21 October 2008

Get your pork, Waikato

Oh dear, National disappoints again. It's decided, based on ignoring objective analysis, that it will direct the Waikato Expressway to be built.

Is it the best use of road users' funds? No. Why? Because there are lots of other projects which have a lower profile, do more good for the dollar. Don't know what they are? Of course not, you're no better than a politicians - why would THEY know?

Politicians the world over have played this game. The high profile big road like a totem they support, Peter Dunne has Transmission Gully. The Nats have the Waikato Expressway.

So given I know a bit about it, let's examine it. given National's bizarre policy! The Waikato Expressway HAS been getting built by Labour, albeit a little haphazardly.

Labour says it will build three more sections within 10 years, the sections worth building in fact:
- Rangiriri Bypass: A small section to link the existing section of expressway with a rather well built 3 lane section of highway. Basically means the highway is of a good standard all the way from Huntly to Auckland.
- Ngaruawahia Bypass: A very valuable shortening of the highway, bypassing the deadly slow section through Ngaruawahia.
- Cambridge Bypass: Another valuable bypass, avoiding heavy traffic through this small town and making for a far more direct route south of Hamilton.

Now it would make sense to consider accelerating those, but beyond that National would push these projects:
- Longswamp to Rangiriri: An expensive, very poor value project, unnecessary because accidents along here have been largely avoided by some smaller upgrades. Money could be better spent on saving lives elsewhere on Waikato roads, particularly SH2 and SH3.
- Huntly Bypass: A very expensive hilly bypass of Huntly. Basically to relieve the township of through traffic, but at what cost? Over $300 million? The congestion isn't that bad, at all. Again, that money could be spent on plenty of congestion relieving projects in Hamilton city itself.
- Hamilton Bypass: An even more expensive pie in the sky project. Hamilton has a rather half complete western bypass. Parts are being upgraded and more is to come. That's because much traffic entering Hamilton starts and finishes there. However what National wants to support is a big four lane motorway to the east of Hamilton, going nowhere near it. You'll notice there is a signposted eastern bypass already called SH1B, it is far from congested today. At best this project has a benefit/cost ratio of 1:1, meaning that, if all goes to plan, if it doesn't go over cost, it will generate enough savings to motorists to be worthy of the cost.

However what is telling about ALL of these is National isn't willing to use tolls to fund them. A Hamilton eastern bypass could never be built as a toll road given current traffic predictions because there isn't enough willing to pay to justify spending over $400 million on the road. The same for the planned mountain range climber Huntly bypass. If the likely users wont pay, why the hell should you?

National once passed legislation that prohibited the Transport Minister from ever influencing what road projects got funded, to avoid this sort of nonsense. National once supported taking the roads even further from political hands, and the highways being run as a commercial business - setting tolls, and enabling motorists and trucking companies to contract directly for road services, and getting fuel tax refunds in the process.

Now it's back to old Muldoonist style Think Big projects, showing it isn't thinking, it's buying votes with stinking pork. Don't be fooled, these big projects seem glamorous, but they take money from the roads fund that would otherwise go on hundreds of smaller projects, to fix dangerous bends, add useful passing lanes, strengthen bridges, and not a few better value larger projects - like the Maramarua bypass, Petone-Grenada link road and Schedewys Hill bypass north of Auckland.

However not enough people have heard of those, unlike the Waikato Expressway and I suspect Transmission Gully. On this, National is no better than Labour.

Is nobody going to....

Delve the depths of aesthetic political incorrectness and ask....

Who is the hottest female political candidate in the 2008 New Zealand General Election?

Public health care + ACC = no accountability

This appalling set of cases reported in the NZ Herald are not the sort of thing Michael Moore describes when he waxes lyrically about how socialised health care is so wonderful. Take this:

"Patient 1 - Aug 2006: A suspected retinal detachment in Whangarei is referred to specialists at Auckland DHB.

Ten days later: No word from Auckland; patient asks Whangarei doctor to follow up. Auckland confirm they have the referral.

Feb 2007: Still no action from Auckland. Patient again asks doctor what is happening. By then the condition has worsened too much for the treatment.

Nov 2007: Patient's left eye is removed."

It can be explained, at one level, by the following.

- Capture by providers, who get funded according to what bureaucracies recommend, and certainly not based on what consumers want;
- ACC protecting providers from being sued.

ACC, you see, is an absolute travesty. It provides a one-size fits all socialised insurance scheme, where you get what the scheme dictates - because you couldn't have chosen another provider. The insurer doesn't claim it from the incompetent or the incompetent's insurer (which is ACC too), doesn't hike up the premiums from the incompetent. The incompetent says sorry, and the victim loses an eye.

Yes, fantastic system, so low cost - except for the victim of medical malpractice.

Yes, in the USA it would take months for a lawsuit to proceed, maybe years with appeals. However, the incompetent ones would seek to settle, to avoid those costs, and the mere fact of having to face up to these costs directly changes behaviour.

ACC is the socialist way of spreading the cost of accidents among everyone, including those who don't cause them, don't have them, and the costs for victims are flattened, ironed out, so you don't get more than "your share".

It needs to be opened up to competition, at all levels, so that people can choose the cover they want, so insurers can charge premiums according to risk, so that the incompetent face their costs, and others do not.

In the meantime, it will be simply another "oh we're very sorry" to those who lose an eye, have cancer spread potentially fatally, and have another stroke.

At this election, ACC has barely a mention. National will consider re-opening the employers' account to competition, which wont touch this. ACT would open all of ACC up to competition, which would make a difference. Libertarianz would open all of ACC up to competition, privatise it and restore the right to sue.

So what do you think? Would competition in ACC be enough, or should health professionals face being sued for their incompetence? I don't mean the crazy subjectivist US tort cases where people sue for their OWN incompetence, but clearly establishing on the balance of probabilities that the other party has been unreasonably negligent.

What is rich?

I was astonished a few years ago when visiting part of my family in the provincial south and discovering that it was generally thought among them all that NZ$60k per annum was high income. Given that at the time, even though I was still living in New Zealand, I was comfortably above that income, I was slightly embarrassed, for fear that said relatives (who I love dearly) would think I was living the high life, when I most certainly was not.

I never considered that paying the mortgage on a three bedroom house in Northland, Wellington, an annual overseas trip, regular domestic trips, occasionally buying new appliances and clothes to be an extravagance. Indeed, at the time I eagerly gathered airpoints so my overseas trips could be upgraded, and was remarkably frugal.

Of course the UK offers much more, although it is dangerous to do the simple NZ$-£ conversion and think one is wealthy. If I do that it seems crazy, but Purchasing Power Parity is far different between London and Wellington.

So that's why Cactus Kate's post on the pathetic SST piece on how to earn NZ$100k a year is apt. NZ$100k is not good money, it is £36k - which is only slightly more than a good teacher would earn in the UK.

New Zealand has a currency that has a poor value. This, of course, is seen as wonderful by exporters simply because it makes it easier to compete with others. This, strangely, wasn't a concern in the 1970s when the NZ$ and A$ were on a par, and when the £ and NZ$ were at a 2:1 ratio, instead of 2.5-3:1. However, the quid pro quo of a low dollar is that, in reality, your buying power is low. Buying capital goods is more difficult, travel is more difficult. The result is the quality of life is reduced because less can be bought, which is why (until the recession), tourism from the UK boomed. British tourists saw a bargain paying as little as £750 to fly to NZ (less than flying premium economy to the USA) and everything being relatively "cheap". Some were more than willing to pay double that or more to fly premium economy for what was to them the most epic flight they would ever do - which is why Air NZ has expanded premium economy on its long haul jets three times.

Which brings me back to NZ. Salaries are lower because the cost of living is lower, competition for positions is lower, and expectations are lower. I have seen an enormous difference in standards among some people I have worked with the UK compared to NZ, but I have also seen the UK have (in government in particular) absolute fools who seem to comprise an extended make work scheme. Yes, bureaucracy in the UK is occupied by many people who are less competent, intelligent and experienced than their NZ counterparts. Hardly surprising really, as outside high echelons of major departments, the public sector pays NZ levels of salary.

The Labour Party, Greens and other parties who drink yard glasses of envy whenever they meet, like to berate the "rich", painting to those, like my South Island relatives, that those who are even moderately successful should have their wages pillaged to pay for the lumpen proletariat to have schools, superannuation and health care that frankly, they can't afford in the 21st century.

UK exporters can sell goods at a high price because they are perceived to be high quality - selling them in pounds sterling. It is about time New Zealanders stop aspiring to be selling lots of what is cheap to the world, and started selling what isn't. Most of the developed world doesn't worry about their higher exchange rates, if you aim high you can earn them too!

20 October 2008

Life's unfair


Green Party

Life's unfair - it's because heterosexual white men in suits are greedy and want everything for themselves, and "their system" means they can only get ahead by oppressing and exploiting others. If they had their own way they'd sell children, enslave women and treat all other races as slave labour too - Life can be made fair, if only you give us all the power we ask for, in the hands of the state, and we'll make it fair, we'll make sure it's fair.

Libertarianz

Life's unfair - it's reality, get over it - Life can't be made fair. Those who say it can be are trying to con you, and the only way they can try is by having more power over your life.

and all those in between?

Labour

Life's unfair - that's because periodically you elect the National Party, and they are greedy, want everything for their rich, foreign mates, and are only too happy to watch poor working class people, like us, work hard physical jobs for pitiful amounts of money while our kids go to school without shoes and breakfast. Life can be made MORE fair, by trusting in the Labour Party. Keeping us in government forever.

National

Life's unfair - that's because periodically you elect the Labour Party, and they are greedy, and want everything so that bureaucrats, unionists and others who don't know how lucky they are under National, can spend money willy nilly on doing everything wrong. They don't know the kiwi way, they weren't born to rule, we were. - Life can be made MORE fair, by trusting in the National Party. We'll see you right.

Maori Party

Life's unfair - that's because of British colonialism, which still exists and still applies, and denies the Tangata Whenua the wonders of the paradise civilisation of Aotearoa that existed before the imperialist genocide merchants arrived. The Labour Party have taken us for granted as well - Life can be made MORE fair, by giving us the chance to inflict impose use power trusted in us by the people.

NZ First

Life's unfair - It's all the bloody foreigners stealing our jobs, unreasonably paying market prices for our land, setting up businesses, contributing meaningfully to society and showing up half of us for the semi-literate knuckle draggers that we are. They trample on the elderly, run them over and steal their pensions, after all remember how those slanty eyed people were during the war - you can't trust them! - Life can be made MORE fair, give Winston a chance, again, for the third time. He's the reincarnation of Rob Muldoon, and he was fair.

United Future

Life's unfair - I left the Labour Party because it went leftwing under Helen Clark, I joined up with 6 other ex Labour and National MPs to be a real centrist party called United, and only I got elected in 1996. Again in 1999. Then I joined with some Christians and went in with Labour in 2002, then some left and I was down to three, now I think it will just be me. It's so unfair. I am the centrist party, the party that every coalition should live or die on - Life can be made more fair, vote for United Future!