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Back to the future: electricity privatisation

Written By: - Date published: 2:12 pm, July 25th, 2009 - 86 comments
Categories: assets, bill english, economy, privatisation - Tags:

back to the future billBill English says he doesn’t much care whether monopolies or businesses with monopolistic power are owned by private companies or the Government does. He doesn’t care whether power companies are publicly or privately owned because he thinks he can make the electricity sector competitive. He’s dreaming like he was in the 1990s.

Monopolies are a fact of life in any economy. Some sectors are ‘natural monopolies’ – railway networks, electricity, to a lesser extent land-based telecommunications, airports, seas ports, roads, public transport- basically things that require huge capital investment and provide a low-cost commodity-type service create an unassailable barrier to entry into the market for potential competitors (that’s nothing controversial, it’s 5th form economics).

English seems to think he can convert the natural monopoly of electricity into a competitive market. Well, we’re still living with the consequences of the last time he and his mates tried that by splitting up ECNZ and selling Contact. The result has been the creation of an oligoploy of companies that still exercise considerable monopolistic power leading to underinvestment, misplaced investment, prices that are too high, service that is too unreliable, and the stupidity of companies (most of them owned by the government) spending millions on advertising trying to sell exactly the same electricity to you.

Now, monopolies and quasi-monopolies or oligopolies (like the power cos) do have a lot of power in their market and that’s not good. They can charge ‘super-profits’, make more money than they could under normal supply and demand, because consumers have nowhere else to go. Given their power and the fact that monopolies sometimes make sense, who should own them? The public, of course. Only public ownership can ensure that any super-profits that are made are not ultimately lost to the consumer but are returned via government spending on public services which benefit the consumer.

Why would we want to sell monopolies off to (inevitably foreign) owners? They would be relatively unrestrained by government policy, the profits would flow offshore, they would not have the incentive to provide a reliable and effective service or make investment. The history of selling monopolies (think Telecom, NZRail etc) is they asset strip, they put up prices, they fail to invest, and pretty soon we’ve lost far more money offshore than we made from the sale.

English might be hoping some pixie dust will turn up that will turn natural monopolies into competitive markets but it’s not going to happen. That being the case, those monopolies must stay in public ownership.

86 comments on “Back to the future: electricity privatisation”

  1. bobo 1

    Its nice to see the media during a recession focus the work/life balance for Key ignoring the real people struggling to get by who have been made redundant.. Nice one stuff..

    http://www.stuff.co.nz/national/2673088/Keys-failsafe-pick-up-line

  2. che 2

    You deride “the creation of an oligoploy of companies that still exercise considerable monopolistic power leading to underinvestment, misplaced investment, prices that are too high, service that is too unreliable…” and admit that all these companies are owned by the government…

    and then demand that they stay in public ownership? Doesn’t appear to make much sense.

    Electricity transmission is a natural monopoly. That’s why Transpower is regulated by both the Electricity Commission (which approves transmission upgrades, so we don’t pay too much for stuff that is unnecessary) and the Commerce Commission (which sets the price band that Transpower can charge to pay its capital outlay). Over the next few years Transpower won’t even pay a dividend to the government because it’s been told to reinvest all profits (small as they are anyway) in new investment.

    So is electricity distribution. That’s why lines companies are again price controlled by the Commerce Commission.

    Electricity generation and retail are not natural monopolies. Consumers cannot switch transmission companies (there’s only one set of lines and one company) but they can switch retailers – and they do. The wholesale and retail markets are not perfect. No market is.

    But nobody has come up with a better way. A wholesale market ensures that least cost new generation is built only when it is needed (as opposed to massive overbuild and massive expense under ECNZ and its predecessors). There IS competition in the retail market – look at Mercury recently competing hard on price down south against Contact, who have lost thousands of customers, and are paying people up to $200 to win them back.

    • Draco T Bastard 2.1

      fully government owned and no pretense to make a profit – it’s a much better way and what we used to have before we decided that everything needed to make a profit.

      • chris 2.1.1

        that might work under a govt. of the left? but what about a right wing govt.? Say they didn’t privatise, they’d just run the service as cheaply as possible so they wern’t seen to be making money, or they’d spend too much on it. I believe in public ownership of natural monopolies as making better economic sense, but you’re also entrusting our natural monopolies to political whim.

  3. che 3

    The other example you ignore is Contact, which is privately owned. Are they relatively unrestrained by government policy? How?

    Do they not provide a reliable service (compared to, say, Genesis – think recent problems- or Mighty River Power – think Muliaga family…)

    They don’t have an incentive to make investment? Well, Contact has literally billions of new generation on its booked, lined up to be built over the next few years….

    As for profits flowing offshore, this is just economic illiteracy. Contact makes money in New Zealand dollars. New Zealand dollars that flow offshore can’t be spent offshore – the money has to be spent in New Zealand.

    • Pascal's bookie 3.1

      “As for profits flowing offshore, this is just economic illiteracy. Contact makes money in New Zealand dollars. New Zealand dollars that flow offshore can’t be spent offshore the money has to be spent in New Zealand.”

      Are you saying that profits earned in NZ and repatriated off shore are a neutral factor in terms of our balance of payments?

      • Draco T Bastard 3.1.1

        That’s what they’re tying to say – yes.

        It’s funny, while at Uni I had a professor of economics tell me that the smaller economy may be worse off (they are, he put up a chart proving it) due to foreign investment but the world economy would be better off. He really couldn’t understand that the smaller economy would still be worse off. Yeah, it’s colloquially known as the “trickle down” effect.

        PS. It’s a rule of thumb of foreign investment: larger economies invest in smaller ones and not the other way around simply because the smaller economy can’t afford to invest in the larger.

        • RedLogix 3.1.1.1

          NZ’s deeply unfavourable current account deficit is almost entirely due to our massively negative ‘Net International Investment Position’. (About $180b).

          This is the main reason why NZ interest rates are so high compared with the rest of the world.

      • Paul Walker 3.1.2

        Yes. Simply because everything in the BoP is neutral in that for every debt there must be a credit. The BoP sums to zero.

        • Pascal's bookie 3.1.2.1

          It sums to zero yes. But that’s not the same as saying that profits repatriated aren’t ‘flowing offshore’, or that every item is neutral. FFS. If there’s a negative, there must be a positive somewhere, but that doesn’t make negatives or positives ‘neutral’.

          If those profits weren’t flowing offshore, would our BOP position change, all other things being equal?

          • RedLogix 3.1.2.1.1

            I have to share PB’s exasperation here. In general the excessive flow of ‘negative investment income’ (ie profits and interest) out of NZ is balanced by overseas investors placing short-term cash into the country because we have such high interest rates. Which in turn creates a future liability to pay yet more interest; a compounding process that ultimately leads to the total interest liability exceeding our ability to pay, and the country defaults on it’s total overseas debt. At that point the value of the NZD crashes dramatically and the country is plunged into a crisis. While all along the BoP remains ‘neutral’.

            Or are you telling us that because the BoP is ‘neutral’ we can rack up as much external debt as we like with impunity?

            I struggling to grasp what you mean by such an anodyne claim that “The BoP sums to zero.”. Well so does a company’s annual balance sheet, but that fact alone tells you nothing about whether the company is profitable, or about to be bankrupted. It’s the nature of the line items that counts.

  4. I’ve always like this one from Noam Chomski: “Privatisation does not mean you take a public institution and give it to some nice person. It means you take a public institution and give it to an unaccountable tyranny.”

    Anti Spam: necessities.
    Perhaps it’s trying to tell us something. LOL.

  5. Marty G 5

    You’re arguing the experiment in partial privatisation and attempting to create a market in among the generator/retailers has worked? No it’s been a disaster.

    They should have acknowledged that the market is a natural monopoly, should have continued running it as such, and kept it all in public hands.

    And it is a natural monoploy. There have been no private entrants into the market – except tiny Nova gas – all the players are just articifical government creations. That shows there is no real market, just a poor attempt to create one using privatisation pixie dust.

    • Natural monopolies are determined by the natural of their cost functions, ie they are subadditive, not by the amount of entry or exit. I don’t see why power production need be a natural monopoly, natural oligopoly may be. But that’s as far as it goes.

  6. che 6

    Lol. It IS in public hands – Meridian, Genesis, etc are all owned by the government!

    You haven’t engaged with the points I have made.

    Trustpower entered the market as well – and they are a fairly big player. So wrong on that too.

  7. BLiP 7

    The idea that competition is a healthy thing when it comes to the provision of an essential service is a fallacy. The imposition of the artificial landscape within the New Zealand electricity sector has impoverished the nation and filled the coffers of foreign-owned multinationals. Who can forget that National Inc’s smirking Minster of Energy, one Max Bradford, and his comment that his artifice would lead to reduced electricity prices? Its a flashing neon warning sign to New Zealanders when we see the same players playing the same game nearly twenty years later. And its to the country’s shame that we let them get away with it.

    The only reorganisation needed in the electricity sector is the dismantling of the contrived “retail” sector, the consolidation of the industry into one, government owned body that supplies electricity at cost plus, say, 30 percent, smoothed out so that all New Zealanders pay the same amount. Business can pay another 10 percent on top of that..

  8. Outofbed 8

    We need the ability to sell home generated electricity to the grid
    It is not in power generators interest to let that happen it is also not in their interest to preach power conservation as they obviously make money out of selling power.
    We are a small country that had one of the most efficient generation/supply situations in the world Bradford came along and fucked it up
    Won’t these Tory fuckers ever learn ?

    • stormspiral 8.1

      Genesis have a system of rewards: the more you use, the more ‘brownie points’ you get. And we own the company!!

      And home generation won’t solve the problem of highest prices for the poorest people…unless somebody wants to supply the poor with the tools to home generate. It would help the middle class I guess.

      OK I can hear the screams.

  9. stormspiral 9

    You are simply parroting rightwing (and some leftwing) trash.

    Surely the test of an operation is whether or not it works, and surely if it works, profits are an integral result.

    Clearly the electricity farce is not working, despite the rorting of approx $700billion from consumers.

    It is not true to say that people have choices and can move from supplier to supplier. In many parts of the country (I live in one of them) there is NO choice, and it is unreal what the companies do in such places.

    Hopefully when some of you guys grow up you will learn that there is a difference between practice and theory, and maybe you will also learn from experience. And the world didn’t begin in the 1970s or ’80s.

    This is in no form a personal attack. It’s a simple statement of a lot of years of observation and experience.

    But I suppose you all have to reinvent the wheel

  10. RedLogix 10

    Lol. It IS in public hands Meridian, Genesis, etc are all owned by the government!

    While this is true in one sense, it is also true that they are SOE’s who are required by statute to act as if they were private companies.

    For many, many decades the electricity system in this country was run as a public service, wholly owned by the Govt, designed and operated by engineers for the wider benefit of the community. Worked perfectly well, NZ had some of the lowest cost electricity in the world. If it had been allowed to develop naturally as a single organic whole, we would have been gaining real synergies from the application of advanced automation technologies that have come on stream in the last decade.

    Instead it’s all cut up into little bits that play games with each other.

  11. stormspiral 11

    Precisely

  12. Outofbed 12

    Home generation though would help ease some expected supply problems it is generally clean energy and the ability to sell back to the grid ones excess power would be a great incentive I take your point about benefiting the middle class but it would help small scale community generation projects
    http://www.ecocentre.org.uk/selling-electricity-back-to-the-grid.html

  13. stormspiral 13

    No argument from me. Just pointing out anomolies; that’s all…as usual <:-)

  14. Draco T Bastard 14

    Competition is inherently more expensive than monopolies. This is ok for some things where substitution can take place and the competition can bring some benefit. Electricity (and telecommunications, and hospitals, etc) isn’t one of them. You need electricity and there’s only one type.

    The supposed dead weight loss that monopolies bring are actually brought about by people trying to maximize profit. This has been proved (google Steve Keen, economist). As the government doesn’t need to make a profit that dead weight loss doesn’t exist. The best solution is a part subsidy from the government (taxes) and the rest paid at an individual level. The part paid at an individual level is to remind people that there is a cost and that it’s not free.

    Monopolies are actually more efficient than competition due to several factors: Economies of scale and having only to deal with itself and the customer (rather than several independent competitors and the customer) being the most notable. Bill English can’t make the electricity “market” more competitive and cheaper simply because making it more competitive will make it cost more and, on top of that, it will also have the dead weight loss of profit.

    Bill English is, quite frankly, talking from the POV of delusional ideology.

    • RedLogix 14.1

      Draco:

      The link you may have been thinking of.

      You’re absolutely right. In this paper Keen blows the deregulation/privatisation idea right out of the water.

    • “The supposed dead weight loss that monopolies bring are actually brought about by people trying to maximize profit. This has been proved (google Steve Keen, economist). As the government doesn’t need to make a profit that dead weight loss doesn’t exist.”

      I know I’m only an economist but the statement above is just plan wrong.

      The reason, as we explain to every stage 1 class, for a deadweight loss is that output is below the perfectly competitive level of output. The reason for output being below this level doesn’t matter. Whether the firm is maximizing profits or not there will still be a deadweight loss. For example assume that the perfectly competitive level of output is 10, the monopoly level of output is 5. The any level of output between 5 and 10 will not maximise profits for the monopolist but will result in a deadweight loss. So not maximising profits does not mean no deadweight loss. What results in no deadweight loss is producing the perfectly competitive level of output.

      Note also that both monopolists and competitive firms maximise profits. But only one results in a deadweight loss.

      • RedLogix 14.2.1

        Oh read the whole paper before cherry picking the bits that don’t fit with your preconceived notions.

        • Paul Walker 14.2.1.1

          He is just plain wrong in what he said. That’s not cherry picking, that just making a very simple but important point.

          • RedLogix 14.2.1.1.1

            You have not had time to do anything more than skim read the paper. You’ve taken one para that conflicts with your existing ideas … and rejected the entire thing.

            • Paul Walker 14.2.1.1.1.1

              No I have just pointed out that the argument I quoted is wrong. Please note I have said nothing about the bits I did not quote thus how can you logically get to the conclusion that I have “rejected the entire thing”?

              His argument is still wrong.

            • Tim Ellis 14.2.1.1.1.2

              RL, you might want to defer to a practising economist on the definition of a deadweight loss. Paul Walker wasn’t stating an ideological position, unless you believe that all orthodox economic theory is right-wing.

            • Draco T Bastard 14.2.1.1.1.3

              you might want to defer to a practising economist on the definition of a deadweight loss.

              How’s the joke go?

              How do you get 200 hundred answers to a single question? Ask 100 economists.

            • chris 14.2.1.1.1.4

              I’m going to send a copy of this thread to steven keen and see if he wants to explain his understanding of the monopoly situation. hopefully he replies!

      • Draco T Bastard 14.2.2

        Point me at a perfectly competitive economy.

    • Draco. A longer response to your comment is available here.

  15. Outofbed 15

    “Bill English is, quite frankly, talking from the POV of delusional ideology.’
    is that the same as talking out of his arse?

    • Draco T Bastard 15.1

      It could be, yes. Although I tend to think that if he was talking out his arse the result would at least be cleaner and biodegradable.

  16. Marty. For future reference, what your 5th form economics didn’t tell you is that the actual definition of a natural monopoly is an industry (firm) which has a subadditive cost function. This is, c(x+y)<=c(x)+c(y). It is this that results in the fact that the most efficient form of production is to have a single firm doing all the production. But as to the actual outcome in the market you should consider ideas like, for example, contestability, auctioning of a monopoly franchise or intermodal competition. Regulation of even a natural monopoly may not be needed. Sometimes going beyond 5th form is useful.

    • Marty G 16.1

      grow the fuck up Paul. I’m describing the situation of a typical natural monopoly for a general audience in a few words.

    • RedLogix 16.2

      1. A fundamental feature of a contestable market is low barriers to entry and exit. In a market with very high capital costs like electricity and high barrier to entry, notion of contestability is not applicable.

      2. In markets where the lifetime of assets like power stations, substations and transmission lines is much longer than any plausible periodic ‘franchise auction cycle’, creates a massive incentive to undermaintain assets. Again not usefully applicable to the electricity market.

      3. Intermodal competition. Fancy notion, but again what exactly what alternative ‘mode’ do you have in mind?

      • Paul Walker 16.2.1

        Actually thinking about this some more, I’m not sure power production is a natural monopoly. Natural oligopoly may be, but not natural monopoly. But I haven’t seen any studies on the cost structures of electricity production. Do you know of any?

        • BLiP 16.2.1.1

          Here’s two: one nuclear and the other Green .

        • Marty G 16.2.1.2

          Yeah, you’ll notice I use the terms monoploy, monopolistic, oligopoly. I’m using monoploy as shorthand for monopolies and quasi-monopolistic markets. Because this isn’t an economics essay, it’s a few hundred words for a general audience on the fact that there are markes were real competition can’t be achieved and that privatisation in those markets simply means the privatisation of super-profits.

    • Draco T Bastard 16.3

      Again I refer you to Steve Keen. Competition is more expensive than a monopoly and people need to be aware of that.

      • Paul Walker 16.3.1

        1) What do you think the statement “Competition is more expensive than a monopoly” means. Seriously I can’t see it has any economic meaning. The cost structure of monopolies and competitive firms could be the same. In fact in the standard graph we use to show the difference between the output levels of monopolies and competitive firms, the cost curves are exactly the same. What differs is the level of output each produces.

        2) Your argument that I quoted is still wrong. Even Keen would tell you that.

        • Draco T Bastard 16.3.1.1

          1.) It uses up more actual resources – something that economists seem to think irrelevant.

          2.) Reality disagrees with you and, as Keen has the proof that what I said was right, I’m pretty sure he’d agree with me.

          • Paul Walker 16.3.1.1.1

            I will take a guess and say you are talking about the use of inputs. As perfect competition and monopolies produce different levels of outputs, that they use different levels of inputs is not surprising. Competitive firms will use, in total, more inputs than a monopolist because they produce more output.

            And your discussion of deadweight loss is just wrong.

            • Draco T Bastard 16.3.1.1.1.1

              Perfect competition wouldn’t as any competition that exceeded the costs of any of the other competition would be immediately removed from the market as it would no longer be able to compete. What you describe is imperfect competition which is what you find in the real world.

              And my description of dead weight loss is spot on – it is profit.

            • Paul Walker 16.3.1.1.1.2

              “Perfect competition wouldn’t as any competition that exceeded the costs of any of the other competition would be immediately removed from the market as it would no longer be able to compete.”

              The result of this is that all firms in the market will have basically the same cost structure. This is what is assumed in perfect competition.

    • BLiP 16.4

      Have a good wank, did you Paul? Now, with all that mighty convolutin’ learnin’ in your inflated noggin (and with apologies to Finlay McDonald), here’s one for you:

      for all the free market makeovers, asset sales and privatisation, Reserve Bank and Fiscal Responsibility Acts, tax cuts, laissez faire monetary strategy and financial deregulation, we have gone backwards. Discuss.

        • BLiP 16.4.1.1

          D -

        • Draco T Bastard 16.4.1.2

          About what I’d expect.

          Blinded ideology.

          • Paul Walker 16.4.1.2.1

            Ideology or evidence? We report, you decide.

            The empirical evidence shows us that private ownership is by and large superior to state ownership, Nellis (“Privatization—A Summary Assessment”, Center for Global Development Working Paper Number 87 March, 2006.) for example, summaries this evidence as

            “The vast majority of economic studies praise privatization’s positive impact at the level of the firm, as well as its positive macroeconomic and welfare contributions. Moreover, contrary to popular conception, privatization has not contributed to maldistribution of income or increased poverty – at least in the best-studied Latin American cases. In sum, the technical picture is generally positive.”

            The following comes from the summary of chapter 4, ‘Empirical Evidence on Privatization’s Effectiveness in Nontransition Economies’, from William L. Megginson’s book “The Financial Economics of Privatization”, New York: Oxford University Press, 2005,

            “The 87 studies from nontransition economies discussed in this chapter offer at least limited support for the proposition that privatization is associated with improvements in the operating and financial performance of divested firms. Most of these studies offer strong support for this proposition, and only a handful document outright performance declines after privatization. Almost all studies that examine post-privatization changes in output, efficiency, profitability, capital investment spending, and leverage document significant increases in the first four measures and significant declines in leverage.

            The studies examined here are far less unanimous regarding the impact of privatization on employment levels in privatized firms. All governments fear that privatization will cause former SOEs to shed workers, and the key question in virtually every case is whether the divested firm’s sales will increase enough after privatization to offset the dramatically higher levels of per-worker productivity. Three studies document significant increases in employment [Galal, Jones, Tandon, and Vogelsang (1992); Megginson, Nash, and van Randenborgh (1994); and Boubakri and Cosset (1998)], but most of the remaining studies document significant-sometimes massive- employment declines. These conflicting results could be due to differences in methodology, sample size and make-up, or omitted factors.

            However, it is more likely that the studies reflect real differences in post-privatization employment changes between countries and between industries. In other words, there is no “standard” outcome regarding employment changes.

            Perhaps the safest conclusion we can assert is that privatization does not automatically mean employment reductions in divested firms, though this will likely occur unless sales can increase fast enough after divestiture to offset very large productivity gains. Since the empirical studies discussed in this chapter generally document performance improvements after privatization, a natural follow-up question is to ask why performance improves. For utilities, the need to introduce competition and an effective regulatory regime emerges as key, but there is no “silver bullet” answer for what makes privatization successful for firms in competitive industries. As we will discuss in the next chapter, a key determinant of performance improvement in transition economies is bringing in new managers after privatization. No study explicitly documents systematic evidence of this occurring in nontransition economies, but Wolfram (1998) and Cragg and Dyck (1999a,b) show that the compensation and pay-performance sensitivity of managers of privatized U.K. firms increases significantly after divestment. Studies that explicitly address the sources of post-privatization performance improvement using data from multiple nontransition economies tend to find stronger efficiency gains for firms in developing countries, in regulated industries, in firms that restructure operations after privatization, and in countries providing greater amounts of shareholder protection.”

            Sunita Kikeri and John Nellis write in their article, An Assessment of Privatization, “The World Bank Research Observer”, vol. 19, no. 1 (Spring 2004)

            “This article takes stock of the empirical evidence and shows that in competitive sectors privatization has been a resounding success in improving firm performance. In infrastructure sectors, privatization improves welfare, a broader and crucial objective, when it is accompanied by proper policy and regulatory frameworks.”

            Mary M. Shirley and Patrick Walsh write in “Public versus Private Ownership: The Current State of the Debate”, Working Paper, The World Bank,

            “Our review found greater ambiguity about ownership in theory than in the empirical literature. In the debate over the effects of competition, theory suggests that ownership may matter and if so, that private firms will outperform SOEs. The empirical studies squarely favor private ownership in competitive markets. Theory’s ambiguity about ownership in monopoly markets seems better justified, since the empirical literature is also less conclusive about the effects of ownership in such markets. Theories that assume a welfare maximizing government suggest that SOEs can correct market failures. In contrast, public choice theories are skeptical of the benevolent government model. Corporate governance theories suggest that even well intentioned governments may not be able to assure that SOE managers do their bidding. The empirical literature favors those skeptical of SOEs as a tool to address market failures. In studies of industrialized countries, where we might expect more developed political markets to motivate greater government concern with welfare maximization or better information and incentives to overcome corporate governance problems, private firms still have an advantage. The private advantage is more pronounced in developing countries, where market failures are more likely.”

            • stormspiral 16.4.1.2.1.1

              You know, Paul, there’s not a bit of hard science in anything you have said. You have couched it in seemingly logical wordiness, and not once have you (apparently) thought about the effects of your presumptions on what you are saying and imparting to our kids, let alone the influence you are having on our childlike politicians.

              That’s ethical?

  17. RedLogix 17

    RL, you might want to defer to a practising economist on the definition of a deadweight loss. Paul Walker wasn’t stating an ideological position, unless you believe that all orthodox economic theory is right-wing.

    We’ve crossed our wires somewhat . Paul was specifically refuting a statement by Draco, whereas I’m referring to Keen’s paper that I linked to and Paul appeared to be replying to.

    Nonetheless Keen’s paper is highly relevant to this discussion. (And yes I know what the definition of ‘deadweight loss’ is.)

  18. Marty. Check out Sappington and Stiglitz’s “Fundamental Theorem of Privatization”. What it shows is that even with a natural monopoly you can get the result that the outcome with a privatized monopoly and a state-owned monopoly is exactly the same. The government can get a private firm to produce any level of output it wants. Shapiro and Willig and Shleifer and Vishny have similar neutrality theorems.

  19. RedLogix 19

    Seriously I can’t see it has any economic meaning. The cost structure of monopolies and competitive firms could be the same. In fact in the standard graph we use to show the difference between the output levels of monopolies and competitive firms, the cost curves are exactly the same. What differs is the level of output each produces.

    This is exactly one of the points Keen addresses.The general situation is that monopolies use larger-scale production facilities while competitive firms
    use smaller scale ones. In the electricity industry a monopoly operator has the opportunity to install larger, potentially more efficient units, schedule production and transmission assets with more flexibility, access capital at lower risk and cost, consolidate back-office functions and overheads and so on.

    In general I would assert that larger scale operations are more efficient and productive than smaller scale ones.

    • This is true as long as you have a natural monopoly. It is not true when you don’t. And I’m not sure that electricity production is a natural monopoly. More likely a natural oligopoly. If the minimum efficient scale is small then multiple firms are the most efficient way of producing output.

      • RedLogix 19.1.1

        I don’t know Paul, we seem destined to talk past each other. I’m looking at the industry from an engineer’s POV. As products go electrons are the ultimate commodity, the only differentiators are price and security of supply (a rather secondary consideration for most customers).

        From an engineering perspective there are many good reasons why the larger your operation, the more opportunities you have to reduce your average costs. The largest possible operator in this industry, a monopoly, will have the lowest possible cost of production.

        Moreover a transmission grid is not only a means of shifting electricity from production to consumer, but is also a means of mitigating the ‘security of supply’ risk. A single monopoly operator can achieve this risk mitigation far more efficiently than does the current operator of the grid (Transpower) who is required to operate a totally artificial ‘market’ governed by an almost insanely complex set of rules. (I’ve seen an overview of them once, for a nation of 4m people, it was a mindboggling document.)

        By contrast your POV as an economist, while I am sure is internally consistent and logical to you, seem’s to me disconnected from the industry we are talking about.

        • Paul Walker 19.1.1.1

          The lowest cost producer will be determined by the relationship between demand and the position of the average cost curve. If the demand curve cuts the average cost curve to the left of the minimum of average cost then yes a monopoly will be the lest cost producer. If on the other hand demand cuts to the right of the minimum then it may not be.The further to the right is the demand curve the greater the number of firms in the industry.

          • stormspiral 19.1.1.1.1

            That is simply not valid.

            Because, when prices go too high, those who cannot afford to buy are forced to drop off the end. They don’t actually disappear. They just tough it out on the fringes–unless of course, they die of cold.

            See what I mean about scientific rigour?

            • Paul Walker 19.1.1.1.1.1

              Actually read what I wrote. What I was talking about was the least-cost way of producing. That is, how many firms will there be in the industry to achieve the least-cost method of production? Nothing at all was said about the retail price of the good. The retail price will depend on supply and demand. What was being talked about here was just the cost structure that underlie supply.

              But note that it is the *least-cost* industry structure that is the concern. That should help make the good or service the most affordable. Any other industry alignment would raise cost and thus lead to the possibility of higher retails prices.

          • Zaphod Beeblebrox 19.1.1.1.2

            The lowest cost producer of electrons could be you and I. If we had true competition, we would be allowed to use our photo-votaics to pump back into the grid and make some money.
            This would save massively on transmission costs.
            Of course no private operator with a monopoly of power supply would allow us to do that, would they? That would be too much competition for them.

        • Paul Walker 19.1.1.2

          “From an engineering perspective there are many good reasons why the larger your operation, the more opportunities you have to reduce your average costs. The largest possible operator in this industry, a monopoly, will have the lowest possible cost of production.”

          Consider the following very simple example. Average cost is given by 4.x+20/x where x is output. Minimum AC is (I hope!) where x=square root of 5 with AC=8.sqroot(5). If output less than sqroot(5) a monopoly is the least cost producer. Consider however an output of 25 units. Monopoly AC is 100.8 while if we have 5.sqroot(5) firms each producing sqroot(5) units, the AC is only 8.sqroot(5). So multiple firms have lower costs than a monopoly.

          • RedLogix 19.1.1.2.1

            Lets deconstruct your formula;

            The 4.x term is essentially the marginal cost; ie for every one unit x produced, it has 4 cost units (dollars if you like) associated with it.

            The 20/x term represents fixed costs, ie the firm has overheads of 20 units which can be divided by every unit of production to yield the contribution of overheads to average costs.

            So our firm produces 1 unit, the total average cost = 4 + 20/4 = $9

            If our firm produces 1,000 units the average cost = $4,000 + 20/1000 =$4000.02

            In other words in the example you have given is a company who for any realistic level of production has an average cost almost exactly the same as its marginal cost.

            Real-world firms, including electricity producers, do not have the cost structures assumed by economic theory, with the result that setting price equal to marginal cost would cause the vast majority of
            firms to go bankrupt. There are good practical and theoretical reasons why most products are not produced under conditions of diminishing marginal productivity, so that in practice marginal costs are constant or falling and well below average costs.
            Keen

            In highly capital intensive industries (and most are) the marginal cost is well below the average cost. For hydro geberation the marginal cost of producing one more kwhr may well be zero, whereas the total overheads such as operations, maintenance, finance and return on capital to the owners are by far the dominant items on the company’s balance sheet.

            In the water supply industry, the marginal cost of producing 1m3 of potable water at the treatment plant is typically 5 -8 cents, whereas the average wholesale cost that is charged to the consumer is around ten times that…. because fixed costs are by far the dominant item.

            Again I would assert that the minimum average cost for complex, capital intensive industries like electricity would be for the largest possible producer. This is not an original thought, some have taken it to it’s logical conclusion.

            • Paul Walker 19.1.1.2.1.1

              The total cost function is 4.x^2+20 so marginal costs are 8.x. Given this, marginal costs will be below average costs for all output below sqroot(5) and greater than AC for all output greater than sqroot(5). So no, marginal costs are not the same as average costs.

              “[...] so that in practice marginal costs are constant or falling and well below average costs”

              This is true in my example for output below sqroot(5). The above condition is just a sufficient condition for a natural monopoly. If MC<AC the cost function will be subadditive. If MCAC, but normally only for a small range of output greater than the point where MC=AC.

              The point of my example was just to show that if demand is large relative to the minimum of AC then the natural monopoly conditions are not satisfied and thus having more a one producer is cost minimising.

              So the actual number of firms in the industry will be determined by the relationship between costs and demand. Not just costs.

      • stormspiral 19.1.2

        Paul, you are sounding very learned. Didn’t somebody write, ‘a little learnig is a dangerous thing’. Yes the correct quote IS learning. NOT knowledge.

        You are extrapolating from extrapolation based on THEORIES. Not science, becausre the maths used by economists are built on sand: simple linear arithmetic which cannot and does not work, and never will work..

        The variable is people. You know, 2-legged animals with big skulls.

        So many (apparent) economists blogging here, yet not one has justified his maths. I find this unsurprising, because you cannot do the maths (that includes you, paul,, though your formula is mathematically accurate as taken from the textbooks).

        But all these maths are based on many assumptions which have been proved faulty…and the more extrapolation anybody makes results in conclusions that are even further from the truth than the original assumptions. Error compounds error exponentially

        • BLiP 19.1.2.1

          Its all just a game to Paul – a game where human beings are reduced to unchanging mathematical patterns of behaviour. Resistance is futile.

          Its all very dismal and soul destroying, really.

        • Draco T Bastard 19.1.2.2

          Exactly what Keen says and what I’ve come to understand over the last 8 years I’ve been studying economics.

          • Steve Keen 19.1.2.2.1

            Draco is correct and Paul Walker has some reading to do.

            In a nutshell, the mathematical argument behind the Marshallian argument in favour of competitive firms over monopolies is based on two mathematical fallacies.

            The first is the proposition that a competitive firm faces a horizontal demand curve at the market price. The fallacy behind this under the conditions assumed in the Marshallian model was pointed out by George Stigler in 1953 (see PERFECT COMPETITION, HISTORICALLY CONTEMPLATED Vol 65 p. 8 footnote 31), but as usual:

            (a) economists don’t refer to papers that contradict their beliefs; and

            (b) Stigler, who was a staunch champion of neoclassical economics, believed that he found a way around this conundrum in any case in the argument to which the footnote was made–that though Price does in fact exceed Marginal Revenue for a competitive firm, the equating of Marginal Cost to Marginal Revenue means that Price will converge to Marginal Revenue as the number of firms rises towards infinity.

            This argument is perfectly correct, but there’s a twee problem: the behaviour Stigler assumed, of equating Marginal Cost to Marginal Revenue, which economists call “Profit Maximising Behaviour” does not in fact maximise profits.

            The actual profit maximising formula is:

            MR-MC = (n-1)/n * (P – MC)

            where n stands for the number of firms in an industry, and the other terms have the obvious meanings.

            I’ve pointed this out in a number of academic papers that are available on my website, including:

            (2004). “Deregulator: Judgment Day for Microeconomics’, Utilities Policy, 12: 109 125.
            (2006) (with Russell Standish, UNSW) “Profit Maximization, Industry Structure, and Competition: A critique of neoclassical theory’, Physica A 370: 81-85.

            The second fallacy is the one relating to comparing the aggregated marginal cost curves of a competitive industry to the marginal cost curve for a monopoly, something which neoclassical economists blithely do in their textbooks without ever asking themselves under which conditions such a correspondence would be true. Mathematically there are two cases where it will apply–where marginal costs are constant and identical, and where marginal cost is a function of the number of firms in an industry in such a fashion that a way that a small firm would actually have a cost advantage over a monopoly if it could produce at the same scale.

            As pointed out in one study I cite in that Utilities Policy paper and referred to here, there are good reasons why a monopoly might be expected to have a lower marginal cost function than a number of smaller firms operating in its stead.

  20. stormspiral 20

    Gotcha. Pity he’s not a good mathematicion, or if he is , why doesn’t he use his maths as tools based on ethics.

    I won’t say what I think should happen to him among a few others. On the other hand…10 years trying to survive on $17.000 a year might give him/them an insight. Gosh! That would be terrible!!! They wouldn’t be able to gamble on the stockmarket> He/they’d have to content themselves with Lotto instead, as long as the kids could go without breakfast for a few days.

    • BLiP 20.1

      Ethics!! C’mon, storm, that is just soooooooooooo last century As far as today’s academics are concerned Ethics is an English County.

      : >

      • stormspiral 20.1.1

        (grump) Last century OMG I forgot.

        It freaks me out that such people are engaged in teaching our young a flawed and incomplete philosophy and set of maths based on probabilities, likelihoods, and balance of opinion.

        It’s not possible to predict the weather with any certainty, yet these people purport to predict the futures of the entire populations of the world. As I said, OMG

        And who cares whether a market is natural or not? Surely the way it delivers to consumers is the test. They should be thinking about natural justice rather than natural monopolies. That’s a natural application of Occam’s razor.

        • BLiP 20.1.1.1

          With thanks to Steve Keen.

          • Paul Walker 20.1.1.1.1

            The easiest response is to refer you to Matt Nolan’s posting at TVHE: Deadweight loss, debunking, and strawman micro. A second response would be : Auld, M.C., 2002. “Debunking Debunking Economics”. Working Paper, University of Calgary. Available at http://jerry.ss.ucalgary.ca/debunk.pdf.

            • BLiP 20.1.1.1.1.1

              Who me? All I did was give you a D for your response to the really important question – I ignored everything you said after that. I suspect you meant to post your reply above here. Typical economist, you were nearly right.

            • Paul Walker 20.1.1.1.1.2

              “Who me? All I did was give you a D for your response to the really important question I ignored everything you said after that. I suspect you meant to post your reply above here. Typical economist, you were nearly right.”

              You’re right the reply was in wrong place, have reposted. Thanks.

              The response to your D would be here.

            • BLiP 20.1.1.1.1.3

              hehehe – fair nuff.

              I wonder if you’ve noted that the LSE’s answer to Her Majesty QEII’s question: “how did all this (i.e., the current global Depression) happen?” was: “hubris, ma’am”. :smile:

  21. r0b 21

    As a non economist I’ve learned a lot reading this thread. Wouldn’t it be nice if more discussion on political blogs (this one included!) could be conducted at this kind of level…

  22. Deal Paul,

    My critique of neoclassical pricing theory has been published in Physica A, long after that exchange with Auld. The maths passed the scrutiny of physicists, who leave economists in the dust when it comes to mathematical reasoning.

    As usual, neoclassical economists refuse to acknowledge flaws in their own logic, and I’ve long ago given up trying to debate with them. Point blank, the Marshallian theory is mathematically false. I wish I’d get even one neoclassical economist to concede this, but while physicists confirm my maths is correct, neoclassicals refuse to even acknowledge the point.

    Furthermore, though the Cournot-Nash is mathematically correct, the Nash equilibrium is meta-unstable: independent competitive behaviour will lead instrumental profit maximisers to diverge from it without collusion. The only way to maintain the equilibrium is to presume competitive firms have “perfect knowledge” of each other’s strategies, which makes a nonsense of the concept of competition to agree with.

    Further furthermore, a myriad of empirical studies have found that marginal cost is constant or falling for 89-98% of firms (depending on the survey–see Alan Blinder’s Asking About Prices for the latest such research and Fred Lee’s Post Keynesian Pricing Theory for a comprehensive survey of the other 140 or so studies that have reached the same conclusion.

    Neoclassical micro–especially as taught to undergraduates and as forms the basis of competition policy–is empirically irrelevant and intellectually defunct.

    Finally, I wrote a post on your blog this morning pointing out the error in Matt’s reply to me which has yet to appear on your blog–any chance of it being posted there???

    For those on this blog, what Matt wrote was:

    “MR-MC = (n-1)/n * (P – MC)”

    As perfect competition assumes “many firms” (read infinite) n-1 converges to n, implying that P=MR.”

    This is the formula for an individual firm, not the economy as a whole. The convergence Matt notes applies because the firm output “q” in the MR formula for the single firm (MR(q)=P+q*dP/dQ) must go to zero if the number of firms in an industry goes to infinity.

    I have computer simulation models in my paper where I have (say) 100 firms that are instrumental profit maximisers–vary output up or down and change direction if profit goes the wrong way–and those firms collectively converge to the “monopoly” output level rather than the alleged competitive output level.

    Perfect competition is and always has been a crock that has stopped economists from actually confronting the real world. Though I despair of ever getting neoclassical economists to realise this, I hope that non-believers can appreciate this and start to ignore the irrelevant theories of neoclassical economists. If you want to read something useful on competition policy, read Michael Porter’s The Competitive Advantage of Nations.

    • Steve in answer to this bit:

      “Finally, I wrote a post on your blog this morning pointing out the error in Matt’s reply to me which has yet to appear on your blogany chance of it being posted there???”

      Can you repost? I don’t moderate comments at all, so if it hasn’t turned up then I guess its a technological problem which I can’t fix.

    • More detailed response to what I think you are saying here.

      One more thing, What has your response to do with what I was attracking in the first place: Bastard’s comments:

      “As the government doesn’t need to make a profit that dead weight loss doesn’t exist.”

      And “Monopolies are actually more efficient than competition due to several factors: Economies of scale and having only to deal with itself and the customer (rather than several independent competitors and the customer) being the most notable.”

      And “And my description of dead weight loss is spot on it is profit.”

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    Labour | 15-09
  • MANA Movement Housing Policy
    “When families are living in cars, garages, cockroach-infested caravans and three families to a house then we have a housing crisis”, said MANA leader and MP for Te Tai Tokerau, Hone Harawira. “When you have a housing crisis for low-income...
    Mana | 15-09
  • Bigger than the Foreshore and Seabed – Sykes
    “Over the past week I have received some disturbing information that has led myself and a number of Maori lawyers to conclude that this National - Maori Party - ACT and United Future Government are going to put an end to both...
    Mana | 14-09
  • MANA wants Te Reo Māori petition fulfilled
    Hone Harawira, MANA Leader and MP for Te Tai Tokerau Annette Sykes, MANA candidate for Waiariki Te Hāmua Nikora, MANA candidate for Ikaroa Rāwhiti  “More than four decades have passed and the petition calling for Te Reo Māori in schools...
    Mana | 14-09
  • Primary focus on the critical issues
    A Labour Government will prioritise New Zealand’s agricultural sectors by recreating a Rural Affairs Minister and appointing a Primary Industry Council and a Chief Agricultural Adviser. Releasing Labour’s Primary Sector and Rural Affairs policies today, spokesperson Damien O’Connor says the...
    Labour | 12-09
  • Maori Television fears confirmed – Harawira
    ...
    Mana | 12-09
  • More ghost houses from National
    The Government’s desperate pre-election announcement of more ghost houses won’t fool Aucklanders wanting action on the housing crisis, says Labour’s Housing spokesperson Phil Twyford. “These are ghost houses, to go with National’s ghost tax cut. Families cannot live in ghost...
    Labour | 12-09
  • National bows to union pressure over travel time
    National has reluctantly bowed to pressure from unions and adopted Labour’s fair and sensible policy to pay home support workers for the time they spend traveling between clients, Labour’s Associate Health spokesperson Iain Lees-Galloway says. “This decision is long overdue...
    Labour | 12-09
  • Predators on Poverty – Harawira
    “As poverty has ballooned out of control, the Predators on Poverty have emerged to suck the lifeblood from whole families and communities” said MANA Movement leader and Tai Tokerau MP, Hone Harawira. “They are deliberately targeting low-income areas, particularly those...
    Mana | 11-09
  • MANA Movement Policy Launch
    Predators on Poverty (pokie machines, alcohol outlets and loan sharks) 1pm, Thursday 11th September Corner Great South Road and Criterion Street Otahuhu Shopping Centre...
    Mana | 10-09
  • Eliminating Poverty – Sir Edmund Hillary Collegiate, Otara | Internet MAN...
    A campaign to Eliminate Poverty, Feed the Kids, build more houses, and create thousands of new jobs, was outlined by Internet MANA at a public meeting in Otara this evening. When MANA and the Internet Party first sat down to...
    Mana | 09-09
  • Housing in Waiariki – Sykes
    Fact:  Under this National-Maori Party-ACT-United Future Government 61% of Maori in Waiariki do not own their own home and nearly 70% of Maori rentals in Waiariki pay $200 or more per week. “Maori in Waiariki have low rates of home ownership...
    Mana | 09-09
  • Charter school crisis shows time to axe costly experiment
    Dysfunction from day one at a Northland charter school shows it is time to dump this costly and failed experiment by the National-ACT Government, Labour’s Education spokesperson Chris Hipkins says. “Te Kura Hourua ki Whangaruru received $27,000 in government funding...
    Labour | 08-09
  • Labour will crack down on loan sharks
    A Labour Government will crack down on predatory loan sharks by making it illegal both to charge exorbitant interest rates and to exploit uninformed borrowers, Labour’s Consumer Affairs Spokesperson Carol Beaumont says. Labour today released its Consumer Affairs policy which...
    Labour | 08-09
  • Let’s do the FEED before the weed
    “Last week I put out a very strongly worded email to my colleagues about an online promotion about cannabis law reform” said MANA leader and Tai Tokerau MP, Hone Harawira “and I stand by that criticism today.” My concern was...
    Mana | 08-09
  • TE KAEA and NATIVE AFFAIRS live to fight another day
    “I understand that both the chair of the Board of Maori Television, Georgina Te Heuheu, and new CEO, Paora Maxwell, are now saying that my comments this morning about their plans to cut Te Kaea and Native Affairs, were wrong, and that...
    Mana | 08-09
  • How come the PM only pays 2.8% of his income in tax – Harawira
    “Before John Key talks about the piddling tax cuts he plans for low and middle income families today he needs to explain why he only pays 2.8% of his income on tax while a minimum wage worker pays 28% tax,”...
    Mana | 07-09
  • THE DEATH OF INDEPENDENCE FOR MAORI TV
    “If what I’m hearing is true, tomorrow Maori Television Service (MTS) will dump its news programme, Te Kaea, and staff will lose their jobs” said MANA Leader and MP for Te Tai Tokerau, Hone Harawira “and the Minister of Maori...
    Mana | 07-09
  • Labour recommits to Pike River families
    An incoming Labour-led government will do everything possible to recover the bodies of the Pike River Miners and return them to their families, says Labour Leader David Cunliffe. “This tragedy and its aftermath has left the families of the 29...
    Labour | 06-09
  • Voting has started and still no tax plan or fiscal budget for voters to see
    "Even though voting for the election has already begun, National still refuses to provide any details of its proposed tax cuts. And Bill English admitted this morning that he won’t provide any specifics until after the election", Labour’s Finance spokesperson...
    Labour | 06-09
  • National’s partners’ tax plans cost at least $42 billion
    If National forms the next government its partners’ tax plans will cost the country at least $42 billion, and maybe as much as $50 billion, wreaking havoc with the books, says Labour’s Finance spokesperson David Parker. “National claims to be...
    Labour | 05-09
  • Labour: Providing more opportunities for young Kiwis
    A Labour Government will ensure every young Kiwi under the age of 20 is given the opportunity to be in work, education or training, and plans to develop a conservation apprenticeship scheme to help do that, Labour’s Youth Affairs spokesperson...
    Labour | 04-09
  • Candles out on teachers’ slice of birthday cake
    Today may be Novopay’s second birthday, but there’s little to celebrate, Labour’s Education spokesperson Chris Hipkins says. “Novopay has cost the taxpayer tens of millions of dollars already, and the cost is still climbing....
    Labour | 04-09
  • National’s blatant broadband pork barrelling misses the mark by a country...
    National’s blatant pork-barrelling ICT announcement today should reinforce a growing sceptical electorate’s view that they are all about the gift wrap and not the present, Labour’s ICT spokesperson Clare Curran says. “Instead of addressing the real issues - the woeful...
    Labour | 04-09
  • More evidence of the need to clean up the system
    The latest release of emails and messages between disgraced Minister Judith Collins and blogger Cameron Slater are more evidence of the urgent need to clean up politics, Labour MP Grant Robertson says. "This new evidence confirms a near constant flow...
    Labour | 04-09
  • Labour commits to stable funding for voluntary sector
    A Labour Government will establish long-term funding and streamline contract accountability for community and voluntary groups, says Labour’s spokesperson for the sector Louisa Wall. Announcing Labour’s policy for the community and voluntary sector, she said this would give much greater...
    Labour | 04-09
  • Better trained and skilled workforce under Labour
    Labour is committed to a skilled workforce that benefits businesses as well as their workers, and will increase workplace training to improve productivity and drive innovation, Labour Leader David Cunliffe says. “Labour believes the Government should support New Zealanders into...
    Labour | 03-09
  • Labour will make renting a better option
    Labour will provide greater security of tenure for renters, and build more state and social housing, says Labour’s housing spokesperson Phil Twyford. “Labour believes every kid deserves a decent start in life. That means a warm, dry and secure home....
    Labour | 03-09
  • At least 15 new taxes under National
    John Key is the last person to talk about creating taxes, presiding over a Government that has imposed at least 15 new taxes, Labour Leader David Cunliffe says. “John Key tried a novel line in the debate last night claiming...
    Labour | 03-09
  • Labour will strengthen New Zealand’s democracy
    A Labour Government will act quickly to protect and enhance New Zealand’s reputation as one of the most open and least corrupt countries in the world, Labour Leader David Cunliffe says. “The health of any democracy is improved by greater...
    Labour | 02-09
  • MANA Movement says tax cut on GST must be first priority – Minto
    “If Prime Minister John Key has money available for tax cuts then cutting GST must be the first priority”,  said MANA Movement Economic Justice Spokesperson John Minto. GST is a nasty tax on low-income families”, said Minto. “People in the...
    Mana | 02-09
  • The Maori Party’s Mana-Enhancing Relationship with National – Minto
    “First we had Cameron Slater and David Farrar backing Labour’s Kelvin Davis bid to unseat MANA Movement Leader and MP for Te Tai Tokerau Hone Harawira.  Now we have Slater writing a pro-Te Ururoa Flavell article on his website, Whale...
    Mana | 02-09
  • There’s Only One Poll That Counts
    “One of the oldest sayings in politics is that there is only one poll that counts – the one on Election Day – and that’s the one that I am focusing on” remarked the MANA Movement candidate for Waiariki, Annette...
    Mana | 02-09
  • Local communities critical to Civil Defence
    Labour will focus on empowering New Zealand communities to be resilient in Civil Defence disasters, says Labour’s Civil Defence spokesperson Clare Curran. Announcing Labour’s Civil Defence policy, she says that Labour will work with schools, voluntary agencies and community groups...
    Labour | 02-09
  • Labour looks to long-life passports, gambling harm review
    A return to 10 year passports and a review of gambling laws are highlights of Labour’s Internal Affairs policy released today. “More than 15,000 New Zealanders signed a petition calling on the Government to revert to the 10 year system...
    Labour | 02-09
  • MANA Movement Leadership stands strong behind Internet MANA relationship
    “There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority...
    Mana | 01-09
  • Rebuilding the New Zealand Defence Force
    A Labour Government will make it a priority to rebuild the capacity of the Defence Force to carry out the tasks expected of it, says Labour’s Defence Spokesperson Phil Goff. Releasing Labour’s Defence Policy today he said the NZDF has...
    Labour | 01-09
  • Speech to Canterbury Chamber of Commerce
    Today I'm going to talk about our policy package to upgrade and grow our economy and how we turn that growth into a foundation for a decent and fair society. But first I want to address the issue of our...
    Labour | 01-09
  • Commission of Inquiry must have bipartisan support
    The Labour Party is drafting terms of reference for a Commission of Inquiry, Labour’s Shadow Attorney-General David Parker says. “It is abundantly clear there is a need for an independent Commission of Inquiry, chaired by a High Court Judge, into...
    Labour | 01-09
  • Rapid Transit to unclog Christchurch
    Labour will build a 21st century Rapid Transit system for Christchurch, says Labour Leader David Cunliffe. “The long delayed recovery of Christchurch hinges on a modern commuter system for the city. “We will invest $100 million in a modern rail plan...
    Labour | 31-08
  • Labour’s commitment to public broadcasting
    A Labour Government will set up a working group to re-establish a public service television station as part of our commitment to ensuring New Zealand has high quality free-to-air local content. “We will set up a working group to report...
    Labour | 31-08
  • Has The NSA Constructed The Perfect PPP?
    Former intelligence analyst and whistleblower, Edward Snowden – speaking live to those gathered at the Auckland Town Hall on Monday September 17, 2014. Investigation by Selwyn Manning. THE PRIME MINISTER JOHN KEY’s admission on Wednesday that whistleblower Edward Snowden “may...
    The Daily Blog | 17-09
  • No way – Key admits Snowden is right
    After claiming there was no middle ground. After claiming there was no mass surveillance. After calling Glenn Greenwald a henchman and a loser. After all the mainstream media pundits screamed at Kim’s decision to take his evidence to Parliamentary Privileges...
    The Daily Blog | 17-09
  • Bad luck National
    ...
    The Daily Blog | 16-09
  • The incredible changing John Key story on mass spying – why the Moment of...
    While the mainstream media continue to try and make the Moment of Truth about Kim’s last minute decision to prolong his battle against John Key past the election into the Privileges Committee, the reality is that the Moment of Truth...
    The Daily Blog | 16-09
  • GUEST BLOG: Curwen Rolinson – Themes of the Campaign
    There’s one area of a political campaign that just about everyone, at some point, falls afoul of. The campaign song. I’m not sure quite why it is, but it seems to be almost impossible for political parties to come up...
    The Daily Blog | 16-09
  • GUEST BLOG – Denis Tegg – The NSA slides that prove mass surveillance
    The evidence presented by Glenn Greenwald and Edward Snowden on The Intercept of mass surveillance of New Zealanders by the GCSB is undeniable, and can stand on its own. But when you place this fresh evidence in the context of...
    The Daily Blog | 16-09
  • Ukraine, United Kingdom, Ireland, Scotland
    The Ukrainian civil war discomforts me. It seems to me the most dangerous political crisis since the Cuban missile crisis of 1962. And it’s because of our unwillingness to examine the issues in a holistic way. We innately prefer to...
    The Daily Blog | 16-09
  • John Key’s love affair with a straw man – the relationship intensifies
    John Key’s love affair with the straw man is now a fully-committed relationship. It’s now the first love of his life. Sorry Bronagh. Yesterday I pointed to Key’s constant assurances that there is no mass surveillance of New Zealanders by...
    The Daily Blog | 16-09
  • A brief word on why Wendyl Nissen is a hero
    Wendyl Nissen is a hero. The sleazy black ops attack on her by Slater and Odgers on behalf of Grocery Council chief executive Katherine Rich is sick. All Nissen is doing in her column is point out the filth and...
    The Daily Blog | 16-09
  • She saw John Key on TV and decided to vote!
    . . NZ, Wellington, 15 September – ‘Tina’* is 50, a close friend,  and one of the “Missing Million” from the last election. In fact, ‘Tina’ has never voted in her life.  Not once. In ‘Tina’s’ own words, politics has...
    The Daily Blog | 16-09
  • Eminem sues National Party for unlawful use of ‘Lose yourself’ bhahahah...
    …ahahahahahahahaha. Oh Christ this is hilarious… National Party sued over Eminem copyright infringment US rapper Eminem is suing the National Party for allegedly breaching copyright by using his song Lose Yourself in its campaign advertisements. The Detroit-based publishers of Eminem’s...
    The Daily Blog | 16-09
  • Are the Greens about to be snookered by a Labour-NZ First Government?
    I wrote last week that it was smart politics that the Greens pointed out they could work with National, the soft blue vote that’s looking for a home in the wake of Dirty Politics isn’t going to Labour, so the...
    The Daily Blog | 16-09
  • BLOGWATCH: Fonterra join 2Degrees and boycott Whaleoil
    In the wake of Dirty Politics, advertisers are pulling their advertising out of Whaleoil. PaknSave, Evo Cycles Pukekohe, Localist, 2 Degrees, Fertility Associates, iSentia, NZ Breast Cancer Foundation, Maori TV, Bookme.co.nz, Dobetter.co.nz and the Sound are now joined by Fonterra...
    The Daily Blog | 16-09
  • PM Key accused of allowing secret ‘spook’ cable sensors to spy on citiz...
    Pulitzer prize-winning journalist Glenn Greenwald (left) and Kim Dotcom at the “moment of truth” political surveillance meeting in Auckland last night. Image: PMW By ANNA MAJAVU of Pacific Media Watch NEW ZEALAND Prime Minister John Key has been accused of...
    The Daily Blog | 15-09
  • Fiji pre-election ‘politics’ blackout stirs media protests, frustration
    BLACKOUT DAY – Monday, day one of the “silence window” in Fiji leading up to the close of polling in the general election at 6pm on Wednesday. And this is under the draconian threat of a $10,000 fine or five...
    The Daily Blog | 15-09
  • “Now the work of movements begins”: government corruption, media bias, ...
    I am so tired of the dirty politics of the National government, aren’t you? I am tired of John Key and his pathetic attacks on award-winning journalists who have spent their careers fighting and digging for truth and good. The...
    The Daily Blog | 15-09
  • Moment of Truth review, smoking guns and the awful coverage by the NZ msm
      There were queues unlike any the Town Hall has seen, 1000 were turned away once it became full…     …full to the rafters. The energy and atmosphere within the room was extraordinary, and it begun…   …Glenn Greenwald...
    The Daily Blog | 15-09
  • Why Maori TV’s Te Tai Tokeraou Poll will be proved wrong
    If Hone Harawira had a dollar every time the media wrote off his chance of winning Te Tai Tokeraou, he would have more money than Kim Dotcom. Remember the by-election? Hone was 1 point ahead of Kelvin in an exact...
    The Daily Blog | 15-09
  • September 15 RNZ interviews – and then the Moment of Truth
    . Acknowledgement: Emmerson . 15 September – Leading up to the Moment of Truth public meeting this evening, these Radio NZ interviews are worth listening to; . Alt link . Alt link . Alt link . Alt link . Alt...
    The Daily Blog | 15-09
  • Live Stream: Moment of Truth Tonight 7pm
    Live Video Stream by eCast: The Daily Blog will Live Stream the Moment of Trust public meeting from 7pm. The meeting will feature Glenn Greenwald, Kim Dotcom, Robert Amsterdam, and a very special guest…...
    The Daily Blog | 15-09
  • The proof Key lied about GCSB mass surveillance
    And we start getting to the evidence that proves Key has lied about mass surveillance. The article by Glenn Greenwald is out and it is beyond damning… Documents provided by NSA whistleblower Edward Snowden show that the government worked in...
    The Daily Blog | 15-09
  • A brief word on the Ede-Slater emails
    Every day I have rushed to read the paper to see if a breaking story on the Ede-Slater emails had broken yet. They haven’t. Day after day, where are these emails? We know Rawshark sent the emails to David Fisher...
    The Daily Blog | 15-09
  • The email that proves Key is a liar
    This is the Email proving Key knew about Kim Dotcom before he claims he did… “We had a really good meeting with the Prime Minister. He’s a fan and we’re getting what we came for. Your groundwork in New Zealand...
    The Daily Blog | 15-09
  • Henchmen
    Henchmen...
    The Daily Blog | 14-09
  • Why it simply isn’t credible that Key stepped in and shut down the mass s...
    Key’s staggering admission that yes there was a year long business model by the GCSB to mass spy on all of NZ but  that he stepped in and shut it down after Cabinet had signed it off just sounds like make...
    The Daily Blog | 14-09
  • John Key’s love affair with a straw man
    Politicians like putting up straw men for the purpose of self-righteously knocking them over. Prime Minister John Key has a particular straw man he loves to punch over. He raises it whenever he’s asked about mass surveillance of New Zealanders...
    The Daily Blog | 14-09
  • John Armstrong turns on Glenn Greenwald
    Where does a mediocre journalist like John Armstrong get off attacking a journalist with the credibility of Glenn Greenwald as he has in his ridiculous column today? Armstrong has the audacity to try and play the terrorism card to justify why...
