Just sell them

Labour is moaning about big dividends from electricity SOEs. Labour of course took big dividends when it was in power. However, the idea of cutting dividends and having this flow on to power prices is completely absurd. It would be unfair, because private power companies have less capacity to refuse dividends, and it would mean the taxpayer getting ripped off by the capital investment in the SOEs being undervalued. Of course, non-customers of the SOEs would get nothing, and given around 30% of the market isn't with the state, that's quite a bit.

So the best solution is simple: Privatise.

Partly by sale, when market conditions improve. Partly by giving away shares to taxpayers. Then the dividends wont just be money for the state to spend, but for people to choose how they wish to spend it.

That's true public ownership. However, those on the left don't like it, because they think they know better. You see you might spend a dividend on food, clothes, a holiday or your mortgage repayments, they'd spend it on state health, education and picking winners (or losers) in business or the voluntary sector.

However, you know the state will hold onto these for now, because the National Party thinks that the majority of you lot think privatisation is a dirty word.

Police create market opportunity

Closing down one supplier, puts up the price, and a new opportunity emerges.

Someone will be celebrating this, it wont be the customers, who will pay more, but the competition.

So what good has been done?

So, if you're in Queenstown, have you found the Police very responsive to thefts, burglaries, car conversions and vandalism?

Drinkers' licences - a joke?

Here's an idea:

"One possible solution could be an entitlement card that people would carry and swipe when every time they buy Alcohol or Tobacco and record their usage. Is that too radical? I don't think so. For a long time the Government have controlled motorists with a system of licences where people enjoy the right and freedom to drive - as long as they conform to certain rules.

With the card, people who got into trouble for, say, minor crimes or drunk and disorderly conduct in public would receive a fixed penalty notice and 3 points on their entitlement card with points disappearing over time for in the same way works on driving licences.

More serious offences would result in endorsements on the entitlement card and the cardholder would not be able to purchase alcohol, tobacco or other drugs available for sale through the entitlement card scheme."

This comes from a Labour Party Parliamentary candidate, John Cowan on a British Labour Party blog.

I kid you not.

This lot rightfully call the BNP fascists, but methinks the proverbial pot is calling the kettle.

I'd like to think this nonsense will just be dismissed, but experience tells us it gets embraced by statists, who think it's a great idea.

Pop at "Beware Mad Socialists" says it is justified by the "cost to the NHS" and says "The 'cost to the NHS' is used by totalitarian socialists to justify many of their evil plans. If the NHS doesn't want to treat people, they should simply give people their money back and let them sort out their own medical care - private health companies would be delighted to sell people the care they really want."

Ration cards for what you consume.

Of course, then it could help with obesity couldn't it? You wouldn't get more points to buy chocolate if you didn't get points from going to the gym. You wouldn't get more points to buy petrol if you didn't get points from catching the train. You could all be good boys and girls and do what we say, rather than do what you want - as if YOU know what's good for you.

You think I'm kidding don't you? It is like Not PC's recent post on NZ in Print, one jokes about calorie taxes, and then someone thinks it is a great idea. In fact, Google "calorie tax" or "drinkers' licences" and discover how many are jokes and how many think it is worth considering.

Hat Tip: Old Holborn

People don't care about state TV

Uh oh Labour MP Brendon Burns thinks you all love the beloved nanny state broadcasting to you:

"New Zealanders expect a state commitment to quality and relevant broadcasting. The Government must provide it by looking at the future of the industry and determining how it can best ensure TVNZ remains a key player"

He wants protectionism for TVNZ and private free to air broadcasters. Why? Because he thinks they are special, as they lose viewers and advertising to the internet and pay TV.

Frankly, Brendon, I doubt most New Zealanders could tell you whether TVNZ was state owned or not, particularly TV2. Indeed, more than 1 in 3 households pay for TV content themselves. (Those listening to Radio NZ know taxpayers pay for it, but that's 1 in 5 radio listeners at best).

Most people wouldn't give a damn if TVNZ were privately owned, it's only statists on the left who think there is something warm and nationalistic about having a government owned broadcaster to show people what's good for them.

Personally, I think TVNZ has done more than any other state institution, besides the education system, to promote the systematic dumbing down of the population and sensationalism about news and current affairs. So while I'd be helping selling it off, I wonder if New Zealand wouldn't be better off if it was shut down and its assets sold off. Let someone else start up a couple of TV networks from scratch, and ditch the inane, image obsessed "broadcasting to 12 year olds' "approach of TVNZ.

Remaining tariffs to stay for now

National is replicating Labour's trade policy with this announcement "Import tariffs will remain at their current levels until 2015 at the earliest, Trade Minister Tim Groser and Commerce Minister Simon Power announced today."

Admittedly they are low, a maximum of 10% now (that early agreement to freeze them in the first Labour-Alliance coalition quietly expired with that coalition), and the government has said they are subject to negotiation at a WTO round, or free trade agreements. Apparently 80% of the value of all imports is tariff free (oh the horror say the Greens, I expect), and there is already 100% tariff free trade with Australia and Singapore. Other free trade agreements will see tariff free trade with Thailand, Chile, Brunei, China and the remaining ASEAN countries over the next

This is understandable, it provides a small amount of leverage. After all, without tariffs what does New Zealand have to offer in trade negotiations? Particularly in a world with a US President with precious little interest in trade liberalisation (yes Bush actually was a positive force on free trade compared to Obama).

However, this isn't the point. Much work in the 1980s and 1990s demonstrated that tariffs are a deadweight cost on the economy, by increasing the prices of goods for consumers. There are benefits in abolishing all tariffs on all imports. Tariffs make clothes, carpets, some processed foods, shoes and some other products more expensive than they otherwise would be, to protect a few businesses from real market competition.

While the government may pursue free trade agreements with remaining major trading partners, the likelihood is that the US will go nowhere under Obama, neither will Japan under the new government, whereas the EU and South Korea would shut out agriculture - which frankly is the main point.

Meanwhile, New Zealand could instead be a free trade zone that is an example to the world, rather than retaining a few puny tariffs that simply punish New Zealanders.

It's time to have some courage - and to meet the commitment New Zealand made, as an APEC member economy, to have free and open trade with other APEC nations by 2010.

That would be a start.