Comments on: Capital market taskforce pushes asset sales scam

By: Kirsten

Kirsten — Thu, 17 Dec 2009 22:35:05 +0000

See my comments above. Our increases in trade with different countries has directly followed the establishment of air services. Just like the advent of refridgerated ships to carry lamb to the UK led to substantial economic growth in NZ, the establishment of regular flights to Japan and South America enabled, for example, the kiwifruit boom.

By: Kirsten

Kirsten — Thu, 17 Dec 2009 22:29:42 +0000

Public Private Partnerships – as proposed by the current government for schools. This will mean we sell off education land to a private company who will build a school (financed privately at greater cost as the Government can actually get better rates than the private sector) and then lease back the school to the government and charge for school maintenance.

Of course for this to be attractive to the private “partner” they will need to factor in a decent wodge of our taxpayer dollars as profit. After around 30 years the State will be able to take ownership of what by that time will be a clapped out facility in a location that may or may not still need a school.

Of course some time in that 30 year period the private “partner”‘s shareholders may decide they want to move their capital elsewhere and owenership of what should be the centre of a community will be up for grabs. Or, as is just as likely, the “partner” may at some point end up in financial schtook and the shareholders may want to extract maximum benefit from their asset before the company folds – leaving the State to pick up the pieces. This is what has happened in some very high profile cases in the UK.

By: Kirsten

Kirsten — Thu, 17 Dec 2009 22:16:58 +0000

Also because of its strategic importance to our geographically isolated country – our trade with Japan rose only after sufficient flight services were put in place. Likewise South America.

And actually quite a few countries have stakes in their national airlines – Air France etc.

By: Kirsten

Kirsten — Thu, 17 Dec 2009 22:14:15 +0000

All governments (like all households) run with a level of debt they feel comfortable with – this is a capitalist world after all. The amount of government borrowing may sound impressive but actually it is proportionally much lower than pretty much all of Europe, the UK, Australia, the US, Canada….So, not quite time to sell the family silver quite yet.

By: Kirsten

Kirsten — Thu, 17 Dec 2009 22:09:23 +0000

Nice assertion but unfortunately not actually backed up by the facts. Most public services were created because of market failure – the failure of the private sector to be able to provide these services at a sufficient standard to support social and economic development.

Public infrastructure (clean water, roading, waste disposal, public education, health and social services etc.) weren’t established because of ideology but because the market failed to provide for them adequately and governments recognised that they were esstential for social and economic development.

By: prism

prism — Wed, 16 Dec 2009 08:39:22 +0000

sounds like that guy Prebble.

By: Lanthanide

Lanthanide — Wed, 16 Dec 2009 08:32:29 +0000

Sarah Palin is only in politics for the money, so probably not a good idea.

By: Julio

Julio — Wed, 16 Dec 2009 08:05:32 +0000

The ‘World Socialist Web Site’ is hardly a credible source. The guy who writes their NZ stuff, John Braddock, is just a typical trot with an axe to grind.

By: kelsey

kelsey — Wed, 16 Dec 2009 07:45:58 +0000

Incorrect.

Michael Cullen was a significant cause of the collapse by vetoing an increase in Singapore Air’s minority stake because he preferred it to be bought out by Qantas and have a single Australasian carrier.

When that fell through he was left with little choice.

Source:

http://www.wsws.org/articles/2001/nov2001/nz-n03.shtml

Knowledge changes things, eh?

By: gitmo

gitmo — Wed, 16 Dec 2009 06:14:17 +0000

Are you taking issue with my meteorism ?

By: felix

felix — Wed, 16 Dec 2009 05:41:18 +0000

“generally to thick”

Priceless.

By: Rex Widerstrom

Rex Widerstrom — Wed, 16 Dec 2009 05:23:11 +0000

That really is shoddy fifth former work.

For instance they could have left out the speech marks and instead said:

“… financial system profitability downsizing…”

“…recent monetary redistribution events…”

and so on. Or done the old “it’s actually all your fault but we’re not going to say so directly” trick and said:

“…profitability failure by key stakeholders…”

“…failure of market forecasts to align with outcomes…”

Better yet, just get Sarah Palin to write the next one.

By: Herodotus

Herodotus — Wed, 16 Dec 2009 04:56:48 +0000

So from what I understand we list govt asets to boast the sharemakets size allow overseas investment (As many mums & dads cannot afford to buy shares). So we take from NZ and send the profits off shore. How will that effect or current account?
And what happens when a capital fund takes over majority ownership or a controlling interest?
Was there not a film made about this dumb and dumber?

By: felix

felix — Wed, 16 Dec 2009 04:56:21 +0000

You’re absolutely right, tsmithfield – the govt should’ve compulsorily renationalised the rail network (for a fair price determined by themselves) without negotiation.

It’s a public asset, bought and paid for by the taxes of generations of New Zealanders and no govt was ever in a position to sell it.

Same for all the rest of them.

Not yours to sell. Hands off.
.

By: felix

felix — Wed, 16 Dec 2009 04:50:57 +0000

We simply turn away from you to inhale.