web analytics

S&P says no need for cuts, asset sales

Written By: - Date published: 12:00 pm, February 16th, 2011 - 26 comments
Categories: privatisation, public services - Tags: , ,

As you know, National has been trying to justify selling off our assets and cutting our public services to pay for tax cuts for the rich by saying that debt is at dangerous levels and we risk a credit downgrade. Numerous commentators have shown that’s false. Now, the final nail in the coffin has come from credit ratings agency Standard & Poor’s.

In today’s, Herald is a front-page story that, by some editorial oversight, has been buried in the business section:

Standard & Poor’s surprised many late last year when it put New Zealand’s AA+ credit rating on “credit watch negative” signalling a one-in-three chance of a downgrade within two years.

A downgrade in New Zealand’s credit rating would lead to higher interest rates for government and private sector borrowing…

…unlike Key, Curry said Standard & Poor’s did not regard the state sector as “bloated and inefficient”.

“Generally, we look at the Government in New Zealand as being relatively small and compared to its peers it’s quite efficient.”

Furthermore, Curry said New Zealand was “relatively light” in government related entities.

He noted the Government’s plans for partial asset sales, “but if you look at what’s left, the sorts of government related businesses in New Zealand are quite minimal compared to a lot of other countries”…

… Curry said it was the business and household sectors’ dependence on foreign savings that was driving Standard & Poor’s negative outlook on the country’s credit rating

So, the public service doesn’t have fat to cut. When the government cuts it will be cutting the muscle from our public services. And its not government debt, which is one of the lowest in the world and set to peak in four years, which S&P is worried about but private debt, which the government has worsened by gutting Kiwisaver.

It’s time for Key to just admit why he really wants to sell our assets – so he and the elite can buy them, while using the cash the government gets to pay for more tax cuts for himself and the rich.

26 comments on “S&P says no need for cuts, asset sales”

  1. tc 1

    I’m surprised they even published it……can’t have any material contradicting their idols now can we.

  2. Akldnut 2

    In today’s, Herald is a front-page story that, by some editorial oversight, has been buried in the business section:

    Oversight my arse – more like “editorial outta sight”

    Capcha – latter 😡

  3. Bored 3

    Its what I have said all along: the debt is private, not public. What Key is attempting is to sell our assets to bail out private debt. Larceny, theft, defrauding of the public purse. Crony “capitalism” paid for by you and me.

    On top of that you get the pathetic cheerleaders like the poster boy who runs the NZX asking for the market to be expanded to give better buyer opportunities. The bugger is a functionary who adds no value. His desire for market expansion by way of adding state assets to his listings reflects the truly indifferent performance of those currently listed companies. They surely need more investment in preference to safe little deposits in a good renter (aka state assets).

    Those calling for the sale of state assets need to outed for the “play it safe rentier” class they really are. They have become parasites.

    • Draco T Bastard 3.1

      They haven’t become parasites, they’ve always been parasites. Unfortunately, we’ve been told that the rich “create” wealth for so long now that it’s hard to think outside of that false paradigm.

  4. Draco T Bastard 4

    …which S&P is worried about but private debt, which the government has worsened by gutting Kiwisaver.

    And by lowering wages.

  5. kultur 5

    Its the National Party agenda – it remains unchanged – and unless these monsters are voted out resoundingly at all levels of the electorate … we will keep seeing this revisited.

    Take a lead from Egypt perhaps – lets face it due to Clarks government and continuing policies with these neo liberal nutjobs – we dont have an armed forces capable of stopping anything resembling popular dissent.

    The most shameful thing – is that a Lange led labour Government started this whole mess – and that doesnt let National and Muldoon off either – they provided the springboard for this insane rush toward oblivion and loss of all national identity in my opinion

    • Bored 5.1

      They say you should not speak ill of the dead…..I spoke ill of Lange when he was alive for being stupid enough to be the front man for Douglas and his gang of corporatist freebooters. I still say the same, I will always speak ill of him for this treasonous usurpation of the founding principles of the party he was leader of. Some things are beyond the capacity to forgive.

      • just saying 5.1.1

        Never forgave him, and to his shame, he never faced up to what he did.

        • The Economic Illiteracy Support Group 5.1.1.1

          All of that is true … but I still remember him standing up to Reagan, and his wit and intelligence and sheer pugnacious attitude in the Oxford Union debate. The country stopped to watch him stare down a nuclear superpower, and I think a great many people felt proud to be New Zealanders that day.

          He was a terrible politician but a magnificent statesman. RIP.

          And out of respect to Lange’s memory I will resist the temptation to draw any parallels between him and Key on the world stage.

          • Bored 5.1.1.1.1

            I take your point, on that occasion he was magnificent: such a waste. A meteor fascinating us and drawing us along to the power of his tongue into a hell of his associates making. i cannot say RIP.

            capcha: killing hmmmmm!!!!!!!!

  6. Zaphod Beeblebrox 6

    If your car breaks down do you and you cannot get to work to earn an income. Do you

    1. Pay to get it fixed. Worst case scenario is that you borrow so that you pay it back when you earn some more money.

    2. Flog your car off to someone who wants to make a profit. You then have to lease that car back in order to earn an income. BTW- the new owner won’t care if you get to work and earn an income, so if it breaks down bad luck- they have the lease payments guaranteed when you sell it to them.

    3. Start removing other parts of the car to fix the parts you think are broken. This is because you think you can save money. Of course it will keep breaking down ensuring you quickly become broke from not being able to earn any money because you have run your car into the ground. Don’t worry you can blame the previous owner of the car for your predicament.

    You’d think only a fool would pick options 2 and 3- wouldn’t you?

    • Well, yes you would think only a fool would pick options 2 and 3 – unless the person doing the picking does not really see themselves as a passenger in the car and knows they don’t need the car to earn a living (since they have a private jet) and, in addition, fancies that they – or a good friend of theirs – might be able to buy a profitable piece of it themselves, having never personally paid anything for it in the first place.

  7. Craig Glen Eden 7

    So the Smiley vacuum cleaner salesman was just trying to sell the ripe for picking tax payer more shit. Seriously I cant stand Douglas and Prebble bloody traitors, but this Key is just as bad. The sales job they have done on the NZ voters really takes the cake….and anything else they think they could make money out of. We will have nothing left if this bastard gets in again.

  8. SPC 8

    Key was right first time we do not have a debt problem, but wrong to then not look at investment in creating jobs given our government was in a position to do this. New housing was the obvious choice. Clearly only those also interested in looting the public assets would follow Key in his sell-out of this country. Enemies of the people.

    While I agree with S and P on the public accounts because they are clearly better than most in the OECD and this they could do no more than note – I disagree that we have a credit rating problem with the level of private debt. They are not addressing the quality of that debt – people are paying their mortgage interest on homes and farms – these debts are actually valuable assets that banks are making a profit on, even during a recession. But these people could not tell the difference between junk and AAA rated bonds before the GFC so its no surprise.

    What we have is a problem with borrowing to over-invest in non productive assets and consequent asset bubbles in house and farm values (in the sense it was speculation led farm
    buying debt rather than productivity/environment sustainability improvements on the farm)
    – that will take years to recover from. And related to that a lack of domestic saving to afford these investments and maintain a balance to our BOP. The burden of our mistake still lies with us (it just means we use our earnings to re-pay foeign debt) not our foreign lenders, so our credit rating should not be downgraded.

    After all the level of private foreign debt/even foreign + growing public foreign debt against GDP is lower than it was. That is one reason our dollar is lower (less money coming in from offshore relative to the size of the economy to roll over the private debt loans).

    That fact alone should have the government focused on economic growth – jobs as well as holding down house prices (building more does both) to place us on the path towards 75% GDP foreign debt.

    • The Economic Illiteracy Support Group 8.1

      And remember, the earlier sale of assets is one of the things driving the poor balance of payments situation – the Big Four banks export about $2.5 billion in dividends to Australia every year. If BNZ had not been privatised and sold to the Aussies, 100% of the profits would stay on-shore. Just to state the blindingly obvious, further asset sales will magnify the problem, not fix it.

      • Colonial Viper 8.1.1

        Madness. Why do these people want to gut our country? Foreign investors I can understand, but local ‘Kiwis’ aiding and abetting them???

        • Deadly_NZ 8.1.1.1

          Because they are Wannabe’s. Wanna be rich, wanna be powerful, wanna be remembered, wanna be popular. But GONNA be hated.

          I reckon that Jonkeys kids go to private school just to protect them from the ‘normal children’

  9. Jan 9

    Not only is the public sector relatively small – as the smallest of the OECD countries NZ has arguably a disadvantage in that it needs to employ the same kinds of public service specialists on the same basis as much larger countries. What I mean by this that irrespective of the size of the country there aren’t many economies of scale in the services that are provided by trade negotiators, geo-spatial experts. crown lawyers, legislation draughters, serious fraud office experts, census specialists, curriculum designers for example. NZ has to make the same level of investment for specialist services as other OECD countries of say 60million and 300 million inhabitants but off a much smaller population base.

