You see I have friends who can't wait for this - they would make a fortune screwing public servants of money to do something none of them really understand. The key to getting the best value out of them is simply letting the private sector build something and charge people for using it, and bear the risks of overspending, poor customer service and lack of demand for the service - like the Melbourne Citylink toll motorway - a great success, because the private consortium that designed it, chose the route, bought the properties, built it and now operate it - were allowed to do so, albeit with enormous contracts and a legal framework to keep (excessive) oversight. In that case the road exists because the owners borrowed to pay for it, and use tolls to pay back the debt. You wont find too many PPPs quite that elegant.
PPPs make sense when governments want to hide borrowing they make. PPPs probably make sense in developing countries when they want to build infrastructure and don't have legal frameworks to readily allow private investment to be securely made. However, I am not convinced they are better than privatisation OR the state sector contracting out activities it isn't any good at.
Bill English is keen on public-private partnerships, the privatisation you have when you want to privatise profits and socialise the risks.
He waxes lyrically about how much it is done in Australia. Music to the ears of management consultants, lawyers and the big 4 accountancy firms all keen to have a slice of the expensive pies involved in setting them up. You see, precious few public servants have a clue about what to do, so a lot of your money would be expended on consultants to help them out. Given I know some of the people who would do this, it is pretty clear to me that the you better have a good reason to spend such horrendous amounts of money trying to match clever people in the private sector out to milk profits and minimise risks.
English lists sectors he clearly approves of being involved in PPPs. Lets go through them:
- Roads: Well quite simply there aren’t enough road projects in New Zealand big enough to be worthy of the transaction costs involved in a PPP. Far better would be to allow private companies to design, build, own, operate and toll roads with little government involvement at all, except interconnecting with existing roads. For example, the Auckland Harbour Bridge and the approaches from the Central Motorway Junction to as far north as Constellation Drive, could be sold – lock stock and barrel, it could have included the Victoria Park Tunnel project and the right to toll (and either refund road taxes spent using the road or pro-rata the payments to the company). THAT would have made a lot of sense and be a model for the rest of the country.
- Rail: Look it isn’t profitable. Unless you’re going to sell the freight business off, then this is just paying the private sector to manage a black hole. A PPP would be worse than the status quo.
- Water: Why not privatise? It has been successful in England, and has addressed serious deficits of core infrastructure. Besides, this is a local authority function. Private providers would encourage water conservation, because they would seek to maximise returns by charging what the market could bear.
- Energy: Given it is partially privately owned, why even think of a PPP? Contact Energy works, so lets just privatise the other three SOEs and Transpower.
- Defence: A core role of the state. Why would you allow anyone to profit from supplying property and managing national security? What happens if that PPP provider is sold to a foreign owner with hostile intent? Certainly you may contract the private sector to manage property or assist in advice, but supplying infrastructure?
- Hospitals: Again, why not just let private companies supply hospital capacity that you buy services from? Why sign up to a monopoly provider to guarantee its returns?
- Schools: As with hospitals.
- Prisons: As with defence. Management contracts and advice are all very well, but having the private sector responsible for incarceration has always worried me.
- Radio networks: Why own these at all? Radio New Zealand can hardly be privately run as a PPP given it makes little revenue, so why not just privatise it and let people pay for it voluntarily?
With that, and his ever bright and political popular ideas of a capital gains tax and reintroducing the land tax that Ruth Richardson abolished, is it any wonder that Bill English is starting to look like the Finance Minister we might have got had Labour been re-elected?
13 August 2009
11 August 2009
Don't give to Tearfund
Because it wastes your money hiring an intellectual minnow called Sara Shaw. She works for Tearfund (a Christian poverty relief charity) as "Policy Officer - Climate Change". I am sure that its money could be better spent hiring someone who can actually do some serious work in the developing world, rather than lead statist political causes.
She recently wrote this nonsense criticising the New Zealand Government's policy on climate change:
"Poor people, already being hit hard by climate change, have once again been disappointed by another developed country taking a weak and self-interested approach"
Hit hard by climate change how? No evidence, just part of the zeitgeist promoted by Shaw that climate change is happening, real and the poor are suffering because of it. Secondly, she claims to speak on behalf of poor people. Funny that, not being one herself, or even a member of parliament for any country. Thirdly, she criticises taking a "self interested approach", which of course poor people never do - they are always willing to sacrifice their lives for the greater good.
This follows from her earlier banality and economic illiteracy in promoting the faith based idea that by penalising "non-Green industries" and subsidising "Green ones", everyone wins. Not a shred of evidence or economics, just faith.
She presumably thinks she does great work to "save the world" and "help the poor", when she isn't doing a concrete piece of positive work in developing countries, for education, health or to improve infrastructure.
If she really gave a damn she'd be pushing for the European Union to abolish its Common Agricultural Policy, eliminate agricultural export subsidies, eliminate barriers to importation of agricultural products into the EU, and abolish domestic subsidies. That would make an enormous difference to farmers in developing countries, but no - she worries about climate change - a distraction from doing real good for people who are impoverished. She could campaign loudly and vigorously for good governance, the end to the corrupt kleptocracies that plague Africa and don't protect private property rights or have independent judiciaries.
However no, Shaw would much rather finger point, pontificate and preach, blaming the developed countries, and suffer the poor, ever patronaged, people in the developing world. She is chasing the ever illusion, the idea that destroying wealth creating industries will help the poor, and taking money from those who create wealth and give it to those who don't helps them too. There are undoubtedly charities that help impoverished people without being distracted by Green politics and agendas of economic illiteracy, big government and finger pointing rather than evidence.
Tearfund isn't one of them.
She recently wrote this nonsense criticising the New Zealand Government's policy on climate change:
"Poor people, already being hit hard by climate change, have once again been disappointed by another developed country taking a weak and self-interested approach"
Hit hard by climate change how? No evidence, just part of the zeitgeist promoted by Shaw that climate change is happening, real and the poor are suffering because of it. Secondly, she claims to speak on behalf of poor people. Funny that, not being one herself, or even a member of parliament for any country. Thirdly, she criticises taking a "self interested approach", which of course poor people never do - they are always willing to sacrifice their lives for the greater good.
This follows from her earlier banality and economic illiteracy in promoting the faith based idea that by penalising "non-Green industries" and subsidising "Green ones", everyone wins. Not a shred of evidence or economics, just faith.
She presumably thinks she does great work to "save the world" and "help the poor", when she isn't doing a concrete piece of positive work in developing countries, for education, health or to improve infrastructure.
If she really gave a damn she'd be pushing for the European Union to abolish its Common Agricultural Policy, eliminate agricultural export subsidies, eliminate barriers to importation of agricultural products into the EU, and abolish domestic subsidies. That would make an enormous difference to farmers in developing countries, but no - she worries about climate change - a distraction from doing real good for people who are impoverished. She could campaign loudly and vigorously for good governance, the end to the corrupt kleptocracies that plague Africa and don't protect private property rights or have independent judiciaries.
However no, Shaw would much rather finger point, pontificate and preach, blaming the developed countries, and suffer the poor, ever patronaged, people in the developing world. She is chasing the ever illusion, the idea that destroying wealth creating industries will help the poor, and taking money from those who create wealth and give it to those who don't helps them too. There are undoubtedly charities that help impoverished people without being distracted by Green politics and agendas of economic illiteracy, big government and finger pointing rather than evidence.
Tearfund isn't one of them.
Bullshit on right and left
Right wing bullshit
Well known is the inane bullshit promoted by some on the conservative right that Barack Obama's birth certificate is fake or not original or something of the like. It is a very sad sign of the Republican Party that too many of its own kind will latch onto this rather than argue the very valid points about Obama's policies. Arguing against his socialised healthcare and his "spend it up large and hope" big government economy boosting policy seems too hard. I am no supporter of Obama, but I am quite convinced that he was born in Hawaii. Those continuing to ride on this bandwagon will look crazier as time goes on, and show how little they truly have in cogent arguments against the man. It is like "we can't say he's no good because he's black, so we'll say he's not American instead". Mindless, conspiratorial rubbish. In fact, it is the sort of thing that should cost the anti-business, pro-big government halfwit, Lou Dobbs, his job at CNN. Dobbs has long campaigned against free trade, foreign investment, globalisation and conspired against China's economic success. I also guess none of these wingnuts wishes the constitution would be different to allow Arnold Schwarzenegger to stand for the Presidency?
Left wing bullshit
On the left is a New Zealand blog that prides itself on being fair, honest and open. No Right Turn is a blog I usually disagree with, but does make some well researched points from time to time. However, to characterise the stupid referendum on smacking (stupid because of the wording) as "New Zealand is voting on whether it should be legal for parents to punch children in the face or hit them in the head with a piece of concrete" is an outright lie.
That was never legal before, and is not legal now, and indeed despite the poorly worded referendum, smacking is NOT punching or hitting the head with concrete. However, it does show how some on the left use language to distort and lie, to get their own way. To demonise their opponents as grossly violent child abusers, rather than average parents who use mild smacking as correction.
Bear in mind I despise smacking, I despise corporal punishment altogether and wish it would never be used - I also despise criminalising those who use it mildly. It is NOT for the state to say that using force against children is wrong. It isn't. It is sometimes in their best interests to protect them (or others) from danger. Which is why I don't have a strong view on how to vote in that referendum. I don't believe smacking is "good parental correction", but I also don't believe it should be a criminal offence, unless it is repeated and physically damaging. I do not endorse the current law, but I equally do not endorse the view by many that smacking is a "good" thing.
So do I vote to endorse smacking, or do I vote to endorse an interfering state criminalising behaviour I don't think should be criminalised? Or do I abstain?
In that same article he cites a New York Times article that is quite disconcerting, about how some disabled children have been physically punished. That indeed is disturbing, but then to say "Just another example of what a cruel and barbaric place the US is". Of course, it really is, a barbaric place that millions try to flee, so much crueler than New Zealand, where all children are raised by loving parents who would never abuse their kids.
Funny how he has never ever blogged about the gulags that keep children as slave labourers in North Korea. He wouldn't, of course, endorse that at all, but why do these Nazi style concentration camps, with summary executions, rampant torture, incarcerating entire families from elderly to babies as political prisoners, NOT get the same passionate attention as does the torture of Islamists in Guantanamo Bay?
Imagine if the political left actually starting protesting on a grand scale about this atrocity. Oh what government does the North Korean regime condemn the most? The USA - guess they are not all that bad then, right?
Well known is the inane bullshit promoted by some on the conservative right that Barack Obama's birth certificate is fake or not original or something of the like. It is a very sad sign of the Republican Party that too many of its own kind will latch onto this rather than argue the very valid points about Obama's policies. Arguing against his socialised healthcare and his "spend it up large and hope" big government economy boosting policy seems too hard. I am no supporter of Obama, but I am quite convinced that he was born in Hawaii. Those continuing to ride on this bandwagon will look crazier as time goes on, and show how little they truly have in cogent arguments against the man. It is like "we can't say he's no good because he's black, so we'll say he's not American instead". Mindless, conspiratorial rubbish. In fact, it is the sort of thing that should cost the anti-business, pro-big government halfwit, Lou Dobbs, his job at CNN. Dobbs has long campaigned against free trade, foreign investment, globalisation and conspired against China's economic success. I also guess none of these wingnuts wishes the constitution would be different to allow Arnold Schwarzenegger to stand for the Presidency?
Left wing bullshit
On the left is a New Zealand blog that prides itself on being fair, honest and open. No Right Turn is a blog I usually disagree with, but does make some well researched points from time to time. However, to characterise the stupid referendum on smacking (stupid because of the wording) as "New Zealand is voting on whether it should be legal for parents to punch children in the face or hit them in the head with a piece of concrete" is an outright lie.
That was never legal before, and is not legal now, and indeed despite the poorly worded referendum, smacking is NOT punching or hitting the head with concrete. However, it does show how some on the left use language to distort and lie, to get their own way. To demonise their opponents as grossly violent child abusers, rather than average parents who use mild smacking as correction.
Bear in mind I despise smacking, I despise corporal punishment altogether and wish it would never be used - I also despise criminalising those who use it mildly. It is NOT for the state to say that using force against children is wrong. It isn't. It is sometimes in their best interests to protect them (or others) from danger. Which is why I don't have a strong view on how to vote in that referendum. I don't believe smacking is "good parental correction", but I also don't believe it should be a criminal offence, unless it is repeated and physically damaging. I do not endorse the current law, but I equally do not endorse the view by many that smacking is a "good" thing.
So do I vote to endorse smacking, or do I vote to endorse an interfering state criminalising behaviour I don't think should be criminalised? Or do I abstain?
In that same article he cites a New York Times article that is quite disconcerting, about how some disabled children have been physically punished. That indeed is disturbing, but then to say "Just another example of what a cruel and barbaric place the US is". Of course, it really is, a barbaric place that millions try to flee, so much crueler than New Zealand, where all children are raised by loving parents who would never abuse their kids.
Funny how he has never ever blogged about the gulags that keep children as slave labourers in North Korea. He wouldn't, of course, endorse that at all, but why do these Nazi style concentration camps, with summary executions, rampant torture, incarcerating entire families from elderly to babies as political prisoners, NOT get the same passionate attention as does the torture of Islamists in Guantanamo Bay?
Imagine if the political left actually starting protesting on a grand scale about this atrocity. Oh what government does the North Korean regime condemn the most? The USA - guess they are not all that bad then, right?
Nanny State UK - stop wasting food!
Never content with letting people make their own choices, waste food and money if circumstances allow it, the UK Department for Environment, Food and Rural Affairs is calling for supermarkets to cease " 2 for 1 " deals that it says encourage people to buy more food than they need.
At what point do people in the UK tell these vile little finger pointers to royally fuck off and mind their own business?
Apparently it costs the average household £420 a year in food that it throws out. To which I say, so bloody what? How many households buy clothes they rarely wear? How many people buy a book they never read? In other words, who the hell made the state the guardian of waste like some sort of lemon sucking protestant ascetic during the war?
The Times reports "Households throw away 4.1 million tonnes of food each year that could have been eaten if it had been managed better, according to Wrap, the Government’s waste watchdog". Waste watchdog? Hardly, Wrap IS a waste - it is a waste of something people DON'T choose to spend money on and throw away, their own money.
Furthermore, the state continues to treat people as idiots and they respond in kind "Defra and the Food Standards Agency are also preparing new guidance to reduce confusion about date labels on food. Wrap research found that millions of people did not know the difference between “sell-by” and “use-by” dates". So bloody what? So there are people who are either illiterate or stupid. It's THEIR problem, it isn't everyone else's.
Fortunately, the retail sector has some courage and will resist the moves:
"The British Retail Consortium said it would resist attempts to restrict bogofs. “Retailers know their customers better and should be allowed to decide what’s the best policy,” a spokesman said. People who took home more than they could eat should give it to family and friends, he added."
You might hope that a Tory government would reverse the endless screed of "do what we say" parenting by the bloated state here in the UK - but with Shadow Chancellor of the Exchequer George Osborne already saying there will "have to be tax increases" to cover the budget deficit, I hold precious little hope. The party of Margaret Thatcher is long gone.
At what point do people in the UK tell these vile little finger pointers to royally fuck off and mind their own business?
Apparently it costs the average household £420 a year in food that it throws out. To which I say, so bloody what? How many households buy clothes they rarely wear? How many people buy a book they never read? In other words, who the hell made the state the guardian of waste like some sort of lemon sucking protestant ascetic during the war?
The Times reports "Households throw away 4.1 million tonnes of food each year that could have been eaten if it had been managed better, according to Wrap, the Government’s waste watchdog". Waste watchdog? Hardly, Wrap IS a waste - it is a waste of something people DON'T choose to spend money on and throw away, their own money.
Furthermore, the state continues to treat people as idiots and they respond in kind "Defra and the Food Standards Agency are also preparing new guidance to reduce confusion about date labels on food. Wrap research found that millions of people did not know the difference between “sell-by” and “use-by” dates". So bloody what? So there are people who are either illiterate or stupid. It's THEIR problem, it isn't everyone else's.
Fortunately, the retail sector has some courage and will resist the moves:
"The British Retail Consortium said it would resist attempts to restrict bogofs. “Retailers know their customers better and should be allowed to decide what’s the best policy,” a spokesman said. People who took home more than they could eat should give it to family and friends, he added."
You might hope that a Tory government would reverse the endless screed of "do what we say" parenting by the bloated state here in the UK - but with Shadow Chancellor of the Exchequer George Osborne already saying there will "have to be tax increases" to cover the budget deficit, I hold precious little hope. The party of Margaret Thatcher is long gone.
2 degrees wants more government help
Remember I posted that 2 degrees started with an advantage over Telecom and Vodafone? Well it’s becoming more clear that 2 degrees isn’t interested in competing on a level playing field. No. It wants the government to make life easier for it by forcing its competitors to charge less than they are willing to access their networks. According to NZPA it has a "Drop the Rate, Mate" campaign, which isn't as friendly as it sounds - it wants the government to use force to help its business out.
It wants mobile termination rates (which Vodafone never had regulated in the 17 years it has competed with Telecom) to be regulated because it thinks the cost is too high. Not that it would know since it isn’t interested in building much of a parallel network to the two major players, it never has been. 2 degrees, like Vodafone (when it was owned by BellSouth in the beginning) has few customers, so as a result it pays other mobile phone operators more than it receives in kind.
In fact I recall not long after BellSouth entered the New Zealand market, the CEO of Bellsouth (USA) visited New Zealand, and demanded from the then Minister of Communications (Maurice Williamson) that he regulate Telecom so BellSouth could get a fair share of the market. Williamson told him politely that New Zealand is not the United States, you can’t get politicians to do your bidding in New Zealand as easily as he thought, that BellSouth knew the regulatory environment when it invested and so should actually get out there and compete on its merits. Within a couple of years BellSouth, having underinvested in the network, and done little to attract new customers sold the business to Vodafone, which has been a roaring success.
However, after nearly 9 years of Labour intervening and regulating in the telecommunications sector, 2 degrees isn’t interested in competing on merit, but using the state to give it a hand up – again.
It has former blogger and centre-left (well he is now) journalist Matthew Hooton to do its PR. Moreso it has an interesting ragtag mob of supporters. Consumer New Zealand has always supported regulating producers, so no surprise there. TUANZ is pretty much the same, always using never producing. NZUSA has long been a platform for socialism and the Federation of Maori Authorities has a corporate interest, as it owns the frequencies (thanks to the last Labour government) that 2 degrees uses. However, Federated Farmers is an odd one. I am sure in the interests of fairness, Federated Farmers might agree to the prices of all of its commodities to be reduced so that consumers can pay less for food and woollen items.
Steven Joyce should tell them the same as Maurice Williamson. Go away and compete. 2 degrees already has an advantage in that it didn’t pay a market price for its frequencies, it already doesn’t need to build the infrastructure of Vodafone and Telecom because it is reselling their capacity (by voluntary agreement). Grow up and move on. The last Labour government agreed, it should be a swift dismissal by Joyce.
"Mr Hooton said the new minister would face "ferocious corporate lobbying"." with apparently a large campaign, which wont be cheap, spent on lobbying - money presumably that could be used to build more of a network so less termination charges could be paid.
So, it is pretty clear 2 degrees is NOT a normal private enterprise, but one that seeks to make money through government favours. It would rather waste money engaging in currying favour with government than to build a network so it would need to pay less to its competitors (or indeed to negotiate with its competitors for better rates).
It's a company that believes in using force to get its own way, a company that I don't believe is moral to support.
It wants mobile termination rates (which Vodafone never had regulated in the 17 years it has competed with Telecom) to be regulated because it thinks the cost is too high. Not that it would know since it isn’t interested in building much of a parallel network to the two major players, it never has been. 2 degrees, like Vodafone (when it was owned by BellSouth in the beginning) has few customers, so as a result it pays other mobile phone operators more than it receives in kind.
In fact I recall not long after BellSouth entered the New Zealand market, the CEO of Bellsouth (USA) visited New Zealand, and demanded from the then Minister of Communications (Maurice Williamson) that he regulate Telecom so BellSouth could get a fair share of the market. Williamson told him politely that New Zealand is not the United States, you can’t get politicians to do your bidding in New Zealand as easily as he thought, that BellSouth knew the regulatory environment when it invested and so should actually get out there and compete on its merits. Within a couple of years BellSouth, having underinvested in the network, and done little to attract new customers sold the business to Vodafone, which has been a roaring success.
However, after nearly 9 years of Labour intervening and regulating in the telecommunications sector, 2 degrees isn’t interested in competing on merit, but using the state to give it a hand up – again.
It has former blogger and centre-left (well he is now) journalist Matthew Hooton to do its PR. Moreso it has an interesting ragtag mob of supporters. Consumer New Zealand has always supported regulating producers, so no surprise there. TUANZ is pretty much the same, always using never producing. NZUSA has long been a platform for socialism and the Federation of Maori Authorities has a corporate interest, as it owns the frequencies (thanks to the last Labour government) that 2 degrees uses. However, Federated Farmers is an odd one. I am sure in the interests of fairness, Federated Farmers might agree to the prices of all of its commodities to be reduced so that consumers can pay less for food and woollen items.
Steven Joyce should tell them the same as Maurice Williamson. Go away and compete. 2 degrees already has an advantage in that it didn’t pay a market price for its frequencies, it already doesn’t need to build the infrastructure of Vodafone and Telecom because it is reselling their capacity (by voluntary agreement). Grow up and move on. The last Labour government agreed, it should be a swift dismissal by Joyce.
"Mr Hooton said the new minister would face "ferocious corporate lobbying"." with apparently a large campaign, which wont be cheap, spent on lobbying - money presumably that could be used to build more of a network so less termination charges could be paid.
So, it is pretty clear 2 degrees is NOT a normal private enterprise, but one that seeks to make money through government favours. It would rather waste money engaging in currying favour with government than to build a network so it would need to pay less to its competitors (or indeed to negotiate with its competitors for better rates).
It's a company that believes in using force to get its own way, a company that I don't believe is moral to support.
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