New Zealand - political corruption and economic collapse

I think things have gone so far in terms of corruption that I wouldn’t expect anything other than a whitewash

Saudi sheep deal inquiry ordered

Auditor-General Lyn Provost has ordered an inquiry into public spending on the Saudi Arabia sheep deal

Radio NZ,

18 August, 2015

The Government paid $11 million to Hamood Al-Ali Al-Khalaf, in cash, sheep and equipment, saying he had threatened legal action over New Zealand's ban on live sheep exports and could have sued for up to $30 million.

Mrs Provost said she had received several requests, including from two members of Parliament, the New Zealand Taxpayers' Union and in a petition from more than 10,000 New Zealanders, to inquire into aspects of the Saudi Arabia Food Security Partnership.

She said she had decided to conduct an inquiry, and her office did not usually make any public comment on the substance or progress of an inquiry while work was under way.

"We will report publicly on our findings once we have concluded the inquiry," she said.

Labour Party MP David Parker welcomed the investigation, saying many aspects of the Government's Saudi sheep deal were disturbing.

Mr Parker said he hoped the investigation would restore New Zealand's international reputation for fair dealing.

"Spending over $11 million for the Al Khalaf group - including for a $4 million cash payment, a model farm in the desert and over $1m on flying sheep - has never made sense," he said.

Foreign Minister Murray McCully said the Government was comfortable with its involvement and would co-operate with the investigation.

"We have said from the outset that the Auditor-General is entitled to scrutinise any spending of public money, whenever she chooses, and we welcome her decision to carry out an inquiry into the Saudi Food Security Partnership," Mr McCully said.

But Green Party co-leader James Shaw said Prime Minister John Key should stand Mr McCully down while the inquiry was carried out.

Mr Shaw said he was convinced the Government paid a bribe to try to get a free trade deal with the Gulf States.

"The taxpayers sent 900 sheep and $11 million into the desert and it is now finally time to find out why," Mr Shaw said.

Going back to late June...

Free trade - not legal threat - behind Saudi deal: McCully

Foreign Minister Murray McCully is back in the country and has again faced questions over a controversial deal.

Foreign Minister Murray McCully is back in the country and has again faced questions over a controversial deal.

Free trade rather than a legal threat of up to $30 million was front of mind when a deal was cut to make a payment to a Saudi businessman and spend millions more on his private farm, Foreign Minister Murray McCully says.

Partial privatisation of state owned farmer Landcorp may be on the cards

Landcorp looks at farm sales as Finance minister Bill English rejects cash injection from the Government.

Stuff

18 August, 2015

Finance Minister Bill English is opening the door to the partial privatisation of state-owned farmer Landcorp.

The company's debt levels have come under close scrutiny since the failure of Solid Energy and after the steep decline in dairy prices.

But he said the company's debt position had not deteriorated badly since its last public reporting.

"They'll be redoing their budgets this week off the back of the last forecast payout," English said.

The company had shareholders' funds of about $1.5. billion against total liabilities of $360 million, according to its half year report to the end of December.

But it made a profit of just $1m in the last six months of 2014, down from $13.4m in the same period in 2013.

Landcorp owns 137 farms totalling 158,394 hectares, and manages another 226,692 ha of farms. Its livestock holdings are made up of 77,500 dairy cattle, 580,000 sheep, 82,000 beef cattle and 105,000 deer.

It employs 692 staff.

SOE Minister Todd McClay said he had an ongoing discussion with Landcorp's board and chairman.

"It's not something we are significantly worried about. But certainly Landcorp has about $1.6 billion worth of assets, they do have debt on their book."

He wanted to make sure that did not become an issue for them.

Not ruling anything out

English indicated Landcorp may sell farms to improve its balance sheet, but while he would not rule out partial privatisation he said the Government was not at that stage yet. The Landcorp board had looked at ways to raise capital, but not a float or big sell-offs.

"We are not ruling anything in or anything out because we aren't actually dealing with propositions at the moment."

But there had been discussions to ensure it was sustainable. He said he had confidence in the board.

He said he "would expect Landcorp to sell off farms if that's part of maintaining the sustainability of their business".

Overseas buyers would have to meet Overseas Investment Office criteria, which was currently the case.

Landcorp had an ongoing programme of sales that were not core to its operation and to sell down farms as part of the Treaty process.

It had not asked for capital from the Government, but it had contracts to develop dairy land in the central North Island and had to find the capital to do that.

It would be passing that information on to ministers.

"We have pretty intensive ongoing discussion with them. There's been a strategic review of Landcorp as there have been other public entities such as Public Trust for example.

There was more concern about Landcorp than there was last year because at $3.85/Kg of milk solids the forecast dairy payout was lower.

"They're a fairly big dairy operator and that's bound to have an impact but we need to see what impact that has."

Labour leader Andrew Little said if Landcorp was in trouble because of taking on extra debt for their farms, then that happened under the current government.

Little was "very concerned" at the news Landcorp farms could be sold offshore, and said it seemed to have "come out of the blue".

"This has never been foreshadowed by the Government before now, so I think we need to understand what is driving the Government to sell off Landcorp, which has been a successful farmer."

Landcorp bought and sold farms as part of its business, but Little said it raised questions when the company started selling off large chunks "out of proportion" to what it had sold before.

The domestic dairy situation and a low New Zealand dollar meant buying land was more attractive for overseas buyers, and Little said farms should not be sold offshore to people who would not add value.

"We've got to think long-term - do we want to lose control of our destiny, our productive land? And I say no."

Overseas buyers should be subject to stringent tests as to whether they could achieve better outcomes than New Zealand land managers and farm owners, he said.

Landcorp was "a good farm owner, a good farm manager, a good dairy farmer - so I'd be keen to know why the Government feels the need to start flogging off bits of it".

Little wanted to look at Landcorp's debt levels, and examine how it got into its situation if those levels were considered unsustainable.

SOEs will survive

English said all state owned enterprises were expected to sell assets that they did not need.

For instance Kiwirail had a lot of property, but it was a rail company not a property company.

English said other SOEs faced challenging issues.

"Post's business is shrinking, TVNZ has to deal with competition from Netflix and everybody else, the Public Trust, Kordia has a set of broadcast-related assets when technology has moved on."

But there were none that would not survive.

"We don't want them coming to the Crown asking for more capital. We expect them to be maximising the capital they've got and if they have bits and prices that are not crucial to their business then we would expect them to realise the value of those."

"They know not to come asking (for more capital)," he said.

• ss

Dairy model 'broken': Landcorp boss.

Misery on the farm: milk price slump raises spectre of ruin

Behind the deep political corruption in this country

Why Mike Hosking IS a National Party Stooge and why National Party Stooge David Farrar twists real concerns

The joke here is that the mainstream media must pretend to be balanced so that their facade of objectivity can remain in place..

National Party Stooge Mike Hosking has hit back at Winston Peter’s calling him a National Party Stooge.

the Daily Blog

18 August, 2015

The joke here is that the mainstream media must pretend to be balanced so that their facade of objectivity can remain in place.

It’s a facade that has become harder and harder to believe.  Since the killing off of all progressive voices in the media landscape and the Dirty Politics revelations of how close that mainstream media worked with the PMs Office via far right hate speech merchant Cameron Slater to smear and attack progressive voices, the role of the biased corporate media in NZ politics since National took power 7 years ago is a text book study of why we need a properly funded public broadcaster.

The reality is that most thinking NZers know the corporate media are fronted by Broadcasters who are there because they are idealogical acolytes. Sure they might ask the odd hard question here or there, but Paul Henry, Mike Hosking, Leighton Smith, Sean Plunkett, Duncan Garner and Patrick Gower have their roles because they are trusted to keep the discussion within the parameters of the hard right.

Anything that seriously challenges the myths of neoliberalism are simply not allowed on or are mocked. This vast right wing corporate echo chamber means it’s this narrow public space of permitted debate that gets amplified. Why Duncs and Heather are allowed columns to push their tedious thoughts, why Hosking gets cross over media deals, why Henry is on TV, Radio and the Internet simultaneously – it’s a control mechanism for our attention so a seamless narrative of neoliberal thought can smoother and shut down any oxygen challenging those voices.

We have 305 000 children in poverty, state houses so cold they are freezing people to death, corrupt private prisons, charter school failures, a Government that is abusing political power in a way never seen in this country before, growing inequality and the rich getting richer while the poor line up outside food banks  and a mass surveillance system run amok. Yet the hand picked pundits and broadcasters tell us that Key is a ‘moderate’ and that his supposed ‘moderation’ is the secret to his success.

We no longer have 4th estate watchdogs, we have propaganda lap dogs.

National Party Stooge David Farrar has attempted to twist all of this into an example of the Left not wanting diverse opinion. 

It’s hilarious…

The opposition parties are showing their true colours.

When TV3 made a commercial decision to change Campbell Live, resulting in the departure of John Campbell, MPs from Labourand Greens decried this as terrible. They said the media needs strong voices. They said it was appalling that John Campbell would no longer be on the air.

However yesterday we saw the opposition parties effectively demand that Mike Hosking be taken off the air, because – well he doesn’t always agree with them.

…so says the biggest National Party stooge in NZ. Farrar is a paid consultant/pollster for the National Party so anything he has to say is as unbiased as anything Sky City VIP gold card member Mike Hosking has to say about Sky City.

1 – TV3 did not make a ‘commercial decision’ they made a political decision to kill off Campbell Live.

2- Mike Hosking is a National Party stooge who is on the last remaining public broadcast TV station, that’s the difference. Add to this the fact that Seven Sharp is a bastardised current affairs lite fluff show where ideas go to die, and criticism as to how this show operates is completely legitimate.

If people don’t like what Hosking says, they can choose not to watch him, listen to him or read him.

Sure David, but he’s on a taxpayer funded TV station, so actually they do have a right to demand more than just ‘I’ll switch off’ as a solution.

If you think he really is biased, then you can complain to the Broadcasting Standards Authority, the Press Council or the Online Media Standards Authority.

Many of us have, but we’ve all soon how toothless those organisations are.

Instead we have a Muldoon like attack on the media, because basically Little says Hosking doesn’t agree with Labour enough.

Pfft, look it’s not that Mike has ridiculous right wing opinions, that’s fine, but there is never any counter weight to those ridiculous right wing opinions. News producers only put people on who agree with him, or they put weak progressive voices (like Jose Pagani) who you can’t tell if she’s  arguing for the right half the time.

Professor Jane Kelsey destroyed Hosking in under 10 minutes, you can bet she won’t be allowed on the show ever again.

But back to Farrar…

Here is the true hypocrisy. John Campbell had plenty of opinions. Does Andrew Little think John Campbell should not have had a prime slot? Of, course not. Little is just against media who don’t agree with him.

…BUT HOSKING IS ON A PUBLIC BROADCASTER – for the millionth time Farrar, TV3 is a private company, if they want to kill of a true public broadcaster like John Campbell for political reasons, that’s their right (just as it is our right to boycott them for doing that), but TVNZ has wider obligations to take on board.  Farrar is ignoring this so he can make his spiteful little point.

Back to Farrar…

The vast majority of editorials and opinion columns in Fairfax and APN publications are critical of the Government.

On Radio New Zealand’s Nine to Noon show, you can go all week without hearing anyone say anything vaguely supportive of the Government.

Anyway it is a good thing that Labour and Greens have shown their true feelings. They want a media that agrees with them and they will publicly attack and denigrate people in the media who don’t agree with them.

Who will be next on their hitlist?

…this is ridiculous. The sudden spike in mildly critical editorials is more market dynamics of those media outlets needing to pretend to be balanced in the face of liberal and educated readers walking away in droves than genuine criticism of the Government.

As for Farrar’s last point, seeing as he was donkey deep in the Dirty Politics scandals and is an apologist for a Government who have done more to intimidate and denigrate real investigative journalism in this country than any before it, trying to manufacture the opposition into a thought crime big brother state is ludicrous because he’s already helped National build it.

From another National Party stooge - the NZ Herald

Mike Hosking hits back: Winston Peters is 'grumpy and bored'

Broadcaster Mike Hosking has hit back at claims from Winston Peters that he is a "National Party stooge" whose "jowls are up the prime minister's cheeks".

On his Newstalk ZB show this morning, before a break, Hosking said: "I need to deal with Mr Peters and his small pop at me yesterday.

Had enough of Mike Hosking?

Winston Peters: Mike Hosking's Pollyanna world lets us all down

NZ Herald,

17 August, 2015

In Newstalk ZB's television advert, Mike Hosking breathlessly exclaims, "we keep pushing, asking the hard questions seeking clarity and ultimately resolution. We never sleep because your conversations never do, so if you want to be in the know, join us in the now". How then does he reconcile such highfalutin claims with a disgraceful piece of writing he penned in the Herald on August 13: Misery peddlers are milking a crisis?

It is the clearest sign yet that Mr Hosking is a National Party stooge. So much so, his show should be counted against National's electoral advertising.

Mr Hosking has the temerity to believe that he knows more about what's happening down on the farm than the elected Member of Parliament of a dairy farming electorate, who comes off a dairy farm and knows the difference between a cow and a bull? What is Mr Hosking's farming experience, his local organic supermarket?

Unlike this well-paid mouthpiece farmers know our dairy industry is going through the floor. These are not my words but a Farmers Weekly commentator who further adds, "timber is having major issues, lamb and wool are suffering and Auckland house prices are going ballistic".

So here are some facts Mr Hosking. Not your faux bonhomie but reality.

At the beginning of last season, Fonterra told its farmers to budget on $7.00 a kilogram of milksolids. Since farmers are still awaiting their final payout this has been eroded down to $4.40.

At the beginning of this season on May 28, Fonterra told its farmers to budget on $5.25, but a few weeks ago that was revised down to $3.85. New Zealand First believes it will sink to as low as $3.50 and this spill over affects provincial retailers from Kaitaia to Invercargill.

Mr Hosking's Pollyanna world has drawn farmer rebuke. One Sharemilker wrote to him saying, "the tone was patronising. Live a day in our shoes first. I invite Mike [Hosking] to work for a full day before he says it's not a crisis." Mr Hosking won't, he'll send a Seven Sharp reporter instead.

There is also disappointment at Federated Farmers' President, Dr William Rolleston's staunch defence of the foreign-owned banks. One dairy farmer from Otorohanga commenting, "I would have expected a bit better from Federated Farmers than endorsing this."

What is dawning on farmers is that people like Mr Hosking and National are fair weather friends. They talked up dairy in the good times but notice how dairy has been talked down to being only "5 per cent of the economy." A skilled interviewer would point out that since dairy is 20% of exports, we don't have an economy without exports. Dairying matters.

Now tourism, beef and IT are the great white hopes to plug the export gap we foresaw, but what the suits in National, Fonterra and the media did not. On the once strong dollar almost reaching parity with Australia's, here is more Hosking codswallop: "our dollar is more than a currency. It's our fiscal calling card, and at buck for buck it's a platinum card with no limit, accepted wherever we go. It speaks to our reputation our outlook our discipline".

Since then, it has dropped against the Aussie and fallen like a stone against the US dollar.

Mr Hosking's bias is such that after 2014 General Election he delivered this dispassionate assessment of the Prime Minister: "John Key gets it. Most of us are aspirational, most of us see good things when there are good things to see. And most of us want more of where that came from." On the controversial decision to send our men and women into in Iraq, he uncritically described the Prime Minister's decision as "brave and honourable."

And if you are looking for the hard questions and a conversation on the flag you can forget it. His critique of the alternatives was stinging: "I think we can safely say that they're a good bunch by in large and we do not lack for choice". Mr Hosking's jowls are up the Prime Minister's cheeks and the quality of public debate suffers.

So net, nearly 60,000 migrants every year is fine by Mr Hosking because there is no Auckland housing crisis. It does not matter that immigrants do not have to understand English or our values. It does not matter that we have corruption in immigration and state sanctioned corruption at that, where effectively money is the fast track to a New Zealand passport.

In the words of Mr Hosking, these are "happy days."

The Rt Hon Winston Peters is the leader of New Zealand First and the Member of Parliament for Northland

Remember, the government wants to sign a TPP agreement that would lock Pharma into paying the pharmaceutical corporations prices and forbid us from using generica drugs.

Lock in the changes before the TPPA is signed is the policy

Pharmac plea for more money rejected by Government

The Government rejected Pharmac's bid for more money in this year's budget, despite the drug purchaser's concerns it could not invest in new medicine.

Stuff,

18 August, 2015

And while Pharmac's $5 million gain will allow it to tread water, officials advised the Health Minister he would need to revise his expectations if the agency did not get the modest $11m extra it was asking for.

Pharmac's budget has remained relatively stagnant over the past five years, increasing between 0 and 1.74 per cent, with the exception of 2011-12 where it was boosted about 10 per cent.

The operating budget for Pharmac last year was $795 million, with a total spend of about $150 million more than that. A confidential rebate system brings the agency back under budget.

At last year's budget, it received no extra money.

In May, it was announced the agency's combined pharmaceutical budget (CPB) would be bumped up $5m to $800m.

In a December letter to Health Minister Jonathan Coleman, the chairs of Pharmac and District Health Boards requested total funding of $806m.

They noted "an increase to the CPB in 2015-16 is required for Pharmac to meet previous ministerial expectations for new investments of $10m in each year".

District Health Boards however only supported a $5m increase to Pharmac's budget. Any larger boost could place additional financial strain on an already tight public health sector, partly through increased dispensing costs.

But this option would "significantly challenge Pharmac's ability to meet expectations of $10 million new investment in 2015-16".

A Government commitment to a $5m pilot-fund for rare disorders could be met with up to $5m in investment.

In his letter of expectation to Pharmac, Coleman made no mention of any relaxation to the levels of investment the Government was requiring.

Pharmac chief executive Steffan Crausaz said the agency would continue to invest in new medicines from within its available budget.

"The budget level is only one part of the equation. Every year Pharmac secures between $40 to $60 million of new price concessions and these savings can also be used to meet Pharmac's expectations."

Neither the Ministry or the Minister's office were able to offer separate responses. The minister was travelling, and unable to comment.

Pharmac is due to appear in front of the select committee this week, but the meeting was closed to the public.

Meanwhile, a spokeswoman from Coleman's office said a taskforce had begun looking into issues around pharmaceutical margins early this year.

King said the Governmnent's decision meant New Zealanders would miss out on potentially life-saving drugs.

"The money could have been used for cutting edge treatments for cancer and purchasing a wider variety of new medicines which can make a huge difference to people's lives," she said.

"In submissions to the Minister, DHBs pointed out that their current levels of funding are not keeping up with the demand for medicine.

"This comes at a time when Pharmac's future is under threat from the TPPA and New Zealanders around the country are worried about rising prices for medicines."

We'll finish off on a lighter note