02 October 2009

Rudman shows why politics and transport don't mix

Brian Rudman has a cheek to call the Minister of Transport an ideologue when he is one of the true believers of the Auckland rail religion. Rudman doesn't call into question the "business cases" the ARC puts together on rail, or Mike Lee's strong leftwing political background in being mischievous towards the government before he is put out of a job.

Bear in mind a "business plan" for something that produces ongoing financial losses is a curious thing, and that scepticism from central government officials about the veracity of the ARC's work doesn't motivate Rudman to question his fellow true believers.

He damns the proposal for a Puhoi-Wellsford motorway. A project which may not be worthwhile, but only money to investigate it has been approved. Money paid for by road users of course. The same can never be said about capital expenditure on Auckland's railways. Rudman in a rather arrogant style dismisses the only major link between Northland and the rest of the country as a road to John Key's holiday bach. I guess he thinks nothing exists north of Puhoi.

Auckland's Regional Transport Committee, a hodgepodge of political interests, naturally wouldn't think so. Given it is advocating a billion plus underground rail tunnel in central Auckland, which would also run at a continued loss, it is clear it worships at the same church as Rudman and Lee.

Rudman doesn't understand why central government time and time again has said no to pouring taxpayers' money into Auckland local government's railway flights of fancy, except the last government. Maybe he should check his premises, these being the following key features of the religion he subscribes to:

- Auckland rail projects all result in ratepayers and motoring tax payers losing money year after year, but that's ok. It is for their own good, even if few ratepayers will see their property values increase as a result, and motorists wont notice a jot of difference to congestion.

- Auckland rail projects always fail conventional economic cost-benefit appraisal, compared to other public transport projects or road projects. That's because the wrong things get counted. People don't value saving travel time that much (they speed, use shortcuts and overtake because they are mean spirited), accident reductions aren't that important, and it is just really really special for people to ride by train instead of, bus.

- Just because the majority of Auckland rail users come from buses or wouldn't have taken the trip in the first place, doesn't mean it isn't worthwhile subsidising them at $4 a trip.

- It doesn't matter that 88% of Auckland jobs aren't in the CBD, where the railway is focused, it doesn't matter. Just ignore that. It will change when there is a railway, you'll see. Aucklanders who work elsewhere don't matter anyway, and we'll build more railways to serve them.

- It doesn't matter that 7% of Auckland trips are by public transport (most of those by bus), spending over a billion to get it to 15% (by 2051!) is good for you all (although 17% of trips are currently by foot).

- It doesn't matter that between 33 and 45% of peak trips to Auckland's CBD are by public transport, predominantly by bus as it is. It doesn't matter that this split is high by international standards.

- It doesn't matter how much money is spent on rail in Auckland, it must all be good, it must be good, even though the whole network was only worth $20 million to start with and wont be worth much more after $550 million is spent electrifying it. You couldn't sell it off for what has been spent on it, you couldn't sell it off for a quarter of that. However, in the church of Auckland rail, spending other people's money is a core sacrament.

- It doesn't matter that the impact on traffic congestion of Auckland rail is virtually nil. Traffic congestion is good. Car users are addicts and must be weaned off their addiction. They really don't want to drive, many don't really want to own cars, they just haven't learnt it yet.

Brian wants government to treat Aucklanders as adults. Brian, they would be better treated as adults if you let them spend their own money, respected the fact that most Aucklanders most of the time choose the transport modes that best suit them, respected the fact that most of the money you want spend on railways comes from people using roads, and respected the fact that this religion of yours is completely useless for the trips most Aucklanders do most of the time.

Maybe you should go to Penrose/Mt. Wellington, Auckland's second biggest employment hub, and ask workers there what the electrified railway will do for their trip to work?

Nationalising sports broadcasting rights

That is exactly what has now been done with your taxes, now that the government has approved taking your money so Maori TV can outbid TVNZ, TV3 and Sky (which owns Prime) in buying the free-to-air broadcast rights to the Rugby World Cup.

In short, the government has kneecapped two private companies, and its own company, in order to subsidise an already highly subsidised broadcaster. MTS gets $16.5 million of your money, through the ever accountable Te Puni Kokiri, in this year along just to broadcast. This is clearly a big piece of pork for the Maori Party. Given Maori TV is meant to exist to promote the language, not be a platform to broadcast sports, you do have to wonder about how this is compatible with it.

Of course, the strategy presumably is to get more people to get their TVs tuned into the channel, and more watching it, to boost the ratings, the advertising revenue and for that to have a follow on impact on ratings for other programmes. It's not enough that MTS gets over $300,000 a week in subsidies, no it needs the government to buy the broadcasting rights for it.

The NZ Herald reports the cost is NZ$3 million. It is, of course, worthless to you as you would have been able to see it anyway on whatever channel it is on (notwithstanding coverage issues).

Just another day in the life of a government that happily spends your money, like the last lot did, buying special interests when it feels the need to do so. Maybe Maori would have preferred the money as a tax cut?

01 October 2009

Time to abolish NZ On Air

David Farrar has written apparently sympathetically about the idea of extending the state broadcasting subsidy body - NZ On Air - to other media. This was because Fran O'Sullivan proposed it, and Janet Wilson appeared to endorse it.

What nonsense.

As people consume media increasingly online, they are doing so without state subsidy (although Labour poured a little into subsidising infrastructure and National is keen to pour vastly more into it). In the meantime, it has never been cheaper or more accessible to produce video footage or recordings. The excuses of the expense of local production making it difficult to make "Kiwi Kontent" now lie in only one place - the salaries of those working in the sector.

NZ On Air is, in effect, a job subsidy programme. It pays for people to work in the film and television industries (and state radio), from actors to producers, directors, camera crew, editors and the rest. A labour of love for many.

The argument that without NZ On Air, national culture on broadcasting would suffer is only true if you believe that the people whose jobs are supported by this subsidy would do something else. Many wouldn't. The question really is, who should pay for something that those working in the sector say is so valuable?

Should you be forced to pay for programmes you don't watch and didn't ask for? No. Of course not.

Plenty of people provide online content and do not get subsidised. Of course a significant number of households choose to pay for TV they want, through Sky and Telstra Clear cable television. People want what those companies offer, and those who don't aren't forced to pay.

So who SHOULD pay? Those who are such loud advocates for it. The people who say it is good for you. However, most importantly, all those working in the sector should do their bit - and work for free.

How can the humble taxpaying public be expected to embrace culture they are forced to pay for, if so much of what they pay goes into the pockets of those proclaiming how good it is for them?

No. If you work in the NZ On Air subsidised sector and think it is so valuable, then you do it for free and ask people to donate for your time.

Otherwise, isn't it just another form of rent seeking?

NZ On Air should be told that no more money will be available for any future allocations. Existing contracts will be honoured, but that is it. Radio NZ will face a similar fate, but can start to tout for donations, subscriptions and sponsorship.

Suddenly, TVNZ, TV3 and Sky will find it cheaper to make New Zealand content, because a whole host of people, whose jobs were dependent on the taxpayers, have to cut their income expectations in the hope of working in the sector they love. The time has come to stop propping up this vestige of protectionism.

Whoopi Goldberg's excuse for Polanski

Just when you thought you'd heard everything, Whoopi Goldberg, who one would think of as being a feminist and someone who would embrace protecting young people from violence says:

"I know it wasn't rape-rape. I think it was something else, but I don't believe it was rape-rape", according to the Daily Telegraph.

Hmm drugging then telling a minor to submit to having sex with him is what then? So when a 13yo girl doesn't struggle and fight, then it's what?

Oh that's right, it's the entertainment industry. You're special, you do so much for us, it's not so serious when one of you rapes a young girl right?

You pontificate about politics, judge so many other sectors, yet far too many of you give excuses for your friends to do violence to others.

The ONLY person with any right to say anything about this case is the victim, who happens to want it all to be left alone. That is the only mitigating factor as to how it is treated now.

Oh and she isn't the only one making excuses. Here is a petition (in French) signed by more than a few famous people, appeasing the man's forcible rape of a young girl.

What to cut? Here’s a conservative list

With the party conferences of the Socialist Liberal Democrats and the Nanny Labour Party out of the way here in the UK, next comes the Conservative Party. Can it inspire so that instead of Labour simply losing the election to it, that it positively wins? I have to say it is unlikely.

However, with First Past the Post, the realistic alternatives have extremely remote chances of getting anywhere. UKIP is a party that is welcome on scepticism about the European Union grand state collectivist project, but also painfully stupid on economics with a protectionist streak. The embryonic Libertarian Party UK on the other hand is so limp wristed with its “libertarian” policies, that it looks to the left of Thatcher.

So, given the UK’s enormous public scepticism about politicians, the widespread belief that the state has grown too much and the understanding that the budget deficit must be drastically cut and eliminated, so that the huge burden of new Labour inspired public debt can be cut, I thought I’d pull together a list of spending cuts that any half arsed decent Conservative government ought to have the courage to implement:

1. Scrap the Department for Business, Innovation and Skills, and terminate all subsidy, loan and other forms of state support for businesses. The best support British business can get from government is to cut taxation and get the hell out of the way. No picking winners, no corporate welfare. Phase out all schemes to give money to employers to recruit and train people.
2. Lead a determined campaign at Brussels to cut the size of the EC budget substantively. Declare that the UK will cut its contribution regardless, and that if other EC member states don’t like it, then they can be reminded of their own widespread breaches of rules regarding budget deficits and the Euro. A first priority should be an immediate suspension of all export subsidy schemes, and a nominal freeze on the growth of agricultural subsidies.
3. Start a new round of privatisation. The Royal Mail and Channel 4 should be the top of the list. However it is time to be really bold and include the motorways. Don’t do the lot in one go, start by selling the tolled crossings separately, then regional networks of motorways, for extended lease periods. You’ll have to find a way to pay the new owners from taxes you collect, but give the owners a period to introduce electronic tolling, then cut back on fuel tax.
4. Cut spending on unprofitable railway projects. No new high speed railway. Let projects proceed only if Network Rail accepts full risk of borrowing and paying it back from track access charges. It is time the railway started paying for itself. Crossrail should be the last big taxpayer supported rail project.
5. Scrap the ID card scheme. It might only save £40m says the Home Office, but it is unnecessary and immoral. Write it off.
6. Scrap a wide range of major IT projects, like ContactPoint, NHS National IT Programme, the expansion of the DNA database to include innocents.
7. Scrap subsidising rural broadband. In the meantime, restore BT’s property rights over its own network. It is increasingly seen as a legacy system anyway.
8. Abolish all regional development agencies and suspend further funding of regeneration schemes. There isn’t the money to spend on state property investment.
9. Charge people on the NHS who are “no shows” for any appointments, charge all people who visit A & E with anything less than an urgent emergency, introduces charges for more than 1 GP visit a year for everyone 18-65 who is not below the poverty line. Freeze NHS spending in nominal terms.
10. Radically reform funding of the Scottish Executive, so that funding is proportionate to actual taxation raised from Scotland. Let the Scottish Executive cut what it can.
11. Eliminate extra welfare for people already on welfare who have additional children.
12. Negotiate an end to EU welfare tourism that entitles EU citizens to claim welfare in each others’ member states. The UK will withdraw from such provisions, meaning UK citizens cannot claim welfare elsewhere in the EU, and vice versa, except for old age pensions on a like for like basis.
13. Freeze all public sector pay until the budget is in surplus.
14. Terminate immediately all new taxpayer contributions to public sector pension schemes and announce that there can be no new members. This is exactly what New Zealand did in the early 1990s.
15. Abolish all new agencies created in the past 12 years. From those regulating childcare to those regulating the postal sector. Britain lived quite happily without them before, it can do so again.

Meanwhile, do not increase any taxes. Prepare for a simplification and general reduction in taxation once budget deficits have been eliminated. Announce what these are likely. Don’t cut defence. It is your core role and the mission in Afghanistan is hamstrung by appalling management and budgeting. Whilst Iran and Russia continue to sabre rattle, now is not the time to cut Trident.

Oh and really, this list is shamefully short. I have barely touched welfare, housing, health or education. This should be the easy stuff politically, although some (like Europe) will take some backbone.

What are the chances even a third of this list could be adopted?