Now I'm off to NZ to see family/friends for Christmas, sitting in the Air NZ lounge at Sydney on the most gorgeous Saturday morning, wondering why the hell any of us from this part of the world would want to be in London this time of year (other than if I keep doing it for a few years I could afford to get a place in Manly).
Blogging on liberty, capitalism, reason, international affairs and foreign policy, from a distinctly libertarian and objectivist perspective
15 December 2007
Lessons about Sydney
Now I'm off to NZ to see family/friends for Christmas, sitting in the Air NZ lounge at Sydney on the most gorgeous Saturday morning, wondering why the hell any of us from this part of the world would want to be in London this time of year (other than if I keep doing it for a few years I could afford to get a place in Manly).
08 December 2007
Blog lite
04 December 2007
Visitor from Pakistan
Yes you. IP address 203.135.44.133 at 1.48.08pm on 1 December.
Look for your criminal interests elsewhere, I guess Paknet limited doesn't care much about that. Leave those kids alone ok?
I'm no prude, but I don't tolerate violence ok, just because the value of life is cheap where you come from, especially that of women, and especially young girl, doesn't mean you'll find it here.
Two barely democracies
Rail nationalisation?
- In 2000/2001 Tranz Rail brought on board a new chief executive, Michael Beard, to try to arrest an ongoing decline in profits, share price and a mounting legacy of infrastructure and rolling stock that would need hefty investment. In short, the company was not making a return on capital that was worth investing further in it - what that means is simple, the average investor was better off putting money in bank deposits than in Tranz Rail. Michael Beard announced a new focus on freight businesses by commodity, and that a whole raft of lines looked like they should be closed, with much publicity surrounding the Napier to Gisborne line - an expensive to run line, with barely enough freight to keep a train a day going. He also announced Tranz Rail would sell off its passenger businesses.
- Government leaped, various Ministers declared this plan was unacceptable and negotiations began on saving various parts of the network/system with subsidies. Auckland local authorities sought to spend $120 million of ratepayers' money to buy the entire Auckland metropolitan rail network to meet aspirations for a massive upgrade of commuter rail services. Central government did it instead, spending $81 million to buy back the Auckland rail network, despite Treasury valuations at the time, of it being worth no more than a quarter of that. Meanwhile Tranz Scenic was sold, and Tranz Rail agreed to not close any lines while it continued negotiations with government on rail policy.
- Tranz Rail's shareholders were keen to bail out, and a deal was struck whereby Toll Holdings would buy the company, in exchange for the government taking over the rest of the railway network for $1. The government would own and maintain the rail network, while Toll would have a monopoly on rail freight services as long as it maintained a minimal level of service on each line. Toll was meant to pay adequate track access charges to keep the network maintained, while the government agreed to put $200 million taxpayers' money into the network.
- The railway network has been transferred to Ontrack - a Crown company - which is meant to negotiate track access charges with Toll Rail. These negotiations have failed, and an independent arbitrator has decided on charges that Toll claim are unacceptable.
- Rail services are vital infrastructure: Wrong, countries can exist and thrive without railways. About the only section that can be seen as "vital" is the Wellington commuter rail network, and even then only because the alternative (expensive road widening) is not as cheap as keeping the rail network. Rail services have never made a good return on capital for decades, road transport, by contrast, has been privately run for a long time, and the road network generates a substantial surplus from road user charges that is reinvested in that network. Rail cannot even generate enough revenue to maintain what its got. I don't doubt that some of the rail network could be sustained, but clearly less that what there is.
- the key problem of private ownership - the tendency of private owners to cut back on maintenance spending and run down the infrastructure: Actually this reflects an economic fact, it was not profitable to maintain the infrastructure to do more. For example, when you can only sustain one freight train a day on a segment of around 40km (Rotorua), and a high level of maintenance makes that unprofitable then what should be done? Should non-customers pay for something they don't use? By the way, have you noticed how run down truck fleets and bus fleets are, not? Most long haul trucks in New Zealand are an average of around seven years old, and most major bus companies don't keep buses beyond 15-20 years. There is not a long haul locomotive on New Zealand tracks that is younger than 20 (or a diesel younger than 28) (and yes I know they have a longer service life, but engine technology has moved on a lot since the 1970s!).
- (renationalisation will) allow us to have a properly planned rail network and services again: I wonder when he last thought this happened? In 1990 and 1993 it collectively had NZ$1.3 billion (in 1993 values!) wiped, this happened before in 1982 when around NZ$100 million in debt was wiped (it collected this debt while it had a statutory monopoly on long haul freight). Is this the proper planning that saw investment in new goods sheds that were shut a few years later, or the manufacture of its own rivets at several times the cost of buying them off the shelf?
However he makes one correct point "we're effectively subsidising them, and paying for their profits, by maintaining the infrastructure they depend on to run". Indeed, but the answer to that isn't to pay for the business, after all if YOU were Toll Holdings, wouldn't you ask a good bit of money for the business if the government wanted to buy you out? Labour might threaten to pass legislation to force nationalisation, but wouldn't that look a bit Robert Mugabe or Hugo Chavez - and in election year too.
So, I'm expecting this to drag on. Toll Holdings knows though that its best deal is almost certainly under a Labour government rather than a National one, so it will want to strike a deal - Labour also knows it wants to be the government that "saved rail" for whatever reason. In addition, the Greens will demand it as one of their "faith based initiatives". So you might find another wad of taxpayers' money being thrown into the rail network to prop it up a bit more, otherwise I dare all those who want the government to force New Zealand taxpayers to save rail to do something...
save rail yourself. Get like minded people to come together and offer Toll Holdings a price. You might need to get the rail freight customers like Fonterra, Solid Energy and the like to join you, but make the effort. If you're not so inclined, then buy a train ticket on one of the few long distance passenger services left - at least you can say you've used it, since your taxes have paid for the lines!
Freedom from the pre-modern Islamists
03 December 2007
Have I got news for you
Start with Boris Johnson hosting here from two years ago, this is absolutely magic. The man IS the best chance Londoners have of unseating Red Ken Livingstone - frankly, if as Mayor of London he spends more time hosting this show, I think we'll all be winners!
http://www.youtube.com/watch?v=hBxkrBaK8vk
http://www.youtube.com/watch?v=LaLbBmrS8dw
http://www.youtube.com/watch?v=gGKiGz4-Dy0
Is there political satire in NZ on TV yet? Can you imagine any MPs participating?
02 December 2007
Russia's barely democracy
Chavez threatens to not sell oil to the USA
Trotter vs Minto
However this time he is on the side of freedom, or at least against those who were advocating fomenting violent revolution. His open letter to John Minto in the Sunday Star Times some weeks ago spoke volumes, he nailed his colours to the mast of liberal democracy. His closing statement made a fundamental point:
"Because in the course of the past month, John, I have heard you make many accusations, seen you point many fingers and hurl many fistfuls of abuse. But I have not heard one word from you about the right of a democratic society, such as ours, to be protected from people who think it's OK to run around the bush with semi-automatics and Molotov cocktails. People who think it's OK to train young Maori men to be bodyguards for the Americans in Baghdad. People who think it's OK to reach a level of preparation for organised political violence so alarming that New Zealand's most liberal police commissioner, ever, felt he had no choice but to launch "Operation Eight". Because it's NOT OK, John. Political violence in a functioning democracy is NEVER OK. And I want to hear you say it. "
See that? Political violence in a functioning democracy is never ok. So does John Minto reply yes or no? No, of course not. This self proclaimed champion of human rights, who blames the West for how Robert Mugabe (no doubt one of his pinups) is treating Zimbabwe, who also blames everyone but the perpetrators for torturing their own kids, likes political violence. Indeed he is an apologist for violence committed by anyone he sees as a victim - nice chap.
Minto's response starts by claiming, so innocuously that "groups involved in working for social change saw the long shadow of the state loom over them". Oh "working for social change", which in his world doesn't include libertarians, Christian conservatives or the Business Roundtable, no it is code for socialist Marxist groups. Minto only supports those wanting statist collectivist solutions. He trots out again the excuse that evidence was leaked, of course all of the evidence is now publicly available thanks to the internet - and it IS damning. So he ignores it, he prefers to attack the anti-terror legislation - he doesn't even respond to Trotter's comment. He doesn't condemn the ideas expressed by those accused - because Minto, like too many in the so called "peace" movement have no interest in peace, or non-violence. You see "peace" means surrender.
Minto, rightly, would argue that peace under apartheid was impossible, so it was legitimate to fight to overthrow it. However, he would also argue the same about any other conflict, according to the side he supports. He wouldn't support Palestinians ceasing hostilities in the West Bank and Gaza unconditionally - though he would support them waging war against Israel and overrunning it. He wouldn't support the USA destroying an Iranian nuclear weapon's facility, but he would support the USA abolishing its own while Iran does nothing.
^
Minto is a revolutionary, he cares little for rule of law under liberal democracy. Indeed, his sympathy for Robert Mugabe tells you much about where he comes from - he opposes capitalism, Western liberal democracy (unless it doesn't mean his side wins and gets what he wants) and supports political violence. If the evidence found by the Police proved to be substantial, Minto would say acts of terrorism committed by those with such views were "justified" or "understandable". He's no friend of freedom, he is a sympathiser of thuggery and brutality as long as it is for Marxists. His well known anti-apartheid views were correct, but he was, again, supporting Marxists against a brutal regime - he doesn't criticise the ANC now despite its rampant corruption and intolerance for criticism. However, it is clear what side he is on - the peace he argues for is AFTER the revolution.
01 December 2007
A jump to the left
He always was a rather conservative ACT MP, not warm towards civil unions or legalisation of prostitution. He has a good legal mind, but does this say more about Stephen Franks or ACT? I am sure ACT will be sad to lose him, but if National seeks someone to talk about the Treaty of Waitangi he would be a good man for that role - he's certainly head and shoulders above many of the National caucus.