Thursday, March 27, 2008

Labour's Secret Tax Ripoff

Over this past nine years, coincidentally the same nine years in which Clark's disastrous Labour gummint has been in charge, Meridien Energy has passed to this gummint a whopping two billion dollars by way of interim, final and special 'dividends.'
Ali Baba

Well hello?????

These dividends were funded by our ever increasing power bills and they are in fact a defacto tax amounting to around $500 for every man woman and child in the land.

Is this the same Meridien Energy which has failed to build new generating capacity to meet our growing energy needs as we energetically claw our way further down the latter of OECD prosperity?

If these 'dividends' had been retained, as they should and used to fund capital borrowings then we could have had $3 billion dollars worth of clean green efficient north island nuclear power plants up and running since maybe 2003.

Then you would'nt need to pollute the Waikato with grotesque power pylons.


Anonymous said...

Cullen's offering $20 a week

Key about $200

which will you pick?

PM of NZ said...

Claw?? Freefall more like it. The bottom is coming up in November at the latest.

With modern technology these days, I often wonder just how little waste product does such a green and clean 'N' plant produce?

When I look with awe at the great big yellow 'N' power plant in the sky, I always wonder when are we going to replicate a controlled version of that here on planet earth?

KG said...

In today's news I see the Brits are about to embark on a huge program to build more nuke power plants.
Are they doomed?
According to Helen and co they are.

Anonymous said...

Cullen completely misses the point

of course serious tax cuts can't be afforded without public "service" cuts

what needs to happen is to cut the service to the bone!

For every one of the 20,000 Kiwis going to Aussie this month, they get: no dole, no healthcare, no free education... that is what people want

Cut NZ provision down to that matched by Kiwis in Australia - then cut the tax rates to match.

Sounds like good National policy to me!


Thanks for the reminder Adolf.
It's good that you pick out the 42 billion Meredian has paid to the government.
This and other facts might have got lost in my lengthy post yesterday on how government is imposing further costs on us all.
Stuff's Bernard Hickey takes the clear example of power prices, giving Meridian as an example of state-owned extortion.
yet, look elsewhere and it is the same story.
Liarbour's interventions have simply pushed up prices making us all the poorer.

Here's what he said the other day on Meridian Energy.

Meridian Energy, which owns the big hydro schemes in the South Island that generate 30% of our electricity, has reported an increase in its profit before tax, depreciation and interest charges to $253.7 million in the six months ended December 31. This is up from $245.7 million in the same period a year ago.

Meridian announced it was paying a regular interim dividend payment of $60.9 million and a special dividend of $175 million, bringing total dividends for the half year to $235.9 million or 93% of profit before tax and interest. This brings total dividend payments to the government since Meridian’s formation in 1999 to $2.1 billion. That goes straight into the consolidated fund.

To be fair, Meridian is investing in a big new Wind Farm on the coast near Makara at Wellington and recently built the Te Apiti wind farm in the Manawatu. But just imagine what it could have done with that $2.1 billion if it chose to reinvest in new generation. Or imagine how much lower prices might have been if they had simply charged us all less.


$2 billion to the government

DenMT said...

Adolf, without wanting to be a killjoy, your suppositions are wildly optimistic. What fraction of a nuclear power station can you build for $3 billion? And do you know how long they take to come on stream?


Spam said...

I guess Labour will argue that if they didn't get the dividend from Meridian, there would be a smaller surplus, no scope for tax cuts, or even a need to raise taxes.

A pretty sophisticated "churn".

scrubone said...

When you consider that many of the price increases of the past years were specifically said to be making new generation affordable and economic, this money is clearly being "misplaced" if it's going to Cullen.

Anonymous said...

More to the point, why on earth does NZ need NUKE plants.

NZ has an almost infinite source of very cheap, easy to find, easy to use energy, in plants that can be built for a fraction of $2 Billion.

In fact, $2billion should be enough to ensure NZ's energy independence for good - if we wanted to spend on it:

* coal fired power plans

* Rob's Synfuel plant run by coal-fired electricity.

And that is the commonsense solution to NZ's energy needs - one that is very competitive on world markets, especially with Australia.

Sure Nuke power is cheaper than wind or solar, (more expensive than hydro) but coal is the cheapest there is.


In Britain the expression 'stealth tax' would be used to describe how Liarbour raises extra tax revenue through the extortion of state owned monolpy power companies.
Come on everyone, let's start using the term 'stealth tax' to describe evry form of taxation that Liarbour tries to hide.