web analytics
The Standard

John Key – Economic Miracle Maker

Written By: - Date published: 7:02 pm, July 9th, 2013 - 24 comments
Categories: david parker, Economy, john key, Politics, privatisation, uncategorized - Tags:

John Key morphing

You have to hand it to John Key and this National Party.  It appears that they are economic miracle makers, able to  make money go way further than it should do and capable of, a la loaves and fishes, making what is left more than what was initially introduced.

What makes me say this?  Their ability to stretch the Future Investment Fund to extreme limits.

I must admit that I was initially opposed to the selling of the SOE shares.  After all their return were about 15% or so and it was proposed that the proceeds would reduce debt on which the Crown only paid an interest rate of 5% or so. I thought the idea made no financial sense whatsoever.  Indeed I thought that the phrase “financial lunacy” was applicable.

But I was not aware of the miraculous powers that the Government had to make the money last and last.  Two reports suggest the Government has decided to spend or is thinking of spending the sale proceeds of the share floats on the following projects:

  • $100 million on propping up Solid Energy.
  • $426 million for the Christchurch Hospitals redevelopment.
  • $94 million for the fourth year of KiwiRail’s turnaround plan.
  • $80 million for irrigation infrastructure.
  • $10 million for the National War Memorial Park.
  • $50 million to speed up the School Network Update Project.
  • $500 million for Christchurch’s justice and emergency services precinct and to help the Canterbury Tertiary Education Institutions recover from the earthquakes.
  • $172 million for building new schools to meet the demands of a growing population.
  • $1 billion for priority health investments
  • $1 billion for the 21st century schools program
  • $5.4 million for extending Health on the Police network.
  • $7.2 million on upgrading our distress beacon systems
  • $1.4 million on rolling over the Matriach Accounting System
  • $15.7 million on rebuilding Auckland’s Refugee Centre

They are also suggesting that the Crown contribution of the Auckland Inner City Rail Loop and maybe other transport assets could also be paid out of this fund.  The Crown contribution to the inner city loop alone has been assessed at $1.4 billion.

This is a total of up to $4.9 billion of spending not including Auckland’s other transport assets and they have only earned $1.7 billion so far.  The Meridian share sale, worth possibly $2.4 billion, is looking sick on it and Solid Energy is looking positively anemic.  It was thought that the share sale could be worth a billion or so.  If you take these figures off the top end estimate of $7 billion for the sale proceeds you have only $3.6 billion.  And the Government previously promised to reduce debt by an estimated $6 billion dollars and to stave off a credit rating downgrade!  Unfortunately the credit rating downgrade occurred anyway. Those overseas Credit Assessors obviously do not appreciate the extreme skills that John Key brings to the job.

This truly is a miraculous result by this Government.  Of course there is no reason to think that they will not succeed.

And interestingly the Solid Energy $100 million appears in this Budget document

Solid Energy

Yet it has been redacted in this Budget document

Solid Energy2

Why could this be?

24 comments on “John Key – Economic Miracle Maker”

  1. Gruntie 1

    He’s just a man – he’s not the Messiah !

  2. Gruntie 2

    Correction

    He’s not the Messiah – he’s just a naughty boy !

  3. karol 3

    Is that the redacted bit that English was asked about in the House today?

    Hon David Parker: Given that Treasury documents from March 2013, recently released under the Official Information Act, state that Cabinet has already agreed to spend $616 million against the Budget 2013 Future Investment Fund’s spending profile, then list Christchurch hospitals, irrigation infrastructure, and the National War Memorial, at a total of $516 million, was the other $100 million blanked out for Solid Energy?

    Hon BILL ENGLISH: I understand that it was, but Treasury is wrong. The Government has not committed to $100 million from the Future Investment Fund, as the member asked in the first question. The Government decides what the Future Investment Fund is spent on, not Treasury accountants.

    It’s all the Treasury’s fault?

    • mickysavage 3.1

      I believe so Karol. And if “it is all the treasury’s fault” means that “none of us actually saw it or read it or we now understand it could be politically embarrassing and we want to deny all knowledge and blame someone else” then yes.

      • Colonial Viper 3.1.1

        Maybe Key and English do believe in printing money out of thin air after all?

        • Draco T Bastard 3.1.1.1

          Of course they do – they know how the banking system works and they’re quite happy about it.

    • Alanz 3.2

      “It’s all the Treasury’s fault?”

      This is tremendous improvement on National’s part in not blaming Labour.

  4. chrissy 4

    Maybe they are getting budgeting advice from Christine Rankin.

    • geoff 4.1

      Leave Christine out of it! She could feed the entire Nation of thrupence and ha’penny a week!
      “Please, Miss Rankin, may I have some more??”
      “No you may fucking not youfilthy little worm!! I’ve got to stretch a single weetbix across 200 thousand snivelling little shits!!! Now get back to sewing those fucking stuffed kiwis for the wealthy Chinese tourists!!”

      • Rosetinted 4.1.1

        geoff
        You’re getting awfully mixed up. You’re thinking of the bible story of feeding the multitudes with a few loaves and fishes. Surely you don’t think that Christ-ine is the embodiment of the divine resurrected?

    • dumrse 4.2

      Sure as fuck won’t be from your man Cullen.

  5. Yes 5

    The numbers don’t add up above! Have I missed something?

    • mickysavage 5.1

      The total of the bullet pointed expenses is $3,461.7 billion and the cost of the inner city loop is $1.4 billion. The Government did say that asset sale proceeds could be used for up to $10 billion of Auckland’s transport assets so the total could be even bigger …

  6. yeshe 6

    they must have learned maths from hekia in one of her schools … just amazing isn’t it ?

  7. Rosetinted 7

    A Radionz BBC talk on middle class entrepreneurs in Ghana tonight had people saying things that could equally be applied to NZ.

    A politician stressing that government doesn’t need to run everything and private enterprise can do it. Cost of living too high. Company taxation has been brought down. But water may be delivered only four times a week. Electricity goes off and businesses have to save to buy generators.

    Nobody thinks they are well off even those who are relatively so.
    The banks won’t lend the young people money. Furniture can be imported cheaper than the same quality made in the country.

    • Yes 7.1

      They have a left wing government too! Must be ok then

      • Draco T Bastard 7.1.1

        Sounds like they got a “left” government that’s like Labour – decidedly on the right of the political spectrum.

  8. georgecom 8

    One of the comments floating round before the last election, in regards to a CGT, was the aussie saying “a dollar earned is a dollar earned”, meaning however a dollar was earned, it should be taxed.

    With Key and his Government, a dollar earned is $3 spent.

  9. Sable 9

    This government are fundamentally dishonest. Question is with their blanket ownership of mainstream media will people see past the smoke and mirrors come election day? Personally I have my doubts.

  10. Follow-the-money 10

    I think I know how it could happen.

    The Future Fund is hauled up to Sky City & put it all on black. No, it isn’t guaranteed, and, yes, there is an element of risk, but thousands of kiwi mums & dads are taking those same risks every day. This is the biggest recession since the 1930s, and it needs visionary thinkers to create bold policy.

    Well, at least it’s an idea, and that’s better than nothing.

