Sunday 22 August 2010

The good, the bad...

The National Business Review's "Plays of the Week" is always rather good. This week's is particularly nice. First, slamming National over its continued propping up of Kiwibank:
National’s decision to use taxpayer funds to prop up Kiwibank’s credit rating ensures not only will this dog remain on the government’s books but also the liability will continue to grow.

Only a few months after considering at least a partial sell-down of Xenophobiabank, the government has decided to give it a credit facility, allowing it to borrow about half a billion dollars more to try to keep the housing bubble inflated.

Massey University banking studies lecturer David Tripe told media the facility was basically a government guarantee that gave Kiwibank an unfair competitive advantage over the other main banks.

But there should be no surprise the spineless National Party has continued to pander to unthinking nationalism and economic illiteracy.

Just as with Kiwirail, that other capital-destroying “investment” made by the previous Labour government, National opposed Kiwibank when it was created.

However, when handed the levers of power it decided to send more funds down this giant black hole for taxpayer money, just as it did with Kiwirail.

Throwing good money after bad is a strategy only governments can get away with for any length of time, because they can continue to thieve from taxpayers to fund the stupidity.

If a private company destroyed this much wealth it would go bust faster than you can say “malinvestment.”
Then, despair over the fall of ACT:
What does Act actually stand for these days?

It’s the supposedly “liberal” party that brought us the draconian three strikes legislation, the party of small government that supports the creation of the Auckland Super Bureaucracy.

Meanwhile, Sir Roger Douglas continues to put out sensible policy proposals and alternative budgets that are ignored because he carries too much political baggage.
I wouldn't call the three-strikes legislation draconian, but it's definitely not targeted at a liberal part of the electorate. Sir Roger understood the problem with supercities. But NBR is right. It's hard to see ACT as a liberal party.


  1. Damn! That's good. "Xenophobiabank." "Malinvestment." Magic. :-)

  2. I loved that bit. How often does malinvestment make it into the NBR?