web analytics

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

  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    9 hours ago
  • OAG raps Govt over the knuckles on HNZ contracts
    The Government has been rapped over the knuckles by the Auditor General over its failure to properly manage $2.3m of contracts and conflicts of interest in relation to a merchant banker advising them on the state house sell-off, says Labour’s… ...
    9 hours ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    15 hours ago
  • Brownlee must step in as EQC spin exposed
    Gerry Brownlee needs to step in after EQC’s desperate spin in the wake of yesterday’s landmark settlement has been exposed by its own documents, says Labour’s Canterbury spokesperson Megan Woods. “Yesterday’s settlement showed that thousands of homes may not have… ...
    15 hours ago
  • OIO must explain Argentine pollution prosecutions
    The Overseas Investment Office (OIO)has questions to answer about how it safeguarded our sensitive land by allowing foreign investors with criminal prosecutions to purchase Onetai Station in Taranaki, says Labour’s Land Information spokesperson David Cunliffe.   “Rafael and Federico Grozovsky… ...
    17 hours ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    18 hours ago
  • Aussie banks in NZ should ban lending to offshore buyers
    ASB, Westpac and ANZ must confirm whether or not they will continue to fund the over-heated property market by lending to non-resident offshore home buyers, Labour’s Housing spokesperson Phil Twyford says. “This issue has arisen because their parent banks have… ...
    18 hours ago
  • Murray McCully needs to come clean over Tokelau ferry debacle
    Foreign Minister Murray McCully needs to come clean on why a New Zealand aid-funded vessel intended to service the Tokelau Islands is delayed, over budget and failed its sea trials, Labour’s Foreign Affairs spokesperson David Shearer says. “The new ship… ...
    19 hours ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    20 hours ago
  • Full independent inquiry needed to save New Zealand’s reputation
    Revelations that John Key's personal lawyer and trust advisor led a lobbying campaign to shut down a review of New Zealand's foreign trust regime makes the case for a full scale independent inquiry a matter of urgency, Labour's Finance spokesperson… ...
    20 hours ago
  • Andrew Little visits NZ troops in Iraq and refugees in Jordan
    Opposition Leader Andrew Little has visited New Zealand troops at Camp Taji, Iraq. Mr Little also met with Iraqi Defence Minister Khaled Al-Obedih and senior military officials from the Coalition forces in Iraq. He now heads to Jordan to see… ...
    1 day ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    2 days ago
  • Workplace death toll still too high
    It’s a damning indictment on the Government that as workers gather to remember their lost workmates on Worker’s Memorial Day, New Zealand’s workplace death toll is still far too high, Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway says. “At… ...
    2 days ago
  • Minister must come clean on implications of landmark settlement
    Gerry Brownlee has urgent and serious questions to answer in the wake of today’s landmark EQC settlement, which potentially has major implications for thousands of Cantabrians, says Labour’s Canterbury spokesperson Megan Woods. ...
    2 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    2 days ago
  • Mossack Fonseca links to OIO approvals must be investigated
    The Minister for Land Information must investigate and disclose how many applications to the Overseas Investment Office (OIO) have links to Mossack Fonseca, says Labour’s Land Information spokesperson David Cunliffe. “Labour can now reveal the OIO approved an application from… ...
    2 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    2 days ago
  • Govt complacency leaves RB no room to cut
    The Government has put the economy in a holding pattern, leaving the Reserve Bank Governor with little room to manoeuvre as he tries to balance a rampant housing market with non-existent inflation, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler… ...
    2 days ago
  • Dam not out of doldrums yet
    Ruataniwha Dam promoters Hawke’s Bay Regional Investment Company (HBRIC) still has hurdles to clear and a lot of work to do before ratepayers and taxpayers will have confidence in the scheme, says Labour’s MP for Ikaroa-Rāwhiti Meka Whaitiri.“We need sustainable… ...
    2 days ago
  • New study shows Smith’s insulation fails Kiwi kids
    A new Otago University study shows Nick Smith’s inadequate insulation standards will see hundreds of children unnecessarily hospitalised for housing-related illnesses every year, Labour’s Housing spokesperson Phil Twyford says. ...
    2 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    2 days ago
  • Government out of touch on foreign trusts
    John Key’s poor handling of the foreign trusts issue is starkly revealed in a poll today which shows the majority of Kiwis are worried about the country being a tax haven and almost half think the issue has been badly… ...
    2 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    3 days ago
  • Biggest trade deficit for 7 years a warning for Govt
    The biggest trade deficit for seven years shows the Government can’t be so complacent about the economy and must take action to diversify and encourage exports, says Labour’s Finance spokesperson Grant Robertson. “The biggest driver has been the fall in… ...
    3 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    3 days ago
  • Government’s record on climate change under fire
      The Royal Society’s latest report on climate change has made it clear that it believes the Government’s current approach to climate change is inadequate, says Labour’s spokesperson on Climate Change Megan Woods.  “The report, ‘Transition to a low-carbon economy… ...
    3 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    3 days ago
  • Mainfreight director agrees with Labour on rail funding
    Richard Prebble – in the past accused of ruining rail and now a director of Mainfreight – agrees with Labour that secure funding for KiwiRail is the best way to minimise congestion in our major cities, says Labour’s SOEs spokesperson… ...
    3 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    3 days ago
  • Government to Reserve Bank – Rock or Hard Place?
    The Government’s complacency on the housing crisis and the economy has put the Reserve Bank Governor in a no-win position as he contemplates the OCR tomorrow, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler is stuck between a rock and… ...
    3 days ago
  • John Key’s land tax could push up rents
    A land tax proposed by John Key as the answer to the housing crisis could push up rents and risks having no effect on skyrocketing prices, Labour’s Housing spokesperson Phil Twyford says. “The Government needs to explain why the thousands… ...
    3 days ago
  • Government should ban foreign speculators
    The Prime Minister’s musings about a land tax on non-resident buyers is just more tinkering, and the Government should just ban foreign speculators as the Australian Government has done, says Labour’s Housing spokesperson Phil Twyford. “This is classic John Key.… ...
    4 days ago
  • Government must protect Pharmac as promised
    John Key must tell New Zealanders that he will not bow to pressure from wealthy drug companies or their US negotiators and put Kiwi lives at risk, Labour’s Health spokesperson Annette King says.   “News reports today have the drug… ...
    4 days ago
  • Action not words, needed on housing speculation
    John Key should be taking action to crack down on speculation in our overheated housing market, instead of random musings on land tax, Labour Housing spokesperson Phil Twyford said.  "John Key suggested today on TVNZ's Q and A programme that… ...
    6 days ago
  • Tertiary education cost rising 7x faster than inflation
    New figures show the cost of tertiary education is rising seven times faster than inflation, putting post-school education out of the reach of many, Opposition Leader Andrew Little says.  “Figures release this week show how much more students or their… ...
    6 days ago
  • Buying Lotto is not an arts funding strategy
    The Government must rethink the way the arts are funded after falling Lotto sales has left the sector with declining resources and increasingly vulnerable, Labour’s Arts, Culture and Heritage spokesperson Jacinda Ardern says.  “Our arts sector is in a sorry… ...
    6 days ago
  • Parents hit in pocket by Government under-funding
    Parents and families are left forking out more and more for their kids’ education as a direct result of Government under-funding, Labour’s Education spokesperson Chris Hipkins says.  “The latest data shows that the cost to families of primary and secondary… ...
    6 days ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    7 days ago
  • Scientists ‘gasping for oxygen’ under National
     Steven Joyce's claims to be creating a science and innovation hub in New Zealand are a sham based on PR fluff, says Labour's Science and Innovation Spokesperson David Cunliffe.  “A damning critique of the science funding model by the New… ...
    7 days ago
  • Water for grass
    Last Saturday, my colleague Eugenie Sage took me for a drive across the Canterbury Plains. I had seen from the air the landuse changes across the plains in recent times; a patchwork of crops and stock raising has been transformed… ...
    GreensBy Catherine Delahunty
    1 week ago
  • Water for grass
    Last Saturday, my colleague Eugenie Sage took me for a drive across the Canterbury Plains. I had seen from the air the landuse changes across the plains in recent times; a patchwork of crops and stock raising has been transformed… ...
    GreensBy Catherine Delahunty
    1 week ago
  • Thousands of invalid votes likely after National refuses to change rules
    National’s refusal to make it easier to enrol and vote could result in tens of thousands of votes continuing to be ruled invalid at general elections, Labour’s Justice spokesperson Jacinda Ardern says. The Justice and Electoral select committee today released… ...
    1 week ago
  • Social Development stats don’t add up
    Today’s figures released by the Ministry of Social Development show that despite a drop in the number of beneficiaries, fewer people are going into paid employment or study, says Labour’s Social Development spokesperson Carmel Sepuloni. ...
    1 week ago
  • Fonterra sticks with high pollution goal of increasing milk supply
    This week’s reported comments by Fonterra chair John Wilson that dairy “volumes were only going to keep increasing”  are troubling. Mr Wilson was supporting a potential renegotiation of the New Zealand-China Free Trade Agreement (FTA). Under the FTA dairy products such… ...
    GreensBy Eugenie Sage
    1 week ago
  • Coleman’s ‘efficiencies’ strangling health
    New Zealand’s district health boards have made ‘efficiencies’ of more than $672 million over the past five years at the expense of everything from new drugs to elective surgery, says Labour’s Health spokesperson Annette King.  “This is a body blow for… ...
    1 week ago
  • Coleman’s ‘efficiencies’ strangling health
    New Zealand’s district health boards have made ‘efficiencies’ of more than $672 million over the past five years at the expense of everything from new drugs to elective surgery, says Labour’s Health spokesperson Annette King.  “This is a body blow for… ...
    1 week ago
  • Record debt to income ratio shows economy out of balance
    National’s complacent attitude to debt to income ratios rising above pre-financial crisis levels will be a concern to many New Zealanders and the Government must take action to rebalance the economy, says Labour’s Finance spokesperson Grant Robertson.   “The borrowing… ...
    1 week ago
  • Record debt to income ratio shows economy out of balance
    National’s complacent attitude to debt to income ratios rising above pre-financial crisis levels will be a concern to many New Zealanders and the Government must take action to rebalance the economy, says Labour’s Finance spokesperson Grant Robertson.   “The borrowing… ...
    1 week ago
  • Government’s tinkering will leave Kiwis cold
    National’s tinkering which will only require some houses to be insulated to 1978 standards will leave many families in rental properties cold, Labour’s Housing spokesperson Phil Twyford says. “In typical arrogant Nick Smith style, changes in the Residential Tenancies Act… ...
    1 week ago
  • Government’s tinkering will leave Kiwis cold
    National’s tinkering which will only require some houses to be insulated to 1978 standards will leave many families in rental properties cold, Labour’s Housing spokesperson Phil Twyford says. “In typical arrogant Nick Smith style, changes in the Residential Tenancies Act… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere