We know that only 2.5% of Kiwis bought shares in Mighty River Power. English now talks of ‘tens of thousands’ buying Meridian shares. This ain’t no widespread ownership – it’s the few buying and the many losing ownership. So far, we’ve paid at least $100m for these sales. Yesterday, Key added $40m in interest-free loans to Meridian buyers.
National spent $30m of our money to save (some of) the 800 jobs at Tiwai Point (for an extra year). People have reasonably pointed out that’s the a lot of money – especially when government agencies are routinely destroying jobs by sending work overseas over contract prices that save far less. But what about the broader picture: did the Nats consider the opportunity cost?
Campbell Live last Wednesday focused on transport: funding & Auckland versus the regions; public transport & roads; the revolutionary Congestion Free Network plan. City Vision (supported by Labour & the Green Party – with a major focus on transport) & 2 Future West candidates launch their Auckland council campaigns.
It has been obvious that some people live in a different world than the rest of us. One where Chicago school economics, work! […]
So, Tariana Turia is finally dropping the pretense that Whanau Ora is anything but a scheme to privatise social assistance and put it in the hands of unaccountable private groups. Not content with funding family reunions and other bollocks, Turia is now handing the funding decisions to three private groups. Oh, and she doesn’t want them to be covered by the OIA.
I/S at No Right Turn on a $2 Billion Transmission Gully scam…
Our wonderful leader John Key is able to sell our assets, spend all the money and then some on his favourite projects, pay down debt and maintain our credit rating all at the one time. If you believe this there is a bridge that I would like to show you …
John Key’s u-turn on Auckland City Rail is all smoke, mirrors and sleight of hand stealth of the common good. Phil Twyford and the Auckland Transport Blog are skeptical. Funding? Roads over public transport? Asset sales?
The National Party are the good economic managers, right? So why are they spending money we don’t actually have yet?
The leaderless uprising in Brazil exposes unbearable inequalities in a dysfunctional post-growth world. Extravagant sports events and expensive stadium contrast with anti-public service austerity measures. Home building lags in Christchurch, while Key looks to asset sales to fund a stadium.
Blame beneficiaries, blame the young, blame the old, blame the boomers, blame Maori, blame Pakeha, blame granny, hell, why don’t we just blame […]
Mighty River closed at a new low of $2.36 yesterday. Here’s English on the likely take up of the sale of Meridian: “We would expect that it will give New Zealanders the opportunity to invest in a large New Zealand company, and tens of thousands of them are likely to do so.” Tens of thousands. For reference, they expected 250,000 investors in Mighty River but only 113,000 showed up.
As Naomi Klein said in the Shock Doctrine documentary, disorienting natural and economic shocks result in the wealth being shifted from “public hands” to the wealthiest. The wealth gap, and extent of poverty in NZ is increasingly & devastatingly marginalising good Kiwis. Meanwhile, Peter Jackson is flying high.
Last night The Shock Doctrine (2009) aired on Maori TV. John Key, and his cheerleaders have followed their latest series of shock-inducing attacks on democratic processes and (low income) people’s rights, with positive forecasts for our future. Meanwhile, the gap between the haves & have-nots has grown.
The myth that National sold Mighty River Power to ‘mum and dads’ is dead. New analysis shows that half the retail shares went to just 12,844 people. A tiny group of 394 people bought 10% of the retail shares. Only 13.4% of the company is owned by what you might call ‘ordinary Kiwis’ – less than the amount owned by foreign investors. But the truth is, ordinary Kiwis are the 98% who bought nothing.
Yesterday’s budget is a sop to affordable housing & aims to privatise state housing. Penny Hulse says the government’s related “housing accord” Bill is at odds with the agreement her council has not yet ratified. It overrides local democracy & endangers the AKL “agreement”. [Update] Waitakere News analysis
Hone Harawira challenged the Maori Party for its support of charter schools, at the expense of Maori and public education. He challenged Sharples to resign if today’s budget fails to adequately support kura kaupapa and the Manaaki Tauira programme.
Key and Joyce made sure Gilmore was out of the way before they announced their dubious Sky City for (more) pokies deal. The pokies system in NZ is rife with dubious goings on. It’s bad for low income families, communities and their children. [update: responses]
An article in today’s Sunday Star Times, provides evidence of an organised business in providing students with assignments for their tertiary education courses. The focus is on Chinese ethnicity. Ultimately, the blame for such rorts lies with the neoliberalisation of universities: the undermining of the critical endeavour of education.
The Nats’ spin is that ‘mums and dads’ were scared off investing in Mighty River Power by the Green-Labour NZ Power plan to reduce power prices but sophisticated buyers bought in. Look at the evidence: 80,000 of the 113,000 retail investors are new to the stockmarket and they boost stockmarket participation by 20%. Hence there were 400,000 existing Kiwi shareholders, and less than 10% of them bought in.
National admitted today that the sale of Mighty River cost around $100m, and that the paltry 2.5% of New Zealanders who bought an average of $8,000 each are not typical Kiwis. The figures themselves are shocking but the politics is really revealing. English didn’t try to avoid the unpalatable failure of asset sales, he was flippant. He is so out of touch he doesn’t see the problem.
Following the Labour and Greens’ rejection of their demand that the parties drop their NZ Power policy to lower power prices, the business elite has announced capital flight. ‘If Origin Energy loses its rentier profits, who’s next? said Phil O’Reilly, close to tears, ‘The banks? The Telecoms duopoly? The petrol companies?* The construction materials oligopoly? The ports and airports?
Supporters of the sale of the powercos, portray the Labour-Green NZ Power policy in terms of political strategy and game-play. They focus on the “market”, risk, profits & “fat cat hatred”. They avoid dealing with the guts of the issue: fuel poverty, income inequality & damaged lives.
Yesterday, Phil O’Reilly’s Business New Zealand basically declared war on Labour and the Greens. Their ‘open letter’ demanded opposition parties to withdraw the NZ Power policy or risk a capital strike. Unprecedented in modern NZ history. It was a boots and all attempt by the capitalist elite to try to monster the Left. It proves that they think NZ Power is both practical and popular.
To say Brian Gaynor is excited about the Mighty River sale is an understatement. Of his last five Herald columns, two have been about how great it will be, and two have been about how awful NZ Power is. His other media appearances have been in a similar vein: Mighty River = good, NZ Power = bad. It’s in his financial interests that investors aren’t scared off Mighty River.
A couple of people have questioned this series of posts outing the financial interests of supposedly ‘independent’ commentators who are coming out against the Green/Labour plan to lower power prices. ‘Everyone has links to everyone in New Zealand’. Maybe so, but not everyone is paid by the people whose interests they’re protecting while pretending to be independent in the msm.
An Advantage New Zealand conference at SkyCity is the centre of major PR for John Key-backed, big oil exploration in NZ. While promoting and backing each others’ destructive profiteering, and endangering NZ’s environment, they are nurturing their networks of influence over expensive dinners and on the golf course.
Aotearoa is Not for Sale is counting down to the National Day of Action this Saturday 27 April. Now is the time to support NZ (People) Power & say there are alternatives. Get your banners & placards ready, polish up your chants and slogans, and get ready to make some noise. [Update: added poster][Updated posting time to move it to the top today] Update – AKL photos]
So, John Key, Bill English, and Steven Joyce are now devoting all their energy into trying to stop the asset sales programme collapsing after the Greens and Labour gave notice the excessive profits are going to end, and National confirmed they’re for real by suspending the sale. While the government’s wasting its effort on that, real families are suffering.
The government announced about an hour ago, that it has suspended the share offer for Mighty River Power until tomorrow, while it devises a supplementary disclosure in the light of the Labour-Green NZ Power policy.
You know it’s getting near time to go.
In Saturday’s DomPost, Chelsie Preston Crayford shows what she thinks of John Key and asset sales.
Aotearoa is Not for Sale is counting down to the National Day of Action this Saturday 27 April. Some people have explained why they will be joining the Day of Action on Saturday. Why do you support action against asset sales? What are the alternatives? [Updated: details of actions around NZ]
It is absolutely essential for National that lots of ordinary Kiwis buy Mighty River shares. Is that why, as Rod Oram found, there’s no independent advice available to ‘mum and dad’ on the size of the risks? National must have such advice, but it’s keeping it from the public and beating the ‘buy, buy, buy’ drum instead.
The Key government and its allies are playing the “red scare” gambit, the Greens get to the heart of the reason for NZ Power, Parker goes Third Way, while Bernard Hickey and Matt McCarten weigh in to support the (alleged) “socialist” NZ Power policy. Bomber Bradbury adds some words of caution. [updated title]
John Key says that the Labour-Green Power policy is “barking mad” and will take people back to the power cuts of the 1970s. Another John Key brainfade, or just being “clueless”? I look at power cuts and fuel poverty since the 1990s.
Spooked by tomorrow’s joint announcement by Labour and the Greens on policy to cut power prices, National is trying to claim they have solved the problem. Get real. In the past year, household electricity prices rose an average of 5%, that’s over six times the rate of general inflation. By my reckoning, the average power bill has risen 16%, or about $300 a year under Key.