Recent Comments

Recent Posts

  • The Grinch that stole the Waitangi Day public holiday
    It’s been a busy summer for AFFCO Talley’s as they toil away tirelessly in their attempts to bust the union at their Rangiuru site in Wairoa. Not content with locking out some of their employees who belong to the Meat… ...
    GreensBy Denise Roche MP
    1 day ago
  • Waitangi 2016
    I have been to Waitangi every Waitangi Day except one since 2000. As usual, the good news and positive political events were ignored by many media. The Greens, for example, had a very good reception at Te Tii Marae. We… ...
    GreensBy Catherine Delahunty MP
    3 days ago
  • Waitangi 2016
    I have been to Waitangi every Waitangi Day except one since 2000. As usual, the good news and positive political events were ignored by many media. The Greens, for example, had a very good reception at Te Tii Marae. We… ...
    GreensBy Catherine Delahunty MP
    3 days ago
  • TPPA people power protests
    It was great to see such a big turnout – at least 15,000 in Auckland by some estimates. That’s a lot of people not buying the National Government’s spin on the TPPA. I was at the Auckland protests along with… ...
    GreensBy Denise Roche MP
    1 week ago
  • Ten Ways We can Honour Te Tiriti
    1. Learn about our history and current issues – Te Tiriti education is powerful, inspiring and available! 2. Learn about where you live and who the manawhenua are and what their issues in rebuilding their culture are. 3. Support manawhenua… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • “Not one more acre”
    The Public Works Act has too often been used to confiscate Māori land, and Members of Parliament will soon get a chance to vote to stop this. The original Public Works Act was developed in the 1860’s to facilitate… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • Rules needed so we can swim in Canterbury rivers
    First published in The Press on 1 February 2016 A work colleague recently asked me which rivers and lakes I’d recommend she take her son and nephew swimming during an upcoming visit to Christchurch, somewhere handy to the city. I… ...
    GreensBy Eugenie Sage MP
    1 week ago
  • Rules needed so we can swim in Canterbury rivers
    First published in The Press on 1 February 2016 A work colleague recently asked me which rivers and lakes I’d recommend she take her son and nephew swimming during an upcoming visit to Christchurch, somewhere handy to the city. I… ...
    GreensBy Eugenie Sage MP
    1 week ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Vulnerable women the victims of Govt inaction
    The Government’s failure to address the housing crisis and its refusal to steps to raise wages have led to vulnerable women being exploited, Labour’s spokesperson for Women Ruth Dyson says. “Reports today that women are being offered free rent in… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • Arms Control a priority for the Pacific
    Labour’s Pacific Island Affairs spokesperson Su’a William Sio and Chair of New Zealand’s Parliamentarians for Global Action says his priority will be getting the Pacific to sign up to the Arms Trade Treaty after being appointed by the PGA as… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • National must listen to Maori TPPA concerns
    The National Government must listen to the widespread opposition to the Trans-Pacific Partnership Agreement (TPPA) if it is to retain credibility with Māori, says Labour’s Maori Development spokesperson Kelvin Davis. “The Iwi Leaders Forum met with Trade Minister Todd McClay… ...
    2 weeks ago
  • Bob Tizard’s passing an end of an era
    Labour Leader Andrew Little has expressed his deepest condolences to the family of former Labour MP and Deputy Prime Minister Bob Tizard who died this afternoon. Robert “Bob” Tizard was a Labour MP for 30 years, representing the seats of… ...
    2 weeks ago
  • Bob Tizard’s passing an end of an era
    Labour Leader Andrew Little has expressed his deepest condolences to the family of former Labour MP and Deputy Prime Minister Bob Tizard who died this afternoon. Robert “Bob” Tizard was a Labour MP for 30 years, representing the seats of… ...
    2 weeks ago
  • Bob Tizard’s passing an end of an era
    Labour Leader Andrew Little has expressed his deepest condolences to the family of former Labour MP and Deputy Prime Minister Bob Tizard who died this afternoon. Robert “Bob” Tizard was a Labour MP for 30 years, representing the seats of… ...
    2 weeks ago
  • Bob Tizard’s passing an end of an era
    Labour Leader Andrew Little has expressed his deepest condolences to the family of former Labour MP and Deputy Prime Minister Bob Tizard who died this afternoon. Robert “Bob” Tizard was a Labour MP for 30 years, representing the seats of… ...
    2 weeks ago
  • Bob Tizard’s passing an end of an era
    Labour Leader Andrew Little has expressed his deepest condolences to the family of former Labour MP and Deputy Prime Minister Bob Tizard who died this afternoon. Robert “Bob” Tizard was a Labour MP for 30 years, representing the seats of… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Differing view on TPPA agreed
    Opposition Leader Andrew Little has given dispensation to MP Phil Goff to take his own position on the Trans Pacific Partnership Agreement due to his historic involvement in negotiating its predecessor, the P4. “Phil has had a longstanding involvement and… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Scandalous Saudi sheep saga rolls on
    It is scurrilous that the Government is pushing ahead with plans to spend many millions of taxpayer money on an abattoir in Saudi Arabia without knowing who’ll end up owning it, Labour MP David Parker says. “More than $12 million… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Joyce destroys Government rail link certainty
    Infrastructure Minister Steven Joyce has destroyed the certainty the Prime Minister gave private sector investors in his State of the Nation announcement on the City Rail Link, Labour’s Auckland Issues spokesperson Phil Twyford says.   “Steven Joyce has again poured… ...
    2 weeks ago
  • Pasifika caucus visit as Kiribati water crisis deepens
    Water supplies are deteriorating in Kiribati as Labour’s  Pasifika climate change task force prepares to head there and Tuvalu, says Labour’s Pacific Climate Change Spokesperson Su’a William Sio.  “There is a growing crisis on the atolls due to water supplies… ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere