Guest Post: Why electricity prices have increased

A guest post by Bryan Leland:

Why electricity prices have increased

The Electricity Price Review has revealed that residential electricity prices have increased by about 80% above inflation since 1990. Why did this happen? We were promised that privatisation and the electricity market would reduce power prices.

An objective examination of the whole electricity industry and the effect of the reforms leads to some interesting conclusions.

Cross subsidies

Before the reforms many power boards cross subsidised residential consumers by overcharging commercial and industrial consumers. The removal of these subsidies is a factor in the increased residential prices.

The market

The Wholesale Market Electricity Development Group made a mistake when they rejected the recommended market model and chose a market that pays all generators the price bid by the most expensive generator selected to run. This would have been a good choice if New Zealand relied entirely on fossil fuel generation. New fossil fuel power stations produce cheaper power than older ones so such a market encourages the construction of new and better stations.

In New Zealand, the cheapest generation comes from old, low cost, depreciated hydro stations. The choice of a fossil fuel market structure pays these stations the much higher price needed by the most expensive fossil fuel station. Hydro stations then rack up their asset values to camouflage the fact that they are making windfall profits

The recommended market model would have ensured that consumers would have continued to get low-cost electricity from the hydro stations that they had already paid for and built new stations that would give the lowest system costs in the long run.

The chosen market structure has led to wholesale prices increasing when they should have decreased to reflect the major reductions in operation and maintenance cost that followed on from privatisation.

Control of peak demand

Before the electricity reforms all electric water heaters in New Zealand were remotely controlled by the lines companies to reduce system peak demand by more than 10%. The reforms destroyed this world leading system. Most lines companies abandoned water heater control because the reforms did not allow them to fully recover of the costs of operating, maintaining and expanding the hot water control system.

As a result of abandoning hot water control, new power stations and a $960 million 400 kV line into Auckland were needed and millions more were spent on reinforcing transmission lines and distribution systems. All this to meet a peak demand that would not have existed with the recommended market.

Assets revalued

The reforms also allowed Transpower and lines companies to massively revalue their assets and use this increased value to justify charging consumers millions of dollars more for assets that consumers had largely paid for already. This is a major factor in the increased cost of electricity.

Traders and retailers

The electricity market also brought us traders and retailers who, it can be argued, serve no useful purpose whatsoever. The recommended market model did not need them.

In our market, traders often compete to get selected to generate. But when generation is in short supply competition is virtually non-existent and the price that they bid is “a trade-off between greed and guilt”. (On several occasions in the last few weeks wholesale prices have spiked to more than 10 times the normal price for no apparent reason.) As two retiring CEOs pointed out, the way to make money in the New Zealand market is to keep the system on the edge of a shortage. With the recommended market the system operator would have ensured that sufficient generating capacity was available and selected the generators that would give a reliable supply at the lowest cost.

Retailers increase consumer costs by spending millions of dollars trying to steal consumers from each other and pretending to compete in selling a commodity that is identical for everyone.

Conclusion

So what of the future? It does not look good. Transpower has warned that the risk of serious shortages and high prices in a dry year is rapidly increasing and no one has plans for new power stations that would mitigate this risk.

The government ignores dry year risk because it is hellbent on shutting Huntly down and limiting gas supplies and believes that exploiting wind and solar power will solve all the problems. Never mind that they are much more expensive, require backup when the wind doesn’t blow or the sun doesn’t shine and don’t make any useful contribution to meeting peak demand.

The best and cheapest way of mitigating the risk of blackouts in dry years is to ensure that Huntly continues to provide dry year reserve with two or three generating sets and 1 million tons of coal available.

The government should be taking steps to make sure that we have an economical and reliable supply into the future. If it wants to reduce CO2 – a gas that promotes plant growth and benefits our agricultural industries – it should contemplate the construction of a major and very expensive hydro pumped storage power station in the hills above Roxburgh that would solve the dry year problem. Only then can it ditch Huntly.

The New Zealand electricity market is a classic example of what happens when the politicians and the decision-makers do not understand power systems and how difficult it is to provide a reliable and economic supply. Choosing the wrong market model has cost the customer dearly.

Bryan Leyland is an engineer with 60 years experience in the power industry worldwide. He and his wife are majority owners of a small hydropower scheme that profits from the shortcomings of the market.

Constructive Opposition

The Herald reports:

Two Opposition MPs are proposing long-awaited changes to the law governing the $50 billion apartment sector, drafting an overhaul which they hope the Government will support.

Nikki Kaye, Auckland Central MP, and Judith Collins, National’s housing and urban development spokeswoman, have produced draft legislation to amend the Unit Titles Act which governs the management and running of thousands of apartments.

They aim to strike a balance between the benefits of more compliance requirements and any potential costs.

A statement said the MPs saw the opportunity to strengthen the existing regime in areas such as pre-contract disclosure, record keeping of body corporates, better management of conflicts of interests and proxy votes. 

“The driver for this change has been concerns around a lack of transparency and inadequate long-term maintenance plans, and a clearer understanding of the role of a body corporate manager,” Collins said.

The apartment sector is thought to be worth at least $50b. Under-investment in long-term maintenance plans could result in large unexpected bills for homeowners if defects occur, or sharp rises in body corporate fees, the MPs said.

“Places like Auckland have seen a huge increase in unit titles. The number of multi-unit housing developments in Auckland increased from just over 15 per cent of new houses in 2010 to over 40 per cent in 2017,” the statement said.

Phil Twyford, now Housing Minister, supported the push for change in Kaye’s ‘apartment blues’ report when he was in Opposition.

This is a good example that Opposition is more than just opposing.

Nikki and Judith have written draft legislation in an area that needs reform. It isn’t partisan. The Government could well support it.

Another example of this is around adoption laws. TVNZ reports:

Changes to adoption laws will take time, the Prime Minister said today, but she maintained the Government knows “it’s a problem”, after broadcaster Toni Street criticised the current legislation. …

Ms Ardern replied to Street’s Instagram post writing: “The adoption act is well over 50-years-old and definitely needs fixing. It’s on our work programme!”

During the last Government there was a bipartisan group of MPs working on adoption law reform. Kevin Hague from the Greens and Nikki Kaye spent scores of hours meetings experts and academics and eventually drafted a comprehensive reform bill Hague submitted in 2012.

Another MP, Jacinda Ardern, put up a rival bill which was arguably the worst members’ bill in recent years. It was voted down. The Ardern bill didn’t do any actual law reform. It merely asked the Law Commission to write a bill for her. It was virtue signalling rather than legislating.

So you don’t have to be in Government to be a constructive legislator. But you do have to be willing to do the hard work. Writing a bill in a complex area involves scores and scores of meetings, revisions, analysis etc.

English student union bans clapping

I wish this was satire but no its snowflakes at work. Stuff reports:

Clapping has been replaced with “jazz hands” at an English university student union amid fears the noise of applause could trigger anxiety among some students.

Whooping is also discouraged at Manchester University student union events on the basis that the loud noise may be a problem for those with sensory issues.

The use of “jazz hands” – where students wave their hands in the air – is the British Sign Language (BSL) expression for applause and is deemed a more inclusive gesture.

Oh poor little students. Clapping could give them anxiety. God knows how they would quote with a job.

Why stop at banning clapping and whooping. They should ban all verbal speech and require all communications between students to be in writing.

“Jazz hands” were adopted by the National Union of Students (NUS)in 2015 on the basis that clapping “triggers anxiety”. Delegates at last year’s NUS conference said that students who whoop, cheer and clap should face “consequences”.

They’re such precious morons.

Garner slams “completely incompetent” Davidson

Newshub reports:

The AM Show host Duncan Garner has called on Marama Davidson to “get out of office”.

The Green Party co-leader appeared on the show on Monday morning to discuss her party’s commitment to raising benefits by 20 percent, but was unable to say how much it would cost.

Ms Davidson said if New Zealand can spend $100 million of taxpayer money on the America’s Cup, then it can pay its poorest a bit more.

She didn’t even do five minutes of homework, before going on TV.

If she had gone to Vote Social Development, she would have seen the cost of working age benefits is $4.35 billion so a 20% increase would cost $870 million a year.

If they include NZ Super in their policy, then it would cost almost $4 billion a year.

You would think a co-leader would know the cost of a policy they promote when it is in the hundreds of millions or billions.

“I am staggered by the lack of facts and detailed knowledge that she showed in her interview with me this morning,” Garner said after the interview.

“No detail at all. She’s exposed herself as being underdone at best, and completely incompetent at worst. It’s called flaky. I wonder how much longer [co-leader] James Shaw can actually put up with this.

“She knew how much it cost for the America’s Cup, but not about the welfare system which she wants to change. Honestly, get out of office. That’s what I say.”

There is a reason she wasn’t made a Minister despite being ranked higher by the Greens than Genter and Sage and Logie.

Jonathan Young on Greenpeace

New Plymouth MP Jonathan Young writes:

In a beautiful sense of irony, Greenpeace is doing a victory lap around New Zealand with its flagship vessel Rainbow Warrior III, celebrating the ban on new offshore exploration. However, below the deck, the Rainbow Warrior can carry up to 90 tonnes of diesel to fuel the 1,850 horsepower Volvo Penta engine. It uses this for backup when the wind isn’t strong enough to fill its sails.

The irony is that if Greenpeace took their blinkers off, they’d see that firing up the high-emission Volvo Penta when the wind drops off, is no different to firing up a lower-emission gas peaker power station when the wind isn’t strong enough (or too strong) to turn a wind turbine.

New Zealanders have a healthy sense of cynicism, and here’s a good opportunity to show it.

Russell Norman, Chief Executive of Greenpeace NZ, is also mounting a new level of alarmism through the tour saying the hydrocarbon industry are enemies, likening them to the bombers of the first Rainbow Warrior.

So, ease up a bit Russell. The sector here in Taranaki are made up of hard-working, law-abiding citizens who contribute very positively to Taranaki’s and New Zealand’s economic success. They are our families, friends and neighbours. I’m all for new forms of energy – after all I’m a Treky from way back! Innovative ideas are delivering some exciting options for us … albeit little way to go before most are affordable. The great thing about Taranaki, we’ve got plenty of wind, so we might see you sailing past one day

Very good points.

The “drunken sailor” Government

John Armstrong writes:

Stop the rot. And stop it quickly. That has to be Jacinda Ardern’s absolute priority on her return from overseas.

The incumbent three-party governing arrangement was displaying all the coherence and co-ordination of the proverbial drunken sailor long before the Prime Minister left for the relative sanctuary of a Winston Peters-free New York.

The unwieldy contraption has since appeared to be even more sloshed in her absence as its components stumble from one mini-crisis to the next minor scandal with such regularity that you can almost set your watch by it.

As least they have one thing on track – scandals!

CEOs rate the Ministers

The Herald’s annual mood of the boardroom rates the Ministers out of 5. Here’s the scores:

  1. Grant Robertson 3.62
  2. Jacinda Ardern 3.30
  3. Winston Peters 3.20
  4. David Parker 3.06
  5. Andrew Little 2.88
  6. Stuart Nash 2.82
  7. Phil Twyford 2.77
  8. Damien O’Connor 2.71
  9. Shane Jones 2.55
  10. David Clark 2.47
  11. Megan Woods 2.43
  12. Iain Lees-Galloway 2.42
  13. Carmel Sepuloni 2.40
  14. Jenny Salesa 2.39
  15. Ron Mark 2.35
  16. Nanaia Mahuta 2.28
  17. Chris Hipkins 2.26
  18. Tracey Martin 2.22
  19. Kelvin Davis 1.84

A bit rough on Chippie having a lower rating than Nanaia Mahuta!

Kelvin Davis’ rating is no surprise but a reminder he is Labour’s Deputy Leader. He has the equivalent role to Don McKinnon, Wyatt Creech, Michael Cullen and Bill English in previous Governments. Those deputy leaders were all seen as one of the strongest Ministers. Labour’s Deputy Leader is seen as a train wreck.

An interview

Labour appoints a Corbynite as NZ’s Chief Human Rights Commissioner

Stuff reports:

Professor Paul Hunt has been named new Chief Human Rights Commissioner following a sexual harassment scandal at the organisation.

Professor Hunt has an impeccable background in human rights as detailed by his wife in his Wikipedia article.

 

But he is very political also. Just two months ago he was standing for the National Policy Forum of UK Labour as a pro-Corbyn socialist. It appears he was too left wing even for UK Labour, and wasn’t elected.

He argues for “social rights” to be on an equal footing as “human rights”. So the right to social welfare without sanctions to be on the same footing as free speech and freedom from torture.

We should expect a Human Rights Commission that will be even more activist, and campaigning for “social rights”.

NZIER business confidence survey hits GFC low

Interest reports:

The Government’s been given yet another loud wake-up call from the business community, with the influential NZIER Quarterly Survey of Business Opinion showing another drop in business confidence.

The survey released on Tuesday revealed that a net 28% of businesses expect economic conditions to worsen. This is the lowest level since March 2009. The New Zealand dollar dropped after the survey results came out, from US66.15c to US65.95c.

The most watched measure in the survey is that for firms’ own domestic trading activity. This is bad too. The NZIER said firms’ own activity for the September quarter and expectations for the next quarter both fell, indicating a slowing in economic growth over the second half of 2018.

Meanwhile the Governments keeps saying there is no problem.

Meet the union leader paid almost $1 million a year

A former member of the NZ Resident Doctors’ Association alerted me to the very interesting financial statements of the NZRDA. Their 2017 statements show income of $1.18 million in membership fees, around $350 per member.

The vast majority of the income goes on “Contract Negotiation Services Fees”. Last year this came to $927,000.

That $927,000 gets paid to a company called Contract Negotiation Services Ltd. The majority shareholder (99.5%) is Deborah Powell, the NZRDA National Secretary.

So the National Secretary of the NZRDA gets paid almost $1 million a year for her services. Great work if you can get it.

Unions often rail against business chief executives being paid huge salaries. And government chief executives also get criticised for some of their salaries.

Now if the members of NZRDA think Deborah Powell is worth $927,000 a year then good on her for convincing them to pay it. It’s their money. But it is weird that the highest paid person in the public health system isn’t a DHB Chief Executive, or a consultant or specialist or the Director-General of Health. It is the National Secretary of the junior doctors’ association.

This might explain why some junior doctors have formed a breakaway union. Presumably their union doesn’t pay $927,000 a year to their union secretary.

Ross on leave

The Herald reports:

National’s Botany MP Jami-Lee Ross will take a few months off from Parliament to deal with some “personal health issues”.

“There are times in life where you have to put your own health and family first. As a husband and a father I need to do that at this time,” he said in a statement today.

“That is why I have asked to have some time off on medical leave for a few months.”

In a separate statement, National leader Simon Bridges said the decision was “unrelated to the ongoing leak investigation” into his travel expenses.

Bridges told reporters that Ross’s health issue was a “very private and personal” matter.

The Botany MP had first raised the “serious” matter with Bridges last week.

“I am, and he is, focused on his wellbeing… on getting better and his young family,” the National leader said.

I hope Jami-Lee can resolve the health issue and return before too long.

Education Minister, and Leader of the House, Chris Hipkins said it was important for MPs to take time off every once in a while.

Hipkins himself was on Parliamentary leave, following the birth of his second child.

“Sometimes people do a better job as MPs if they take a bit of time out. If he needs to take a bit of time out in order to regroup and do a good job as an MP, he should do so.”

Well said from Hipkins.

Guest Post: “Our Plan”? Her Spin

A guest post by Helensville MP Chris Penk:

What to do when your government’s spinning out of control?  Spin, of course.

I take a close look at the peculiarly Ardernesque response to recent events that was her speech on Sunday, entitled “Our Plan”.

  • Uniquely unique:

Ardern tries making a silk purse from a sow’s ear from the very outset, describing her administration as “the most pure form of MMP government New Zealand has ever had”.  The most interesting part of this statement is the phrase “most pure”.  This is because it’s followed immediately by the PM stating that “we have never had a government quite like ours”.  But is that a claim to fame or an admission of guilt?

The uniqueness of the current government is something that everyone can agree on – for better or worse – given the predominance of NZ First in relation to Labour and certainly the Greens.  But note the way that Ardern touts that uniqueness as a virtue rather than a vice.

She’s relying on the general rule that you highlight something as “unique” when it is uniquely good, rather than the opposite.  Consider how we use words such as “exceptional”, “incomparable”, “singular” and “trailblazing”.  The strict meanings of these words are neutral but they’re positive in tone by default.

If something represents an exception then, logically speaking, it can be either exceptionally good or exceptionally bad … and yet to say that something is “exceptional”, without further qualification, is to indicate that it’s more than good. (Counter-examples, such as “peculiar” are relatively rare.)

