From a Parallel Universe #23
This letter from today’s Dominion Post is fairly typical of a lot of comment to the papers and on talkback radio.
Selling the family silver!
The problem is that it is wrong.
The amount of dis-information/mis-information and if one is uncharitable untruth, on this matter which has been pumped out by politicians and others is incredible.
The situation has not been helped by Bill English’s poor performance on TVNZ’s Q&A on Sunday regarding this issue.
The statement about flogging land presumably refers to the Crafar farms. The government is not the party selling, in fact it is the receivers who are trying to sell the farms.
The land is not owned by ‘us’ it is the property of the Crafars and is being sold to pay their debts. A key issue is the lack of interest shown in the properties by NZ purchasers it would appear, until today when Landcorp appear to be interested.
If Landcorp buy the farms with taxpayer money, is that a good investment/ might these farms not land up being used for Maori land claims? Is that a good use of tax money.
At present we live in a free society where private property may sold freely, within existing laws, without the state saying nay unless the OIO is involved, Many who moan about this sale appear to be driven by xenophobia (because they see the potential puchasers as representing the ‘Yellow Peril” and to have forgotten the extent to which foreign capital enabled NZ to grow .
Furthermore, it is perhaps pertinent to note that Carter Holt Harvey has been trying to sell a number of farm units for some considerable time, again without any marked success. this might suggest either that the farms are over priced? Or that there is a shortage of capital + liquidity, or that people are wary of investing in NZ.
Regarding the gross inaccuracy re Kiwibank, this is just typical of the distortions being spewed forth by so many. The government has clearly stated that if state assets are to be sold, then they will campaign on the issue at the next election.
No, NO decision has been made to sell Kiwibank at this time. F
urthermore, the Capital Markets Working Party – appointed by Labour – suggested that it would be a good thing if many SOEs and related enterprises were subject to a partial sell -down to provide an opportunity for them to raise additional capital for expansion and to provide avenues for investment over and above property and the presently limited NZ stockmarket.
Given that the government has clearly stated that it wishes to promote a shift in savings into other forms of investment and Kiwibank has an apparent need for capital, then allowing NZer’s to invest would seem a good thing. Otherwise capital would need to be found from limited government revenues, which could well constrain the growth of Kiwibank. There is no suggestion that it ‘will be flogged off to an overseas bidder. Indeed, a problem may well be that the Kiwibank may not in fact be as successful as some would like to believe.
However, many commentators and politicians seem to have leapt to conclusions without any examination of the facts.
The reality is that additional capital could be raised by a sale to NZ investors, thus providing a home for savings. The Company Charter could be drafted so as to ensure a majority of NZ based investment and to restrict the extent to which any overseas entity, especially a bank could hold shares or influence.
However, it appears that in the last couple of decades the left has succeeded in imbuing a hatred of business and aided and abetted by Lazarus has stoked the fires of xenophobia as for example with Auckland Airport. This is then compounded by the general propensity for NZ business owners to sell out when their business grows.
As a rational individual Adam constantly seeks to understand just what universe so many in this country live on with their assumption that ‘gummint’ will provide and that ‘gummint’ should apparently own most things. Given that China and North Korea are communist, perhaps they would prefer to live there. Yeah Right!!
Comments are closed.
Without the land we loose our ONLY real advantage to compete in the world. We can’t borrow our way out of trouble, we have to trade our way out of it. Terrible idea t sell our way out of it.
I disagree, it is not the land but our expertise.
In addition, any produce grown in NZ and exported contributes to our trade. The government has mechanisms to prevent artificially low pricing so I am not convinced, but happy to discuss.
NZ was filled to the brim with people keen to get away from being tenants in their own lands. We are a primary producer full stop. Look at the balance of payments without the sheer bulk of produce from farms we are absolutely stuffed. We have to trade our way out of the hole we are in. Remember NZ is the most endebted society in the world more debt per person than Greece, Iceland or Spain.
I suspect we do not really disagree as much as you might think.
I agree we are a primary producer, but accepting that we should seek to exploit our skills and expertise in that direction. Thus in addition to being an efficient primary producer, of quality product, which by the way should be much more than just dairy, we should seek to exploit our expertise as well. In this regard we should look at how we can best exploit our intellectual capital in this area.
I am not suggesting we sell our way out of trouble, but that we trade and innovate our way out of trouble.
Furthermore, if we are to trade our way out then we have to accept that we need to be an open economy, but that does not mean that we cannot ensure that those who invest here pay their dues and abide by our standards.
Adam, the problem is that you, and I (I hope) are rational beings. the majority who expect the gummint to pull them out of the poo are not.
Alex you are right no government will pull us out, we need to drink a cup of concrete and harden up. Let kiwi’s do what we do best and work on improving our lot.