04 October 2011

Infrastructure for Britain - an agenda for growth

One of the themes that all party conferences have suggested so far is that the government can help the economy by spending money on infrastructure.  Certainly the Conservatives believe they are doing that.  However, there are only two major ways government can help out in this sector, and the main reasons are because it is such a hindrance more often than not.

Firstly, it can get the hell out of the way of the private sector provision of infrastructure, by not negating its private property rights or stopping it from engaging in large, profitable projects.  The key areas the private sector gets involved in are energy, airports and telecommunications, but it should also be set free to put money into roads and railways (good luck with that, by the way). 

The second way is for it to invest in the infrastructure that it happens to own and run for now, but transition that infrastructure to commercial then private ownership.  What this means is roads and railways, but could arguably even stretch into health and education (though these are so far removed from being commercial as of yet, I'll ignore that for now).

Energy

In energy, the key intervention is the effective "tax" on electricity bills imposed by electricity retailers to pay for the compulsory "sustainable" generation of electricity, at prices far in excess of efficient forms of generation. The motive behind this policy was to chase the ghost of climate change (every new Chinese coal fired power station more than destroys the reduction in CO2 by this measure) and to pursue the illusion of industrial policy.  The latter is more effectively pursued by lowering corporation tax to a level competitive with all of Europe (15%), the former shouldn't be pursued at all.   The "sustainability" agenda is costing British businesses and households, it makes electricity more expensive in the UK than it need be, and diverts investment in power generation from economically efficient (and largely environmentally friendly) sources to more ephemeral, expensive and lower capacity ones.   Modern gas and coal fired power stations produce virtually no deterioration in local air quality.  It is time to truly deregulate the energy sector.

Little need be said about the other intervention in energy, which is the absurd "windfall" tax on oil and gas exploration.  Politics winning out over economics, and jobs.  Why would Britain ever want to deter oil and gas exploration while existing North Sea fields are in decline?

Telecommunications

The key intervention here is the heavy handed regulation of OfCom which regulates, bizarrely, a mobile phone market that is vibrant with competition, and continues to intervene in the supply of telecommunications infrastructure to an extent that hinders facilities based competition.  Why should there not be competing broadband networks being developed to homes?  Why should BT's investment be forced to be shared with others?  The legacy of the twisted copper network should be all that remains as a mandatory, regulated priced shared facility - because that was the deal with privatisation.   Beyond that, the role for Ofcom is difficult to see in this sector.  It is time for a bottom up review of whether heavy handed telecommunications regulation still makes sense.

Airports

No infrastructure sector is suffering from a blindness of economic analysis or vision than this one.  With all three major parties effectively stifling growth of airports around London, you would have to assume they all think that it is time that British Airways and Virgin Atlantic simply never grew again, and that the future for air travel from Britain is based on people flying to the growing hubs of Charles de Gaulle, Schiphol, Frankfurt and Munich airports, and to fly on Air France/KLM and Lufthansa, or better yet fly from regional airports to hubs in Doha, Abu Dhabi and Dubai, on airlines owned by authoritarian misogynistic oil-rich plutarchies.   For that is the future guaranteed by the Conservatives and the Liberal Democrats.

Heathrow, Gatwick and Stansted could all be expanded, today, with private money.  For a government willing to run roughshod over NIMBYs in building its own taxpayer funded totem - HS2 - to kowtow to NIMBYs in rural Essex, west London and west Sussex is hypocritical and economic lunacy.   The arguments against it on climate change grounds are again nonsensical in the context of new airports springing up in China, and the expansion of Heathrow's competing hubs in continental Europe.  Why should European (and Middle Eastern) airlines gain such capacity, but British ones not? 

Stansted is the easiest to expand, the land is held by BAA, the transport links to it are good, and it would facilitate a transfer of some low-cost airline traffic from Gatwick.  There is no sound reason to continue to restrict capacity there. 

Gatwick suffers from 32 year old planning decision to not build a second runway before 2019.  Given the lead times for such projects, it should be made clear that this will be supported.  Gatwick is a mini hub for BA and Virgin Atlantic, and is useful for leisure routes short and long haul, that are less suited to Heathrow, as well as servicing the southeast.

However, it is Heathrow where the need is greatest.  Unless the government were to treat a new Thames Estuary Airport as a grand project (which would have to be part funded by property development at the current Heathrow site and a tax on the property value gains for those on Heathrow flight paths), Heathrow is Britain's international hub airport.  Transit traffic does benefit Britain, enormously, because it makes routes to destinations that would otherwise be marginal, profitable, by feeding in passengers from North America and Europe. A third runway would alleviate the chronic delays in both takeoffs and landings that waste fuel, time and increase pollution.   However, most of all it would allow Britain's premium airlines to grow, to add more routes, more frequencies and compete with Air France/KLM, the Lufthansa group, Emirates, Etihad, Qatar Airways, United Airlines and others.  It would generate employment not only from construction, but in airlines and the airport itself, but more importantly by lowering the cost of travel and freight for British based businesses and residents.

Let's not continue the lie that high speed rail, which wouldn't be finished for 15 years, would make any meaningful difference, given 96% of flights at Heathrow are not on routes serviceable by domestic rail services.  Let's also admit that the business case for Crossrail was partly based on providing better connections between Heathrow and the City, Canary Wharf and east London.

Railways

The one sector where private investment is almost certainly unlikely to be seen on any great scale, is in rail infrastructure.  With the network not well priced, it should be getting run on a commercial basis so that the franchisees of the future pay demand based prices for scarce slots.  Expansion of the West Coast Main Line should be funded not by taxpayers, but by Network Rail borrowing against future revenues.  High speed rail should be considered on the same basis, but it wont be - because it would never be built.  The government is taking steps to correct the excessive subsidies in this sector, but it should be considered, along with reforms of the roads sector, for commercialisation.
Roads

There will be a handful of opportunities for the private sector to develop new toll roads (e.g. another Dartford Crossing), and it should be set free not only to respond to government proposals,  but to generate its own.  If a company wants to build a new London south circular, why shouldn't it feel free to plan a route, buy land, build and toll it - for example.
However, there needs to be a more fundamental change.  In France, Spain, Italy, Portugal, Japan, Taiwan and China, major highways are frequently privately owned.  In the UK, the motorway network should be sold, and local authorities required to put local roads into commercial structures.   Roads should be funded through borrowing, paid back through tolls, or (for now) fuel tax revenue.  Given motorists pay five times as much in motoring taxes as they get in government spending, arguments about the private sector ripping off motorists are derisive.  Then let the privately owned networks contract directly with motorists, who could choose to pay tolls or pay fuel tax, and watch there be enough funding for road maintenance and improvements - whilst introducing road pricing in a non-intrusive, cost-effective and low risk way. 

Furthermore, there needs to be a culture change that rejects the failed 13 year policy of allowing road projects to be cancelled, and the land acquired for them sold - which has destroyed opportunities for improved corridors in London.   The answer to traffic congestion is not to stop improving roads for fear it will generate traffic, but to improve pricing (toll new capacity).  In that light, Transport for London should start developing a strategy on capacity of London's arterial road network, instead of considering the network as static.

Conclusion

Sadly, this government has shown little real interest in being revolutionary on infrastructure.  Energy and telecommunications policies are largely a continuity of the previous administration.  Airports policy is anti-growth and says the government has little real interest in the growth of that sector, other than for regional airports being served by foreign carriers.   Railways policy has some promise, but is overshadowed by the ridiculous totem of HS2 - a project to provide massive subsidies to business people based in London travelling to the north, which wont deliver most of what is promised.  Roads policy shows a little promise, but needs radical governance reform, which is seen by the almost Soviet-era handling of maintenance.
It is time to get government out of the way of infrastructure investors, and to stop crowding them out.  Furthermore, it is likely to destroy wealth through projects such as HS2 and the fascination with inefficient energy generation sources.  It should allow more airport capacity around London, it should move rail investment onto a longer term, commercial basis, and should shift the road network onto a commercial basis as well.  Now is the time to be brave.