So while it’s theoretically risky for Ardern to highlight the unprecedented nature of the current government – where “most pure” really means “least stable” in practice – she’s piggybacking on traditional ways of employing exceptionalism.

  • Absurd analogy:

Perhaps the most embarrassing bit of the PM’s speech was one particular analogy, used to describe what is apparently a traditional way for governments to operate: “It’s a bit like a road trip that tells you who’s in the car, where you’ll be stopping, but doesn’t tell you where you’re going”.

Because it’s impossible to argue that a driver should usually have some idea of her destination, audience agreement is automatic to this point.  While the comparison is a weak one, Ardern is trying to take us along for a ride of logical inevitability.

How often does it happen that you’re driving down the road and have absolutely no idea where you might end up, though?  Who cruises down State Highway 1 and thinks they have an equal chance of taking a turnoff to Te Awamutu or Timbuctoo?

But whereas typing a place name in the GPS works every time for a road trip, executing government policy in a mature democracy is so much more complex that the comparison is facile.  If the Prime Minister doesn’t realise that, either she’s a bit simple or thinks the rest of us are.  Take your pick.

  • Cheap conjuring:

My personal favourite is the cheap conjuring trick where our attention is deliberately diverted.  Here’s the set-up:  “Other MMP governments have had coalition agreements and confidence and supply agreements that set out specific policies they will progress. But rarely does that capture the big picture.”

Ardern’s speechwriter is hoping we’ll overlook the fact that the 2017 coalition agreement (like all such documents) actually did contain some “big picture” content, as well as some specifics.  But the real point is that her government has already been devoting considerable time and energy to the kind of “big picture” discussion being wheeled out yet again on Sunday.  That was true from the very start, with the government’s Speech from the Throne (again, like all such set pieces) having been dominated by the “big picture”.

The purpose is to conceal the PM’s sleight of hand in two respects.

First, it creates an impression that until this point the government has been delivering on detail.  That must surely be the case, if higher level discussion is now needed by contrast, right?  Ironically, it’s actually been devilish detail that’s been tripping up the government lately.

Second, justifying the need for a blue sky blueprint is designed to distract from coalition blues.  Given the government’s recent difficulty in this regard (or “the Deputy Prime Minister”, to use his official title) the real point of the exercise is obvious.

  • Trite truisms:

Then we see some classic spin is employed in this speech in the form of multiple truisms.  The trick is get heads nodding along to statements that are so utterly uncontroversial that logical points are easily scored.

You can take your pick from multiple examples but I particularly liked the “set of challenges on the horizon that we can’t ignore”, as if anyone would argue that challenges should be ignored.  Another good one was Ardern invoking the “whole new world we’re moving into”, as if the world has ever stood still.  In case you missed your cue to nod along, she actually added in the very same sentence: “everyone knows that”.  Yes, Prime Minister.

  • Murky mandate:

Finally, check out the very subtle mandate creep:

“When you elected us, you didn’t just tell us to govern, you asked us to fix existing problems, anticipate emerging ones, and to make sure we weren’t caught off guard because we had done neither.”

Leaving aside the fact that those supposed extras are actually part of the standard definition of what it means “to govern”, this statement is reasonable enough if somewhat trite.

Then it gets interesting:  “But there are things that were also a bit unspoken. An undercurrent if you will.”

Immediately we’ve gone from what the electors decided to “tell” the governing parties to things that were apparently – by Ardern’s own admission here – never told at all.  An “unspoken” mandate is a very convenient thing.

The blank cheque is fully justified in the final analysis by this gem: “Perhaps I picked it up from the next generation of voters, or perhaps it was just the vibe of the thing. But we also decided that we would do things differently.”

See how the PM’s pivoted from electoral mandate to unilateral licence in just a few sentences?  They’ve heard the voters (apparently) but “also decided” to do things differently, separately to that, as well.  For linguistic purists, Ardern using “But” to start two sentences in quick succession is a dead giveaway of something tricky going on … in much the same way as you can only say “on the other hand” so many times before sounding evasive or indecisive.

Final thoughts

Incidentally, those points I’ve made only cover Ardern’s preamble, rather than the 12 (relatively) substantive points in the speech.  We could go on like this all day, with so much going on spin-wise.  I’ve got better things to do (mind you, so should the PM and her government) so will leave it there.  In any case, that kind of analysis really just confirms what anyone listening to the speech would have heard clearly enough for themselves: the predominance of spin over substance, as usual.

Chris sent this to me a couple of weeks ago, but I’ve been swamped with (paid) work so only just got around to blogging it.

Will the Government change the law to help Greens and NZ First?

The Herald reports:

Changes to the MMP electoral system could be back on the table including the controversial coat-tailing provision, Deputy Prime Minister Winston Peters has indicated.

The coat-tailing provision allows a party to dispense with the 5 per cent threshold if one of its candidates wins an electorate seat.

New Zealand First, The Progressives, United Future, Act and the Maori Party have all benefitted from the rule at various elections since MMP was introduced in 1996.

If a party does not win an electorate seat, it must win at least 5 per cent of the party vote in order to get any MPs.

Peters told TV1’s Q + A he would be open to the last MMP review being revisited.

Any significant change to the electoral system should have bipartisan support. National worked very hard to restore that convention after Labour shattered it in Government last time.

If Labour and allies push through significant changes to benefit them, then the lesson National should take from that if that they will be suckers if they don’t do the same next time. It will become US style winner takes all politics.

So I really hope Labour doesn’t push through any changes to help Greens and NZ First get back into Parliament. It will set us on a downward spiral.

Peters’ New Zealand First Party, Labour and the Greens – all in Opposition at the time – wanted to abolish coat-tailing (also known as the one electorate seat threshold.

They now make up a majority of Parliament. However they do not agree on reducing the threshold to 4 per cent. Only Labour and the Greens supported that. New Zealand First opposed lowering it at the review – and still does according to Peters.

“If you are not worth 5 per cent, you shouldn’t be in Parliament,” Peters said on Q + A.

It’s good that Peters, at this stage, hasn’t changed his view. But we should be very cautious. He is very capable of reversing policy the next day and then claiming that was his policy all along.

 

Doesn’t seem an unreasonable law

News.com.au reports:

THE most senior Family Court judge in England and Wales is set to rule on a case involving a baby who could become the first in the country not to legally have a mum.

The tot is the child of a single parent who was born a woman but who now lives as a man after undergoing surgery, The Sun reports.

He wants to be identified as the child’s “father” or “parent” on the birth certificate but a registrar has told him that the law requires people who give birth to be registered as mothers.

What a terrible discriminatory law. How dare the law say someone who gives birth can’t be a father.

The man has taken legal action after complaining of discrimination.

He says forcing him to register as the child’s “mother” breaches his human right to respect for privacy and family life.

An awful breach of human rights, forcing him to be a mother just because he gave birth.

Vance on the chaos back home

Andrea Vance writes:

But there was plenty of chaos going on back home – most of it right in the heart of Ardern’s own Government.

Revelations about Meka Whaitiri’s bruising set-to with her press secretary were by far the most serious. Allegations that enraged by a missed photo call she injured the woman are serious enough for a party whose founding values are standing up for the worker.

But, add to that the unconditional and blind support of employment minister Willie Jackson – without even a cursory examination of the facts.

Yep a Minister left a press secretary bruised because of a missed photo op, and Labour MPs say they support the Minister unconditionally.

Then came geek entrepreneur Derek Handley, chaperoned by arch-Tory Michelle Boag. He first embarrassed the Government by overtaking their process of releasing communications about the chief technology job he won, and then lost.

Further documents revealed the fingerprints of Labour party president Nigel Haworth and former apparatchik GJ Thompson. Ardern was more heavily involved in the process than previously let on. 

While in the House distancing herself.

The Wally Haumaha appointment scandal continued to dog the Government. The links between NZ First and the former cop and one-time candidate should preclude any of its MPs from being involved in the investigation into his promotion.

And there is probably more to come out on this phone call that Peters denies ever occurred.

The Greens didn’t cover themselves in glory either. In a week that held a low bar for political principles, the sight of the Greens shamefaced voting for Winston Peter’s waka-jumping bill was pretty dispiriting. 

Labour abandons it principles of supporting abused workers. Greens abandon their principles of allowing MPs to dissent. And NZ First stay true to their principles of putting Winston first.

ANSWERS 5pm: Mon. Crossword #2. 01 OCT 2018

Hosking questions why taxpayers pay for Ardern’s campaign photos

Mike Hosking writes:

But what we didn’t realise is she had an ad agency in tow – that you and I are paying for. 

A crew of three, from some agency called Augusto, which has a New York office. And basically they just wandered around filming her, and photographing her. 

And it’s not unusual for a leader to be photographed, but normally it’s the office staff who do it. You know, get the ol’ phone out and take a few snaps. 

She had a whole ad agency with her, and she’s defending it. Because they’re building up library stock and you know what they’re building up library stock for. They’re building it up for the election, and the election campaign. 

And we know this because the PM accidentally told the truth and said the filming was for “campaign stuff”.

You and I have paid for an ad agency of three people, and what do you reckon that costs?

Ardern says it’s not expensive. But she wouldn’t have a clue, because she doesn’t give any numbers.

A film crew of three for the best part of a week could well cost over US$15,000.

Greens wishlist for welfare

The Herald reports:

The Green Party is launching a campaign today to get the community behind changes to the welfare system.

And what would these changes be?

“Increasing the baseline amounts for benefits is pretty clear. That increase hasn’t followed wage increases or inflation for far too long.

Not a good start when she gets a basic fact wrong. Benefits do follow inflation. They are adjusted every year.

If you were to link benefits to wage increases, this would massively increase the cost to taxpayers – probably by over a billion dollars a year.

And removing sanctions which we’ve been very, very vocal about, which is about trying going away from that punitive or punishing approach.

Which means no work testing. You can remain on a benefit for ever and never have to even open a paper to look for a job.

“Changing the threshold for benefit reductions. There are so many people who want to work, even part time, while raising young children in particular. But those incentives are just really clumsy, confusing , messy, and they don’t make it worth it,” Davidson said.

This is a legitimate issue but means people on a benefit and working part-time could end up earning more than someone working fulltime.

The Greens would also look at combining the in-work tax credit and family tax credit and making them less discriminatory.

This means paying the in-work tax credit to people not actually working.

They also wanted Work and Income to stay out of people’s personal lives by “moving towards entitlements based on individual needs rather than a blanket policies around starting new relationships and losing entitlements”, Davidson said.

This means you could be living with a millionaire as a couple, and still claim a sole parent benefit.

She said the party had been working to get to a point where it could launch the campaign, and now was the time.

This is indeed the time. I want everyone to know what the Greens want the Government to do.

Monday Crossword #2. 01 OCT. 2018

Audrey Young on waka jumping law

Audrey Young writes:

But the party-hopping bill passed in Parliament ahead of the party’s convention can barely be called an achievement, let alone qualify as a proud one.

It has been Parliament at its worst – indulging a powerful politician with an obsession with defectors.

This is a law passed to benefit just one New Zealander. Winston. He has a pathological inability to manage his caucus, so he bullies everyone into passing a law to allow him to expel his colleagues when he gets sick of them.

It was only when party-hoppers left New Zealand First rather than joined it that the notion became objectionable, to Peters. 

Yep.

The most pernicious effect of the new law is not the actual expulsion of an MP from Parliament. Rather, it is the chilling effect it will have on strong, independent thought and voice of MPs within parties and within Parliament. In turn that will have an impact on the selection of MPs.

The most damaging effects of the law will be invisible and immeasurable.

Who will criticise a party’s direction, if their colleagues can expel them for doing so?

Dissent has been a strong theme throughout Peters’ career.

He talked about in his maiden speech in 1979 when he lambasted people whom he saw as destructive critics who criticised for the sake of it: “Opposition, criticism and dissent are worthy pursuits when combined with a sense of responsibility. They have a purifying effect on society. Areas in need of urgent attention can be identified and courses of action may be initiated. However embarrassing to community or national leaders, the results are enormously beneficial to the total well-being of the community. The critic I am [condemning] has no such goals. He sets out to exploit every tremor and spasm in society, the economy or race relations, seeking to use every such event as a vehicle to project his own public personality.”

An unkind person might say that Peters has gained power in New Zealand politics by becoming the sort of critic he so despised in his maiden speech.

Had never seen that quote from his maiden speech – he is describing modern day Winston perfectly.

That would be unfair. While his plasticine principles on electoral law have bent to whatever suits his party at the time, the party has been consistent on many issues and much of the time it is a constructive player.

That is being rather generous.