The year in retrospect - Part 1

A few bloggers have been retrospective for 2005, and since I am fleeing to France for Christmas, I thought I should list who I think deserve some mention as 2005’s greatest successes and failures politically:

New Zealand’s great political survivor Award: Helen Clark

After the disappointing budget, the reactionary approach to race relations and bungle after bungle, she is the first Labour Leader to win power in three consecutive elections. Only the first Labour government won three elections, but with Savage then Fraser as leaders. Regardless of the ins and outs of it, she pulled off a nailbiting finish against the National Party, shored up the leftwing vote and lost only a small percentage compared to 2002. She runs Cabinet and this government with an iron fist, and only Cullen comes close to her in terms of power and influence, (excluding H2). She is an intelligent, organised and hard working individual – and has a high level of political astuteness, and she knows what she wants and believes in. She will sell out her friends for power (Greens) and will sell her soul for it too (deal with Peters and Dunne), but knows that she is on top. I strongly dislike her politics, her view of the state and so much of what her government has done – but Helen Clark remains number 1.

The great comeback Award: National Party

Just look to see what a bit of backbone can do. National came back from the brink in this year’s election and we have an Opposition again. This is due to Don Brash. To rescue National from its worst ever result of 21% - a result of Bill English’s mealy mouthed inability to appear to stand for anything or to offend anyone was a monumental task while the economy continues to ride well with high international commodity prices, and the dynamism unleashed through the reforms of the 80s and 90s. However, Dr Brash did it. He got a higher proportion of the vote for National in 2005, than it got in any MMP election and more than it did in 1993 when it won by a slender margin. He did it by focusing mainly on two issues – race relations and tax. He campaigned, mostly, on eliminating race based laws and funding, which many New Zealanders could relate to – and on cutting tax, instead of increasing welfare for families. He proved that taking a principled stance won votes, and by far his biggest blunder was to prevaricate on any other matters of principle. Nuclear ships, the brethren campaigning issue – all of those weakened his image of credibility and honesty. The left were terrified of Brash, and still are. Only John Key matches Brash for a clear mind and principled approach – National has learnt it can turn its back on the vapid soporific nothingness of the Bolger and English leadership and win votes. National has captured rural and provincial New Zealand by storm - it has yet to make enough inroads in Auckland, Wellington or Christchurch - this is where it needs to focus. If it keeps up the focus on principle and strategy and screwing down the government's failures - it should be able to take the Treasury benches after the next election.

Politically lost but personally won Award: Winston Peters

Having lost his personality cult like Maori constituency to the Maori Party, some of the greedy grey grizzlers to the National Party – Winston Peters played a rather half hearted trump card in choosing the party with the largest number of seats to provide confidence and supply, and now he is invisible. Winston saw his party slip from 10.4 to 5.7% of the vote, he lost his electorate, lost a legal challenge to the newly elected MP Bob Clarkson, and after campaigning against holding the baubles of office – now enjoys first class air travel around the world as Minister of Foreign Affairs outside Cabinet. He can’t speak up against the government he supports credibly – he doesn’t have influence on policies decided in Cabinet, because he isn’t in it. In short, having been stripped of his Tauranga electorate base, Winston, now 60 years of age, is setting himself up for retirement. So has he lost? Personally no. He is getting lots of trips, getting a Minister’s salary and can enjoy the quiet life having been a major force for change in NZ politics for over 13 years. Winston almost cost the National party the 1993 election, and he shook up Maori politics more than any other party before in 1996. He will have given support to keep Jim Bolger and Helen Clark –arch opponents – as Prime Ministers, and he helped the campaign for MMP. Winston can spend the next few years looking back on a remarkable political career as a maverick, and live comfortably for it, and convincingly kept his private life, by and large, outside the purview of the media.
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Man happiest to step back from Cabinet Award: Paul Swain

With a sexy wife (Toni Reeves-Swain) just over half his age, Paul Swain is thrilled to step back from Cabinet and enjoy himself, with her. He can spend time with his new daughter, did I mention his sexy wife? Good for him. If only more Labour MPs would just live life to the fullest and stop trying to run everyone else’s.

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Phew we made it, but that's it Award: jointly won by the Greens and ACT

With the peak oil campaign flop, no big issue was in front of the public and some Greens supporters were more concerned about keeping Labour elected than voting for their potential (always potential, never actual) coalition partner. The Greens slipped in with 5.3% of the vote, and then found themselves cast adrift by Helen Clark, as the numbers looked better going with NZ First and United Future. Once again, the Greens are on the sidelines, for their third term in Parliament - not in Cabinet. Having lost one of their more important MPs (Rod Donald) they look bereft, and many voters are tiring of their armageddon vision of the future, and "do what we say" view of environmental politics. It will be hard work for Jeanette Fitzsimons to turn around.

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ACT was decimated by Don Brash bolstering the Nats and giving it a chance to win, not helped by opinion polls that made a vote for ACT seem like a wasted vote. ACT had always won votes because the National Party looked like it wouldn't win, or had lost its way in terms of being a principled party on the right - well the Nats found their way, took ACTs tax cut policy (watered down), its race relations policy and law and order policy - ACT had little left beyond "me too and more of it", but most voters were not convinced. Despite having a principled leader in Rodney Hide who believed more in the libertarian ideals of ACT than many of its backers and his fellow MPs, it floundered because a vote for ACT seemed pointless - it was National that was the real opposition for once. Rodney Hide focused on Epsom and took it, from a staid and virtually irrelevant Richard Worth - he saved ACT from what would have been oblivion, and now it is on life support with 2 MPs. It will be a challenge to see if he can differentiate ACT from National and win new votes for the centre-right - at the moment it doesn't look promising.

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The God Works in Mysterious Ways Award: Destiny, United Future and Christian Heritage

Having hooked his wagon to the former Christian Democrats, Peter Dunne got a powerful network of soft Christian supporters peddling United Future as a party of the Christian right, ready to defend the family and commonsense morality. However, it was stuck between the urban liberals who liked a party of the centre, and the Christian supporters who opposed civil unions and the like. Furthermore, many Christian voters saw little point in voting for a party which kept Labour in power for three years, which was seen as the source of "anti family" legislation - they either slipped towards Destiny or supported National. They were more motivated to get Labour voted out, than to vote for a soft Christian party. A vote for United Future was seen as a vote for nothing in particular and its vote halved. Peter Dunne is now propping up Helen Clark for another three years expanding the welfare state - great for a family party. Once he retires, this party is gone too.

More delightfully after marches of black t-shirted largely Polynesian and Maori men in Auckland and Wellington, Destiny Church's Brian Tamaki's Destiny NZ party (sorry he isn't the leader - no) got a paltry 0.6% of the vote. This is around what the Aotearoa Legalise Cannabis Party got in 2002 - fire and brimstone fundamentalist Christian Ayatollahs are not welcome in New Zealand.

Finally, following the disgrace of Graham Capill, Christian Heritage is a mere shadow of the party that nearly slipped into Parliament (with what was the Christian Democrats) with 0.12% of the vote. Soul searching time indeed.

More on blog roll

I've added a few more blogs to my disjointed sidebar in the last few days, all of them liberal/libertarian in one form of another - specifically:

Sir Humphreys
Socialist Free Haven
Who Cares
NZ Pundit
Lindsay Mitchell
Teenage Pundit and
Oswald Bastable.

Some are new, some not so new, but all have posted articles recently that I liked so it is just courtesy to list them :)

End of the Carbon Tax

The government is canning the Carbon Tax - probably thanks to NZ First and United Future, making the Greens livid and making David Farrar cheer.

It follows a 400 page report from the Ministry of the Environment which concluded "the proposed charge was unfair, inefficient and unlikely to substantially cut greenhouse gas emissions".

Given how committed so many in that Ministry are to the ecological agenda, this is damning stuff. I have dealt with a few MfE officials in my time, and they are at the least, very ecology conscious, and at the other extreme would have been very comfortable with a Green Party Minister. The Greens should read this report and see what an organisation that believes in their objectives does when it objectively analyses a policy - this sort of turnaround is not a small one.

However, as much as the Greens wanted NZ to be part of the moral leadership of the world - the only reason other countries signed up to Kyoto was because they would be net recipients - because they are experiencing economic decline, flat population growth (e.g Russia) or significant improvements in the efficiencies of their industries (e.g. former Soviet bloc countries) which means they are cutting net carbon emissions.

Moral leadership was to cost NZ a 0.2% decrease in GDP by 2012. That, under current values, is around $234 million a year - $59 for every man, woman and child that you would not be able to spend every year. The Greens would say this is a small price to pay for moral leadership - is it?

More fundamentally, the Greens are wrong - the planet is not burning, the world is not coming to an end - it has been ending for centuries, there was an ice age imminent in the 1970s, now it is global warming. The scaremongering and hatred of the productive with phrases like "They are putting the corporate pursuit of short-term profits ahead of the planet’s and our grandchildren’s future" are irresponsible.

These profits keep people fed, clothed and sheltered - they employ people, they produce the goods that we use everyday, they allow people to communicate, move, socialise and enjoy their lives. They pay for the professionals, the medication, the facilities for our infrastructure from plumbing to healthcare to heating. Most people don't make profits to put in a money bin like Uncle Scrooge, they do so to produce and consume and spend on what they want - which is to spend on what others produce.

As PC said some weeks ago, the question is whether government interference or benign neglect are better approaches when dealing with global warming.

Unfortunately the final call from the Greens was concern about what services will get cut or taxes increased to pay for Dr Cullen's "loss of revenue" - how about less government spending on bureaucracies, subsidies and crazy rail projects?

Bolivia's new socialist President

Also reported by Clint Heine, It looks like Evo Morales, leader of the Movement Towards Socialism party and member of the indigenous Aymara people will win the Bolivian Presidential election. Now Bolivia is ranked as a partly free country by Freedon House, but this victory is being acclaimed by many worldwide as a victory for indigenous people and the left.

Can the people of Bolivia look forward to a brighter future? Well that is less clear. Many on the right will fear him, because of his declared anti-Americanism and support for Castro, but it is a little more complicated than that.

He wants to legalise growth of the coca leaf, if not cocaine – which will challenge the US War on Drugs. This is good. The coca leaf is used extensively in Bolivia for its narcotic and pain relieving qualities, and banning it clearly has failed. As a locally used crop (as well as the basis for cocaine), Morales campaigned in favour of it, but will face pressure if the US threatens to cut aid because of his policies. This is sad - the war on drugs is one of the greatest travesties of US government policy and should be ended because it has failed miserably, and it is immoral to persecute adult users of drugs. It is also immoral to persecute the people who grow the crop.

More ominously Morales has talked about nationalising private company investment in oil and gas, although he is more likely to renegotiate contracts with foreign energy companies. That will cost Bolivia dearly. Curiously he said his party will respect private property rights, although “vacant unproductive land” would be turned over to farmers with little or no land (what sort of farmer has no land?). Though none of the reports I have found has said much more about his policies.

Morales is an ally of Castro and Venezuelan bullyboy Hugo Chavez, neither are friends of individual freedom or tolerate political dissent – it would be a disaster if Bolivia slipped towards a one-party state like Venezuela is doing. However, it will also be sad for Bolivia if by renegotiating the contracts with foreign energy companies, he strips so much value from them that they leave – or stop investing. Hopefully he will renegotiate genuinely – not with the threat of force – and all parties can come away satisfied. Hopefully he will not succumb to the corruption often rampant in Latin America, and confiscates wealth for the aggrandisement of himself and his cronies.

Brazil's left wing President Lula de Silva campaigned on socialism, but has largely maintained the liberalising reforms of his predecessors, when his own economic illiteracy hit reality (although he has been tainted by corruption) - hopefully Morales will face the same. Time will tell if he avoids being the state bullies that Castro and Chavez are, or the corrupt leaders that his predecessors were.

Auckland rail money gone - like that!

How do you wipe out the value of hundreds of millions of dollars in an instant? Easy - spend it on a railway in New Zealand.

The government is going to spend $540-$600 million of your money on upgrading Auckland’s commuter rail network (which it bought from Tranz Rail for $81 million in 2001), which means finishing the double tracking of the Western line, a branch line to Manukau city and some resignalling and other improvements. Divided by Auckland households, that is around $1800 a household - would you rather have that money in your pocket, spent on healthcare, your kid's local school or on some railway tracks (before the trains have even run on them)?

So an asset that had a book value of $81 million (I’m being generous in not considering market value) is going to have at least $540 million poured into it, and after that? It will still have a book value of $81 million. Fabulous investment isn’t it? Could the private sector take money by force and eliminate its value so quickly and get away with it?

Ah, there are profits to be made from that investment that aren't realised in capital. Um no. No profits, in fact you can't even cover your day to day operating costs.

Ah, the rail advocates say, you forget the social and environmental benefits of being able to run more passenger trains because of reduced car traffic and traffic congestion. No I haven’t. They are just too infinitesimal to measure. The passenger train operational costs are 80% subsidised and the majority of users were former bus patrons. Many of those buses were not subsidised – so there is no net gain at all there in terms of congestion, just increased cost (a few buses off the road will make virtually no difference). The shift from car to rail is also very low – and makes virtually no impact on congestion - work done by the ARC a few years ago indicated that road traffic speeds would be improved by less than 0.5km/h. This taxpayer funding is around 50% more than the cost of building the Mt Roskill and Manukau extensions of SH20 (both of which will make a noticeable difference to congestion) - and those are funded from petrol tax, so are paid for by road users.

Remember the $540 million for rail does NOT include money for running the trains, or upgrading stations or new trains.

So should Auckland ratepayers be thrilled? Well being saved from funding the rail track infrastructure upgrade is one thing – but the quid pro quo is that capital expenditure on stations and trains will be entirely funded by ARTA, which means ARC rates and Auckland Regional Holdings dividends and cash assets. Operating costs continue to be subsidised 60% by Land Transport NZ (your petrol tax) and 40% from ARC rates. That will cost ratepayers a packet, and you wont see congestion reduce. The marginal difference to congestion made by these projects is tiny – because rail is very expensive, and most trains don’t go near where most Aucklanders work. Buses do better, they carry around 30% of commuters into downtown Auckland, but they are not sexy – and some of them are not subsidised. It costs little to put in bus lanes, or other measures to speed up bus journeys.

Ah but the trains provide Aucklanders with an option to bypass congestion. Well, if you can walk or bike or bus quickly to a station and there is another station on your line that is close to where you want to go -yes, if the train stopping at every station is faster than driving continuously. However only 13% of Auckland employment is downtown where most of the trains terminate. Look at a map of Auckland and where most people live, it isn't near the railway stations.

Of course the Greens want to spend even more money, electrifying the network (when that has not been proven to be worth the additional cost) and building lines all over the place, with little care for where the money comes from to pay for it - you see it is ok to make unnecessary journeys, wasting electricity and other people's money, as long as you are on an electric train.