Chart o’ the day: maybe we should buy back our shit
assets
privatisation
ACC privatisation plans announced
National has announced plans to privatise ACC’s work account. Currently, they don’t have the numbers to get it through the House. ACT won’t vote for it because its not completely rabid and the Maori Party won’t vote for privatisation. So, this becomes another election issue: another bloody good reason to vote National out.
Smith to announce ACC privatisation
Labour’s Chris Hipkins has the inside word: On Wednesday this week, Nick Smith is going to announce what amounts to the effective privatisation of a large part of ACC. You won’t hear the word privatisation uttered from his lips, he’ll use all sorts of other words like ‘competition’ and ‘market discipline’, but privatisation it will be.
“Mum and Dad investors”
No Right Turn on National’s spin about “Mum and Dad investors”.
Vote Key, get asset sales
Based on the Herald’s latest poll, that is a message the Left will be well advised to push hard. The poll shows 62% opposition vs 29% support for asset sales, while NACT polls at 56%. So, at least 18% are prospective NACT voters AND oppose Key’s main policy. The Left can win over many of these people on this vital issue.
Labour’s new online game
Labour’s new online game is hilarious. Choose whether or not to take the options presented and see the results. Politics is all about choices
So much for seeking a mandate
Remember when John Key was promising that he would seek a mandate from the people at the election before starting to sell public assets and cutting Kiwisaver. It was only a week ago. And he’s breaking his promises already: the Kiwisaver cuts actually kick in on July 1, and the privatisation process is underway.
Key’s dodgy scheming
*Key says that we will get to vote on his Kiwisaver cuts in the election. Truth is, they passed the law last week and the tax credits are cut from July 1. *What’s up with the dodgy Kiwibank numbers? Plans for sale? *The govt is importing World Cup workers while 270K are jobless. *Key’s jokes falling flat with pissed off voters.
Take control
It matters not who owns a thing, what really matters is “who controls it” . We have been watching our house being burgled for to long haven’t we? We seem to forget we are still in control of this country, and we the people need to get back that control, the control of our parliament, that belongs to us!
So where’s the plan?
Not in John Key and Bill English’s third budget. The ‘good times’ they are promising would have looked pitiful under Labour. 4% wage growth will be below inflation once the Kiwisaver clawbacks get you. National have pinned their hopes on Christchurch rebuilding itself, and claiming the credit for themselves. Oh, and their projections assume asset sales.
Our water for sale?
Colin James tips National’s plan for our water: ” a Crown company like that for ultra-fast broadband fibre-laying, capitalised from the proceeds of selldowns of state-owned enterprises and operating in public-private partnerships to get projects under way and then sell them on to farmers. Now where does China fit in that?”
Sounds like one disaster after the other. Decisions after the election of course.
A correction
I’ve long held to the principle of owning your mistakes and as such I’ve gotta say I was wrong about one aspect of the “stop asset sales” campaign – the signs are authorised.
Winnie’s big chance
The TV3 poll has the NACT vs Lab/Green/NZF gap at 22% vs 9% in the latest Roy Morgan. I’ll tend to pay attention to the company that polls every fortnight to the one that polls once in a blue moon. Nevertheless, the story of both polls is the same: Labour struggling to make headway + Nats potentially with a majority = opportunity for Winston Peters
Stop asset sales
No ambition for New Zealand
National came to power promising to close the wage gap with Australia. Not only have they failed to fulfill that promise but Bill English now portrays it as a good thing. His appearance on Q+A yesterday only confirms how out of touch National is: determined to sell our assets for no good reason, against our will, and happy with our low wages.
Nice to have
The PSA is the frontline in our fight against National’s plans to savagely cut our public services. Much in the same vein as the sticker campaign that Eddie posted on yesterday, the PSA has used humour to get across an incisive message: what the rich elitists in National consider ‘nice to have’ is very different from what we value.
IMF: Neo-liberalism dead
This post is largely by the head of the IMF. “[T]he pendulum will swing … from the market to the state,” Mr Strauss-Kahn says, “The benefits of growth must be broadly shared, not just captured by a privileged few … the invisible hand must not become the invisible fist.”
Economy
The economy, shall we say politely, is facing some difficulties. With a National government there was no plan as to how to weather the economic storm, we just got tax cuts for the rich and an economy that just can’t get growing.
The Shock Doctrine
I’m really pissed off that politics has come into the Christchurch earthquake so quickly. But make no mistake, the Nats are pursuing a strongly ideological agenda. They’re using the quake as cover for radically cutting important policies and making other extreme decisions, while preserving the tax cuts for the rich. It’s called the Shock Doctrine.
2 to 1 against privatisation
Kiwis are strongly against selling our public assets. National’s policy is opposed by 60% and supported by just 30%. That’s more opposition than the mining proposal. There’ll be no back-down from the Nats – pillaging the State is a core reason for them wanting power. On these numbers, it may lose them the election.
S&P says no need for cuts, asset sales
As you know, National has been trying to justify selling off our assets and cutting our public services to pay for tax cuts for the rich by saying that debt is at dangerous levels and we risk a credit downgrade. Numerous commentators have shown that’s false. Now, the final nail in the coffin has come from credit ratings agency Standard & Poor’s.
Not for sale – first flyers
To avoid another three years of backhanders to the rich, falling wages, rising unemployment, and asset sales, we have nine months to chip away at National’s support. As in 2008, The Standard will be running a campaign offering flyers etc for your to print off and deliver around your neighbourhood. Privatisation is an obvious first target.
The best they’ve got?
Today’s Herald contains the first unequivocal defence of National’s plan to sell our assets to pay for tax cuts for the rich. It’s disappointing to say the least – confused, piecemeal, and unconvincing. Ironically, it’s written by some guy from an insolvency company – ie. someone who makes money from cleaning up after others’ poor business decisions.
Fallow latest to slay privatisation arguments
Brian Fallow has put the nails in the coffin of the Nats’ privatisation arguments. His column goes through the excuses that National has come up with for selling the family silver and none of them stack up. Nor does Key’s ‘money-go-round’ where the state-owned Cullen Fund buys these state-owned assets to free up cash for the state.
News round-up
*English vs English on assets sales, as business commentators come out against the flawed business case for privatisation. *Will Hide honour his word and resign over Supercity debacle? *Foreshore Bill to join CERRA as a constitutional outrage. *Economic woe keeps coming. *Is the ‘brighter future’ on its way or just more Key stunts?
Tuku wades in again – same result?
There are some interesting legal and constitutional parallels between the Maori party’s attempts to rid themselves of Hone Harawira and previous unsuccessful attempts […]
Simmons destroys asset sale talking points
The kneejerk righties have praised John Key’s plan to sell our public assets (indeed, the Herald seems to be calling for something far more radical in today’s editorial) but all the substantive analysis of the proposal continues to show it’s an ideologically-driven rip-off. Here’s Geoff Simmons’ take.
Testing Key’s $33 billion line
One of John Key’s excuses for selling our SOEs is that we need the cash to buy $33 billion of new assets over the next 5 years. Sounds like a lot, eh? It turns out the Crown spent $42 billion on new assets* over the last 5 years without selling our SOEs and even with that $33 billion of new capital spending the deficit will be gone in 4 years … I wonder what Key’s next line will be.
Contact Energy: A Case Study
We could look at bailed-out TranzRail and Air NZ, with privatisation leading to risk-free pay-outs for the temporary owners of infrastructure that couldn’t be allowed to fail. Or Telecom that doesn’t look out for NZers interests, and needs us to pay for it to build us a fibre network. But let’s look at the “success” story of Contact, the closest privatisation to National’s new plans.
Selling assets to pay for tax cuts for richest 1%
John Key, very optimistically, reckons he can raise $10 billion by selling our assets. Key’s Government gave massive tax cuts, averaging $16,000 each, to the richest 1% of taxpayers that they’ll get year after year. The present value of those tax cuts for the richest 1% is over $10 billion. He’s selling our assets to pay for tax cuts for the richest 1%.
Debt an excuse for enriching the elite
In 2008, John Key’s line was ‘New Zealand doesn’t have a debt problem, it has a growth problem’. In Budget 2010, he said the Crown would be back into surplus in record time. In December, he said debt wouldn’t force a downgrade. Now, he says debt is such a problem we need to slash and sell. When did he mean what he said? Never. It has never been about debt.
Slash & sell … then crash
Ironically, the best response to Key’s ‘slash and sell’ agenda came from Obama, whose spotlight Key is always trying to share: “Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may feel like you’re flying high at first, but it won’t take long before you’ll feel the impact.”
Political “courage”
Just what is this political “courage” the Herald speaks of?
Nats start the election campaign
Halfway through last year I suggested we’d see a July election as National raced to lock in a second term before their numbers fell.
I reckon that’s exactly the strategy we’re seeing today. The tories know that their numbers are only going to go down this year as their policies bite so they’ve decided to put the pedal down.
6 quick reasons why asset sales suck
While we’re all eagerly awaiting Tracy Waktins et al’s reviews of John Key’s controversial decision to wear a mauve tie in his state of the nation speech, I thought I would look at some of the reasons why asset sales are such a stupid idea.
The Sell-off Begins
So John Key’s great bit of policy for the election is to sell off the family jewels. Generations of New Zealanders have built up these assets, and now, like in the 90s, National intend to flick them off to foreign investors, and drain the country’s wealth.