Electricity review might deliver useful answers

I tend to be sceptical of reviews, but the report in the NZ Herald of the government's announcement of a Ministerial review into the electricity sector is likely to look at how this state dominated generation and retail sector needs to be unshackled to allow competition to operate more freely.

Gerry Brownlee has indicated one issue is duplication of sector governance, which basically means too much bureaucracy. Energy security is important as Labour interfered considerably to try to guarantee supply (at high cost), and pricing given the government is the key market player is worth observing. The question being whether Labour milked the SOEs for dividends compared to investment in capacity.

The panel appointed includes some useful heavyweights. Brent Layton and Lewis Evans are excellent infrastructure sector economists who understand markets, Stephen Franks should add a reasonably sound legal perspective, and David Russell while on the left, becomes the consumer representative. Toby Stevenson knows the electricity sector intimately, and Miriam Dean is a competition lawyer.

Not a unionist, token ethnic representative or gender balance in sight, a review made up of intelligent, talented people.

However, will it be allowed to recommend privatisation of the sector? There is little sign that it will support the crazy Green agenda of recreating a single state owned monolith electricity generator.

So I am cautiously optimistic that it will unshackle the sector, and support more private sector investment (after all minority private investment wouldn't be full privatisation would it?).

More importantly, will a similar heavyweight team review the telecommunications sector?

Police let protestors smash RBS branch

Nice, so the Police forces in London have done relatively nothing to stop the graffiti, window smashing, raiding and robbery of a Royal Bank of Scotland Branch in the City of London.

The BBC is reporting that people are moving freely in and out of the Branch, and riot Police are not moving in yet - presumably because they don't have the number ready yet. I am seeing windows being smashed live on camera still, some 15 minutes after it started.

RBS is 70% state owned, but it is slightly chilling that the Police are unable to respond directly to such wanton vandalism and theft.

One of the protestors said it is because "our money goes into their pockets", which of course is the fault of Gordon Brown and the Labour Party who took it out of "their pockets" in the first place!

G20 - what good it could do

While the UK media fawns over the arrival of Barack Obama, and several thousand solutionless people who are statists or anarchists, the G20 summit COULD achieve good if only two things happened.

1. The G20 came out, unanimously, against trade protectionism, in favour of renewing the Doha round, and a new emphasis on lowering barriers to trade in primary products, manufactured goods and services. THIS could do more to encourage global recovery than any other government measure because, it basically, is about removing government measures.

2. The less free G20 members (China, Russia in particular) might notice that an economy in trouble can have public political protests largely kept under control.

However, this is unlikely. Far more likely are platitudes, a few moans from poorer countries that it isn't their fault (but showing how dependent they are on wealthy country demand), and a demonstration that everyone is in agreement that the recession should end.

On the other side, I've noticed in the protests some Soviet flags (because the USSR was known to accept public protests as a matter of course), and the hard left "Stop the War Coalition" is calling for US withdrawal from Iraq and Afghanistan, an end to aid for Israel and unilateral nuclear disarmament. In other words, surrender to Islamists and leave nuclear weapons in the hands of dictatorial governments. Charming lot.

Rob Muldoon's back

The NZ Herald says NZ$1.5 billion of your money - an "investment" - which will "bring New Zealand into the 21st century" - "enable it to compete with countries such as Korea, Singapore and Hong Kong". (Ah yes the 20th century is alive in well in NZ, and which Korea are we competing with again?)

Yes, National is going to grow the state by setting up a "Crown investment company" called "Crown Fibre Investment Co" (not that it is picking technology winners of course!) to build a network, and the users will come. I said before the election that this was shades of Muldoon's Think Big.

Look at the promises behind it:
- John Key says "They will be able to watch TV comfortably and easily over their computer screens, ". OHH TV over the computer screen, now THAT will create jobs right? I mean it's not as if there isn't digital Freeview subsidised by the state, and Sky's own commercially provided satellite platform right? You need TV via broadband to.... let you watch foreign TV subsidised??
- and "they will be able to run businesses from home". Amazing. Don't believe anyone running a business from home at the moment, they LIE, you can't do it without fibre to your home!

