15 April 2008

Greens oppose competition for government companies

Green MP Sue Bradford in the typical "Nanny State knows best" fashion of the Greens has said in her press release against privatisation that despite John Key's decision to have a privatisation policy to the left of the British Labour Party..
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"Key's assurances say nothing about opening up state assets to private competition"
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So the Greens now believe that state owned enterprises should actually be monopolies? She witters on about ACC - the only example in the world of a state monopoly for personal injury by accident cover, and as a result one with the worst payouts. If you're a student doctor and have injuries that prevent you ever being a surgeon you'll get compensation equivalent to you pay as a student - not what you would have lost. You can't sue of course, because that's not allowed in the happy socialist world of "no fault", even if someone drove drunk into you.
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Bradford's view presumably means she thinks that NZ Post should have a statutory monopoly again (the Alliance did vote against it), Air New Zealand surely should have domestic routes to itself, and private companies shouldn't be selling electricity, so bye bye Contact Energy and Trustpower. We know the Greens aren't friends of privately provided health and education, so presumably private hospitals and independent schools should go. Banking is more complicated, because presumably Kiwibank shouldn't have to face private competition.
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So in other words it's ok for the state to rip you off, provide poor service and shut out competitors, because competition is "bad" unless it is the evil private sector facing it. Presumably if you get bad service from the "people's" hospital, you should complain to your MP who will fix it - you know how effective that has been.
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The Greens don't like monopolies except ones that you, the taxpayers have to fund, and which are owned by the big brother state they want to control and grow.

14 April 2008

Auckland local government?

It doesn't matter how you want to slice the Auckland local government cake - it is still cholesterol laden and tasteless. It's too big. Arguments about the best structure avoid the first point - what should local government do? Labour and the Greens believe it should have the power to do just about whatever it wishes, this means running businesses, supplying housing, regulating and planning as much as it can get away with. I believe that, at the most, it should provide a transitional role in defining property rights, administering public space and divesting itself of activities that could be done by the private sector and voluntarily.
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What does National believe?
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It could start by restricting local authorities to only being custodians of arms length commercially or cost recovery run water, sewage, stormwater, rubbish collection and public parks, with planning authority only to enforce private property rights. It could transfer roads to companies with adjacent property owners owning the shares and paying access fees. However, most of all local government needs to be limited. The current review of Auckland governance ignores this, and attributes blame for Auckland problems on the wrong arrangement of councils - when the real blame is the meddling of councils and their inability to carry out well some of the functions they are entrusted with. The poor turnout at local body elections show what little interest many people have in local government and how poorly representative it is of "the community".
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So first decide what local government should or shouldn't do. What do YOU think? Would Auckland be worse off if Auckland Regional Council was abolished?

Labour's Zimbabwe election tactics?

If anything should justify universal outrage about Labour it is the report in the NZ Herald that it plans to sidestep the Electoral Finance Act, by using YOUR money through the once politically independent state sector. These come from confidential strategy notes apparently distributed at the Labour Party Congress.
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According to the NZ Herald "in a private session on the election strategy, run by president Mike Williams, delegates were advised to distribute pamphlets on KiwiSaver produced by the Inland Revenue Department and on Working for Families produced by Work and Income. They were also advised to tell voters when handing out the pamphlets that National voted against both measures."
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So Labour wants to use taxpayer funded leaflets about government policy to campaign - how very convenient. Of course all public servants are expected to declare to the Chief Executive their political affiliations - all such public servants should simply not be permitted to remove from their work large numbers of publicity material for political purposes.
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This, of course, was always the problem with the nonsense about "buying elections" with private money. The incumbent government can always "buy elections" with the resources of government departments directly or indirectly, and it is compulsorily funded by taxpayers whether they support them or not.
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So will Nicky Hagar write a book about Labour's strategy to buy the next election? Oh no, that's right, that "journalist" wants Labour to win. Meanwhile, watch Labour's blogging lackeys deny it, say the Herald is a rightwing rag or claim that it's been misinterpreted. Anything for power right?

John there IS an alternative - make the argument

So John Key has been reported by Stuff as saying that National has "ruled out" state asset sales in its next term. Why? Well don't expect any thought about it - it's simple, Key doesn't believe in much another than getting elected. Fair enough some of you will say. However, some of us want to think that he'll DO something other than not be Helen Clark and not make things worse.
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Of course, Helen Clark is having him for toast on this. "Miss Clark said Mr Key's stance was "laughable" and could not be trusted." It is and I actually hope it can't. I hope he DOES engage in asset sales, because there is so much the state shouldn't do.
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There are multiple reasons why the state should privatise its commercial operations, and why the abject lies spread by the left about privatisation should be confronted. Here are some:
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1. Taxpayers shouldn't be forced to invest in businesses they don't want to invest in.
2. Politically appointed boards will be less competent than privately appointed boards, because politicians have incentives to meddle and make a company less profitable than it would be otherwise - which then means there is a bigger chance of a bail out.
3. The state should not be engaged in competing with the private sector. It is unfair for private competitors to fund state owned companies through taxes.
4. Private companies can more readily raise capital to invest, update and expand than state ones - this explains why Contact Energy seems more able to fund and build power stations than its competitors.
5. Businesses SHOULD be allowed to fail if they don't perform. It's part of capitalism and the world moves on, and new businesses buy the assets and provide services for people to use. This happened to TV3 in 1991, not that most of you will remember that. Australia was hardly crippled by the collapse of Ansett.
6. Privatisation can provide new expertise and capital to grow and develop businesses. Telecom and Contact Energy are two examples of this. The refusal to allow Singapore Airlines to do the same thing for Air New Zealand is one of the reasons the firm fell over.
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However, arguments about better performance, getting more investment and accountability will not work with most of the public. Even arguing selling SOEs to cut public debt wont wash that much, although it is still valid. John Key could advocate privatisation of a more direct kind - give away the shares.
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Imagine if National offered to give shares to every single citizen, in equal numbers to avoid arguments, in one current SOE. This would be true public ownership. Everyone would own shares, get dividends and watch the value rise and drop - and could decide whether to sell, buy more, and appreciate a little what it means to own business. Oh and the socialists could give the shares away to their favourite charity, not that they would of course.
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So go on John, say you'll sell just one of the three government electricity SOEs (no monopolies here, there are around seven electricity generating firms) like Genesis - with 40% of the shares going in a public float and the rest shares distributed to all citizens. The firm buying 40% would provide the expertise and capital injection, the rest would mean all citizens could vote for directors, attend AGMs and truly own shares.
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How many Labour voters would vote to get their shares? How would it change how people felt about capitalism being all shareholders? Watch how Labour and the rest of the left would say the poor would simply sell the shares - showing their contempt for their own supporters - assuming they are all stupid or that it is wrong to give them a part of the beloved state THEY can control.
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Go on John, it's worth a shot. You could make privatisation NOT a dirty word.

Where is Nelson Mandela?

According to the Sunday Times, Mugabe's murdering self styled "war veterans" are back on the rampage, brutally attacking the handful of remaining white farmers, and black farmers accused of supporting non Zanu-PF candidates:
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"When the trunk stopped they punctured the tyres, dragged the farmer out, cuffed his hands behind his back and drove him away in another vehicle. At one point one of the war veterans put a wire noose round his neck and began to strangle him. He stopped before it was too late. Meanwhile, the police had been alerted and managed to persuade the war veterans to release their prisoner"
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Charming indeed, for a 76 year old man to endure. However, Mugabe's thieving murdering lackeys fear him losing for fear they will be held to account for their own crimes. The Sunday Times also reports that "meticulous records kept on filein a special archive in the Reserve Bank could be used against them". This includes the army chief Constantine Chiwenga, the Police Commissioner Augustine Chihuri, and many other high ranking military officials and politburo members. Air Vice Marshal Henry Muchena was reported as saying that Zanu PF " did not fight a liberation war to have Zimbabweans vote incorrectly".
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Meanwhile, there are to be recounts of results in 23 constituencies, 22 at the call of Zanu-PF. The appeasers of the Southern African Development Community, which represents 14 countries in southern Africa couldn't even agree that there IS an emergency - at best useless inert nobodies, at worst mates with Mugabe all with blood on their hands.
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So while Thabo Mbeki does nothing while black Zimbabweans starve, get beaten up, tortured and bullied, where is his predecessor? Nelson Mandela - the great hero of South Africa, who was rightly feted for having allowed a peaceful transition from fascist apartheid rule to relatively open non-racial liberal democracy?
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Why is he silent when fellow Africans are being so appallingly mistreated, lied to, cheated and killed by Comrade Mugabe? Well the ANC is wilfully blind to electoral fraud, putting out press releases like this, which ignore any claims of fraud, bias or intimidation. According to the Helen Suzman Foundation, the South African media is largely craven in its unwillingness to criticise Zimbabwe, because the ANC wont. It calls for targeted sanctions.
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but it wont happen. Mandela COULD speak up, he could call for Robert Mugabe to step aside, for international monitors of a free and fair runoff election with no intimidation, and for failure to follow this to be a reason for South Africa to impose targeted sanctions. He wont, and this makes him, as one commentator put it, a fallen hero.
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Robert Mugabe has created more damage, death, pain and suffering than Ian Smith's racist minority regime ever did - it is a damning indictment on Mandela, Mbeki and the ANC that Mugabe's past support for the fight against apartheid excuses his murderous tyranny. When human rights campaigners criticise China for propping up Myanmar and Sudanese tyrannies, they might start aiming criticism at South Africa for doing the same thing.