Emerson on privatisation

Written By: - Date published: 7:27 am, January 11th, 2012 - 24 comments
Categories: newspapers, privatisation - Tags: , , ,

Emerson from The Herald on privatisation:

24 comments on “Emerson on privatisation”

  1. prism 1

    I’m glad to see some great cartoons with little barbs making very apposite comments are still around. We had a great cartoonist in Nelson who replaced Garrick Tremain and brought a sharper style but equal ability compared to this older cartoonist who has been doing good work for many years. Unfortunately Nelson is a place liking soft cushions when viewing reality, and this other guy I think was Mike Moreu and got the push.

  2. Irascible 2

    Brilliant cartoon.
    We still have to clean up the mess created by Bradford’s restructuring privatisation of the electricity reticulation industry. No promised reduction in power bills and a rapidly removal of funds to overseas conglomerates.

  3. hobbit 3

    Shame this cartoon ignores the list of company’s that have been turned around, from old, slow, bureaucratic, non-customer driven SOE’s – to modern businesses that now deliver results for their customers and their shareholders, without being a burden on the public purse.

    “No promised reduction in power bills”

    Ironically we only have one private power provider, with the rest being state controlled monopolies.

    If you want the break the monopoly and get a bit more competition in the electricity market, then I’ll guess you’d support selling 50% of each company?

    Nah, you’ll support total state controlled monopolies, then wonder why you pay so much for power.

    • Ari 3.1

      Which companies are you talking about? In my view the only companies that have actually improved after privatisation are the ones we’ve started to buy back.

      • hobbit 3.1.1

        “Were they racking up debts and posting losses”

        Yes, New Zealand Rail:

        “The government wrote off NZ$1.3 billion in debt acquired by the company from the Railways Corporation, and injected a further $300 million in capital. Despite this capital injection the company remained only marginally profitable, reporting after-tax profits of $36.2 million in 1992 and $18 million in 1993.”

        Tranz Rail actually improved once it was privatized, until the end of the 90’s when new management took over. Sadly with TR, the majority forget this and think rail privatization was a complete failure, when it was only the latter years that failed.

        Something for the lefties, who actually believe what their masters tell them, to foam over: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=229488

        • Draco T Bastard 3.1.1.1

          Tranz Rail actually improved once it was privatized, until the end of the 90′s when new management took over.

          You, of course, mean the period when it showed a profit due to asset stripping which could not then be maintained by the new owners which resulted in the government having to buy back an essential infrastructural asset.

          Yep, a perfect example of privatisation rewarding thieves at everyone else’s expense.

          And, no, I’m not going to take the word of the person in charge of the asset stripping. What I will do is take note of the result which was run down infrastructure and capital.

          • hobbit 3.1.1.1.1

            “You, of course, mean the period when it showed a profit due to asset stripping”

            Nah, the period where one of the good guys who was in charge massively increased the amount of freight being carried.

            “And, no, I’m not going to take the word of the person in charge of the asset stripping. What I will do is take note of the result which was run down infrastructure and capital.”

            Your clearly confused, that was in the latter years. If you did a bit of research about the 93 – 97 years you’ll actually see that it was genuinely profitable.

            IIRC capital expenditure only started dropping in 99 or so. Until then capital expenditure had been higher than it was during state ownership.

            • RedLogix 3.1.1.1.1.1

              If you did a bit of research about the 93 – 97 years you’ll actually see that it was genuinely profitable.

              In other words, before they had stripped all the asset out and generally ran the business down to the point where it was no longer profitable.

              Until then capital expenditure had been higher than it was during state ownership.

              But when the state brought it back it was so run down it now needs billions to bring it back to a safe and efficient standard.

              • hobbit

                “In other words, before they had stripped all the asset out and generally run the business down to the point where it was no longer profitable.”

                Sure, that happened later on. My point is that before that it was profitable before that due to reasons other than asset stripping.

                “But when the state brought it back it was so run down it now needs billions to bring it back to a safe and efficient standard.”

                Agreed. But, as a report into the railway agreed, the operation is safe. Things have only got better since then, too.

    • tc 3.2

      care to name these burdensome companies.

      Results for shareholders = profits that would be going into gov’t coffers, year in year out and any profit is a profit so how were they burdening the public purse ? Were they racking up debts and posting losses.

      Power is a natural monopoly so they may as well benefit the public not some foreign owner like the single privatised one you allude to.

    • KJT 3.3

      State monopolies that are run as pretend private companies, with all the inefficiencies, unnecessary duplication, costs of private finance, cutting salaries for skilled staff and excessive salaries at the top, that destroy our private businesses.

    • Jum 3.4

      hobbit,

      ‘now deliver results for their customers and their shareholders’

      as usual nothing about the workers who produce the results and also deserve a fair wage.

      • hobbit 3.4.1

        If their workers don’t think they are being paid enough, then by all means they should offer their services elsewhere or try to negotiate a new rate of pay with the employer.

        Kinda goes without saying, I would have thought.

        I’m actually in favor of workers joining a union rather than not. As long as its not forced ie a return to the 70’s. But I don’t like reading about a union official using bad language in the media, or seeing a union official on the news using a disgusting tone of voice over a loud speaker, like some kind of protestor. POT management didn’t resort to that, and neither should the union guy.

        • McFlock 3.4.1.1

          Oh, okay – the peasants can organise, but only as long as they’re clean and polite.
            
           

        • Frank Macskasy 3.4.1.2

          “But I don’t like reading about a union official using bad language in the media, or seeing a union official on the news using a disgusting tone of voice over a loud speaker, like some kind of protestor. POT management didn’t resort to that, and neither should the union guy.”

          Sorry, guv’. *tugs forelock*

    • “Ironically we only have one private power provider, with the rest being state controlled monopolies.
      If you want the break the monopoly and get a bit more competition in the electricity market, then I’ll guess you’d support selling 50% of each company?”

      So how come the private company (Contact) doesn’t undercut the three state power companies, “Hobbit”?

      After all, if private enterprise is more efficient, then ipso facto, they should be passingf on their efficiency gains to customers through cheaper power rates.

      Right?

      • hobbit 3.5.1

        “So how come the private company (Contact) doesn’t undercut the three state power companies, “Hobbit”?”

        No incentive to, at the moment, when the rest of the electricity market is state controlled.

  4. RedLogix 4

    It’s the inherent nature of capitalism; cost one way, profits the other.

    • Colonial Viper 4.1

      Costs to workers, the community and the environment; profits to owners, shareholders and their lieutenants.

  5. Jum 5

    Too bloody late the cartoonist sees what was obvious to anyone with two braincells 3 and a half years ago; Key is leaving New Zealanders with all the bills to pay and none of the dividends.

  6. Jum 6

    It’s becoming obvious that workers don’t really exist – we live in a country of consumers and shareholders – it seems really strange to me that none of those consumers or even those richer shareholders have ever considered the fact that workers deserve a proper wage and job security. Aren’t they children, parents, brothers, sisters, cousins, uncles, aunts of those consumers?

    With the shareholders I have more of a problem imagining they actually give a damn.

    Any new shareholders that have scraped together money to buy a few of SOE assets they already own will be happy to stab their children, parents, brothers, sisters, cousins, uncles, aunts in the back to get a bigger dividend.

    I know it seems strange but aren’t those people the same? They’re actually dismantling their own future – very strange.

  7. My partner tells me of a visit she had today, at her workplace, from one of their regular clients. “Mark”* is a self-employed person, and like many in his position, is not someone to vote for Labour, Greens, or any other centre-left Party.

    He visits every so often and they natter about various things happening in New Zealand – especially the way the country is going.

    We strongly suspect he voted National, last November, despite not liking some of their policies.

    Anyway, “Mark” comes in and starts to discuss what National is getting up to. He complains bitterly, that with the part-privatisation of the power companies, he is expecting his electricity bill to skyrocket.

    My partner simply looks at him and asks,

    “Who did you vote for Mark”? I wouldn’t complain if I were you. You got what you voted for.”

    His only reply is a surly, “Don’t you start!”

    At least she didn’t say to him, “I told you so!!!” (But I would’ve.)

    It seems that the first chicken has come home to roost for those who voted National…

    (True story. Damn, it made my day!!!)

    * Not his real name

Recent Comments

Recent Posts

  • Shifty Bill jumps the shark
    Bill English's claim today that it has never been established that Todd Barclay's recordings of his staff took place is bizarre and shows a complete lack of honesty and leadership, says Labour’s Finance spokesperson Grant Robertson.  "Todd Barclay told Bill ...
    16 hours ago
  • Te Ture Whenua – gone by lunchtime?
    Māori Development Minister Te Ururoa Flavell has to front up about yesterday’s mysterious withdrawal of Te Ture Whenua Bill from Parliament’s order paper, says Labour’s Ikaroa Rawhiti MP Meka Whaitiri.  “Has he lost his way and has decided to run ...
    1 day ago
  • Bill English ignorance of law beggars belief
    For Bill English to claim he and others in the National Party didn’t realise the law may have been broken in the Todd Barclay taping scandal is simply not credible, says Leader of the Opposition Andrew Little. “The Prime Minister ...
    2 days ago
  • Government ignored advice on Pacific people’s superannuation
    The Government ignored advice from the Ministry of Pacific Peoples that raising the Superannuation age of eligibility would have a ‘disproportionately high impact’ on Pacific people, says Labour’s Pacific Island Affairs spokesperson Aupito William Sio.   “The Ministry for Pacific ...
    2 days ago
  • Bill English misleads Parliament on Police statement
    Bill English's attempt to restore his damaged credibility over the Todd Barclay affair has backfired after his claim to have "reported" Mr Barclay's actions to Police has proven not to be true, says Labour MP for Wellington Central Grant Robertson. ...
    2 days ago
  • Keep it Public
    The Green Party strongly supports the Tertiary Education Unions call to #KeepitPublic Keep what public? Out quality tertiary education system that National is trying to open up to more private for-profit providers with a new law change. The (Tertiary Education ...
    GreensBy Gareth Hughes
    2 days ago
  • This ‘technical error’ is hurting big time
    Jonathan Coleman cannot resort to his ongoing litany that the Ministry of Health’s $38 million budget blunder is an error on paper only, says Labour’s Health spokesperson David Clark. “He might keep saying it’s a ‘technical error’ but the reality ...
    3 days ago
  • Labour to invest in public transport for Greater Christchurch
    Labour will commit $100m in capital investment for public transport in Greater Christchurch, including commuter rail from Rolleston to the CBD, says Leader of the Opposition Andrew Little. “As the rebuild progresses, there are huge opportunities for Greater Christchurch, but ...
    3 days ago
  • Green Party will repeal solar tax
    It’s ridiculous for an electricity distribution monopoly to apply a charge on solar panels but worse than that, it’s harming our effort to tackle climate change. Hawke’s Bay lines company Unison last year announced a new solar charge for their ...
    GreensBy Gareth Hughes
    3 days ago
  • English fails the character test over Barclay
    Bill English is hoping this scandal will go away, but he is still dodging important questions over his role in covering up for Todd Barclay, says Leader of the Opposition Andrew Little. ...
    3 days ago
  • Government must apologise for Christchurch schools stuff-up
    The Ombudsman’s findings that the Ministry of Education botched the reorganisation of Christchurch schools after the 2011 earthquake are damning for an under-fire National Government, says Labour’s Education spokesperson Chris Hipkins. “The Ombudsman has found the reorganisation of schools in ...
    3 days ago
  • Government’s multinational tax measures weak
    The Government’s proposals to crack down on multinational tax avoidance, by its own admission only recovering one third of the missing money, means hardworking Kiwis will bear more of the tax burden, says Labour’s Revenue spokesperson Michael Wood. “The Government ...
    4 days ago
  • World Refugee Day – we can do our bit
    I’m really proud that yesterday, on World Refugee Day, the Greens launched an ambitious plan to increase the refugee quota to 5000 over the next six years. Of those places, 4,000 will be directly resettled by the government and another ...
    GreensBy Denise Roche
    4 days ago
  • PM’s leadership in question over Barclay affair
    The Prime Minister must belatedly show some leadership and compel Todd Barclay to front up to the Police, says Labour Leader Andrew Little. “Twice today Bill English has been found wanting in this matter. ...
    4 days ago
  • Another memory lapse by Coleman?
    The Minister of Health ‘couldn’t recall’ whether the Director General of Health Chai Chuah offered his resignation over the Budget funding fiasco involving the country’s District Health Boards, says Labour’s Health spokesperson David Clark. “In the House today Jonathan Coleman ...
    4 days ago
  • Bill English needs to come clean over Barclay
    Bill English needs to explain why he failed to be upfront with the public over the actions of Clutha-Southland MP Todd Barclay, following revelations that he knew about the secretly recorded conversations in the MP’s electorate office, says Labour Leader ...
    5 days ago
  • Minister, show some backbone and front up and debate
    Rather than accusing critics of his Te Ture Whenua Māori Bill of telling ‘lies’, Māori Development Minister Te Ururoa Flavell should show some backbone and front up to a debate on the issue, says Ikaroa-Rāwhiti MP Meka Whaitiri. “Te ...
    5 days ago
  • Equal pay for mental health workers
    Today, mental health workers are filing an equal pay claim through their unions. Mental health support workers do important and difficult work in our communities. But because the workforce is largely female, they are not paid enough. It’s wrong for ...
    GreensBy Jan Logie
    6 days ago
  • Nats’ HAM-fisted housing crisis denial
    National’s decision to knowingly release a flawed Housing Affordability Measure that underestimates the cost of housing is the latest evidence of their housing crisis denial, says Labour’s Housing spokesperson Phil Twyford. ...
    6 days ago
  • New Pike footage builds compelling case for mine re-entry
    New footage of the Pike River Mine deep inside the operation, revealing no fire damage or signs of an inferno, provides a compelling reason to grant the families of Pike River’s victims their wish to re-enter the drift, says Labour ...
    6 days ago
  • Labour will get tough on slum boarding houses
    The next Labour-led Government will legislate a Warrant of Fitness based on tough minimum standards to clean out slum boarding houses, says Labour’s Housing spokesperson Phil Twyford. “It’s not acceptable for New Zealanders in the 21st Century to be living ...
    7 days ago
  • Green Party tribute to Dame Nganeko Minhinnick
    Haere ngā mate ki tua o paerau; te moenga roa o ngā mātua tupuna. Haere, haere, haere. It was with a huge sense of loss that we learned of the death of Dame Nganeko Minhinnick yesterday. The Green Party acknowledges ...
    GreensBy Catherine Delahunty
    1 week ago
  • Urgent answers needed on DHB funding
      Jonathan Coleman must come clean and answer questions about what actual funding DHBs received in Budget 2017, says Labour Health Spokesperson David Clark.   ...
    1 week ago
  • Treasury puts Māori Land Service on red alert
    A damning Treasury report raises serious questions about the delivery of Te Ururoa Flavell’s proposed Māori Land Service, giving it a ‘red’ rating which indicates major issues with the project, says Ikaroa-Rāwhiti MP Meka Whaitiri.  “Treasury’s Interim Major Projects Monitoring ...
    1 week ago
  • Economy stalling after nine years of National’s complacency
    The second successive quarterly fall in per person growth shows the need for a fresh approach to give all New Zealanders a fair share in prosperity, says Labour’s Finance spokesperson Grant Robertson. ...
    1 week ago
  • Kiwi kids deserve much more
    All Kiwi kids deserve so much more than the impoverished picture painted by the shameful rankings provided by the UNICEF Innocenti Report Card, says Labour’s children spokesperson Jacinda Ardern. ...
    1 week ago
  • NZ Zone a precursor to a total nuclear weapon ban
    New Zealand’s nuclear-free zone, legislated by Parliament in 1987, is something we all take pride in. It’s important, however, that we don’t let it thwart its own ultimate purpose – a world free of nuclear weapons. That goal must be ...
    GreensBy Kennedy Graham
    2 weeks ago
  • English must confirm we still stand by our principles on UN resolution
    Bill English must tell New Zealand whether we remain in support of the UN Security Council resolution on Israeli settlements in Palestinian territory, says Labour Leader Andrew Little. “After Foreign Affairs Minister Gerry Brownlee’s evasive answers to repeated questions on ...
    2 weeks ago
  • Māori party drop the poi on Māori health
    The Māori Party have dropped the poi when it comes to supporting Ngati Whakaue and Māori interests in Bay of Plenty by allowing an iwi owned and operated service Te Hunga Manaaki to be brushed aside in favour of a ...
    2 weeks ago
  • Labour to invest in Whanganui River infrastructure
    Labour will work in partnership with the Whanganui Council to repair and redevelop the city’s Port precinct in advance of planned economic development and expansion. To enable Whanganui’s plans, Labour will commit $3m in matching funding for repairing the Whanganui ...
    2 weeks ago
  • Parihaka: an apology
    An apology only works for healing if it is sincere and if it is accepted. We teach our children to apologise and to be genuine if they want to be forgiven. On Friday, June 9 at Parihaka, the Crown apologised ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Survey shows many international students plan to stay in NZ after study
    Most international students in New Zealand at PTEs (private training establishments) who have a plan for themselves after study intend to stay in New Zealand to work. This shows how low-level education has become a backdoor immigration route under National, ...
    2 weeks ago
  • Councils step up as Nats drop the ball on housing crisis
    Phil Goff’s Mayoral Housing Taskforce is another positive example of councils stepping up where National has failed on housing, says Labour Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Time for a breather on immigration
    Labour will introduce moderate, sensible reforms to immigration to reduce the pressure on our cities, while ensuring we get the skilled workers our country needs, says Leader of the Opposition Andrew Little. “New Zealand is a country built on immigration. ...
    2 weeks ago
  • Inaction puts Māui dolphins at risk
    Conservation Minister Maggie Barry was at the United Nations Oceans Conference in New York last week, trying to convince the world that the New Zealand Government is doing a good job at protecting our marine environment.  Yet last week after ...
    GreensBy Eugenie Sage
    2 weeks ago
  • National unprepared as immigration runs four times faster than forecast
    National has been caught asleep at the wheel by record immigration that has outstripped Budget forecasts, says Leader of the Opposition Andrew Little. ...
    2 weeks ago
  • First home buyers shouldn’t carry the can for National’s failed policies
    The introduction of tighter limits on lending to first home buyers would see them paying the price for the National Party’s failure to recognise or fix the housing crisis, Labour’s Finance spokesperson Grant Robertson says. “Nine years of denial and ...
    2 weeks ago
  • Motel bill blows out as Nats fail to deliver emergency housing
    Minister Amy Adams has admitted at select committee that National has now spent $22m on putting homeless families in motels as it fails to deliver the emergency housing places it promised, says Labour Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Minister, how out of touch are you?
    What was going through Jonathan Coleman’s head in the Health Select Committee this morning when he claimed he was unaware that an estimated 533,000 people have missed out on a GP’s visit in the last 12 months due to cost, ...
    3 weeks ago
  • Divided we fall
    I’m getting pretty sick of the politics of division in this country.  The latest example was yesterday’s comments from NZ First leader Winston Peters having a good go in the House at driving up fear and loathing towards people of ...
    GreensBy Denise Roche
    3 weeks ago
  • Labour’s Electoral Amendment Bill to enhance democracy
    Democracy will be enhanced under Labour’s Private Member’s Bill which will have its First Reading today, says Labour’s Local Government spokesperson MP Meka Whaitiri. ...
    3 weeks ago
  • Police underfunded despite rise in crime
    As crime continues to rise dairy owners are scared for their lives and communities reel under a record increase in burglary numbers, it has now been revealed that Police received less than three quarters of their bid in this year’s ...
    3 weeks ago
  • Road pricing years off, public transport investment needed now
    With road pricing still years away, Labour will step up with investment in public transport to ease Auckland’s congestion woes, says Labour’s Auckland Issues spokesperson Phil Twyford. ...
    3 weeks ago
  • Call to protect Easter Sunday in Auckland
    Auckland’s Labour MPs are backing the community to protect Easter Sunday by retaining current trading restrictions in the city, says Labour MPs Aupito William Sio and Michael Wood.  “The Government’s weak and confusing decision to delegate the decision over Easter ...
    3 weeks ago
  • $2.3 billion shortfall in health
    The funding needed for health to be restored to the level it was seven years ago to keep pace with cost pressures has widened to a massive $2.3 billion, says Labour Leader Andrew Little.  “We used to have a health ...
    3 weeks ago
  • Catherine Delahunty: My Mataura River visit
    On June 1st the Greens swimmable rivers tour visited the Mataura river and communities connected to it. All we need now is a Government willing to set clear strong rules and support the new conversation about measuring our success by ...
    GreensBy Catherine Delahunty
    3 weeks ago