Blogging on liberty, capitalism, reason, international affairs and foreign policy, from a distinctly libertarian and objectivist perspective
17 March 2008
Toll NZ demands you subsidise its investment
So who owns your life?
Nanny State in the supermarket
Meanwhile, since it is election year, would National and ACT repeal it?
ACT on education, some hope?
16 March 2008
Bureaucracy cutting: so many possibilities
One can do nothing but laugh at those who think National’s policy for not growing the bureaucracy will cause chaos and ruin. Besides being a bit wimpish, the truth is that far too many in the public sector are far from over worked and even more simply do things that are fundamentally useless.
I spent several years in the state sector, observing officials from many departments and seeing the differences in culture between them. There were always some hard working ones, and of them, some were heavily misguided – undertaking tasks that, with all honesty, did no good at all. One was to register postal operators.
Despite all the best efforts of the officials at the time, MPs, against advice, decided that when postal services were deregulated in 1998 it couldn’t be allowed for new companies to simply set up and carry mail. No. Because the Police were concerned that (wait for it) drug dealers could set up competing mail operators and use these services to distribute drugs (because you’d do that wouldn’t you?), a handful of MPs caved into pressure and decided that every company that wanted to carry mail had to be registered with what is now the Ministry of Economic Development.
This registration process includes, believe it or not, a Police vetting. That Police vetting is to ensure the director of the postal company has not been convicted of a range of criminal offences, excluding murder and rape. You can not carry mail if you have ever been convicted for possessing cannabis, but if you committed murder you can.
By the way none of this applies to couriers or trucking companies, only postal operators. Of course, drug dealers and fraudsters were all keen to get into the mail business weren't they?
It’s all completely absurd.
This is only one type of ridiculous bureaucracy that exists. There are many more throughout the public sector. The creation of endless “strategies” is another. Search the word "strategy" at govt.nz and you'll find one that is applicable to you - that you were not consulted on and which is trying to get people to do all sorts of things.
So there are many ways to cut the state sector that National could pursue, although it might face some questioning about the one I just mentioned. Since it was something National approved when it was in coalition with NZ First.
The world watches Tibet
2008 for China was meant to be a year to celebrate. Celebrate pride in extraordinary levels of economic development, and increases in standards of living for most people in China. China's coming of age, being the third biggest economy in the world (behind the USA and Japan) should see the Olympics being a showcase of a modern China, with pride.
China has faced a couple of challenges so far. One, regarding its foreign policy in Sudan, has moved somewhat. Another, is the heavy pollution remaining in Beijing - which bodes poorly for the Olympics.
but now it is Tibet. However, the primary issue for Tibet is not so much independence, which even the Dalai Lama does not seek now, but the treatment of Tibetans. The Dalai Lama seeks the same special status as Hong Kong, which would, of course, be a tremendous advancement. Sadly Tibetans face the restrictions on free speech, racism of the Han Chinese, and the fascism and corruption of the Communist Party run state that is found throughout China. Tibetans should have the right to oppose those governing them, to highlight abuses and corruption, and to be treated equally as Han Chinese by the state.
So China's Communist Party led government is trying to balance between suppressing what it sees as unacceptable dissent and challenges to its rule, and not appearing to be bloodthirsty.
China knows only too well that if it attempts another Tiananmen Square type massacre it risks boycotts of the Olympics, if not at the official level at least by individual athletes. The loss of face would be considerable. However, the West also knows the risks of offending China. Burma is easy - it is small, and can be boycotted and protested against with little cost. China is big, and it can do whatever it likes, knowing it is too valuable to too many countries to offend it.
The Daily Telegraph is carrying images of the protests, as Tibetan protestors attack Chinese premises. Many Tibetans are incensed at the Chinese takeover of the province, as Chinese are offered considerable incentives to relocate.
China will be restrained till it can take no more, as it has shown it is very willing to oppress when the rule of the bullies in the Communist Party seems threatened. If it does, then it is time to send China a message - you cannot aspire to be a global power and treat your citizens with impunity. It is not civilised.
The Communist Party and its handmaidens, the "People's Liberation Army" are fascist bullies - they seek only to tell their people what to do, push them around, arresting and executing if they get in the way. China deserves better, but for now China should consider what it has done in Hong Kong and Macau. Both regions of China now have freedoms that are unrivalled in many of China's neighbours - Tibet could be the same.
If the Communist Party set Tibet free it would suddenly dissipate an enormous amount of criticism, but at the risk of protests appearing elsewhere in China. If the killing and arrests continue, then Beijing does not deserve to host the games - it should be boycotted. The Olympics are about friendship, sport and peaceful interaction - the Chinese Communist Party led regime lies to its own people and the world, while spilling blood. That is not a fit venue for the Olympics.