    • Marty G 9.1

      on a related note, you’ve got to feel sorry for a country like estonia – population 1.5 million – that has to have 1,000 diplomats (to our 400) because of all their additional diplomatic needs with the EU.

  10. Stuart 10

    I agree with Craig and The Economic Illiteracy Support Group and many others about Key selling of the Country.Craig really hit the nail on the head.
    I understand the Maoris will get some land deal settled shortly and then the Maoris will get the land sold to overseas investors.
    I was informed that some of the land contains Iron Sands which contains good deposits of Titanium and this will possibly processed by a Steel Mill which will be owned by a Overseas Companies.
    I beleive Key is still involved in the World banking System and guess who will gain out of this. Well Key and his rich prick mates will.
    The Pike mine disastor could of be a front to open cast the coal reserves.
    Key never investigated the report on the mines about saftey he had before him.
    Key has got to go.

Links to post

Recent Comments

Recent Posts

  • National’s cuts shave $100K off KiwiSaver by retirement
    New analysis shows National’s constant cuts to KiwiSaver will reduce the average worker’s retirement savings by $100,000 over their working life, Leader of the Opposition Andrew Little says. “The former Labour Government launched KiwiSaver nine years ago today to boost ...
    4 hours ago
  • TPK struggles to measure Whānau Ora outcomes
    The Government needs to explain why so many vulnerable whanau are falling through the cracks, Labour’s Whānau Ora spokesperson Nanaia Mahuta says. The Minister of Māori Development Te Ururoa Flavell attended the Māori Affairs Select Committee to highlight “gains” – ...
    6 hours ago
  • EY: TPP stamp duties on foreigners may have to apply to Kiwis
    The Government’s claim that a TPP-enabled tax on foreign buyers would amount to a ban has been exposed as folly by tax experts, who say that in most cases a tax would apply to Kiwi buyers too, says Labour’s Trade ...
    1 day ago
  • Project 300 short on facts
    A Minister’s pet scheme to employ 300 disabled people in Christchurch seems to be short on facts, says Labour’s Disability Issues spokesperson Poto Williams.  “Nicky Wagner cannot provide solid evidence to show that her much vaunted Project 300 has actually ...
    1 day ago
  • Who are they going to call?
    A cry for help from New Zealand’s longest-running crisis line highlights chronic underfunding of the sector by the Government, Labour’s Health spokesperson Annette King says. “Lifeline is THE go-to helpline for people in crisis, taking up to 180,000 calls each ...
    1 day ago
  • Five months too long for homeless to wait
    New figures revealing homeless people registered with Work and Income are waiting an average of 155 days to be housed shows the Government is totally overwhelmed by the housing crisis, Labour’s Social Development spokesperson Carmel Sepuloni says. “What’s worse is ...
    2 days ago
  • Minister in cloud cuckoo land
    Hekia Parata needs a very big reality check if she truly believes every parent has the choice of sending their child to a private school, Labour’s Education spokesperson Chris Hipkins says. Questioned in the House today about plans to pump ...
    2 days ago
  • Convention centre failure means years of uncertainty for CBD
    The failure of Gerry Brownlee’s planned convention centre deal leaves Christchurch facing uncertainty about when activity will be restored to the CBD, says Labour’s Canterbury spokesperson Megan Woods. “As one of the CBD’s major anchor projects, the convention centre complex ...
    2 days ago
  • PCE proves water quality still deteriorating
    The PCE State of the Environment Report shows that river water quality is continuing to get worse across large parts of New Zealand, says Labour’s Environment and Water spokesperson David Parker. “Water quality has deteriorated in Canterbury, Central Otago, Auckland, ...
    2 days ago
  • Families with new babies victims of today’s veto
    Families with new babies are the victims of an historical “first” for the New Zealand Parliament today. “For the first time ever, a Bill will have a third reading debate and no vote will be taken at the end because ...
    2 days ago
  • Crime on the rise…again!
    The Police Minister’s contention that Police have enough resources to meet the expectations of New Zealand communities is not reflected in the Police’s own statistics, says Labour’s Police spokesperson Stuart Nash.  “Yet again, reported burglaries have increased in every region ...
    2 days ago
  • Private schools beneficiaries of extra cash
    Plans to give more taxpayer money to private schools at a time when state schools are struggling to make ends meet says everything about the National Government’s twisted priorities, Labour’s Education spokesperson Chris Hipkins says. “Not only did this year’s ...
    3 days ago
  • Inequality getting worse under National
    Inequality is getting worse under National with almost 60 per cent of the wealth in this country concentrated in the hands of the top 10 per cent according to Statistics NZ figures released today, says Labour’s Finance spokesperson Grant Robertson. ...
    3 days ago
  • Government freezes elderly out of insulation subsidy
    Government cuts to the Warm Up New Zealand insulation subsidy means it will now only be available for rental properties and could leave many elderly homeowners cold this winter, Opposition Leader Andrew Little says. “In this year’s Budget the Government ...
    4 days ago
  • Shewan report delivers rebuke to National
    John Shewan’s report into foreign trusts is a rebuke to John Key and the National Party who have protected an industry that has damaged New Zealand’s reputation, says Labour’s Finance spokesperson Grant Robertson. “Three years ago the Inland Revenue Department ...
    4 days ago
  • Auckland Airport rail analysis must be made public
    The Government should publicly release its detailed analysis of rail to Auckland Airport before it closes off options, so the public can have an informed debate, says Labour’s Auckland Issues spokesperson Phil Twyford. The Transport Agency today said it is ...
    4 days ago
  • Minister approved OIO consent despite death and investigations
    Louise Upston must say if she knew Intueri was being prosecuted for the death of a student and under a funding investigation when she approved its overseas investment consent to buy another education provider, says Labour’s Land Information and Associate ...
    5 days ago
  • Brexit vote costs NZ effective EU voice
    Despite being extremely close the result of the referendum in Britain reflects the majority voice, Labour’s Foreign Affairs spokesperson David Shearer says. “While we respect the decision to leave the EU, it goes without saying the move will usher in ...
    7 days ago
  • Pasifika Education Centre doomed
    The Pasifika Education Centre appears doomed to close down this December, says Labour’s Pacific Island Affairs spokesperson Su’a William Sio  “In a written question I asked the Minister whether he would put a bid in for more money. His answer ...
    1 week ago
  • Onetai Station review a shameful whitewash
    A report released today on the Overseas Investment Office’s (OIO) good character test is a whitewash that does nothing to improve New Zealand’s overseas investment regime, says Labour’s Land Information spokesperson David Cunliffe. “The review of the good character test ...
    1 week ago
  • We need a national strategy to end homelessness now
    Long before I entered Parliament, housing and homelessness were issues dear to my heart. I know from personal experience just how hard it is to find an affordable home in Auckland. In my maiden speech, I talked about how when ...
    GreensBy Marama Davidson
    1 week ago
  • Capital feels a chill economic wind
      Wellington is on the cusp of recession with a sharp fall in economic confidence in the latest Westpac McDermott Miller confidence survey, says Labour’s Regional Development spokesperson David Clark.  “Economic confidence amongst Wellingtonians has dropped 12% in the past ...
    1 week ago
  • Dive school rort took six years to dredge up
    News that yet another private training establishment (PTE) has rorted the Government’s tertiary funding system since 2009 shows that Steven Joyce has no control of the sector, says Labour’s Associate Education (Tertiary) spokesperson David Cunliffe. “Like Agribusiness Training and Taratahi, ...
    1 week ago
  • National’s housing crisis hitting renters hard
    National’s ongoing housing crisis is causing massive rental increases, with Auckland renters being hit the hardest, says Labour’s Housing spokesperson Phil Twyford. ...
    1 week ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    1 week ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    1 week ago
  • Government holds Northland back
    New information shows Northland remains the most economically depressed region in New Zealand, says Labour’s Regional Development spokesperson David Clark. “The latest Westpac McDermott Miller regional survey found that more Northlanders believe their local economy will deteriorate this year than ...
    1 week ago
  • Rebstock report into MFAT leaks a disgrace
    An Ombudsman’s report on the Paul Rebstock investigation into MFAT leaks shows the two diplomats at the centre of the case were treated disgracefully, says Labour’s State Services spokesperson Kris Faafoi.  “The Ombudsman says one of the diplomats Derek Leask ...
    1 week ago
  • More families forced to turn to food banks for meals
    Increasing numbers of families are having to go to food banks just to put a meal on the table, according to a new report that should shame the Government into action, says Labour’s Social Development spokesperson Carmel Sepuloni. ...
    1 week ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    1 week ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    1 week ago
  • Aussie reforms signal trouble ahead for school funding plan
    Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. “The signaled return to bulk funding is ...
    1 week ago
  • Toxic Sites – the down low on the go slow
    In  2011, I negotiated an agreement with the National Government to advance work on cleaning up contaminated sites across the country. This included establishing a National Register of the ten worst sites where the creators of the problem could not ...
    GreensBy Catherine Delahunty
    1 week ago
  • Aucklanders face new motorway tax of up to $2500 a year
    The Government wants to tax Aucklanders thousands of dollars a year just to use the motorway network, says Labour’s Auckland Issues spokesperson Phil Twyford. “Officials estimate the average city commute is 11.8km. This means for the average Aucklander commuting five ...
    1 week ago
  • 15 corrupt bank managers identified in student fraud
    New information show 15 bank managers in India have been identified by Immigration New Zealand as presenting fraudulent documents on behalf of foreign students studying here, Labour’s Immigration spokesperson Iain Lees-Galloway says. “Documents obtained by Labour under the Official Information ...
    1 week ago
  • National leaves Kiwi savers the most vulnerable in OECD
    News last week that Israel’s Finance Minister will insure savers’ bank deposits means New Zealand will be left as the only country in the OECD that has no deposit insurance to protect savers’ funds should a bank fail. Most Kiwis ...
    GreensBy James Shaw
    1 week ago
  • Comprehensive plan for future of work needed
    A Massey University study showing many New Zealanders are unaware of the increasing role of automation in their workplace, highlights the need for a comprehensive plan for the future of work, says Grant Robertson, Chair of Labour’s Future of Work ...
    1 week ago
  • Another National Government failure: 90 day work trials
    On Friday last week, the Treasury released a report by MOTU economic consultants into the effectiveness of the controversial 90-day work trial legislation. The report found that there was “no evidence that the policy affected the number of hires by ...
    GreensBy Denise Roche
    1 week ago
  • Iraq mission extension case not made
    The Prime Minister has not made the case for extending the Iraq deployment another 18 months nor the expansion of their mission, says Opposition Leader Andrew Little.  “Labour originally opposed the deployment because the Iraqi Army’s track record was poor, ...
    2 weeks ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Melanoma deaths could be avoided by an early access scheme
      The tragic death of Dunedin’s Graeme Dore from advanced Melanoma underlines the cruelty of this Government in promising a treatment but delaying for months, says Labour’s Health Spokesperson Annette King.  “Graeme was diagnosed with Melanoma last year. He used ...
    2 weeks ago
  • Assessing the Defence White Paper
    The Government’s recently released Defence White Paper has raised questions again about New Zealand’s defence priorities, and in particular the level and nature of public funding on defensive capabilities. The Green Party has a longstanding belief that priority must be ...
    GreensBy Kennedy Graham
    2 weeks ago
  • Kiwis’ confidence drops again: Economy needs a boost
    Westpac’s consumer confidence survey has fallen for the seventh time in nine quarters, with middle income households ‘increasingly worried about where the economy is heading over the next few years’, says Labour’s Finance spokesperson Grant Robertson. “This survey is a ...
    2 weeks ago
  • Relocation grant simply kicks can down the road
    The response by state house tenants and social agencies to the Government’s rushed plan to shift families out of Auckland tells us what we already knew – this is no answer to the chronic housing shortage, Opposition Leader Andrew Little ...
    2 weeks ago
  • Peace hīkoi to Parihaka
    On Friday a Green crew walked with the peace hīkoi from Ōkato to Parihaka. Some of us were from Parliament and some were party members from Taranaki and further afield. It was a cloudy but gentle day and at one ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Children’s Commissioner right to worry about CYF transition
    The Government must listen to the Children’s Commissioner’s concerns that young people under CYF care could be ‘negatively impacted’ as the new agency’s reforms become reality, says Labour’s Children’s spokesperson Jacinda Ardern. “Dr Russell Wills has used the second annual ...
    2 weeks ago
  • Bill English exaggerates PPL costs to justify veto
    The Finance Minister has used trumped-up costings to justify a financial veto against parents having 26 weeks paid parental leave, says Labour MP Sue Moroney. “Bill English’s assertion on RNZ yesterday that the measure would cost an extra $280 million ...
    2 weeks ago
  • Government must refund overcharged motorists
    Labour is calling on the Government to refund motor registration fees to three-quarters of a million Kiwi motorists whose vehicles were wrongly classified under National’s shambolic ACC motor vehicle risk rating system, Labour’s ACC spokesperson Sue Moroney says.“Minister Kaye’s ridiculous ...
    2 weeks ago
  • 90-day work trials an unfair failure which must change
    A new Treasury report shows the Government’s 90-day trials haven’t helped businesses and are inherently unfair, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. “The Motu report found that 90-day trial periods had no impact on overall employment and did not ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere