Oct 24, 2008

NZ First Cleared

Two good posts on the supposed "clearance" of NZ First by the Electoral Commission.

David Farrar

Hooton

Why The Difference In Green Support?

Why does the poll taken for the tv station that practices gutter journalism show the Greens at 8.8% and the Herald DigiPoll show them at 5.4%?

Methodology may be an issue (we don't rate the tv poll at present). But timing may also be an issue. The tv station poll was taken before the Greens announced their decision to join the Axis. The Herald DigiPoll is showing up the initial effect that this decision has had on support. Much of the loss of support has gone to Labour now that the two parties have become so indistinguishable.

NZ First Support Rebounding

We were at a dinner last night at which a prominent business person was stating with great authority that National's internal polling is showing a big rebound in support for NZ First and that they are comfortably beyond 5%.

Tempted as we are to encourage NZ First supporters into a sense of complacency we have been asking around. We have received a consistent response. BULLSHIT! NZ First is most unlikely to be represented in the next Parliament. Labour have successfully snuffed them out of existence and raided their votes.

As we have just posted study the Herald DigiPoll.

Herald Digi Poll


Evryone should take note of the Herald DigiPoll. We hear from both Labour and National sources that this is quite close to the mark.


Poll Result

Newspapers are reporting that a TV station that practices gutter journalism had a poll out last night. This apparently shows National well out ahead of Labour and a surge in support for the Greens. The polls are getting more volatile.

We are expecting a few more polls out in the next few days.

Interest Rates

Great to see the banks have been so quick to pass on the benefits of the drop in the OCR.

Oct 23, 2008

Strong Leadership Needed During Difficult Times

Jenni McManus shows some leadership in her opinion piece in today's The Independent - page 23 We quote a few paragraphs:

Foregt MMP this time around. Those who would squander their party vote on a minor party, such as one wanting to ban fizzy drinks in schools or with education policies that foster "participation, sustainability and peace", will likely to be the first to squeal if we deliver ourselves a government so paralysed by post-election horse-trading that it can't get on with the job of digging New Zealand out of recession.

Whoever is unlucky enough to become the Government on November 8 needs a clear mandate to introduce bold policies, take calculated risks and, most of all, implement its plan for restoring consumer and market confidence.

We will be the losers if the structure of the new Parliament forces the incoming Government into delays and argy-bargy of negotiating every initiative for fixing the inevitable job losses and company collapses.

The answer is simple. If you prefer one of the minor parties use your electorate vote. For your party votes, the proper choice is either National or Labour.

What we don't need is a steady pair of hands Prime Minister. Nor do we need timid economic policy. We need a PM with guts, brains and the leadership skills to pull New Zealand back from the brink.

We wonder who she is thinking of?

Pledgate08: Why Did Goff Stuff Up?

There is an interesting post on Hooton's blog. Why would Phil Goff be the one Labour MP to stuff up and have his Information Kit for the Over '60s so closely associated with the Labour Party when all others have avoided making this mistake? Is it because Goff is stupid? Not the Phil Goff we know. Or is it because someone did not tell him the rules?? Could he have been set up? Who would do such a thing to Labour's heir apparent?

OCR: Down to 6.5%

The Reserve Bank has, as expected announced a cut of 100 points.

Here is the statement


NEWS RELEASE
Date 23 October 2008
Time Embargoed until: 9:00am

OCR reduced to 6.5 percent

The Reserve Bank today reduced the Official Cash Rate (OCR) from 7.5 percent to 6.5 percent.

Reserve Bank Governor Alan Bollard commented that "ongoing financial market turmoil and a deteriorating outlook for global growth have played a large role in shaping today's decision.

"Economic activity in New Zealand will be further constrained, relative to the outlook presented in our September Monetary Policy Statement, by these international developments. New Zealand can expect to face lower demand for exports and credit is likely to be less readily available. In this environment consumers and businesses are likely to be more cautious and curtail spending.

"The reduction in domestic spending will be partly offset by the depreciation of the New Zealand dollar over the past few months, falling oil prices and the recent loosening of fiscal policy.

"With weaker short-term growth and sharply lower oil prices we now expect that annual CPI inflation will return to the target band of 1 to
3 percent around the middle of 2009. However, we still have concerns that domestically generated inflation (particularly in labour costs, local body rates, electricity prices and construction costs) is remaining stubbornly high.

"Consistent with the Policy Targets Agreement, the Bank's focus will remain on medium-term inflation. Should the outlook for inflation evolve as projected we would expect to lower the OCR further. However, the timing and extent of OCR reductions over the coming months will depend on evidence of actual reductions in domestic cost pressures as well as how the global financial developments play out."

Latest Blog Rankings Out

Thanks to Tim Selwyn for doing all the hard work again to produce the latest NZ Blog rankings. He has posted a new top 20. There are quite a few big moves, perhaps not surprising given the forthcoming election.

Media Missing Point

The Press today reports that 130,000 homeowners are now in a negative equity situation.

This is a major crisis, but is this portrayed as such? No. What does one of the home owners say?

However, McKay said he was in the property market for the long haul and expected prices to bounce back eventually.
"I don't think in the long term it's probably going to affect the price of the property too much," he said.


But what about the short term Mr McKay? Are you on a fixed or floating mortgage? What happens when the fixed rate mortgage comes up for review? Do you expect the bank to roll this over in full even though the property securing the mortgage is worth less than the mortgage? No way.

The bank is going to want a new valuation and it is going to only be prepared to lend you a proportion of that value.

Mr McKay's house was purchased for $293,000.

Lets say it is now worth 10% less. It is now worth $263,700

And let us say that the bank is only prepared to lend 90% of that - $237,300.

What happens to the $55,700 difference?

The house belongs to the bank. Do you think that the bank is going to gift it to Mr McKay? No way.

If Mr McKay wants to stay in the bank's house he and his co-owners are going to have to pay the bank $55,700. Do Mr McKay and fellow owners have $55,700 sitting around? We hope so.

There is a major crisis coming the way of 130,000 homeowners. Why is the media not explaining it?

Armstrong On Smith

John Armstrong sees Lockie's reported clanger as something of a blessing in disguise for John Key

Smith's clanger pales in comparison. He may have made the first major gaffe of this election campaign. But it will be a one- or two-day wonder.
He has probably damaged himself more than his party with his appalling remarks that Asians have "small hands" and some seasonal Pacific Island workers have to be taught how to use the shower and toilet.
Smith can forget becoming Minister of Immigration in a National government.
He might not mind. Although he has done a good job hounding Labour as Opposition spokesman, he is not particularly enamoured with the immigration portfolio.
Unfortunately for Smith, Key is unlikely to stop there. He might leave him out of the Cabinet altogether if National wins on November 8.
With younger MPs knocking on the door, Key now has every excuse to give the long-serving Smith a lesser role.
The same applies to Maurice Williamson for talking aloud (again) about charges for using toll roads.
Key will not publicly flag his intentions before election day.
Yesterday he was merely noting that Smith had apologised, that Cabinet selection depended on a number of factors and that - echoing Helen Clark - it was time to move on.
It is sufficient that the impression be created that big question-marks hang over the futures of Smith and Williamson.
Labour has made much of the fact that while Key is a fresh face, many of those sitting alongside or behind him are the faces of the 1990s. The message is that whatever Key might say, he is just the front man for the old guard.
National needs to blur that image. Smith and Williamson may have unwittingly helped their party to do so.

Cullen Talks Of Aussie Bank Float

Readers of The Hive will not be surprsies by this news. Michael Cullen is demanding that, in return for a guarantee on wholesale market borrowings, that the banks float more shares in new Zealand.

The Government is reportedly seeking to boost local ownership of the Australian-controlled major banks here in return for a wholesale funding guarantee the banks say is needed to ensure they can raise sufficient cash to keep the economy ticking over.
Finance Minister Michael Cullen was last night reported as saying a partial float of Australian bank shares on the New Zealand sharemarket may be a condition of the wholesale funding guarantee for banks Treasury and Reserve Bank officials are currently drafting.
"Clearly that should be considered carefully as we move towards finalising any details of this scheme," Dr Cullen told TVNZ News.
But National Party finance spokesman Bill English said he would be concerned if Government insistence on such a concession prevented the timely introduction of the guarantee.
"We are now only eight or nine weeks from Christmas and the banks have raised the possibility they may have funding problems that would lead to a sharp contraction in lending by then."


We would be concerned but not surprised if the New Zealand Government was one of the largest buyer of these shares........

Singaporeans Born Light

How is Lockwood Smith's reporting of the views of grape growers on the size of Asian hands any different from a generalisation about the weight of Singaporeans? Is it OK for Winston to make insulting generalisations but not Lockwood? Oh, we forgot, Winston is part of the Axis. Read this from The Herald.

Winston Peters' apparent distaste for Asian immigration does not extend to Singaporean jockeys, who he says are usefully "born light".
The NZ First leader believes that immigrants can be used to solve New Zealand's jockey shortage.
He has even agreed to help Vickneswaran "Victor" Marigapan's fight to stay in the country.
Mr Peters said Singaporean jockeys would not be part of his proposed cuts to immigration numbers because they filled a "known, proven niche".
"It would be obvious as well that they are born light, that's why you'll find more of them the same way," he told a group of horse trainers yesterday.
Mr Peters subsequently criticised National Party immigration spokesman Lockwood Smith for his "extraordinary" comments that Asian seasonal workers were more productive at pruning because of their smaller hands.
Mr Peters said talking about Asian jockeys being "born light" was not the same.
"I don't know what Lockwood's dribbling on about. One is picking fruit and the other is an industry where to ride a horse you've got to be under a certain weight."

Smith And Williamson Pay High Price

The Herald is reporting that John Key has been quick to act with regard to recent comments from both Lockwood Smith and Maurice Williamson. Smith has been told he won't be doing immigration and Williamson won't be doing transport. We are not surprised by the transport decision, but Smith has, we believe been treated a little bit unfairly by the media. He has worked very hard on immigration and genuinely wanted to make improvements to the system.

Here is the Herald article...

Will An OCR Cut Stop The NZ Market From Falling?

It is going to be interesting to watch, but as most seem to have factored an 100 point cut into calculations we don't think it will be enough to override concern at what has just happened in the US and Europe overnight.

We Think There Will Be An 100 Point Cut In The OCR

We don't think that Bollard will go beyond 100 as he will want to see how the market reacts to 100. He will be particularly interested to see what the banks pass on to borrowers. Less than 100 will surprise people and we don't want surprises, particularly when international markets have just dropped 4% overnight.

Which Senior New Zealand Politician Said This?

"We place our country at risk by bringing in thousands of people whose views are formed by alien cultures and rigid religious practices. If immigrants are allowed to settle here, regardless of their ability or willingness to live in harmony with us, we will create a breeding ground for conflict."

Oct 22, 2008

The Lockwood Smith Thing

We posted on the Lockwood Smith beat up earlier on today and asked readers to listen to the audio.

We did not share our view but we do now.

This is an issue that raises serious questions about the professionalism and integrity of New Zealand journalism. Lets dismiss the partisan rubbish from Trevor Mallard.

Lockwood Smith is clearly relating views that he has had passed on from growers, yet they are being portrayed as being his views. And why did Lockwood make these comments? Because he was wanting to improve a system that needs improvement for it to deliver what the benefits that were intended for the economy.

As for One News tonight - that was pretty bad.

So lets all get over this. Smith has apologised. No offence was intended. Lockwood is no anti-Asian. He has done more to further relations with Asia than most.

And once this all blows over, lets not forget that the seasonal employment programme needs some work done to it. We are on record as supporting this scheme. But we can always make it better.

Las Vegas - Update

Readers may recall that Rodney Hide asked a few questions before Parliament was dissolved.


8314 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Following her reply to Question for Written Answer 08058 (2008), did any officials or employees of Parliamentary Services accompany the Minister on the trip including the trip to Las Vegas; if they did, what was the cost?

8313 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Following her reply to Question for Written Answer 08058 (2008), did the New Zealand Embassy In Washington ask the US Government for any facilitation for Winston Peters during this travel?

8312 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Following her reply to Question for Written Answer 08058 (2008), what was the original itinerary and the full programme for the travel prepared by Ministerial offices?

8311 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Following her reply to Question for Written Answer 08058 (2008), who wrote up the itinerary supplied and on what date?

8310 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Further to her reply to Question for Written Answer 08059 (2008), who did pay for these flights; were they booked by the Parliamentary Travel Office; if they were not booked by the Parliamentary Travel Office who did book them?


8309 (2008). Rodney Hide to the Acting Minister of Foreign Affairs
Further to her reply to Question for Written Answer 08058 (2008), did the New Zealand Consul General in Los Angeles accompany Winston Peters while in Las Vegas or did the Consul General provide any facilitation for Winston Peters as he transited through Los Angeles?

All have come back with the following answer:

Rt Hon Helen Clark (Acting Minister of Foreign Affairs) replied: Parliament Dissolved. Answer not received.

This is a bit of a shame. but to help readers bear the suspense of having to wait until the next Parliament we are able to supply some new insights.

How might you ask are we able to do this?

Well in one instance we have been able to view the original reply received by Rodney Hide to some questions that were answeredin mid September. So we can answer question 8311. According to the document history the itinerary was drafted by Justin Allen on 17 September. This, in itself, is interesting given this post on the blog Roar Prawn. But it is interesting that a new itinerary was created as opposed to the original itinerary from the Ministerial visit programme being used. This will have to be investigated in due course.

We can also reveal - thanks to an OIA request - that the Department of Prime Minister and Cabinet did know about the Peters trip well before it was discussed in the media in early September. According to CEO Maarten Wevers "this Department had had minimal discussions or contact with anyone concerning this visit.

I have ascertained that the Cabinet paper in which authorisation of Mr Peters' travel overseas travel in April/May 2007 was sought and the subsequent report to Cabinet after the trip do not refer to Las Vegas (or anywhere else in America)....

When the Minister of Foreign Affairs has received approval from cabinet to travel overseas, it is usual practice for the relevant Policy Advisor in this Department to receive a copy of the MFAT cable to New Zealand Embassies and High Commissions detailing relevant overseas contact details and itinerary.......I am advised that the cable indicates that for one weekend the Minister had a private arrangement and that the flight itinerary attached to the cable indicated that the trip would include a flight from Europe to Las Vegas and then to Asia. No information on accommodation in America was included in the cable.

In relation to your comment that your request includes information in the minds of relevant officials, I can only advise that the relevant Policy Advisor recalls being made aware that Mr Peters went to Las Vegas. The Policy Advisor is unable to pinpoint the time or context in which that awareness arose." [Maybe we can help - it was probably a MFAT Division Directors' Meeting, the same one at which everyone was told not to mention the trip outside of MFAT].

Do readers really believe that on receiving this cable the NZ Embassy in Washington would not have sought facilitation for Mr Peters from the State Department on his various airport transfers in the US? And would the Consul General in LA not have facilitated the transfer in LA also? We cannot answer whether the CG went to Las Vegas. And we still can't answer the question about whether Winston was travelling solo on this trip. The answers to these questions and more will have to await the election.

New Health Scandal Rears Its Head

Maybe we have been banned from the Ministry of Health because they knew we might spot this article from the Nelson Mail. Good to know that vote Health is in such good hands and so under control.

Lockwood Smith And Small Hands

David Farrar, Roar Prawn and others are getting all excited about comments made by Lockwood Smith down in Marlborough.

Before getting too heated up we recommend you actually listen to the audio. It is available here on Stuff. Reach your own conclusions.

End To The Skills Shortage

There is an interesting article in today's Dominion Post about a rapid rise in unemployement in Wellington city. This is not necessarily bad news as there has been a skills shortage in the city so in the short term it is hoped that many recently unemployed can be snapped up.

One area where there seems to be a chronic skills shortage is health administration. So on 9 November it may not matter that senior staff in the Miinistry of Health feel that it might be a bit uncomfortable hanging around.

Of course the senior staff we are thinking of won't be reading this message as since last night The Hive has joined Homepaddock in being banned by the MOH. Maybe it was the story about Sarko??? Or was it something else......

Excellent Analysis From Fran O'Sullivan

Fran O'Sullivan is largely responsible for blowing open the looming crisis over New Zealand banks being able to access international credit lines through her article in Saturday's Herald. Today she notes that more bipartisan approach is being followed at Cullen-English level. This is welcome, but as Fran notes en even more bipartisan approach is essential to deal with the complex issues that need to be confronted urgently by New Zealand.

We suggest you read the full article. But here is a taste

National leader John Key took a calculated risk by going public on Sunday over behind-the-scenes moves to negotiate a wholesale banking guarantee.
A successful resolution to the issue is critical for offshore confidence in New Zealand banks.
Key wants negotiations to proceed with urgency to avert a deepening of the credit crunch by Christmas.
But the fact he's been working the phones to try to get a handle on the matter met with the Prime Minister's disapproval.
Helen Clark was at her lip-curling best when she dismissed a journalist's question at her post-Cabinet press conference on whether she - like Key - had been talking to the banking bosses on the issue.
"Most certainly not. I'm the Prime Minister. I'm the leader.
"I'm not the Minister of Finance. There is a distinction in roles."
There certainly is a distinction.
But you could hardly blame Key - a politician who is still odds on to get the first chance at forming a Government after the November 8 election - for seeking direct answers from the banking bosses themselves after he was blindsided by not being informed ahead of Clark's campaign launch announcement that the NZ Government was to guarantee retail deposits.

More Rifts Within The Axis

This was sent though by a senior Labour MP who thought we might enjoy it. Clearly this has been doing the rounds within Labour.

We did enjoy it very much. Most readers will also. But we doubt it will be posted on Frogblog.

Have a watch.

It is very clever.

Pollsters And Their Methodologies

Jane Clifton, in her TV column in the Domionion Post today has an interesting comment or two on the differing methodologies used by pollsters. The tv channel we don't watch, but which uses a different methodology to that another channel we do watch (ONE), seems to be the target of Clifton's comments. As for Mr Morgan - well he got good headlines last time didn't he........

Pledgegate - Hughes Puts Foot In It?

Hooton is all over the latest scandal to emerge this election. It must be a scandal as a tv station we don't watch because it practices gutter journalism apparently lead with the item last night. Apparently the PM agrees that it would not be appropriate to hand the material out close to the election, but this tv channel has footage of Darren Hughes handing it out yesterday. Oh dear. Who can you trust these days?

We suggest you follow this scandal on Hooton's blog.

We hope all those continuing to advertise on the tv channel that employs gutter journalists are enjoying their latest sales figures.....

It's About Trust

We thought that there were no going to be any new spending pledges until the election? There seem to be plenty still being announced - or are these re-announcements?

Roar Prawn has found $10 million being spent on light bulbs.

There seems to be quite a lot of new money being offered to South Auckland for pre-school education. And then the PM and Hodgson announced $25 million for a new national innovation centre in Auckland. Apparently this is going to generate $400 million in returns to the local economy - can some journalist OIA the analysis used to generate this figure please??

Not that we don't trust anyone..................

Oct 21, 2008

Axis Of Boll Weevil

The regular comentator anonymous posted this comment earlier today under the post on NZ First's adoption of a far right economic agenda.

We thought it so good that it was worth a post in its own right.

Just as the Boll Weevil (anatomical name: Anthonomus grandis) destroyed much of the trade and industry of the American south as it gnawed its way verociously through the region in the 1920s, the Axis of Boll Weevil (anatomical name: the Clark-Winston-Russel Norman/Jeanette/Jim Anderton alliance) would pretty much achieve the same thing in NZ.

Even before it comes to pass, we can see the internal conflicts on full display: one of Axis potential leaders (Winston) urging privatisation of Kiwibank while another (Jim) describing co-leader Winston as a "serial asset seller".

If we don’t have a National led Govt, NZ had better get used to this, or do what enterprising Southern Americans did - move out (North); in our case - West across the Tasman.

The only people who should rationally vote labour, Greens, Progressives or Winston (and it really does not matter which they vote for since they will all end up in the same mix) are political journalists with savings accounts in Australian dollars and children at schools studying qualifications that are recognised internationally. They will have a fascinating time reporting on the politics of such a so-called 'Government' struggling with a deeply difficult economic situation.

What Do The Greens And Maori Think Of This??

Also from NZPA and NBR

Pig-human tissue transplantation given green light
NZPA Tuesday October 21 2008 - 09:27am
Health Minister David Cunliffe has approved a clinical trial involving the transplantation of pig cells into humans.
Biotech entrepreneur Living Cell Technologies Ltd (LCT) wants to transfer cells from the pancreas of pigs to produce insulin in type-1 diabetes sufferers in a process known as xenotransplantation.
The trial would be conducted at Middlemore Hospital, in South Auckland.
Though the technology could produce significant benefits for individual patients, it is highly controversial given the potential for a pig virus to be transferred that could then became capable of spreading as an infection in people.
But Mr Cunliffe today gave the trial the green light.
He said xenotransplantation had huge potential for diabetes sufferers.
"This is critical new technology that could well make New Zealand a world leader in both the treatment of diabetes and in the use of xenotransplantation."
The trial would be done under rigorous conditions that met international best practice, he said.
Those conditions included that:
* all patient information and tissue samples involved in the trial would be housed in an archive at Middlemore Hospital;
* the trial would be overseen by an independent data safety management board;
* if LCT ceased trading in New Zealand it must transfer all patient records and tissue samples to the Health Ministry;
* any adverse events must be reported to authorities immediately;
His approval of the trial was also conditional on a favourable peer review by a leading international expert to be nominated by the ministry.
"It remains clear to me that any such trial will always carry a very low residual risk, so the key issue has always been whether this risk is sufficiently small and can be successfully managed," Mr Cunliffe said.
"I am confident that the stringent conditions I have imposed on this trial represent best practice and meet our international obligations to the World Health Organisation."
Mr Cunliffe said his decision followed consideration of a report by the National Health Committee and further advice from medicines safety agency Medsafe regarding international regulatory developments.