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 Why New Zealand Needs To Change Its Defence Habits


In a flashback to the military displays of days gone by, one of our frigates recently joined a Carrier Strike show of force in the South China Sea, en route to a joint military exercise in Singapore with our traditional allies, called BersamaGold21. Reportedly, Anna Powles, from the Centre of Defence and Security Studies at Massey University felt this to be a case of us doing our bit to uphold international law, and the right of free transit through the region in question... More>>

Government: New COVID-19 Protection Framework Delivers Greater Freedoms For Vaccinated New Zealanders


Vaccinated New Zealanders will regain everyday freedoms when the country moves to a new simplified COVID-19 Protection Framework that doesn’t rely on nationwide lockdowns as the main measure to stop the virus spreading. In a suite of announcements that establish a pathway out of restrictions the Government is also providing up to $940 million per fortnight to support businesses through the challenging period... More>>

ALSO:





 
 


Government: Responds To Independent Review Into WorkSafe

The Government has clear expectations that WorkSafe must action the recommendations of the independent review into the regulator to improve its management of adventure activities following the tragedy at Whakaari White Island, Workplace Relations and Safety Minister Michael Wood says... More>>

Government: New Zealand Secures Historic Free Trade Deal With The United Kingdom
New Zealand and the United Kingdom have agreed in principle the details of a historic Free Trade Agreement (FTA), which will further accelerate our COVID-19 economic recovery say Prime Minister Jacinda Ardern and Minister for Trade and Export Growth Damien O’Connor... More>>

ALSO:

Ombudsman: Launches Investigation Into MIQ Booking System
The Chief Ombudsman Peter Boshier is launching a broad investigation into the Managed Isolation and Quarantine (MIQ) booking system after receiving hundreds of complaints... More>>

ALSO:


Pay Cheque To Pay Cheque: Half A Million New Zealanders Have No Savings
New findings from the Consumer NZ sentiment tracker found that 15% of New Zealanders had no savings, and a further 27% were anxious about their level of savings and would like to have more tucked away... More>>


Government: Mandatory Vaccination For Two Workforces

Large parts of two workforces critical to preventing the spread of COVID-19 will be required to be vaccinated, COVID-19 Response Minister Chris Hipkins said today. “Our education and health and disability workforces have done an incredible job throughout this pandemic to keep themselves and people safe,” Chris Hipkins said.... More>>


Green Party: Deeply Concerned Space Launches May Be Breaching Nuclear-free Laws

The Green Party is deeply concerned that space launches by Rocket Lab may be breaching nuclear-free laws, given our long-standing position as a signatory of the Nuclear Non-Proliferation Treaty... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels