A newspaper that pays no tax complains about tax avoidance!

January 16th, 2014 at 11:00 am by David Farrar

The Dom Post editorial:

Taxes are what we pay for a civilised society, according to the great American Supreme Court judge Oliver Wendell Holmes.

If that is so, then aggressive tax avoidance is an offence against civilisation.

I’d love to know what the Dom Post defines as aggressive tax avoidance. I presume it means tax avoidance done by other companies, but not by ourselves.

Google, for instance, whose slogan used to be “Don’t be evil”, in 2012 paid a mere $165,000 in tax in New Zealand. Amazon paid $1.6m tax on sales of $46.5m. And Apple paid $2.5m on sales of $571m. Does anyone think these companies are paying their fair share?

I’ve got a much better example. Fairfax Australia (owns the Dom Post) paid no tax at all last year on revenue of A$2.01 billion. That’s outrageous I’m sure the Dom Post agrees, and I look forward to them joining with the NZ Herald to campaign on their owners paying more tax. The fact it means they may have to sack a few editorial staff to afford their increased tax bills I’m sure is not what is preventing them from not being total hypocrites.

Or maybe the Dom Post will say you can’t compare them to Google and Apple because tax is paid on profits, not revenue. Well yes they are, so why the hell did the editorial not mention that actual profits made by Google and Apple in New Zealand? They made a conscious decision not to tell their readers that essential piece of information.

For the record I’m all for the IRD taking court action against tax avoidance that is artificial, as defined in the Tax Act. They do this on a regular basis. For example, they are battling APN (NZ Herald) for $48 million.

Some will argue that companies are entitled to minimise their taxes. Tax avoidance, after all, is legal, unlike tax evasion. Some even say that companies owe their loyalty only to shareholders, not the taxpayer, the government or their fellow citizens.

This is plainly wrong. Taxes provide the schools, hospitals, infrastructure and social services on which we all depend. Corporations benefit directly from state-funded education, research, roads, courts and public health programmes. So they should contribute to “the cost of civilisation”.

I agree people should pay their taxes. Fairfax has paid no income tax in the last year. This means they are not contributing to the cost of civilisation. According to their editorial it doesn’t matter what their taxable profit is, as that may have been minimised by accountants. Amazon paid tax equal to 3% of their revenue. As the Dom Post seems to think you should pay tax on revenue, I think Fairfax should pay A$60 million immediately as their contribution to the cost of civilisation.

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A very weird editorial

January 6th, 2014 at 8:48 am by David Farrar

Today’s Dom Post editorial is very weird. It links the Obama-Key round of golf to the US-NZ thaw in military exercises and that the US is trying to limit China’s influence in the Pacific. It goes on to warn about getting too chummy with the US.

It is one of the more bizarre editorials of recent times. First of all it ignores the fact that Obama is well known for not using golf as a diplomatic tool. Only 5% or so of his games have been with elected officials, half of them with Joe Biden. He played a round of golf with Key, because they get on well and were both in Hawaii. To try and make this all about China is frankly weird and off the planet.

Even worse, they seem to be suggesting that the game of golf was a bad thing, because it might offend China. Jesus Christ. Seriously? I can only presume the normal editorial writer is on holiday, and this one was written by a 17 year old intern.

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Dom Post on living wage

December 19th, 2013 at 3:00 pm by David Farrar

The Dom Post editorial:

The stated aim of Wellington City Council’s living wage policy is to reduce poverty and lift workplace morale and productivity. If only life were that simple.

It is not. Poverty can no more be eliminated at the stroke of a pen than world peace can be delivered by a beauty contestant wishing for it.

Mayor Celia Wade-Brown’s council is not reducing poverty. It is simply taking money from one group of citizens – ratepayers – and giving it to another much smaller group – the 450 council staff who presently earn less than $18.40 an hour.


The gesture would be admirable if councillors were funding the $750,000 cost out of their own salaries, but they are not. It is easier to be generous with other people’s money than one’s own.

Even worse, at least one Councillor who voted for the living wage, refuses to implement it in his own business. He won’t pay it himself, but will vote to force ratepayers to do so. He is of course a member of the Labour Party.

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Dom Post on referendums

December 17th, 2013 at 5:54 am by David Farrar

The Dom Post editorial:

The referendum on state asset sales was not the first held under the Citizens Initiated Referenda Act 1993. It was the fifth.

If opponents of partial privatisation believe the Government is now honour bound to reverse its position on state asset sales, then previous governments were presumably honour bound to give effect to the popular will expressed in referendums on firefighter numbers, the size of Parliament, tougher prison sentences and smacking.

Yes I look forward to Labour and Greens announcing that the first act of a Labour/Green Government will be to reduce the size of Parliament to 99. If they refuse to do so, then by their own rhetoric they are being arrogant and out of touch.

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Disagreeing editorials

December 13th, 2013 at 2:00 pm by David Farrar

The Dom Post says the MFAT leaks were justified:

That is why the leakers could argue they had a wider duty than their narrow duty of loyalty to the Government. Of course bureaucrats should not and must not leak willy-nilly. A broadly impartial public service should be able to be trusted with certain kinds of information. Leakers know they run a risk if caught. They must be quite certain that the public benefit of the leak outweighs the duty of confidentiality. And they must be prepared to face the music if caught.

In this case there was a wider public duty and therefore the leak was justified. No government has the right to demand silence from the victims of a misbegotten purge. No government should expect the “debate” to be confined to the victims and their executioners. No government should seriously expect this sort of thing not to leak.

I note the Dom Post was the recipient of many of the leaks.

The Press has a different view:

The proposed restructuring, which had been ordered by the new head of MFAT to better align the ministry with New Zealand’s evolving trade promotion and diplomacy needs from Europe to Asia, aroused enormous opposition within the ministry. MFAT people had, of course, every right to oppose the changes. But, as Rennie observes, at that stage the correct and professional way to do that was through the proper process, which had then barely begun. In this case, the public servants concerned were not blowing the whistle on any impropriety but were seeking rather to shortcut and sabotage a proper process.

