Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Treasury NZ Rail report 'garbage'

Jim Anderton A Treasury cost-benefit study on the privatisation of NZ Rail released today is garbage, Alliance leader Jim Anderton says.

'This is far right ideology masquerading as maths. The economic analysis is of such poor quality that it demands an inquiry into the shabby state of economic competence at Treasury and at the Victoria University front-organisation set up to produce the study.

'Analysis of the study by independent professional economists commissioned by the Alliance showed that equations underpinning th e study contained political assumptions normally associated with far-right economic analysis.

'The Government's net revenue is the only truly measurable figure in the document. The rest is based on highly subjective assessments of items such as 'consumer surplus'. The study uses far-right economic assumptions to weight the importance of many elements.

'The welfare benefits of New Zealand and foreign ownership are assumed to be equal. So, for example, if the sale of NZ Rail has resulted in profits flowing out of the country, worsening the balance of payments deficit, then all New Zealanders pay higher interest rates. But the study assumes the effect is zero.

'The study assumes that there is no benefit to consumers from public ownership of a network. So for example, if the railway makes a small provincial town viable, the study assumes there is no benefit from that, nor any benefit to a company which can ship goods more cheaply.

'The most sinister assumption is in the statement 'we do not distinguish between the welfare of economic agents as between their actions as consumers or providers of labour.

' To see what this means, imagine that NZ Rail under private ownership lays off staff and stops providing apprenticeships, but makes more profit and therefore pays more tax to the Government. If the Government used that money to give tax cuts to the wealthy, then the study regards that as welfare-neutral exercise. The person who loses their job or training opportunity is assumed to be no worse off, and society is assumed to be no worse off because of high levels of unemployment and falling skill levels.

'This is economic garbage of the most sinister and far-right variety and Treasury should be ashamed of its involvement in it,' Jim Anderton said.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election