10 November 2008

World weirdly thinks National/ACT is conservative

so says CNN, so think how little you really learn about other countries from such media, when it gets this all so wrong.

Imagine a US party leader who was atheist, who led a party with openly gay members, which doesn't have a party position on abortion and who had a previous leader who was a woman who went along to a gay parade.

Funny how ACT isn't mentioned either - too hard for them to comprehend?

CBS does it too because both relied on a rather poor Associated Press article.

The Observer calls it conservative too

The BBC does a reasonable job though

The Times has an odd article with assertions like: "He surprised many when he took over the leadership of the party in 2006, after his predecessor Don Brash led National to a humiliating defeat." Who did he surprise? How was Brash humiliated taking the party from 22% to 38%? Although much of the rest of the article is quite good.

The Independent describes John Key as "a baby-faced former currency trader" but the word conservative is for "two small conservative parties, ACT and United Future". It gets it wrong twice saying "National and its allies had secured 59 seats in the 120-member parliament"

Helen Clark's foreign job?

There is another country with an ailing leader, for whom Helen Clark would provide strong leadership and be right wing.

Her anti-nuclear credentials would be put to good use, and she'd having nothing to do other than liberalise and get rid of the nuclear arsenal.

It has mountains she can climb too.

I'm not a cruel man, and the idea is rather fanciful, but if she wants to really make a contribution to peace it would be helping this tragic basket case of a country to reform.

The excuse a few on the left will use

Low turnout.

Yet Barack Obama didn't achieve 78% and his victory was somehow legitimate.

Time to take some morphine for sore losers. Under MMP voters had a vast choice, let's consider what all the parties stood for:

Labour - status quo
National - status quo with minor changes and a new team
Greens - leftwing environmentalism
New Zealand First - conservative nationalism
ACT - freer market economics and a cap on government
United Future - something between Labour and National
Progressives - something between Labour and New Zealand First
Maori Party - anything that advances Maori but something between New Zealand First and the Greens depending on who you talk to
Kiwi Party - something between United Future and New Zealand First with a Christian based moral tinge
Family Party - evangelically led Christian theocracy
Bill and Ben Party - having fun and a bit of a joke while voting
ALCP - Legalise cannabis then we disband
Pacific Party - Polynesian based Christian morality
Alliance - socialism
Democrats for Social Credit - lunatic theory on money combined with conspiracy theorists
Libertarianz - individual freedom
Workers Party - communism
RAM - socialism mixed with lunatic conspiracy theorists
Republic of New Zealand Party - Farewell Your Majesty

Now there is no excuse that there isn't a choice, unless you're a Nazi, Islamist or Hindu nationalist perhaps. Indeed, the likelihood of a National led government has been pretty much on the cards for the last year or so, so if the lumpen proletariat didn't like it, they could have voted. The people have spoken - and an overwhelming majority voted against a Helen Clark led government. A majority of voters voted for a government including National or ACT.

They won, you lost, eat that.

Dear Rodney Hide

Well done Rodney, you're now the best hope (with your team) to be the conscience of the incoming government. You did better because National did "me too" far too much, and now you've brought Sir Roger Douglas back to Parliament. John Key needs you, and you want him to need you instead of the Maori Party. So, the next three years are a chance to do what Helen Clark fears, and to lead John Key down a path of reform that is meaningful.

Firstly make it clear that you will only accept a coalition agreement if you get one Cabinet and one outside Cabinet position. Sir Roger Douglas needs to have a special role, because he is too valuable to not use. Your vote partly came from people wanting him to form a part of this government, he has more experience with economic crises than the rest of you combined, him having a role should be a bottomline.

Secondly, make it clear you will support Peter Dunne as Speaker, but not in Cabinet. If a party that gets 0.9% can get a Cabinet position then all your MPs deserve one. Remember Dunne brought us the Families Commission, and that should go.

Here are some ideas when you see John later today:

1. Education. Your policy on scholarships is radical for National, but it was the policy for National back in 1987. Grab this with both hands and make it a bottom line to change education. It means taking on the unions, who are blatantly self interested and will blackmail you all with doomsday scenarios and industrial action, so it needs to be done with extraordinary planning. Go with John Key to Stockholm, sell it to him and talk about what can be done. This will have a far more profound long term impact than almost any other policy.
2. RMA. Yes your policy isn't about getting rid of it, but you understand the problems more than Key. Insist that Nick Smith doesn't get his dripping wet hands on this. He is a Green Party member in drag. The RMA needs a bottom up review as to why such legislation is even needed, and how private property rights should be at the centre of planning policy (if it must exist).
3. Local government. Yes you could have this portfolio, National hasn't a clue on this, you do. It's time to put caps on rates, to repeal the power of general competence and to require water and roads to be in arms length entities. The left's second front is in local government, you can already see the ARC holding National to ransom about electrifying Auckland's rail network.
4. Law and Order. You see eye to eye on this, and three strikes and you're out is a great policy in principle. However, you do need to do a couple of things to stop it all getting worse:
i. Refuse to support a DNA database of all those arrested for imprisonable offences. Restrict it to those convicted of violent and sexual offences. The innocent should not be under surveillance.
ii. Refuse to support "three strikes and you're out" for drug offences and other victimless crimes. Make the "liberal party" slogan mean something, and ask for a review of criminal law with the point of identifying victimless crimes.
5. One law for all. Now you wont get rid of the Maori seats, National just wont do it, but you can address funding and government that is racially based. You could suggest a threeway dialogue between National, ACT and the Maori party to handle this issue, both in terms of reality and perception.
6. Getting rid of useless bureaucracies. Produce a list of departments and agencies that could go. The Families Commission would be a good start, but the Office of the Commissioner for Children should follow. Get Sir Roger to help out, and invite John Key to nominate a couple of Nat MPs to do the job.
7. Tax cuts. Support John Key's tax cuts with one addition, farewell to the 39% top tax rate. It is Labour's envy tax, a tax on the successful, a tax on New Zealanders who would return from overseas, and it has to go at the same time as the other cuts. Yes the left will whinge and say tax cuts for the rich, but remember what "rich" means now.
8. Welfare. National said it would do a little to reform this, it's time to do a little more. Talk to Lindsay Mitchell about the DPB and steps to take to drastically curtail the criteria for claiming it, for starters no more money for additional children whilst on it.
9. Trade. As I said to John Key, he, Tim Groser and perhaps Sir Roger should all go to Washington after Barack Obama's inauguration (and then London and Brussels) to demand a rethink of global trade. That means taking on Obama's protectionist instincts and pushing for a revitalised WTO round. This is critical, make the case before the portcullis of Democratic Party protectionism shuts down hope of an open trading market for agriculture.
10. ETS. You know you need to demand a rethink here. Yes New Zealand is in Kyoto, but it need not lead the way, it's time to renegotiate and consider how best to meet NZ's national interests. A carbon tax is NOT the way, but strangling this close to bottom of the OECD economy will not see you thanked by voters.

Good luck, it's the best chance New Zealand has in the next three years to move forward.

National's first chance to pause a Labour pet project

Rail electrification in Auckland. The leftwing dominated ARC is dying for the incoming government to pay for this, with the regional petrol tax the outgoing government voted for. The NZ Herald suggests National would pay for it, I think the incoming government should get a full briefing on the economic and fiscal position before committing to it.

So whilst I'd just kill it in its tracks so to speak, here is a starting point for John Key:

1. Demand a full economic benefit/cost of the project to be independently commissioned by The Treasury, requesting data from the ARC and other Auckland councils, with support from the NZ Transport Agency and MOT. It should highlight clearly:
- Total project capital costs including optimism bias not identified by ARC, and contingency risk.
- The total operating subsidy expected after the project is completed, on a per passenger basis. Compare this to the subsidy per average bus passenger.
- What proportion of new patronage is expected to come from existing bus passengers, existing cyclists and pedestrians, existing motorists and people making new trips they otherwise wouldn't have done.
- The proportion of those costs that ARC is prepared to pay for and what it expects central government and the new petrol tax to pay for.
- The economic value of travel time and vehicle operating cost savings that motorists will gain from the project, and any reductions in public transport subsidies. This should be a range based on a host of sensitivity tests. In other words, will this reduce congestion?
- The counterfactual. What happens if this does not proceed? What more cost effective alternatives exist? This includes buses, and reforming road governance and pricing.

Auckland wont fold if this project is delayed a year, but you do need a decent view on why congestion exists in Auckland, and it isn't because there isn't an electric railway.

Meanwhile, scrap the regional fuel tax - that will help give the economy a boost, ACT should support you on this, and say that as part of the wholesale review of government spending, central government funding of railways will be put on hold beyond that contractually committed.

By the way John, send whoever your incoming Transport Minister will be, with Bill English on a fact finding tour of the USA to see how little difference urban rail projects have done there in relieving congestion, and how much money they have cost. It might give you a new insight on how to deal with Auckland local government - you might wonder why you should listen to the ARC at all given its wholesale acceptance of the Green Party dogma of railways and Smart Growth.

So while I would scrap it John, at least suspend it - let your government get officials and consultants not involved in promoting the project to review it with tight terms of reference - get the facts about how what real value this will provide.