This is key. The Tier 3 managers resorted to sabotage before the process had barely begun.

The motive, at least so far as the leaker of the Cabinet papers is concerned, was ultimately to discomfit the Government. That person could not be identified with certainty but there was a strong suspicion it was a former member of the Labour Party research unit. Other MFAT individuals may have been trying to protect themselves and their own positions in MFAT.

The point about leaking and whistleblowing is that they are justified as serving the public interest by the need to protect the integrity of an institution or a system. In this case, the leakers undermined the system by taking on what amounted to a party-political role. They also undermined the honourable cause of whistleblowing.

I agree with The Press.

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Dom Post says Labour needs clean out

November 11th, 2013 at 6:52 am by David Farrar

The Dom Post editorial:

Labour leader David Cunliffe has been crowing about the growing number of National MPs who have decided to stand down in 2014, likening it to rats deserting a sinking ship. Instead of seeking to make political capital out of his opponent’s obvious drive to bring in new talent at the next election, he would do better to follow suit and start sending the underperformers and time-servers in his own caucus the message that it is time to move on.

Almost a third of Labour’s caucus entered Parliament in the 1980s or 1990s.

Rejuvenation is critical to all political parties. It allows them to bring in new blood to remain fresh in the eyes of voters. However, all too often it is not the parties themselves that do the job, but the electorate, via crushing defeats which see large numbers of sitting MPs turfed out of Parliament.

That is what is so significant about the rejuvenation underway in National. So far, seven of its 59 MPs – nearly an eighth of its caucus – have indicated they will not seek re-election, and there was talk last week that up to six more are considering whether to stand again.

Rejuvenation is a sign of strength, not weakness.

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Good news for the West Coast

October 25th, 2013 at 9:00 am by David Farrar

Stuff reports:

Australian miner Bathurst Resources has hopes of gaining access to the Escarpment coal mining site by Christmas after receiving final Environment Court approval for the controversial project on West Coast conservation land.

The court’s final approval was granted yesterday. It had said on August 8 that it intended to grant consent to the Escarpment mine on the Denniston Plateau, near Westport. However, the approval may be appealed. An appeal must be lodged within 15 days. …

The Government welcomed the court’s decision, labelling it exactly the type of investment the country needed to create jobs and higher incomes.

The Green Party decried the sacrificing of the Denniston Plateau and its unique landscape and threatened species for an open cast coal mine.

Have you seen photos of the Plateau? It’s pretty ugly to be blunt.

The company was still confident of producing about 180,000 tonnes of coal from Escarpment by the end of June next year, Bohannan said. It would be taken by rail to Lyttelton and shipped from there, and also shipped from Westport to Taranaki for export.

Bohannan said the coal would end up in steel mills and other production facilities in Japan and China mainly. Economic Development Minister Steven Joyce and Energy and Resources Minister Simon Bridges welcomed the decision.

“The Escarpment Mine and associated works are expected to create 225 direct jobs and approximately $85 million each year will go to employees, suppliers, contractors and transport providers,” Bridges said.

“This is great news for the West Coast. The mine will inject almost $1 billion into the New Zealand economy over six years, and provide $30 million each year in royalties and taxes,” Joyce said.

West Coasters need jobs. This will provide them.

On a sort of related issue Stuff reports:

Raglan residents are fuming after learning that a United States oil company is a month away from drilling off their coastline the deepest exploratory well in New Zealand’s history.

Texas-based Anadarko Petroleum Corporation plans to begin drilling the well in 1500 metres of water before December.

Anadarko was held liable, with BP by a US judge for the Gulf of Mexico oil spill of 2010. The company paid BP US$4 billion to settle claims.

Raglan Fishing Charters’ Brian Hooker is worried about the environmental impact on marine life and is threatening to lead a fleet of boats to picket the Anadarko vessel the Noble Bob Douglas when it arrives at the end of next month.

Drilling will be carried out in water 1500m deep at the Romney Prospect in the Taranaki Basin about 100 nautical miles (204km) west of Raglan after the Government granted a licence in 2006.

So the exploration will be 204 km offshore. That is akin to the distance between Wellington and Wanganui.

I also note he licence was granted in 2006. Will Labour condemn the exploration?

The well will be New Zealand’s deepest and comparable to the Macondo well, which spilled an estimated 4.9 million barrels of oil into the Gulf of Mexico during 87 days in 2010 after an explosion that killed 11.

Don’t you love it when media report advocacy as fact. Who says it is comparable to the Macondo well? Is it also comparable to the 39,999 wells that didn’t have a spill?

Mr Hooker is angry no-one consulted the people of Raglan and asked his opinion before the licence was granted.

“People are going to get riled up. They [Anadarko] are going to get a lot of obstruction to that job.”

Anadarko would be in the neighbourhood for a short time but its activities would have a permanent effect, he said.

“It’s going to ruin the seabed and the sealife. It’s going to f…… change the ecosystem on that coast and for what reason? For gold.”

You would think the exploration is happening 2 kms off-shore, not 204 kms out to sea.

The Dom Post editorial is a good read also:

Instead it has been left to industry spokesman David Robinson to point out that Greenpeace’s worst-case scenarios take no account of the differences between the Gulf of Mexico and New Zealand’s waters or the technological developments since the Deepwater disaster. Here, unlike the Gulf, the most likely finds are gas and light condensate, not heavy black oil. Here, the pressure in underwater fields is typically so low gas and condensate have to be pumped out. At Deepwater Horizon oil spewed out. Then, a cap for the well had to be designed and built before it could be deployed. Now so-called “stacking caps” are kept at strategic locations around the world, available to be deployed at a couple of weeks’ notice.

None of that is an excuse for complacency. Immense damage could be done even by a seeping well in a couple of weeks. But nor is it reason to turn the country’s back on an industry that could provide a massive boost to the economy, generate a swag of high-paying jobs and swell stocks of a scarce resource.

Details most would be unaware of.

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Dom Post on Planet Peters

October 24th, 2013 at 1:00 pm by David Farrar

The Dom Post editorial:

Things are simple on Planet Winston Peters. There, all that is necessary for something to happen is for Mr Peters to declare it to be so.

Hence, delivering inhabitants of Planet Peters a higher rate of return on their retirement savings is simply a matter of him promising a “world class model unsurpassed by anything in the world”. Protecting those savings from sudden market drops is an equally simple matter of guaranteeing the capital invested in the scheme. No downside, no need for individuals to monitor the performance of their investments. Just leave it all to Mr Peters. In fact, vote for Mr Peters and you can have your cake and eat it too.

Unfortunately, Planet Earth orbits a different sun from Planet Peters. In this universe, the value of investments is determined not by political decree but by events beyond the control of individuals and governments. The price someone is prepared to pay for a hectare of land in Dannevirke, 500 grams of butter in Paris or a shareholding in Air New Zealand is influenced by the weather in southern Europe six months ago, the progress of negotiations over the debt ceiling in the United States, the political situation in China and a thousand and one other imponderables.

Mr Peters, for all his claims to omniscience, does not control those things. Markets go up and markets go down. What was a solid investment last week is a poor investment this week and vice versa.

The only way Mr Peters can guarantee the capital invested in any particular fund is to require those who have not invested in it to foot the bill if its managers misjudge the market. The only way he can guarantee a superior return for his “KiwiFund”, especially when he proposes to handicap its performance by directing where it invest its funds – “substantially in New Zealand” – is by pumping public moneys into it when the inevitable happens and other funds outperform it.

The editorial is spot on. Peters is proposing that taxpayers underwrite $20 billion dollars or more of investments.

As I said earlier this week, Peters should set up his own KiwiSaver Fund and lets see how many people actually trust him enough to invest in it.

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Coroner on Greg King

October 18th, 2013 at 7:00 am by David Farrar

Stuff reports:

Top lawyer Greg King took his life, depressed, burnt-out, and haunted by the dead from the cases he had known.

Coroner Garry Evans has released his findings into the death of King, 43, whose body was found on November 3, last year, in Dungarvan Rd, Newlands, Wellington, not far from his Mercedes car.

In the car was a typewritten note that began:

“To everyone: How can I explain the unexplainable?”

It said that after nearly 20 years as a defence lawyer he was burnt out, disillusioned and depressed.

“He says he is haunted by the dead from his numerous homicide cases and hates himself for what he has done,” Evans said.

“He says he has been genuinely torn between doing his job and his conscience, which keeps asking him ‘Is this really what you want to be doing?'”

I don’t think I could be a criminal defence attorney. I admire those who can, because it is vital defendants get fair trials and are only found guilty if there is no reasonable doubt. But I would personally struggle with defending those accused of certain vile crimes. I think I would struggle to cope, as Greg King obviously did. It is a mark of his humanity that just performing his role caused him such anguish (not to suggest those without such anguish are  inhumane).

In his finding, Evans mostly paraphrases the note in which King spoke of the experiences with criminals that had dulled his human senses and the victims of serious crime who affected him profoundly.

What a sad loss.

Milnes-King had told the coroner her husband had a massive breakdown in June, 2012, the night after delivering his closing address for Ewen Macdonald in the Scott Guy murder trial.

The trial had taken a substantial toll on him and his breakdown was the most intense she had seen, going on for hours whereas he would usually be able to pick himself up.

In a sense he is a further victim of that tragedy,

In the week before King’s death, The Dominion Post’s investigative reporter Phil Kitchin had approached King about an allegation from a disgruntled former client of irregularities in legal aid billing.

The Ministry of Justice, which administers legal aid, had found King’s legal aid bill for the client’s case had been “well within” the range of what was reasonable and to be expected but in King’s absence the investigation could not be taken further.

A senior police officer who investigated King’s death thought that, in King’s frame of mind at the time, the thought of a media circus over legal aid could have felt overwhelming, but Milnes-King thought her husband was unlikely to have been unduly worried by the allegations made against him.

I think it was probably a factor, but not a determinative factor. The Herald reports:

The police officer who investigated Mr King’s death, Detective Inspector Paul Basham, said he had investigated matters involving Dominion Post investigative reporter Phil Kitchin, who was looking into allegations made against Mr King by a former client.

The disgruntled client had alleged irregularities in legal aid billing.

But he said Ms Milnes-King believed her husband was unlikely to have been unduly bothered by the allegations, and there was no mention in the suicide note.

Kitchin gave evidence he had contacted Mr King on November 1, two days before Mr King was found dead, but described their conversation as “cordial, courteous, professional and polite”.

He told Mr King it was possible he would not publish a story.

What would be interesting to know is whether or not a story was written and was in the system, so to speak. But I think it is far to conclude that the inquiries by the Dominion Post were not a major factor, and were not improper. Of course it is all speculation, as we don’t know exactly what led to the sad decision, but the lack of any mention in the suicide note is influential.

Ms Milnes-King said her husband had helped a lot of individuals and organisations on a pro bono basis, and had a charitable spirit which saw him engaged with numerous groups.

“He represented clients for free and made many unpaid trips to the West Coast acting for the Pike River contractors who were left out of pocket after the tragedy.

“This is an extremely difficult time for our family. With the first anniversary of Greg’s death in a few weeks, we trust people fully understand and respect our need for private time.”

Sensible Sentencing Trust’s Garth McVicar said New Zealand had lost one of the greatest men he had the good fortune to meet.

“Greg gave his time willingly and freely to assist many of the families and victims within the wider Sensible Sentencing Trust family,” Mr McVicar said.

“Greg’s knowledge of the law, his passion for people from all walks of life and his drive to leave society better than he found it was unique and irreplaceable.’

Such a glowing tribute to a defence lawyer from the Sensible Sentencing Trust shows how special Greg King was.  The only good to come out of this will be more people confronting their depression and mental health issues at an early stage to avoid further situations like this.

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Dom Post on Labour’s own goal

October 2nd, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

The immensity of the task facing new Labour leader David Cunliffe is starkly illustrated by his party’s bungled attempt to embarrass the Government over new minimum house deposit rates.

Mr Cunliffe has talked about putting Labour on a war footing. This week’s events show it is not on a war footing. It is in a deep slumber. …

It is six weeks since the bank announced a minimum deposit level of 20 per cent for most home buyers. You’d think in that time Labour would have been able to come up with a young family who’d been saving for several years and had had the dream of home ownership snatched from their grasp at the last minute. Instead the best the party could manage was a 23-year-old IT consultant who was not even sure he would live in a house, if he bought it. “If it’s good enough I could live in it, otherwise it could be an investment property,” said Kanik Mongia.

No criticism of Mr Mongia. Good on him for saving enough for a 10 per cent deposit on a $400,000 to $500,000 home.

But does Labour really want to portray itself as the party of upwardly mobile young property investors? And is it really prepared to undermine the integrity of monetary policy to give Yuppies a leg up?

It was a staggering own goal. They propose destroying the independence of the Reserve Bank so a 23 year old can get a bank to fund a $500,000 investment property for him. It would be difficult to find a more unsympathetic case to highlight.

Not only did they fail to find someone better, they had their leader railing against property investors in the same story as they are promoting one.

I’m reluctant to blame parliamentary staff for the failings of a party, but in this case the bungle should ring warning bells. I have to assume that Cunliffe wasn’t told that the photo op he was doing involved an aspiring 23 year old property investor. Surely he would have said no if he was told.

So this suggests that his leader’s office didn’t do due diligence on the person. They should have had a conversation with him and found out that he was thinking of using the house as an investment property.

At this early stage you can get away with errors like that, but going into the election you can’t afford to have such fuck ups.

Labour’s failure to find a more suitable “victim” for its campaign indicates that it is either out of touch with the issues or not well connected to the community it purports to represent.

However, the party’s fortunes will not be transformed simply by the leader performing better. The party must also do its bit. On this week’s evidence it has a long way to go.

Normally it is the Government that is happy when there is a recess as it means no question time. I’d say Labour should be very happy there is no Parliament this week, because they’d be getting a massive mocking in it, if there was.

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Dom Post on The Pope

September 24th, 2013 at 11:00 am by David Farrar

The Dominion Post editorial:

He prefers a Vatican guesthouse to the luxurious papal apartment occupied by his predecessors, he’s swapped a bulletproof limousine for a battered old runabout with 300,000km on the clock and he ducked a symphony concert organised in his honour because he had more urgent business. “I’m not a Renaissance prince,” he said.

The big tests are still to come, but six months after cardinals chose 76-year-old Argentinian cardinal Jorge Bergoglio to succeed Pope Benedict XVI as the head of the Catholic Church, it looks as if they made an inspired choice.

I agree.

Cardinal Bergoglio, now Pope Francis, might just be that rarest of creatures – a holy man. Not for him the trappings of wealth or the layers of intermediaries that separated his predecessors from the real world. One of his first actions as Pope was to call his newspaper vendor in Buenos Aires to cancel his delivery. Another was to call his shoemaker. “No red shoes, make them black as usual.”

And it is not just his personal style:

He has said he is not interested in judging people on the basis of their sexuality and has opened the door to a discussion about the possibility of married priests. He has also said the church’s focus on abortion, marriage and contraception is too narrow and is driving people away.

That does not mean the church is about to change its position on any or all of those issues, but it does indicate a new willingness to consider issues of importance to Catholics.

That can only be good for the church and a world desperately in need of goodness and compassion.

I don’t see a change in doctrine, as much as emphasis. But even a 2,000 year old institution does change with the times to some degree. In fact one of the massive design faults in religions like Islam is an inability to modernise because there is no central authority in the religion. Christian churches can and do modernise to reflect the changing world, hence why the Catholic Church no longer bans reprinting Galileo’s works.

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Labour’s challenges

September 18th, 2013 at 12:00 pm by David Farrar

The Dom Post editorial:

Three days in the water and Team Cunliffe has struck its first snag.

The snag is the abdication of deputy leader Grant Robertson. Labour’s new leader and the party’s MPs, including Mr Robertson, did their best yesterday to put a positive spin on the surprise development.

MPs were “joining together” and “putting the party first”, Mr Cunliffe said.

The new line-up featuring finance spokesman David Parker as deputy leader was the “strongest” that could be put forward, said Mr Robertson, who has replaced Trevor Mallard as shadow leader of the House. However, the reality is that the new leader has lost an opportunity to heal the wounds created by the internal feuding that has bedevilled the party since its 2008 election loss.

Whether Mr Robertson declined overtures from the Cunliffe camp, as the bush telegraph suggests, or Mr Cunliffe preferred Mr Parker as his deputy is beside the point. If Mr Cunliffe did not offer Mr Robertson the job he should have.

After a three-way primary contest for the leadership laid bare the divisions between MPs, and the divisions between MPs and the wider party, Labour not only needs to talk unity, it needs to display it. The best way to achieve that would have been for the two main contenders for the leadership – Mr Cunliffe and Mr Robertson – to present a united front to the world.

I understand that if Robertson had clearly stated a desire to be Deputy, Cunliffe would have appointed him. But he was hesitant and not keen – presumably to keep future options open.

That may be an indication Mr Robertson is fearful of becoming entangled in the wreckage should the Cunliffe experiment capsize.

It may also be an indication that Mr Robertson has not yet abandoned his own leadership ambitions.

Whatever the case, Mr Cunliffe has grounds for concern.

Remember that while the members vote for the leader, it is the caucus that has the sole job of sacking one.

Team Cunliffe has successfully rounded the first mark but one hull is lifting out of the water and there are signs some of his crew are thinking about abandoning ship. Anticipate developments.

The best tweet yesterday was about how a capsized Mallard was sighted in San Francisco Harbour :-)

The Herald editorial:

Grant Robertson’s decision to spurn the deputy leadership does not bode well for the Labour Party under its new leader. David Cunliffe had intimated his support for Mr Robertson in the clear hope of reconciling the caucus to the result of the party election.

Mr Robertson, preferred by 16 MPs to 11 for Mr Cunliffe and seven for Shane Jones, had given every impression in the campaign that whatever the result he was unlikely to rock the boat. Now he is making waves.

His decision is a declaration that he does not wish to work too closely with the new leader. Instead he will be Labour’s shadow leader of the House, a role that may let him range widely of his own accord.

The decision suggests he has not put his leadership ambition aside for the time being. If he was content to wait he would have continued in the deputy role, an ideal position for keeping your name to the fore and proving yourself capable in the leader’s absences. But an ambitious and honourable deputy is also supposed to give the leader unconditional support. That perhaps was the obstacle for Mr Robertson continuing in a job he has reputedly done well.

It is hard to interpret the decision as anything other than a lack of confidence, and a desire to keep future options open.

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A not very useful poll

September 14th, 2013 at 1:00 pm by David Farrar

The Dom Post reports:

John Morrison is leading incumbent Celia Wade-Brown in the race for the Wellington mayoralty, according to a poll of Dominion Post readers.

Note this is a poll of readers, not of adults. It is both unrepresentative and probably fairly self-selecting, so this means that any results are not necessarily representative of how Wellingtonians will vote. That is not to say Morrison may not be ahead, just that this “poll” is not a very useful indicator.

Mr Morrison, who has been a city councillor for the past 15 years, had support from 27 per cent of the 635 readers surveyed last week – while Ms Wade-Brown trails on 17 per cent.

Putting aside that it is not a representative sample, the sampling error would be 3.8%, if it really was a poll of 635 readers in Wellington City.

Of those surveyed, 275 were eligible to vote in the Wellington City Council elections.

This is the number that counts and should have been highlighted earlier in the story.  That is a 5.9% margin of error.

In terms of raw numbers, 75 readers said they are voting Morrison, 47 readers Wade-Brown and 118 readers are undecided.

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Public hygiene ratings

September 11th, 2013 at 2:00 pm by David Farrar

The Dom Post editorial:

Log on to the website of the Auckland Council, or its Palmerston North counterpart for that matter, and you can find a hygiene rating for every eatery in the city, plus the date it was last inspected.

Log on to the Wellington City Council website and you will see all sorts of information for restaurant and cafe owners but nothing for the public.

The Auckland and Palmerston North councils have decided that their first obligation is to the public, not business operators.

Wellington City Council is conflicted about where its loyalties lie. The council does inspect premises and does issue cleaning, repair and closure notices, but it does not maintain a public register of hygiene ratings, does not require eateries to display their ratings, as Auckland and Palmerston North do, and only reluctantly surrendered to The Dominion Post records showing which eateries had failed to meet minimum hygiene standards in the last financial year.

Absolutely this info should be on public display. You should not have to use LGOIMA to prise it out of the Council.

Most people would think that is information that should be provided to the public as a matter of course, but not Wellington City Council operations and business development leader Raaj Govinda. In a letter to the affected businesses last week, he said the council was “extremely reluctant” to provide the list and “has not done so willingly”.

The council was not in the business of “trying to close people”, he later explained. Fair enough.

No-one wants businesses to close, dining options to be reduced or staff to be put out of work. But no-one wants food poisoning either.

The best guarantor of business viability and patrons’ health is the publication of hygiene ratings. That way everyone knows what the rules of the game are and who is, and is not, playing by them.

It is surely no coincidence that in Auckland and Palmerston North, where ratings are public, the vast majority of eateries meet the highest “A” standard. They cannot afford not to when their customers know their competitors two doors down the road are also getting a top rating.

Absolutely. And maybe sites like Trip Advisor could link to the hygiene rating!

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Dom Post and Grey Power on flexi super

August 28th, 2013 at 1:00 pm by David Farrar

The Dom Post editorial:

Ohariu MP Peter Dunne already has one thing in his favour as he pushes for flexible National Superannuation: significant public support.

According to a Fairfax Media-Ipsos poll in February, 49 per cent of people would like to choose when they receive their state pension, with reduced or enhanced rates depending on the age they start drawing payments.

Certainly, Mr Dunne’s proposal, which the Government agreed to consider as part of its confidence and supply deal with UnitedFuture, breathes some fresh air into the superannuation debate. It is well worth the discussion kick-started by a Treasury scoping document issued on Monday. 

A more hysterical response from Grey Power:

Allowing national superannuation to start at age 60 would be a cruel poverty trap for people who are short of money, Grey Power says. …

“This latest idea from Peter Dunne is one of the more cynical, cruel and dangerous bits of stupidity I’ve heard in a very long time,” said Grey Power president Roy Reid.

“It will be a poverty trap for financially hard-pressed people already on low incomes who will be tempted to take an early but low pension with no hope of it ever increasing to the rate that people who can afford to wait until they’re 70 will get.”

Mr Reid says Mr Dunne is a typical MP who has no idea of what life at the bottom of the heap is like.

“It’s like offering a starving family a loaf of bread today, and every day hereafter if you take it now, or two loaves a day and a big box of sausages every day if you wait for 10 years to collect.”

Mr Reid says Grey Power will fight the Government if it takes up the idea – and it wants Mr Dunne out of Parliament.

My God, the hysteria. Grey Power obviously thinks elderly people are so stupid they can’t be trusted to make decisions about what is best for them.

if you are 60 and in bad health, the option of early retirement could be a massive advantage.

Of course there are potential problems, but we need a rational discussion, not mad rants.

I note also that the Grey Power President has declared he wants certain MPs to be defeated. So I hope Grey Power will be registering as a third party for the election campaign.

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Dom Post on OSH changes

August 12th, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

It is a rare feat for a government of any hue to embark on changes to workplace laws that win the approval of employers and unions alike.

Labour Minister Simon Bridges has managed to achieve that with the overhaul of health and safety rules and regulations he revealed last week.

The package activates nearly all the recommendations from the Independent Task Force on Workplace Health and Safety, which was set up following the Pike River Coal mining tragedy.

The fact the measures have been broadly welcomed by the Council of Trade Unions and Business NZ is a good indication the task force struck the right balance between the need to reduce on-the-job accidents  and strangling businesses with red tape.

I think the key thing is the flexibility for smaller businesses, as a one size fits all prescription would be very bad,

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Drinkers not stupid

June 25th, 2013 at 1:00 pm by David Farrar

The Dom Post editorial:

The eight Wellington city councillors who voted to ban off-licence alcohol sales after 9pm in the hope of curbing the harm from people guzzling booze before they hit the pubs have overlooked one very important point – their targets are not stupid.

Unlike the Councillors arguably!

The move will not stop the pre-loaders from getting a head start before they go out for the night. If anything, it is likely to see them start drinking excessively earlier in the evening, causing more problems than it will solve while penalising every responsible drinker from one end of the city to the other.

Yep, it will. Many don’t start drinking at home until 10 pm or so but if they have to go buy the alcohol before 9 pm, the parties will simply start earlier and last longer.

Councillors who support the proposal, adopted by eight votes to seven, say it will help prevent people pre-loading at home or side-loading – avoiding paying bar prices by ducking out of pubs to buy takeaway alcohol or to consume previously hidden caches.

The desire to tackle those problems is laudable. Pre- and side-loading are undeniably factors in the excessive levels of intoxication that are a blight on Wellington’s nightlife.

However, simply banning off-licence sales after 9pm will solve nothing. It is absurd to believe it will be beyond the wit of those who pre- and side-load to get organised enough to visit off-licences before they have to stop selling alcohol.

Yet, it will disadvantage someone doing their household shopping late at night, who can’t buy a bottle of wine with it.

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Dom Post on National Standards

June 20th, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

The time has come for teacher unions to accept that national standards in reading, writing and mathematics are here to stay.

Parents clearly want plain-English reports about how their children are progressing in the three most important building blocks for a sound education, and the policy has been overwhelmingly endorsed at the last two elections.

It is therefore in teachers’ interests to work with the Ministry of Education to ensure a sound system of assessment and data collection. Sadly, the signs this week are that teacher unions and representatives will continue cutting off their noses to spite their faces.

One of the strongest arguments teachers have advanced against the standards is that there is a lack of consistency in the way they are applied and insufficient moderation at a national level. It is therefore difficult to judge, on the raw data, how well one school, or even pupils within the same school but with different teachers, are performing compared to others.

That is a valid concern, and one that the ministry has always acknowledged would need to be addressed as national standards were bedded in. Its solution is an online tool designed to assist teachers to make more reliable and consistent assessments, thereby giving more confidence in the integrity of results. Known as the Progress and Consistency Tool, or PaCT, it is being trialled this year and will be compulsory from 2015.

Given the fears teachers hold about the inconsistency of national standards results and the lack of moderation, the public could be forgiven for thinking they would fully support the introduction of the tool. Instead, the primary teachers union NZEI, the Principals’ Federation, the Association of Intermediate and Middle Schools and the Catholic Principals’ Association have called on school boards and teachers to boycott PaCT.

It’s the solution to the very thing they have been complaining about – and their response is to boycott it. It’s appalling.

They say because the system requires them to judge national standards by working through tick boxes of achievements to generate a result, it will undermine their professionalism and reduce quality teaching.

The claims are ridiculous. Ensuring consistent assessment in reading, writing and mathematics across schools will have no impact on how individual teachers seek to inspire, guide and educate their charges. All it will mean is that when an 8-year-old boy at a decile 1 Auckland school and an 8-year-old girl at a decile 10 Wellington school are assessed as being above the standard for reading, there is a much greater degree of confidence that the results are accurate.

If I was a primary school teacher I’d be embarrassed by having a union that is so hostile to consistent assessment.

Maybe the Government should play the same game as the NZEI, and remove it from every working group on educational policy in the country? They’ll get to represent their members on pay negotiations, but why should they be treated as a professional body on other issues when they so clearly are not?

If teachers fear the information being released is inaccurate, then the answer is to work with the Government to make sure the system in place is as robust, reliable and fair as possible

Most teachers are doing that. But the union activists are doing everything possible to stop this.

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Dom Post on WCC

June 17th, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

Wellington City Council chief executive Kevin Lavery said he felt “deflated” when councillors blew his carefully crafted annual plan out of the water. He was being diplomatic, no doubt. In fact, the politicians had behaved irresponsibly.

Mr Lavery had presented them with a plan that held rate increases within the council’s self-imposed limit of 2.5 per cent. But then councillors voted to fund extra projects – and by the end of the meeting the rates increase had jumped to 2.75 per cent. Mr Lavery was entitled to feel miffed. Officials “actually gave you $300,000 to spare”, he noted. Instead, they had overshot.

This was bad enough, but Councillor Bryan Pepperell rubbed salt in the wound. He said council staff should work to reduce the rates increase to 2.5 per cent when the full council meets in two weeks to adopt the yearly budget. This was an outrageous suggestion, and Mr Pepperell rightly got a caning for it.

Cr Simon Marsh said it was like saying, “we made the mess, now someone else clean it up”. Exactly.

The buck has to stop with the politicians themselves. They have to make the tough calls on cuts and they have to resist the urge to fund their pet projects. In this case they failed to do either.

We need Councillors who can make tough decisions, rather than keep increasing our rates beyond the ability of households to pay.

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Dom Post on leaks

June 11th, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

Leaks are a vital safeguard against the abuse of power. In recent years they have been the means by which the public learned that New Zealand’s diplomatic efforts were being compromised by indiscriminate cuts within the Ministry of Foreign Affairs and Trade, and that some of the country’s richest people and companies were using offshore tax shelters to avoid paying their fair share of tax.

More recently they were the means by which the public learned that the Government Communications Security Bureau had run off the rails.

Labour leader David Shearer’s call for police to seize UnitedFuture MP Peter Dunne’s emails and question him under oath about the leaking of the GCSB review suggests he has a remarkably short memory. It is little more than a year since Labour colleague Phil Goff used leaked Mfat documents to reveal that cuts within the ministry were undermining New Zealand’s diplomatic capability. The Labour leader’s comments also show a worrying lack of understanding of important principles. Is Mr Shearer really suggesting the police should have the power to seize material from anyone suspected of embarrassing the government?

That is exactly what Shearer and Robertson have been saying. And if they become the Government, we can only assume they will be trying to get leakers arrested.

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Green Councillor worries about Dom Post

June 6th, 2013 at 12:00 pm by David Farrar

Iona Pannett blogs:

The story on the creation of call centre jobs does seem to have the overtone of promoting a certain mayoral candidate. I hope that The DomPost will uphold the ideals of the Fourth Estate and ensure that reporting is unbiased and balanced.

WCC Watch responds:

Lambton Ward councillor, Iona Pannett has blogged that she hopes that all mayoral candidates get equal coverage following John Morrison’s front page coup announcing the 300-500 call centre jobs he brokered for Wellington.

I totally agree – in fact I would go further and say that any candidate whether they be in the mayoral race or standing for a ward seat, should get a front page story if they bring over 300 jobs to the city in a single deal. Wellington needs job growth and new business Pannett is totally right that we should celebrate that – no matter who brokers the deal.

Yep. And it is rather churlish to be seen complaining that someone who brings so many jobs to Wellington gets publicity for it.

But something tells me the Greens are actually just wanting the Dom to give Celia Wade-Brown more coverage.

In fairness to the Dom Post, Pannett does just call for equal coverage and the paper has dedicated a lot of column space to Wade-Brown this year. But naturally those have largely been about the calamities and cock ups around the out sourcing of jobs, protests against central government policies, luxury office refits and the dumping of a CEO.

Well that is equal coverage!

I think its pretty simple – Morrison did good work and got a good story. Wade-Brown didn’t know why her hands weren’t on the steering wheel and got slammed for it. Acting like there is a conspiracy is just daft.


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Editorials lash Norman

June 5th, 2013 at 12:00 pm by David Farrar

The Dom Post editorial:

If Russel Norman’s purpose in likening John Key to former prime minister Sir Robert Muldoon was to demonstrate that the Green Party is now as eager to make personal attacks as other political parties, his speech to the Green Party’s annual conference in Christchurch should be judged a triumph.

And their problem is one you lose a brand attribute, it is very hard to get it back. If the Greens ever again proclaim they don’t do personal attacks, people will and should laugh.

If, on the other hand, the Australian-born and educated co-leader of the environmental party was attempting to convince voters he shares their experiences, it was an abysmal failure.

When Muldoon was Prime Minister, Norman was running around Australia promoting Marxism.

However, to suggest Mr Key’s personal style is akin to that of Sir Robert is to do nothing but betray ignorance.

The two could not be more different. Sir Robert was a micro-manager; Mr Key delegates. Sir Robert snarled; Mr Key smiles. Sir Robert banned journalists from press conferences, insulted foreign leaders and once punched a demonstrator outside a meeting. Mr Key occasionally gets a little tetchy.

“Divisive and corrosive” Sir Robert certainly was, although, ironically, his command and control approach to running the economy was probably closer to Green Party policy than anything seen since he was voted out of office in 1984.

That’s a good point. Many of the economic policies of the Greens are Muldoonist.

The curious thing about Dr Norman’s attack is that it is he who has resorted to the Muldoonist tactic of attacking the man and Mr Key who has responded by playing the issue.

The Press editorial is similar:

The strident personal attack by the co-leader of the Greens, Russel Norman, on Prime Minister John Key at the weekend may have gone down well with the 100 or so faithful he was addressing at a party conference in Christchurch.

But to most others, even those on the Left, it will have seemed strikingly ill-judged. It introduced an unpleasant personal note not heard since the days, oddly enough, of Robert Muldoon, the man whose name he invoked to make an invidious comparison with the present prime minister.

Both editorials have concluded that it was Norman, not Key, who was exhibiting Muldoon type qualities. That’s some political genius to achieve that.

Norman can perhaps be forgiven for not understanding the truly corrosive nature of many of Muldoon’s actions – the nasty personal attacks on political opponents, the shatteringly divisive Springbok tour, the disastrous economic policies, the final unwillingness to relinquish power after political defeat. Norman did not come to New Zealand until five years after Muldoon’s death and 23 years after he fell from power. But the memory of the toxic nature of much of what happened under Muldoon is still strong to those who lived through it, and to many who heard of it later. And they know perfectly well that nothing done by the present Government can remotely be compared.

So why did he do it? Desperation?

It suggests, too, that Norman is not entirely confident that he can make electoral headway on policies alone. The Greens in recent months have made a lot of the running on Opposition policy, particularly economic policy, so much so that a pollster asked a question suggesting that Norman was Bill English’s opposite number on finance rather than Labour’s finance spokesman, David Parker. Much of this (a radical loosening of monetary policy, a government-run electricity market) along with Labour’s own policies (government housing projects), has been seen by many analysts as taking the Opposition on a lurch to the Left.

The latest opinion polls, which showed little reaction to the policies, disappointed the Opposition. The answer to that disappointment should not, however, be a resort to personal attack. That really would be an undesirable step down the slippery track toward Muldoonism.

Imagine what he would be like if he got to be Finance Minister!

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Dom Post on babies in Parliament

May 22nd, 2013 at 11:00 am by David Farrar

The Dom post editorial:

Labour MP Nanaia Mahuta has fired a broadside at Parliament’s rules after she found herself stuck in the debating chamber late at night with her 5-month-old baby.

She was aiming at the wrong target.

Instead of having Parliament’s standing orders in her sights, she should have trained them on her party colleagues.

Labour talks the talk on family-friendly workplaces, but it appears it is not so good at walking the walk when it comes to helping a breastfeeding colleague, even one as senior and respected as Ms Mahuta.

Exactly. They have 9 proxies they can use every day. They have only one MP with an infant. Plus as they are not in Government, they can even vote with reduced numbers without consequence.

If Ms Mahuta felt she should be among those whose presence was not required, then the correct place for her to have directed her complaint was chief whip Chris Hipkins, who organises the roster and should have been alert to the high likelihood of Parliament going into urgency after Thursday’s Budget, and her Labour colleagues.

All it would have taken for her to have the night off would have been for Mr Hipkins to give her priority or for just one of those Labour MPs who was excused to have offered to step in and take her place. Surely, Ms Mahuta would have returned the favour when her circumstances allowed?

To be fair to Hipkins, it has been reported she originally had leave for Friday, but asked to swap it. I’m not sure all the blame is with the Whips. To some degree what we are seeing is a continuation of Labour’s internal warring – it is no coincidence that Mahuta is part of the marginalised Cunliffe faction and she has no love for the party leadership and whips after her demotion.

After Ms Mahuta’s complaint, Speaker David Carter is examining whether even more can be done. In the meantime, Labour, the champion of family-friendly workplaces, can help Ms Mahuta no end by practising what it preaches.

A fair point.

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Dom Post on loan defaulters

May 20th, 2013 at 3:00 pm by David Farrar

The Dom Post editorial:

There is a good argument for getting tougher with those living overseas who won’t repay their loans. Too many have decided to ignore their obligations.

Now the Government will require them not only to repay more quickly, but it also warns that persistent defaulters may be arrested at the airport.

This is punitive, unpleasant, and likely to be unpopular in a democracy that prefers the carrot to the stick. But nobody can complain.

The Government, after all, has taken a gradual approach. It offered amnesties and a chance to come to an arrangement with the IRD. It has also made it technically easier and cheaper to transfer the money home.

Many have responded reasonably: $64 million in outstanding loans has been repaid. However, some have ignored the offer and refused to repay. That can’t continue.

After all, if the people concerned had a low income and found it genuinely hard to repay, they were free to argue the point and try to make a deal with the tax-gatherer. Others could easily repay their loans but simply ignored the Government’s inquiries.

Those who have refused to do anything now face the threat of the bailiffs and, if they persist, of arrest. It’s hard to know what else the Government could do. Those who refuse to respond are breaking the social contract.

The social contract has responsibilities on both sides.

Students, after all, do not pay the full cost of their tertiary education. Even with the loans, they are being subsidised by the taxpayer. In return for that aid, however, they must make a contribution themselves.

This does not threaten the hallowed institution of OE, as Labour claims, or make it less likely that our high-fliers will return to the nest. Those who do their OE can’t just leave their fiscal obligations behind them. And highly -skilled people who stand to earn big salaries during their lifetimes can expect no sympathy if they default on their loans.

Repaying a loan should not be seen as optional.

The editorial however criticizes students aged over 40 having to get loans, instead of allowances.

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Is WCC value for money?

May 4th, 2013 at 11:00 am by David Farrar

The Dom Post editorial:

By any stretch of the imagination, the nearly $66,000 base salary paid to Wellington City councillors is not a pittance, especially when most have top-ups of $14,000 or more. For that sort of money, Wellington ratepayers have a right to expect their elected representatives would at least stay awake around the council table, make firm decisions on matters of vital importance to the city and keep informed about what is going on within the organisation they govern.

What Wellington has got is councillors who are unable to work together on key issues, and who at times appear to be woefully ignorant of vital aspects of the council’s operations. Ratepayers should be asking themselves whether this crop are worth their present salaries, let alone the $76,600, plus top-ups of up to 50 per cent that will kick in after the next election under changes announced by the Remuneration Authority.

There are some good Councillors, but there are also som who have been there far too long, and need to go.

Already this year, Mayor Celia Wade-Brown has revealed she had no idea that up to $350,000 had been budgeted to house her in temporary offices while the council chambers were earthquake-proofed. How did she and other councillors find out? They read about it on the front page of this newspaper.

That was a damning admission.

With this level of competence from a Green Mayor, imagine what fun we may have with six Green Cabinet Ministers?

Then there was the months of dithering over whether to support the proposed flyover for the Basin Reserve, a project some councillors still cannot bring themselves to accept as the best option for fixing the city’s transport problems, despite voting to pay $40,000 for a report that clearly stated just that.

Yes, they rejected the very advice they commissioned!

One of the rationales for paying councillors above-average salaries is to entice talented candidates who can offer something of real substance to local government. It is hoped that proves to be the case when ballot papers for October’s local-body elections are delivered to households later this year.

It is about time Wellington started getting value for money from its elected representatives.

Hear, hear.

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