    The Daily Blog | 14-09
  • GUEST BLOG: Denis Tegg – Which of John Key’s many statements on the GC...
    We already have Glenn Greenwald’s assertion on The Nation that John Key has misled New Zealanders as to whether the GCSB has engaged in mass surveillance of Kiwis. But Key has made many other statements about the GCSB’s powers and...
    The Daily Blog | 14-09
  • Election 2014: Numbers and Faces
    Democratic politics is a game of numbers and faces. How can we translate the numbers into the 120 or more faces that will be in the next Parliament? Below is my prediction of a likely result: 120 people, divided by...
    The Daily Blog | 14-09
  • Scotland the brave
    The possibility that Scotland will vote for independence this Thursday has panicked the British establishment. An unholy alliance of Tory, Labour, Liberal and corporate leaders has resorted to fear-mongering and bullying on grand scale in a last ditch effort to...
    The Daily Blog | 14-09
  • Why Key’s denials sound so off and why Dotcom’s fight is all our fight
    The shrillness of Key is the issue. His denials just too forced and rehearsed. Key has gone from Hollow Man to Shallow Man with his lashing out at Pulitzer Price winning Journalist Glenn Greenwald by calling him a ‘henchman’. This...
    The Daily Blog | 14-09
  • Letters to the Editor – Spies, Lies, Five Eyes, and other matters on a S...
    . . Sharing a few thoughts and observations with newspaper editors around the country… . from: Frank Macskasy <fmacskasy@gmail.com>to: Sunday Star Times <letters@star-times.co.nz>date: Sun, Sep 14, 2014 subject: Letter to the Editor . The Editor Sunday Star Times . Our...
    The Daily Blog | 14-09
  • Letters to the Editor – Spies, Lies, Five Eyes, and other matters on a Su...
    . . Sharing a few thoughts and observations with newspaper editors around the country… . from: Frank Macskasy <fmacskasy@gmail.com>to: Sunday Star Times <letters@star-times.co.nz>date: Sun, Sep 14, 2014 subject: Letter to the Editor . The Editor Sunday Star Times . Our...
    The Daily Blog | 14-09
  • As TDB predicted, Labour to use universal super fund to buy back assets and...
    Greens about to be snookered again?   As The Daily Blog has pointed out several times now, Labour will use a universal super fund to buy back NZs assets in a bid to offer Winston a legacy project… Labour plans...
    The Daily Blog | 13-09
  • A lesson in caring for our most vulnerable
    Some of the comments on this article make me sick. Because I am so very much over people who think they are better than others because things have gone their way in life and think those who aren’t as functional...
    The Daily Blog | 13-09
  • GUEST BLOG: Anjum Rahman – Please vote positive
    One of the features of campaigning is the meet-the-candidates event.  As an opportunity to present policies to the voter, they aren’t the best vehicle but still serve a useful purpose.  The problem is that there are too many candidates and...
    The Daily Blog | 13-09
  • For this who don’t vote this election
    For this who don’t vote this election...
    The Daily Blog | 13-09
  • Where does Key get off abusing a Pulitzer prize winning Journalist like Gle...
    We are seeing the Dirty Politics PM today when Key decided the best way to counter the Glenn Greenwald claims of GCSB mass surveillance was to denigrate Greenwald… Prime Minister John Key says he will prove Glenn Greenwald’s claims by the...
    The Daily Blog | 13-09
  • Teflon Man No More
    . .   On 26 August, as Nicky Hager’s expose on New Zealand’s right wing politics hit public consciousness and confirmed our worst fears, I wrote, “Dirty Politics” has achieved more than simply revealing  unwholesome machinations between National party apparatchiks,...
    The Daily Blog | 13-09
  • Dear mainstream media – regarding Key’s promise to resign if GCSB expos...
    Dear Mainstream media. How’s it all going? I would like to acknowledge the deep depression many members of the Press Gallery are going through as their boy Key looks less and less likely to win. I appreciate how a loss...
    The Daily Blog | 13-09
  • It’s official: ACT’s Jamie Whyte is several-sandwiches-and-a-salad sho...
    .   . There aren’t very many times I agree wholeheartedly with our Dear Leader – but on this occassion I believe he spoke for those 99% of New Zealanders for whom common sense is as natural as breathing air....
    The Daily Blog | 13-09
  • ‘I’ll not be intimidated … by cowards’, says Fiji death threat jour...
    Fiji Sun’s Jyoti Pratibha … death threats via fake Facebook profiles. Image: Pacific Scoop THE PARIS-based media freedom advocacy organisation Reporters Sans Frontières and the Pacific Media Centre have condemned threats and intimidation against political reporters this week covering Fiji’s...
    The Daily Blog | 12-09
  • Glenn Greenwald on TV3s ‘The Nation’ – Everyone remember when Key pro...
    Glenn Greenwald has just given his first NZ interview on TV3s ‘The Nation’ and what he had to say was incredibly damaging. Glenn is here for Kim Dotcom’s Moment of Truth on Monday and what he has just had to...
    The Daily Blog | 12-09
  • What will soft National vote do, why Colin Craig will be a focus in final w...
    In what has been the most unpredictable elections of our time, the final week promises more shocks and bombshells than World War One trench warfare. We have the media who still have the Rawshark emails that detail the Ede-Slater exchanges....
    The Daily Blog | 12-09
  • Would a National-Conservative Party reduce rights to an abortion? Legalise ...
    With the possibility of a Conservative-National Party coalition looming, let’s consider the impact of this new hard right religious Government on social policy. We know Conservative Party candidate Edward Saafi, believes the inability to legally bash your kids is responsible for teenage prostitution, teenage pregnancy and...
    The Daily Blog | 12-09
  • ACTs solution to crime – more guns?
    How insane are the ACT Party? Honestly? Their solution to crime is to arm every shop keeper with a sawn off shotgun??? “Criminals are well aware that shopkeepers are defenceless and are taking advantage of this in brutal robberies. What...
    The Daily Blog | 12-09
  • John Key’s gift to teenage girls…
    Yesterday I was at the MANA Movement policy release on “Predators on Poverty” in the Otahuhu Shopping Centre. Successive Labour and National governments have left vulnerable communities on their own to face these merciless thieves who prey on the poor...
    The Daily Blog | 12-09
  • Poverty denial – Where does National get its advice from?
    National is displaying a quite inadequate understanding of their own policies and worrying inability to respond to criticism. When John Key trots out his old, tired example of how ‘work pays’ on Morning Report this week to justify leaving 260,000...
    The Daily Blog | 12-09
  • Education reformers mean well, so what’s the problem?
    The thing about education reformers is that, mostly, they mean well. Whether it’s charter schools, National Standards, Teach First, or another reform, many people involved have good intentions.  They want to improve things, try something new and innovate, they say. The thing...
    The Daily Blog | 12-09
  • My brain hurts
    My brain hurts.  This election year has been a really long nine months.  The lies, the headlines, the spin, the policy, the chat, I am literally overloaded with information.  At times it’s been exhausting trying to keep up.  However I...
    The Daily Blog | 12-09
  • Pregnancy Help Welcomes Green Party Packs for Newborn Babies
    Pregnancy Help applauds Metiria Turei acknowledging that “for many parents the birth of a new child is a highly stressful and financially straining time” and the desire for every child to thrive....
    Scoop politics | 17-09
  • McVicar Welcomes ASA Decision
    Napier Conservative Party Candidate Garth McVicar welcomes the Advertising Standards Authority’s decision to not uphold the pamphlet complaint of Robert Johnson, Campaign Manager for Napier Labour candidate Stuart Nash. The ASA acknowledged that one complaint...
    Scoop politics | 17-09
  • Whyte: In 12 months’ time, here is what will matter
    In three days’ time I will be elected along with a number of ACT MPs. I think the media will be surprised and ask how it happened?...
    Scoop politics | 17-09
  • Internet MANA Will Grant Special Residency to Edward Snowden
    Internet MANA will put the case to the new government to welcome global surveillance whistle blower Edward Snowden, granting him safe passage and residency in New Zealand....
    Scoop politics | 17-09
  • Ten millionth traveller uses SmartGate
    The 10 millionth traveller to pass through SmartGate, Customs’ automated passenger processing system, was greeted by Customs Manager Passenger Operations, Peter Lewis today at Auckland International Airport....
    Scoop politics | 17-09
  • Key vs. Cunliffe: Final Live NZ Election Reactor 7pm Tonight
    John Key and David Cunliffe go head to head for the last time tonight and you can decide who wins by driving the worm. This is the last live Election Reactor covering the debate tonight at 7pm on TV One....
    Scoop politics | 17-09
  • Offenders Get Road Safety Message
    Wellington Community Corrections partnered with emergency services, government agencies, organisations and Kapiti Coast District Council to deliver an innovative road safety programme to 70 community-based offenders at Southwards Car Museum on Tuesday 16...
    Scoop politics | 17-09
  • Proposed law to decriminalise Abortion
    http://images.tvnz.co.nz/tvnz_images/news2011/politics_news/12/q_a_interview__list_mp_jan_logie_n2.jpgRight to Life is disappointed that the Green Party is refusing to provide a response to the seven very important questions that have been addressed to Jan Logie, spokesperson...
    Scoop politics | 17-09
  • Election 2014 Will Be Costly
    The Taxpayers’ Union has today released the final update for its ' Bribe-O-Meter ' election costing website in the lead-up to Saturday’s general election. Taxpayers’ Union Executive Director Jordan Williams says:...
    Scoop politics | 17-09
  • Roy Morgan Poll September 17
    John Key set to win narrow election victory on Saturday as Labour/Greens slump puts Winston Peters in powerful position as NZ First surge to 8% Today’s New Zealand Roy Morgan Poll shows National (46.5%, up 1.5%) set to win a...
    Scoop politics | 17-09
  • Wahakura Package would provide warm welcome for babies
    The Greens Wahakura Welcome package announced yesterday is a wonderful example of child-centred policy which would help all children get a fair and equal start in life, says Child Poverty Action Group. CPAG health spokesperson Innes Asher says,...
