Sprung! Nats caught plotting privatisations

This will probably be the biggest gaffe truth of the annual National Party conference – Nats finance spokesperson Bill English caught by TV3 on tape saying National will sell-off state-owned Kiwibank ‘eventually’ (i.e. straight after they feel they are safely ensconced in power permanently).

So much for ‘honest’ John Key & his merry band of corporate thieves men. For the National party trolls out there, forming and keeping Kiwibank state owned is good because:

  1. It gives Kiwis competition – a real choice between Oz owned banks that treat us with lousy customer service, and far better locals-focussed service from Kiwibank (and the credit unions). Weren’t National in favour of competition? Or was that not meant to include competition for your rich mates’ banking operations?
  2. It stops vast sums being siphoned offshore by the Oz-owned banks. This lowers NZ’s terrible balance of payments deficit, making our economy stronger.
  3. It strengthens our economy by retaining high-level banking planners/economists in the NZ economy. Oz banks can totally shift this offshore at any time; a domestic bank has no ability to use offshore head office staff to run the local bank.

The follow up questions for National has to be – what other state assets do you plan to sell ‘eventually’? The just-nationalised railways (Ontrack and Kiwirail) that ‘honest John’ was so disparaging about? Surely you wouldn’t sell our roads like you wanted to in the 1990s?

Of even more concern than National’s now exposed policies of privatising state assetts, or even borrowing to give tax cuts to the wealthy, is that of more public-private partnerships.

PPPs are the most dishonest form of privatisation – the state (us taxpayers) get to put up all the capital (and hence take all the risk), so some private company can ‘manage’ the assets’ operations for (typically) 30 years, while making a nice profit on the ‘management’. The company then ‘relinquishes’ the asset back to the state when its good and knackered from their lack of maintenance (increases the profits, dont’cha know?), leaving the taxpayer to fork out for extensively – and expensively – rebuilding the stuffed asset. PPPs have been such a winner overseas.

All premised on the ‘fact’ that the private management company is somehow ‘more efficient’ than state-run management, despite never having supplied proof of this assertion. No wonder National want to sell off Kiwibank – the last thing they want is this awkward reminder of a state bank out-performing their ‘superior’ free market chums…

And the Nats wonder why the Labour-types keep tagging wicked Prince John “slippery”.

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