Why fear privatisation?

What has National become?

A party with the testicular fortitude of a eunuch doormouse that is terrified of even engaging in the debate on this issue (among many many others).

The snivelling, quivering backdown essentially begging:
- Oh believe us, we're no different from Labour on this;
- Don't believe the guy who we want to be next Finance Minister, he has ideas, but he "doesn't choose his words wisely", just to give you confidence in how we want him to spend a good deal of your money in the next three years;
- Please don't discuss this anymore, it's a bit like discussing sex in front of our parents, it embarrasses us to be reminded that we once had a different policy;
- After all that you'll still vote for us right? Labour is worse remember.

It’s very simple, there are solid strong arguments for privatisation. Arguments that have held sway with governments throughout the world, of both sides of the political mainstream.

There have been very successful privatisations in New Zealand that have gone without a peep. The following were easily successes:
- Auckland International Airport;
- BNZ (after a disastrous bailout following the 1990 election);
- Contact Energy;
- NZ Steel;
- Postbank (despite the wasteful emergence of Kiwibank);
- Rural Bank;
- State Insurance (yes the name remains but it hasn’t been “State” for a while);
- Works Infrastructure (yes the old Ministry of Works);
- Wellington International Airport.

Who would argue any of these haven’t worked, that these haven’t become successes, with new investment and better run outside the state? Well the Greens and various socialist retards of course, but otherwise no. Privatisation has worked in many cases, with little evidence to the contrary.

The ones most subject to criticism are largely criticised on flawed grounds (Air NZ, NZ Rail, Telecom).

Take Air NZ. After privatisation it was hamstrung by two actions, both of governments. It saw expansion as necessary in an increasingly competitive market, and wanted to enter the high cost Australian domestic market, but the Australian government prevented it, so it bought 50% of Ansett, with many government terms and conditions stopping it from making serious efficiency improvements to that airlines. Its second and most fatal problem was that the NZ government effectively vetoed by delay the investment of capital by a willing investor – Singapore Airlines – which had it been allowed, would have avoided the government bailout.

The current Labour government let Air New Zealand fail so it could nationalise it and do a deal to part privatise it again with Qantas – which also failed.

Telecom was privatised at a time when technology in telecommunications was starting to move a lot faster than it had in the previous couple of decades. The market was opened up to competition and Telecom simply required on privatisation to allow interconnection with competitors’ networks.

Privatising Telecom brought in enormous new capital, significant efficiencies, technological innovation and responsiveness to competition. For example, $5 unlimited national weekend phone calls were a Telecom innovation which broke the back of years of complicated expensive tariffs for long distance toll calls. Whilst arguments may be made about the levels of investment, there is little doubt that Telecom was sold for a price well above expectations and needed serious capital. In addition it provided an opportunity for thousands of New Zealanders to own shares in a fairly stable growing sector.

Then there is TranzRail. A great myth around that privatisation is that it was pillaged and stripped, and great profits were carved out of it with nothing left behind. This myth is peddled by the rail religious, when the truth is quite different. There was substantial investment in wagons, including on passenger services during most of the 1990s, and a big drive for efficiency, customer service and logistics. In other words meeting the needs of freight customers not politicians. Now some of the customers had a few issues when Tranz Rail wanted it to invest in wagons, and some lines had come to the end of their useful lives (worth running into the ground, but not worth replacing the wornout lines), but that was it. The anti-privatisation story doesn’t really bear close examination.

But what do the public think? Do they believe Air New Zealand failed because it was privately owned? If so, how do they account for so many privately owned airlines in the world, or do they not think any further?

Do they believe Telecom has failed as a private company? They honestly think broadband would be cheaper and faster if government provided? Well clearly the government and Nats thinks so.

And railways? Do they really think railway lines that they have barely ever seen a train on it would be any better under government ownership? Do they really think railways will do anything more than they have done for years – move containers and bulk freight long distances, besides commuter services in Wellington?

So why is National afraid? Is the fear of privatisation about foreigners? The brainless xenophobia of Winston Peters and the Greens? Is it about capitalism, businesses run as businesses, efficiently and to attract customers, being bad? Is it nostalgia that somehow some businesses that are no longer viable should be propped up?

What has gone so wrong with privatisation that politicians, except those in ACT and Libertarianz, wont engage on it?

Grrr

what the hell have I done with the template?

Why not sell Kiwibank?

National opposed it being set up.

It wasn't even Labour policy it was Alliance policy (when Jim Ol' Son led the Alliance).

So what's changed? It has 550,000 customers? Great, it is worth selling. It isn't core business to postal services.

Why should the government own a bank? There are other NZ privately owned banks and building societies, so hardly any xenophobic excuse (of the sort the Greens pander to).

So why are the Nats obfuscating? Why not simply say, yes we will consider selling Kiwibank if we get a very good offer - we'd be stupid if we turned one down.

