16 March 2007

The railway religion

You, through your taxes, are paying to reopen the Onehunga railway branch line so that a new passenger rail service can be started from Onehunga to Britomart. Yes there is a railway there, but the passenger service ended in 1973 (a decision by Ron Bailey, Minister of Railways in the Kirk government – hardly a government of neo-liberal economists!). Freight services dried up some years ago with the termination of contracts for serving the wharf at Onehunga. The line simply has no economic use, unless some major freight customer wants to use the wharves at Onehunga.
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One commenter on the NZ Herald website looks at it critically (Tony - most of the rest commenting are muppets)
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$10 million is needed to bring the line up to scratch – that’s your taxes. As much as $5 million more is needed to build a station, that will probably come directly or indirectly from Auckland regional ratepayers. There will need to be more trains to provide the half hourly service (yes half hourly!! The tracks will sit empty every 15 minutes – imagine a new road like that!) . So another $9 million for 3 2-car diesel units for a half hourly service, double that if you want quarter hourly, double it again if you want a service that reflects the minimum efficient capacity of a passenger train (three busloads). However I’ll be conservative and argue $9 million, not $36 million for a frequent high capacity service.
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So $24 million before we’ve carried a single passenger. There will be fare revenue, but it will recover about 40% of the operating costs (based on recent cost recovery ratios from fares) – that doesn’t include renewals.
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So how many people will this be for? 300 more rail passengers in the two hour peak by 2011. Of that 300, only 57% will actually be at the two stations on the line, the rest will be people at the stations on the main line (catching it because of a higher frequency service, which could be achieved without spending $15 million on the line itself). So that’s 129 passengers on the branch itself. Of those let’s conservatively assume half are a transfer from the local bus service, (which I believe is a commercial – i.e. not subsidised, service). So we are down to 60 people a day. 60 people to shift mode for $24 million. $400,000 per person to shift mode!! Add in the remaining 85 on the main line (remember 171 would use the trains for the line at stations on the main line, and half of those were bus passengers), who can share the cost of the rolling stock and the subsidy, and we are down to $374,000.
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And that’s before you’ve paid 60% of the cost of running the damned train from your fuel taxes and rates.
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But this is a good deal according to the Greens - because trains are good, always, without fail, even services that couldn't stack up in the days the railways were run as an employment scheme with a monopoly on medium to long haul freight.
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Of course the next step they all say is a rail service to the airport hmmmm, with a bridge no doubt. Remember the city-airport rail service in Sydney isn’t economically viable, and Melbourne looked at it and couldn’t justify it, developing an express bus service instead (which was introduced after the Citylink tollway was built, greatly reducing travel times to/from the airport). Ask yourself how many people going to Auckland airport actually start their trips anywhere convenient to the rail line between Britomart and Onehunga - why would you get the train from the North Shore (you're going to transfer downtown really?), Waitakere and Manukau or even most of the isthmus. Would Helen Clark get it from Mt Roskill? Hardly.
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Nevertheless, this is a religion – the rail religion – devoid of economics and reason. 129 people on 4 train services in the 2 hour peak is around 33 people a train - that's called a bus load - and a train that short is NOT environmentally better than a bus, because trains are heavier and consume more fuel - that's why a general rule of thumb is you need 3 bus loads to make a train start to be worthwhile.
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Now if you talked about the corridor being used to take trucks (and buses) between Onehunga and the Southern motorway, you might have a better case.
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No - you're gonna to be made to pay $374,000 up front to shift one person from car to train, and subsidise 60% of that person's trips, whereas before you didn't. You could always buy them small apartments next to work instead.

15 March 2007

Does IQ match income?

"The government thinks our IQ is based on our income" so said a young mother from one of London's less well off east/south east suburbs on BBC Breakfast TV this morning when asked about government interest in teaching parents how to feed their kids.
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"I know about how to eat healthy and all of the parents I know too, just because we're not well off doesn't mean we're stupid. The government thinks we all eat ready meals, when I find it a lot cheaper to buy fresh food and make my own meals for the family, and they are healthier too." She said the main problem was the food supplied at schools, and the snack vending machines there, which are unhealthy. Her two kids (one had the name Zeppelin - she admitted she had been a hippy) seemed happy and healthy.
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That's what she said -with a very strong east end accent (too strong for EastEnders) and I think the BBC Breakfast hosts were slightly taken aback.
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You see this is a problem, do-gooding bureaucrats and MPs think the problem is that people ARE stupid and don't know how to eat and don't know smoking is bad for them, and if like concerned parents they get told enough - they might learn.
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In most cases people continue to smoke or eat badly because they choose to do so, not because they don't know fruit and veges and freshly made food is better than fast food and snacks. Honestly, the only people who don't know better are mentally retarded.

Where is the Conservative Party?

I cautiously welcomed David Cameron as leader of the British Conservative Party. I thought he might bring some energy, ditch the old-fashioned fuddy duddy school prefect type “tell you what you do” nonsense that IS conservative, and provide an electable alternative to New Labour. Britain is one helluva nanny state, you seriously cannot believe how much the media and politicians regard government as the solution to almost anything. There are regulators for just about every sector, deregulation means reregulation, and the state is there to hand hold them all so people don’t do anything that might harm themselves – while taxing ever more and more.
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Cameron might have sold a Conservative Party that wanted to reduce nanny state, and start to wind back the nauseating bureaucracy that is UK central and local government. Well maybe, there is a little bit of that, but the latest policy takes the cake on outflanking New Labour on the left. It is a tax on aviation. The purpose is to cut the number of flights and tax more polluting aircraft (which is ridiculous since most airlines optimise fuel efficiency with their fleets for obvious reasons, traded off against capital availability).
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The Tories want to tax domestic flights, and to tax international flights on the basis of everyone being permitted one shorthaul (European) international flight a year (return), beyond that you pay. Consider first the bureaucracy of a ration book system for flying, but mostly consider why this is to happen – to combat climate change.
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Reason has gone out the door on climate change policy in the UK, the two main parties believe in unilateralism with absolutely no evidence of any benefits from their climate change policies. Taxing aviation will do nothing besides give David Cameron a new source of income, though he says he will cut other taxes in exchange – which is shuffling money around. Especially as it is another tinkering of tax in the form of "a new transferable tax allowance for couples with young children". Typical politician, wont cut basic taxes - just hand out little lollies - like Dr Cullen.
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Taxing aviation will do absolutely nothing to change temperature around the world, it wont change behaviour (airfares are too high relative to the taxes talked about for it to matter or be factored into travel decisions) and at worst will see a shift in airport hubbing away to other countries in Europe. Heathrow is the best airport hub in the world, and this may reduce its competitiveness.
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However, besides all that, it is absolutely galling to see the Tories propose a ration card type tax on aviation as if to say “you’ve flown once, now go off and sit in your flat and think of England – you’re not allowed to fly more unless you can pay – and we all can, rah rah rah”.
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UKIP is a hopelessly incompetent alternative protest vote, and I want rid of New Labour, primarily because of ID cards, but also because I don’t believe Gordon Brown can bring anything essentially new and exciting to free up Britain – quite the contrary. However, vote Tory and pay aviation taxes makes me go cold. Where has the party of Thatcher gone?

Britain's independent nuclear deterrent

As I write this the House of Commons has voted for the replacement of the UK’s Trident nuclear submarines, carried only because the Conservative Party almost entirely is voting with the Labour government – as nearly 100 Labour MPs have voted against it. 409 in favour, against 161.
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The arguments put in favour of Trident are that it is inappropriate for the UK to abandon its nuclear deterrent when nuclear proliferation (Iran, North Korea) continues, potentially posing a serious threat to its security. Another consideration is that while Russia is no longer an enemy, it is not exactly a very good friend – the risk that Russia could once again have ambitions eastward cannot be foreseen 25 years in advance. Indeed, anyone who 25 years ago would have forecast a quasi-genocidal war in Sarajevo would have been looked at askance. In addition, having a nuclear deterrent puts Britain with France and the US, as the three leading Western defence powers. While the UK could certainly expect the US nuclear umbrella to be used for its defence, abandoning its nuclear deterrence would send a negative message to the US, and greatly harm bilateral relations.
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Those against Trident believe it is a waste of money (£15 billion) that could be spent on social services (note they NEVER argue for tax cuts, funny that), but are primarily driven by two motives. First is a utopian vision for nuclear disarmament, with the naïve belief that if the UK disarms, it will encourage non-proliferation elsewhere. Those opposed to Trident are part of the so-called “peace movement” and claim to want a nuclear free world.
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Let’s look at nuclear disarmament, which has happened on a grand scale since the end of the Cold War, with the US, UK, France and Russia all substantially reducing their nuclear arsenals since the late 1980s. This happened not because any one party unilaterally disarmed, but because the USSR – a regime far too many in the “peace movement” either supported or whose sins it ignored – was defeated economically, politically and philosophically. Had the nuclear disarmament called by the very same type of people in the 1980s occurred, the Soviet Union would not have been brought to its knees – something that far too many in the so called “peace movement” didn’t like (ignoring the Soviet launched imperialist wars in Afghanistan, Korea and the Middle East).
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Further nuclear disarmament or the termination of nuclear programmes has occurred either because a threat was removed (South Africa) or a threat was real (Libya). North Korea pursued a nuclear weapon because it lost the Soviet nuclear umbrella and needed a tool of blackmail so its bankrupt system – and it seems to have worked. India and Pakistan had the capability for many years before “turning the last bolt”, but the sub continent’s nuclear deterrent has worked. Iran on the other hand is pursuing nuclear weapons as it embarks on its own ambition to obliterate Israel. Israel’s nuclear deterrence is just that – it has also largely worked to defend it since the Yom Kippur War. None of the almost all fascist Arab states dare touch it – and Israelis wont dare remove their greatest tool. Meanwhile, on its own, and subject to few protests from the so-called peace movement, China builds up its nuclear arsenal. However, that’s apparently ok (don't see Chinese flags burnt or major protests outside Chinese embassies).
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There is an argument that since the end of the Cold War, Europe is at peace and no longer needs nuclear weapons. This is incredibly naïve – while many ex. communist states are now EU members (indeed almost all European ones are now), Russia is not. Russia remains a state to watch. Britain’s nuclear deterrent keeps Russia from doing anything silly.
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A nuclear weapon free world will only come will all those holding nuclear weapons at present are truly open liberal democracies, with no sectarianism and no states vowing to wipe them off the earth, with no terrorists seeking to fight jihad, and no rogue states engaging in blackmail. That means an end to Islamism, an end to Marxism-Leninism, an end to kleptocratic fascism. In other words, a truly free world of secular peaceful states.
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Unfortunately the so-called peace movement grants moral equivalency between the UK, Iran, North Korea, Russia and China. The UK has never seriously threatened its nuclear weapons in anger, Russia (as the Soviet Union) not long ago sought to eliminate freedom and liberal democracy in the West.

Now is not the time to be naïve and pander to the one eyed hypocrisy of the so-called peace movement, which seeks as a priority disarmament of open free liberal societies, but has little interest in disarming closed, authoritarian states. Stupid or another agenda? You decide.