web analytics

Treasury? Leaks? Casino?

Written By: - Date published: 7:00 am, September 10th, 2010 - 14 comments
Categories: Economy - Tags: ,

I don’t always agree with Fran O’Sullivan. But she is a real journalist – one of the few.

Consider this from her piece in Wednesday’s Herald:

It will become clear in due time that the Government’s receivership option didn’t just appear out of thin air while Maier negotiated into the night to try to reach an accommodation with the preferred buyer.

And that the Treasury officials had been working on this for some time. And that word had obviously leaked into the market that the Government might entertain a so-called commercial solution aka receivership which arguably sparked a flurry of speculation before the trading halt was called on the Friday immediately preceding the $1.77 billion investor bailout.

As Maier said on Tuesday last week: “A lot of bets in the casino paid off big time today.”

and this:

What we have ended up with is very untidy: the Government has paid out “in the know” bond investors and foreign preferential shareholders who did not qualify for the guarantee.

It reminds me of those “in the know” who made huge amounts of money out of the 1984 devaluation. That was another badly kept secret, also worked on by Treasury; the details were in their briefing document “Economic Management”.

Now that Treasury is in charge of the receivership, let’s hope that it is not another casino for insiders. Please stay on this issue Fran; I think there is a lot more that we all need to know about what has gone on and what might go on in this sorry saga.


14 comments on “Treasury? Leaks? Casino?”

  1. IrishBill 1

    Yeah, I was struck by the similarities to some of the dodgy ’80s practices too: http://thestandard.org.nz/cutting-through-the-bullshit/

    It would be good if Labour and the Greens could announce a fully inquiry as a joint election promise.

  2. Blinglish said this in the house yesterday:

    [T]he Government will be shortly releasing proactively all the relevant papers that can be released, subject to commercial confidentiality, which will allow the member to scrutinise in detail all judgments and processes followed by the Government.

    No doubt “commercial confidentiality” will be used to hide the identity of those who traded in bonds in the last few weeks.

    And it increasingly grates that the Government would spend $2.4m to pay for counsellors for all of Christchurch but pay many many times that amount to those who do not deserve it and who gambled on the largesse and stupidity of this current administration.

  3. Roger 3

    While the government attacks beneficiaries it has become apparent who the real bludgers in society are.

  4. Salsy 4

    This is not to be tolerated, NZers voted in a man who led butal attacks on the NZD virtually collapsing the currancy to line the pockets of the rich. He is now seated deep within the govt, using the borrowing power of a nation to line the pockets of the rich. He has no interest in the New Zealand economy, or the future of those south island farmers SCF has been keeping afloat. John Key is programmed to profit financiers.

  5. randal 5

    This country has been owned by the banks since day one.
    nothing has changed.
    and it never will.
    all we can do is shrug them off every now and again.

    • Draco T Bastard 5.1

      It can change but everyone needs to know what’s actually happening in society through the auspices of capitalism. Once that’s known then we should be able to throw them off permanently.

    • Loota 5.2

      This country has been owned by the banks since day one.

      Maybe its time this country started truly owning some big banks then.

    • ghostwhowalksnz 5.3

      Banks maybe , but it seems to have moved down the food chain to now include financial parasites.
      Then again makes a change from the farmers who had a veto over economic policy.
      It seems that the Timaru MP is in the thrall of SCF blocking the tabling of documents in parliament. I wonder why that is. We know Blue Chip had some national Mps on its payroll so maybe those interest free loans from SCF went to politically connected borrowers.
      Alister Bell , national regional chair in Auckland, is from the South Canterbury Bell dynasty. The Bell family Trust owned helicopter is available for National party politicians

  6. tc 6

    Methinks this is a huge political mistake from Blinglish and Sideshow, I’m not surprised about taxpayers bailing out their rich mates or the attempts to cover up, blaming the scheme that labour put in etc etc….stock in trade for the Nats really.

    However in doing this they’ve angered all the other investors in Hanover/Bluechip etc who’ve got zip. They will see this for what it is not what the spin doctors want and as such pissing off a fair few traditional nat voters who don’t happen to be wealthy influential sth island blue blooders.

    That greed just blinds the senses….what little senses there are that is.

  7. BLiP 7

    I’m always prepared to listen to a good conspiracy theory but I can’t really see one here. Any money changer worth his salt would have smelled the blood in the water once the SCF audited accounts were finally presented to Treasury. Then it was just a matter of taking the gift presented by John Key via the government guarantee by:

    diverting attention and energy by dangling a tasty capital injection,

    apply delay tactic after delay tactic while the money changers load up SCF with some but not sufficient funds via discounted bonds

    manufacture a “serious fraud” allegation to scare off any remaining confidence in SCF,

    pull the plug on the distraction game as per step one,

    National Ltd™ comes riding to the rescue,


    Quick hundy mill in the bank, thanks National Ltd™ – I’m lovin’ it.

  8. john 8

    I vote a peoples take over. All personnel of Act and the top dirty cream of National, including John Key to be deported to their ideological homeland the US never to return! John has a house in Hawaii he can put them all up there!

  9. peterlepaysan 9

    No conspiracy. Simply a Govt/Treasury cock up.
    They both walked into that one.
    English is an ex treasury policy wonk and probably could not see the bleeding obvious either.

Links to post

Recent Comments

Recent Posts


  • Time for Paula Bennett to front up on HNZ P Fiasco
      Social Housing Minister Paula Bennett needs to rein in Housing NZ and sort out the mess that’s been created by the organisation’s misuse of methamphetamine testing procedures, says Labour’s Housing spokesperson Phil Twyford.   ...
    5 hours ago
  • A charge on plastic bags – debunking some myths
    The launch of my Members’ Bill last week, which would introduce a 15 cent charge on single-use plastic bags at the check-out, has generated a lot of comment on mainstream and social media. From The Paul Henry Show at the ...
    GreensBy Denise Roche
    2 days ago
  • National’s $1trillion property sandcastle
    The National government's failure to fix the housing crisis has seen the ballooning and unsustainable property market touch the $1 trillion mark, Labour’s Finance spokesperson Grant Robertson says. "Labour wants an economy that creates high wage work that is based ...
    2 days ago
  • Government failure on housing crisis drives Reserve Bank to add tools
    If the Government was delivering a comprehensive plan to fix the housing crisis, it is unlikely that the Reserve Bank would be continuing to pursue debt to income limits for lending for housing, says Labour’s Finance spokesperson Grant Robertson. ...
    3 days ago
  • International embarrassment for NZ likely over National’s failure to protect Maui dolphin
    New Zealanders who care about Maui dolphin should prepare to feel embarrassed: the Government is about to be put to shame on the international stage for its lack of action to protect Maui’s dolphin. The International Whaling Commissions’ 66th Biennial ...
    GreensBy Eugenie Sage
    5 days ago
  • Why don’t we spend $1b to keep people out of jail, rather than spending it on keeping them in?
    Earlier this week, Corrections Minister Judith Collins announced the government’s ‘solution’ to our burgeoning prison population. It seems that most, if not all, of Bill English’s hard-won surplus is going to disappear into another round of prison-building.  That must be ...
    GreensBy David Clendon
    7 days ago
  • PKE Ship Sent Packing – Not Too Soon
    It is appropriate that the palm kernel expeller (PKE) ship off Tauranga has been sent packing. For weeks I have been saying this ship needed to be sent away, but it seems as if MPI has been trying to find ...
    GreensBy Steffan Browning
    7 days ago
  • Do you #LoveSnow?
    I was a lucky kid. When I was about five or six my mum and auntie took me up to Whakapapa on Mt Ruapehu and taught me to ski. As a young kid I thought there was no bigger ...
    GreensBy James Shaw
    7 days ago
  • Awa Kairangi/Hutt River – Swimmable?
    On Thursday night I hosted a great swimmable rivers meeting organised by the local Greens in Heretaunga (Hutt Valley). It was great to see about 70 people attend and engage in the topic. We were welcomed by Te Atiawa representative ...
    GreensBy Catherine Delahunty
    7 days ago
  • September benefit figures disappointing
    The Government is out of touch with the reality that fewer people are going off the benefit and into employment or study, says Labour’s Social Development spokesperson Carmel Sepuloni.  “The quarterly benefit numbers for September are concerning. They show that ...
    7 days ago
  • MFAT officials refuse to back Prime Minister on Saudi sheep claims
    An Ombudsman’s interim decision released about the existence or otherwise of legal advice on the multimillion dollar Saudi sheep deal shows MFAT has failed to back up the Prime Minister’s claims on the matter, says Labour MP David Parker. “The ...
    1 week ago
  • Barry Coates on his first weeks in Parliament
    Week one in Parliament has been quite an occasion. I would like to share the experience. I had given up on the prospect of getting into Parliament before the election and had been enjoying the diverse work I was doing ...
    GreensBy Barry Coates
    1 week ago
  • Nats still planning to take Housing NZ dividend
    Housing New Zealand’s Statement of Performance Expectations shows that the National Government intends to pocket $237m from Housing New Zealand this year including a $54m “surplus distribution”, despite promises that dividends would stop, says Labour’s Housing spokesperson Phil Twyford. “After ...
    1 week ago
  • Parliament must restore democracy for Ecan
    Parliament has a chance to return full democracy to Canterbury with the drawing of a member’s bill that would replace the Government’s appointed commissioners with democratically elected councillors, says Labour’s Canterbury Spokesperson Megan Woods. “In 2010, the Government stripped Cantabrians ...
    1 week ago
  • Police struggle to hold the line in Northland
    Labour’s promise of a thousand extra police will go a long way to calming the fears of people in the North, says the MP for Te Tai Tokerau Kelvin Davis.  “Police are talking about the Northland towns of Kaitaia and ...
    1 week ago
  • Vote Sooty Shearwater/Tītī for Bird of the Year
    Sooty shearwater (Puffinus griseus) are amazing and deserve your vote in Forest and Bird’s Bird of the Year competition.  They make one of the longest known bird migrations, flying an annual round trip of 64,000 kms across the entire Pacific ...
    GreensBy Eugenie Sage
    1 week ago
  • Urgent action on agriculture emissions needed
    Immediate action is required to curb agricultural emissions is the loud and clear message from Climate change & agriculture: Understanding the biological greenhouse gases report released today by the Parliamentary Commissioner for the Environment, says Labour’s Climate Change spokesperson Megan ...
    1 week ago
  • Super Fund climate change approach a good start
    Labour Finance Spokesperson Grant Robertson and Climate Change Spokesperson Dr Megan Woods have welcomed the adoption of a climate change investment strategy by the New Zealand Super Fund. “This is a good start. It is a welcome development that the Super ...
    1 week ago
  • Energy use going in the wrong direction
    New data out this week from Statistics NZ paints a concerning picture of energy use across the economy under this National Government. You won’t be surprised to hear that there is some seriously worrying information here about how dirty our ...
    GreensBy Gareth Hughes
    1 week ago
  • Raising the age the right thing to do
    The announcement today that the Government will leave the door open for young people leaving state care still means there is a lot of work to do, says Labour's Spokesperson for Children, Jacinda Ardern "The Government indicated some time ago ...
    1 week ago
  • Junior Doctors go on Strike
    Thousands of junior doctors took strike action for 24 hours this week for better working conditions and safer working hours.  The Green Party supports their cause, and particularly their claims to reduce the number of days worked from up to ...
    GreensBy Denise Roche
    1 week ago
  • Coleman plays down the plight of junior doctors
    Junior doctors are crucial to our health services and the industrial action that continues tomorrow shows how desperately the Government has underfunded health, says Labour’s Health spokesperson Annette King.  “Jonathan Coleman’s claim that he has not seen objective evidence of ...
    1 week ago
  • Inflation piles pressure on National and Reserve Bank
    While many households will welcome the low inflation figures announced today, they highlight serious questions for both the National government and the Reserve Bank, Labour’s  Finance Spokesperson Grant Robertson said.  "While low inflation will be welcomed by many, the ...
    1 week ago
  • Officials warned Nat’s $1b infrastructure fund ineffective and rushed
    Treasury papers show the Government rushed out an infrastructure announcement officials told them risked making no significant difference to housing supply, says Labour’s housing spokesperson Phil Twyford.  “Like so much of National’s housing policy, this was another poll-driven PR initiative ...
    1 week ago
  • More cops needed to tackle P
    New Police statistics obtained in Written Questions show John Key is losing his War on P, highlighting the need for more Police, says Opposition Leader Andrew Little.  “New Zealanders expect serious action on P but today’s hodgepodge of half-measures won’t ...
    2 weeks ago
  • Strengthening our relationship with the Rātana movement
    It was a privilege to visit Rātana Pā last week with fellow Greens’ Co-leader James Shaw, our Māori Caucus and senior staff to meet with the leaders of te iwi mōrehu, to strengthen the ties between the Green Party and ...
    GreensBy Metiria Turei
    2 weeks ago
  • MBIE docs show country needs KiwiBuild, not Key’s pretend “building boom”
    John Key’s spin that New Zealand is in a building boom does not change the massive shortfall in building construction as new MBIE papers reveal, says Labour Party housing spokesperson Phil Twyford.  “We can fix the housing crisis, by the ...
    2 weeks ago
  • 1 in 7 Akl houses now going to big property speculators
    Speculators are running riot in the Auckland housing market making life tougher for first home buyers, says Labour’s housing spokesperson Phil Twyford.  Newly released data from Core Logic shows a 40 per cent increase in the share of house sales ...
    2 weeks ago
  • Disconnected thinking dirties the water
    Iain Rabbitts’ belief that drinking water quality, charging for water use and the land use that leads to water quality degradation should be treated separately is part of the problem we have right now in this country. The connection is ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Report back from Hands Off Our Tamariki hui
    This week I attended a hui in Otaki organised by Hands Off Our Tamariki about the proposed reforms to the Child Young Persons and their Families Act. Moana Jackson and Paora Moyle spoke.  They expressed deep, profound concern about the proposed ...
    GreensBy Jan Logie
    2 weeks ago
  • Labour mourns passing of Helen Kelly
    Helen Kelly was a passionate advocate for working New Zealanders and for a safe and decent working life, Leader of the Opposition Andrew Little says.  “Helen Kelly spent her adult life fighting for the right of every working person to ...
    2 weeks ago
  • National’s visionless immigration policy
    National’s recent immigration announcement is a continuation of the visionless approach to government that it has displayed in the last three terms. Rather than using the levers of government to implement a sustainable immigration policy that benefits new and current ...
    GreensBy Denise Roche
    2 weeks ago
  • Andrew Little: Speech to the Police Association Conference 2016
    Police Association delegates, Association life members and staff, representatives from overseas jurisdictions. Thank you for inviting me here today. The Police Association has become a strong and respected voice for Police officers and for policing in New Zealand. There is ...
    2 weeks ago
  • 1,000 more police for safer communities
    Labour will fund an extra 1,000 Police in its first term to tackle the rising rate of crime, says Leader of the Opposition Andrew Little. “Labour will put more cops on the beat to keep our communities safe. ...
    2 weeks ago
  • Call for all-party round table on homelessness
    Labour is calling on the Government to take part in a roundtable meeting to hammer out a cross-party agreement on ending homelessness.  Labour’s housing spokesperson Phil Twyford said the country wanted positive solutions to homelessness, and wanted the political parties ...
    2 weeks ago
  • Seclusion rooms in schools
    Schools are undoubtedly stretched and underfunded to cope with students with high learning support needs. But this cannot justify the use of rooms (or cupboards) as spaces to forcibly isolate children. It has emerged via media that this practice continues ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Public should get a say on new Waikato power station
    I had an opinion piece published in the Waikato Times about a controversial proposal to build a new gas-fired power station. It’s not on their website yet, so here it is: If you think the public would get a say ...
    GreensBy Gareth Hughes
    2 weeks ago
  • MSD and their investment approach
    The Government talks about investment but there is no investment. It is not investment if it isn’t over the whole of life and if there is no new money  — Shamubeel Eaqub   Investment sounds like adequate resourcing but this ...
    GreensBy Jan Logie
    2 weeks ago
  • Certainty needed for community services
    A couple of months ago I was at a seminar where three community organisations were presenting. Two of the three presenters were waiting to find out if their organisation would get a contract renewed with MSD. Not knowing if their ...
    GreensBy Jan Logie
    2 weeks ago
  • Domestic Violence – some advice for the media
    For the purpose of this piece, I’m going to use Domestic Violence (DV) as a proxy for intimate partner violence. DV is not isolated to physical abuse in a relationship between people with the same power. DV is a pattern of ...
    GreensBy Jan Logie
    3 weeks ago
  • Leroy’s New Paw Prints
    Leroy, an Auckland great dane recently received a new 3D printed bionic leg after cancer was discovered. I think this is a fantastic story and highlights the real potential of additive manufacturing, or 3D printing Leroy’s prosthetic was printed in titanium and was ...
    GreensBy Gareth Hughes
    3 weeks ago