Wednesday, February 1, 2012

Asset Sales Or Treaty Obligations?

I find it hard to believe that this has become an issue post election for the Maori Party. The Nats made no secret of its policy to sell assets before the election and despite the bad poll ratings of the policy they stuck with it. Why didn't the Maori Party object then? Weren't they aware of the implications for the Treaty requirement? Something tells me that they are not up with the play. As far as assets sales are concerned we don't seem to have learnt anything or memories are short lived. There's some in government who still think that the unbridled market and private enterprise always beats state enterprise every day when the abject failure of the former sale of Air NZ, and NZ Rail proves otherwise. Telecom only succeeded as a private monolopy. It lost its share value as soon as competition intervened but private enterprise cannot for some reason provide faster broad band without the help of the state. Why? Are they waiting for the tax payer? What happened to the invisible hand of Adam Smith? The sale of power companies will result in private monopolies and higher prices as these utilities make exorbitant profits. And when the time comes to increase power supply guess what. The tax payer will be made to pay for that infrastructure. Frankly the idea that in the provision of these public utilities like rail, power, and telecommunications, private enterprise is nothing but a sick joke. Now our jails will be privatized. Why not our police, army and navy?