This is despite Telecom, Vodafone and Telstra Clear, the only real network providers in the country saying that their own plans will be adequate to meet demand - no doubt noting that when the government starts setting up a rival network, it devalues their own. In other words, the government is effectively shutting out significant new PRIVATELY funded network investment.

Ask yourself how you'd feel now as Telstra Clear, having spent hundreds of millions of dollars ten or so years ago rolling out hybrid fibre-coax cable to the kerb in Wellington and Christchurch, for the state to be now using taxpayers' money to roll out a superior network? (Well frankly Telstra Clear, having called for state expropriation of Telecom's property rights SHOULD now feel some chagrine).

Ernie Newman of the Telecommunications Users Association of New Zealand (not producers mind you, and not taxpayers either) is happy as can be, having long demanded the state subsidise and regulate for the benefit of his members. He was long a chief advocate of confiscating Telecom's property rights.

So why is this happening? Does the government truly believe that subsidising a particular technology so that consumers (far more than producers) can download Youtube, music, listen to internet radio and play high definition interactive games is good for the economy, or even moral?

After all, Stuff says "Ultra-fast broadband will let people watch high-definition or three-dimensional TV online, while talking on the phone via broadband or making video phone calls. Downloading movies will become much faster."

Is that worth subsidising? Faster movie downloads??

Anyway, why wont the private sector provide if people want it (and crucially are willing to pay)?

Well when you add up:
- Government denying Telecom and Vodafone private property rights over their telecommunications networks by forcing both to sell capacity on their networks to competitors at a price set by government;
- Government likely to regard any collusion between telcos for a new fibre network to be "anti-competitive";
- The RMA allowing local authorities to prohibit new overhead wire telecommunications networks in their districts, even if there are already such networks at present.

Then you might figure out that this Muldoonist approach to telecommunications is the wrong approach, and that subsidising the entertainment of New Zealanders who want cheap fast broadband is quite simply wrong.

David Farrar is typically abandoning his usual rather liberal smaller state approach to affairs and swinging in behind Muldoonist central planning of internet infrastructure. He will enjoy fibre to the kerb, and thinks my parents and their elderly friends should be forced to pay for it.

It is Think Big for the 21st century, it is cheaper, and less ambitious, but is driven by the same cargo cult belief that it will be some sort of economic saviour.

At best, it might prove to be financially self sustaining at some point, and get enough use to not be a total disaster, but at worst it will prove to be far more expensive than predicted, will not be completed according to plan, supplant other technologies, and wont deliver cheap broadband because... quite simply, it can't make international internet backbone capacity cheaper.

UPDATE: Paul Walker at Antidismal quotes an interesting example of how private sector underinvestment occurs when it fears the risk of nationalisation.

Strange radio signals from space

While most were sceptical this morning of the reports from Mongolia of irregular radio signals from space, the confirmation of these reports from independent sources in Europe, Africa, the United States and Australia is exciting scientists at several universities.

Professor Ahmed Tanfik Rachdi of the University of Algiers was reported as reading the signal from the University's own listening station that signals on frequencies of 6576-6602 kHz and 9325-9345 kHz seemed to not follow any regular pattern, but that the wide bandwidth included an amplitude modulated sound that, if verified, would be the very first sound transmission received from space not attributable to a natural phenomenon. However he was not the first to note it. The signal detection was shared by several others, first noted in Mongolia.

"Doctor Choi Khan San of Ulaan Baatar University may well have been telling the truth when he noted the disruption to regular radio broadcasts for 67 minutes between 10.34 and 11.41GMT did not come from any typical radio bandwidth transmission" said Professor Rachdi.

Professor Bart Kennedy of the Berkeley Institute of Astronomical Science is unconvinced, and says it might be a reflection of a signal from outside the solar system that has taken some time to return to earth, although he says scientists should have a better idea after further research.

Is it just a bizarre reflection (and amplification) of past radio signals from earth from some other source, or is it intelligence from outer space?

Greenpeace spokesperson Elkin Colinsonya of Finland said that if there is evidence of life outside earth, we should "ignore it, as we shouldn't corrupt its ways". Colinsonya said research into signals from outer space simply encouraged the use of electricity for purposes inconsistent with the sustainability of the planet. "What if humans become friends with inhabitants from another planet? We'll want to use it and abuse it like our own".