16 January 2009

3rd runway at Heathrow and watch the luddites crow


The announcement by UK Transport Secretary (Minister) Geoff Hoon that the government supports a third runway at London’s Heathrow Airport is bizarre on a couple of levels. Firstly, it is quite bizarre that government should have anything to do with it. Heathrow is privately owned, its owner – BAA – is not seeking taxpayer funds to pay for the runway. If property rights are properly defined it should be a matter of negotiation between BAA and relevant property owners. However, that is by the by – and a symptom of a bigger problem, that the UK is strangled by process and consultation over matters that shouldn’t be the business of those who are not directly affected.

It is luddite Britain on a grand scale, a culture that worships stagnation, that rides on the religious fervour of the eco-evangelists, and is an orgiastic frenzy of “do as we say” crowd, eager to impose their planning fetish on everyone else. It’s frightening, and shows how hard it is to make real progress in the UK, when half the country is obsessed with standing still and telling others what to do.

The logic to a third runway at Heathrow is straightforward. It makes commercial sense, because Heathrow has virtually no spare runway capacity, is the only major hub airport in the UK, has the highest number of international passengers of any airport in the world, and is by far the most preferred airport for business traffic. In short, it is a profitable, highly desirable operation with scope for significant growth. If you've spent half an hour in the air circling in a stack waiting to land at Heathrow (great for the environment that), or on the ground in a take off queue, you might appreciate how constrained Heathrow is, especially since Terminal 5 has relieved the overcrowding at Terminals 1 and 4, and is (finally) a world class airport terminal experience.

Many countries and cities would love to have an infrastructure asset so sought after, profitable and capable of growth as Heathrow. However, no. In the UK, such opportunities are to be stamped on by various crowds. One group I can understand, the NIMBYs who are affected because they live nearby or in the flightpath. They are likely to experience more noise due to more flights, although with a landing and a takeoff on average every 2 minutes from 7am to 11pm, you wonder how they would notice (especially as airliner engine noise has dropped significantly in the last 20 years)/

The rest have jumped on an environmental bandwagon. The idea that if Heathrow gets a third runway it will accelerate climate change, rather than mean transit traffic shifts to airports at Paris, Amsterdam, Frankfurt and Dubai (which of course makes no difference to the environment). All those airports have between three and five runways and plenty of capacity, but apparently it’s ok if continental Europeans or Arabs have airports that can grow, the British want to deny it to themselves. It’s madness, and if Heathrow is constrained it constrains jobs for the airport, but also the three airlines that hub there – BA, BMI and Virgin Atlantic.

Moreso, those opposing it make petty fascist comments like “people should catch trains anyway”, ignoring that less than 5% of trips from Heathrow are those travelling within the UK or to locations in Europe quickly accessible by train. With New York by far the most popular international destination from Heathrow, it is a bit far fetched to imagine how those travellers should go by rail. Oh and Dublin is second, but the luddites probably think a train and a ferry ride is justified.

You see the other line they take is that so many flights aren’t “necessary”, because, of course, they know best for others. How dare people be tourists or business people travelling when they see advantage in doing so, when the armchair planners have decided that there should be no more flying.

One suggestion is that flights should be “redistributed” to Birmingham, Leeds and Manchester, presumably because if you can’t change mode, you should change destination. If you live in London and want to fly to New York, why not get a train to Leeds first.

The same people who make these suggestions no doubt come from a range of walks of life. There are the idle rich like Zac Goldsmith, who couldn’t care less if rationing air travel puts up prices so those poorer than he can take holidays less frequently. There are the retired planners and bureaucrats who miss the days of large government bureaucracies planning everything. All in all busybodies who think they know best how to spend other people’s money, use their businesses and how they should move about.

They treat aviation as some sort of bringer of doom and destruction. The same doom merchants who killed success for Concorde by getting the US Federal Government to ban supersonic overflight of the USA, which India followed. If these people were alive a century ago, you can expect them warning that aviation should be banned because planes will occasionally crash on the ground, risking lives.

If the 3rd runway is stopped (and assuming Boris Johnson’s idea of a super airport island built in the Thames Estuary is not commercially viable), then it will increase the reputation of the UK as a community of stagnation worshipping school prefects, that don’t like change, that worship the latest altar of “don’t build anything because it wont be the same when it’s done” and see the jobs, businesses and investment of others as something they have to have some sort of quasi-fascist interest in. Hopefully the Conservative Party opposition is just grandstanding to get elected, as I am sure the public service will see them right, because not growing Heathrow means not growing BA, Virgin Atlantic or BMI, and it increases the costs for freight and passengers not only into London but all of the UK. No other UK airport (besides the small London City), has a smidgeon of the high value premium traffic that Heathrow does – only a coalition of the envirovangelists, luddite left and rich idiots who have no interest in economic growth can halt this.

So next time you see a Tory or Conservative MP, or indeed any self-proclaimed environmentalist at Heathrow catching a flight, you might care to ask them about their hypocrisy, or why they aren’t catching a train to fly out of Amsterdam or Paris instead!

An unpopular view of Bush

As President Bush passes his final days before his term ends, the sighs of relief from all too many are heard, and the flippant throwing of the "worst President ever" title is tossed about.

You see it's all too cool and de riguer to slam Bush as a bad President. Who do you know who thinks otherwise? After all, he's an evangelical Christian, the aftermath of the war against the Saddam Hussein regime was a disaster, Hurricane Katrina was mishandled, the US started using torture against terrorism suspects and the economy is in freefall.

There is an alternative view, one I don't entirely support. It says history will be kinder to Bush given:
- No terrorist attacks on US soil since 9/11;
- The overthrow of the Taliban regime helped liberate Afghanistan from one of the worst theocratic tyrannies in modern history;
- Saddam Hussein was a brutal warmongering genocidal dictator whose removal has given the chance for Iraq to develop as a peaceful, moderate ally of the Western world;
- The recipe for the current economic recession was baked well before Bush.

Andrew Roberts helps dismiss a wide range of Bush myths in today's Daily Telegraph.

While I don't excuse waterboarding, the failure to control the growth in government, the absurd lack of planning after overthrowing Saddam and the willingness of the Federal government to engage on grand scale surveillance of communications in the US, the truth is not as simple as the leftwing Bush bashers make it out to be.

Almost none of them point a finger at Bill Clinton for his years of appeasement of Iraq, the vaccilation between limp wristed passivity and bumbling airstrikes in the Balkans, the disaster that was intervention in Somalia, the laughable appeasement of North Korea that saw it develop nuclear weapons while being paid to not do so, the neglect of Iran, the failure to respond to Islamist terrorist attacks on several sites, the neglect of Russia as it bumbled from near bankruptcy as a free friendly power to a next generation wealthy corrupt authoritarian bully.

Even moreso, what would the world have been like had Al Gore won in 2000? Would the recession not be happening? Would we be happy that Saddam Hussein continued to sabre rattle and defy international sanctions? Would Islamists feel they had a soft touch as President? Would the Taliban still control Kabul? or would it not matter because a lot more people would have hybrid cars?


15 January 2009

Greenpeace uses property rights to protest

Luddites they may be, and driven by an irrational desire to strangle British airports (which will simply transfer business to continental European ones), but Greenpeace is at least taking a rational approach to protesting the plans to build a third runway at London's Heathrow airport - buying up some of the land needed.

Emma Thompson, Alistair McGowan and Tory nitwit brat Zac Goldsmith have all put up money to buy a field north of Heathrow, which BAA wants as part of its proposed third runway, according to the Daily Telegraph. The intent, of course, is to stop BAA being able to buy all the relevant land, and frankly - from a libertarian point of view - they should be perfectly entitled to do so.

You see ultimately they can make a rational choice. BAA can offer a price which is as much as it is willing to do so to buy the land, and if Greenpeace can take the money (which could fund countless other campaigns) or sit on the land and let BAA try something different.

Of course BAA can ultimately undertake compulsory purchase because it is legally allowed to, and like most businesses today, will use the law to the extent it can to make money. Greenpeace of course doesn't give a damn about property rights, it happily supports those breaking and entering private property to engage in protests - like a recent bunch of fools at Stansted Airport.

So all in all, it's not something significant - an organisation that has scant regard for private property rights is using it to delay a rational commercial project by a private company. I've always said that if BAA can finance a third runway at Heathrow commercially, and buy the land to build it, it shouldn't be prevented from doing so. There may be issues around noise, but unless flights comprise a nuisance over and above that accepted by property owners on flightpaths, it shouldn't be an issue. Yes, I have lived under the flightpath myself.

Of course, if someone can put forward a private business case for a new airport for London at Thames, like Boris Johnson supports, let them do so. However, I wont be holding my breath, sadly.

One big council - one big bureaucracy

Governance in Auckland has been seen as a problem by many, mostly councils and central government, for some time. Mainly by those who think councils should be doing certain things, rather than considering whether such things should be done at all, and if so, by whom. I've not seen a major problem. Transport is often cited as an issue, but in the last few years umpteen major motorway improvements have progressed in Auckland (I can think of eight) and the major hold up has been the ridiculously expensive boondoggle called rail. Just because neither users nor ratepayers are willing to pay for this, doesn't mean there is a problem in governance - it is a problem with the idea.

So the report in the NZ Herald today of what the Royal Commission on Auckland Governance will recommend should send shivers up the spines of Auckland ratepayers - and by that I mean ratepayers of any one of the seven Auckland territorial local authorities. One big council, without restricting what it should do, will be a behemoth of a bureaucracy looking for a job. On top of that a Mayor, with powers to dictate, should also scare Aucklanders - as such Mayors will look for totem poles to build, at the expense of everyone else.

