Jones advocates for grant despite conflict

Hamish Rutherford reports:

After declaring a conflict of interest in a proposed Northland cultural centre, Shane Jones sat through a meeting when ministerial colleagues decided on its multi-million dollar funding application, even giving reassurance about its governance.

If you are conflicted on a grant, you should remove yourself entirely from the process, not use your special position to turn up to the decision making meeting of Ministers and advocate for it.

Manea, Footprints of Kupe was among the first group of projects to be awarded cash from the Provincial Growth Fund, a $1 billion a year fund secured in coalition negotiations between Labour and NZ First, which is coming under increasing criticism.
On February 23, 2018, Tourism Minister Kelvin Davis announced the fund would provide up to $4.6 million, for a “cultural tourism experience” in Opononi.

Almost $5 million for a tourist centre.

An all weather centre to teach the legend of Kupe, proponents claim it will attract visitors to an largely overlooked by tourists and create around 17 full-time jobs.

You really think tourists will go all the way to Opononi just for a centre about Kupe? They must be kidding. It’s four hours from Auckland Airport. Giving Northland decent roads would be much more likely to get people up there.

He has repeatedly said he stepped back from having involvement in the project and denied advocating for it.
But documents quietly posted on the website of the Ministry of Business, Innovation and Employment (MBIE) showed that Jones attended what appears to be the single ministerial meeting to determine the application.
“Minister [of Finance Grant] Robertson raised his concerns about the broader management and commercial operations of the project,” MBIE official Mark Patterson wrote.
“Minister Jones provided reassurance that as the project has Far North Holding Ltd, the commercial arm of the Far North District Council, involved in its governance structures, he was comfortable their presence would alleviate any concerns on the issue.”

So Jones turned up to the ministerial meeting, and advocated for it, despite explicitly claiming he was not advocating for it.

During an interview in April 2017, Jones said “as far as I’m aware” he was not lined up to be a director of any entities related to Manea.
On Friday morning his office said he only learned that day that proponents of Manea had previously expected him to have a governance role.
Stuff has obtained a series of documents which claimed that in 2014, Jones was named as the proposed chairman of Manea Kupe Ltd, as it attempted to win funding from the now defunct Tourism Growth Partnership, a fund set up by the former National Government and administered by MBIE.

The second lie – denying he was to be involved in it, when he was the proposed Chairman.

Seymour said the documents suggested Jones “was decisive” in seeing the funding go ahead to an organisation he had a prior association with.
“He actually provided reassurance to his colleagues, which is at stark odds with  his repeated assurances in Parliamentary questions that he’d recused himself from any role,” Seymour said, claiming Jones had breached the Cabinet manual.
“I don’t see how you can continue to be a minister when something as simple as a conflict of interest, you can’t manage.”
On Sunday morning, Seymour, called for Prime Minister Jacinda Ardern to sack Jones.
“Shane Jones not only involved himself in an application in relation to which he had a conflict of interest, he also concealed this key meeting in answer to a written parliamentary question,” Seymour said.

Of course she’ll do nothing.

Labour u-turn on blocking Brady

Newshub reports:

The Government is now considering allowing China expert Anne-Marie Brady to make a submission on foreign interference after previously blocking her.
The Canterbury University professor wanted to make a submission to the Justice Select Committee regarding its inquiry into foreign interference in the 2017 general election and 2016 local elections.
The select committee is evenly split between National Party MPs and Labour Party MPs. And while the National members supported Ms Brady making a submission, the Labour members voted against it, on the grounds her request was late. 

“As Committee Chair, I am satisfied that the correct procedure has been followed and that the agencies will keep the committee well informed about any issues of foreign interference that may arise,” Labour MP Raymond Huo said on Friday morning.
But the Prime Minister’s Office now says the professor may be invited to speak. It’s understood the select committee chair, Mr Huo, will appeal to his colleagues next week to allow Ms Brady to submit. 

A real own goal by Huo and Labour MPs. They have ensured that now when Brady does testify he testimony will get far far more prominence that otherwise would have been the case.

Not the brightest is he

Newshub reports:

Mark Taylor, known as the ‘Kiwi Jihadi’, feels genuinely surprised he wasn’t able to voice his freedom of speech while living under the Islamic State (IS).

He really does seem to be a moron. A dangerous moron, but still a moron.

If he makes his way to our embassy in Turkey, then we’re obliged to allow him home. The PM has hinted he’ll face charges if he does get home.

I have a good idea which may encourage him to stay away. Rather than just hint at what may happen if he returns home, be explicit about it.

The Solicitor-General should announce that charges under S13(1) of the Terrorism Suppression Act have been laid against Mark Taylor for participating in a group that is a designated terrorist entity.

This carries a maximum sentence of 14 years jail.

The thought of up to 14 years in jail could be a strong deterrent to Taylor to not try and come home.

CGT and home affordability

Graham Adams writes in The Listener:

As the debate over the introduction of a comprehensive capital gains tax rages in the media, it has mostly been reduced to arguing about its effect on the housing market and who would be stung by it and who wouldn’t. But one thing most commentators agree on is that it wouldn’t dent house prices significantly.
The Michael Cullen-chaired Tax Working Group said it would put only a small “downward pressure” on house prices and even Finance Minister Grant Robertson admits it would have a minor impact on affordability. 
In fact, the government’s general exclusion of the family home from any CGT regime could have the opposite effect in some suburbs if homeowners poured money into extending their houses, to bolster an investment beyond the taxman’s reach. In Australia, where family homes are generally exempt, this phenomenon is dubbed the “mansion effect”.
Interviewed on The Nation over the weekend, Jacinda Ardern seemed unaware of these inconvenient truths. Asked about a capital gains tax, she said: “There is a large group of New Zealanders — particularly young New Zealanders now — who, if their aspiration has been homeownership, [it] has just become harder and harder.”

It is extraordinary that the Prime Minister — whose “captain’s call” for a capital gains tax backfired on her so spectacularly in the 2017 election campaign — still doesn’t appear to understand the negligible effect it would have on housing affordability and is continuing to use it as a selling point.

At best there is a very small downward pressure on house prices, if any. And an upward pressure on rental prices.

Cullen as Chair was a huge mistake

Hamish Rutherford writes:

His role as working group chairman continues, delivering presentations to interest groups and now, attacking claims made by the Government’s opponents.
On Monday evening, at 8.11pm, Cullen, who served nine terms as a Labour MP, issued a statement knocking back a claim by the National Party four days earlier. …

But the fact is, Cullen is only commenting on the statements made by National. Although he was happy to name examples of stories on the impact of CGT as “silly”, Cullen’s only official response to any commentary on the report has been to attack a claim made by the Opposition leader, with a response which is also questionable.

Cullen is acting as a de facto Labour MP, not as a Working Group Chair.

While he is a man of ability, it was a huge mistake for Labour to appoint him as TWG Chair. Many NZers still despise him as the smarmy Finance Minister who hated rich pricks.

The TWG is seen as all about Cullen, rather than an expert group of tax professionals.

I guess Labour appointed him Chair to make sure they got the right outcome, but they would have been better to appoint someone who is not a former partisan, or in this case a current partisan.

I thought Labour was against appointed Crs on ECan?

Stuff reports:

A bill which would guarantee Ngāi Tahu two seats on future Environment Canterbury (ECan) councils is struggling to gain support in Parliament.
Labour says it is doing the numbers this week to see if it can get the apparently faltering Canterbury Regional Council (Ngāi Tahu Representation) Bill across the line for its first reading in the House.
However, the local bill will not get NZ First backing. 

This is interesting.

Labour have spent six years saying it is an outrage that some of the Ecan Councillors are appointed. They vowed to immediately go back to a 100% elected model.

But then the moment they’re in, they say they do want some appointed Crs to remains – but only from Ngai Tahu.

Can we trust Winston on CGT?

Stuff reports:

NZ First leader Winston Peters has said the party would not support tax changes that resulted in an “explosion of the valuation and accounting professions”.

If we took Winston at his word, then the entire report of the Tax Working Group should be ruled out.

But it is very dangerous to take what Winston says at face value. He might negotiate a couple of minor changes and declare them to be hugely significant.

Peters was not explicit about what NZ First might support but said “tax policy needs to be simple and we will keep it that way”.
“The scaremongering about houses, boats, art works and exemptions for Maori, and the myriad other fake trails thrown up by our desperate opponents doesn’t divert New Zealand First from two key points about the report.
“First, we want to hear from New Zealanders their views on tax reform. Second, having listened to the public, we will work with our coalition partner to fashion simple tax policies that will work,” he said.

You have to note that Winston has given no firm commitment on anything.

Another reason to not do boundaries with this census data

Stuff reports:

Māori risk losing an electorate seat and more than 20 new iwi won’t be properly counted due to problematic Census 2018 data.
Results from the beleaguered national survey, which failed to count one in 10 New Zealanders, have been repeatedly delayed, with a release date not known one year on from census day. 
The population data is vital for Māori, and academics hold fears vulnerable communities and small iwi will be adversely affected. 
Dr Tahu Kukutai and Donna Cormack, in a paper published on Thursday, said Māori census response rate would be well below 90 per cent, possibly as low as 80 or 70 per cent in the likes of Northland and the East Coast.

This is true that a 90% average response rate will probably see a rate as low as 70% in some areas. It reinforces why the 2018 census can not be used to redraw electoral boundaries.

Canadian Liberals now 9% behind

A poll has now come out taken after the revelations from the former Attorney-General. They show:

  • Liberals 31% (-3%)
  • Conservatives 40% (+4%)
  • NDP 20% (+3%)
  • Bloc 4% (-2%)
  • Greens 4% (-2%)

The poll also found 51% believe Justin Trudeau should resign as Prime Minister.

Now Kiwibuild buying up homes already on the open market

Stuff reports:

KiwiBuild homes for sale in Huapai, West Auckland, had previously been listed – and did not sell – on the open market.
Construction firm Mike Greer has partnered with KiwiBuild to provide more than 100 homes for the scheme in West Auckland and Christchurch.
But the Huapai development, where six two-bedroom properties are currently listed for sale through KiwiBuild for $600,000 each, is a 12-unit development that was initially offered pre-construction entirely to private buyers.

So what does this mean?

Gareth Kiernan, chief forecaster at Infometrics, said whether bringing properties that had not otherwise sold into the KiwiSaver scheme rendered it redundant depended on its aims.
“If the aim is to increase the supply of housing because we’re not building fast enough and that’s contributing to the affordability programme, then Phil Twyford’s modus operandi to date of walking down the street, finding a house that’s already being built, and slapping a KiwiBuild sticker on is patently stupid and nothing more than window dressing,” he said.

So patently stupid and window dressing.

“However, if the aim of the programme is to effectively provide a taxpayer subsidy to help a select and lucky few people into their first home, then selling at a discounted rate to first-home buyers fits the objective.

So at best Kiwibuild helps a few well off people get a home a bit cheaper.

Previous TWG Chair not paid to advocate

Stuff reports:

Finance Minister Grant Robertson is defending the ongoing role of Sir Michael Cullen over tax reform, saying it was only fair he continued to be paid.

Why? His job is done. Why should he get paid to attack National MPs?

Robertson said that when National initiated a tax review back in 2010, the working group’s chair, Victoria University of Wellington professor Bob Buckle, commented extensively after the report.
Robertson said he had “no idea” whether Buckle was paid.
Contacted in response to the comments by Robertson, Buckle said he took part in the 2010 review on a voluntary basis, and he believed other members of the working group did too.
This included both the development of the report, and comments made afterwards.

Buckle wasn’t paid, and he certainly didn’t act in a partisan fashion.

If the Government was concerned about the debate, Adams said, it should have also retained the members of the working group who offered a dissenting view.
Act leader David Seymour said the extension of Cullen’s contract was “a vote of no confidence” in the ability of Robertson to articulate and defend the Government’s plan for the tax system.
“The Tax Working Group has delivered its report. For taxpayers to continue to pick up Cullen’s $1062-a-day fee after being appointed more than 14 months ago is outrageous.”

It is outraegous.

Why did Labour block Anne-Marie Brady’s testimony?

The Herald reports:

Labour MPs on the justice select committee have voted against allowing China politics expert Anne-Marie Brady to make a submission on foreign interference in elections.
National MPs supported Brady, a professor at Canterbury University, giving her view on the issue which is a focus of the committee’s inquiry into the 2017 general election and 2016 local elections.
The eight-strong committee is evenly split between National and Labour MPs and today’s vote against means Brady cannot appear.
National MP Nick Smith, who is a member of the committee, said it was concerning that Labour blocked Brady from making a submission on the critical issue of protecting New Zealand from foreign interference in its democracy.

Even if one doesn’t agree with everything Brady says, she absolutely should be heard by a select committee inquiring into an area she has extensively published on.

Justice committee chairman Labour MP Raymond Huo said the decision to decline Brady’s late request was purely procedural.

There is no way it is purely procedural. Labour MPs would have been instructed by the Government to vote against. Presumably Labour is worried that allowing Brady to testify would upset the Chinese Government.

Winston agrees with me

Last week I blogged:

Enabling Maori to change roll types at any time allows gerrymandering of seats. I am surprised the Greens want to introduced gerrymandering to NZ. It would allow people to transfer backwards and forwards between the general and Maori roll, based on which seat they think is most marginal. It would mean seats would be less likely to have the same electoral population.

Newshub reports:

Ms Ghahraman also addressed remarks made by Mr Peters about her Bill’s proposal to allow voters of Māori descent to change roll type at any time.
Mr Peters took a swipe at the first-time MP, saying: “You’ve got to have some experience and think these things through.”

“The ability to change seats from Māori to general whenever you feel like it, that could turn into the biggest gerrymander you’ve ever seen in New Zealand politics,” Mr Peters said.

Nice to see Winston use my talking points.

WCC funding quackery to find water

Stuff reports:

Divining rods are being used to find important infrastructure in Wellington on the ratepayer-funded clock.
Downer Group said the practice was one tool used to find underground water supplies while on contract to Wellington City Council and the firm had defended dowsing as being “used quite widely”. 
“Farmers and the waste industry also use this practice to locate underground water sources,” Gary Sue, Regional Manager of Wellington Transport Services at Downer wrote in an email to NZ Skeptics Chair Craig Shearer.
“It’s not fool-proof but I am told it does work.”

My God. I am glad I don;t have shares in Downer. A senior manager believes in divining rods. Do they also believe in voodoo dolls?

A Downer employee was spotted using dowsing to find a pipe on the streets of central Wellington in January, Shearer said. The spot was then marked with spray paint.
“It just makes the company look silly and promotes the belief in magic things.
“It’s kind of like how the hell would this work? I guess the dowsers feel that they are somehow in tune with the earth. It’s just magical thinking.”
Jordan Williams of the New Zealand Taxpayers’ Union said the practice was “absurd”. 
“Having contractors dig up pavement on the basis of vibrating sticks risks significant waste of ratepayer resources.”
However Wellington City Council spokeswoman Vic Barton-Chapple said “there is no additional cost to the customer” for the service.

Of course there is an extra cost. If Downer staff were not wasting time on quackery, then they’d be more efficient at finding waterways through actual science.

“Downer has told us they do not have a specific policy on the use of dowsing.
“They do not actively promote this practice however, from time to time, their teams may use this practice if it is safe, there is no additional cost to the customer and when used in conjunction with technology and service plans.”

This is like a company saying they don’t have a specific policy on the use of telekinesis.

Jihadi wants to sell cannabis when back in NZ

The Herald reports:

The Kiwi jihadi being held in a Syrian prison has told a reporter that if he returns to New Zealand, he is interested in setting up a medicinal cannabis company. …

“He said he was interested in starting a business and he had heard there was going to be a referendum on cannabis and he was interested in starting a medicinal cannabis company of some kind,” MacDiarmid told RNZ.

If the legalisation of medicinal cannabis didn’t occur through the referendum, MacDiarmid said Taylor was thinking of running a café.

Maybe he could do both – sell cannabis from his cafe!

VUW threatens legal action vs Hipkins

Victoria University of Wellington released:

The University has received independent legal advice on the Minister of Education’s decision to decline the University Council’s recommendation to change the name of the University to University of Wellington. The advice was provided by two senior public law practitioners who are external to the University and independent of one another.
The University considers that there is a very high likelihood the Minister’s decision has not been lawfully made.
The Minister has given himself a position closely supervising the decisions of the University Council, a role which has no basis in the statutory scheme. This approach undermines the institutional autonomy that Parliament intended for universities. The Minister has then applied his own, previously published criteria, rather than those in the Education Act. He has required an enhanced form of “consultation” from the Council, which has no basis in statute and is far beyond what the law requires. In addition, the Minister has misunderstood the “national interest” and made a decision on this ground that is not supported by the law and is contrary to his officials’ advice.

The Council will be raving bonkers if they seriously try to judicially review the decision by Chris Hipkins. Their decision is opposed by a majority of all their stakeholders – students, staff and graduates. The City Council is opposed. The local MPs all think it is nuts. The Minister had clear advice from the Ministry that he could decline due to lack of proper consultation.

Even if a court found some technical flaw, at best the Minister just has to reconsider, and I’m sure the decision will be the same.

The other option open to the Minister is to start sacking or not reappointing Council members if they vote to proceed with a judicial review.

Cullen being paid $1000 a day to attack National

Stuff reports:

This week it emerged that while the Tax Working Group has disbanded, Cullen has had his contract extended by the Government.
Cabinet papers show Cullen was to be paid $1062 a day in his role as chairman of the TWG.
“We extended his appointment as the chair of the TWG to 30 June because we were aware there would be extended public discussion on the report, and this has played out,” Finance Minister Grant Robertson said in a statement.

This is outrageous. The TWG has completed its work. A final report went to Government in February. It has been disbanded.

To have taxpayers continue to fund Dr Cullen in a role which no longer exists is bad faith, especially that he is spending all his time attacking statements from National MPs.

University won’t reveal how much it gives a news site

A Cheryl Carr did an OIA to the University of Auckland asking:

  • The commencement date of the sponsorship and the proposed duration of the sponsorship of Newsroom
  • The total financial sponsorship received by Newsroom
  • The contractual arrangements with respect to any benefits the University of Auckland would receive in consideration of the agreed sponsorship.

The response was to only confirm the dates and refuse all other information as being subject to an obligation of confidence.

That is an outrageous response from a taxpayer funded organisation and I have the decision is appealed to the Ombudsman.

The University is not a commercial business. There is public interest in knowing why they are giving a news site money, and what they get in return for it.

Mclauchlan on the MMP threshold

Danyl Mclauchlan writes:

The Green Party has put forward a members bill which, among other things, advocates lowering the MMP threshold from 5% to 4%. Let us set aside the terrible, terrible optics of a political party that is part of the government, and hovering just above the 5% threshold in the recent round of polls – and which routinely under-performs the polls on election day – attempting to alter the electoral system to its own advantage and consider the 5% threshold itself.

The self-interest is indeed massive.

In terms of performance, here is the difference between their result and the last ONCB poll:

  • 1999: -0.8%
  • 2002: -1.0%
  • 2005: +0.3%
  • 2008: -2.3%
  • 2011: +1.1%
  • 2014: -1.3%
  • 2017: -1.7%

So if the Greens are at 6% in the polls, it is quite possible they’ll end up under the 5% threshold in an actual election.

Our version of MMP was copied from the German system and the threshold was there to prevent the rise of extremist political parties, something that nation was apprehensive about for obvious reasons. That didn’t seem like a realistic fear for New Zealand so copying such a high threshold seemed unjustifiable. But now that we’re seeing a global rise of extremist parties, a fascist government in Brazil, etc, it no longer seems like such an abstract fear.
But my main problem with lowering the threshold is that it will also probably save New Zealand First, and it will make the New Zealand First model of politics so much more viable.
This is a model in which you fundraise from exploitative, extractive industries (fishing, forestry), campaign on populist issues (Peters’ flagship policies in 2017 were lower immigration, a referendum to ditch the Māori seats and to remove GST on fruit and vegetables), ditch all of your policies and issues as soon as the election is over, and use your position in the political centre to maximise your personal power.
It means Peters gets to operate as a de facto co-prime minister, he gets to veto any attempts to regulate his corporate donors, he gets to unilaterally change our long-standing foreign policy towards China without bothering to tell the actual prime minister, let alone the Cabinet, his deputy gets given three billion dollars to just give away to whoever he wants, and none of this has any mandate from the public whatsoever.

An excellent description of NZ First.

The 5% threshold hasn’t saved us from Peters but this is because he’s one of the most brilliant politicians the country has ever seen. His model is a very successful hack of the MMP system, but you have to be Peters to pull it off – otherwise everyone would do it: after all, you get near total political power with virtually no votes.
But Peters was kicked out of parliament after his last shambolic tenure in government and, based on the current polls, he’ll be wiped out at the next election, so it is (hopefully) not a sustainable model, even for him. The 5% threshold is what protects us from countless imitators reproducing the hack and wrecking our government. That is what the fence is protecting us from. We’d be fools to lower it.

A fair argument.

Bye bye medieval laws

The Herald reports:

The Government has repealed a law that Justice Minister Andrew Little has described as “medieval, archaic and unjust”.
Parliament last night unanimously passed the Crimes Amendment Bill, which repealed the “year and a day” rule as well as axed laws prohibiting blasphemy and imposed harsher sentences for would-be livestock thieves.

Good on the Government for doing this. While not the highest of priorities, it is a good thing to get rid of archaic laws, especially ones that had a potential chilling effect on freedom of speech.