NRT: The problem of SOEs

7 comments on “NRT: The problem of SOEs ”

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1. karol 1

   20 June 2013 at 3:48 pm

   I/S makes very important points about the role of SOEs. Though, maybe it shows that this hybrid form of organisation, a government service that operates like a business, is based on a contradiction in terms.

   I also thought this bit of advice from Saunders-Unsworth was interesting;

   The documents show Solid Energy’s bosses were given advice on dealing with “problematic” Labour MPs Clayton Cosgrove and David Cunliffe.
   The advice was also shared with Treasury, and the offices of Finance Minister Bill English and State-Owned Enterprises Minister Tony Ryall.
   • Draco T Bastard 1.1

     20 June 2013 at 5:00 pm

     Though, maybe it shows that this hybrid form of organisation, a government service that operates like a business, is based on a contradiction in terms.

     Governments provide services that are paid for through taxes and they do so because it is the most cost effective and efficient way to provide those services (has to do with economies of scale and the simplicity of taxes). Running a business to make a profit is contrary to that with the profits actually being regressive taxes.
2. AmaKiwi 2

   20 June 2013 at 4:35 pm

   In a private company the owned, English and Ryall would never tolerate this by their employees.

   How do we fire these people? Their hypocrisy is nauseating.
3. Ad 3

   20 June 2013 at 4:57 pm

   Ministers both left and right have been far too coy about using their ability to hire and fire Directors. Firing – or not reappointing – sends a strong cold wind into members of golf clubs and Manufacturers Associations right acros the country of the kind of direction they are seeking. “Serve at the pleasure” being the operative phrase.

   Also poorly used is the Letter of Expectation to guide SOI formation to the Chairs. Mayor Brown uses this to good effect with his CCOs. Mayor Cull is getting into this as well.

   Nor should the threat of full absorbtion be taken away. SOE’s are of course legislated entities. Queenstown Lakes for example has dissolved all of their CCOs over the last 6 months.

   Dunedin is about to release the results of a major review of theirs, and wouldn’t be surprised if there are fewer after that.

   Auckland seems likely to conduct a similar review next year, should the current Mayor get in and the balance of power about the same.

   Not sure why hiring lobbyists was a broblem – if Ministers didn’t like it the Shareholder Giude and the Letter of Expectation would simply state a “must not act against stated government policy”. After all an SOI has to be agreed by both the SOE Board and the shareholding Minister.

   What’s really missing however is a Treasury unit with sharp teeth. COMU is pretty watered down, and really needs the power to recommend specific disciplinary actions to Ministers. Plus some good attack-dog public servants in there.

   Finally, there has to be a common direction for them all. There is no equivalent of the Auckland Plan for SOE’s to have collective policy targets. Just delivering dividends is poorly insufficient. All SOE’s must be to be told to give effect to a common governmental strategy. For God’s sake don’t call it a vision, but something for the common good besides money.

   Sorry about the rant – this field of NZ politics really pisses me off.
4. red rattler 4

   20 June 2013 at 8:21 pm

   Problem with NRT and liberals in general is they think that things are supposed to work for the people.

   The whole point of SOEs is to corporatise them, bring in private sector people to run them then flog them. This includes running them into the ground. All that is solid melts into air.

   The point is to get the state out of any monopoly or part thereof that is potentially profitable as the bosses are desperate for every last tonne of shit to glob off.

   The left is mired in illusions that the state can step in a fix things up in the name of the people.
   Once such delusion on the liberal left is Keynesian economics.

   Yet Keynesian state aid died in the 1970s. Capitalism is in terminal decline beyond redemption.
   Capitalism is the crisis. Face it. From from Palestine to Syria to Ristanbul to Sao Paulo people are standing up.

   Good interview with Michael Roberts that spikes lots of delusions about how capitalism works.
   “Contours of the Crisis: an Interview with Michael Roberts”
   http://www.thenorthstar.info/?p=9006
   • Draco T Bastard 4.1

     21 June 2013 at 11:50 am

     The point is to get the state out of any monopoly or part thereof that is potentially profitable as the bosses are desperate for every last tonne of shit to glob off.

     QFT

     The capitalists are determined to become even bigger bludgers on the working people and they do that by ‘buying’ up the commons so that people become ever more dependent upon the bosses.
5. Rich 5

   21 June 2013 at 11:24 am

   Most of the SOEs could usefully be converted into true worker or worker/customer co-ops, where each employee (including long-term contractors) or retail customer has an equal share and receives and equal dividend and vote to elect the board and CEO. This would give them accountability to the people with a real stake in them, and ensure that any excess profit would go back to the customers and workers.

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