Alex Swney is wrong, with his solution to the problem "the current regime was fragmented, duplicated, obstructive and costly". You see it wouldn't be if politicians stuck to their statutory minimums.
The question of how much local government Auckland needs is a function of how much you believe Aucklanders need to be forced to pay for what they may or may not use, and how much you believe their private property rights (or extensions of them) can't be an effective delineration of rights.
Until you confront the issue of what local government should do, you can't answer the question of how to set it up. At the moment legislation says local government has a power of general competence, it can do whatever it sees fit short of passing bylaws beyond statutorily defined limits.
If the debate isn't going to confront that, then it is a complete waste of time engaging in this debate. What matters is what National thinks, and sadly there is little sign that it thinks local government should, at least, be confined to what can be generously called "public goods".
So John Key, what is it? Or should I ask Hone Carter? There is enormous potential to make a real difference to ratepayers.
25 June 2008
$400 million more for the rails
Yes according to the NZ Herald, Ontrack, the state owned company responsible for the railway network, wants another $400 million to upgrade the rail network.
To which I say - fine - once the government owns the rest of the railway operations, let Ontrack borrow the money and repay it from track access charges from the people who will people from it - the rail freight customers.
Let's ignore this pleading from the Ontrack CEO, which is a try on to force YOU to pay for it:
"Compared with some other forms of infrastructure development, the planned investment in rail is modest and will enable rail to grow and take pressure off the roads - saving money, improving safety and benefiting the environment,"
It's modest! $100 for every man woman and child. So go on Cam Moore, start walking around your neighbourhood and ask for the money from every household, per person of course. See if THEY think $100 is modest. If you wont ask the customers, why not ask the people you REALLY want to force to pay for it?
and what is this "compared with other forms". You mean like airports which make a profit and pay dividends? You mean like telcos and power companies that do the same? You mean like the road network which generates enough revenue that it can reinvest in upgrading the network and throw 15% of its money at public transport (including YOUR network)?
How does it "save money", when your network costs more to maintain than the users are prepared to pay, but the road network generates more revenue than it costs to maintain? and safety and the environment? Well go on say how many lives it will save, and the environmental claims are dubious at best.
So good on you Ontrack, get the bucket out and go door to door to do fundraising, because the appropriate answer to the question "can taxpayers pay", should be rather obvious.
Great investment Dr Cullen, yep, economic genius.
To which I say - fine - once the government owns the rest of the railway operations, let Ontrack borrow the money and repay it from track access charges from the people who will people from it - the rail freight customers.
Let's ignore this pleading from the Ontrack CEO, which is a try on to force YOU to pay for it:
"Compared with some other forms of infrastructure development, the planned investment in rail is modest and will enable rail to grow and take pressure off the roads - saving money, improving safety and benefiting the environment,"
It's modest! $100 for every man woman and child. So go on Cam Moore, start walking around your neighbourhood and ask for the money from every household, per person of course. See if THEY think $100 is modest. If you wont ask the customers, why not ask the people you REALLY want to force to pay for it?
and what is this "compared with other forms". You mean like airports which make a profit and pay dividends? You mean like telcos and power companies that do the same? You mean like the road network which generates enough revenue that it can reinvest in upgrading the network and throw 15% of its money at public transport (including YOUR network)?
How does it "save money", when your network costs more to maintain than the users are prepared to pay, but the road network generates more revenue than it costs to maintain? and safety and the environment? Well go on say how many lives it will save, and the environmental claims are dubious at best.
So good on you Ontrack, get the bucket out and go door to door to do fundraising, because the appropriate answer to the question "can taxpayers pay", should be rather obvious.
Great investment Dr Cullen, yep, economic genius.
Taxpayers don't want to pay more and get nothing either
The PSA, which backs the Labour Party and which consistently supports growth in government spending, growth in the number of bureaucrats and resists competition from the private sector with state provided services, has conducted a survey - which of course is not political, no, never - which according to Stuff says "60 per cent (of those surveyed) did not want tax cuts bigger than those in the May budget if that meant reduced public service spending or increased Government borrowing." So an implied reference to Labour policy, and National, ACT, Libertarianz, United Future and any other policy of higher tax cuts - but it's ok under the Electoral Finance Act isn't it? Of course - because it benefits Labour.
The problem with the survey is obvious in three ways.
First it implies that the government is optimally efficient, that there is no scope at all to cut spending significantly without cutting the "services" people love, which basically means health, education and law and order (how many really give a damn about welfare benefits, or the good part of the bureaucracy dedicated to giving advice or dishing out small subsidies here and there, unless you benefit from it). This of course is nonsense. The government does a fair bit that if cut wouldn't hurt the services people love, just look at the names of so many government agencies to see that we wouldn't miss the Families Commission, Te Mangai Paho, NZ On Air, the Human Rights Commission, Office of the Childrens' Commissioner. All small fry mainly, but they do add up. Beyond that, who can pretend the big government agencies of education and health are all well focused on delivering optimal outcomes for consumers. They don't have the incentives to do so.
The second problem is that the counterfactual isn't placed either. Do people support paying more in tax, over and above inflation, to see no discernible improvement in services? You see I pointed out a month or so ago that had Labour simply increased spending to reflect inflation, the government would be spending NZ$12 billion LESS this year than it currently is. However it has spent far more, and have you noticed it? Maybe you have, maybe your school has had a new building - but would that have happened anyway? What it is hard to say is that increasing spending by double the rate of inflation has generated improvements of the same order. You see you ARE paying more in tax in real terms than you were in 1999, has it been worth it? Would you spend more and get the same improvement in quality? No the PSA wont confront that.
Thirdly and more importantly, the PSA wont ask whether you'd rather have the option of getting some of your taxes back to buy your own health care and education for your family. You see the idea you could opt out of the monopolies it makes you fund is an anathema. I wonder why they are so scared of competition, so scared of consumers putting their money where they want it?
Maybe because the PSA is interested first and foremost in protecting the jobs and wages of its members - if it means taxpayers paying more, their members working less, and being less accountable, they will support it - and that is what's fundamentally wrong with statism. No accountability to individuals for failing to deliver what is promised and what they have been forced to pay for, just moans that "well if you paid more tax then....".
It's quite simply fraud.
The problem with the survey is obvious in three ways.
First it implies that the government is optimally efficient, that there is no scope at all to cut spending significantly without cutting the "services" people love, which basically means health, education and law and order (how many really give a damn about welfare benefits, or the good part of the bureaucracy dedicated to giving advice or dishing out small subsidies here and there, unless you benefit from it). This of course is nonsense. The government does a fair bit that if cut wouldn't hurt the services people love, just look at the names of so many government agencies to see that we wouldn't miss the Families Commission, Te Mangai Paho, NZ On Air, the Human Rights Commission, Office of the Childrens' Commissioner. All small fry mainly, but they do add up. Beyond that, who can pretend the big government agencies of education and health are all well focused on delivering optimal outcomes for consumers. They don't have the incentives to do so.
The second problem is that the counterfactual isn't placed either. Do people support paying more in tax, over and above inflation, to see no discernible improvement in services? You see I pointed out a month or so ago that had Labour simply increased spending to reflect inflation, the government would be spending NZ$12 billion LESS this year than it currently is. However it has spent far more, and have you noticed it? Maybe you have, maybe your school has had a new building - but would that have happened anyway? What it is hard to say is that increasing spending by double the rate of inflation has generated improvements of the same order. You see you ARE paying more in tax in real terms than you were in 1999, has it been worth it? Would you spend more and get the same improvement in quality? No the PSA wont confront that.
Thirdly and more importantly, the PSA wont ask whether you'd rather have the option of getting some of your taxes back to buy your own health care and education for your family. You see the idea you could opt out of the monopolies it makes you fund is an anathema. I wonder why they are so scared of competition, so scared of consumers putting their money where they want it?
