happybaboon wrote:

nostromo wrote:Hey check this out, ostensibly it's John Key talking about Goffs tax package (fair assasination job, but I'd like to see Goffs response) but check out all the hotties in the press gallery at 1:25. I chose the wrong career.

http://www.nzherald.co.nz/business/news ... _id=116370

Sorry, but whut? The guy who borrows 300 million a week on our behalf so he can give a tax cut to his rich buddies is calling somebody else "fiscally irresponsible"? One can't get much more fiscally irresponsible than Key without being in court alongside the rest of the directors of Bridgecorp....

thorg wrote:

happybaboon wrote:

nostromo wrote:Hey check this out, ostensibly it's John Key talking about Goffs tax package (fair assasination job, but I'd like to see Goffs response) but check out all the hotties in the press gallery at 1:25. I chose the wrong career.

http://www.nzherald.co.nz/business/news ... _id=116370

Sorry, but whut? The guy who borrows 300 million a week on our behalf so he can give a tax cut to his rich buddies is calling somebody else "fiscally irresponsible"? One can't get much more fiscally irresponsible than Key without being in court alongside the rest of the directors of Bridgecorp....

perhaps he should have said "more" fiscally irresponsible - as Goff is wanting to spend even more money, which he cannot say where it will come from (translation = it either wont happen, or we will be borrowing even more than the 300mil a week the Nats a lumping us with).

They are different sides of the same coin.

happybaboon wrote:Yeah, I know
Goff is flapping in the breeze a bit right now... Hope he manages to propose a workable solution soon as to where the money is going to come from - realistically it can only come from one place, taxes on higher earning companies/people. That might be unpopular with 20% of the population, but c'mon, just come out and say it Goff! Propose a solution that'll end the deficit and improve the welfare of the majority of the population and people will vote for you maing. Otherwise step aside and let Andrew Little take over, 'cos he's got a smileyness that'll easily combat Key's.

great uncle bulgaria wrote:I just about pissed myself laughing at Bill English's reasoning:
SOE power companies make 15%, but if we sell part of them we can retire some debt that costs us 6% thereby being 9% less efficient use of that money. But that's OK because - prices were rising too fast for consumers - so partly privatising will slow prices rising - in exactly the same way it hasn't done anywhere else . . . . Oh except in telecommunications where it started to after telecom was forced to unbundle the local loop etc.
Or that by partially privatising the efficiency will rise and therefore the equity value of the company will rise and therefore government holding equity - ignoring the fact that net value is tied to profit and isn't going to spectacularly rise, if the prices are dropping and benefiting consumers as he suggested as benefit in his previous reasoning.

Having said that, there are some models of public private partnership that succeed in other countries I believe, but the logic, in this case seems fairly absent . . .

nostromo wrote:

great uncle bulgaria wrote:I just about pissed myself laughing at Bill English's reasoning:
SOE power companies make 15%, but if we sell part of them we can retire some debt that costs us 6% thereby being 9% less efficient use of that money. But that's OK because - prices were rising too fast for consumers - so partly privatising will slow prices rising - in exactly the same way it hasn't done anywhere else . . . . Oh except in telecommunications where it started to after telecom was forced to unbundle the local loop etc.
Or that by partially privatising the efficiency will rise and therefore the equity value of the company will rise and therefore government holding equity - ignoring the fact that net value is tied to profit and isn't going to spectacularly rise, if the prices are dropping and benefiting consumers as he suggested as benefit in his previous reasoning.

Having said that, there are some models of public private partnership that succeed in other countries I believe, but the logic, in this case seems fairly absent . . .

I dont think they are making a 15% return on their value, perhaps as a percentage of profit of their operating costs.