot better, or spend a bit less and get something that looks worse.

In a nutshell, the Government has an agreement with them [SkyCity]. It could make them meet that agreement but the escalation in prices to build the convention centre, which is bigger than was proposed and flasher than was proposed, means there is a hole.

So there are a couple of options. Option one would be to say to Sky City, ‘Build the convention centre exactly at the price that we all agreed, on the conditions of the deal that we agreed’, but it would be smaller I think than we had hoped and less attractive.

Or the second option is to see if there’s any way of filling that hole and to identify how big that hole is, and that’s the process we’re going through.”

By the following day, as a public and media furore exploded in Key’s face, and even his own Finance Minister was cool on the proposed bail-out,  he was forced to do a sudden 180-degree u-turn;

“We agreed a deal at $402 million…our strong preference is that the SkyCity convention centre is built and paid for by SkyCity.”

It seems that the public and media have become weary of Key’s continual back-tracking; broken promises; and often outright lies.

This was not the first time that Key had promised the public one thing – and then delivered something else. In October 2010, as an industrial dispute erupted between SPADA and Actor’s Equity, there were threats that Peter Jackson’s “Hobbit”  movie project would be moved off-shore (an empty threat as Jackson later revealed).

On 26 October, Key was telling the public that his government would not be paying extra incentives to Warner Bros and that there would be no “bidding war” with other countries to provide greater incentives to the U.S. movie industry;

“If we could make the deal sweeter for them that would help; that’s something we would consider… but we can’t bridge the gap that is potentially on offer from other locations around the world. We’re not prepared to do that and… I don’t think the New Zealand taxpayer would want us to do that.”

When asked about any possible taxpayer subsidies, to match other countries incentives, he added;

“It’s not in the tens of millions, put it that way. There’s a lot of noughts.”

Key was  adamant; Warner Bros would not screw another cent out of the New Zealand tax-payer. There were already generous tax breaks in place. So said Dear Leader at 11.45am, on the morning of 27 October;

“They’ve got movies to make and in the end, money talks in Hollywood. That’s just the way it works. We can’t stop other countries around the world putting up much better and more financially-lucrative deals. If it’s just simply a matter of dollars and cents, I’m just not going to write out cheques that New Zealand can’t afford.”

By 7.38pm – barely eight hours later – Key had pulled out the taxpayer chequebook,

Tax rebates will also be changed for Warner Bros, which will mean up to an extra $NZ20.4 million per movie for Warner Bros, subject to the success of the movies…

… The Government will offset $NZ13.6 million of Warner Bros’ marketing costs as part of the strategic partnership.”

As Key lamely explained,

 “It was commercial reality. We did the business.”

The subsidy that was supposedly “ not in the tens of millionsbecame a $34 million tax-payer funded gift to Warner Bros  – on top of a 15% tax-break given to the movie industry – a tax-break not available to any other industry in this country.

Key had caved to the movie moguls from Hollywood, and the tax-payer would foot the bill.

Three years later, the next corporation to hold a “gun” to Key’s head and extort millions in tax-dollars was Rio Tinto.

As State Owned powerco’s were being partially privatised, the multi-national corporation demanded their electricity-supply contract be “re-negotiated” and tax-payer “assistance” to keep the smelter at Tiwai Point  afloat during low aluminium prices – or else the facility would be closed. The threat was the loss of 800 jobs (some claimed indirect jobs up to 3,000) and economic activity that was claimed to be 10% of Southland’s GDP.

With the possible closure of the smelter – which uses 15% of the country’s electricity – the price of power would collapse, making shares in Meridian, Genesis, and Mighty River Power worth only a fraction of their float price.

Key bravely asserted  on 3 April 2013  that government and the New Zealand tax-payer would not  be “held hostage” to Rio Tinto’s threats of closure;

“It’s quite possible that that power could be used either by new ventures that come to New Zealand or, alternatively, it would allow some less productive assets to be closed down or it would allow New Zealand not to build as much generation as might be required.”

Five months later, on 8 August 2013, Key had surrendered to Rio Tinto’s demands and as well as a deal for increased  electricity subsidies, National handed over a cheque for $30 million to the corporation.

Key justified the tax-payer bail-out and increased subsidies by pointing to saving jobs;

“If Tiwai Point had closed straight away then hundreds and hundreds and hundreds of jobs would have disappeared and the Greens would have said the Government doesn’t care about those workers and is turning their back on them so they really can’t have it both ways.”

However, the loss of thousands of jobs from the economy seems not to have taxed Key’s concerns when it came to thousands of State sector workers being made redundant;

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State-sector job cuts 'will make life tough'

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By February the following year, Rio Tinto  posted a US$3.7 billion profit, and issued a 15% increase in dividends to it’s shareholders. Part of the dividends pocketed by shareholders was no doubt made up of $30 million gifted  from the pockets of hard working New Zealand tax-payers.

Soon after the tax-payer funded bail-out of Rio Tinto, Green Party MP, Gareth Hughes made this remarkably prescient comment;

“Treasury told National right from the start ‘don’t give them any money’ – it just means every corporation will have its hand out for public money whenever they have any leverage over the Government.

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Is that how you want your government to govern? Do you want your government playing fast and loose with public money; using your cash as a bargaining chip to cut deals over the phone with multi-nationals every time it finds itself backed into a corner?”

I can answer Gareth’s question: the next corporation with it’s hand out is SkyCity.

John Key plays fast and loose  with tax-payers’ money – not to save jobs – but to present an appearance to the public that National is “saving” jobs. It is a matter of the public’s perception he is focused on.

If that involves handing out cheques to Warner Bros, Rio Tinto, and now possibly SkyCity – he will do it.

This is the party that prides itself on being a “sound, prudent, fiscal manager” of the government’s books. Except that New Zealand governments have not engaged in this kind of  tax-payer funded largesse since Supplementary Minimum Prices were paid to farmers in the 1960s and 1970s.

That, to, was initiated by the supposedly pro-free market National Party.

Which leads on to an interesting situation regarding this government; it’s lip-service to the “free market” and supposed hands-off by the State. Committed right wing National/ACT supporters should be asking themselves three very pertinent questions:

  1. Is it ok if future Labour governments intervene and gives subsidies to various businesses as National has done?
  2. Does on-going State intervention by this National government signal the end of the neo-liberal experiment?
  3. Has National’s intervention in the “marketplace” illustrated the failure of neo-liberalism?

One thing, though, should now be clear to all; Key will say one thing, and then renege and do completely the opposite if it suits him politically.

One would think that any self-respecting journo from the media (no, not you, Mike Hosking) these days would be asking Key a very simple question;

“Mr Prime Minister, you have issued statements in the past and then flip-flopped months down the track. Why should we take anything you say at face value value, when you have back-tracked so many times previously?”

Put another way;

“Mr Prime Minister, you’ve said what you intend to do. How long before you change your mind when it becomes convenient to do so? You do have ‘form’, you realise?”

Or, even more bluntly;

“Mr Prime Minister, how long will this decision last? Days? Weeks? Six months?

I’ll leave it to esteemed members of the Fourth Estate to frame their questions in a suitable manner.

Just don’t be expecting an honest answer.

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Opening of Masu at SkyCity Grand Hotel, L to R, Nigel Morrison, Julia Smith Bronagh Key and PM John Key, October 12th 2013

Opening of Masu at SkyCity Grand Hotel, L to R, SkyCity CEO Nigel Morrison, Julia Smith Bronagh Key and PM John Key, October 12th 2013

Image acknowledgement: “The A List

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Postscript 1

As I wrote on 6 February;

In terms of past events; past scandals; and past instances where the PM has been caught out – it is by no means the worst.

This time, however, matters have reached a critical flash-point. The media has awoken to a smell of a government on the defensive and where Dear Leader has pushed the envelope once too often. Journalists and media commentators are no longer as tolerant;  no longer awed; and no longer willing to be mollified by a popular prime minister.

The Shipley Factor has kicked in.

At this point, nothing that National does will counter the  same style of growing clamour of criticism it’s predecessor faced in the late ’90s.

Nothing that has happened since then has caused me to resile from my earlier expressed belief that Key’s current administration is terminal.

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Postscript 2

‘Natwatch’ from The Standard wrote on 12 February;

“The focus group results are in and John Key is backing off from the Government injecting further money into the SkyCity convention centre.”

Which probably makes more sense than anything else this shabby government has done since 2008.

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References

NZ Herald:  SkyCity deal was PM’s own offer

Office of Auditor General: Skycity

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

Parliament Today: Questions and Answers – June 4 2013

Fairfax Media: Auditor-general backs Sky City report

NZ Herald: John Armstrong: Sky City report ‘deeply disturbing’

NBR: Close to corruption

Parliament: Prime Minister—Statements and Statements Made on His Behalf

NZ Herald:  Puzzle of Key’s extra casino jobs

Fairfax Media: Govt at odds over SkyCity convention centre

NZ Herald: John Key warns of SkyCity ‘eyesore’ if more money is not found

NZ Herald: John Key backtracks on taxpayer cash for SkyCity convention centre

NZ Herald: Sir Peter – Actors no threat to Hobbit

Fairfax Media: Key – No Hobbit bidding war

NZ Herald: PM – I’m not going to write cheques NZ can’t afford

NZ Herald: Hobbit to stay in NZ

NBR: Key on Hobbit deal: ‘It was commercial reality. We did the business.’

NBR: Key comes through: $34m deal sees Hobbit stay in NZ

TVNZ News: Relief in Southland over Tiwai Point deal

Radio NZ: Tiwai Point closing could have some advantages – PM

Otago Daily Times: PM defends Tiwai payout

Fairfax Media: State-sector job cuts ‘will make life tough’

RadioLive: Why John Key handed $30 million of your money to Rio Tinto

Te Ara:  Government and agriculture – Subsidies and changing markets, 1946–1983

Additional

Fairfax media: SkyCity’s ‘fair deal for all’ questioned (hat-tip Mike Smith, The Standard)

Previous related blogposts

Muppets, Hobbits, and Scab ‘Unions’

And the Oscar for Union-Smashing and Manipulating Public Opinion goes to…

Peter Jackson’s “Precious”…

National under attack – defaults to Deflection #2

Dear Leader caught telling porkies (again)?! (part rua)

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

Doing ‘the business’ with John Key – Here’s How (Part # Toru)

The Maori Party, the I’m-Not-Racist-Pakeha Party, the Gambling-My-Money-Away Party, and John Key’s Party

ACC. Skycity. NZ Superannuation. What is the connection?

Skycity: National prostitutes New Zealand yet again

Witnessing the slow decay of a government past it’s Use-By date

The Mendacities of Mr Key #8: A roof over your head, and boots on the ground

Other blogs & blogposts

Imperator Fish: It’s about friends helping friends

Insight NZ: National splits in two over Sky City bailout

Liberation: NZ Politics Daily – 13 February 2015: SkyCity

Local Bodies: SkyCity’s Glorious Deal

No Right Turn: More money down the drain

No Right Turn: “Close to corruption”

Polity: Fleeced

Polity: Mo’ money

Polity: Small on “free” convention centre

Polity: I agree with DPF, Jordan Williams, and (mostly) with Matthew Hooton, too

Polity: Why all governments are bad at commercial deals

The Civilian: Disappointment as meteor misses Sky Tower

The Daily Blog: Key’s SkyCity Scam is a dirty deed done relatively expensively

The Daily Blog: Brenda McQuillan – A Problem Gamblers View of the Deal

The Dim Post: On Hooton on Sky City

The Dim Post: Win by not playing

The Standard: The SkyCity Deal

The Standard: Sky City’s playing us for suckers

The Standard: Key is in reverse gear about Sky City

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This blogpost was first published on The Daily Blog on 15 February 2015.

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Corporate Welfare under National

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begging-corporations

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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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mum-not-prepared-to-wait-and-die

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.

[…]

“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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https://fmacskasy.files.wordpress.com/2013/03/headless-chickens.jpg

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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.

[…]

“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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= fs =

Why a Four Year Parliamentary Term is not a Good Idea

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it's time to meet the muppets of the government

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Three years or four?

John Key has made suggestions to  reform certain  aspects of the Parliamentatry electoral cycle,

  • A fixed date for elections, such as our American cuzzies have
  • And extending the Parliamentary term from three to four years

The first suggestion – having a fixed date for elections – is sound. Anything that takes a wee bit of power away from politicians should be welcomed.

On that basis – anything that takes a wee bit of power away from politicians should be welcomed – extending the Parliamentary term from three to four years is one that fills me with disquiet.

I’ve heard the arguments for extending the Parliamentary term,

  1. It’s more efficient
  2. It gives government more time to achieve things
  3. Governments spend the third year of their current term in election mode to win the next election

None of those three arguments convinces me.

1. It’s more efficient

So is the One Party State; an autocratic ruler; or a  Parliamentary term of ten or twenty years . But would we be any better of, in terms of  public participation democracy? (Think: Putin in Russia.)

2. It gives government more time to achieve things…

That statement is never completed. It gives government more time to achieve – what? What incredibly complex, radical reforms are there that require an extra year (or more) for a government to have more time? What does Key have in mind that demands a four year term?

Remember that Select Committees work in unison, not one at a time, and Legislation can be passed in as little as 48 hours – as “The Hobbit Law” showed us (see: Helen Kelly – The Hobbit Dispute) – not that I’m advocating legislative changes conducted at warp speed.

Perhaps governments might have “more time to achieve things” if time wasn’t wasted with petty point-scoring in the Debating Chamber?

3. Governments spend the third year of their current term in election mode to win the next election

Perhaps a government might not have to spend the entire third year in “campaign mode” if, in the preceding two years,  they worked with the people and not against them?

A phrase comes to mind…

By their works ye shall know them.

A good government shouldn’t have to spend the entire third year in “election mode”. A bad government will never have enough time to campaign for re-election.

It’s not the length of time that should matter to a government, but what they achieve with it. If the people approve, a good government will be returned with a decent majority. A good government should have nothing to fear from the electorate.

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beehive

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Looking at the last 30 years, would I be inclined to give politicians (of all hues) an extra year?

Not bloody likely.

And I’m not referring to the scandals; the cronyism; unpopular asset sale programme; rising unemployment; cynical beneficiary bashing; growing child poverty and widening  income/wealth gap.

I’m referring to attitude.

John Key wants us to trust him with an extra year in power.

But has he given us reason to trust him?

If anything, Key’s attitude of dismissive, casual arrogance does not reassure us that he (or his successors) would use additional political power without a corresponding rise in said arrogance.

To remind the reader of what John Key really thinks of us and his critics…

1. Critics

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key stephenson

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In May 2011, journalist journalist Jon Stephenson, wrote a scathing expose of New Zealand’s involvement in Afghanistan and questioned whether they were complicit in torture.

The article outlined two instances last year where SAS forces allegedly captured suspects and handed them to Afghanistan authorities, including the Afghan secret police, the National Directorate of Security, which has a reputation for torturing prisoners.

New Zealand has signed several international conventions outlawing the inhumane detention of prisoners, including torture.

Source: PM attacks journalist over SAS torture claims

When challenged, Stephenson offered,

“I’m happy to put my information before an inquiry. Any fair or impartial inquiry will show that they are the ones misleading the public. Not me.”

Source: IBID

It which point Key jumped in with this derisory response,

I’ve got no reason for NZDF to be lying, and I’ve found [Stephenson] myself personally not to be credible.”

Key then attempted to smear Stephenson’s character by accusing him of making a bogus phone call.

We should not forget John Key dismissal of  Nicky Hager’s book, on CIA involvement in NZ military activities in Afghanistan. Key said,

I don’t have time to read fiction.”

Key claimed  that the book contained “no smoking gun”, just supposition, which, “makes it business as normal for Nicky Hager”. (Despite the book having 1,300-plus footnotes to referencing documentation.)

National ministers also seem to have little hesitation in attacking their critics in quite nasty ways. Remember Natasha Fuller,  Jennifer Johnston,  Bradley Ambrose, and even Bomber Bradbury who fell foul of the system when he dared criticse Dear Leader?

If there are “trust issues” here – they seem well founded.

2.The Poor & Unwise “life” choices

Key’s disdain of those who do not meet his world-view was perhaps best summed up on 17 February, 2011, when he was reported as making these comments,

When Labour’s social development spokeswoman Annette King asked about Salvation Army reports of high demand for food parcels, Mr Key responded by saying it was true that the global recession meant more people were on benefits.

But it is also true that anyone on a benefit actually has a lifestyle choice. If one budgets properly, one can pay one’s bills.  And that is true because the bulk of New Zealanders on a benefit do actually pay for food, their rent and other things. Now some make poor choices and they don’t have money left.

Source: Food parcel families made poor choices, says Key

Well, at least we know the real thoughts of the boy from a subsidised State house, raised by a solo-mum receiving state assistance, and who had the benefit of a free, taxpayer funded University education.

3. Public Opposition

On 4 May 2012,  over five thousand people took part in a peaceful,  anti-asset sales Hikoi to Parliament,

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Aotearoa is not for sale hikoi - anti asset sales march   - wellington - 4 May 2012

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Key’s response was instructive,

How many people did they have? John Key asked reporters. “Where was it? Nope wasn’t aware of it.”

Key says the National Party has a clear mandate to proceed with privatising some state assets.

“Well over a million New Zealanders voted for National in the full knowledge we were going to undertake the mixed ownership model,” he said.

“So look, a few thousand people walking down the streets of Wellington isn’t going to change my mind.”

Source: Key unfazed as protesters descend on Parliament

Nearly a year later, on 12 March, a 392,000-plus signature petition was presented to Parliament. The petition  was  signed by ordinary New Zealanders who wanted nothing more or less than a say in their future.

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

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Key’s response?

Key said of the opposition petition you could be as sure as little green apples [that] huge numbers of them are not bona fide names on the list” and would have to be struck off.

“They’ve probably taken over a year to get maybe 300,000 names, we’ve had 285,000 pre-registrations in a matter of days”.

Source: Government to ignore asset sales referendum

And according to Green Party co-leader, Russell Norman, Key further disparaged New Zealanders who signed  the petition by saying,

…that the Prime Minister has said the people who signed this are children and tourists….

Source: IBID

Charming.

Key forgot to add, “let them eat cake”.

Unbridled Power?

Never forget that we are governed by an “elected dictatorship”,

  • There is no Upper House to scrutinise legislation from governments.
  • There is no written constitution to safeguard our interests.
  • Referenda have all the ‘bite’ of a toothless octagenarian (not that I support binding referenda – especially without Constitutional safeguards to protect the rights of minorities).
  • There are no mid-term elections; right-of-recall; Presidential Veto; or any other controls over elected representatives.

Once elected, unless a Member of Parliament is found guilty of a criminal act, we have zero control over them.

The upshot?

Just because this  government  is still (apparently) popular with the aspirationists and middle classes, is not a reason  to trust Key – or any other politician for that matter.

There have been too many broken promises; secret agendas; and bitterness from raised expectations that were soon dashed.

It is a truism that trust has to be earned.

And thus far, the glimpse that we’ve had into our current Prime Minister’s persona, is not one that fills me with confidence or trust.

New Zealanders may wish to reflect carefully before giving politicians any more power. It may be ok when it’s “your man (or woman) in power”. You may feel different if it’s the Other Guy running the country.

The issue simply boils down to one simple question;

How far do you trust the buggers?

This blogpost was first published on The Daily Blog on 15 March 2013.

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References

Wikipedia: Election Day (United States)

NZ Herald: Food parcel families made poor choices, says Key (17 Feb 2011)

NZ Herald: PM attacks journalist over SAS torture claims (3 May 2011)

NZ Herald: Charities’ food handouts at record after Govt cuts (18 Oct 2011)

TVNZ: Key unfazed as protesters descend on Parliament (4 May 2012)

Fairfax media: PM John Key Wants Four-Year Term For Parliament (7 Feb 2013)

Fairfax media: Government to ignore asset sales referendum (12 March 2013)

 

= fs =

National Party Corporate welfare vs real welfare

People welfare, bad!

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It’s fairly obvious what National thinks of New Zealanders who find themselves on the welfare safety net. Especially when those on welfare are there because of a global financial crisis brought on by unfettered,  laissez-faire capitalism (aka naked greed)  hitting a wall, and sending economies worldwide deep into recession.

But never mind. National has an answer for such dire events.

It’s called,

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Corporate welfare, good!

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Even as National continues to persecute, demonise, and blame the unemployed, solo-mothers (but never solo-dads), invalids, widows, etc, for their lot in life (because as we all know, the unemployed, solo-mothers (but never solo-dads), invalids, widows, etc, were directly responsible for the Global Financial Crisis that began in Wall Street’s boardrooms) – John Key and his cronies continue to lavish truck-loads of tax-payers’ money on corporate welfare.

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1. ETS Subsidies for farmers

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In June 2012, Business NZ CEO, Phil O’Reilly, wrote in the NZ Herald,

There has been a lot of redesign and tinkering with the ETS.  Established in 2008, reviewed and amended in 2009, reviewed again last year and about to be amended again – it’s no wonder that businesses involved in the scheme have review fatigue.”

See:  Phil O’Reilly: Emissions trading scheme must bring investors certainty

Mr O’Reilly may well complain. But he is unfortunately too late. On the morning of  3 July, Dear Leader John Key announced that  the 2015 postponement (of elements of the ETS) had formally become an “indefinite postponement” (ie;  gone by lunchtime on that day).

Key stated,

We’re not prepared to sacrifice jobs in a weak international environment when other countries are moving very slowly.”

See:  Slow economy puts ETS plans on hold

Yet that hasn’t stopped National from levying ETS on the public. No fears there, evidently, of  impacting on the pockets of ordinary Kiwis, and in effect, susidising farmers to the tune of  $400 million per year since 2009.

In effect, this is a transfer of wealth from  ordinary taxpayers to polluters [edited]. After all, what else can it be called when the public have to pay for an ETS – but farmers, industries, coal & oil companies, etc, – the very groups that produce CO2 and methane –  are exempt?

See:  Public to pay tab for polluters

So much for Tim Groser – Minister for Climate Change Issues and International Trade – insisting,

The National-led Government remains committed to doing its part to reduce greenhouse gas emissions, but it is worth noting that we are the only country outside Europe with a comprehensive ETS.”

National’s “committment” to reducing greenhouse gas emissions  has gone up in smoke and carbon dioxide.

As the Sustainability Council NZ reported in November 2009,

  •  Households would bear half the total costs under the amended ETS
    during its first five years (52%),
    while accounting for just a fifth of all
    emissions (19%). Together with small-medium industry, commerce and
    services, and transport operators, they would pay 90% of the costs resulting
    from the ETS during CP1 while being responsible for 30% of total emissions.
  •  Pastoral farmers would gain a $1.1 billion subsidy and pay an amount equal
    to 2% of their fair share of the Kyoto bill during CP1, while large industrial
    emitters would gain a $488 million subsidy (at a carbon price of $30/t).

See:   ETS – Bill to a Future Generation

On top of that, National appears unwilling to release actual financial data when it comes to the ETS.  Critical data has been withheld, as the Sustainability Council discovered last year,

Governments are legally required to provide an update of the nation’s financial position just before elections but those accounts do not recognise carbon obligations until they are in an international agreement, hence there is nothing concrete on the books until after 2012.

See:   Simon Terry: Carbon books reveal shocking gaps

And the Council report goes on to state,

The Sustainability Council requested a copy of those projections eleven weeks ago.
After various delays, the Treasury delivered its projections the day before the election
– late in the afternoon and with much of the key material blanked out.
What arrived is the carbon equivalent of a finance minister presenting a budget and
saying:

“Here is the estimated tax take for the next 40 years, and here is the total
spending. But we are not going to tell you how much tax is coming from any sector,
and we are certainly not going to tell you how tens of billions of dollars worth of
carbon subsidies and other payments are expected to be distributed. And no, we are
not giving you the figures for the past four years of the ETS either”.

It looks to be the closest thing in the public domain to New Zealand’s carbon books
and yet: future agricultural emissions are a state secret; future deforestation rates are a
state secret; even projected fossil fuel emissions are a state secret – all blanked out. “

See:  Show Me the Carbon Money

So what do we have here?

  1. Ongoing subsidies to polluting industries, with said subsidies paid by you and me, the taxpayer.
  2. Secrecy surrounding future  ETS  agricultural, deforestation, and fossil fuel emissions.
  3. Constant deferring of including polluters in a scheme that was designed specifically for dirty industries and farming practices.
  4. Importation of  unlimited, cheap,  foreign carbon credits.

Final point:

It seems a crying shame (as well as a fair degree of sheer madness) that we are paying subsidies to industry – whilst  not offering the same deals to  the  generation of renewable energy  and further research into renewable energy options (wind, solar, tidal, etc).

Ironically, the one subsidy that might have helped our economy and environment was scrapped in 2011, making Solid Energy’s biofuel programme uneconomic.  (See: Biodiesel loses subsidy, prices to rise)

Instead, the taxpayer continues to subsidise polluters. On 27 August 2012, National finally ditched agriculture’s involvement in the ETS, giving farmers, horticulturalists, etc, a permanent “free ride”  from paying for their polluting activities. (See: Farmers’ ETS exemption progresses )

This is the inevitable  result of electing a corporate-friendly political party into government.

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2. Subsidies to Private schools and Tertiary Providers

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Subsidies to private tertiary education providers continues to increase,

The Government is investing a further $29.503 million in the Private Training Establishment (PTE) sector over four years. This increases the funding rates for private training providers in line with the Government’s promise to treat them more equitably with public providers. The resulting funding difference is now half of what it was previously. “

See: Tertiary Education Commission – Private Training Establishments

So, if you’re a private company offering to train someone a course in “xyz” – expect a hand-out from a corporate-friendly National.

In the meantime,

  • Student allowances are removed for post-graduate study the parental threshold for accessing allowances is frozen for the next four years.  The Government says the changes will save $240 million in the first year and up to $70 million a year thereafter.  The Budget cuts all funding for adult and community education in universities, saving $5.4 million over four years.

See: Radio  NZ –  Benefits for research, science and engineering

  • It also saves $22.4 million over four years by ending funding used to help tertiary education providers include literacy and numeracy teaching in low-level tertiary education courses...”

See: Radio  NZ –  Benefits for research, science and engineering

  • Sunday Star-Times recently reported one in five young people left school without basic numeracy and literacy skills, despite the future workforce depending on advanced expertise. “

See:  Not adding up on Easy Street

  • Early childhood education subsidy cuts worth tens of millions of dollars are likely to be passed on to some parents through increased fees.

Education Minister Hekia Parata has kicked a total revamp of ECE funding into a future Budget, opting instead to stop cost increases to the Crown by cancelling the annual upward inflationary adjustment in rates.

The subsidy freeze takes effect on the next funding round, stripping about $40 million out of ECE payments to 5258 ECE centres. About 1427 of those centres are eligible for “equity funding,” however, and will get a boost through $49m extra directed to them over four years in a bid to enrol more children from the lowest socio-economic parts of the country.

But the scrapping of an annual inflationadjustment for other centres will be an effective funding cut as inflation pushes the cost of running ECE centres up. “

See:  Parents face burden of preschool squeeze

National’s most recent hand-out went to private school, Whanganui Collegiate,

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Govt ignored advice before private school's integration

See: Govt ignored advice before private school’s integration

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For a Party that advocates the “free market”, it certainly seems odd that they’re willing to throw bucketloads of our taxes at businesses such as private schools.  After all, what is a private school, if not a profit-making business?

And don’t forget Charter Schools – which is the State paying private enterprise/institutions to run schools – whilst making a profit (at taxpayer’s expense) in the process. Why don’t exporters get this kind of support?

That was certainly Gerry Brownlee’s attitude when Christchurch’s post-earthquake housing crisis became apparent,

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Christchurch rent crisis 'best left to market'

See: Christchurch rent crisis ‘best left to market’

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3. Media Works subsidy

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In 2011, this extraordinary story broke,

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Prime Minister defends loan to MediaWorks

Published: 8:28PM Friday April 08, 2011 Source: ONE News

The Prime Minister is defending his decision to loan $43 million of taxpayer money to private media companies.

John Key claims the loan scheme was designed to help the whole radio industry.

But a ONE News investigation has revealed MediaWorks was the big winner after some hard lobbying.

Key is known for being media friendly, but he’s facing criticism from Labour that he’s become too cosy with MediaWorks which owns TV3 and half of New Zealand’s radio stations.

It has been revealed the government deferred $43 million in radio licensing fees for MediaWorks after some serious lobbying.

Key and the former head of MediaWorks, Brent Impey, talked at a TV3 Telethon event.

“I just raised it as an issue but we’d been looking at it for sometime. My view was it made sense. It’s a commercial loan, it’s a secured contract,” Key said.

It’s believed the loan is being made at 11% interest.

But in answer to parliamentary written questions, the Prime Minister said he had “no meetings” with representatives of MediaWorks to discuss the deal.

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.

See: Prime Minister defends loan to MediaWorks

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Aside from another example of Key’s mendacity, when he originally claimed to have had no contact with Mediaworks,

… in answer to parliamentary written questions, the Prime Minister said he had “no meetings” with representatives of MediaWorks to discuss the deal.

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.

See: IBID

… this affair was another example of selective subsidies being offered to some business – whilst others are left to their own devices to survive,

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The axe falls - Industry boss blames cuts on Govt

Source

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We’ve lost 41,000 jobs in the manufacturing and construction sectors over the last five years. To which National’s Minister-Of-Everything, Steven Joyce’s response was,

Nobody’s arguing that being a manufacturer isn’t challenging. In fact, in my history in business, every time you’re in business it’s challenging.

“But going around and trying to talk down the New Zealand economy and talk about a crisis in manufacturing, I don’t think is particularly helpful.

See: Exporters tell inquiry of threat from high dollar

There is no doubt that economic conditions in the post GFC- world are challenging for some firms. The role of Government is to do things that help make firms more competitive and that is what our Business Growth Agenda is all about.”

See: Opposition parties determined to manufacture a crisis

Or Minister for Primary Industries, Nathan Guy saying,

Our trading disadvantage has meant that we need to do more with less, and to work smarter.”

See: Innovation in New Zealand’s Agribusiness sector

To which exporters responded with this,

We’re told to get smarter and I find that irritating and insulting. I’m about as smart as they get in my little field. How the hell do these people get smarter? For a politician to tell somebody else to get smarter – he’s risking his life.”

See: Exporters tell inquiry of threat from high dollar

Not very helpful, Mr Joyce.  Though Opposition Parties may appreciate that you are pushing your core constituents into their waiting arms.

That’s how you alienate your voter-base.

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4. Sporting subsidies

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The Rugby World Cup

  • Prime Minister John Key today announced a $15 million grant for an upgrade of Christchurch’s AMI Stadium for the Rugby World Cup in 2011.

See: Govt announces $15m for AMI Stadium (30 April 2009)

  • Dunedin Mayor Peter Chin says he is “chuffed” the Government will contribute up to $15 million to cover shortfalls in private sector funding for the $198 million Otago Stadium project.

See: Chin ‘chuffed’ at $15m for stadium

  • The Government blew out a $10 million budget to host VIPs at the Rugby World Cup – even though just a handful of foreign leaders attended.

See: $5 million overspend on World Cup VIP budget

  • An extra $5.5 million will be spent on the Rugby World Cup to make sure there’s not a repeat of the chaos that unfolded on the evening of the tournament’s opening ceremony.
  • Including the $350m spent to upgrade stadiums and provide IRB-approved facilities around the country and millions more pumped into infrastructure and preparations, the bill for the tournament has easily surpassed the $400m mark.

See: World Cup ‘absolutely worth’ price tag

Yacht Races

The Major Events Development Fund will invest $1.5 million on each of two Volvo Ocean Race Auckland stopovers to be held in 2015 and 2018 following an announcement today by Economic Development Minister Steven Joyce

See: Govt to support 2015 & 2018 Volvo Ocean Race Auckland stopovers

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Meanwhile, Health Minister Tony Ryall refuses to provide additional funding for specialised medicines for patients with rare disorders. See: Letter from Tony Ryall, 5 December 2012

The message is crystal clear; National will subsidise rugby games and yacht races. But don’t expect help if you discover you have a rare disease.

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5. Warner Bros subsidy

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After Jackson made public noises in October 2010 that ‘The Hobbit’ could be taken offshore, there was a kind of mass-hysteria that pervaded the country.

Warner Bros wide-boys jetted down to meet Dear Leader, who kindly supplied a taxpayer-funded chauffeured limousine to bring the Holloywood execs to Parliament.

Dear Leader said “no more subsidies”.

Nek minit; Warner Bros demanded, and got, an extra $15 million. (see: Govt defends Hobbit jobs claim)

All up, the New Zealand taxpayer coughed up $67 million to give to Warner Bros. (Who sez crime doesn’t pay? Gangsterism obviously turns a healthy profit now and then.)

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Government defends Hobbit subsidies

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The film obviously didn’t do too badly at the Box Office – $1 billion is not too shabby by anyone’s standards,

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The Hobbit hits $1billion mark

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Can we have our money back now, please?

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6.  Broadband subsidy

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Funny isn’t it.   Pro-business lobby groups always complain about State intrusion into the market place… Except when subsidies are being handing out.

One wonders why, if the Free Market” is more efficient than the State, that $1.5 billion in taxes has to be paid to private telcos to do what that they should already be doing.

Perhaps this is why it took the State to build this country’s infra-structure over the last hundred years. Infra-structure such as electricity generation. (See related blogpost: Greed is good?)

Which National is now preparing to part-privatise.

Private companies will soon be owning what taxpayers built up over decades, and which private enterprise was loathe to build in the first place. (If you’re wondering whether I’m referring to state power companies or broadband – there doesn’t seem to be much difference.)

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Meanwhile, back in the Real World!

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Full story

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Dear Leader says,

Some argue that people on a benefit can’t work. But that’s not correct.”

Correct.

Because as Welfare Minister Paula Bennett stated candidly on Q+A on 29 April,

There’s not a job for everyone that would want one right now, or else we wouldn’t have the unemployment figures that we do. “

See:  TVNZ  Q+A: Transcript of Paula Bennett interview

Correct.

Which means that National’s  “reforms” to push 46,000 of  welfare is not just a meaningless exercise (the jobs simply aren’t there) – but is actually a political smokescreen to hide their own incompetance at forming constructive policies for job creation.

Unfortunately, there are too many right wing halfwits and Middle Class low-information voters who readily buy into National’s smokescreen. It’s called prejudice, and means not having to think too deeply on issues,

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Fortunately, it is the job of those on the Left to dispel these unpleasant notions for the Middle Classes. (National’s right wing groupies are a lost cause.)

Let’s start by posing the question; why is welfare for  corporations supposedly a good thing – but welfare for someone who has just lost their job, supposedly bad?

That’s what we need to keep asking the Middle Classes.

Eventually, they’ll start paying attention.

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Frank Macskasy Frankly Speaking Blog

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This blogpost was first published on The Daily Blog on 8 March 2013.

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Additional

Scoop: Where’s National’s ‘corporate welfare’ reform?

Fairfax media: Doubt stalls biofuels growth (14 March 2011)

The Press: Solid Energy ‘wasted millions’ on biofuels (31 Aug 2012)

Southland Times: Biodiesel loses subsidy, prices to rise (30 May 2012)

TVNZ: Prime Minister defends loan to MediaWorks (8 April 2011)

Radio NZ: Data reveals drop in manufacturing, building jobs (22 Feb 2013)

Previous related blogpost

Once upon a time there was a solo-mum

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

Acknowledgements

Tim Jones of  Coal Action Network Aotearoa

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John Key – am I detecting a seismic shift in public attitude?

10 February 2013 22 comments

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5923658

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Is Dear Leader  losing his touch? He doesn’t seem quite so “dear” to some people any more…

  • The Novopay foul-up just gets worse and worse and worserer with each passing pay cycle. Wouldn’t it have been cheaper to just delegate the pay-system into the hands of Lotto? The results would’ve been about the same.

 

  • Education Minister, Hekia Parata, screws up on a semi-regular basis. Does Key hand her the ceremonial sword and with a smile tell her, “you know what to do with this”. Nah, he annoints her as National’s “most effective communicator. Has anyone ever seen 4.4 million people do a collective face-palm?! Meanwhile, Joyce is the new de facto Minister of Education and Parata is given duct-tape to put over her mouth. This, for National, is seen as a “solution”.

 

  • Unemployment keeps going up and up and up and up… And when the stats cannot get any worse, they do a massive West Auckland-style u-turn and wheelie burn-out… Unemployment is no longer up – people have given up banging their heads against a brick wall. So the stats are now a mess. What they do indicate is that people are turning off from looking for work.  It must be depressing getting knocked back time after time after time after… And if you think it’s bad now, in bright sunny summer – wait till the gloom and shortened days of Winter really kick in with mass-depression.

 

  • Manufacturing and exporters are screeching like banshees that the high Kiwi Dollar is sending them to the wall… and Steven Joyce smiles benignly and sez, “things are challenging”. Not helpful, Mr Joyce. Not one bit.

 

  • The country’s third biggest construction company goes to the wall and the Nats do… nothing. Question: at a time when we have to rebuild the second (or third) largest city in the country – how does a fricken construction company manage to go into receivership?!?! Someone explain this to me. Wouldn’t that be like a water-tanker truck in the Saharan desert unable to sell water???

 

  • We have a critical housing shortage in the country… A shortage of housing?! But, but, but… isn’t the free market supposed to prevent these shortages??? What goes on here?

 

  • We have a shortage of skilled tradespeople, IT specialists;  healthcare professionals… whilst on the other hand, we have 175,000 unemployed. Hmmmm… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… why don’t we-? Nah. What a silly idea. For a moment there I had this ridiculous thought in my mind about re-training 175,000 unemployed to meet our skills shortages… Bugger me, where do I get these daft notions from.

 

  • National doesn’t want to build housing for New Zealanders. They say it’s up to the Free Market to do this. Government, sez Joyce, Brownlee, Key, et al, say that it’s not the role of government to offer subsidies or state housing. Unless you’re a private school. Or farmers wanting irrigation systems. Or Rugby World Cup. Or investors in a finance company. Or insurance companies. Or a movie producer – especially a foreign one. Then there’s plenty of money. Whoopie – lolly scramble!

 

  • But just don’t get silly over housing.

 

  • Steven Joyce wants to put the bulldozers and excavators into our conversation lands and have deep-sea drilling off our coast, in deep waters… because, you know, we don’t mind if the remaining few native forests in New Zealand are destroyed for the benefit of foreign investors. Or that we run a risk similar to the horrendous disaster in 2010 in the Gulf of Mexico which spewed millions of barrels of oil into the Caribbean. After all, the oil companies will look after us… *snort!*

 

  • Because National is not a hands-on government to create jobs and support local businesses. But if you’re a private school or Warner Bros, then the question becomes, “How much did you want me to make that cheque out for?”

 

  • Tony Ryall wants $30 million shaved from the Health budget (where else will we get the cash to subsidise those lovely furry Hobbit movies?!). So  grommett operations for kids may be cut. Hey who needs a pesky grommett anyway – and did I say how cool Hobbits are…? And of course those seven New Zealanders who are suffering from the terminal Pompe disease… they aren’t as cool as Hobbits.

 

There’s more.

But I think you, the reader, get’s the point. (Unless you’re a dedicated National/ACT supporter – in which case don’t you just lerrrve those cute Hobbits?)

But it seems that the bad news and continuing incompetance and just sheer lack of bright ideas from National is becoming too much for even National’s traditional cheer leaders…

Fran O’Sullivan wasn’t impressed. Not by a long shot. In fact, she seemed a bit ‘put out’ by Key’s inaction (as if it had suddenly dawned on her),

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Time for Key to call an economic summit

Full story

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For Fran O’Sullivan – who is widely noted as a bit of a Nationalphile – to be chiding her beloved Dear Leader indicates that even his adoring legion of glassy-eyed admirers are starting to feel frustration. When O’Sullivan criticises Key for “waffling” and then berates Key for “simply shrugging his shoulders” – then we know that not only is the honeymoon well and truly in the past, but the ‘marriage’ is verging on a trial separation.

O’Sullivan didn’t mince words when she bluntly stated that “faith is no excuse for a failure to act” and demanded that  “it’s time, surely, for Key to call an economic summit to address the issues New Zealand faces“.

Good call, Fran.

A few years too late, but hey, some of us are a bit slower than others.

Meanwhile…

Right wing/all-over-the-place  media “personality” and talkback host, Kerre Woodham wrote an extraordinary column on 23 December, last year. Had it been written at any other time than two days before Christmas – when 99% of the populace is bleary eyed with the so-called “Festive Season” (said through gritted teeth, I might add) – her words would have had far more clout.

In fact, I could just barely recall her column piece and retrieve it from my Bookmarks (filed under WTF?). For the reader’s edification – read and enjoy (if you’re a National/ACT supporter you may want to put down your deluxe, Jackson-autographed, mink-lined Hobbit and read this bit),

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Kerre Woodham - Nats run out of petrol

Full story

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If Kerre Woodham speaks closer for the Middle Classes, then National should be in high-gear panic mode by now. Her attitude was summed up thusly,

I thought John Key said that by cutting income tax rates we would be able to stimulate the economy. Guess that didn’t work. I thought Key said that he would be able to stem the flow of New Zealanders to Australia by building a competitive economy and offering after-tax earnings on a par with those across the ditch. Well, that hasn’t worked, either.

 There are now more people moving to Oz under National than there were under Labour. But instead of ‘fessing up and conceding nothing the Government has come up with has worked, the Prime Minister has produced a classic example of Orwellian double-speak.

Akshally, says Key, moving to Australia is a GOOD thing for New Zealanders to do. They’ll see the world, gain experience – no, just like everything else, Key is comfortable with the numbers of Kiwis farewelling this country.”

Source: IBID

That, readers, was the sound of a Middle Class person coming to the realisation that our esteemed Dear Leader; dodgy Party; and worthless policies – are a fraud.

That, readers, was the realisation by a Middle Class person that National was not about to meet their aspirations.

It is the same sound of  National’s ‘House of Cards’ crashing that we heard in the late 1990s. A crash which culminated in National’s election defeat on 27 November 1999.

When bene-baiting right-wing talk-back hosts like Woodham can make statements like,

Well, they may know how to make money for themselves but they don’t seem to have any answers when it comes to making the country richer.

If, after four years of government, the best strategy they can come up with to produce a surplus is to raise the fuel tax, they are devoid of initiative and bereft of imagination.”

Source: IBID

– then we know that the Middle Classes are starting to wake up. And they’re noticing that the Emporer is naked and it ain’t a pretty sight.

Next…

Businesspeople are running as fast as their feet can carry them – to a joint inquiry run by the Opposition Parties in Parliament – and it’s a brave/stupid/both National Government that ignores the signals,

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Exporters tell inquiry of threat from high dollar

Full story

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When a businessman – in this case managing director Gordon Sutherland –  says,

We know that – we’ve known that for a very, very long time. Of course we get efficient, of course we try and work as hard as we can to be efficient – it’s the only way we can exist. It drives me insane when people say, ‘Get efficient’. What do you think we are – idiots? We’re not.”

– then the Nats are treading on very thin ice to ignore such messages.

National is supposed to the the Party for business. So when business people begin to turn on the Nats – that’s a pretty bloody big signal that it’s the beginning of the end for this government. And considering Key has stated he will not lead National from the Opposition benches (see:  Key says he’ll quit politics if National loses election) – it’s ‘bye-bye’ Dear Leader.

Once he’s gone, the Nats will have left in their wake a poorly performing economy; high unemployment; growing income divide; higher child poverty; businesses about to collapse (Mainzeal already gone); and a raft of other tragic consequences.

The 2011-14 Key-led  administration will be remembered in the same way many New Zealanders view with derision the Bolger/Shipley-led National government from 1996-99.

Going by the next story, however, Key is already despised by a wide sector of the community.

But more to the point, that hostility is no longer held in check and is being voiced out loud,

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Mixed reception for Key at Big Gay Out

Full story

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What we are seeing now seems to be a  seismic shift in public opinion on Key and National. But more importantly,  where only a year ago people were reluctant to voice their dissatisfaction or hostility in public – now that shyness is disappearing. People are pissed off and they know who to vent at,

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200204-3x2-340x227

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In 2008, Key raised levels of expectation to new heights (see: A fresh start for New Zealand).

With promises of higher wages and other warm-fuzzy, populist nonsense, people voted for him in droves. Their expectations were raised as Key’s supreme self-confidence;  personal rags-to-riches story; and plausible rhetoric made them line up and put their trust in him.

The trouble with raised expectations, though, is that failing to deliver “the goods” results in an inevitable backlash. Not just at the ballot box, but in terms of vitriol. We tend to pull people of a pedestal mighty quick, if they stuff up.

National’s failure to meet those expectations may already be a foregone conclusion, as NZ Herald columnist, John Armstrong wrote on 22 December last year,

A slight sense of desperation was evident in National’s reaction to this week’s release of the Treasury’s latest forecasts.

National is not going to let anything stand between itself and its Holy Grail of a return to Budget surpluses within the next three years.

What was once merely a target now seems to be an obsession. The reason is straightforward. Some major economic indicators are starting to confirm anecdotal impressions of an economy close to tipping into recession,

National is therefore clinging ever tighter to the increasingly vain hope of balancing the books by its target date of the 2014-15 financial year.

Meeting the target is all part of National’s branding as the party of sound economic management. Failure on that front would be a major blow to its credibility.”

See: Gloom sets scene for tumultuous 2013

If meeting an accounting target is all that National has left – Shearer better start packing up now. He’ll be in the Prime Minister’s residence at the next election.

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References

Interest.co.nz: Stats NZ reports 23,000 jobs lost

NZ Herald: Time for Key to call an economic summit

NZ Herald: Kerre Woodham: Nats run out of petrol

Fairfax media: Mixed reception for Key at Big Gay Out

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Still someone else’s country

10 February 2013 6 comments

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someone-elses-country

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Wellington, Newtown, 9 February 2013 – As the issue of state asset sales and other New Right policies are on National’s impending  agenda, the Newtown-branch of the Mana Party considered it worthwhile taking the time to look back at recent history. The events of today are firmly rooted in the past.

The New Right had taken power in Britain with the election of Margaret Thatcher in May 1979, and in the United States, with the election of Ronald Reagan in November 1980. Our turn came in July 1984, with the snap election called by an inebriated Rob Muldoon. (Intoxication on power and alcohol – not a very healthy mix.)

The Labour government that was swept to power (see: New Zealand general election, 1984) was not the Labour Party that people thought they were voting for. In total secrecy, Labour had been captured by a cabal of fanatical neo-liberal reformers. It was a government firmly under the control of  what we know today, as the ACT Party.

Twenty nine years later…

Mana’s Newtown Branch decided to hold a public screening of Alister Barry’s hard-hitting, insightful, 1996 documentary, “Someone elses’s country“. The story told within that hour-and-a-half documentary is as valid today as it was three decades ago. (In fact, watch “Someone elses’s country” and then watch Bryan Bruce’s 2011 documentary, “Inside Child Poverty in New Zealand” – and the linkages of the radical transformation of our country is all but complete.)

Prior to the screening, the audience was welcomed by Mana Newtown organisor, Ariana, who gave a brief rundown of the content and it’s impact on our society,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com Someone elses's country - public screening - 9 february 2013 - Mana Party

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Many in the audience were young people who either had not been born in the 1980s, or were too young to remember the calamitous events that were unfolding. To these people, the events we now understand as Rogernomics and Ruthenasia would have been like the 1951 Waterfront Lockout dispute that rocked the nation.

Following Ariana, a brief introduction to the film was made by sitting Wellington Councillor, Bryan Pepperell,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com Someone elses's country - public screening - 9 february 2013 - Mana Party

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Pepperell said,

It’s getting into it’s final stages where the agenda to actually get democracy out of the way of business is actually  now reaching a high-point.There’s an awful lot of window-dressing and democracy in New Zealand context has become that,  substantially window dressing…”

He then  shared with the audience when his first disquiet over the election of the Lange Government came to him,

When David Lange actually said on national television – and I remember the day when I sat and I watched it and I thought I can’t believe what I’m hearing – ‘from now on business is going to make the major decisions’. And that was actually a fairly startling thing as far as I was concerned… unfortunately poor old David probably got quite into something that was bigger than him, and here we are today with the consequences of those early decisions.  And of course the National Party is utterly committed to helping it’s friends further the direction that we started in.”

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The introduction completed, the screening began,

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Frank Macskasy  Frankly Speaking  blog fmacskasy.wordpress.com Someone elses's country - public screening - 9 february 2013 - Mana Party

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For many of us who lived through the period, memories of the time came flooding back. In some instances, several people in the audience even recognisedthemselves – with much younger faces – in stills and video footage of protest actions.

It is also worth recalling that despite calls from throughout the country,  TVNZ’s Board rejected calls for widespread broadcasting claiming it it “too political”.

“Too political”?!?!

Of course it was bloody political!

It was so damn political that TVNZ’s boardmembers would have  soiled their panties at the thought of upsetting their Ministerial masters in the Beehive.

As the doco’s producer, Alister Barry , said in November 2009,

It was no accident that Someone Else’s Country wasn’t screened on TVNZ when it was completed in 1996.

It wasn’t that the Business Roundtable needed to actually tell the TV programmers not to screen it. Television executives knew perfectly well where their salaries came from and that TVNZ was being readied for sale.

Fourteen or fifteen minutes of every television hour – the very limit of viewers’ tolerance – was filled with messages carefully and expensively constructed to reach into their fears and appetites. Clutches of advertisements urged New Zealanders to “buy”, to think and feel like frustrated consumers. Airing a documentary which led viewers to think of themselves less as consumers and more as citizens capable of taking political action was not in the interests of the big corporations controlling the advertising dollar.”

See: Someone Else’s Screen

It was not until 2003 that TVNZ finally mustered the courage to air  “Someone elses’s country” – on a Sunday afternoon. Hardly peak viewing time.

Barry also had this pointed insight to make,

It had been anticipated by New Zealand’s New Right revolutionaries, that by the early 2000s our values would have changed and we would have come to think like them, accepting poverty and extreme wealth as both normal and necessary. To pursue personal advantage and to care less about our neighbours. But studies show that in fact our values haven’t changed much from those of our parents and grandparents.
 
What is happening though, is that we are forgetting how things used to be and who changed them. Even as the human and environmental costs of the neoliberal experiment increase, we are finding it harder and harder to imagine how things could be better.

I hope you will find this film a useful antidote to forgetfulness.”

See: IBID

Which is what this country so desperately needs – an antidote to the collective amnesia which so many of our countrymen and woman so often succumb to.

As this blogger noted above; imagine the disquiet and anger that would result if  “Someone elses’s country” was broadcast at prime-time, on a major tv channel – and then followed by Bryan Bruce’s, “Inside Child Poverty in New Zealand“…

Addendum 1

The neo-liberal agenda continues. National plans to partially-privatise three power companies; a mining company; and Air New Zealand (which was privatised once before on 17 April 1989).

National is implementing a privatised form of education via “Charter Schools”.

And the economy is to be further “de-regulated”  and made the rights of foreign corporations extended.

Addendum 2

In a society run along neo-liberal lines, it becomes dangerous to upsets one’s masters investors,

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Hollywood gets heavy over Hobbit

Full story

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And shame upon shame to Jackson and his mates for aiding and abetting Hollywood’s Heavies.

What are they hiding?

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Additional Info

Mana Party

Mana Party – Feed the Kids

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.

Anti asset sale rally – this Wednesday 13 February

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frank kitts park no to asset sales 13 feb

Source

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