Super Dooper Tuesday?

I am trying hard to resist the only sensation I get from the US primaries, the only thing I can get passionate about, deceptive though it may be, which is to cheer anything that stops Hillary Clinton become President.

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You see, it is visceral, it goes back to the days after Bill Clinton was elected with a minority of the popular vote (forgot that, didn't you?), when Hillary decided she had been "elected" too and Bill appointed her to nationalise US health care. It goes to her views against free market capitalism, and so much of her election platform which is about tinkering, doing more with the federal government, giving away other people's money here and there, and control. Beyond that is her sense of entitlement to rule - she WANTS power, power over people, and she believes it is her right, her goal to be the first woman President, as if her sex gives her more entitlement. Her willingness to play dirty against Barack Obama speaks volumes, and has backfired somewhat.

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While Hillary Clinton is, for anyone who believes in individual freedom, and private property rights, an anathema. Her current opponent, Barack Obama is no better. He is a nicer, friendlier and more seductive face of exactly the same politics. There is no substantive difference between Obama and Clinton, indeed Obama's endorsement by those on the left such as the Kennedys (another clan of "born to be rulers"), Democratic Socialists of America and the Communist Party of the USA (hat tip: New Zeal) makes him potentially more dangerous.

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In addition to that, Obama's charisma is a contrast with Clinton's so-called divisiveness. Obama doesn't excite conservative USA as much as Clinton does - as Andrew Sullivan in the Sunday Times pointed out:

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She has extraordinary negatives. She galvanises the conservative movement in ways no other Democrat can. Against McCain, she and she alone enables the Republicans to forget their deep internal divisions and unite. Nothing – nothing – unites them as she does. The money she will raise for the Republicans is close to the amount they can raise for themselves.

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Sullivan believes Democrats should pick Obama. I believe, as difficult as it is to swallow, that it would be better for the world for them to select Clinton. Obama is a flake, he can speak well, he can inspire, but the substance behind what he says is absent. The media's inability to quiz him on this has been shocking.

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By contrast we know what Clinton believes in, and fortunately, on foreign policy, she is willing to be braver than Obama. She is pro-Israel, she supports sanctions against Cuba, she supported a resolution calling Iran's Army of the Guards of National Revolution terrorists, she voted in favour of authorising military force against Iraq and she stated on CNN that "The first obligation of the president of the United States is to protect and defend the United States of America". For her many many flaws, I would feel slightly safer with Clinton than Obama.

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Oh yes there are Republicans. Romney the flip flopper, who once was seen with Margaret Thatcher, will not win. John McCain, who is Republican lite, or a member of the rightwing end of the Democratic Party, will win the nomination. The best you can hope for with him is that he wont reverse the Bush tax cuts. woopee.

Auckland's Northern Busway opens, but..

A great hurrah has come about from the opening of the Northern Busway (once called the North Shore Busway, but Transit often changes the names of projects for unclear reasons). Nothing wrong with increasing transport capacity in Auckland no, and it is a far better project than upgrading rail, but still - you wont see any coverage investigating the other side of the busway. Journalism is what I am looking for, but I simply don't see it.

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The Stuff report on it (above) could be a government press release, and the NZ Herald saying "The first stage opened in 2005 and resulted in 500 fewer cars being on the Northern Motorway" doesn't have anyone questioning the evidence. It may be true, but what was the cost of achieving this? Was it worth it? 500 cars over what period? A journalist would ask these questions, instead of parroting government statements as fact.

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One thing I notice is how the cost has gone up, pretty easy to find this out as you just need to look at past issues of the Transfund National Land Transport Programme/National Roading Programmes. The cost of the busway (excluding stations) is now $210 million. Only four years ago the cost was going up from $95 million to $110 million. You might ask how it went up to $210 million (plus the bus stations). The reason being because Labour has been feeding massive road construction inflation, and the contracting industry knows when the government wants something to be built - regardless of cost. You see, upgrading public transport is important to this Labour government - regardless of cost. Think what else could have been built had the government taken a more prudent approach to increasing spending on roads, or if - perhaps - it had not taken a personal interest in the advancement of certain roads. You're seeing it again now with the Waterview extension of SH20 (formerly Avondale), the PM wants it built, it has gone from $700 million to $1.2 billion in four years. Construction wont be starting for several years yet, but it will be over $1.5 billion by then.

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I wont go on about the details of this road, they are mostly here. It's basically an extra couple of lanes parallel to the Northern Motorway, with some flash bus stations.

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Now despite the Stuff release lets be clear, the money paying for it wasn't the warm bosom of the "government", it came from road users, all road users, although the only way all road users will benefit is from the handful of cars and buses that wont be travelling on the Northern Motorway as a result.

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Want to know the economic benefit/cost ratio of the Northern Busway? It's not clear, you see the government doesn't like Transit publishing benefit cost ratios anymore, it shows how many of the roads getting built aren't that good. It was just over 2 last time I knew it, which was around seven years ago. With cost increases and traffic increases, it probably is closer to 1.5 now. Not great, but not bad.

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Finally, the most important point - for all road users to note, especially those driving parallel to the Busway, is that it will be grossly underutilised if it remains only a busway. A corridor that cost over $200 million to build will lie, largely empty. A bus every 3 minutes! Imagine if a car passed along a motorway lane every 3 minutes! It deserves to be better used

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It should become a tollway. As a tollway, it could charge vehicles a premium to bypass congestion, like the 91 express lanes in California. The tolls would be high, and vary according to demand, and would ensure free flow conditions remain. However, the tolls could ultimately pay for the road (except that past road users have already paid for it). An even better option would be to sell it, let bus companies pay for the right to use it, along with other road users. People could hardly moan about there not being an alternative, the government owned "free" motorway beside it would remain available.

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Of course the whole damn thing is limited by the Harbour Bridge, itself a bottleneck, itself needing money to have its life extended and for a second crossing to be considered. So here is another solution.

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Sell the Auckland Harbour Bridge (may as well sell the Northern Motorway from Onewa Road to the Victoria Park Viaduct as well). The new owner can then toll it, without booths, but fully electronic. Then what?

1. The new owner would be able to use revenue from road users to maintain the roads, and build new capacity. You see, the pursuit of a second harbour crossing funded by taxpayers is futile and expensive.

2. Tolls at peak times would be high, and congestion would be lower. After all, the owner would want people to use the road, but not for the road to be unattractive compared to the Upper Harbour crossing, or ferries. Of course higher tolls would make buses even more attractive, and buses could cross in relatively uncongested conditions.

3. Tolls could also help fund the Victoria Park Tunnel/Viaduct widening which has been delayed for years due to dithering, and funding. In fact, this project is probably the most valuable in Auckland, as it would eliminate the worst bottleneck at Spaghetti Junction - lack of capacity to/from the north.

4. The proceeds from selling the bridge could then be used to compensate the folk of the North Shore, in a rather simple way. Half of the proceeds could go to all North Shore City ratepayers could receive a lumpsum from the sale - this would be in recognition of how, as road users, they had contributed towards the road. The remaining half could simply be used to cut central government debt.

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Or do you like queuing?

Goodbye to a bully

Stuff reports that David Benson-Pope has not been selected to be Labour candidate for Dunedin South. Good.

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I blogged about his bullying behaviour in select committee, which I witnessed first hand some years ago. I don't care about allegations of being kinky, though the allegations around his behaviour as a teacher are somewhat more disconcerting. However, his involvement in the Madeleine Setchell affair is worthy of his dismissal.

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He's a hypocritical little prick, and his disappearance from politics will only be good. A world where obnoxious lying bullies aren't in politics is a better place.

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Though it's probably too much to hope that the people of Dunedin South will resist voting for a unionist.

Phasing out the DPB

Not PC rightly pointed out that one of the negative consequences of the DPB is that there has been a rising incidence of children being raised by parents who didn't want them, and these children end up being a problem in themselves. Now many on the DPB DO want and love their kids, after all the DPB was intended to cover a number of unfortunate events, such as death of a spouse and separation - not to fund a lifestyle choice.

