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Tuesday, April 23, 2013

Joyce: saboteur

With a few wobbly poll results over the weekend a defensive Steven Joyce is running scared over the solid and unifying Labour-Green 'NZ Power' policy launch. It's timing was entirely provoked by the pig-headed Mighty River Power privatisation, so Joyce has only his hand-crafted asset sale programme to thank for that. His hysteria at the thought of lowering costs to consumers and the cries of anguish at the post-announcement slumo of the share price on behalf of the over-valued cartel has not relented. The Nats are sensing danger if the first pou of a coalition house goes in the ground unchallenged. The Tory counter-attack however has been more Dad's Army than anything 21st century. After Bridges called it North Korean, Joyce said it was South Korean. If they can't get their Koreas right, perhaps they should be searching for a new Korea?

From the paraniod Joyce today - fresh from flushing out reds from under his limo after another viewing of 'Good luck and Goodbye' spent sympathising with that awesome Sen. McArthy - he tells us the prompt disclosure by the potential incoming government of their policy to reduce electricity bills... Is to accuse them of 'sabotage' no less.

It's simply economic sabotage .
[A...] cynical and selfish attempt by left wing parties to play politics with the value of NZ's economic assets.


Crying a mighty river on behalf of the foreign interests too. The only thing cynical and selfish is the privatisation of public assets into the hands of the few on a flimsy pretext. The sabotage is a government that would sell off state assets to fund the irrigation schemes to make famers rich instead of paying off the debt like they promised. Everyone knows these things at some level. Those in favour of a Rogernomics-era style fire sale and unrestricted foreign ownership is low. Joyce's bogeyman tactics don't ring true and smack of desperation. By pinning so much on a share float - a show of confidence - it ran the risk of back-firing.

If Joyce is the best the Nats can do they should just bite their lips and take the judgment the market will render rather than flap about condemning the opposition for essentially being responsible and up front.

NZ Herald infographic:
The only main thing missing is the debt. The orthodox move after a float will be for the private shareholders to demand higher dividends - windfall/super dividends of over 100% of profits - and they will raise debt to do it. Borrowing to pay themselves. Looting upon looting.  After they have racked up billions in debt onto the books (which the government as 51% owner is also responsible) and taken all the cream they will then attempt to use that as a reason the commerce commission and the regulators should let them charge above average increases. It is all so predictable.



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