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ISSN 1172-4153 | Volume 2 | Issue 29 |
| 13 March 2009
Govt wrong on crisis – Sir Roger Wellington, March 13 – The ACT Party’s annual conference opened in Auckland tonight with a message from its founder Sir Roger Douglas – the Government’s strategy for dealing with the recession isn’t going to work. “Pretending we can avoid the pain of economic contraction may make us feel better in the short term, but pretence will add to the pain we feel when the inevitable adjustment occurs,” he said in a speech to delegates. “Borrowing beyond our means, to increase the amount of spending, is what households have done over the past 10 years, and has led to our current recession. “Now the Government wants to try the exact same strategy to get us out of the recession.” Sir Roger said New Zealand’s economy had been shrinking since the beginning of 2008 because of failed government policies. “We have been moving in the wrong direction – we’ve moved from a government geared towards growing our wealth to a government geared towards redistributing it,”he said. “This pushed us into a recession and now the financial crisis will hurt us further.” Sir Roger had a list of lessons on how to handle the recession. Among them were: • Don’t blame the free market. If a company fails it is because consumers do not want to buy its products. • Reverse the trend towards low productivity growth by making the labour market more flexible. • Making work does not make people wealthy.The proposed cycleway will divert people from productive work to less productive work. “That is a recipe for poverty, not prosperity.” • Lower taxes across the board to encourage people to work more. • Aim high for prosperity. Beat Australia by 2020, achieve sustainable economic growth of 5 percent a year. • Don’t protect the public sector, it should carry the cost as much as the private sector. Prime Minister John Key will get the chance to defend the Government’s policies when he speaks at the conference tomorrow. ACT leader Rodney Hide will speak in the afternoon and the conference winds up in the evening.
on the
INSIDE
NZPA/David Rowland
SPEAKER MISLED?
Vince Siemer case Page 2
DEATH METAL Music behind shootings Page 8
GHOST BANKS Dead men walking Page 16
– NZPA
SOE heads told: Lift your game Wellington, March 13 – The Government has summoned the heads of State-owned enterprises to an April 9 meeting, where they will be told to raise their game. “We are keen to talk to them to make sure they are contributing to the economy in an efficient way,”StateOwned Enterprises Minister Simon Power told NZPA. “In the six months to the end of December 2008 we have seen the net profit after tax across those portfolios reduce by 50 percent. “That is a matter that a shareholder of any com-
mercial enterprise would be concerned to discuss.” Mr Power said SOEs made up a significant part of the Crown’s balance sheet, representing a taxpayer investment of just under $24 billion. Opposition parties today called on State-owned power companies to use their profits to help consumers with their winter power bills, citing results announced by Genesis and Meridian. Asked whether the Government was prepared to accept lower dividends from the energy SOEs, Mr Power said the prices they charged was up to them.
“The net profit after tax across all four of the energy companies is actually a loss of $50 million in that six-month period compared with a $260 million net profit after tax in the six months to December 2007,”he said. Labour’s energy spokesman, Charles Chauvel, said the minister’s letter to SOE chairs calling them to a meeting on April 9 in Finance Minister Bill English’s office stated that the purpose was to discuss measures to improve their financial performance. “This is code for SOEs charging higher prices to
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the public,”he said. “There is fundamentally one way that energy SOEs can contribute higher dividends to the Government – by charging higher prices.” Progressive Party leader JimAnderton said the power company profits should be returned to consumers. “Mighty River Power recorded a profit of $235 million in the last six months of last year,”he said. “That on its own is enough for every household in New Zealand to get a cheque for nearly $200.” – NZPA