Nation building with the unions and Maori

Just been watching Bill English's TVNZ7's programme on the economy.

Skills and innovation are what is needed to build the New Zealand nation and make it successful.

Increasing productivity is the key. It is known we are sadly lagging behind the likes of Oz in the productivity stakes. Infrastructure development plays a big part as do more value added export products. Hard decisions need to be made by this government, not populist decisions.

Unfortunately we have the likes of unions (CTU Helen Kelly and EPMU stiff present on show) looking to increase productivity by giving the unionised a general wage order to equal Oz wages. Union thieves demanding high wages is why we currently have such poor productivity.

Then we have the Maori element (TPK Pauline Kingi and a 'Maori' accountant) suggesting that to be successful, New Zealand has to keep funneling taxpayer money via grievance industry settlements and racist sweetheart deals like that we are about to see this week on carbon trading and RWC broadcasting coverage. As if any of that helps lift productivity.

Most participants were cornered on agreeing with some form of property or land tax, without showing any conviction on the matter.

One very strong theme was that government spending is out of control, causing inflationary pressures because we have to borrow overseas. Some talked of raising GST and lowering income tax. IRD's John Whitehead had some really good ideas for the government. Never ever any talk of shooting the elephant in the room. Stopping the gigantic bureaucratic spend and paying down household debt down is the only way to free money up.

Throwing a bigger wad of taxpayer money in does not lift productivity. Nor does catering to racist element. Nor does forced saving.

Another strong theme was most on the show were enablers from big value firms who did little to help the 12000 plus SME mum and dad ventures that make up the bulk of of our economy.

Excellent hosting, Corin Dann. An enjoyable programme that highlighted exactly those who are pulling in the right directions and those that have their hands out.

Suck it in and get on with it

The unwarranted OCR bailout today tipped the scales on a couple of my 5 year fixed rate mortgages into negative terrority. Not worth breaking the contracted mortgages as that was the risk I took and I have enjoyed the previous three years in my favour.

I just cannot believe that Goff would suggest mandatory breaking of fixed mortgage contracts as a nice way of helping his Liarbour voters. That is absolutely ridiculous and has the potential to backfire downtrack as the economy recovers. The banks would be equally in their rights to cancel such contracts on an upward swing in their favour.

Just suck it in and get on with it. Like me, you took the risk on your contract.

Where it all started

The budget should be balanced,
the Treasury should be refilled,
public debt should be reduced,
the arrogance of officialdom should be tempered and controlled,
and the assistance to foreign lands should be curtailed
lest Rome become bankrupt.

People must again learn to work,
instead of living on public assistance.

A wisdom that transcends the years.

Attributed to Cicero, over 2000 years ago during the world's first ever credit crunch as Rome went deep into the red.

HT The Hound, Rural News Jan 20 2009

Parallel commentary here and here.

Global economy light and variable

So says Greg Elliot, a Kiwi boat designer long regarded as being ahead of his time. He should know what he is on about. His long standing class of 6 metre boats has been resoundingly selected for the next Olympics.

On the economy...

It's in trouble, he says. Simple as that.

That talk leads to boat building in Asian countries, particularly China, in the pursuit of lower overheads.

And this gem - what we here in NZ have long known...

The last nine years of socialist policies that have been running this country have destroyed manufacturing-based incomes: the cost of compliance. We we manufacturing here for many years and it's just cost-prohibitive to manufacture here, regardless of exchange rates.

Yes, we have a lot to thank Liarbour for.

Extracted from Rebecca Hayter article in Jan 2009 Boating NZ magazine.

Cunliffe: Still trying to run the show

there should be a mini-Budget in the new year and Labour was prepared to take a bipartisan approach to work on it

Would that be in the same vein of bipartisanship that was previously offered by Liarbour on matters economic?

Maybe Cunners should note that his side is no longer 'running the show'.

A "matter of urgency"...

The messiah and his willing accomplice discussing how to tackle those 'climate deniers amongst us'.

Economic meltdown?

All three of us are in agreement that the time for delay is over, the time for denial is over...

This is a matter of urgency and of national security and it has to be dealt with in a serious way.

With these two in cahoots, heading up the posse, the world economies are beyond stuffed.

True cost of KiwiSlaver exposed

The costs of KiwiSlaver are now being exposed for all to see as more and more people invest in these fly by night funds that have taken a beating in returns of late.

No $40 subsidy for member fees. The true cost to members is yet to be fully exposed when the honeymoon period ends and failing funds need to cover their actual expenses.

No tax credit to employers. Employers will now wear the full cost of providing that compulsory super. Doesn't look so good being a tax collection agent, does it?

No tax credit to members. Again, the odds for a great return are somewhat diminished.

Aah, it is so good to see the investment playing field levelled. Not quite far enough though.

The thing that still gets up my nose is why employers have to fund this super over and above the member's current gross. If I want to join a private super fund, why should I expect my employer to increase my gross pay? There should be no difference for those in KiwiSlaver.

Solid Energy doing the right thing

Solid Energy wanted to show that drug and alcohol impairment at work was unacceptable.

We believe this programme of testing is a very effective way of reinforcing that message.

Stockton has the worst health and safety record inside Solid Energy. Probably the Wild West on the Coast.

Anyone with a positive reading, confirmed by a laboratory test, would be supported through a rehabilitation programme as appropriate and in line with Solid Energy's drug and alcohol policy

Since the EPMU is onside with such matters, I issue a challenge for all unions to advise their members that drugs and alcohol in the workplace will not be tolerated. Maybe independent random testing is a service that unions could sell to employers country-wide whilst keeping in close contact with potential memebership.

Eradication of such impairment in the workplace throughout NZ would lift productivity no end. And the perception that unions exist to serve their red political master maybe lessened somewhat long term.

'World class' panhandlers

"There's a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hands," Rep. Gary L. Ackerman (D-N.Y.) advised the pampered executives at a hearing yesterday. "It's almost like seeing a guy show up at the soup kitchen in high-hat and tuxedo. . . . I mean, couldn't you all have downgraded to first class or jet-pooled or something to get here?"

The Big Three said nothing, which prompted Rep. Brad Sherman (D-Calif.) to rub it in. "I'm going to ask the three executives here to raise their hand if they flew here commercial," he said. All still at the witness table. "Second," he continued, "I'm going ask you to raise your hand if you're planning to sell your jet . . . and fly back commercial." More stillness. "Let the record show no hands went up," Sherman grandstanded.

Nice one guys. World class in panhandling.

GM, for instance, has about 450,000 retirees - more than three times the number of its current full-time employees - to whom it pays pensions and for whom it provides medical care. By some estimates, medical costs alone add $1,500 to the average cost of each GM automobile. And the company is facing an unfunded liability of more than $80 billion, about half its annual pre-downturn gross sales, for future health-care costs for employees and retirees and their dependents.

Just remember every gas guzzling Yank tank you buy could be US$1500 cheaper if it were not for the unfunded AGW union benefits loaded on top.

Jap crap really is best.

Santa comes early to Air NZ

In a not unexpected move, Santa came early to the largely taxpayer funded Air New Zealand yesterday putting 200 jobs on the block.

I'd love to be able to guarantee there won't be more job losses but I can't do that. The next six to 12 months are very difficult to forecast.

You can burn through a lot of cash if you don't adapt your business very quickly when your revenue and customer demand start to fall.

Any saving of taxpayers money has to be a Christmas bonus.

some members were in shock after receiving letters yesterday telling them their jobs were going

The usual suspects are screaming 'crisis', but the cuts are sound business in the face of the falling economy. Pruning unionised staff first is always a sound move. But as usual, they have their bases covered as there is an agreement not to stop hiring health and safety personnel when required. And guess where H&S drones are likely to come from?

Welcome to real world. Pity other SOEs are not so upfront about trimming their turkeys.

Sheeple bailing from KiwiSlaver

Radio Lefty reports that over 10,000 sheeple bailed out of active contributions to KiwiSlaver in the last month.

Having taken the government bribe and seeing their questionable investment tank in recent times, the hard reality of the credit crunch sinks in.

Financial columnist Mary Holm says more people yet may take a break from the scheme, but the number of people is not significant, given there are still more than 800,000 people in KiwiSaver

.
Not significant? At 10,000 per month, in ten months 10% of the suckers will be off the scheme.

Economy tanks, but people are still buying porn

Sex does not die with the economy. Condom sales are up 42%. Similar results in Oz.

They say people have more sex during recessions and we'd definitely say that was true of what we are seeing

Dvice is doing very well, thanks. Sales up 20% as everthing retail tanks around them. Economy? Nothing wrong from where they see things.

Deprivation, such as that experienced during a downturn are, compensated for in non-work activities, such as 'investing' in alcohol, luxury goods or sex life

Deprive me.

Enough cash till Christmas, then what?

No, unfortunately I am still here. I did not win Lotto last night. And neither did you.

The topic that is gaining more traction today is that of NZ Inc fast running out ready wedge, just like Iceland with its frozen banking system.

Mikhail Kullen has been very quiet of late. Some say awaiting the right moment to valiantly ride in on his primed steed to 'save the day'. More likely to appear late in a flagging election campaign to reel in wavering voters, cynics like myself might suggest.

The recently politicised Liarbour agency, Mickey's Reserve has seen fit to issue a statement today that there is only enough spare dosh in the system till the good times at Christmas are over. Excuse me, isn't that the same time time a 'mini-budget' has already been said to be required?

The political calculation will be feral. At issue is whether Clark and Cullen _ two extremely skilful political strategists _ are manufacturing a mini-crisis which will cement them as leaders in the voters' eyes if they come to the party (again) before the election by issuing an inter-bank guarantee to keep "Kiwis in business".

But to have a mini-budget, first you must be controlling the Treasury benches. Aah, that's where the crisis engineering comes in.

Since the global lack of credit is knocking the stuffing out of economies, Helen and Michael have partially saved the day with urgently arranged banking guarantees. Only trouble is that they did it without talking to the four big Oz banks that own so much of NZ Inc. Now they are letting that filter through.

Shortly, as the election campaign global economy worsens, the valiant knight will appear, offer a solution and all wavering voters will join up. Just by the skin of their teeth, Mikhail will have saved the day. And we will again have a coalition of the unwilling.

Yes, that coalition will be a seven headed hydra that I am sure global agencies will be sure to notice as all credit taps are firmly screwed shut for NZ Inc. Thinking of Mr. Scrooge? More like 'You ain't seen nothing like it'.

The alternative is a government led by someone with monetary experience who is making all the right noises about belt-tightening and direction change in these tough times.

You only have to choose it. Enjoy your Christmas hols.

A mere distraction

The imminent price rise by 'the most rapacious' power company is a mere distraction today.

A month before it announced the 10 per cent price rise, Contact posted a $237 million annual profit and said it was going to nearly double directors' fees to $200,000 each.

Cabinet has suddenly got interested for why? Slow to do anything about it a month ago, maybe some votes in it.

Helen Clark said it was a serious matter.

Now for something much more pressing.

Finance Minister Michael Cullen has previously warned the pre-election update will paint a bleak picture and show a significantly worse position than was forecast in his May budget.

The real feature, the parlous state of finances at the opening of the books. No votes to be had there.

"If we'd been blowing the bank as National advocates, chucking tons of money away in tax cuts year after year, we'd be in an extremely difficult position now."

Reminded yet again this is an election based on trust. And we cannot trust a rich prick merchant banker to look after the purse in the manner in which Liarbour voters are accustomed. Future ecomonics do indeed look bleak. For some.

"That brings the economy very much centre stage, because the issue is who has got the experience and judgment to lead this."

Very bleak, particularly after having been savaged by a most rapacious government. I know who I will trust and be voting for to lead the country through these tough times.

It will not be Liarbour.

Worst slump in 60 years

The government was plunged into turmoil yesterday as the chancellor admitted the full scale of Britain’s economic crisis.

Downing Street and the Treasury launched a desperate damage limitation exercise after Alistair Darling declared that Britain was facing “arguably the worst” slump in 60 years. As Treasury aides claimed that he had been misrepresented, Darling took to the airwaves to clarify his remarks.

However, instead of reassuring voters, the chancellor risked compounding the crisis by failing to modify his dire assessment. Darling insisted it was his duty to be “straight” with people. His warning that the slump will be “more profound and long-lasting than people thought” comes at the worst time for Gordon Brown as he struggles to shore up his leadership.

Others are trying to limit the damage, downplaying the message from the man controlling the money.

We know things are tough and understand that people are worried. But Britain’s economy is fundamentally strong.

This hardly gives activists a morale boost. We are out on the doorstep, trying to reassure people, at the same time as Darling is telling them we are all doomed.

Who is telling the truth at the top of government? It’s not clear whether Alistair Darling meant to tell us the truth about the mess that 10 years of Labour have left our economy in, but he has certainly let the cat out of the bag.

From comments.

Oh dear doesn't a service based economy work? Surprise surprise!!
Having either scrapped or sold off the engine (Design & Manufacture), the economy won't drive fwd.

and

It is capitalism that builds the house you live in creates the materials that build it, the food you eat, the clothes you wear, the car you drive, the booze u drink, the wealth that pays your pension or dole, the drugs that cure illness and the medical devices that help us.

Says it all. The Chancellor with the figures or those looking to be re-elected?

This has parallels here in NZ and I know who I would believe.

Borrowing to get rid of Winston First

Yes, it's Monday morning again. For those of you who have to haul your sorry ass out of bed and disappear into the dark, wet cold morning, here's some comfort for you.

It's going to be a big week.


Sense has come out of the Nats conference giving a strong, positive direction and points of difference. Instead of the self-serving negativity that continually emanates from Liarbour.

-I believe in hard work.
-I believe in education.
-I believe in a fair society.
-I believe in playing by the rules.
-I believe in the power of families.
-I believe in being pragmatic, and not being blinded by ideology.

Most of all, I believe that this country, that New Zealand, is capable of so much more.

JK gave a speech that has a sense of purpose and long term direction. Just what the seriously disgruntled electorate requires. His 10 points are inspiring and forward thinking, not just about maintaining the status quo.

Sure, there will be derogatory comment from the other side over a couple of percent extra borrowing in an $180bn economy, but it much less than most punters have on tick with a mortgage and other credit. Today's voter's are comfortable with high debt, particularly debt that is properly used for long term asset purchases, not frivolous discretionary spend on nice-to-haves.

And instead of raping your overtaxed wallet for the $5bn, they will only have to free some moths from the cobwebs there-in to service the interest of say $750m. It is sound economics to me, just the same way families should be operating their budgets. And getting a tax cut to boot might be the massive stimulus the economy requires. Some will say we are borrowing to fund tax cuts, others for infrastructure.

Pure semantics, have you never run a holiday up on tick so that you feel good and can put your head down upon your for the next few month's?

And the other topic for the week is will Winnie make it to Friday drinks at Bellamy's?

Keeping Stock has a great analysis. Action after the vote of confidence scenario looks tempting. Used and abused to max by the black widow herself. She will be ever anxious to cast off the Winston First millstone to improve polls.

I suspect that Winston will be cast adrift before Friday, but then he has lived through worse times. 5% is not a difficult target and any publicity...

So have a nice day while you commute in the smog, contemplating all this. I am off for a coffee and then will commute to my workplace at the dining room table from the lounge.

Have a good one, don't work too hard.

Feeling squeezed?

People will pay their fair share but you can’t push that,”

“My judgment at the moment is that there are a lot of people in this country who feel they work hard, they make their contribution and they’re feeling squeezed.

Does the above sound like you and your finances? Well, there is a white knight.

I’ve been very clear with my colleagues that there is no point them writing in saying, ‘Can we have some more money?’ because the reply is already on its way and it’s a very short reply

I suspect the reply is like Winnies two fingered lettered replies of late.

But seriously, the Chancellor of the Exchequer suggests we are in for rough ride.

Taxpayers are at the limit of what they are willing to pay to fund public services,

In his gloomiest assessment yet of the state of the British economy, Alistair Darling gave warning that the downturn was far more profound than he had thought and could last for years rather than months.

He revealed that he told Cabinet ministers this week that there would be no more money for schools, hospitals, defence, transport or policing.

I could never see the thieves running the show in NZ ever admitting that the taxpayer had reached their limit.

A dose of disappointment yet to come

As the recession bites, the BNZ is predicting interest rates will not stay the same as most hope, but actually need to rise to stave off recessionary forces.

The fact of the matter is, global money has become as expensive for NZ banks as it's been in many a year,"

"...While all and sundry are looking forward to falling interest rates, we are worried that term retail rates might have to go up - and stay there for a good while to come."

As households look for relief, businesses face increases in rates and they matter a whole heap more. Businesses is where the the rampant bureaucratic growth is yet to be felt. And felt it will be as more hit the wall as we drastically belt-tighten.

It might take a resolution of the global credit crunch, rather than an aggressive campaign of OCR reductions by the RBNZ to materially reduce the cost of raising money on these shores.

"...So as everyone is wondering whether or not the RBNZ will cut 25 basis points or not at next week's OCR review, we note that even a stream of rate cuts could well be just 'whistling in the wind' in relation to having any material effect on retail interest rates - which are, let's face it, what matter the most," Ebert said.

Are you ready for more disappointment in this winter of discontent?

Liarbour Luddites at it again

Instead of admitting they've had it good for a long time, these plonkers full of self worth are promoting why they will be first in line for a DCM post-election.

Don't Come Monday that is.

Soon such parasites on productivity might realise that economic times are changing and Christmas could be bleak for a bloated inspectorate being savagely dealt to by those with the reins.

The big picture

Yes readers and lurkers, this shows precisely what too many Liarbour years has done for us.

From the good folk at Economic Growth