Will Bill English heed his own warning?

Written By: - Date published: 11:43 am, October 5th, 2011 - 18 comments
Categories: bill english, debt / deficit, economy, national - Tags: ,

Will double dipping double downgrade Bill English have the guts to heed his own warning?

Finance Minister Bill English has conceded stronger economic growth might make New Zealand’s current account deficit worse as company profits go overseas.

Mr English says the extent of foreign ownership of New Zealand companies means that when profits rise that has a negative impact on the deficit.

Under such circumstances surely only an idiot would make matters worse by selling more of our assets overseas, right?

18 comments on “Will Bill English heed his own warning?”

  1. Lanthanide 1

    Seems like a nice set up for a question in parliament.

    Does the minister of finance stand by his statement that foreign ownership of New Zealand companies has a negative impact on the deficit? Does the minister of finance stand by the estimate that, should National return to government after the next election, 30% of the assets up for sale will be sold to foreign companies?

    • Blighty 1.1

      6. Hon CLAYTON COSGROVE to the Minister of Finance: In light of his statement yesterday regarding foreign-owned assets that “we need to generate the kind of savings that will help New Zealand buy back those assets”, is it still the Government’s policy to sell State assets if it is re-elected, given that up to 30 percent of the shares he proposes selling could go to overseas buyers?

  2. queenstfarmer 2

    Under such circumstances surely only an idiot would make matters worse by selling more of our assets overseas, right?

    An idiot might, but an intelligent person could find that it doesn’t “make matters worse”.

    • Draco T Bastard 2.1

      Selling our assets and businesses overseas does actually make us worse off. The economists even know this as it’s what I was shown by a professor of economics in a university economics class.

      • queenstfarmer 2.1.1

        It always depends on the circumstances.

        And remember, as 10 economists the same question and you’ll get 20 different answers.

        • Draco T Bastard

          Generally speaking, I don’t ask economists anything as they’re all dishonest. If they were being honest they’d tell everyone that their favoured hypothesis doesn’t work as all the empirical evidence shows.

        • Irascible

          Good morning John Key. Do you have anything intelligent to add to the debate or is this another HardTalk debut where you display your inadequacies to the world?

        • Vicky32

          It always depends on the circumstances.

          What circumstances, do you think, could possibly make selling assets overseas a good idea?

          • DS

            How about when you’re the overseas investor that wants to make a stack of money? It’s a very good idea then.

        • mik e

          QSF researched based economics works chicago school is dogma . Chicago school is pushed down our throats by right wingers when the research shows better ways of doing things Rod Oram for finance minister for me of all the reading I’ve done Rod Oram has all the right answers. Trouble is is that National are doing very little let alone the right Thing when it comes to Govt leadership.Muddling Through. Is Not a Plan.David Carter admitted as much today QSF that they’ve done nothing .

    • Lanthanide 2.2

      “An idiot might, but an intelligent person could find that it doesn’t “make matters worse”.”

      No, but it doesn’t improve the situation, either.

      • queenstfarmer 2.2.1

        But it might, in the circumstances. That is the point that ideologues wilfully reject.

    • Colonial Viper 2.3

      An idiot might, but an intelligent person could find that it doesn’t “make matters worse”.

      As more foreigners own more assets in this country, any increases in our GDP will lead to more money being siphoned off overseas by foreign shareholders as profits.

      Its not brain science QSTF.

      • queenstfarmer 2.3.1

        In terms of those actual profits, of course. However, the assessment that ideologues never want to take place is far broader than that.

        • Colonial Viper

          Nothing matters apart from the profits.

          You forget that the neolibs are the biggest idealogues of them all .

  3. Draco T Bastard 3

    Under such circumstances surely only an idiot would make matters worse by selling more of our assets overseas, right?

    Or someone hired to sell our assets overseas.

  4. Ed 4

    I only partly heard Bill English on radio today lauding the purchase of Z as a welcome move for New Zealand to buy back some of the companies operating in New Zealand that are overseas owned. Perhaps I misheard him, but it did seem to make sense – provided that they are not all purchased by the NZ Superannuation Fund . . .
    It is certainly a contrast to what is an increasingly looking to be an ideological wish to sell sell sell other state owned assets – perhaps John Key will tell us their only election policy is all a mistake.

    • mik e 4.1

      Why would you sell off a renewable resource to buy some fuel delivery company that its product is running out ,political interference in our super by National government. Z is making way less money than the energy companies this is why we need to get rid of this govt. Treasury is getting put on the spot by the audit office when it should be John Key for not listening to Treasuries advice about SCFs not meeting the covenants on conditions of the $1.6 billion govt guarantee fiasco.

Recent Comments

Recent Posts

  • Compliance strengthened for property speculation
    Inland Revenue is to gain greater oversight of land transfer information to ensure those buying and selling properties are complying with tax rules on property speculation. Cabinet has agreed to implement recommendation 99 of the Tax Working Group’s (TWG) final ...
    7 days ago
  • Plan to expand protection for Maui and Hector’s dolphins
    The Government is taking action to expand and strengthen the protection for Māui and Hector’s dolphins with an updated plan to deal with threats to these native marine mammals. Minister of Conservation Eugenie Sage and Minister of Fisheries Stuart Nash ...
    1 week ago
  • Cameras on vessels to ensure sustainable fisheries
    Commercial fishing vessels at greatest risk of encountering the rare Māui dolphin will be required to operate with on-board cameras from 1 November, as the next step to strengthen our fisheries management system. Prime Minister Jacinda Ardern and Fisheries Minister ...
    3 weeks ago
  • Greatest number of new Police in a single year
    A new record for the number of Police officers deployed to the regions in a single year has been created with the graduation today of Recruit Wing 326. Police Minister Stuart Nash says the graduation of 78 new constables means ...
    3 weeks ago
  • Ensuring multinationals pay their fair share of tax
    New Zealand is pushing on with efforts to ensure multinational companies pay their fair share of tax, with the release of proposed options for a digital services tax (DST). In February Cabinet agreed to consult the public on the problem ...
    3 weeks ago