A libertarian view of local government would be that it is hardly needed at all. After all, as long as private property rights are well defined (which at present they are not), then planning becomes simply the delineation between those rights (which could include airspace, sight lines and factors for air and noise). Most of what else local government does is to meddle in utilities or supply facilities that could be provided privately, assuming that local government didn't pilfer money from everyone to pay for them.

So what is really needed in Auckland is not the creation of a mega council, but a serious debate about what the role of local government should be.

Labour, with the Alliance (before it divorced Jim Anderton) and the Greens changed this radically with the Local Government Act 2002, by repealing rather unwieldy legislation that defined what local government was allowed to do, and granting a "power of general competence" (yes the joke from that phrase is too obvious). This effectively gave councils the power to build, buy, sell or engage in any activity that a natural person could do. Councils could set up schools, restaurants, trucking firms, radio stations, dry cleaners, banks or service stations, as long as they went through due processes of consultation. This was a view that local government could effectively be a mini-version of central government, although Labour resisted granting local authorities new taxation or regulatory powers.

National and ACT voted against this legislation, quite rightly so. It is time to take a different approach.

Look at what councils do that could simply be privatised, whether by sale or by transferring to trusts run by interested people. All commercial activities could clearly be sold, or shares transferred to ratepayers. Non commercial activities, like recreational centres, pools, libraries and parks could be transferred to interested parties to run, accept sponsorship, donations or charge for usage. The regulatory activities of councils could then be reviewed on a case by case basis, to consider how private property rights could be used to address the relevant issues.

In short, there is a grand opportunity to rethink local government, so that it shrinks considerably in the next three years. The more difficult examples, like local streets and footpaths may be last on the list, but in the meantime rates should be capped - permanently at current nominal levels, to force councils to trim, and if need be, merge. In other words, the scope for local government to be perpetual busybodies would decline over time, freeing up ratepayers funds, land and the public to decide whether what is done "for the public good" is actually what they are prepared to pay for. Commercial property owners in areas for "regeneration" may foot the bill for upgrading the street scape, instead of expecting all ratepayers to chip in.

The grand council idea is a recipe for local government to do more, much much more. I believe Owen McShane once wrote that the ideal size of a council was one that served between 10,000 and 40,000 people - not so small that it couldn't have enough capacity to carry out its functions, but not so big that it could charge ratepayers enough surplus to dabble in new areas of activity.

The appropriate response of the new government to this forthcoming report is thanks, but no thanks - there needs to be a more fundamental review of the role of local government. Local government has resisted year in year out the drive for lower taxes, and rode on the back of property price increases to increase rates beyond inflation. It is time to say no to a big Auckland council, and consider instead something else as a first step. Why does Auckland need two layers of local government?

Oh and if you think I'm wrong, note this part of the report "the commission will almost certainly recommend the mayor and new council become more involved in the social needs of the region, such as affordable housing".

Get it? You vote out a leftwing central government and you can watch one get elected locally - and you know who will be forced to pay for it.

I can only hope the Minister for Local Government can see this for what it is - a report commissioned by the last government which should be destined as a door stop.

13 January 2009

10 wishes for the UK

1. The national obsession with climate change ends with robust debate that decimates the evangelism of the ecofascists.

2. Channel 4 is sold, and the BBC told the TV licence fee will be abolished from a certain date - after which it will need to ask viewers to pay by their own volition.

3. Chavs wake up one morning, take a look in the mirror and either find a conscience or find god or whatsoever, and change into civilised human beings, instead of obnoxious parasitical breeding entities who are oxygen thieves.

4. The general public starts realising that the answer to what they want is to do something themselves, not rely on the "guvmint". The Tories actively encourage pulling the state back from providing support to people who should be providing for themselves.

5. The Scots get totally fed up with the rather stupid Alex Salmond and realise that the UK is better for them than independence.

6. Heathrow's 3rd runway is approved, along with a 2nd runway at Stansted, and the great British knocking machine starts realising that with Terminal 5, Heathrow no longer has any really overcrowded terminals.

7. One of the two major parties talks about reducing tax for those on the 40% top income tax rate - which cuts in at only £34,800. (No kiwis, don't just convert that to NZ$, multiply your living expenses by around half the difference as well).

8. Someone in the media celebrates how the fall in property prices is making housing more affordable, and stops being sycophantic to the millions who invested in the "property ladder" insted of productive investment. Cheer what's cheap and a lot is in the UK.

9. The London Olympics are cancelled because of money, the savings given to taxpayers directly in a one off dividend. Let the profligate IOC find a replacement, if it dares.

10. May Brits stay at home, en masse this year, it will make travelling in Europe so much more pleasant.