29 September 2011

Leninism loses as students get freedom of choice

Finally, you are allowed to.  An issue I have followed for some time.

Despite the Orwellian double-speak of the compulsion touters, a majority finally appeared in Parliament to eliminate one of the most absurd authoritarian laws in the country - the one that demands that university students belong to and pay for a student union to represent them and provide services, whether or not they actually want it.
The critical central focus of the argument on this issue is one of whether rights reside in an individual or a collective.  Indeed this argument is one of the last gasps of true Leninism in New Zealand politics.  Some on the left argued that student unions are akin to "government" and that making them voluntary is akin to making tax voluntary.

When the Greens,  or the Labour Party would talk about "what students want", they weren't talking about individuals, they were talking about the people who students have been forced to pay for, and forced to have represent them.   Neither party, nor their philosophical comrades in the student unions could conceive that it was right for students to be represented, not by themselves making informed choices about whether or not to be represented at all, and if so, by whom, but by organisations that they were forced to belong to.  It had the odour of the people's democracy approach of one-party states that there need only be one party which represents "the people", not any others, because as long as it represents "the people" and "the people" are forced to support it, then how could it do wrong.

Well human beings do not have collective brains, they do not have a "general will", they are individuals.  They can make their own choices, and if most students do not want anything to do with a student union, then to demand them to belong and pay for it, is simply a form of petty authoritarianism.

Of course the true reason Labour and the Greens love the student unions is because they have been fertile, compulsorily funded training grounds for their junior politicians.   As most students are more interested in studying and their own lives, they ignore student politics, so the ones who often have been involved have tended to be those from the left who find warmth, comfort and friendship among the like minded.

The left thinks student unions will disappear, which speaks volumes about how much confidence they have that students actually value them.  When the heavy hand of state violence is taken away from students, the left is scared that they will run away from their comrades in the student unions.  If a student union can present itself as a body that offers services, opportunities and representation that students want, they will join.  If not, it will fail.

It is Labour, the Maori Party and the Greens who don't want their comrades to fail, who want people to be forced to pay for what they don't want or even hate.   No longer will the "anti-ANZAC Day" appeasers of Nazism, communism and Islamism be able to claim they represent students.

As a footnote, some time ago I asked what National MPs would vote it and vote against it.  I can't wait to find out who, if any National MPs disgraced themselves by being Leninists.

Calling the Euro project for what it is

On BBC's Newsnight, the Daily Telegraph's Peter Oborne confronts a European Commission bureaucrat (Amadeu Altafaj-Tardio) for his defence of the Euro being a great success, because it is a "political project" not an "economic project". Calling him an idiot, and then he proves it.

He said the UK had a budget deficit the same size as Greece, yet ignored that Greece's public debt was already two-thirds greater (per capita) than the UK, and the Pound had devaluated during the recession allowing exporters to become more competitive and reducing imports.  Greece had no such devaluation.  The comparison is meaningless.  He claims the Euro has "protected" economies, even though it has clearly damaged the prospects for the poorer southern economies.

Then former editor of the FT, Sir Richard Lambert is confronted for having supported Britain joining the Euro some years ago, claiming "the facts changed" when it was France and Germany breaking the rules in the first place (as if Britain would have been able to respond to that).   Peter Oborne then gets his back up because he is confronted with a book about the mistake it would have been to join the Euro by claiming that the title "Guilty Men" means Peter Oborne equates Angela Merkel with the Nazis - an emotive non-sequiter.   Then Lambert proves Oborne right by saying Germany should support Greece withdrawing from the Euro.

Oborne calls the bureaucrat idiot enough times that he storms out of the studio in Brussels.  

It's rather simple, the bureaucrats in Brussels, and the primarily French and German politicians pursuing their grand political project, have caused immense damage and they are unwilling to do what is needed to fix it.  Their only answer is more tax, fiscal union and to print more good money after bad to prop up a failed single currency project.

Watch and if you're not from the UK, note how television journalism can be professional, can have people with wildly differing views and be compelling.


28 September 2011

Labour's lying, bullying, hectoring self is back

In the UK, the party conference season is rather curious, as all three major parties present themselves to themselves and the nation as offering solutions, answers and a critique about what is wrong with Britain.

The Liberal Democratic Party - the party without any coherent purpose - was patronising in it presenting itself as "In Government, On Your Side", as if the Conservatives are not.   However, it was more curious to watch senior Lib Dem MPs be reminded that they advocated Britain joining the Euro some years ago, as did the entire party.  None of them are willing to confess how wrong they were, and although there was a plea that the relationship with Europe cannot be abandoned, they all know they are on the wrong side of history.  Neither the party of economic responsibility, nor the party (anymore) of spending promises they need never consider having to keep, they face oblivion.

However now it is Labour - New New Labour.  The Labour of Ed Miliband, the unions' choice for leader.  The party that on the one hand opposes every single cut in growth of spending of the current government, has its Shadow Chancellor say "we wont promise to reverse any of the cuts".   The party that blames "the banks" for budget deficits, yet was running structural (non recession based) budget deficits every year after the 2001 election.  A small fraction of the government's public debt is attributable to bank bailouts, most of it is due to overspending over many years.   The party that in government loved the high tax revenues from a thriving financial services sector, now declares open war on it - even wanting a discriminatory company tax rate on that sector alone.   The party that in government happily schmoozed the entire news media, now declares war on one firm that owns two daily newspapers and one TV news network, calling it, bizarrely a "monopoly" (ignoring its ever beloved compulsorily funded dominant national broadcaster - the BBC).

A series of speeches have revealed more about how nasty, vindictive and utterly specious and false the British Labour Party is, and how willling it is to lie about the past and create a simplistic binary culture of "us and them" to fire up its drones, and those who it has nurtured to suckle on the state tit.

Ed Balls said that Britain entered the financial crisis with lower public debt than the US, France, Germany and Japan.  He picked those carefully.  The US, which had ballooning debt due to the wars in Iraq and Afghanistan and Bush's legacy of bribing the electorate with money.  France, which has not run a budget surplus for two generations.  Germany, which has had a legacy of reunification that it is addressing through growth, and Japan, which has been stagnant for well over a decade.  The UK actually had a higher budget deficit than all of them.   However, Labour likes to mix up the words debt and deficit, because too many journalists are too stupid to know the difference, but some are not.   Ed Balls pointedly refused to engage with Channel 4 journalist, Krishnan Guru-Murphy about why Labour ran a structural deficit for so many years.  

Like a vampire, Ken Livingstone, good friend of Hugo Chavez, Venezuela's authoritarian socialist President, made a speech making promises to cut public transport fares, with no money to pay for it.   He wouldn't dare discuss raising council tax, which is his main source of income.  Then he dares compare the obnoxious antics of the Bullingdon Club of Oxford, which Mayor Boris Johnson once  belonged to, to the rioters.  Given Ken blamed the riots on spending cuts before, he is a dirty politician, an apologist for criminality and an opportunist.

Then Labour rolled out Rory Weal.  A fifteen year old.  Who pleaded about how the welfare state saved his family, about the family home being repossessed, with childish hyperboles about how the welfare state is being "destroyed" by the "vicious Tories", not noting it remains the highest item of state spending.  He went on about what would be done if he couldn't afford to go to school.  Well the Daily Mail has revealed what a ruse that was.  Rory is the son of a millionaire property investor whose business went bust, and the homes repossessed went for £359,000 and £500,000 each, now he lives in a 4 bedroom home with his mother and sister.   Hard life I think not, but good propaganda while it lasted. 

Less publicity was given for Ivan Lewis, Labour's shadow culture secretary, who called for licensing of journalists.  Continuing to claim that News Corporation is dominant in a market where others have the vast majority of readers and audiences, he wanted a system to "strike off" journalists who commit "gross malpractice".  Of course before that he said free speech was "non-negotiable", except it obviously is?  What happens to a journalist struck off who write a story for a newspaper, or a blog, or a broadcaster?  Rupert Murdoch was told that he cannot "assert political power in the pursuit of your commercial interests or ideological beliefs", how about the owners of the Guardian, or the Independent, how about the state as owner of dominant broadcasters BBC and Channel 4?  As Allister Heath said today:

journalism is a trade, not a profession; the idea that its practitioners should be licensed, that it should be a closed shop that only people who have passed a test can enter; and that a politically created quango can determine who is “right” and who is “wrong” and should therefore be banned is appalling and dangerous. It is a sure route to eliminating free speech and ensuring that only “approved” views can be aired.

However, it was Ed Miliband who has topped it off.  Talking about "good" and "bad" businesses, about "predators".  After citing only one example (a care home firm bought by a private equity fund that sold properties off), he and his acolytes couldn't name others.   He talks about a "a something for nothing culture" yet it was Labour that celebrated the growth of the welfare state, that never questioned allowing people from across the EU to come to Britain to suckle from the British taxpayer for a free home, income, education for the kids and healthcare.  He talks about the "the people who don’t make a fuss, who don’t hack phones, loot shops, fiddle their expenses, or earn telephone number salaries at the banks"... "the hard-working majority who do the right thing".

Who stood up for phone hacking, or looters?  How many Labour MPs fiddled expenses?  How are people who earn large salaries at banks NOT hard working?

Labour's new scapegoats are people who work at banks.  Ed Miliband's attitude is effectively to let the City of London go, to gut the financial sector of the country. 

He talks of "An economy and a society too often rewarding not the right people with the right values, but the wrong people with the wrong values.  Who are the right and wrong ones Ed?  Who is going to tell?  You? What are you going to do about it?  What is a "fast buck"?  What sort of regulatory environment will you create to make sure the economy and society reward "the right people"?  How do you know best?  He says "we must punish those who do wrong".  What is "wrong" to you Ed?  Given you support a 50p top tax rate, presuming earning more than £150,000 is "doing wrong".

He said "You believe rewards should be for hard work. But you’ve been told we have to tolerate the wealthiest taking what they can."  Taking?  Is it taking when you get paid a salary for hard work, or get a profit from a business that is thriving? 

Well here are presumably bad businesses "Big vested interests like the energy companies have gone unchallenged, while you’re being ripped off."  Unchallenged Ed?  You mean like how when YOU were Secretary of State for Energy and Climate Change for 1.5 years?  You mean when you implemented policies that force electricity customers to pay extra to subsidise the uneconomic renewable energy programme you forced on the energy companies to meet your fatuous commitment to hindering Britain's economy to let China grow unchecked and not address climate change. "
"So let’s break the dominance of the big energy companies. Let’s call a rigged market what it is. And get a fairer deal for the people of Britain." The six Ed?  The "rigged market" you were happy to support as Secretary for Energy?  Are you going to the Competition Commission about this, or just making up accusations again?

He claims Sir Fred Goodwin was paid too much when RBS collapsed, so will he be in favour of laws restricting executive pay?  How many businesses will want to stay in the UK after that?

He says "Are you on the side of the wealth creators or the asset strippers? The producers or the predators".  Who wants to wait until they are accused of being the wrong sort of business? What does that even mean?  Does it mean that when a factory shuts down, nobody should sell off the remaining assets for what they are worth?   Rory Weal's father was a speculator, he presumably wasn't a "producer" or "wealth creator".  He got loans to buy lots of properties and when the market turned, the bank foreclose and sold the properties for much less than he had paid for them.  The bank lost out because of his foolishness.   He was exactly what Labour opposes.

He cites "good businesses" which happen to be dependent on state contracts like "companies like Bombardier and BAe systems. Being sold down the river by this Government."  So Ed wants more defence spending?  He wants to break EU rules on government procurement and competitive tendering, to destroy a system that Labour set up for it to buy railway rolling stock in government?  He implies that Nick Clegg should intervene - parochial politics should win out over economic rationalism.

He said of the next Labour government "That we will manage your money properly".  Why?:  Whose money is it?  Who asked you to manage their money?  Did you fail to do so over the previous 13 years?

Finally, he tops it off with his worship at the altar of Britain's greatest religion.  The NHS, the biggest health authority in the world, and the second biggest government agency in the world that is not in China. He loves the religion so much he would sacrifice everything for it by saying:

"no greater public interest than our National Health Service" So if Hitler had won the war, but set up the NHS it would have been the top priority?

"Cherished by all of us". Bullshit

"Founded by Labour. Saved by Labour. Today defended by Labour once again" Ignoring the Tories are spending the same as you promised to spend. 

"Why does Britain care so much for the NHS?" Because you treat it as a religion that anyone who attacks it should be pilloried as a blasphemer?

"Because, more than any other institution in our country, the values of the NHS are our values. It doesn’t matter who you are. Or what you earn. The NHS offers the highest quality care when we need it" Bullshit.  I know of several who would have faced months of pain and agony on the NHS who went private.  It is not the highest quality, it does not have people coming from overseas to pay for it.

"And nobody asked me for my credit card at the door" What other public health systems do Ed? 

So let's really lie profoundly Ed "Hospitals to be fined millions of pounds if they break the rules of David Cameron’s free-market healthcare system. The old values that have failed our economy now being imported to our most prized institution: the NHS."  Free market healthcare system?  Really? So I can stop paying for the NHS and buy healthcare from whoever I like?  Oh no.  It's not.  It is like claiming North Korea has a free press.  The reforms, as little as they are, are not free market, but they are about putting accountability into this institution of centralised socialism, this monolith of bureaucracy, buck-passing and producers' interests.

You see the NHS exemplifies the "something for nothing", "vested interest", "cartel", "unaccountable" culture Miliband talks about, but it is his cherished state entity.  The NHS can do no wrong, it should just get hundreds of billions of money to just keep doing as it does, allocating health care by bureaucratic/political fiat, giving people health care regardless of who they are or where they came from, whether they are taxpayers, illegal immigrants or criminals.  It exemplifies Labour values - an international class centrally planned taxpayer funded monopoly dominated by strong professional unions, with no ethos of efficiency or customer service.

You might wonder if Ed has dreams of the same for journalism, energy, the financial sector or other parts of the economy.

Ed Miliband and his team have shown themselves for what they are.  A bunch of leftwing authoritarians, who want to label businesses as "good" and "bad",   Who talk of fiscal responsibility, but oppose any cuts in spending.   He wants rules on executive pay and rates bankers who earn large salaries alongside looters.   He wants to break up a "cartel" in energy and regulate prices, while (ignoring that he was once in charge of this sector) celebrating the health cartel of the NHS and lying blatantly about the severely cauterised reforms being implemented.  He wouldn't know a free market if it danced in front of him.  He talks of good businesses who are being let down, because the government didn't spend enough money it doesn't have, on them, or rig the rules to favour them.   

Most astonishingly, he almost completely ignores the global economic crisis.  One that was not saved by the pseudo-Keynesianism embraced by his party, one that the EU is mismanaging and which he is clueless about.

Labour's lying and spinning was legendary under Tony Blair, it continues with aplomb.  Lying about the budget deficit, lying about NHS reforms, lying about the "monopoly" and "dominance" of Rupert Murdoch (which was just great when NewsCorp papers loved Labour) and finally having a kid lie about his family's "poverty", when the kid's father exemplified exactly what Labour (now) despises in business.

It is a party of authoritarianism.  It likes to spend other people's money, like to tell businesses what to do.  It likes having a punitive tax on the financial sector.  It damns private equity firms generically, because it neither understands them, nor does its drones of envy dripping supporters.   The latter was perfectly exemplified by a chap from "the North" on BBC's Newsnight angrily demanding money from "the bankers who created this recession" and blaming everything bad on the Tories.  Angry, vacuous, intellectually dishonest.

I'll leave the end once again to Allister Heath:

Liberalism is dead in the Labour party: it believes in telling people who can and cannot be journalists, what is and what isn’t morally acceptable, and levying arbitrary double and triple-taxes on people it doesn’t like. Unfortunately, it has also lost touch with economic reality. The only good businesses Miliband mentioned were “real engineering” companies and those who “train, invest, invent, sell” (anybody knows a single firm that doesn’t do at least two or three of these?). The only “good companies” he mentioned by name were Bombardier and BAE Systems; the only business leader he name-checked was Sir John Rose, ex boss of Rolls-Royce. All three are long-established, manufacturers and sell lots to governments; I have nothing against them but it says a lot about Miliband’s priorities. What about the dominant services sector? And aren’t all firms that follow the law, create jobs and thus fund HMRC “good”? The only other firms he likes are small businesses “who can’t get a loan” (what about those that can?).

Labour has abandoned Blairism and is once again a party of the old left. Miliband has no credible plan whatsoever to boost the UK’s growth and competitiveness. How incredibly depressing
."

27 September 2011

Sloppy Dominion Post

I don't know Bronwyn Torrie, but her article called Councillor headed for North Korea demonstrates once again my point that journalism in New Zealand is hard to find.

She should be ashamed, the article should be withdrawn and rewritten.

The story is about how the Deputy Mayor of Porirua City Council has been invited to North Korea by the regime.  She is going paying 40% of the cost of the trip herself, the rest paid for by North Korea's useful idiots in New Zealand, the wholly sympathetic Democratic People's Republic of Korea (DPRK)- New Zealand Friendship Society.

Bronwyn's first faux pas is in calling it the "Korea-New Zealand" Friendship Society, as if there is one Korea.  Her second one is failing to do any research on it, otherwise she would have found out that the Society is very pro-North Korean.  Its own website admits this with the vapid comment "We were impressed by the DPRK position of forming an independent political philosophy and system which was Korean".  Impressed by the Orwellian pseudo-Stalinist ultra nationalist, ultra-militarism behind the most pervasive and absurd personality cult ever known?  Oh please.  Wouldn't have taken long to find that gem Bronwyn.   I can excuse that she didn't do the research to reveal that Society Chairman Don Borrie (who has visited North Korea many times) praised Kim Il Sung publicly in the 1970s in a book published in North Korea a copy of which resides in the Victoria University of Wellington library.

However, it is after she has reported the basic "ins and outs" of the story that she makes the biggest and most embarrassing amateur mistakes:

She said "Relations between North Korea and New Zealand have been cool since Kiwi troops fought to prevent South Korea falling to communism in the 1950s.

Relations became more frosty when North Korea began testing nuclear weapons in 2006
."

What? So New Zealand's relations with North Korea were worse when it had diplomatic relations (which it did in 2006) than when it was fighting with the UN Police Action to overthrow the DPRK after it invaded the south.  How could it be MORE frosty when New Zealand had diplomatic relations from 2001 (which were suspended in 2006) compared to fighting a war?

"The North Asian country has been largely closed off from the rest of the world since it became a communist state in 1948."

Well Bronwyn, it didn't exist before being a communist state in 1948.  There was no "DPRK" or "North Korea", there was Korea, indeed the north was claimed by the Republic of Korea which was declared weeks beforehand.  Better to say that "after it was formed as a result of the division of Korea by the Soviet refusal to recognise the government in Seoul" beforehand.

Other statements were correct, but then she comes out with this banality:

"foreigners have to gain permission to enter the country"

Wow, amazing.  Like getting a visa?  Like you need to do for China and Russia?  Like permission you get at every single border control point?  With the exception of the Schengen area in Europe and the British-Irish border, this isn't unusual.  Do you really expect to enter most countries without visas?

Finally, she finishes with this awful statement:

"Although the New Zealand Government opposes North Korea's regime, politicians have made visits there".

Bronwyn.  Where did you get this from? The Ministry of Foreign Affairs and Trade?  The Minister of Foreign Affairs?  Your own laptop? How does the government "oppose" the regime? Do you think the DPRK would maintain relations with a country that "opposes" it?  How do you think the Ambassador from the DPRK accredited to New Zealand would take this report?

This article is best when it is reporting the basics, but it falls apart when Bronwyn tries to write about history or politics.  It has mistakes akin to a high school newspaper.

It's just another reason why New Zealand newspapers are NOT world class, indeed articles like this are simply unprofessional.

Shame on you Bronwyn Torrie, shame on the editors for letting this get published.