    Scoop politics | 17-09
  • TPPA a Sellout to American Corporate Greed
    New Zealand will become a permanent prisoner to the United States’ greed and global arrogance if the Trans-Pacific Partnership Agreement (TPPA) isn’t stopped, warns Internet MANA....
    Scoop politics | 17-09
  • Wintry showers and blustery winds for Election Day
    As we head towards the weekend, it is time to look at what the weather will be for New Zealand's "Have Your Say" Day....
    Scoop politics | 17-09
  • New national secretary announced
    The PSA is pleased to announce the appointment of Erin Polaczuk to the role of national secretary....
    Scoop politics | 17-09
  • Public Secotr & TISA: On the cusp of something very special?
    Is the National Party keeping some things out of sight in case they frighten the electorate? Here is some worrying evidence that this may be the case....
    Scoop politics | 17-09
  • MPI ups yacht biosecurity ante
    Yachts arriving in Northland from overseas this season will face greater biosecurity scrutiny, says the Ministry for Primary Industries (MPI)....
    Scoop politics | 17-09
  • iPredict Election Update
    John Key’s National Party now has an 88% probability of leading the next government , most probably with the support of NZ First, according to the combined wisdom of the 8000+ registered traders on New Zealand’s predictions market, iPredict. There...
    Scoop politics | 17-09
  • Crowdfunding to Save Native Fish
    NZ Landcare Trust is offering an exciting project designed to assist native fish, as part of the launch of a new global crowdfunding category called 'The Landcare & Environment Collection.' This exciting step, aims to help raise funds and support,...
    Scoop politics | 17-09
  • New methods needed to reach non-voters
    Non-voters are much heavier users of the internet than those who do vote, while 43 per cent of non-voters say they never read a newspaper according to research released today by the Election Data Consortium....
    Scoop politics | 16-09
  • Parties sent home with report cards
    More than 2000 New Zealanders came together to run a full page ad in the Herald today asking all Parties what they will commit to do to clean up politics. The answers are in, and ActionStation has graded Parties on...
    Scoop politics | 16-09
  • One in 10 Kiwis want Winston Peters to Run the Country -Poll
    New Zealand First leader, Winston Peters has seen his personal popularity reach a three-year high in the final 3News/Reid Research poll ahead of Election Day....
    Scoop politics | 16-09
  • Shut Down This Govt Not Kaiti WINZ
    "I’m going to make it as hard for you to get help as I can" is Paula Bennett’s message to the people of Kaiti said MANA candidate Te Hāmua Nikora today in response to the news that National will close...
    Scoop politics | 16-09
  • New methods needed to reach non-voters
    Non-voters are much heavier users of the internet than those who do vote, while 43 per cent of non-voters say they never read a newspaper according to research released today by the Election Data Consortium....
    Scoop politics | 16-09
  • Conservatives Break Through 5% Threshold
    Reports in today’s Dominion Post that the Conservative Party is polling at 6% in Nationals internal polling are not surprising says the Conservative Napier candidate Garth McVicar....
    Scoop politics | 16-09
  • The MANA Plan for Beneficiaries and Income in Waiariki
    Median Personal Income for Waiariki is $21,700. Over 13,000 Maori who live in Waiariki rely upon a form of government benefit including the Unemployment Benefit, Sickness Benefit, Domestic Purpose Benefit and the Invalids Benefit....
    Scoop politics | 16-09
  • IGIS: No Indiscriminate Interception of NZers’ Data Found
    “As part of my role as Inspector-General, I review whether the GCSB complies with the restrictions upon interception of New Zealanders’ communications and with the requirement to intercept communications only for authorised purposes. That review...
    Scoop politics | 16-09
  • Conservatives Break through 5% Threshold
    Reports in today’s Dominion Post that the Conservative Party is polling at 6% in Nationals internal polling are not surprising says the Conservative Napier candidate Garth McVicar....
    Scoop politics | 16-09
  • Hundreds of Students Turn Out for Political Debate
    With only a few days left before the general election, over 500 Victoria students packed the central Hub space on campus today to listen to a political debate on student issues organised by the Students’ Association. Victoria University of Wellington...
    Scoop politics | 16-09
  • Ex-prisoners make most of mentoring to make most of life
    It’s not every day that an organisation triples a programme in size, but PARS Inc (formerly known as the Prisoners’ Aid and Rehabilitation Society of the Auckland District Inc) has managed to do just that with their Community Mentoring Scheme,...
    Scoop politics | 16-09
  • Unscrupulous worker highlights why 90-days works
    Federated Farmers believes the experience of a husband and wife farming team in Taranaki underscores why the 90-days provision is so important to small businesses. “Yesterday a member called 0800 FARMING to alert us to a guy doing the rounds...
    Scoop politics | 16-09
  • Eye to Eye Uploaded
    Leading Maori broadcaster and political commentator Willie Jackson previews Eye to Eye Uploaded, a multi-platform series of interviews that he’s aiming to put in front of media radars next year....
    Scoop politics | 16-09
  • Party Rankings against Inequality
    Revealed: which party will do the most to reduce New Zealand’s growing inequality crisis...
    Scoop politics | 16-09
  • Maritime Union backs change of Government
    The Maritime Union says a change of Government is required to deliver secure jobs and decent wages for New Zealand workers....
    Scoop politics | 16-09
  • Green Party package for newborns welcomed
    16 September 2014 Media Release The New Zealand College of Midwives has welcomed a policy announced today by the Green Party which would provide a package of essential items for every newborn baby. The College is a non partisan organisation...
    Scoop politics | 16-09
  • ALCP Release Election Manifesto
    The Aotearoa Legalise Cannabis Party has released its manifesto in the lead up to the election on Saturday....
    Scoop politics | 16-09
  • Election Daily Update #9
    John Key’s National Party appears to have received a major boost from last night’s “Moment of Truth” event, according to the combined wisdom of the 8000+ registered traders on New Zealand’s predictions market, iPredict. Despite no major changes...
    Scoop politics | 16-09
  • Eminem Publishers Sue New Zealand National Party
    Detroit-based music publishing companies sue National Party for damages for unauthorised use of song in election campaign advertising...
    Scoop politics | 16-09
  • Parties Back Rethink of WINZ Shared Care Parenting Laws
    Overwhelming Majority of Parties Back Rethink of WINZ Shared Care Parenting Laws. Press release- Fifty Fifty Campaign, 16 September 2014 National is the only political party willing to defend the way WINZ treats separated parents who share their kids...
    Scoop politics | 16-09
  • Parents Smacking Down Prime Minister
    "John Keys failure to deliver on his promise to change the anti-smacking law is costing National votes, and helping the Conservative Party," says Colin Craig....
    Scoop politics | 16-09
  • Political Debate on Family Violence – Video & Audio
    The Dunedin Collaboration Against Family Violence was happy to host a political debate on Family Violence chaired by Professor Nicola Atwool of the University of Otago. Family Violence is a huge problem in our community and we invited representatives...
    Scoop politics | 16-09
  • Greens Take Nanny State To A New Level
    Family First NZ is labelling the Green’s ‘welcome package’ for newborns policy as wasteful and misdirected. “This policy is taking ‘nanny state’ to a new level but indicates just how much the Greens want to intervene in family life,”...
    Scoop politics | 16-09
  • 2,100 people send message about dirty politics
    2,100 people have signed their name to a full-page open letter featuring in the New Zealand Herald this Wednesday. The letter is designed to send a message to politicians that dirty politics is an important election issue....
    Scoop politics | 16-09
  • Are DoC manipulating Rat Numbers?
    Ban 1080 Political Party co-leader Bill Wallace says there are serious rumours DoC has changed their rat counting technique to cover up the lack of the mythical “Rat Plague” claimed by the Department in Kahurangi National Park, and also that...
    Scoop politics | 16-09
  • Average Full time Student Is in Financial Distress
    A new survey has found that nearly half of all full time students are in significant financial distress....
    Scoop politics | 15-09
  • Key and Cunliffe, research revealed by Ancestry.com.au
    Contrasting family histories of John Key and David Cunliffe, revealed by research from Ancestry.com.au....
    Scoop politics | 15-09
  • Revelations a Damning Indictment of Key’s Honesty
    The Prime Minister’s honesty is now central to the election, says Internet Party Leader Laila Harré, following the revelations of whistleblower Edward Snowden that there is mass surveillance of New Zealand citizens by the GCSB....
    Scoop politics | 15-09
  • Organisations Have ‘Duty of Care’ for Players says Law Firm
    Concussion injuries in amateur and professional sporting arenas are currently highly topical. Concussion potentially appears to have been implicit in the recent death of a young player in Northland....
    Scoop politics | 15-09
  • Media Release from Closing the Gap on Health and Housing
    “Inequality is the biggest problem facing New Zealand at the present time” says Peter Malcolm National Secretary of Closing the Gap. It underlies many of our social ills, poverty, lack of trust, an economy that could do much better, and...
    Scoop politics | 15-09
  • Expanding Whānau Ora – a bottom line for Māori Party
    Leaving the best to last, the Māori Party has launched its Whānau Ora policy today following a fun family event at Te Ore Ore Marae in Masterton last night. “When we change what happens in our homes, we change what...
    Scoop politics | 15-09
  • Colin Craig’s Incredible Claims Continue
    Hot on the heels of a Conservative Party candidate proposing to double the price of a bottle of wine, Colin Craig has come up with an even more fantastic idea to buttress his uncosted tax policy....
    Scoop politics | 15-09
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