07 May 2008

Dr Cullen's logic impeccable

Around 30-40% of you still trust a fair bit of your income with this man. Would you trust him spending your money to buy food, clothes, entertainment? Would you trust him to select a partner for you? So why do you trust him to buy you a pension, insurance against sickness and unemployment, accident insurance, health care and education for your kids?
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Just take this comment from the NZ Herald on why he justifies taking your money to buy locomotives, wagons and rail ferries "There were many benefits to the Crown being owner including that the taxpayer buyback meant "we won't be seeing profits flowing out of the country"". Why did he bother using the last five words?
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He also said "a properly integrated rail system could not be run at a profit without some degree of subsidisation by the Government " again why use the last eight words? A profit with a subsidy is not a profit.
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Oh and by the way, why would you trust Bill English and John Key to spend your money on exactly the same things? Especially since they wont dispose of this new taxpayer liability. Meanwhile ACT is condemning it, condemning National but not saying what it would do. What's that about? What's wrong with the "P" word Rodney?

Tame Iti gets to be a thespian

Yes, I know it's obvious to mention this, but who else could get bail on firearms charges that would allow you to leave the country so you can act in a play in Europe?
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Tame Iti is a communist, and has a long history of siding with totalitarian thugs and long has wanted separatism for Tuhoe (wish I actually don't mind as long as private property rights are respected and there is no claim on the NZ taxpayer) as seen in this video.
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However, his politics don't matter as much as how the oppressive occupiers allow him to go on a global trip as a thespian, despite firearms charges (which admittedly may not exist under a libertarian government).

Wellington transport plan reasonable

Well the Greens are unhappy (but building a road and not building a steel church - I mean light railway - means that is guaranteed), but the plan itself as reported in Stuff isn't half bad. A new flyover at the Basin Reserve (long been planned and necessary) will make a big difference as will widening Wellington Rd and Ruahine St. Bus lanes through town and down Cambridge and Kent Terrace could do some good (especially if taxis and trucks are allowed on them too), so all in all a reasonable way to spend some fuel tax.
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The ridiculous light rail fetish, which few of the enthusiasts accurately cost on a per passenger km basis, should be killed. However, second Terrace Tunnel and Mt Victoria Tunnel would be good - but there is no talk of tolls which could fund them. I'd argue that State Highway 1 could be privatised and that would incentivise construction of a decent bypass as it could have variable tolls by time of day, but there is little appetite for this in Wellington.
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Oh and while the Wellington Mayor is enthused, note no MPs will get fired up about modest good road projects - they don't see votes in them (unlike Peter Dunne's fetish with Transmission Gully), so they often get neglected. Not even the Transport Minister, Annette King, whose electorate would benefit enormously from improving the roads between the city and the airport, is too interested - but then maybe she's looking at what her job is after the election?

06 May 2008

NZ Herald hits rail issue on the head

Today's NZ Herald editorial has made the point that is ignored by the anti rail privatisation church:
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"If those private owners who put their money into the assets did not maintain their investment, there must have been a reason. They would surely have not let those assets deteriorate if rail was truly competitive with road transport and capable of realising a good profit. Passenger services would not have ended if people had viewed trains as a preferred means of transport. Most recently, Toll had been unable to make the business afford the rent that the Treasury wanted for use of the Crown-owned track network. Clearly, there was a significant distance between the profitability of the rail service and the cost of infrastructure maintenance."
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Absolutely furthermore "People will also take some convincing that modernisation, in itself, will make rail attractive to customers. Evidence supplied by Wisconsin Central and Toll suggests there is a substantial, perhaps unbridgeable, gap between it and roading in purely economic terms."
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So you see, it was economically rational to run down the railway system. It simply wasn't worth it. Unless of course you believe the nonsense about the environment, or you want a train set to run.

So what IS happening with fuel tax?

First, the government announces, some time ago, that to fund more inefficient public transport, and roads that are politically driven, it will allow regional councils to levy fuel taxes on petrol AND diesel (diesel typically has no tax usually).
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Helen Clark says on the 6th that the new regional fuel taxes to subsidise public transport (and fund more roads) wont happen.
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Dr Cullen then says they will. However the government wont agree to a "full tax" immediately. He says that without a regional fuel tax in Auckland, rail electrification can't proceed. You might ask why those who would benefit from rail electrification - users and operators of the commuter rail service - can't pay for it themselves? You might ask by how much congestion will drop because of electrification? You wont get an answer.
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Now Helen Clark says it wont include transport in the emissions trading regime until 2011, so that the punitive 8c/l levy would be delayed. Note the word delayed. She also said the government wont approve a regional fuel tax as high as 5c/l, which means you might get one less than that.
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However, one thing you can be certain of - Labour will increase fuel taxes or levies. You might ask how good the "investments" are that it expects the taxes to be used on.