Tuesday, April 30, 2013


I have just sent off my cheque for shares in Might River Power.    While it is perfectly OK to oppose a decision of Government which was a central plank of its election campaign, is economic vandalism to set out to deliberately wreck a share float offer with a policy (if that's the word) designed nothing more than to depress the worth of the offer and claim some sort of vindication from that ... and who benefits?   Certainly not the economy and certainly not taxpayers.

Why not ... because the sale is going ahead and the only thing it will achieve is (1) to reduce the money likely to be received by Government from the partial share float, money which has been pledged to be ploughed back into infrastructure, money that will now have to be borrowed from o'seas lenders and (2) to cause disinvestment in the energy industry with the likely downstream effect of power shortages (brownouts) and (3) to reduce the dividend payable to to Government (read the taxpayer) from those companies where it has a financial interest.

No matter that the policy has been universally panned.   It has been dreamed up by economic illiterates whose mantra is to oppose economic development of whatever shape or size and whose political nirvana is to see New Zealand match Tasmania as a failed state.   A state where investment is a dirty word ... a state whose unemployment rate exceeds that of NZL. 

And their big policy idea along with the effective nationalising of the power industry is to print money as the way forward.

The drift of New Zealanders to Australia is slowing as the realities of the disastrous economic policies of the Labor Government there start to bite home.   It will accelerate again if these economic illiterates here ever again get their grubby hands on the leavers of power.

The Labour Party is being led by the nose by the Greens and right now it's not a case of 'jump' but 'how high sir'.  

The last Labour/Winston First Government squandered 8 years of surpluses, none of their own doing.   One shudders to contemplate just how they would cope in a world where there has been a paradigm shift away from borrow and hope.    


Judge Holden said...

"is economic vandalism to set out to deliberately wreck a share float offer with a policy..."

Surely if you really think that then it's economic vandalism to continue with the sale for purely ideological purposes (and to give some gravy to your farmer chums).

smttc said...

Judge, you are a twat.

Did Helen Clark back down in the face of wreckers and haters?

No, but she did a shit of things without taking them to NZ. At least National did that with the partial floats.

If governments started giving in to threats of economic vandalism from opposition parties then democracy would cease to serve any useful purpose and we might as well go back to one of the other "ocracies".

Psycho Milt said...

...reduce the dividend payable to to Government (read the taxpayer)...

Seriously? You're complaining about the Opposition doing something that's likely to reduce the dividends we receive from state-owned power companies? Wouldn't the best way to avoid reducing the dividends you receive from a particular asset be to not sell your shares in it?

As to the rest: shock news, Opposition opposes the govt!

Anonymous said...

"I'm sure I read that another reason for the sale was to reduce the deficit. Gee there's a good excuse for English now!!!

Anonymous said...

Anon 2.08
That will make it three.
First there was the earthquake and recently the drought.

Noel said...

"It will accelerate again if these economic illiterates here ever again get their grubby hands on the leavers of power."

Presume you meant "levers"?

The Veteran said...

Well spotted Noel ... gives himself a swift uppercut.

But it was a joy to see Labour shoot their economic credibility in the foot ... along with having a Finance Spokesman who previously said the idea was daft and their carpetbagger MP from Awanui who damned the proposal with real faint praise.

The Veteran said...

Judge ... Your anti farmer bias is pathetic. Just remember who is NZLs largest export earner and who funds your unemployable benefit.

Milt ... your thinking is arse about face. The share float is done deal. The Greens/Labour policy to nationalise the electricity industry has two consequences (1) to undermine the share float and claim some sort of political victory and (2) to reduce the dividend stream to Government likely to accrue from its remaining majority holding.

(1) is economic vandalism while (2) is just plain dumb.

BTW ... does anyone really believe Robertson when he sez this is a one-off? Finance Minister Norman may agree to disagree and with Labour beholden to the Greens .... watch this space.

Psycho Milt said...

The share float is done deal.

So? If Labour and the Greens form a govt, power price fixing will be a done deal - what difference would that make to whether it was a good idea or not?

(1) is economic vandalism...

...to exactly the same extent that the share float is "economic vandalism."

(2) is just plain dumb.

If reducing the dividend stream to taxpayers from their power companies is just plain dumb, why is the current govt going to great lengths right now to reduce the dividend stream to taxpayers from their power companies?