Aardvark Daily

Please visit the sponsor!

Proof... politicians are thick

In the small New Zealand town where I live, there is a problem.

The local pulp and paper mill is shutting down a major production line and anticipates that this will result in the loss of around 230 jobs in six months' time.

Naturally, in a small town, the loss of this many full-time positions represents a fairly hefty blow to the local economy and with this in mind a public meeting was called for Monday night. As they do, several politicians took the opportunity to front up and offer to "save" the day.

However, the dullardry of these clowns defies belief.

Deputy Prime Minister Winston Peters demonstrated his lack of awareness and inability to deal with reality when he claimed that part of his focus would be on lowering electricity prices nation-wide and he also warned that if the Government did not react swiftly, more mills and businesses were likely to close.

The Waikato Times reported on the public meeting in this story for those interested.

What the hell is Winston on about?

Does he not realise that it is the government's fault that power prices are so very high?

Most of NZ's energy companies are at least part-owned by the taxpayer through SOEs and it's the governments constant demand for higher and higher dividends that is helping push power prices to unsustainable levels - levels that are forcing businesses such as the local mill to shut up shop.

But wait, it's worse than that.

Peters is seemingly proposing that the government could subsidise the supply of power to the local mill and that might result in jobs being saved.

WTF you cloth-head?

Is he not aware that it is just such a move that has further worsened the pricing and availability of power in this country?

Down in the South Island we have the entire output of a whole dam being almost given away to one of the world's richest corporations -- Rio Tinto. This "give away" pricing for power was arranged in order to save some jobs at the smelter down there but, as we can plainly see, it has resulted in other power consumers paying the price and the flow-on effect has been the proposed closure of many businesses -- including the paper plant at our mill.

You can't rob Peter to pay Paul when it comes to these things, it simply does not work but clearly nobody's learning from past mistakes.

The government was asleep at the wheel when it believed Rio Tinto's claims that they would shut down their smelter if they didn't get almost free electricity. They claimed that aluminium prices were too low to make a profit at "regular" electricity prices yet, strangely enough, a quick look at historical data shows that the market price of aluminium has risen 80 percent in the past four years -- far more than the price of electricity during the same period.

If Peters follows through on his claims, and delivers subsidised electricity to the local mill, who will pay for that?

Well it will be you, me and every other individual and business that hasn't been given a sweetheart deal by the government. That will result in more businesses going to the wall and more families discovering that they can no longer balance their budgets in these hard times.

For a right-wing government they seem to be making some very socialist promises right now and that's totally unacceptable.

Surely, as a nation, we deserve better than these transparently incompetent politicians who simply see situations such as this as an opportunity to grandstand and self-promote.

The way I see it, if the mill can't make a profit then shut it down and if the government wants to spend taxpayers money then use that money to foster the creation and growth of other industries and businesses in the district. Businesses that can provide sustainable jobs and generate profits that boost the entire nation's economic wellbeing without being a leach on the taxpayer and electricity consumer.

Maybe that would be too much like actual work for many of those political figureheads who appeared at that Monday meeting.

Carpe Diem folks!

Please visit the sponsor!

Here is a PERMANENT link to this column

Rank This Aardvark Page

Change Font