Wellington City Council to cut spending

According to the Dominion Post

"The rocky economic climate has forced Wellington City Council to review its performance and cut spending by more than $50 million.

The move is to ensure that future rates increases do not exceed inflation and cause undue hardship to cash-strapped ratepayers"

Which of course is the least it should do, which begs the question why ACT's policy of restricting rates increases to inflation plus population isn't National policy, when Wellington's Mayor - a long standing National Party member - can implement it?

Of course Libertarianz would go a lot further. I'd start by prohibiting rates increases, at all, ever. So councils could shrink, and shrink. Imagine not having local government, I find it hard to imagine what you need it for, once property rights are fully applied, and services are privatised.

Clark and Key stick beaks into private company

Yes it's Contact Energy. It is increasing its directors' fees. It is nobody else's business, it is a private company in a competitive market. If you don't like it, sell the shares or don't buy its electricity.

Clark, the interfering harpie that she is said "This is absolutely extraordinary when the ordinary consumer is extorted over power bills".

How Helen?

Who forces anyone to buy Contact Energy's products?

If you think the ordinary consumer is extorted over power bills, does that include the three power companies your government owns and extracts dividends from?

How about this rudeness? To get paid NZ$250,000 as directors is "many more times than people earn in a hard-working job". Really? Well I earn more than that Helen (albeit in the UK) and I'm hard working, in fact people on high incomes more often than not are.

John Key was more mild mannered but still said "All New Zealanders are being asked to tighten their belts because of economic conditions and I would have thought the directors of Contact would have taken that on board, especially given the price increases that are flowing through to consumers".

No John. All New Zealanders are NOT being asked to tighten their belts. Who is asking them? The Great Leader isn't.

The right response is simple: "Contact Energy is a privately owned company, it can choose how it remunerates directors, managers and staff, and what it charges consumers. Shareholders who disagree can vote at the AGM or sell. Customers who disagree can choose a different power company. It is not for the government to hold a view of what private companies legally do in a competitive open market, especially one when the government owns that company's biggest competitors!"

Only Libertarianz seems to think so.

Smith foolish, but Williamson made sense

Well Lockwood Smith's demotion is hardly surprising. He is one of the most slippery MPs they have, and when he had the chance he didn't confront the teachers' unions as Minister of Education. The man is gutless, and his stupid remarks were always going to be interpreted as him being racist. The left has always harboured a belief that those not on its side are racist, sexist and the rest, but then enough of us know about Smith's gutlessness. Tariana Turia called him racist, which of course is the pot and kettle really.

Williamson on the other hand was expressing nothing shocking at all. Sydney, Melbourne and Brisbane all have toll roads, Auckland is about to get one thanks to Labour. Labour has done more for tolling than National ever did, but John Key is gutless. He hasn't the courage to stand by his caucus or attack Labour on policy substance. Maurice of course could have avoided talking about how much tolls would be, he would have been better talking about Labour's new regional fuel tax. However, we don't really know if National would abolish it.

Are there any tax rises National would reverse?

Labour's hypocrisy on tolls continues

I like tolls, pricing the roads is user pays after all, and if the roads were properly priced then the ones people want would be properly funded, and the ones too many people wanted would be at a premium, and not gridlocked (and the scope would be there to build more capacity, or for public transport to emerge as competition).

National and Labour both like tolls too, though you wouldn't think so reading Labour's press releases and leftwing blogs which pretend tolls are something Labour know nothing about.

Following National’s pork for Waikato roads announcement, Labour is saying that it thinks National will do it by Public Private Partnerships with tolls, although National said nothing of the sort. (Frankly I’d happily tell the private sector if it wants to build some motorways, paying for it itself and charging tolls, go right ahead without any taxpayer money).

Labour is saying it doesn’t like Public Private Partnerships, despite introducing and passing legislation to allow them six years ago! On top of that Labour announced it would investigate using PPPs to finance the Waterview extension of State Highway 20! It then welcomed a report recommending this approach! In August 2008 Ms King said:

"It seems that Waterview, New Zealand’s largest ever roading project, could well be the first PPP, but the generic blueprint provided by the steering group report could, of course, lead to other examples in the future, such as a new Auckland harbour crossing or Transmission Gully in Wellington"

On top of that, Annette King says National isn’t to be trusted to not toll the remaining sections of the Waikato Expressway. This is hilarious, given that the former Transit New Zealand investigated where across the country tolling COULD be introduced, and one section of the Waikato Expressway came up as being a possibility. Labour has never ruled out tolling parts of the Waikato Expressway.

Indeed it approved tolling the next extension of Auckland's Northern Motorway, and the Transit former website identifies four more roads for tolling.

Then she creates conspiracies “Ms King said she believed the National Party's secret agenda "is to change the law so a free alternative route isn't required when a toll road is built". Why, Ms King, has Labour funded the first and second stages of the Auckland Road Pricing Evaluation Study, which is specifically about tolling existing roads in Auckland? Not that there is anything at all wrong with this, but Labour isn’t much different from National on this.

She then says “the National Party had opposed the potential increase in non-roading expenditure, like coastal shipping, and rail freight”. Maybe because National believes that taxes collected from road users ought to be spent on roads? What a radical concept! So unfair!

Labour is fighting against National because National talks about tolls – a policy Labour introduced, passed legislation to allow and approved for two toll roads(and surrendered one as the price to pay for NZ First support after the last election). Labour is criticising National because it talks about public private partnerships, a policy Labour introduced and passed legislation to allow.

Labour itself commissioned studies into introducing tolling on existing roads in Auckland. Paul Swain as Transport Minister, in 2003 said:

"Cordon tolls, zone tolling and congestion charging also offer significant potential as both a source of funds and a tool for traffic management."

Indeed, so why the desperate fuss to point the finger at National when you've been funding a project, using motoring taxes, to build a tolling system that will be scalable to more toll roads.

and what is a 10c/l regional fuel tax (12.5c if you include GST) if it isn't a sneaky toll, of around $5-$8 every time you fill your tank up.

Get your pork, Waikato

Oh dear, National disappoints again. It's decided, based on ignoring objective analysis, that it will direct the Waikato Expressway to be built.

Is it the best use of road users' funds? No. Why? Because there are lots of other projects which have a lower profile, do more good for the dollar. Don't know what they are? Of course not, you're no better than a politicians - why would THEY know?

Politicians the world over have played this game. The high profile big road like a totem they support, Peter Dunne has Transmission Gully. The Nats have the Waikato Expressway.

So given I know a bit about it, let's examine it. given National's bizarre policy! The Waikato Expressway HAS been getting built by Labour, albeit a little haphazardly.

Labour says it will build three more sections within 10 years, the sections worth building in fact:
- Rangiriri Bypass: A small section to link the existing section of expressway with a rather well built 3 lane section of highway. Basically means the highway is of a good standard all the way from Huntly to Auckland.
- Ngaruawahia Bypass: A very valuable shortening of the highway, bypassing the deadly slow section through Ngaruawahia.
- Cambridge Bypass: Another valuable bypass, avoiding heavy traffic through this small town and making for a far more direct route south of Hamilton.

Now it would make sense to consider accelerating those, but beyond that National would push these projects:
- Longswamp to Rangiriri: An expensive, very poor value project, unnecessary because accidents along here have been largely avoided by some smaller upgrades. Money could be better spent on saving lives elsewhere on Waikato roads, particularly SH2 and SH3.
- Huntly Bypass: A very expensive hilly bypass of Huntly. Basically to relieve the township of through traffic, but at what cost? Over $300 million? The congestion isn't that bad, at all. Again, that money could be spent on plenty of congestion relieving projects in Hamilton city itself.
- Hamilton Bypass: An even more expensive pie in the sky project. Hamilton has a rather half complete western bypass. Parts are being upgraded and more is to come. That's because much traffic entering Hamilton starts and finishes there. However what National wants to support is a big four lane motorway to the east of Hamilton, going nowhere near it. You'll notice there is a signposted eastern bypass already called SH1B, it is far from congested today. At best this project has a benefit/cost ratio of 1:1, meaning that, if all goes to plan, if it doesn't go over cost, it will generate enough savings to motorists to be worthy of the cost.

However what is telling about ALL of these is National isn't willing to use tolls to fund them. A Hamilton eastern bypass could never be built as a toll road given current traffic predictions because there isn't enough willing to pay to justify spending over $400 million on the road. The same for the planned mountain range climber Huntly bypass. If the likely users wont pay, why the hell should you?

National once passed legislation that prohibited the Transport Minister from ever influencing what road projects got funded, to avoid this sort of nonsense. National once supported taking the roads even further from political hands, and the highways being run as a commercial business - setting tolls, and enabling motorists and trucking companies to contract directly for road services, and getting fuel tax refunds in the process.

Now it's back to old Muldoonist style Think Big projects, showing it isn't thinking, it's buying votes with stinking pork. Don't be fooled, these big projects seem glamorous, but they take money from the roads fund that would otherwise go on hundreds of smaller projects, to fix dangerous bends, add useful passing lanes, strengthen bridges, and not a few better value larger projects - like the Maramarua bypass, Petone-Grenada link road and Schedewys Hill bypass north of Auckland.

However not enough people have heard of those, unlike the Waikato Expressway and I suspect Transmission Gully. On this, National is no better than Labour.