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So what could be done? It is easy to say withdraw the DPB, but we all know that wont happen, what is needed is for it to be phased out. Here are some simple steps that, dare i say it, a National government might consider if it really wants to address welfare:

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1. Freeze the number of children current DPB beneficiaries can claim the benefit for. In other words, if you had two children when you got on it, you can't get more money for a third child.

2. Prohibit claims for the DPB for beneficiaries who wont name the other parent.

3. Replace the DPB with the unemployment benefit when the youngest (eligible) child is at school age, so that the focus moves from domestic purposes to employment.

4. Establish a legal alimony framework to allow the other parent of the dependent child to be liable to share the cost of raising the child. This will mean every separation will see this legal obligation come into effect, which will be predefined unless the parents expressly contract out of it by mutual agreement. Parents cannot rely on the state to fill any gap, beyond the unemployment benefit. This legal framework would effectively end new claims for the DPB.

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These simple steps would have several effects. Firstly, it would replace state funded parenting with parent funded parenting. Parents would be paying for their kids, and would have to sacrifice part of their earnings to do this, even on low incomes, even on the unemployment benefit. Single parents would be treated as unemployed once the youngest child is at school, shifting the obligation towards finding employment/income. Finally, it would put a substantial new legal obligation upon both parents to share the costs of child rearing, regardless of domestic living arrangements.

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Meanwhile, you might save enough money to knock a few more percentage points off of income tax, this in itself would also help people afford to raise their children.

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I know this proposal is hardly that radical, and would mean the DPB is gone within five years. While it would help shrink the state, by far the biggest change would be it would destroy the incentive to have children you can't afford, and suddenly parents who get away with little (mostly men), would have to face the consequences of their breeding.

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However, much has been written about this by Lindsay Mitchell, who has done and said more on this issue than most. If the Nats do even some of what I've listed, I'll be astounded though.

UK company makes record profit, makes BBC gloomy

So what was the lead item on BBC breakfast news on TV this morning? It was about Royal Dutch Shell making the biggest profit of any UK company in history. Now in Japan, South Korea, Hong Kong, Singapore or even China, this would be something celebrated, an enormous success. However not for the BBC on TV, the manufactured story was “are they ripping us off?”.
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Now the BBC isn’t stupid. It knows that a profit figure of £14 billion means little unless you have the context of the value of the company. After all, if the assets are worth £500 billion, it isn’t great, if the assets are worth £50 billion it is a tidy profit indeed. However the socialist minded British public see profit like a lottery win – not a return on investment. The BBC didn’t disclose the current market capitalisation of Shell. Secondly, it didn’t reveal where the profit goes. This isn’t clear yet, but presumably some will be reinvested capital and much will be dividends to shareholders, many of which are financial institutions with pensions, deposits and other funds that affect the wealth of many people. Keeping vague about this ensures that many think that it just means a few people living the life of Uncle Scrooge or Montgomery Burns, whereas Shell has generated a profit that will benefit plenty.

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There is a bigger question about reserves and whether discoveries and current production can keep up with demand, which is what the Daily Telegraph focused on.

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One thing the BBC did report was where the profit came from – exploration and discovery of new fields, the wholesale market for crude and refined products. It wasn’t retail at the pump, where the margins are closer to 1-2p per litre (noting than in the UK around 70p is tax). This doesn’t stop the leftwing union Unite stating calling it obscene – when what is truly obscene is the extent to which taxes on fuel fund big government at Westminster. Of course Unite doesn’t produce anything itself, it calls for a tax to add to the money that the state takes from oil customers, like far too many socialists Unite worships the fist of the state over the choices of consumers and shareholders.
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So there you go, big British firm makes a hefty profit and it is held in suspicion. The UK wonders why so many people have a poverty of ambition while a culture of envy is cultivated, and the thieving hand of the state is largely ignored.

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Of course given that by owning a TV set in the UK you are legally obliged to pay for the BBC, under threat of fine and criminal prosecution, regardless of whether you watch or listen to any of the BBC's content - I would wonder why the BBC can't answer why it can judge Shell, when its customers don't get forced to buy its products, but the BBC forces people who aren't its customers to pay for all of its products? Presumably TV and radio are more important than energy.