Maybe because the PSA is interested first and foremost in protecting the jobs and wages of its members - if it means taxpayers paying more, their members working less, and being less accountable, they will support it - and that is what's fundamentally wrong with statism. No accountability to individuals for failing to deliver what is promised and what they have been forced to pay for, just moans that "well if you paid more tax then....".
It's quite simply fraud.
24 June 2008
EU's Common Agricultural Policy exposed
I was recently linked to by "CAP Health Check" a blog that seeks to present as much information as it can about the European Union's dastardly Common Agricultural Policy (you know the policy of food sovereignty and food security that Sue Kedgley effectively has been endorsing). It seeks greater accountability and transparency about expenditure on EU farm subsidies. As someone paying for these (as well as a national from a country suffering from them), I'm rather keen to see it.
A sister site is Farmsubsidy which has some fascinating data, including google mapping the address where farm subsidies are received (so far only Sweden is complete). Go here, focus on Stockholm to see how many farm owners seem to be based in the downtown Stockholm - clearly struggling village producers. A similar map of the UK would have to include Clarence House London, as the Prince of Wales receives taxpayer subsidies for his farms. Nice. It shows the pony clubs in Denmark that receive over 255m Euro in subsidies. Ireland is the biggest per capita net recipient of farm subsidies, Luxembourg the biggest net per capita loser. However per farm the biggest recipient is Denmark, the lowest Malta (average UK farm gets more than the average French farm, because the latter are small and inefficient).
The UK gets 4.3 billion yes billion Euro in agricultural subsidies, but contributes 5.6 billion to the EU to fund agricultural subsidies, so is a net loser. What this means is that the average British taxpayer is paying 22 euros a year to subsidise farms outside the UK. The average UK farm gets around 12,000 euros a year, not bad really. 49% of the UK subsidies go to the top 10% of farms. 295 recipients get an average of over £500,000 a year in subsidies!! The biggest bludger last year was J & T F McFarlane getting around £552 000 (appears to be a Scottish beef farm).
Nice piece of work collecting data, and listing all those who make a living partly out of the theft of taxes from the rest of us through Brussels.
A sister site is Farmsubsidy which has some fascinating data, including google mapping the address where farm subsidies are received (so far only Sweden is complete). Go here, focus on Stockholm to see how many farm owners seem to be based in the downtown Stockholm - clearly struggling village producers. A similar map of the UK would have to include Clarence House London, as the Prince of Wales receives taxpayer subsidies for his farms. Nice. It shows the pony clubs in Denmark that receive over 255m Euro in subsidies. Ireland is the biggest per capita net recipient of farm subsidies, Luxembourg the biggest net per capita loser. However per farm the biggest recipient is Denmark, the lowest Malta (average UK farm gets more than the average French farm, because the latter are small and inefficient).
The UK gets 4.3 billion yes billion Euro in agricultural subsidies, but contributes 5.6 billion to the EU to fund agricultural subsidies, so is a net loser. What this means is that the average British taxpayer is paying 22 euros a year to subsidise farms outside the UK. The average UK farm gets around 12,000 euros a year, not bad really. 49% of the UK subsidies go to the top 10% of farms. 295 recipients get an average of over £500,000 a year in subsidies!! The biggest bludger last year was J & T F McFarlane getting around £552 000 (appears to be a Scottish beef farm).
Nice piece of work collecting data, and listing all those who make a living partly out of the theft of taxes from the rest of us through Brussels.
Survey on political blogging
Other blogs have linked to it, so pardon me if you've seen it before.
University of Auckland MA (Pols) student Andrew Cushen is conducting an online survey about political blogging, with the survey here for those who wish to complete it. It is professional and I wish Andrew the best as the results could be very interesting. Particularly as it is election year it would be interesting to see the footprint of those reading political blogs.
So go on, help a student do something new and interesting.
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