Bailey's chance: our gamble
He apparently will get a job in the forestry industry. Yes I'd like a murderer to have access to chainsaws, saws, heavy equipment. Also an industry rife with a drug problem in certain parts of the country.
He's found "God", a bit later than when he forced Michael Choy to find out if "God" exists or not. So will Bailey tithe half of his incomes to Michael Choy's mother to compensate her?
Unfortunately he will be set free, and the outlook can't be that positive as the NZ Herald reports:
Canterbury University criminologist Dr Greg Newbold said Maori focus units helped to give young people focus and a sense of identity but the positive effects were not always long-lasting.
"It's generally the case that people come out of those kinds of units absolutely positive and feeling great with terrific ideas, but when they come out in the real world the influence of their experiences in the focus units easily evaporates."
Dr Newbold said in Bailey's case it was "a great big question mark, a dirty big guess" as to whether he would reoffend, and statistics were not encouraging.
If he blows it, he should be back - for life. That means life. Bailey, you get a second chance because the justice system lets you - you should get no other.
and don't have kids. Seriously, you can't be a parent if your own life isn't in order, and you wont know that for at least ten to twenty years.
The saddest part of this is the message it sends to young criminals - kill a man and within seven years you can be out and free. Cool eh bro?
Want to make Air NZ uncompetitive?
You see the routes to China are not particularly profitable - largely because the planes are used mostly by Chinese tourists paying for the cheap seats - there is little business class demand between NZ and China. So to take advantage of this market Air NZ needs to keep costs low.
The alternative is to tell Air NZ to pay the same rate - make the routes uneconomic - and then a Chinese airline will fly back in to take advantage of the growing business, undoubtedly paying even less than Air NZ.
Meanwhile those in China who don't want these jobs could refuse of course, and China isn't exactly suffering from economic malaise. The idea that those living in Shanghai are being exploited when they are paid generous wages by local standards is a nonsense - though I doubt the Greens will catch trains all the time in protest!
Yes that's how those on the left would let it happen. Winners right?
14 March 2008
IKEA not allowed because it would succeed
"New Zealand once again proves it is a retarded, inbred backwater of drooling, xenophobic hicks"
.
Yes, according to the New Zealand Herald the Environment Court has stopped IKEA locating at a complex in Auckland because...
.
It would be TOO successful. It would "generate traffic" (you know cars would appear out of the road spontaneously, it wouldn't be people wanting to buy something they like).
.
Can't have that can we? A successful business is loathesome. Better to reopen a railway line that will lose money than allow a successful business that attracts people to drive to it. Maybe if people carry their flatpack furniture on a train?
.
Of course the Environment Court couldn't think to blame the owner of the roads in this case, Auckland City Council, for failing to manage them properly either by not building enough capacity or failing to toll them at busy times to spread demand - no. IKEA is to blame when it is successful. IKEA pays, and so do Aucklanders who might work or shop there.
.
Well fine. as Blair said so eloquently:
.
"I'd love to blame this malaise on the Labour Party, but this one is National's baby. Fuck you very much, Simon Upton. Not even your current country of residence, noted for its fortress mentality and xenophobia, has laws this retarded and draconian. So lucky you for not having to live here and deal with the consequences. I bet they have Ikea in Paris, you bastard. I hope you choke on your croissants."
.
and so look at this New Zealand. Those who might have jobs at IKEA, or have family who might have had jobs there, as well as those who might have shopped there. THIS is what the RMA does, THIS is what Labour thinks of success, THIS is what National will do nothing about and THIS is what the Green Party cheers on - it's the philosophy of zero growth.
What might ACT do?
ACT has done best when it looks like National can't win. That being 1996, 1999 and 2002. In 2005 ACT's vote collapsed because most ACT voters saw more hope in National under Don Brash AND because the election was such a close call. Now it has a chance to differentiate itself and sell the message that National WILL be the next government - but it needs a coalition partner to ensure it shrinks the state. The problem is that most of ACT's supporters are so keen to ensure Labour is defeated that they will want to vote National. Unless a National victory is pretty seen to be a sure thing, ACT does not face much chance of improving its vote.
Some of us hoped ACT under Rodney Hide would be more freedom oriented than before, that it could combine it laudable enthusiasm for economic liberalism with social liberalism. Sadly it has shown only limited signs of this, although the vote against banning BZP is a positive one.
So what SHOULD ACT do? Well it is very clear that with the removal of Don Brash National has moved to the left, closer to Labour than it has been for a long time. ACT should have the field wide open, with a wide range of policy choices it can put forward.
So here is a go, and no it's not radical, it's all rather minimal actually:
1. One law for all: Abolition of the Maori seats and abolition of all race based funding and legislation. Simple, it was National policy and it should be ACT's. The state should be colourblind.
2. Low flat tax: The surpluses, although wasted by Labour, could easily sustain a combination of introducing a tax free threshold and dropping the 39% and 33% income tax rates, with company tax to match.
3. Eliminating unnecessary bureaucracies: ACT should easily argue to abolish plenty of departments and agencies, from the Families Commission, to the Commissioner for Children, Ministry of Culture and Heritage, Pacific Island Affairs, Youth Affairs and so on.
4. Protecting property rights: Ideally scrapping the RMA, but at least introducing the primacy of private property rights into it over everything else. More importantly, restoring Telecom's property rights over its own infrastructure.
5. Privatisation: Proudly stating the state should not own businesses, whether it be rail, electricity, television, coal mining or the like. Allowing the private sector to finance, build and own new roads when they see it as being economic.
6. Choice in health and education: ACC is the easy one, opening all accounts up to competition. Education could start with vouchers and setting all schools free to govern themselves and set their own curricula. Health could see a shift towards an insurance model with a dedicated portion of income tax for health - which you could opt out of in favour of private insurance. The status quo is failing and only radical change will improve that. These measures are tried and proven elsewhere in the world.
7. Repealing victimless crimes: Blasphemy, the ban on BZP, bans on cigar advertising, the list is long - but it is about working towards getting nanny state out of our lives. I don't expect ACT to advocate legalising drugs entirely, but I could expect it to advocate decriminalising private usage by adults on their own property. I expect shop trading laws to be liberalised. I also expect repeal of human rights legislation, except for state agencies.
8. Reforming welfare: Time limits for all benefits, shifting the DPB to an alimony/contract model, reviewing sickness beneficaries to consider what they COULD do, allowing state housing tenants to have first option on their homes before they are sold, making at least the first $5000 tax free, no benefits for convicted violent criminals. Eliminating "Working for Families" in favour of tax cuts. What matters is weaning people off of state welfare.
9. Fight real crime: Demand accountability from the Police, preventive detention for the dangerous, and deny custody of children from convicted child abusers, rapists and serious violent offenders.
10. Ringfence local government: Repeal the "power of general competence" and constrain all councils to specific so called "public goods". Cap rates and require councils to phase out activities such as business subsidies, housing, arts and other non core activities.
It's a start, and not libertarian, but it would be a point of difference from National and a move in a right direction.
Racism on the left
Yet Idiot Savant is saying just that - except it is about Canadians. Yes, annoying Canadians is a GOOD thing. Evil Canadians. You see, it's ok to be racist on the left as long as you are racist when a handful of the people of that nationality want to legally buy shares in an airport in your country. The British National Party would agree wouldn't they?
No doubt he would claim this ISN'T racist. However it IS racist to want the New Zealand Parliament made up of seats that represent one people by party vote and by electorates determined by demographics and geography, not race.
Confused? Well you can't ask him directly on his blog, but it is a peculiar kind of reality evasion that the left undertakes when it refuses to be TRULY colourblind.
I am. I don't care about whether one is foreign or not, or Maori or not. It is the behaviour and what an individual advocates that concerns me.
So many on the left claim to be anti-racist, but have a deep suspicion of foreigners who do business, and positively embrace racism by those they deem "oppressed". I guess if you think of people as pigeonholed in groups, then it is hard to give up a habit.
13 March 2008
Yet another victimless crime.
.
.
.
.
.
.
.
British budget - just more taxes
Sin taxes on alcohol and tobacco are up, and the extortionate fuel tax will be up in 6 months (in the UK over 80% of fuel tax does not go on roads).
New taxes are imposed on new cars - a "showroom tax" on all new vehicles, rated at CO2 emission levels. Of course taxing new cars means it is cheaper to keep an older car for longer, increasing net emissions - but this is about tax.
A tax on plastic bags also has nothing backing up whether it will generate net benefits for the country - just an excuse for more tax, with the money going into an environmental charity slush fund. Set one up today to take advantage of it!
Then there is the "non dom" tax. Non domiciles resident in the UK for more than 7 years will have to pay £30,000 to retain their status, or face being taxed on their overseas income. That will undoubtedly have a negative effect on London's status as a world financial capital.
On the other side there is more money for the military because of the cost of commitments in Iraq, and more money on welfare - allegedly to relieve child poverty, but I guess others can make judgments as to how much extra welfare is spent on children, and not on the higher cost of alcohol and tobacco. Pensioners get more money to subsidise their energy bills (yes its funny that the compulsory state pension that you can't inherit isn't one to survive on).
and all this with £43 billion in borrowing. The UK has a huge budget deficit and growing state debt. The prospects for that being addressed in the near future are very slim indeed while Labour continues to grow the state sector.
So why overthrow the Taliban?
One reason I supported the invasion of Afghanistan and overthrow of the Taliban was to liberate the Afghani people from Islamist oppression. Unfortunately, instead of invading, occupying and introducing open liberal values and government, the coalition, including New Zealand, allowed a less radical form of Islamism to take over.
That is where Sayed Parwez Kambakhsh comes in. He faces the death penalty for blasphemy, for the simple act of writing an article questioning the treatment of women in the Koran. Afghanis should have free speech and should be able to debate matters of religion and morality. It is abhorrent and unconscionable for Afghanistan to murder someone for saying something that offends many.
What is worse is that New Zealand has troops there, defending the current regime. As Idiot Savant says "We wouldn't support Iran's rabid theocracy with troops; why are we supporting Afghanistan's?"
Indeed. It is time for all of the New Zealand Parliament to condemn this, for the government to raise this with the Afghani government, and demand that the sentence be commuted. Indeed apparently Condoleezza Rice and David Miliband have both raised the issue on behalf of the US and the UK.
Otherwise, all we have done is gotten rid of a set of aggressors against the West in favour of a set of aggressors against their own people.
12 March 2008
Muldoon's back with more subsidies
Back in the bad old days of Rob Muldoon, industries would clamour for a subsidy or a tariff or import quota, to protect them, promote exports or help “encourage jobs and innovation”. Those days were largely gone after the fourth Labour government, which ruthlessly purged corporate welfare partly to save taxpayers’ money, but also to ensure a “level playing field” with the government not “picking winners”.
After an initial shock, most businesses accepted that with the government out of the game of dishing out subsidies and protectionism there was no longer the need to lobby for such things and business could get on with producing and selling.
However, this started to be eroded with Jim Anderton converting the largely policy advisory Ministry of Commerce into the more interventionist subsidy Ministry of Economic Development. The “winners” picked by Jim Anderton’s subsidy machine – NZ Trade and
Now according to the NZ Herald Labour is throwing $700 million of your money away on the food and pastoral sectors to promote innovation. Business NZ Chief Executive Phil O’Reilly responds to this by saying “This is an excellent model for commercialising research, based on research-industry collaboration”.
Commercialising? Since when it is commercial to use taxpayers’ money, which might otherwise have been used by OTHER businesses for their innovation?
Nobody would argue with innovation by business, but wouldn’t it be simpler to just forget subsidies and cut company tax some more? For starters, how about a company tax rate of 15% (half that of
Um, how about letting businesses keep more of their own money? "knock knock" any policy innovation at the National Party?
Easter Sunday is for individuals not politicians
My response to Sue Bradford's press release saying "Easter Sunday is for families not finance" is "Easter Sunday is for individuals not politicians".
Sue wants to prosecute shopkeepers, including sole proprietorships, that open on Easter Sunday - because she thinks the shopkeepers should "be with their families". How dare she!
Sue wants Labour Department goons, which taxpayers are forced to pay for, to WORK on a Sunday (what about their families Sue?) to find businesses - private businesses - not ones Sue owns, risks money on, works on - to charge, prosecute and fine. Non-violence? Bullshit!
Of course Sue isn't concerned about businesses, they only create jobs. She pours out concern for employees she claims are "forced" to work on Easter Sunday. How are they forced Sue? Would someone arrest them if they didn't work then? How many employees WANT to work then so they can have a different day off during the week? Doesn't matter to Sue, she knows best.
Here are some simple points Sue, which chop through your weasel words about "community" which are just about you imposing your will on peaceful people:
1. Owning a business means having the right to control when it is open for business and when it is not. That is because owners risk their own money, and don't expect anyone else to bail them out when they lose. It's private property.
2. Nobody forces any businesses to open on Easter Sunday. By contrast, YOU want to force them to be closed.
3. Nobody forces people to be customers for businesses on Easter Sunday. In fact, thousands of people do that. Funnily enough apparently their view of community and what should happen on Easter Sunday isn't yours - but you ignore them, and want to force your view on them indirectly. Nice.
4. Nobody forces people to work on Easter Sunday. Employees take up employment understanding the terms and conditions of that employment.
Sue is apparently at ease letting airline pilots, nurses, police, power station workers, farmers, bus drivers, customs inspectors, service station workers, television presenters etc etc work on Easter Sunday and do business. She is happy for state owned airline Air New Zealand to fly thousands of people across the country on Easter Sunday, but not for a gardening shop to sell some pot plants.
She is a hypocrite, and a bully - and she shouldn't decide what you do on Easter Sunday, either with your business, your family or yourself. You should. It would be nice to have a day a year when politicians just left us all alone.
Fat chance with the likes of socialist Sue.
11 March 2008
Strategic assets
- London Heathrow Airport
- London Gatwick Airport
- London Stansted Airport
- Glasgow International Airport
- Glasgow Prestwick Airport (owned by New Zealanders no less)
- Athens International Airport
- Hamburg Airport
- Tirana Airport
SMS surveillance
Clinton-Obama isn't going to be
Bit late isn't it?
Of course the Parole Board doesn't meet many articulate, intelligent people presumably.
Little piggies in the trough
Sudan – kinder on bestiality than NZ
In New Zealand if you did what Mr Tombe did to Mr Alifi’s goat, you’d end up in prison. In Sudan you are made to marry the goat and pay a dowry.
In a case that, to be fair is actually about conversion of property, the man caught fornicating (a word some Christians say with the passion of a pervert) with a goat was told as he used it “like a wife” he should marry it such.
Given the owner was happy with the outcome, there is no reason to take this further. Certainly this is far more enlightened than the NZ way of incarcerating someone because it offends and upsets people. The very same people who in many cases would happily have the milk molested to provide milk for them! Of course getting oral pleasure from the bodily fluids of a goat is acceptable in one sense.
10 March 2008
UK sends Iranians back to be executed
Mehdi Kazemi is Iranian, and came to London in 2004 to learn English. Mehdi Kazemi is gay. In April 2006 his boyfriend in Iran was executed. Under interrogation Kazemi's name was mentioned as a partner, as his father informed him by phone. Kazemi feared he too would be arrested, charged and executed - so he claimed asylum in the UK. He was refused in late 2007. As a result he fled to the Netherlands. He now faces a court in the Netherlands where he is also claiming asylum. If he fails, he will be deported to the UK - and there he faces almost certain deportation to Iran - to his certain persecution.
"According to Iranian human rights campaigners, more than 4,000 gay men and lesbians have been executed since the Ayatollahs seized power in 1979."
Of course Iran is a horrid place by any human rights standards, not that you see too many protest marches in Wellington to the Iranian embassy, or Iranian flags burnt by those who claim to care about such things. No, funny that.
Now Pegah Emambakhsh, an Iranian lesbian facing a similar risk, is also facing deportation. Her partner is in custody facing fdeath by public stoning.
New Labour is so caring and compassionate isn't it? However, so is the lack of support from the so-called "peace" movement.
The sin of plastic bags?
"The widely stated accusation that the bags kill 100,000 animals and a million seabirds every year are false, experts have told The Times. They pose only a minimal threat to most marine species, including seals, whales, dolphins and seabirds."
The central claim of campaigners is that the bags kill more than 100,000 marine mammals and one million seabirds every year. However, this figure is based on a misinterpretation of a 1987 Canadian study in Newfoundland, which found that, between 1981 and 1984, more than 100,000 marine mammals, including birds, were killed by discarded nets. The Canadian study did not mention plastic bags.
Now you can choose not to use plastic bags yourself, but those who want people to not use them shouldn't use exagerrated false claims to do so. Frankly most people recycle them, using them as rubbish bags for household waste.
When did Labour first look to buy back the railways?
The Official Information Act request should be "All Cabinet papers, Cabinet Committee papers, papers for adhoc meetings of Ministers, notes and briefings to the Minister of Finance and the Minister of Transport regarding the future of the railway industry, including options for government ownership and regulation since 2000".
See if the paper turns up, is released, is partly released, has everything but it's title suppressed or even its existence suppressed...
Better stuck in the 90s than the 30s
Which decade was nationalisation about again?
Then again, he does think "The rail network is vital infrastructure, and it will only increase in importance in the coming years as oil prices rise and climate change policy force changes in transport modes." Which begs the question, if it will become more competitive and the government will "force" freight onto it - why he doesn't buy it?
Who would've thought
"The Treaty of Waitangi seems to be the antidote for everything from tagging to wagging school and colonisation which is absolute cultural bullshit."
He continues:
"You've got these culturally correct loony tunes who think everything's offensive come on, it's time to wake up.
"Even if the sun shone 24-hours a day there are some people some are in Parliament who will find the dark and find some sort of grievance. They want to take us back in history and blame somebody.
"Look at the Maori Party. Just on the surface of it, the branding is attractive people think `hey, I'm a Maori, I'll vote for the Maori Party'. There's a lot of people who think that way. But what have they got to deliver? I have seen the rantings and the ravings and other people's scripts being given in Parliament, but what are they going to deliver?"
the standard of The Standard
“Toll has been a classic asset-stripper: buy a key piece of infrastructure that should never have been sold, take as much profit as possible with minimal investment, and force the Government to buy the infrastructure back to prevent further economic damage.”
For starters, Toll never bought the track, which this implies. In fact Dr Cullen and the Labour government did a cozy little deal with Toll to bid for Tranz Rail. The Beehive press release here makes it clear that Toll and Dr Cullen were acting hand in glove. The government was "never forced", Toll never bought the infrastructure. Utter lies.
.
Thirdly, it claims that "lines have been closed". What? By the state? Only one line has been closed since Toll took over, the tiny Castlecliff branch in Wanganui (and it hasn't been removed). Even since privatisation the lines mothballed consists of Rotorua, Taneatua and Whakatane. Far more lines closed under government ownership in the 1980s (Kurow, Otago Central, Okaihau, Thames, Seddonville, Makareao). Not that this was wrong, but the implication is that services were dropped from those who used them - when in fact lines like Kurow had just two freight trains a week - hardly a reason to get excited.
So if the Standard has this standard of research and writing, you might ask what else it does well?
Muldoonism all round
Labour, having lost the votes of most businesspeople, much of provincial New Zealand, many Maori and most of those on middle to higher incomes, is now pandering to the Winston Peters crowd for votes. That's what Auckland airport is about, and the railways - the old Muldoonist crowd that is wary of foreign investment, the working class semi-literates who are easily fired up with xenophobic rhetoric.
Whatever it takes - Labour has spent the surplus up, to make tax cuts harder, but can also claim any spending cuts will "hurt health and education", forgetting that the increases have done little to improve either. Labour will scaremonger that National will hurt the poor and damage the fragile economic growth, that has been in decline in the last few years.
08 March 2008
Stop worshipping the cruel NHS
Moral equivalency again?
Palestinians choose a government committed to engaging in aggression against Israel and destroying it - Hamas
Palestinians engage in a small scale civil conflict splitting the government between Gaza and the West Bank, leaving Hamas in Gaza.
Hamas decides to make Gaza not a haven for peace, development, economic growth and freedom, but a base to wage war against Israel - indiscriminately firing rockets into Israel proper (you know the country that is internationally recognised, not occupied territories) killing and injuring Israeli civilians.
Israel puts up a blockade against Gaza to stop entry/exit of citizens across the land border, and stops selling electricity to Gaza as retaliation. Gaza still has an open land border with Egypt.
Israel is accused of being unreasonable, against those who wish to destroy it and attack it.
Hamas continues its bombardment, Israel responds by attacking bases in Gaza from where rocket attacks continue, killing 120.
Hamas sends a gunman in to shoot children at a school in Jerusalem.
So who wants to defend those who execute children for political purposes again?
07 March 2008
So where IS rail viable?
Wikipedia does though here >>>>
Now of that network, you can split rail into five main businesses: Coal, logs/wood products, containers, milk and commuter passenger rail. The long distance passenger rail services by themselves could never sustain any of the lines. There is other freight, but it also is of a far smaller scale than any of the others, worthwhile on a marginal basis but not on its own in most cases.
Logs/timber traffic is carried predominantly Murupara-Kawerau-Mt Maunganui or Auckland. Also Kinleith to Auckland/Mt Maunganui. There is some activity in Northland and Wairarapa to Wellington. However, it is the Bay of Plenty timber traffic that matters. Despite popular misconceptions, logs are not important freight on the Gisborne line (nothing really is, despite some forecasts in recent years). There is certainly insufficient log traffic for any of the Northland lines to be viable, with only the Murupara-Kawerau-Mt Maunganui/Auckland, and Kinleith lines really retaining enough traffic to be viable.
Container traffic is essentially movements between main centres and ports. The viable routes here are the North Island Main Trunk line, and the main southern line from Picton to Christchurch/Lyttelton and down to Dunedin/Bluff, with worthwhile flows between Waikato and Mt Maunganui. Beyond that, there really isn't enough freight to Taranaki or Napier to sustain those lines for this traffic.
Milk traffic forms the last major freight traffic on the lines. These movements are mainly southern Hawke's Bay - Manawatu - South Taranaki, Southland-South Canterbury. Again, these largely use routes carrying other freight, but do help sustain them.
As far as commuter rail is concerned, in Wellington it has a future, although the Johnsonville and Melling lines are not at all viable, money is being poured into it all so is really a sunk cost. In Auckland it is a major waste of money, but again partly a sunk cost.
So what is left? Well surprisingly quite a lot of the network is probably commercially viable, but frankly there are quite a lot of lines that have no economically viable future, unless some major freight customer wants them:
- All lines north of Waitakere in Auckland (expensive to maintain, low capacity)
- Rotorua and Taneatua branches (simply no viable freight)
- Napier-Gisborne (with big questions to be asked about Napier south to Oringi).
- All lines in Taranaki except south of Hawera (some expensive to maintain)
- Masterton to Woodville (mainly useful as a diversion for the main trunk line!)
The reason others are worthwhile comes down to either a single major customer, or having enough general freight. The latter is really just the north-south main trunks in both islands. Now if the government could only swallow those closures (or simply opening lines Toll doesn't want to operate to others if they wish), then there might be a viable railway for the trunks and the few bulk commodities that rail can handle well.
What does THAT network look like? Well this:
Not so bad really, with dotted lines where lines probably should close in the next few years (Napier, Southland and New Plymouth). Beyond that if Solid Energy, Fonterra and the forestry sector want rail, they should buy it - since all of the lines outside the main trunk are almost entirely about them. There is no reasons for the state to subsidise their freight movements.
Oh yes I did forget one thing, the ferries. They ARE worth a good bit of money - the only consistently profitable part of the railway system for decades.
Not the UN's approach to drugs
Is "racism" the cry of the scoundrel?
Greens worship at the altar of rail with your money
The Greens love railways more than any other mode of transport. So even in an age when oil prices are at a record high, when rail cannot compete for most freight efficiently, there are major problems with rail freight being competitive for most freight in New Zealand. This puts paid to notions that "we need" railways in an age of expensive oil - it seems that it STILL isn't cheaper to send most freight by rail for all sorts of reasons (e.g. double handling, speed, inefficiency of compiling trainloads of wagon or less than wagon load lots).
Sadly the Greens are woefully ill informed about the railways at all. Jeanette Fitzsimons claims there isn't the revenue to pay for upgrades and “Nowhere is this more apparent to the public than in the state of Wellington’s commuter rail services". What rubbish. For starters, the Wellington commuter rail services get around half their revenue from taxes - whether road taxes through Land Transport NZ, or rates from the Wellington Regional Council. Secondly, with comparatively new trains recently introduced on the Wairarapa line, and all of the older electric units recently refurbished (and a major upgrade of the track, signal and electrics infrastructure underway), the Wellington system is hardly in a poor state. Toll Rail's revenues are about freight, not passenger services. So she is either poorly informed or lying to get the public's sympathy.
She claims Toll "cannot afford to pay the track access fees that were always part of the deal with Government". Really? Does she have access to Toll's accounts? Could it just be gameplaying with a government that is soft on rail?
The government is already spending hundreds of millions of taxpayers' dollars on upgrading the rail network, but even that isn't enough. Why?
Well that is the question the Greens should answer. It isn't because trucks are underpaying to cover road maintenance costs, generally they aren't. It isn't because trucks have far higher environmental costs per tonne km than rail, because the government's own study points out that it varies considerably by route (in some cases rail is lower in some cases road is lower).
I suspect it quite simply is because - notwithstanding the low cost of RUNNING a train to carry a lot of freight, the handling of freight to load and unload a train, the time/cost of warehousing freight (effectively) in assembling/disassembling a train, the high capital cost of railway equipment, the limitations on the NZ railway network placed by many low tunnels (and almost always a slower alignment than roads), rail can't compete for most freight. It can compete for hauling bulk commodities, such as coal and milk, and to a lesser extent logs. It can compete for long hauled containers, but that's about it. Rail is a very heavy, capital intensive mode with its own corridors that, by and large, get little use compared to roads. For example, the Napier-Gisborne railway on average has one train each way every day. Imagine the road having one truck (or even the dozen or so that would replace the train). That one train would have to carry the full cost of maintaining and operating the line, whereas the road has many vehicles to spread the cost over.
Passengers are a peripheral activity, unlike the UK, in NZ long distance passenger rail is about scenic tourist trips by and large.
So the Greens might have to look beyond the altar of rail and dispassionately ask why it isn't working to do what they want. Given the very high cost of diesel, the notion that rail can "save the day" when it clearly is failing to do so, seems spurious. Similarly, as the environmental costs of road and rail freight are not that dissimilar, the alleged "green" benefits of rail freight seem equally spurious.
so when will the Greens stop worshipping rail, and start supporting evidence?
Bill English says Nats might sell railways, again..
First he says "We certainly wouldn't be buying Toll. The worst thing for our railway network would be for the Government to take it over using the OnTrack company". Ok...
then seeking to get out of the business as quickly as possible, although then he flip flops a little "We would go out and look for an operator and then you would have to decide whether they come in to operate it and the Government retained ownership or you sell it to them".
Why would the government retain ownership? How does that do anything for the taxpayer?
Of course Winston Peters wants to buy it back, it's not his money after all. He thinks it is a "buyers' market" - well go on Winston, make a bid with your money and those you can convince. Ask the Greens to help. Although the test of most nationalisers is that they will never risk their own money to do it. Funny that.
06 March 2008
Abolishing income tax?
He asked in relation to New Zealand "How much scope is there for a radical overhaul of our tax structure? Perhaps this is a task for Peter Cresswell and others to consider. How detailed are the NZ Libz with their policy prescriptions? Or is abolishing income tax 'pie in the sky' here too? Does ACT offer anything here?"
Well the Libertarianz (NZ) DOES have detailed policy on tax, on the party website here. It actually proposes the OPPOSITE tax reform, with all OTHER taxes being abolished other than income tax, which would be set at a flat rate of 15% with a $10,000 tax free threshold. This would be a transitional measure which itself would be phased down.
Why leave income tax and abolish others? Well it is a matter of two things.
Firstly, other taxes are largely invisible to the general public. GST, residents' withholding tax and various duties are paid, and the public treats these as part of the cost of goods or earning interest at the bank. It would be far preferable to notice that the cost of government is transparent and you pay that, rather than it hidden in multiple other taxes.
Secondly, abolishing all of the other taxes will lower compliance costs for businesses, end the "black economy" nonsense about paying under the counter for goods and services, and dramatically simplify tax arrangements overall.
How would this be paid for? Well by dramatically shrinking the state. Libertarianz has proposed alternative budgets for some years.
Now I remember Sir Roger Douglas proposed abolishing income tax in his book Unfinished Business, and it was originally ACT policy (he replaced income tax with compulsory health insurance, superannuation and education). ACT policy has been flat tax and more recently two step income tax. I'd be interested to see if ACT revives flat tax for 2008, but for now Libertarianz is the low flat tax party.
Don't want to buy a railway?
Not satisfied with spending $81 million for the Auckland rail network, when Treasury valued it at best at $20 million, not satisfied with spending $1 for the rest of the national network.
Not satisfied with spending from general taxation:
- At least $450 million to upgrade the Auckland rail network (track, signals and platforms) from 2005;
- $100 million per year for six years from 2007 to upgrade Auckland and Wellington rail networks;
- $25 million in 2008/09 and again in 2009/10 to upgrade the national rail network;
- $100 million upfront in upgrading the national network from 2003, and $25 million annually from 2004 to 2007.
Noting than absolutely none of that spending will boost the net financial value of the rail network at all (it is unlikely to be able to be sold for the amount being spent on it), now he wants to spend $500 million buying the whole lot according to Stuff. Toll wants $700 million, but presumably Dr Cullen will threaten "the state is sovereign" to force a compulsory nationalisation.
Toll is already paying the government $9 million per annum less than Ontrack (the Crown company which owns the rail network) is charging for its use. You might think Ontrack could simply tell Toll to stop trespassing, or to tell Toll that it will invoke the rail access agreement which means other companies can provide rail services on the network if they drop below a certain level. Yes, in case you didn't know, the "ownership" the Crown has of the track also gives Toll a monopoly on the use of the track, as long as it maintains a minimal level of service on the track.
Now a business minded government would take Toll to court to pay what is owed, or start confiscating rolling stock for part payment of the track access charges. After all, if a trucking firm doesn't pay road user charges to use the government's state highways, it faces being fined and the unpaid charges recovered, likewise airlines using airport.
No, after pledging to spend over $1 billion on its OWN assets, it wants to spend over $500 million buying the company that uses them which doesn't even pay what the government charges.
What this will mean is we will be back to the days before privatisation, when the railways lost money - and either were subsidised heavily (1982-1988) or getting bailed out regularly (1982, 1988, 1990).
Maybe the truth just hurts too much, maybe the government needs to give Toll the rail network back and say - make a go of it, and if you can't, then sell it to whoever wants it. While it's at it, it could sell the state highways as well, now that WOULD be worth a fair bit.
but what would John Key do?