No, they look like what so many voters think they are - lying, deceptive, covering up, pretending black is white, and now having to backtrack, gutless and without any principle. Terrified that if there was a policy to actually take things back to where they were in 1999, that the public would say nooooooo. Terrified they couldn't say for certain what would happen to a privatised Kiwibank, when Jim Anderton embarks on a xenophobic scaremongering campaign that big foreign banks will rip off timid little kiwi battlers. Because of course, nothing is certain in an open market, other than poor performance creates opportunities.

So National has the worst of both worlds, a policy that is gutless and wrong, the taint of lies and deception, and the patent inability to argue for the right policy, even though it was what National had as policy in 1999.

So what party makes politics seem unprincipled?

Mobile phones on planes nooooooooo

Yes the beginning of the end of peace.

Emirates is quietly allowing this invasion of tranquility according to ABTN.

Its new Boeing 777-300ER aircraft are equipped to handle text messaging and phone calls, but the Airbus A340s and A330s are being equipped as well. So now you know what airline to choose/avoid for the long haul if you don't want Mr, Mrs or Miss Twat next to you with their inept "beep beep... one second pause.... beep beep" texting notification, or babbling on about "yes I'm on the plane" nonsense.

Emirates Vice President Patrick Brannelly has said that "One worry was passengers would keep other passengers awake during the night, but ... this has not happened." Of course in scum class you'd already be awake with the extra narrow seats on the 777 as it squeezes in 10 abreast when Air NZ, Singapore Airlines and BA all fit nine.

So, do you want to make mobile phone calls? Should it only be allowed in a specific compartment on the plane? Or should people just accept that the world doesn't come to a stop just because they are in the air?

National's blueprint for a teensy bit of change

OK, now I have come to this with no prejudice, I simply want to judge John Key on what he said, so here we go, and you know my expectations are low, but I’ll judge him on whether he:

a) At least re-implements National policies of the 1990s; and

b) Makes a positive step forward to reduce the role of the state where need be, and

c) Is consistent with National’s stated principles.

As he has 10 points, let’s give each one a maximum of 5. 5 means I couldn’t agree more, 4 is fairly impressive, 3 is right direction but nothing bold, 2 is one small step from Labour, 1 is barely better than Labour. 0 is no better and minus marks mean steps backwards.

1. There will be an ongoing programme of tax cuts. OK well good, though the first will be Labour’s and there are no details. I’ll be generous and say 3.
2. National will be disciplined about government spending. Again, sounds good, though as vague as can be. Appreciating the problem is at least something, so I’ll be super generous and say 3 again, though methinks the later points will betray this.
3. National will stop the growth in the public sector. Hmmm it talks of reprioritisation, so at best it is barely better than Labour. No reversal of past growth means a 1.
4. National will launch a full-frontal attack on gangs and the "P" trade they support. Um ok, it also includes “Fresh Start” programmes which could be positive. However, I also know this means giving the Police the sort of surveillance powers that are somewhat frightening, and it is about fighting the “war on drugs” which has failed everywhere else in the world. There would be a point for the attitude to youth crime, but one taken away for the attitude to surveillance. I feel generous giving them 0.
5. Within the first 100 days of our first term, National will introduce to Parliament a bill to reform the Resource Management Act. Well yes, but it is all about making it easier for the state to build things, and very little about you. Yes I fully expect it will make a modest difference, but anything that enables the state to run roughshod over private property rights wont get my support. Again I’m being generous giving it a 1.
6. National will tap into our communities and our private enterprises to rebuild the ladder of opportunity for every single New Zealander. Get past the waffle it means allowing the private sector to provide services funded by the state, like prisons, maybe even healthcare and education. If I’m optimistic about it, it could be a step forward so gets a 3. If, of course, it means contracting the private sector on a regular basis. It might finally convince the public that the private sector can do health and education rather well.
7. We will set national standards in literacy and numeracy for all primary school pupil Well ok, but nothing new to see here either. Hardly more accountability for schools, no more choice for parents. What happens if schools and teacher don’t perform? Again a generous 1.
8. As we cut taxes and grow average after-tax wages, we will progressively increase the amount of super paid to senior citizens. So MORE state dependency, more of a PAYE taxpayer funded burden that is unsustainable. Great. A big leap backwards. Let’s be generous again and say it is only a minus 4. Policy on superannuation since the late 1980s has been about “how can we encourage retirement savings” now the Nats have said “how can we spend more of current taxes on the elderly”.
9. we will repeal the Electoral Finance Act. And once it's gone from the statute books we will reach out to all the parties in our Parliament to reach a genuine consensus about proper, workable, legislation that can replace it. You know if it was just the first sentence it would be a 5. However, National wants to reach “consensus” in a Parliament full of parties that peddle envy, statism and control. It also wants to ignore parties outside Parliament. I’m generous again in saying it loses only 2 points from the 5 for that, so it’s 3.
10. a binding referendum on MMP by no later than 2011 You know, frankly I couldn’t care less. If it means this National Party being able to govern alone it means nothing to me. 1 point for being willing to have the debate.

So 12 out of a maximum of 50. Hmmm, not much really is it? So what should National’s blueprint for change be?