The donation disclosure limit

Stuff reports:

In a Stuff.co.nz/Ipsos poll commissioned for the Sunday Star-Times, 68 per cent of respondents say they would welcome a law change to make all political donations public.

Anything under $15,000 can be donated anonymously, and other loopholes exist to keep donors’ names out of the public domain.

Not quite correct. You can only donate up to $1,500 anonymously (where the party does not know your identity). $15,000 is the threshold at which a party donation must be disclosed publicly, and $1,500 the threshold for a candidate donation.

Today, the Star-Times launches a campaign calling for every donation, big or small, to be disclosed.

Labour leader David Cunliffe is one of the MPs open to something like that.

He could start by disclosing the donors to his secret leadership trust. The gall.

But the laws could be tighter. Greens co-leader Russel Norman would like a cap of $30,000 a year for individual donors and a $1000 anonymity threshold.

Absolutely against a cap. People have the right to donate if they believe strongly in a cause. Also caps do not work. They have them in the US, and caps just turn off the “good” donors and incentivise the others to find ways around then, such as PACs or third parties.

What the Greens want is to force taxpayers to fund their political party, rather than their own supporters.

At present, says Otago University political lecturer Andrew Geddis, our threshold is high, both in international terms, but also given that our size means elections are comparatively cheap to contest.

I’m not sure about the international comparisons, but I look at the disclosure limit as a % of a party’s funds needed for a campaign. National in election year will spend probably $4.5 million in total. So a disclosure limit of $15,000 means anyone who gives over 0.3% of the party’s income gets disclosed. Are you likely to buy influence for that amount? I doubt it.

I do personally think $15,000 is a bit on the high side.I thought the old limit of $10,000 was fine, but Labour and National agreed to lift it to $15,000 in exchange for maintaining restrictions on third party campaigns.

But National President Peter Goodfellow said disclosing all donations would have a “hugely damaging impact on genuine involvement in political participation and party membership”.

I thought Labour were upset that their donations database has been exposed on the Internet? Shouldn’t they welcome it, if they now agree with the Greens?

The Electoral Finance Act reforms removed some of the biggest wheezes – in particular, the Waitemata Trust, a blind trust long used by National to collect anonymous cash.

But there remain ways. On Wednesday, National will charge admirers $1350 plus GST a head to dine with the prime minister at the Pullman Hotel in Auckland.

Stupid article. The fact it is a fundraising dinner does not change the disclosure requirement. It is a red herring. If the tickets were over the disclosure limit,then they would be disclosed. The issue is the disclosure limit, not the method of fundraising.

But an events industry organiser said it was likely National’s costs for even the swishest event would be $200 a head. The rest, then, is really an anonymous donation.

No, no, no, no. The names are recorded by the party as donations, and if they exceed the limit are disclosed. Theey are NOT anonymous. They are just below the limit.

The Astle dinners, says Norman, are wrong: “I think it is basically circumventing the spirit of the law, because the idea of the law was to make large donations transparent to the public.”‘

Norman is basically lying here. The dinners do not circumvent the law. Again if a ticket is over the disclosure limit, it would be disclosed.

Prizes for voting?

The LA Times reports:

Alarmed that fewer than one-fourth of voters are showing up for municipal elections, the Los Angeles Ethics Commission voted Thursday to recommend that the City Council look at using cash prizes to lure a greater number of people to the polls.

On a 3-0 vote, the panel said it wanted City Council President Herb Wesson’s Rules, Elections and Intergovernmental Relations Committee to seriously consider the use of financial incentives and a random drawing during its elections, possibly as soon as next year.

I think this is a bad thing, to start paying people to vote. If they will only vote because some pays them to, then they obviously do not care very much.

A survey of young people in NZ found that allowing voting over the Internet would motivate more young people to vote, than paying them $50.

Garner on dirty tricks

Duncan Garner writes at Stuff:

Helen Clark was probably the biggest gossip of them all when she led the country. She leaked and spread rumours about people and even those in her own team – I wonder how her private communications and those of her senior ministers would look splashed across a book. I bet it wouldn’t be pretty.

But they never get hacked or spied on.

I was also involved in a series of stories about former Cabinet minister John Tamihere over financial irregularities at his previous job at the Waipareira Trust which saw him sacked as a minister. When I got home, my house had been broken into. Nothing was taken but all the windows and doors had been left open. TV3 hired a security firm to change the locks, watch my kids at school and investigate the break-in. The firm concluded that someone wanted to frighten me – and we left it there. 

There have been some very interesting break ins of offices recently. Why would people break into an MPs office? No drugs., no money, no alcohol.

I also remember doing business with Labour’s chief of staff Matt McCarten in the 1990s, when he ran the Alliance. Matt was fun and charming – but let’s not kid ourselves, if anyone knew how to run a black ops sting it was him.

When I worked in Parliament, Matt sometimes would give me stuff to attack Labour with, on behalf of the Alliance. Now he is their Chief of Staff.

Senior Labour  ministers and press secretaries rang to point me toward The Standard, a Left-wing blog, to read its vitriol on certain days. Who had written those posts? I’m told many were written under fake names by Labour staffers paid by the taxpayer.

My point is politics is dirty, no matter who is in power. Hager seems genuinely surprised at this. Frankly I’m surprised at his naivety.   

Let’s not forget that Hager is a long-time critic of spy agencies and electronic surveillance – but he’s happy to accept and publish information taken from people’s computers without their consent. Dirty tricks indeed.

Spying is wrong – except when they do it.

Should the Greens be in the potential PM debates?

Stuff reports:

Greens co-leader Russel Norman wants to shake the minor party tag once and for all after the latest political poll gave them another seat in parliament.

The Stuff.co.nz/Ipsos Political Poll has National steady on 55.1 per cent, Labour down 2.4 percentage points on 22.5 and the Greens down 1.1 percentage point to 11.3 per cent.

Based on those results, the Greens would increase their numbers in the house by one to 15 seats, Labour would have 29 seats and National would govern alone with 72 seats.

The Greens have been the only party to grow consistently in the MMP environment and had a target of 15 per cent in the general election, he said.

Their results are:

  • 1999: 5.2%
  • 2002: 7.0%
  • 2005: 5.3%
  • 2008: 6.7%
  • 2011: 11.1%

Not quite consistent, but they have done well the last two elections.

That should count for something but they were consistently knocked back from the leaders’ debates.

“We don’t like the way we get excluded from the debates and all of that kind of stuff and if we had our way it would be like in the UK,” he said.

“We’ve argued with the TV stations, unsuccessfully, and with many others that it should be three-way debates with the Greens in there.”

Maybe Norman has a point. Maybe he should appear with David Cunliffe in the debates, and they could split Labour’s time with the Greens in say a 2:1 ratio?

The only problem is that there is no guarantee the Greens will be in Government, even if Labour wins. If NZ First blocks them, what can they do?

Dotcom has another go at Xero

Chris Keall reports:

Not content with trolling over the Hager book, Kim Dotcom decided to pick another fight with business icon Rod Drury, baiting him over Xero’s share price.

Get off the grass, Kim.

The political party Dotcom founded is campaigning for cheaper and better broadband connectivity, domestically and internationally. Drury has pushed hard on both those issues. So you’d think he’d be someone Dotcom would respect. …

Dotcom is claiming credit for Xero’s share price dropping 20%, as if this is a proud achievement.

Xero has 330,000 small businesses as customers, and has created 900 jobs – mainly in New Zealand.  They are our our most successful Internet based company. Rod personally has also been a huge champion for Internet issues.

Yet the founder of the Internet Party denigrates him, for he won’t worship at the Dotcom altar. So again do we think Doctom put $4 million into the Internet Party because he is passionate about Internet issues, or because he wants utu?

Wellington voters be warned

Lord of the Rings if the left wins

We all know this verse from Lord of the Rings:

Three Rings for the Elven-kings under the sky, Seven for the Dwarf-lords in their halls of stone, Nine for Mortal Men doomed to die, One for the Dark Lord on his dark throne In the Land of Mordor where the Shadows lie.

One Ring to rule them all, One Ring to find them, One Ring to bring them all and in the darkness bind them In the Land of Mordor where the Shadows lie.

A reader has sent in a NZ version, in case the left win:

Three Rings for Internet Mana living a lie, Seven for the Unions with their hearts of stone, Nine for Mortal Business doomed to die, One for the CTU on its dark throne In the Land of Labour where the Unions lie.

One Contract to rule them all, One Contract to find them, One Contract to bring them all and in the darkness bind them In the Land of Labour where the Unions lie.

I love it.

 

The best scrabble player on Earth is a Kiwi

Oliver Roeder at 538 writes:

When the 2014 National Scrabble Championship begins Saturday in Buffalo, New York, the odds-on favorite will be a 47-year-old New Zealander who resides in Malaysia named Nigel Richards. He is currently ranked first in North America. The difference between his official rating and the second-place player’s is about the same as the difference between second place and 20th. 

Wow.

Beyond all that is the sheer virtuosity of his gameplay, his uncanny gift for constructing impossible words by stringing his letters through tiles already on the board. The ultimate Richards word story: In a game in 1998, then-newcomer Richards had a rack of CDHLRN? (“?” denotes a blank tile). There was an E available on the board; Richards could have played CHILDREN for a bingo and a 50-point bonus. Instead, Richards played through two disconnected Os and an E. The word? The 10-letter CHLORODYNE.

If like me, you wonder what that is, it was a 19th century patent medicine!

Richards’s rating sits at 2180. His peak rating of 2298 is the highest anyone has ever achieved with a minimum of 200 games played. According to Scrabble data site cross-tables.com, his peak rating is even higher than that of Quackle, a powerful artificial intelligence Scrabble player developed by human tournament players Jason Katz-Brown and John O’Laughlin.

He can beat an actual computer with a full dictionary!

So, really, how does he do it? As Richards said in an interview posted on YouTube, “I’m not sure there is a secret. It’s just a matter of learning the words.” All 178,691 of them.

Easy!

Labour’s Auckland Council policy

Cameron Brewer points out:

Labour leader David Cunliffe’s tough talk today around future local government amalgamations does not hide the fact that Labour’s 2011 policies to overhaul Auckland’s “over centralised and corporatised  super city” have all been dropped, infuriating those on the Left hoping for further changes, says Auckland Councillor Cameron Brewer.

“Mr Cunliffe’s roaring like a lion about proposed and future local government amalgamations, but when it comes to further reforming the super city structure that Labour promised three years ago, he’s turned into a big pussycat.”

Mr Brewer said in 2011 Labour’s manifesto vowed to “fix the super city’s democracy” including enshrining local board powers, replacing the Independent Maori Statutory Board with elected Maori seats, abolishing “a corporatised” Auckland Transport, and reviewing all laws and structures pertaining to Auckland Council’s governance and democracy. Back in 2011 Labour was also promising to tie in central government plans with Auckland’s priorities by promising to establish a “Common Accountability Platform for Auckland”.

“Labour’s policy pertaining to Auckland Council this election has been watered down to absolutely nothing which rest assured will be upsetting a lot of centre-left local body elected representatives,” he says.

“Labour shouts that it does not want another Government-imposed corporate-like model like Auckland’s, however Mr Cunliffe is no longer prepared to change anything to do with the super city. 

“Rather, despite all the bravado, Labour is now standing completely aside when it comes to Auckland. The most Labour is now promising is to encourage the council to hold some kind of public inquiry into how Auckland should be governed in the future. No promises of greater powers for local boards, scrapping the IMSB, or repealing super city legislation this election.

“It’s embarrassing for Mr Cunliffe that all his tough talk on local government amalgamations nationwide completely excludes anything changing in the super city – a model that Labour still claims to despise,” says Cameron Brewer

Brewer provides the two policies to compare:

The Labour Party’s 2014 Auckland local government policy: “Restore the power to Auckland Council to decide on its own structures for the delivery of transport and roading services, on which CCOs it retains, affirmation of the roles of Pacific, Ethnic and others, and on land use and housing planning and provision.  We will encourage Auckland Council to hold a full public inquiry into how best Auckland should be governed in the future.”

The Labour Party’s 2011 manifesto: “Labour will fix the super city’s democracy: enshrine powers of local boards, transition from the appointed Maori Statutory board to elected Maori seats, repeal the law that imposes a corporatised transport agency, and review the governance and democracy laws and structures after two years. Labour will set up a Common Accountability Platform for Auckland – Ministers, officials, and representatives of central government will agree common priorities with Auckland Mayor and Council, and ensure better, fairer better alignment between Aucklanders’ voices and needs, council capabilities, national policy and budget commitments.”

So their policy now is to basically ask the Council to have a public inquiry!

Pricing jobs out of existence

Jazz Shat at Hot Air blogs:

McDonald’s employees who picketed for a better living wage (whatever that means) may come to regret that decision. According to a Redditor, a McDonald’s in Illinois replaced their cashiers with machines. The machines appear to be the cousins of the ones found in grocery stores, big box stores, and CVS that allow customers to complete transactions.

What are the economics?

For a location open 24 hours: The cost of human cashiers, not counting benefits, $15/hour * 24 hours * 365 days/year = $131,400

For a location open 6AM to Midnight: $15/hour * 18 hours * 365 = $98,550.

For the machine to be cost effective, all it needs to do is cost less than $100,000 a year to buy and maintain.

That’s not much. This could all happen very quickly.

Yes, as the Forbes article makes clear, it didn’t exactly require a rocket surgeon to predict that if you drove the labor costs up too far in an unltracompetitive market such as the fast food industry, automation would begin to look too tempting to ignore. You’re going to make us pay the guy at the fry machine 15 bucks and hour? Well… we decided to pass on that and pay a robot nothing instead.

A great result for the low paid workers – unemployment!

Wouldn’t it have been a good idea to interview people before publishing?

Stuff reports:

Former ACT party leader Rodney Hide says he ‘laughed out loud’ over allegations he was blackmailed into standing down as leader of the ACT Party.

Jordan Williams, the Wellington lobbyist who features heavily in Nicky Hager’s latest book, also says the suggestion is “utterly false”.

In his book Dirty Politics, Hager claims that Williams was part of a campaign to pressure Hide to stand down, including claims that he was blackmailed into resigning over him sending “inappropriate text messages to a young woman”.

The book published an exchange between Simon Lusk, a political strategist previously aligned with the National Party, and WhaleOil blogger Cameron Slater.

Lusk to Slater: “Cam we an f… up rodney. …Jordan is talking to a girl that Rodney has been sending dodgy texts to.”

Slater: “Get the texts….I can get them to Jonathan Jarshall. Just the sort of grubby shit he would be into.”

“Trying. Problem is that Jordan needs to get them first, probably Wednesday night, but at the same time we can use this to our advantage.”

Slater: “Drop them hard this Fri. No coming back from that.”

Hide said he “laughed out loud” when he read the allegations and referred to Lusk and Slater’s conversations as “two guys who email each other sort of like they’re standing around in the pub talking bullshit…”

Rodney is right. I would have thought an investigative journalist, would follow up the e-mails, and ask if any of the stuff talked about actually happened. People often get boastful or hyped up on e-mails. The entire book is based on e-mails to or from Cameron (plus some material stolen from me), and they take as the literal truth everything said on e-mail.  Just because someone boasts that they will try and get the Minister to move a prisoner for them, doesn’t mean it ever happened – and in fact it can’t happen.

I doubt there are many people who can say they have exaggerated or boasted a bit on e-mail. The blackmail of Rodney never happened. If it had been attempted, he would have gone to the Police.

The book would have been far less sensational if there had been some actual investigating. Instead it is just a book of e-mails, and a theory wrapped around it. No actual interviews with anyone, or substantiation beyond the e-mails.

Ian Wishart points out the hypocrisy:

In his new book Dirty Politics, Nicky Hager reprints allegations contained in stolen private emails – theories about a wide range of people. Among the allegations he has printed are that former Act leader Rodney Hide was blackmailed into quitting because he had been caught sending inappropriate text messages to a woman.

Additionally, Hager reprinted emails alleging Auckland mayor Len Brown was having sex with prostitutes.

Neither Brown nor Hide appear to have been asked to comment on the truth of the allegations. In fact, Hide has definitely confirmed he was not approached, and that the allegations are false and without substance.

Yet here is what Nicky Hager testified to the Wellington High Court in a defamation case last year:

“I believe the more serious the allegations we write, the more care that is required to ensure we have got things correct. I say to myself that no one can ever criticise me for things I haven’t written, so that if I am not absolutely sure of something, I don’t publish.

“Research is something that can take months or years. In this case the allegations were serious and personal. I would not include allegations like those in my work if there was so little time for proving the facts…

“I was struck by the fact that the sexual allegations appeared to rely entirely upon the words of the plaintiff’s ex-wife. As a journalist, I would feel very uneasy about publishing, let alone putting my name to, sexual allegations from an ex-spouse unless I had done a lot of work and found very strong corroborating evidence.”

In Nicky Hager’s new book, he has no witnesses at all; no prostitutes admitting to sleeping with Len Brown, no ex-spouse, no woman saying she was sent inappropriate texts by Rodney Hide. Hager’s entire ream of “evidence” is actually hearsay gossip, which is usually inadmissible in court.

“There are issues of logic in investigative journalism,” Hager told the High Court. “In particular we have to be careful that our evidence actually supports our conclusions…

You might not like Wishart, but he is quoting Hager’s own words.

Hagar-ography…

I’ve either been hacked or spied on

I started reading more fully the Nicky Hager book yesterday, and the footnotes in the book. To my shock I realised that Hager had info in the book that could not have come from the hacking of Cameron Slater, but could only have come from my computer, my apartment or my office.

Specifically he refers to copies of two scripts used by my company, Curia Research, this year. There is absolutely no way they could have come from Cameron Slater’s computer systems, as Cameron doesn’t have them. No one has them but me and my office.

I thought about how this could have happened. The two most likely scenarios are that my computer systems have also been hacked, or that someone physically removed the scripts from my office (or possibly apartment). All of these scenarios make me feel sick, and make me worry about the security of the 100+ staff working for me.

Some of the material is very recent – from June 2014 – just two months ago. I think the most likely thing is that someone joined the staff (we recruit often) with the purpose of acquiring material from my office. There’s no evidence of a break in, and I tend to keep my computer systems fairly secure.

I am sure the official explanation will be that the scripts just turned up in an envelope somewhere, and they have no idea how they got there. I think that is bullshit. Most of my staff are young students, who I can’t imagine would suddenly decide to send a copy of my scripts to Nicky Hager in the post.

I consider this outrageous, just as I hope people would if someone from the right infiltrated the offices of the Labour Party pollsters, to steal their material.

There is no public interest defence to the stealing of the material belonging to my clients. There was nothing sinister or inappropriate in it.  In fact one of the scripts detailed in the book is of some questions we did for Family First, who published the results on their website, including the full questions. But I know Hager has a copy of the script as he has quoted the question numbers, which are not included in the published results.

I do not accept that because I am a blogger, and my company has National as a client, it makes it all right for me to be hacked or spied on, and material stolen from me.

This is the second Hager book that has e-mails from or to me. In 2008 (off memory) a left wing activist gained entry to a social function I was at, and covertly tape recorded conversations. My office has been infiltrated. To be honest, I’m pretty disgusted at the moment as I consider the pattern over several years.

I don’t hold the left generally responsible. I have many many friends involved in politics on the left. I’ve appreciated their support in recent days. They are good people. I think most Labour and Green MPs are good people. But there is an extreme segment of the left who do think that it is okay to hack, steal, record and spy on others, because we are of the right.

My gut reaction last night was to give up politics, if it means that I am going to have to worry about spies infiltrating my company, my communications being hacked, people recording private conversations with me. I regard my family, friends and loved ones as far more important to me, than my involvement in politics. But I’m not going to do that in haste.

Instead with huge regret I’m going to have to stop being so trusting. I’m going to have to pay what will be possibly a fair bit of money to check my apartment, my office and my computer systems for anything that shouldn’t be there. While my assumption is that the scripts came from someone who had physical access to my office, I can’t be sure. If people regard hacking and stealing as fair game, I don’t have the confidence they’ll stop at that.

I could introduce systems in my office where staff get personalised copies of scripts, that must be handed in,and have security cameras to record people. But I’m not going to do that. I value my staff too much to insult them. All but one of them will be as offended as I am, by the fact someone has betrayed their trust by stealing material (if my assumption is correct).

Maybe I’m wrong. Maybe the cleaners stole it. Should I check out my cleaners also? I hate the fact I’m even having to think about this. I’m sure again that there will be some official version offered in which no one did anything wrong to acquire those scripts, but pardon me, if I have some disbelief.

Labour hits new low

No we’re not talking their tactics, but their poll ratings.

The latest Fairfax Ipsos poll has Labour down to 22.5%. I’e blogged the summary at Curiablog.

The gap between the right and left blocs is 27 seats.

Labour’s support by demographic is:

  • Men 18%
  • Women 27%
  • Auckland 25%
  • Upper NI 16%
  • Wellington 23%
  • Lower NI 30%
  • Canterbury 14%
  • SI 27%
  • Under 30s 26%
  • 30 to 44 25%
  • 45 to 64 21%
  • 65+ 19%

Note this poll was taken after their announcement of free GP visits for elderly New Zealanders, and after their campaign launch which is meant to be what gives you a boost in the polls.

There’s going to some very nervous Labour List MPs on this result, who will be cursing the unions and activists for their choice of leader.

British MPs want tobacco style warnings on wine!

The Herald reports:

Cigarette-style warnings should be placed on wine showing its health risks and the number of calories it contains, a group of British MPs has said.

Next will be plain packaging for wine!

The recommendations come after Public Health England said no one should drink alcohol two days running in order to minimise the risks to their health.

Sigh.

Professor Mark Bellis, an alcohol spokesman for the Faculty of Public Health, suggested labels could say that alcohol increases the risk of cancer and causes at least 15,000 deaths a year in the UK.

We should have the same warnings on pasta, lamb chops etc.

Is Labour going to whack up alcohol price and the purchase age?

Labour’s policy says:

implementing the recommendations from the Law Commission Report on Alcohol

The Law Commission recommended

  • Increasing the purchase age to 20
  • A 50% increase in the excise tax on alcohol

So one can only presume that Labour is committed to moving the purchase age back to 20, and to a 50% tax hike on beer, wine and spirits. I thought this deserved some publicity.

Who was Gerd?

Stuff reported:

KGB files smuggled out of Russia reveal a former Labour MP was an informant for the feared Soviet spy agency and was given the codename “Gerd”.

The Mitrokhin files say an unnamed Labour MP, born in England in 1926, was in contact with Drozhzhin during the KGB agent’s Wellington posting.

He was given the codename “Gerd”, and information passed to the KGB said he was also a member of Labour’s executive committee.

There seem to be two possibilities for Gerd.

The first is a former MP from 1972 to 1975. He was born in 1926 in England and was the MP from 1972 to 1975. It appears he is still alive, and I hasten to say there is absolutely no proof at all he is Gerd, beyond the coincidence of date and place of birth.  Also as a one term MP, I doubt he was on Labour’s executive.

The second has been suggested to me by multiple sources. He was a three term MP and was on Labour’s executive off memory. He was born a bit before 1926 and in NZ, which makes it unlikely. But there were media reports in the 1970s about the SIS taking an interest in him.  He is also alive.

We may never know who Gerd is, which is a pity.

Cultural correctness on teacher training

John Ansell blogs the words of a recent teacher trainee:

As a recent graduate in secondary teaching, I have been invited to share my experiences of the teacher training I received.

I shall describe the cultural indoctrination to which trainee teachers are subjected and the flow-on effect this has on school culture and classroom learning.

I am aware of the risks involved in taking this action (my lecturers and classmates should have little trouble identifying me), but I hope that my example will encourage other teachers (and trainee teachers) to come forth and share their own experiences.

It is important that readers of this blog understand the hoops that trainee teachers are forced to jump through, and the limits on freedom of thought that are imposed from above.

Once upon a time education was about diversity of thought!

One of the essays that I had to write concerned the ‘roles and responsibilities of teachers and learners in the New Zealand classroom.’

The learning outcomes for this essay centred on biculturalism, te reo Maori and the historical, political, social and cultural influences on New Zealand schools.

Failure to satisfy the requirements for any one of these learning outcomes would necessitate a re-submission, and failure on the second attempt would mean failure for the course.

Frustrated by the indoctrination to which I had been subjected, I wrote critically about many of the issues we were expected to cover.

My intention was not to be provocative or incendiary, but to assess the issues in an objective, thoughtful and reasoned way.

When my essay was returned to me, I was shocked to discover that I had been given the lowest possible grade.

Even more distressing were the spiteful comments that appeared in the margin of my essay, accusing me of “monocultural ignorance” and of being “patronizing.”

The marker’s tone was defensive and censorial, as if I had no right to hold the views that I had expressed.

They were heresy I’m sure.

I was forced to resubmit the essay, exactly as they wanted it, expunged of all signs of a critical intellect.

It is a terrible thing to be conscripted into writing something that you do not believe, and for this to occur in a university environment is completely unacceptable.

Universities should welcome critical dissent, not squash it.

I don’t agree with all of the views of the teacher trainee. But views on Treaty issues should not be a litmus test for who can be a teacher.

Reducing climate emissions

X is for X-efficiency

The NZ Initiative struggles to find an economic term starting with X:

It would have been a stretch for us to relate X-rays or Xylophones to economics. Lucky for the ABCs of economic literacy, Harvey Liebenstein prefixed the word inefficiency with a big X when proposing the concept of X-efficiency in the 1960s. It is the only economic concept in MIT’s Dictionary of Modern Economics listed under X.

X-inefficiency arises when firms fail to achieve the maximum possible level of output from given inputs. It contrasts with allocative inefficiency, which is the failure to produce the optimal mix of outputs, even if each output is produced at least cost.

X-inefficiency represents a forgone opportunity to increase profits, wages or both. A text-book monopolist would not fail to maximise profits but, in practice, some firms might.

The New Palgrave Dictionary of Economics cites, as evidence for the existence of X-inefficiency, a study in 1981 of a Ford plant in Germany that was producing 50 percent more automobiles with 22 percent less labour than an identically-designed plant in the UK. (Presumably German workers were getting paid commensurately more, reflecting their greater productivity.)

Differences in labour market laws, entrenched labour market practices, cultural attitudes to work, performance and pay may make it hard for even a profit-maximising owner to raise the productivity of the UK plant to the German level. But if wages are sufficiently lower in the UK, a profit-maximising owner might be able to make enough profit out of the UK plant to justify not closing it and shifting all production to Germany.

Managerial slack is a related source of X-inefficiency. Employee managers are likely less motivated than owner-managers to maximise profits. Owners may be unable to fully overcome this problem. Diffuse ownership may be one reason why owners might fail in this manner.

Laws that make it unduly difficult to hire or fire managers or workers or to target incentives at top-performers (performance pay) may contribute to X-inefficiency. For example, anti-takeover laws may protect under-performing management teams.

Performance measures across firms and countries, such as the Ford factory one above, can help identify egregious cases of X-inefficiency, but eliminating its causes may be too hard if they are entrenched.

The theory is controversial because if people prefer not to work as hard and as productively as they could, and consider the lower wage to be a price worth paying, they are actually optimising. Their lower productivity is efficient.

Two to go.

Herald supports call for broadcasting law change

The NZ Herald editorial:

How absurd that radio programmers cannot play a song that mocks John Key because it may breach the Electoral Act, and how ironic that the singer has been gagged by an act of the previous Labour Government. Darren “Guitar” Watson’s song contains a lyric that, in the words of the Act, “appears to encourage voters to vote or not to vote for a political party or candidate”.

News bulletins on radio and television are exempt from the restriction on “third party advertising” and no doubt by now most people will have heard Mr Watson’s voice and seen an accompanying video that its creators consider more “subversive” than the song. But it is simply silly that the song and video cannot be given airtime in their own right to enliven the election campaign.

Helen Clark’s overreaction to the Exclusive Brethren seven years ago has created a regulatory minefield for anyone outside a political party who wants to inject some argument or entertainment into a New Zealand election.

National shares the blame. It reviewed the advertising rules when it came to office but made only minor alterations to them.

This restriction can’t be blamed on the Electoral Finance Act, or its successor. The restriction on any political programme being broadcast has been in the Broadcasting Act for decades.  The Broadcasting Act gives the state a monopoly on political broadcasting – nothing can be broadcast that isn’t funded by the allocation given out by the Electoral Commission.

Be careful what you ask!