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Sunday, April 10, 2011

Mediaworks deal so shonky it could have been cut in Libya

See what happens when Derek Cheng takes cues from Tumeke on story ideas rather than that awful Cameron Slater and that biased pollster at Kiwiblogh? Rather than bullshit coup rumours, what about an outright corporate crony rort of the Tax payer to the tune of $43 million? What did Brent Impey say to John Key for him to reverse MED advice? Why the bloody hell aren't the media screaming this story from the bloody rooftops??? Why on earth are media meetings of such importance being discussed in the green rooms of a bloody telethon?

1: Why are we butchering public broadcasting while lending money to an overseas company once owned by the Minister who signs off on the dea, all against the advice of the Ministry of Economic Development?

2: What was said at the private meeting between Brent Impey and John Key behind the scenes at a Telethon that John Key initially denied happened? And why on earth are deals this large being cut at events like this? Does Key also cut trade deals at Mardi Gras? Serious policy that involves a financial deal that goes against the advice of your own Ministry deserves a fuck of a lot more attention to detail than a private meeting between the bloody Prime Minister of NZ and the CEO of the company wanting the deal in the back room of a Telethon!

That isn't how you run a country, that's how you run the Mafia!

This is so shonky not even right wingers can feel comfortable with it!

The more and more that comes out about this $43million loan to Mediaworks at an interest rate that Ironbridge could not have gained on the open market, the more and more it stinks. Here's Key denying he met Mediaworks to discuss the bailout that MED refused, and then Key remembers they did meet.

Key changes tack over meeting with broadcaster
Prime Minister John Key has done an about-face after denying he had a discussion with MediaWorks bosses before the Government decided to give the company a $43.3 million helping hand. He has now admitted meeting then-MediaWorks boss Brent Impey two months before, when Mr Impey pressed his case for a scheme the Government initially turned down.

So corporate Welfare for AMI is a nice to have? $1.7billion bailing out Mr Magoo at South Canterbury Finance is 'nice to have'? $40 million to private education is 'nice to have'? $15 million for the manufactured crises at Warners is 'nice to have'?

I bet those 34 luxury BMW's are 'nice to have' as well.

Supposedly public broadcasting isn't nice to have, but more corporate welfare to a media company once owned by the Minister who is signing off on the deal that went against MED advice after a private meeting between the PM and CEO is apparently 'nice to have'.

March 2009:
Rhema Broadcasting Group writes to Steven Joyce about the high cost of renewing its radio spectrum licence.

April 2009: Radio Broadcasters' Association writes to Joyce, asking for the payments to be annual over 20 years, rather than one lump sum.

May 2009: Ministry of Economic Development says there is no strong case, as it would place "the Government in a credit financing role".

May 2009: Joyce declines RBA, citing MED advice as reasons.

July 2009: Briefing to Joyce says that MediaWorks boss Brent Impey was working on a different proposal and was lobbying "higher levels" in Government.

August 8/9 2009: Impey lobbies Prime Minister John Key during a telethon.

September 2009: MED rejects new deferred payment proposal - spread over six years - on the same grounds as before.

October 2009: Draft Cabinet paper notes Treasury opposes the scheme as it overturns long-standing policy and may see others, such as TV companies, ask for similar treatment. Also notes a lump sum payment would not threaten the long term viability of MediaWorks or The Radio Network, but it would impact profitability.

October 2: Joyce writes to Key seeking to present a paper to Cabinet on Oct 12, proposing deferred payments scheme.

October 22: Joyce announces deferred payment deal, where payments will be made in five annual lots at an interest rate of 9.5 per cent plus inflation.

So, did any of the money that they saved from the deferred payment go to pay for former National Party candidate Paul Henry to host on one of Mediawork's top talkback stations?



At 10/4/11 9:39 am, Blogger Jeremy said...

Guaranteeing AMI is not corporate welfare. The problem with the Left at the moment is it's full of people who shout but are weak on economics. AMI is a New Zealand owned mutual - that is its exactly the type of company the left should be supporting. Guaranteeing it is simply helping out the victims of the Chch quakes. It does look like AMI management fucked up. They calculated their risk - like other insurers on a major Wellington quake - and they have far less policy-holders in Wellington. Same thing happened to the real corporate rip-off agents Lloyds following the San Fran earthquake. This is a sad event for lefties who think rather than simply shout. The likely result is that AMI will become a foreign-owned corporate. AMI had kept down the premiums right across the industry.

At 10/4/11 9:53 am, Blogger Bomber said...

I don't understand economics? Really? What I seem to be missing is why corporate welfare for AMI is a 'nice to have' while public education and public health isn't.


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