web analytics
The Standard

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

  • Stalled TPP chance for wider discussion
    Failure to get the TPP agreement across the line gives New Zealanders an opportunity to put more pressure on the Government not to sign away our sovereignty, Opposition leader Andrew Little says.“New Zealand land, dairy and medicines are up for… ...
    18 hours ago
  • Will poor TPP dairy outcome stop National selling out our homes?
    After failing to protect the right to stop foreign speculators buying our houses it’s clear the Government is not going to get wins on dairy in their TPP negotiations either, Labour’s Trade and Export spokesperson David Parker says. “Labour has… ...
    2 days ago
  • Feeling aspirational
    Yesterday the Rich List showed the number of people who have over 50 million of wealth had increased by another 15 people since last year. Collectively this group are now worth 55 billion, an increase of over 7% since last… ...
    GreensBy Jan Logie MP
    2 days ago
  • Feeling aspirational
    Yesterday the Rich List showed the number of people who have over 50 million of wealth had increased by another 15 people since last year. Collectively this group are now worth 55 billion, an increase of over 7% since last… ...
    GreensBy Jan Logie MP
    2 days ago
  • Feeling aspirational
    Yesterday the Rich List showed the number of people who have over 50 million of wealth had increased by another 15 people since last year. Collectively this group are now worth 55 billion, an increase of over 7% since last… ...
    GreensBy Jan Logie MP
    2 days ago
  • Bennett’s legacy a test for Tolley
    Former Social Development Minister Paula Bennett has been thrown under the bus by her successor after its been suggested that Ms Bennett gave the green light to an ‘unethical’ observational study of high-risk children, Labour Children’s spokesperson Jacinda Ardern says.… ...
    2 days ago
  • Submission to Greater Christchurch Earthquake Recovery: Transition to Rege...
    Thank you for the opportunity to contribute to the Draft Transition Recovery Plan on behalf of the New Zealand Labour Party.  It is important that the citizens of Canterbury have a voice in the governance of the next step of… ...
    2 days ago
  • Troubled school wanted $25,000 dollars to fence farm
    The troubled Whangaruru charter school asked Hekia Parata for $25,000 to fence the school farm at the expense of spending on teaching, Labour’s Education spokesperson Chris Hipkins says. “This unbelievable revelation comes hard on the heels of Hekia Parata’s decision to… ...
    3 days ago
  • Troubled school wanted $25,000 dollars to fence farm
    The troubled Whangaruru charter school asked Hekia Parata for $25,000 to fence the school farm at the expense of spending on teaching, Labour’s Education spokesperson Chris Hipkins says. “This unbelievable revelation comes hard on the heels of Hekia Parata’s decision to… ...
    3 days ago
  • Government report on sexual & family violence a good first step
    Yesterday the Government released the cabinet paper on progress on the work programme of the Ministerial Group on Family Violence and Sexual Violence. Along with the Human Rights Commissioner and Women’s Refuge, I really welcome the report. I’m relieved that… ...
    GreensBy Jan Logie MP
    3 days ago
  • Government report on sexual & family violence a good first step
    Yesterday the Government released the cabinet paper on progress on the work programme of the Ministerial Group on Family Violence and Sexual Violence. Along with the Human Rights Commissioner and Women’s Refuge, I really welcome the report. I’m relieved that… ...
    GreensBy Jan Logie MP
    3 days ago
  • Prisoner voting disqualification and the Bill of Rights Act
    In 2010, National rammed the Electoral (Disqualification of Sentenced Prisoners) Amendment Bill through Parliament. Paul Quinn’s Member’s Bill existed because Paul Quinn thought anyone who’d been imprisoned was a serious offender, and serious offenders had ‘forfeited’ their right to vote.… ...
    GreensBy David Clendon MP
    3 days ago
  • Mainfreight ‘appalled’ by Government’s rail madness
    The Government has been given a serve by New Zealand-based international trucking and logistics firm Mainfreight which says it lacks a national transport strategy, and has treated rail badly, Labour's Transport spokesperson Phil Twyford says. The company has told shareholders it… ...
    4 days ago
  • National’s Health and Safety Reform Bill: less safety and fewer rights at...
    The New Zealand Council of Trade Unions is embarking on a campaign to fight the changes that weaken the Health and Safety Reform bill. As part of the campaign the CTU has organised vigils with the display of 291 crosses… ...
    GreensBy Denise Roche MP
    4 days ago
  • All options need to be put on meat sector table
    Farmers must be given every assurance that all potential risks have been considered before Silver Fern Farms opens its door to foreign equity, Labour’s Primary Industries spokesperson Damien O’Connor says. “The ongoing saga involving the meat sector and amalgamation has… ...
    4 days ago
  • Flag the referendum if 50% or more don’t vote
    Labour has moved to have the second flag referendum canned if the first attracts fewer than half the eligible number of voters, Opposition Leader Andrew Little says. “John Key has already wasted more than $8 million on his vanity project… ...
    4 days ago
  • 90,000 cars reclassified in botched ACC ratings
    New figures obtained by Labour show the ACC Minister’s botched motor vehicle levy system has resulted in 90,000 vehicles having to be reclassified so far – at a cost of $6 million, Labour’s ACC spokesperson Sue Moroney says. “Nikki Kaye’s… ...
    4 days ago
  • Brutal health cuts confirmed, crucial services suffer
    Chronic under-funding by National has seen the health budget slashed by $1.7 billion in just five years, Labour’s Health spokesperson Annette King says. A report by Infometrics, commissioned by Labour, shows health funding has been cut in four of the… ...
    5 days ago
  • Meth ring under Serco’s nose
    The news that two Serco inmates have been arrested for helping to run a methamphetamine ring from prison should be the final straw and see their contract cancelled, says Labour’s Corrections Spokesperson Kelvin Davis. “National has stood by Serco despite… ...
    5 days ago
  • Ministers failing women and their own targets
    New figures showing just five Ministers have met the Government’s own reduced targets for appointing women to state sector boards is evidence National is failing Kiwi women, Labour’s Women’s Affairs spokesperson Sue Moroney says. “The Ministry for Women’s 2015 Gender… ...
    5 days ago
  • Charges up for some as funding up for grabs
    A proposal being considered by the Government would see some people having to pay more for health care and district health boards forced to fight amongst themselves to fund regional health services, Labour’s Health spokesperson Annette King says “Information leaked… ...
    5 days ago
  • Stop experimenting on kids
    The trouble with the Charter school model is that it is a publicly funded experiment on children. The National Government has consistently put its desire to open charter schools ahead of the safety of the children in them, ignoring repeated… ...
    GreensBy Catherine Delahunty MP
    6 days ago
  • Bank puts the squeeze on mid Canterbury farmers
    News that an unnamed bank in Ashburton has put a receiver on notice over financially vulnerable farmers will send a chill through rural New Zealand, says Labour’s Finance Spokesperson Grant Robertson. “The Government needs to work with  New Zealand’s banks… ...
    6 days ago
  • Key is trading away New Zealand land and homes
    John Key yesterday admitted what National dishonestly refused to confirm in Parliament last week – he is trading away New Zealand’s right to control who buys our homes and land, says Opposition leader Andrew Little. “The Prime Minister must now… ...
    6 days ago
  • Razor gang takes scalpel to health
    Plans by the Government to take a scalpel to democratically elected health boards are deceitful and underhand, coming just months after an election during which they were never signalled, Labour’s Health spokesperson Annette King says “Leaked documents reveals a radical… ...
    6 days ago
  • Spin lines show a department in chaos
    Corrections Spin Doctors sending their place holder lines to journalists instead of responding to serious allegations shows the scale of chaos at the department over the Serco scandal, says Labour’s Corrections Spokesperson Kelvin Davis. “As more and more serious allegations… ...
    1 week ago
  • Court ruling shows law should never have been passed
    A High Court ruling that a law banning prisoners from voting is inconsistent with a properly functioning democracy should be a wake-up call for the Government, Labour’s Justice spokesperson Jacinda Ardern says. In an unprecedented ruling Justice Paul Heath has… ...
    1 week ago
  • Judicial Review Gamble Pays Off for Problem Gambling Foundation
    Congratulations are due to the Problem Gambling Foundation (PGFNZ) who have won their legal case around how the Ministry of Health decided to award their contracts for problem gambling services to another service provider. Congratulations are due not just for… ...
    GreensBy Denise Roche MP
    1 week ago
  • Environmental Protection Agency appoints GE advocate as new CEO
    This week, the Environmental Protection Authority Amendment Bill passed its first reading in Parliament. The Bill puts protection of the environment into the core purpose of the Environmental Protection Authority. This month, Dr Allan Freeth, the former Chief Executive of… ...
    GreensBy Steffan Browning MP
    1 week ago
  • Charanpreet Dhaliwal death demands genuine health and safety reform
    The killing of a security guard on his first night on the job is exactly the kind of incident that National’s watered-down health and safety bill won’t prevent, says Te Atatu MP Phil Twyford. The coronial inquest into 22-year-old Charanpreet… ...
    1 week ago
  • Arbitrary sanctions hit children hardest
    Increasing numbers of single parents are being penalised under a regime that is overly focussed on sanctions rather than getting more people into work, Labour’s Social Development spokesperson Carmel Sepuloni says. “Figures, obtained through Parliamentary questions show 3000 more sanctions,… ...
    1 week ago
  • Hekia just won’t face the facts
    Hekia Parata’s decision to keep troubled Whangaruru Charter school open despite being presented with a catalogue of failure defies belief, goes against official advice and breaks a Government promise to close these schools if they were failing, says Labour’s Education… ...
    1 week ago
  • No more silent witnesses
    Yesterday I attended the launch of a new initiative developed by and for Asian, Middle eastern and African youth to support young people to name and get support if there is domestic violence at home. The impact on children of… ...
    GreensBy Jan Logie MP
    1 week ago
  • Single Use Plastic Bags campaign – Some wins and some green-washing
    As we near the end of Plastic Free July I’m nearing the conclusion of my Say No To Plastic Bag tour when I will have completed all 30 of my public meetings. The campaign was designed to work with community… ...
    GreensBy Denise Roche MP
    1 week ago
  • Single Use Plastic Bags campaign – Some wins and some green-washing
    As we near the end of Plastic Free July I’m nearing the conclusion of my Say No To Plastic Bag tour when I will have completed all 30 of my public meetings. The campaign was designed to work with community… ...
    GreensBy Denise Roche MP
    1 week ago
  • Minister must take responsibility for problem gambling debacle
    The Government’s handling of the Problem Gambling Foundation’s axing in a cost-cutting exercise has been ham-fisted and harmful to some of the most vulnerable people in society, Associate Health Labour spokesperson David Clark says.“Today’s court ruling overturning the axing of… ...
    1 week ago
  • Labour will not support TPP if it undermines NZ sovereignty
    The Labour Party will not support the Trans Pacific Partnership Agreement unless key protections for New Zealanders are met, Opposition leader Andrew Little says.“Labour supports free trade. However, we will not support a TPP agreement that undermines New Zealand’s sovereignty. ...
    1 week ago
  • Coleman can’t ignore latest warnings
    Resident doctors have advised that a severe staffing shortage at North Shore Hospital is putting patients’ lives at risk, Labour’s Health spokesperson Annette King says. “They say a mismatch between staffing levels and patient workloads at North Shore has… ...
    1 week ago
  • ACC must remove barriers to appeals
    The Government must prioritise removing barriers to justice for ACC claimants following a damning report by Acclaim Otago, Labour’s ACC spokesperson Sue Moroney says. “ACC Minister Nikki Kaye must urgently scrap her flawed plan to remove claimant’s right to redress… ...
    1 week ago
  • Six months’ paid parental leave back on the agenda
    Six months’ paid parental leave is back on the agenda and a step closer to reality for Kiwi parents after Labour’s new Member’s Bill was pulled from today’s ballot, the Bill’s sponsor and Labour MP Sue Moroney says. “My Bill… ...
    1 week ago
  • Sole parents at risk of having no income
    New requirements for sole parents to undertake a reapplication process after a year is likely to mean a large number will face benefit cancellations, but not because they have obtained work, Labour’s Social Development spokesperson Carmel Sepuloni says. “Increasing numbers… ...
    1 week ago
  • Juking the Welfare Stats Again
    Last week the government’s major initiative to combat child poverty (a paltry $25 increase) was exposed for what it is, a lie. The Government, through the Budget this year, claims to be engaging in the child poverty debate, but instead,… ...
    GreensBy Jan Logie MP
    1 week ago
  • OCR rate cut a result of flagging economy
    The Reserve Bank's decision to cut the Official Cash Rate to 3 per cent shows there is no encore for the so-called 'rock star' economy, says Labour's Finance Spokesperson Grant Robertson.   "Today's interest rate cut comes off the back… ...
    1 week ago
  • Reboot to an innovation economy, an Internet economy and a clean economy
    In my short 33 years on this planet we’ve seen phenomenal technological, economic and social change, and it’s realistic to expect the next 33 will see even more, even faster change. You can see it in the non-descript warehouse near… ...
    GreensBy Gareth Hughes MP
    2 weeks ago
  • Bill that puts the environment into the EPA passes first hurdle
    A Bill that puts the environment squarely into legislation governing the Environmental Protection Authority passed its first reading today, says Meka Whaitiri.  “I introduced this member’s bill as the current law doesn’t actually make protecting the environment a goal of… ...
    2 weeks ago
  • Key’s KiwiSaver deception exposed
    KiwiSaver statistics released today expose John Key's claim that the cutting of the kickstart payment "will not make a blind bit of difference to the number of people who join KiwiSaver” to be duplicitous, says Labour Finance Spokesperson Grant Robertson.  “Official… ...
    2 weeks ago
  • Minimum Wage Amendment Bill to protect contractors
    All New Zealanders should be treated fairly at work. Currently, the law allows non-employment relationships to be used to get around the minimum wage. This is unfair, says Labour MP David Parker. “The Minimum Wage (Contractor Remuneration) Amendment Bill, a… ...
    2 weeks ago
  • Bill raises bar to protect Kiwi farmland
    The Government’s rubber-stamping of every one of the nearly 400 applications from overseas investors to buy New Zealand farm land over the last three years proves tougher laws are needed, Labour MP Phil Goff says. “In the last term of… ...
    2 weeks ago
  • Costly flag referendum should be dumped
    John Key must ditch the flag referendum before any more taxpayer money is wasted, Opposition Leader Andrew Little says. “Millions of dollars could be saved if the Prime Minister called a halt to this hugely expensive, and highly unpopular, vanity… ...
    2 weeks ago
  • Nats letting Serco off scot free
    Government members have prevented Parliament’s Law and Order select committee from getting answers out of a senior Serco director about the fight clubs being run at Mt Eden prisons, says Labour’s Corrections Spokesperson Kelvin Davis. “At today’s Law and Order… ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere