Does Key want to nationalise Chorus Soviet style?
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2:46 pm, November 5th, 2013 - 62 comments
Categories: capitalism, Economy, john key, national, same old national, telecommunications -
Tags: Axe the Copper Tax
I blogged previously about Chorus and the Commerce Commission. The draft decision from the Commission would have seen a significant reduction in broadband prices. Chorus complained, Amy Adams brought out a discussion paper suggesting the Government would not follow the decision, and John Key suggested that Chorus could go broke.
The opposition to the proposed intervention came from an interesting variety of sources. Opponents include well known communist sympathisers Matthew Hooton and David Farrar who have both publicly opposed the proposal. Farrar said about the suggestion that Chorus would go broke:
But the reality is that Chorus would not go bust under the draft determination. They do not say they will. The market analysts do not say they will. Yes the draft determination will adversely impact their profitability and dividends, and that is bad for Chorus shareholders like myself. But that is one of the risks of investing in regulated monopolies.
The Commerce Commission has now released its final determination on the broadband charge for Chorus and the net result is a slight lessening of the reduction in charges.
Instead of celebrating Chorus have come out and hinted that its future viability may be at risk. It has said that the ability to complete the roll out will be compromised. It has said that unless the Government steps in now, it will discuss the matter with its lenders and rating agencies, notify its bank of a material adverse effect which could trigger a default, and “discuss with the Crown whether Chorus is still a credible UFB partner in the way intended at demerger and how Chorus might deliver the balance of its programme despite the very material funding gap in Chorus’ business implied by [the Commerce Commission] decision.”
But as I noted before Chorus’s problems appear to relate to the tender that it signed with the Government, and that the Commerce Commission review has been in the pipeline for some time.
I understand that Amy Adams has said that the Government will now sit down with Chorus to look at the numbers and come back with some options.
Pauls Brislen, head of TUANZ has come out and castigated the Government for its handling of the issue. He has released a press statement containing the following:
“Our view is that the Commerce Commission has applied Steven Joyce’s 2011 telecommunications legislation correctly and, at $34.44 per month, has come up with a fair price.”
Mr Brislen urged the government to let the benefits of the Commerce Commission ruling flow through to Kiwi households and businesses.
“Any price the government might now propose above $34.44 per month would represent an obvious tax on Kiwi households and businesses in order to subsidise Chorus, an already highly profitable monopolist. Even $35.50 would transfer over a million dollars a month from Kiwi households and businesses to Chorus shareholders, to no benefit to anyone else.”
Mr Brislen said any suggestion today’s price decision could have an impact on the rollout of the government’s ultra-fast broadband initiative (UFB) was “plain wrong”.
“The government has contracts with Chorus and others to build the new world-class fibre broadband network. Ministers should tell them to just get on and do it.
“The 30% of New Zealanders who are expected to want UFB by 2020 and the 75% of Kiwis who will eventually have access to it want it built to contract, while those who will never access to it obviously don’t want to pay a copper tax,” he said.
Mr Brislen said it would be wrong for there to be further confidential calls between Chorus chair Sue Sheldon and the prime minister on the matter.
“There must be transparency in the dealings between regulated monopolists and the government.”
The behaviour of this Government is extraordinary.
It sells off well functioning strategically important assets. It mismanages others. It has mucked up the broadband regulatory process and the roll out of fibre that badly that the entity responsible for the roll out is seeking to back out. It appears to now be doing a shonky back room deal so that a large Corporate can maintain its profitability. The quality of the decision making in each of these areas is appallingly bad.
If ever you wanted to see what a mess the Government is in on this issue then watch the following question from parliament. And enjoy …
Update: David Farrar sets out very elegantly why the Government should not directly deal with Chorus and should instead take its time on this issue.
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- Release: Over 15,000 sign Labour’s open letter to Luxon
As the hīkoi to Parliament continues, Labour has sent an open letter to Prime Minister Christopher Luxon in a last-ditch attempt to get him to kill the Treaty Principles Bill. ...1 week ago
- Fast Track Bill threatens environment, climate and reputation
The fast-track legislation passing its second reading in Parliament is another step towards environmental ruin. ...1 week ago
- Greens join King’s Counsel in calling for Treaty Principles Bill to be abandoned
The Prime Minister must answer the call from a group of senior lawyers of the King’s Counsel to abandon the divisive Treaty Principles Bill. ...1 week ago
- Chris Hipkins’ apology statement to state and faith-based care survivors
...1 week ago
- Release: Labour formally apologises to state and faith-based care survivors
Labour joins with the Government in unreservedly apologising for the abuse, neglect and trauma including torture in state and faith-based care and for ignoring the voices of survivors for too long. ...1 week ago
- Green Party stands in support of survivors of abuse in care
Today, the Green Party stands alongside the survivors of abuse in state care and faith-based care as the Government issues an historic apology. ...1 week ago
- Green Party calls for conscience vote on Treaty Principles Bill
The Green Party has written to the Speaker of the House requesting he enable a personal vote on the Treaty Principles Bill. ...2 weeks ago
- Govt move to exclude journalist risks chilling effect
The Green Party is alarmed by the Government’s move to exclude a journalist from covering this week’s apology for the survivors of abuse in state and faith-based care. ...2 weeks ago
- Without action, an apology will be empty air
For tomorrow’s apology to survivors of abuse in state and faith-based care to hold any water, the Government must not pursue the same policies that drove the abuse in the first place. ...2 weeks ago
- Release: Concerns remain over tobacco interference
Concerns about the tobacco industry’s ability to interfere in government policy making remain, despite the inability of the Office of the Auditor-General to investigate the Government’s decision to halve the excise tax on heated tobacco products. ...2 weeks ago
- Urgent wake-up call on climate
The Climate Change Commission’s latest advice indicates Aotearoa needs to be stepping up on climate action. ...2 weeks ago
- Green MP’s Meme-ber’s Bill set to save the world
Break out the punchlines and dust off your meme folder: Green Party MP Kahurangi Carter’s Copyright (Parody and Satire) Amendment Bill was pulled from the Ballot yesterday. ...2 weeks ago
- Release: Poroporoaki: Ta Robert (Bom) Gillies
Kua hinga te manawa kairākau o Te Rua Tekau Ma Waru Tiwhatiwha te po! Kakarauru i te po! Ka rapuhia kei hea koe kua riro! Haere e te Ika a Whiro ki o tini hoa kua ngaro atu ki te Pō ...2 weeks ago
- Labour, Greens and Te Pāti Māori call on the Prime Minister to block the Treaty Principles Bill
The opposition parties stand united for an Aotearoa that honours Te Tiriti, rather than seeking to rewrite it. Labour, the Greens and Te Pāti Māori are working together against the Government’s divisive Treaty Principles Bill. ...2 weeks ago
- Release: Labour, Greens and Te Pāti Māori call on the Prime Minister to block the Treaty Principle...
The opposition parties stand united for an Aotearoa that honours Te Tiriti, rather than seeking to rewrite it. Labour, the Greens and Te Pāti Māori are working together against the Government’s divisive Treaty Principles Bill. ...2 weeks ago
- NZ must pursue independent foreign policy
The Green Party says the need is greater than ever for Aotearoa New Zealand to pursue an independent foreign policy. ...2 weeks ago
- Record number of submissions received on granny flat proposal
Nearly 2,000 submissions have been received on the Government’s proposals aimed at making it easier to build a granny flat of up to 60 square metres without a resource or building consent, RMA Reform Minister Chris Bishop and Building and Construction Minister Chris Penk say. “This is the highest number ...1 hour ago - District Court Judge appointed
Attorney-General Judith Collins today announced the appointment of Rebecca Guthrie as a District Court Judge. Judge Guthrie was admitted to the bar in 1997 following her graduation from the University of Canterbury in 1996 (LLB, BA). She commenced her legal career in Hastings in 1997 before moving to London in ...2 hours ago
- Appointments strengthen Predator Free 2050
The latest Predator Free 2050 Board appointments will help to strengthen biodiversity efforts across Aotearoa New Zealand, Conservation Minister Tama Potaka says. Mr Potaka today announced two appointments to the Board of Directors of Predator Free 2050 Limited, a key player in the wider Predator Free 2050 Programme. “The Predator ...3 hours ago
- New facility in Christchurch will improve the lives of young New Zealanders
Mental Health Minister Matt Doocey today opened Kahurangi, an innovative and much-needed facility for Canterbury’s Child, Adolescent, and Family Mental Health Services. “The new state of the art outpatient facility opened today will be a gamechanger for the way mental health is delivered for young people in Canterbury,” says Mr ...3 hours ago
- Driver safety screens to be installed on Auckland buses
Transport Minister Simeon Brown has welcomed news from the NZ Transport Agency (NZTA) that bus driver protection screens will be installed across Auckland’s bus fleet by 2026.“The Government is committed to improving the safety of working environments for bus drivers, and Budget 2024 allocated $15 million of Crown funding over ...4 hours ago
- Government action provides Southland farmers more time to meet plan requirements
The Government is taking action to ensure Southland farmers and growers are not affected by unreasonable regional farm plan deadlines, Agriculture Minister Todd McClay, Environment Minister Penny Simmonds and Associate Environment Minister Andrew Hoggard say.“Cabinet has agreed to provide more time for farmers and growers to comply with regional rules ...20 hours ago
- Bill reaffirms Government’s commitment to crack down on serious youth offending
The Oranga Tamariki (Responding to Serious Youth Offending) Bill had its first reading at Parliament today. The Bill reaffirms the Government’s commitment to crack down on serious youth offending, Minister for Children Karen Chhour says. “In recent years we have seen an unacceptable spike in youth offending. “This Bill makes ...21 hours ago
- Critical milestones for earthquake buildings review
Fairer, more sensible rules about managing earthquake risks are a step closer with the passing of legislation and the appointment of an independent chair to provide expert advice, Minister for Building and Construction Chris Penk says. “The Government is committed to reinvigorating our cities and regions to support economic growth, ...21 hours ago
- State of the art radiology machine for Auckland
People in Northland and Auckland will benefit from a new machine for cancer treatment installed at the Regional Cancer and Blood Service at Auckland City Hospital. The MV5 linear accelerator, or LINAC machine, officially opened today targets cancer tumours with pinpoint accuracy. Health Minister Dr Shane Reti says this new, ...21 hours ago
- Foreign Minister to visit Europe
Deputy Prime Minister and Foreign Minister Winston Peters will travel to Europe for high-level talks with France, Germany and the United Kingdom next week. "Since taking office almost a year ago, the Coalition Government has emphasised the importance we place on New Zealand's traditional and likeminded diplomatic and ...22 hours ago
- First arrests made under gang patch ban
Police have made their first arrests under the new gang patch legislation, with two gang members arrested, says Police Minister Mark Mitchell. “Just before 11 this morning, Police in Wairoa apprehended a gang member for wearing a patch to the supermarket. He has been arrested and will now face enforcement ...23 hours ago
- Better support for victims of sexual violence
The Government is proposing two major changes to name suppression laws that will put the views of victims of sexual violence first, Justice Minister Paul Goldsmith says. “We are committed to restoring law and order and these two proposed changes will help ensure the victims of crime are put at ...1 day ago
- Government moving forward with Regional Deals
Cabinet has agreed to invite all regions to submit proposals for Regional Deals between central and local government that drive economic growth and deliver the infrastructure our country needs, Local Government Minister Simeon Brown and Infrastructure Minister Chris Bishop say. Inviting all regions to propose a Regional Deal that boosts ...1 day ago
- MSA pilot participant update
One of the ten young men selected to participate in the Military-Style Academy Pilot has allegedly reoffended. Children’s Minister Karen Chhour is disappointed but says it would be naïve to think that none of these young men would reoffend. “I’m saddened that this young person has not taken this opportunity ...1 day ago
- Fighting for Kiwis in Trade
Delivered at Auckland Trade and Economic Policy School Good morning and thank you Deputy Vice Chancellor Lithander for your warm welcome and for inviting me to open Auckland Trade and Economic Policy School today. A Special thanks to the University of Auckland, the Ministry of Foreign Affairs and Trade and ...1 day ago
- Attendance rates increase, again
Associate Education Minister David Seymour says that school attendance is continuing to rise. In Term 3 of 2024 51.3 per cent of students attended school regularly, an increase of 5.3 percentage points from 46 per cent in Term 3 of 2023. “This Government has prioritised student attendance and it is ...1 day ago
- Improving the lives of young New Zealanders
Ensuring New Zealand is the best place in the world for children and young people is the vision at the heart of the Government’s new Child and Youth Strategy, Child Poverty Reduction Minister Louise Upston says. “Childhood represents a huge opportunity to set people on a positive path towards living ...1 day ago
- Government continues work to reinstate livestock exports by sea
The Government is reinstating the trade of livestock exports by sea while ensuring the highest standards of animal welfare, says Associate Minister of Agriculture Andrew Hoggard.“The Government will introduce legislation changes to reinstate the trade, enhance oversight, and strengthen requirements for exporters to identify risks and manage the welfare of ...2 days ago
- Speech to the National Quality Forum 2024
Tēnā koutou katoa – it is a pleasure to be here today. I would like to begin by acknowledging the important leadership role you all play in ensuring a quality health system New Zealanders can trust. There is enormous clinical expertise in this room covering a wide range of disciplines. ...2 days ago
- New Zealand’s COP29 National Statement
Tēnā koutou katoa. Mr President, Excellencies, Delegates. New Zealand, and all nations represented here today, are already dealing with the impacts of climate change. Our households, businesses, and economies are bearing the costs of its effects. The choices we make now will shape the severity of these impacts for generations ...2 days ago
- Latest Quarterly Investment Report released
The Government has released its second Quarterly Investment Report (QIR) which shows substantial work still to be done by agencies to improve investment reporting and meet the Government’s expectations, Infrastructure and Acting Finance Minister Chris Bishop says. “New Zealand has significant infrastructure and investment needs. The Government is determined to get ...2 days ago
- New Zealand supporting loss and damage fund
Climate Change Minister Simon Watts announced New Zealand will contribute NZ$10 million to the new Fund for Responding to Loss and Damage while at the annual United Nations Climate Change Conference (COP29) in Baku, Azerbaijan. “New Zealand is joining the global effort to address the significant challenge of responding to ...2 days ago
- Gang crackdown begins at stroke of midnight
The free ride for gangs is over when the clock strikes midnight tonight, with tough new laws officially coming into effect, Justice Minister Paul Goldsmith and Police Minister Mark Mitchell say. “Gang patches will no longer be able to be worn in public. To earn the right to wear a ...2 days ago
- LGFA increases borrowing capacity to support high growth councils
The Government is welcoming the decision by the Local Government Funding Agency to increase access to financing tools for fast growing councils to support greater investment in critical infrastructure, Local Government Minister Simeon Brown says.“Communities across the country are facing an infrastructure deficit and significant population growth is projected in ...2 days ago
- Temporary Traffic Management costs revealed
The Government has revealed that over the past three years, the New Zealand Transport Agency (NZTA) has spent an eyewatering $786 million of taxpayers’ money on road cones and temporary traffic management (TTM), Transport Minister Simeon Brown says.“When I became Minister, I was surprised to learn that that NZTA did ...3 days ago
- Jurisdiction of Disputes Tribunal to double
Legislation that will double the financial jurisdiction of the Disputes Tribunal from $30,000 to $60,000 has passed first reading in Parliament today, Justice Minister Paul Goldsmith. “We need to improve court timeliness and access to justice so that Kiwis and get on with their lives. Court delays affect everyone, the ...3 days ago
- Protecting New Zealand from foreign interference
Legislation that will specifically criminalise foreign interference and strengthen espionage offences has passed first reading in Parliament today, Justice Minister Paul Goldsmith says. “It is normal and appropriate for states to interact and work to influence one another. This encourages cooperation and can have mutually beneficial outcomes. “However, the reality ...3 days ago
- Significant milestone for Canterbury Road of National Significance
Transport Minister Simeon Brown has welcomed news that the NZ Transport Agency (NZTA) Board has approved funding towards pre-implementation and early works on the State Highway 1 (SH1) Belfast to Pegasus Motorway and Woodend Bypass Road of National Significance (RoNS). “Reaching this significant milestone is a reflection of our Government’s ...3 days ago
- Health survey results to help drive change
Health Minister Dr Shane Reti says findings from the annual Health Survey highlight the need to continue driving better health outcomes for New Zealanders. The New Zealand Health Survey is an annual snapshot of key metrics measured from July 2023 – July 2024. Findings released this morning include: In 2023/24, ...3 days ago
- Final push needed to get to Smokefree 2025
A renewed effort to get people to quit smoking will build on what has worked to date and target the groups who most need support, Associate Health Minister Casey Costello said today. “The latest New Zealand Health Survey results show the daily smoking rate at 6.9 per cent and we ...3 days ago
- New diplomatic appointments
Foreign Affairs Minister Winston Peters has announced four new diplomatic appointments. “Our diplomats play an important role in ensuring New Zealand’s interests are maintained and enhanced across the world,” Mr Peters says. “It is a pleasure to announce the appointment of these senior diplomats from the Ministry of Foreign ...3 days ago
- Next steps for Regulatory Standards Bill
Regulation Minister David Seymour has today announced the next steps in the Government’s plan improve the quality of regulation by opening consultation on a proposed Regulatory Standards Bill. “New Zealand's low wages can be blamed on low productivity, and low productivity can be blamed on poor regulation,” says Mr Seymour. ...3 days ago
- Red Tape Tipline goes live
Minister for Regulation David Seymour has today announced that the Ministry for Regulation’s Red Tape Tipline is now live. “We want to hear about your red tape horror stories. From today, New Zealanders will have a say on how they are regulated through an online portal,” says Mr Seymour. The ...3 days ago
- Youth Parliament 2025 announced
The Minister for Youth Matt Doocey has today announced the eleventh Youth Parliament will be taking place in 2025. “Youth Parliament offers a unique youth development opportunity to young people from across New Zealand to experience the political process and learn about how government works,” says Mr Doocey. “The two-day ...4 days ago
- Police stats show promising change
After nearly a year in Government, Kiwis have seen significant change across law and order with promising early results shown across some Police statistics, says Police Minister Mark Mitchell. “In August 2023, I told New Zealanders that if they had not started to see a change in public safety within ...4 days ago
- Better coordination of anti-scam efforts
With the launch of Fraud Awareness Week, the Government is committing to new coordination efforts across industry and government to combat online scams, Commerce and Consumer Affairs Minister Andrew Bayly says. “Online financial scams are a growing problem for New Zealand. New data released today shows that Kiwis lost nearly ...4 days ago
- Minister to consider 7AA select committee report
Minister for Children Karen Chhour will consider the recommendations made by the Social Services and Community Committee in its report back to Parliament on the Oranga Tamariki (Repeal of Section 7AA) Amendment Bill. “I want to thank the people who made submissions and those who appeared before the committee in ...4 days ago
- Defence Minister to attend ASEAN meeting
Defence Minister Judith Collins will this week attend the Association of Southeast Asian Nations (ASEAN) Defence Ministers’ Meeting-Plus in Vientiane, Laos. “We need to take every opportunity to engage with our international partners, given the increasingly unstable geo-political situation,” Ms Collins says. “New Zealand has a long-standing commitment to this ...4 days ago
- Launching the White Ribbon Ride
The Minister for the Prevention of Family and Sexual Violence, Karen Chhour, was on hand to wish riders well at the start of the North Island leg of the White Ribbon Ride in Whakatāne this morning. The ride helps mark the International Day for the Elimination of Violence against Women, ...5 days ago
- Construction to begin on next stage of Papakura to Drury
Construction on the next stage of the SH1 Papakura to Drury project will begin early next month, with the contract for works awarded to Fulton Hogan, Transport Minister Simeon Brown says. "SH1 Papakura to Drury is a key project that will drive economic growth and productivity, reduce congestion, and enable people ...6 days ago
- Gang chapter president’s patch seized in first 24 hours of ban
The first arrest was made just three minutes after midnight, with 11 more to come. ...36 minutes ago - Government slammed for pushing on with boot camps amid trial
Labour has accused National of ignoring the evidence. ...47 minutes ago
- The unspoken rule of conversation that explains why AI chatbots feel so human
Source: The Conversation (Au and NZ) – By Celeste Rodriguez Louro, Chair of Linguistics and Director of Language Lab, The University of Western Australia Rroselavy / Shutterstock Earlier this year, a Hong Kong finance worker was tricked into paying US$25 million to scammers who had used deepfake technology to ...52 minutes ago - Who were Caracalla and Geta, the cruel and unhinged Roman brother emperors depicted in Gladiator II?
Source: The Conversation (Au and NZ) – By Michael Hanaghan, Senior Research Fellow in Latin Christianity in Late Antiquity, Australian Catholic University Warning: this article contains mild spoilers. When Gladiator I was released in 2000, I was a high school Classics student and the film brought Classical literature to life ...52 minutes ago
- Gang patch ban: The first 24 hours
The first arrest was made just three minutes after midnight, with 11 more to come. ...2 hours ago
- New Zealand Government Urged To Back ICC Arrest Warrants For Israeli Leaders Without Equivocation
“We are waiting for our government to announce it will arrest Netanyahu and Gallant immediately if they set foot in Aotearoa New Zealand” says PSNA National Chair John Minto. ...2 hours ago - Justice Committee Makes Further Decisions About Submissions Process For The Principles Of The Treaty...
The committee plans to hold hearings in the week starting Monday, 27 January and the weeks starting 10, 17 and 24 February 2025. ...2 hours ago
- Watch live: Christopher Luxon faces questions during power station visit
It comes as Labour accuses National of not listening to evidence about boot camps. ...2 hours ago
- Survivors of abuse in care know how redress should work – will the government finally listen?
Source: The Conversation (Au and NZ) – By Stephen Winter, Associate Professor in Political Theory, University of Auckland, Waipapa Taumata Rau Getty Images When Prime Minister Christopher Luxon stood in Parliament last week to apologise to survivors of abuse in care, his words were among many fine speeches by ...3 hours ago
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Source: The Conversation (Au and NZ) – By Flora Hui, Research Fellow, Centre for Eye Research Australia and Honorary Fellow, Department of Surgery (Ophthalmology), The University of Melbourne IoanaB/Shutterstock The United States Food and Drug Administration has just approved the first-ever clinical trial that uses CRISPR-Cas13 RNA editing. Its ...4 hours ago
- Yes, you still need to use sunscreen, despite what you’ve heard on TikTok
Source: The Conversation (Au and NZ) – By Katie Lee, PhD Candidate, Dermatology Research Centre, The University of Queensland Karolina Grabowska/Pexels Summer is nearly here. But rather than getting out the sunscreen, some TikTokers are urging followers to chuck it out and go sunscreen-free. They claim it’s healthier ...4 hours ago
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Source: The Conversation (Au and NZ) – By Keller Kopf, Senior Lecturer in Ecology, Charles Darwin University Laxmikant Ameenagad, Shutterstock In humans and other animals, ageing is generally associated with a decline in biological function. But scientists are now discovering older animals perform vital roles in populations and ecosystems. ...4 hours ago
- A man scouring Google Earth found a mysterious scar in the Australian outback – and now scientists...
Source: The Conversation (Au and NZ) – By Matej Lipar, Adjunct Research Fellow, School of Earth and Planetary Sciences, Curtin University Author provided/Google Earth Earlier this year, a caver was poring over satellite images of the Nullarbor Plain when he came across something unexpected: an enormous, mysterious scar etched ...4 hours ago
- Design as a movement: how First Nations people take ownership of their cultural stories through fash...
Source: The Conversation (Au and NZ) – By Treena Clark, Chancellor’s Indigenous Research Fellow, Faculty of Design, Architecture and Building, University of Technology Sydney Once located 250 metres to the east of the Art Gallery of South Australia, the grand beaux-arts style Jubilee Exhibition Building was constructed to house the ...4 hours ago
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The Association of Salaried Medical Specialists says a third medical school and more students in Auckland and Otago are both needed. ...5 hours ago
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Source: The Conversation (Au and NZ) – By Annette Greenhow, Assistant Professor, Faculty of Law, Bond University Linda George/Shutterstock The ten-year anniversary of the death of much-loved Australian cricketer Phillip Hughes falls on November 27. The 25-year-old’s life was tragically cut short in 2014 when a bouncer ...5 hours ago
- Hold the roosters, no economic dawn yet
Treasury likely to downgrade economic forecast while Chris Bishop says the government won’t be ‘a slave to a surplus’, writes Anna Rawhiti-Connell in this extract from The Bulletin. To receive The Bulletin in full each weekday, sign up here. Recession will be deeper and last longer — Treasury At a recent Spinoff ...6 hours ago
- Knowing superstitions aren’t real doesn’t stop us behaving superstitiously – why?
Source: The Conversation (Au and NZ) – By Stephanie Gomes-Ng, Senior Lecturer of Psychology, Auckland University of Technology Getty Images Former New Zealand prime minister John Key has three white rabbits painted on his helicopter, a nod to his “massively superstitious” habit of repeating “white rabbits” three times at ...7 hours ago
- Government slammed for pushing ahead with boot camps while trial still under way
The coalition has "absolutely no intention of listening to the evidence that comes out of their experiment", Labour MP says. ...7 hours ago
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Labour claims Government is ‘cherry-picking’ smoking trends data to hide decade-first increase in daily smokers The post Smoke and mirrors in heated tobacco debate appeared first on Newsroom. ...8 hours ago - Smoke and mirrors in tobacco debate
Labour claims Government is ‘cherry-picking’ smoking trends data to hide decade-first increase in daily smokers The post Smoke and mirrors in tobacco debate appeared first on Newsroom. ...8 hours ago
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The Government’s economic adviser is sending a message it doesn’t want to hear – superannuation is increasingly unaffordable The post Treasury bangs the drum on ‘unsustainable’ superannuation appeared first on Newsroom. ...8 hours ago
- Victims of sex offending welcome shift on name suppression laws
A man abused by a former political figure is "immensely relieved" at a government proposal to end secrecy around sex offenders' identities. ...8 hours ago
- This week three parties stood together – can they withstand the storm to come?
There is plenty yet to play out, but the next election is at this rate shaping up as trio versus trio, writes Toby Manhire. A subplot of this week’s historic hīkoi mō te Tiriti has been the sight of the three opposition parties presenting a unified front. Te Pāti Māori ...8 hours ago
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Loading…(function(i,s,o,g,r,a,m){var ql=document.querySelectorAll('A[data-quiz],DIV[data-quiz]'); if(ql){if(ql.length){for(var k=0;k<ql.length;k++){ql[k].id='quiz-embed-'+k;ql[k].href="javascript:var i=document.getElementById('quiz-embed-"+k+"');try{qz.startQuiz(i)}catch(e){i.start=1;i.style.cursor='wait';i.style.opacity='0.5'};void(0);"}}};i['QP']=r;i[r]=i[r]||function(){(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)})(window,document,'script','https://take.quiz-maker.com/3012/CDN/quiz-embed-v1.js','qp');Got a good quiz question? Send Newsroom your questions.The post Newsroom daily quiz, Friday 22 November appeared first on Newsroom. ...8 hours ago
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Prime Minister Christopher Luxon did not meet the Treaty Principles Bill hikoi crowd, sees “nothing” of merit in the Act-proposed law but the Parliament his Government dominates will spend six months debating a “divisive” measure.That’s because he has accepted there needs to be “aeration” of people’s views on the Treaty, ...8 hours ago
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Two little words Rio Tinto , come to mind again.
How much will this cost us for them to have a ‘happy ending’ in their talks with National government
Could just be shonkey deploying some CT nuanced positioning so when he does finally actually do something he looks like a saviour. He’s not so stupid as to say this without a longer term play
So then the fan club (hoots/Farrar etc) can all doff their caps to the genius of the all knowing PM as a way of controlling the message again.
On the other hand this could be THE longer term play, to have a taxpayer funded buy out of chorus shareholders for NewZild’s good.
Possibly the first time Key has been bested in 5 years.
Shame on Chorus for not pricing their original bid properly in the first place, and further shame for the gall of asking to be propped up for a low bid.
Both Labour and National are clearly now highly interventionist parties.
So far my tax dollars are propping up Sky City, Warner Borthers, Rio Tinto, (whoever wins Transmission Gully), and now Chorus.
The question for the election campaign will then become: who do you trust most to use your taxpayer dollar wisely (in economic intervention)?
This will require smart points of difference to be driven home by Cunliffe.
Key failing to rule out nationalisation is a massive tactical blunder that Labour will continue to play all the way to Key’s demise.
It’s therefore a massive signal to small and medium local businesses that Key will continue to reward the major corporates and shut the locals out of competitive bidding. The huge majority of local businesses just want a competitive chance on a level playing field, and Key keeps jamming the procurement door shut with my tax dollars.
Of course, Key would probably never consider nationalising them. He’d just hand them a blank check and ask nothing in return 0_o
Personally, I would be incredibly happy if he did bring the telecommunication infrastructure back into public ownership (where it should always have stayed). Then, any profits would be ensured to either be reinvested in the network or go to the country as a whole, rather than a handful of rich investors (most of them living overseas).
Good to know. So my provider will receive $34.44 per month for that component.
Oh dear. Please send that moronic muppet Eric Roy back to Invercargill.
You mean that thing that was pretending to be Mr Speaker? I’d send him a damn sight further south than Invercargill!
‘
What I don’t get is that when it comes to John Key’s Sky City scam National Ltd™ is all over the place talking about the sanctity of contract law yet when it comes to Chorus that contract can be rewritten to highly favour another party? Hypocrisy much, John?
Rio Tinto were able to tear up their contract they agreed to a few years back, and were given the $30 mill for the inconvenience of paying a new lower price- and Im sure thats was just the first installment of ongoing ‘golden parachute’
The 30million bailout of Rino Tinto was really to protect the jobs of the workers.
The multimillion bailout pending for Chorus is really to protect the jobs of the workers.
Believe it because English/Key will tell us that this is true!
Let us skirt around that the contract with Chorus may have tendered far too low but hey! We all make little mistakes so let us applaud the National for being “flexible” with contract law. Right?
Don’t forget about the 20 gazillion jobs the SkyCity deal will provide the country…
Like I’ve said before, Chours need a kick in the ass.
Chours fucked up big time when taking on the tender for the fibre rollout. Now their sub contractors are pulling out because Chours keep reducing profits.
Leave them on their own.
fused
The real fuckup was when Telecom was sold.
+1
Its so confusing… govt is just a shareholder in mrp so has no say in buy backs by directors at rock bottom prices… but is on the phone with chorus about operational matters.
It’s distressing to watch twits like John Key making a mockery of Parliament.
He had the audacity to use Kiwirail as an example of wasteful Government spending when it was his cronies (a la Fay and Richwhite & Berkshire Partners) who fleeced the organisation of any value and frustrating one of their other partners, Wisconsin Central Railroad, in the process. Toll bought a lemon in 2003… renationalisation was probably inevitable from the day the pirates cashed out.
It’s distressing to watch lying scum bags like John Key making a mockery of Parliament.
hes not really a twit – he knows hes bullshitting
Renationalisation was inevitable from the announcement to sell. This applies to Telecom/Chorus, Rail and power. It was inevitable that the private sector would run them down in their drive for profit and that us taxpayers would have to step in to prevent any further run down of our critical infrastructure.
It’s a win both ways for John Key. It either creates another opportunity for John Key to increase Government debt borrowed from his bankster mates or, if not renationalised, it creates another opportunity for the ownership of Chorus to be redirected to his bankster mates.
Is anyone taking odds yet on which financial institution John Key is going to “consult” for post-2014 elections?
Question Time.
Q.10- Curran to Adams on the government’s position concerning the Chorus claims.
Adams-obfuscation and more than a little (feigned? ) ignorance, qualifying considerations as “concern for the end-user (of UFB)”.
David Cunliffe 😉 quotes Kiwiblog… 😉 (comes in handy for something, sometimes)
“Verify Chorus’s claims”
which appeared to go whoosh over the top of Adam’s swede.
05.11.13 – Question 12: Clare Curran to the Minister for Communications and Information Technology Will the Government abide by the final Unbundled Bitstream Access Service Price Review determination issued by the Commerce Commission today? David Cunliffe’s supplementary at about 2.25 http://inthehouse.co.nz/node/21738
Apparantly I’m a spambot, so all carrage returns have been stripped from my comment 😕
Not going to use Tor anymore when browsing thestandard 🙁
There are some pretty aggressive anti-spam tools on this site. This is what allows the site to operate without generally requiring captchas or logins for comments. The downside of it is (as you discovered) that coming from any system that has been tagged as a spambot in the past tends to get highly unfairly treated.
yes Naturesong, you are very correct, it was Q.12. -I plead fatigue, needed a tea-break. Ta.
Google Chrome works fine, fast and dandy Naturesong.
They’ve known the cost for years, as it’s always been their network to underinvest in when they created the bid, so why now.
Gosh what would the $5m+ p.a man Reynolds do, maybe they should give him a call as a key player in that deal with fixit Joyce as the glue appears to have come unstuck.
The advice would probably be ‘ give it all ya got laddie, look it’s that unbundling guy coming back bigger than before…’
Telecom have been systematically under-investing in the network so as to maximise dividends since it’s sale in 1990. We can’t really blame Reynolds for all of that.
In broad brush figures, befor taxation, dividends, i just about wrote kickbacks, and various other bites at the cherry from it’s profits Chorus earned around 600 million dollars in the last financial year,
At the most, the Commerce Commission decision will take away a hundred and some million dollars from that profit leaving Chorus 400 and something million,
Slippery the Prime minister is then Lying through His teeth with His claim that Chorus will go to the wall if the Commerce Commission’s pricing is allowed to stand,
Part of me, the evil little part, hopes that the Shyster we currently have as PM does promote Legislation in the House with the aim of protecting the profits of Chorus shareholders, it may not be much of an issue in the level of society where my bones reside but among His own it will be the hammering of the nails into the coffin of this Slippery Government of shysters and shylocks…
MS says: “But as I noted before Chorus’s problems appear to relate to the tender that it signed with the Government.”
FFS. Chorus doesn’t have any problems at all. It paid $95 million in dividends last year!
and, aha? May we politely enquire of your revised position Matthew.
revised?
good oh then.
Chorus through their number one spokesperson on the issue, Slippery the Prime Minister, are now claiming that the pricing set by the Commerce Commission puts the ultra-fast fiber roll out in danger of not being able to be completed???
What exactly the f**k has either of these two things got to do with the other is the question i would ask, Chorus is a profitable piece of monopoly capitalism which knows it’s pricing is subject to Commerce Commission rulings if that organization is now saying that the price it tendered to gain the fiber roll-out was being subsidized by it’s over-all business then more fool them,
As a business Chorus has the ability to further spread the risk/cost of the fiber roll-out,(if as they are now saying they tendered too low to gain the contract), through bank lending just like any other business does…
I was referring Matthew to the report that Chorus had undercooked the tender by $500 million.
I agree that Chorus should just wear this and get on with things. It may be less profitable but it is still profitable. The shareholders may see their dividends drop but the only word that I can think of is “diddums”.
Chorus has admitted that it underestimated the costs of the UFB roll out by $300 million. Deutsche bank thought it was more like $500 million. Whatever the figure is the company and the shareholders should wear it, not consumers.
Ok, take your word for it, haven’t read their accounts that closely. But I have certainly heard they were hundreds of millions less than anyone else on UFB, which is why they got the contract. But that is just a risk they took as a commercial enterprise so I don’t know why the govt has any further interest. Business is about taking risks. And if you manage your risks well you make great profits. And if you don’t you don’t.
And yet history shows that if large businesses get into financial difficulty, taxpayers end up bailing them out.
What was the total tender price?
The way this government is acting? Anything Chorus demands.
Requesting to table the hollowmen dvd and book is pretty LOL
Its not revised its paid for…
hes an expert on telecommunications now. Has Ecretium updated the website yet
The Nacts – we buy, we sell. MOM models. How does Treasury feel about this one?
Chorus – we choose. Bankruptcy or cutting senior staff pay to maintain shareholder dividends.
Sorta lose, lose, lose. Best laugh for a longtime
I think regardless, you will see the majority of National supporters not agreeing with National/Key on this one.
Does anybody know what Chorus mean by this bit hidden down the bottom of their press release?
“Chorus is now set to take up its option to move to a full economic cost model for the UBA price.”
It looks awfully like they believe they are only voluntarily following the Commerce Commission determinations with the right to break away & charge whatever the hell they want.
Sounds like a contractual option that the govt has given them. They are playing with fire if they intend to deliberately antagonise NZ though.
Unlike all those other times a large corporate has shafted the NZ public?
Losing your social licence to operate is typically a multi-step, multi-year process.
Corporate social welfare has exploded under this government.
Socialising private enterprise losses has exploded under this government.
This government simply runs loose and wild and doesn’t know whether it is Arthur or Martha.
It is the biggest hand-outs government we have ever seen, handing out money and favour to corporates willy-nilly left right and centre.
Why can’t the corporates and private enterprise stand on their own two feet? Why do they keep running to Nanny Key crying wah wah wah all the time? Why do they want to get welfare handouts all the time? It just goes to prove that they simply do not perform to the level that they think they do – best example being the useless NZX. The NZX is always crying ‘wah wah wah we don’t have enough capital, wah wah wah, hey taxpayers we need to take your businesses to build up our private trading company because the business community is not capable of doing such itself. Sub-example – NZX wanted to boost its capital base with power companies. Why didn’t these great captains of industry set up their own power companies? Free market sitting there, increasing prices for the product, consistent demand for it. But nup, nobody could do it for them so the NZX comes crying to the taxpayer. What a bunch of fucking bludging pussies.
Chorus
Gambling
Corporate welfare
Whaleoil
Asset sales
Rivers
East Christchurch
Compulsive lying
John Banks
Colin Craig
Kim Dotcom
ffs, she’s all head winds for this government, and all so well deserved…… shame we have to suffer the results of their incompetencies
So nationalising under Labour is good but under National it’s bad. What a fucking joke you partisan whack jobs are.
As for that fruit loop Dracko saying the biggest mistake was selling Telecom. Perhaps he/she has their head so far up their own ass that they can’t remember how many millions of tax payers money was being poured into the inefficient monopoly.
I guess when you believe your team are good and they stand for state owned and controlled everything you just can’t be rational… Hence; wouldn’t it be great if power was a state monopoly … But only if Labour do it.
“can’t remember how many millions of tax payers money was being poured into the inefficient monopoly”
We’re pouring millions into it now burt. We just call it “profit” so idiots like you don’t notice.
the amount was $0 burt. Telecom was running a surplus right through the 1980s and that surplus was entirely spent on upgrading the network. It’s how we got the most of the network we have today and the digital exchanges across the country. If we’d kept it as is we wouldn’t have to now be pouring in billions of dollars to get FttH as it would already be being rolled out from that same surplus with no extra taxpayer $$$. Instead we sold it, the surplus went as dividends to the profiteers and now we’re having to pay out billions in taxpayer $$$ to get what we’ve already paid for.
The only fruit loops around here are the RWNJs that believe that deregulation and selling Telecom has made NZ better off when the facts clearly show that we’re tens of billions of dollars worse off. The social harm done is probably far worse.
Sometime Burt it is better to keep your mouth shut and have everyone think you’re an idiot, than to open it and confirm it.
John Key is the most socialist government New Zealand has had since Muldoon.
It’s not only the list of corporates he’s prepared to to put my tax dollars into proppoing up, it’s also the massive distrust he shows in regulators or businesses to balance their own affairs.
Consider the number of RMA decisions that have been called in quite unnecessarily.
The re-regulation of Auckland Council and of Christchurch.
The Hawkes Bay dam. The Canterbury irrigation scheme.
Only an ardent socialist would fear the judgement of both independent regulators and of citizens to balance their interests, and believe that only the state – represented by his omnipotent and omnipresent self – can make sound economic judgements.
Herald Editorial Bite The Bullet Amy
Also http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11151998
“While the Government makes up its mind, a Chorus spokesman confirmed yesterday that the company was getting the commission to go through a “final pricing principle” (FPP) review to work out the wholesale charges.
The spokesman said it was Chorus’ right under the law to ask for this review.
This can take years to complete and will see the commission use a different and far more complex model than for yesterday’s decision. The length of the FPP process is one argument the Government has advanced in favour of intervention.
Instead of benchmarking against prices from markets similar to New Zealand, the FPP process involves a full analysis of the cost of Chorus building a replacement network from scratch, and working out prices from that.”
They can’t be serious that they think they should be able to charge the equivalent cost for a brand new replacement network? O_O
They started with an existing comprehensive network when Telcom was privatised & have never had to bear the cost for that in the first place.
sadly, the reporters commentary (wishes) on One News suggested National are likely to re-write the contract or over-ride the Commission’s findings in law. Yep, fastest law-makers in the west outback and beyond the black stump.
Test
Here , Here VTO Most of them couldnt run a bath. Let alone a corner store Too much apathy in NZ
Go Burt! Let’s hear your point of view, complete with facts or evidence to support your opinion. The Standard needs challenging, intelligent, informed, insight. Step up and convince me.
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