Kiwi FM - you didn't listen to it, so now you pay for it

Not long ago, Canwest decided to try a new radio station format - with 100% New Zealand music and called the network Kiwi FM (unrelated to the former Waikato contemporary hit radio station of around a decade ago). It broadcast in the three largest centres and was a commercial flop.

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You see, most people don't want to listen to a radio station playing just NZ music - in fact, given that commercially viable radio stations in our highly competitive market need only about 5% of listenership to start being worthwhile, Kiwi FM couldn't even manage that.

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So, in short, despite the pleadings of the taxpayer subsidised NZ music industry (they are in it for the culture - except they want to be paid for it) and the Labour government - virtually all of the public does not WANT to listen to NZ music because it is NZ music.

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What a surprise - you choose music you like because of the melody, beat, lyrics, talent of the performer etc -not because it is from New Zealand. If being local mattered, you'd like nothing more than to listen to your next door neighbour on the guitar -or the band at the local pub. Nationalism over music is either marketing bullshit generated by the local music industry or some mind-numbingly stupid xenophobia in reverse, that makes something "special" because it is homegrown.

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Steve Maharey appears to be both - he supports the local music industry, because somehow people who can't generate public support for their music are deserving of money taken from those who don't support them, through taxes. He also thinks there is some sort of nationalistic zeitgeist in local art and culture that needs supporting. It is important you pay for a radio station you don't listen to, because it help binds you to the rest of the New Zealand public - in only the way a politician and university academic knows how - inexplicably!

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So, you see, Canwest - the latest state moocher - was going to close down Kiwi FM and replace it with The Breeze (yawn) in Auckland and no doubt other formats in Wellington and Christchurch. The frequencies that Canwest own can be put to better use broadcasting radio stations that people want to hear, not Kiwi FM. This upset Maharey and the noisy local music lobby, firmly with their snouts in the taxpayers' trough since Labour was elected - so three FM radio frequencies are being made available to Canwest to continue broadcasting Kiwi FM, for free.

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The government has basically announced a package of pork to keep this unsuccessful station on air. Not only is it getting frequencies that should be sold off to the highest bidder, but it is getting taxpayer money for particular radio programmes - which, of course, wouldn't be needed if enough people wanted to listen. The intention is that the station should become "not for profit".

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So you're going to be subsidising a privately owned commercial station to become a non-commercial station - with an audience share of not 5%, not 1%, but 0.5% of all radio listeners 10+ nationwide (0.9% in Wellington and 0.7% in Auckland). Less than most Maori stations, less than Concert FM.

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Tune into it sometime to decide if you're happy about it, and then write to Maharey and complain, and think about whether getting government help to prop up your uneconomic radio stations is a good thing for Canwest to do. New Zealand music isn't special - some of it is good, some of it is awful - none of it has to do about what country it comes from.

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UPDATE: I hate socialism blogs about why Kiwi FM isn't a success and shouldn't be propped up.

Lindsay Mitchell rightfully points out that what is worse is using Kiwi FM's high NZ airplay to bully other stations into playing more- although there is NO legal instrument to enforce a quota - it is all voluntary and as I pointed out here, the CER Agreement and WTO commitments of the government mean it MUST remain voluntary.

Telecom gets a hammering - no you don't own it, unless you have shares

This is my Friday rant.

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$4.72 for Telecom, it was $5.70 a few weeks ago.

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All the slobbering foaming at the mouth "it is ours anyway" mob will be downing their bottles of cask wine in excitement, stroking their moustaches and beer bellies, or their scrunched up envy ridden faces going on about how good it is that those foreign bastards are getting it at last. Ringing up talkback I bet to have a good old moan about the good old days and that bastard Douglas who sold Telecom (actually Clark and Cullen had the same amount of say at the time - Douglas had long been ousted as Finance Minister).

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Simple message - you don't fucking own Telecom. The "you" you talk about, sold it - sold it because "you" owed a mountain of debt and needed the money to pay some back - "you" spent it on welfare and subsidies and the like. "You" didn't spent a cent on upgrading Telecom after that. If "you" didn't like it, then maybe "you" should have asked government to spend less in the 70s and 80s - but I doubt if "you" did.

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Your bullshit argument that "we paid for it so it's ours" is complete nonsense - it is so mind numbingly stupid that it defies comprehension that people who know how to put clothes on can make the argument. This is about as relevant as going to the owner of a car or house you ONCE owned and claiming it is yours again -having sold it previously. You might have built the house, but you sold it and lost all rights to it - fair and square. "Oh but I opposed the sale" - well tough shit. In a liberal democracy your argument lost. The sale proceeded and no party has ever been elected to buy it back.

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So frankly when it comes to Telecom, unless you own shares you can simply fuck off, buy some and then have your say at the AGM, vote on the directors etc.

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Pay attention to something you own, and any contracts you have with Telecom - all your imaginary public good socialistic bullshit is just that - because when it comes down to it, I can't hold you or any of you lot accountable when your socialist bullshit does not deliver - such as with health care.

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It is times like this that I wish that Theresa Gattung just announced that Telecom was pulling out, and I mean pulling out - it was giving notice of the termination of all service contracts, and would be dismantling its network and selling the wire and fibre optics for scrap. Now I know this makes no business sense - but Telecom is entitled to do this - just like you're entitled to destroy your own property (unless it is a special tree or a historic place). Imagine if it did that - then where would you be? No producer has an obligation to supply you with any good or service as of right - remember that. You get goods and services by contract. Just as you can decide to buy no more, so can the producer decide to sell no more.

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Apologies for those who have shares - you do own it, and I'm sure you're feeling less than happy about how much the government has destroyed some of your wealth with cheerleaders across (most) of the political spectrum.

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Sometimes I simply think it is time that consumers realised how lucky they are that producers even exist.

English local elections give Labour a fair beating

England (not the UK) had its local council elections yesterday and while I tend to avoid getting too excited about one side vs. the other (all being different version of Nanny State) I tend to feel the Conservatives are slightly less likely to tax and regulate than Labour or the LibDems.
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Voting is done by ballot box, not postal as in New Zealand and was on a Thursday – so turnout is a derisory 36%. I remember when NZ had voting by ballot box for council elections and turnout average around 25-30% unsurprisingly.
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Unlike New Zealand where, with the exception of perhaps Auckland and Christchurch, party politics are not strong (and even where they are, they have stupid deceptive names with words like now, future, citizens etc to hide them being left or rightwing blocs), in the UK local councils are strongly partisan – effectively being mini-versions of the House of Commons. All the parties see it as a test of overall popular support – and this time round, that would be a fair assumption.
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It seems odd to punish local councillors for what central government politicians get up to. John Bank and the pro-Nat/ACT Citizens and Ratepayers Now bloc won in 2001 in Auckland City, a year before the Nats had their worst election result ever in the general election. A good council (whatever that is) should not suffer because its party is bad in central government and vice versa - but that is what happens in England.

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Labour has suffered an enormous defeat – not helped by the scandals of John “how the hell did he get laid” Prescott, Charles “lets not deport the rapists” Clarke and the media pack anxious for Blair to step down. Labour is looking more and more like a lame duck, probably unfairly so – whereas the Tories, although with some cynicism, are operating in a united, cohesive fashion and David Cameron has injected some life (if not principle) into the party. The LibDems have been rescued from oblivion by Sir Menzies Campbell putting them on life support, so are holding their own.
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Labour lost control of 18 councils and lost 254 councillors, the Tories gained 12 councils and 250 councillors, the LibDems gained 1 council and 18 councillors and 5 councils shifted to “no overall control”, with no single party winning a majority.
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More disturbingly the “we’re not racist we just have lots of yobbos in our party who hate dark skinned people” BNP won 11 seats in the London borough of Barking and Dagenham – pity anyone not white living there. The BNP does well tapping into latent racism and fear of crime among working class white people, you know the sort you don’t want to be sharing a beach in Spain with. The BNP is an odd bunch, the core neo-Nazis who hate Jews (the word Zionist is used in the manifesto) and anyone not Aryan, a neo-conservative Christian core who are not that different from US protestant KKK groups and old fashioned socialists who believe the state should own and do a lot more than it does – national socialists you see? Although if you look at its manifesto, the BNP wants to look at the NZ experience in abolishing agricultural subsidies! I wont be moving to Barking and Dagenham (like I would anyway!).
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I’m just thrilled my own council, Camden, for the first time in its history is no longer a Labour council. Might be nice to see some accountability in a council that is responsible for the monstrosities pictured above, although if the LibDems and Labour co-operate it will be a tax and spend council once more.
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David Cameron should be pleased, Blair will be despondent, and the LibDems relieved. John Prescott will reportedly take the "blame" for the result - the real blame is that England is tired of New Labour spin, and has swung to the right. The poor have gone to the racist right and the middle and upper classes have gone to the Tories.

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FULL ENGLAND COUNCIL ELECTION RESULTS on the BBC

Welcome everyone doing school projects on Transmission Gully

You've managed to sustain my hit rate over the three weeks I've said nothing on anything else. There must be around half a dozen classrooms doing this! (I have an invisible counter)

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Just search Transmission Gully on my blog, you'll find tons that isn't pro-Gully, that isn't pro-rail, but is pro-efficiency.

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Remember, it is a long way towards being built. The Transit NZ Board has to decide whether to support it as the long-term option, and then funding has to be found, and the project needs about two years of detailed investigation (easily worth $3-$5 million) first. Transmission Gully wont be a problem for this government, it will be a problem for the next one - it wont be affordable then either.

Bolivia adopts Alliance policy on energy

You don’t hear anything from the so-called “peace movement” about a government sending its military in to steal the assets of private companies – this being what is now happening in Bolivia, as President Evo Morales (pictured) – pinup boy of the left because he is indigenous (though they don’t regard Margaret Thatcher as a pinup because she is a woman, because she didn’t espouse their ideology) – confiscates what he calls “our natural resources”. This is the step beyond unbundling that the Alliance (they still around?) would approve of. Trevor Loudon warned us of Morales when he was elected and Morales links to Hugo Chavez and Fidel Castro say it all.
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The BBC reports that the Bolivian army has now taken over the Palmasola refinery, and Morales has demanded that gas companies “renegotiate” the terms of their contracts with the government, and they must “sell” 51% of their assets to the state – no doubt at a price the state demands. He demands that the Bolivian state take 60% of production from all gas fields except the two largest, which will have to give up 82%.
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Soldiers have been sent to 56 locations, and Morales has said this is just the start. According to the BBC “Mr Morales said the gas fields were "just the beginning, because tomorrow it will be the mines, the forest resources and the land".
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Fool.
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Ironically, the left wing (but decidedly pragmatic) President of Brazil Lula da Silva and left wing Spanish government are both concerned – because two of the biggest investors in the Bolivian energy sector are Brazilian (Petrobras) and Spanish (Ripsol) companies respectively. On top of that, Brazil imports half of its gas from Bolivia. Gas isn’t a good commodity to transport in large quantities other than by pipeline, so substitute suppliers wont be easy to find.

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Petrobras of Brazil has cancelled all plans to invest more in Brazil and Bloomberg reports that these moves are likely to increase prices in Brazil and Argentina.
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The appropriate response by the companies is to demand that property be returned, otherwise they should use force in self defence. An alternative would be to exit and demolish the refinery, pipes and the rest, take their skills and run. Of course neither will happen – they will face the prospect of having half of their property stolen and negotiate to keep the rest. Ideally the Brazilian and Spanish government should threaten military action to protect their nationals – much as was threatened against Iran in the 1950s when it did the same to British and American oil companies.
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I expect the left will be cheering this on – claiming that the gas “belongs to the people”. Well good on “the people” – let all the companies remove their expertise and see how well the average Bolivian peasant does in figuring out how to get the gas out of the ground, refine it and sell it. If it weren’t for foreign companies using THEIR knowledge and training people to access the gas, then the gas would be useless to Bolivians – much as radio spectrum was useless to Maori (and in fact everyone on the planet) in the 18th century, as nobody even knew it existed, let alone knew how to use it. Bolivian gas, like Venezuelan and Saudi oil only exists because of the application of the mind by scientists and entrepreneurs to the resource, which previously wasn’t even known to exist. The Brazilian, Spanish and other foreign companies accessing, refining and selling it paid substantial royalties to the government to do something the government could not do – now the companies should walk and take everything left of their’s with them.
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The confiscation of property in Bolivia is utterly repulsive, and if Morales does the same to other property, then the people of Bolivia will get what they voted for – a wasteful socialist autocracy, whereby success gets confiscated by the state. I am sure Morales is hoping to make a fortune from high energy prices and redistribute the income – but he will have successfully killed off foreign investment from Bolivia. South America's poorest country will remain so.

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By the way, there is parliamentary support for Evo Morales. Hone Harawira praised him in his inaugural speech, and Tariana Turia and Pita Sharples by press release. I guess because he is indigenous, it's ok to confiscate property and chase off tau iwi investment is it?

- Evo Morales profile on Wikipedia