Commerce Commission

National must have a mixed ownership model deathwish

NZ Herald

So National want to have a very successful mixed ownership model for its utility companies.

In the lead up to the first utility public offering, the Commerce Commission discusses extra regulation for Chorus, the recently split from Telecom and NZX listed fibre company.

Who needs Labour running an anti-mixed ownership model campaign when a National government will happily enforce a regulatory environment that people won’t want to invest in.

No one is going to invest big dollars in NZ if we are overburdened with regulatory risk.

Telecom coughs up

Telecom is coughing up rather than suffer sanctions:

Telecom is to pay five rival telcos $31.6 million to settle a Commerce Commission investigation into alleged overcharging for broadband services rather than face the courts.

While New Zealand’s largest telecommunications company does not admit liability, the commission said in a statement the compensation paid to Vodafone, Orcon, CallPlus, Compass and Airnet “returned its commercial gain” from failing to provide the same priced access to a new broadband service as it gave itself.

The investigation stemmed from complaints in April last year, eight months after Telecom launched a new “sub-loop extension service” (SLES) which allowed rivals to offer voice services from their own equipment, housed in Telecom exchanges, and offer fast broadband from Telecom’s network of newly installed roadside cabinets – part of its own roll-out of fibre-optic cable.

Telecom is obliged under formal Operational Separation Undertakings to offer competitors access to services on an equal footing in order to ensure retail competition.

I wonder if this will be passed on to customers? Fat chance of that I guess.

Spinning like tops

Labour: Stop Breaking the LawI see that Grant Robertson and Trevor Mallard are trying desperately to spin that the VRWC has helped them get more signs printed.  This is now a concerted campaign to run this line because they’ve been caught with their pants down.

So Labour have broken road safety rules with campaign but they are also in breach of several other laws and by-laws as well.

Despite their brave attempts in the face of utter destruction of their vaunted campaign, I must also point out to Labour - that no matter how many of these illegal signs they print – they cannot erect them - even if they’re not beside a road.

Why?

Because most councils have a rule about erecting ‘Vote’ hoardings more than a couple of months out from an election.  The Bay of Plenty is the only council in New Zealand that allows ‘Vote’ hoardings outside of an election period.

So Labour can print as many signs as they like – putting aside the fact that they are ‘illegal’ from a traffic safety point of view – they also can’t be erected anywhere by any of the gullible turkeys who are paying for them.

This is an epic fail as my 14 year old son would say.  Apart from breaking the road rules – they’re also breaking electoral rules.

Then there is the Securities aspect of this case. David Farrar points out that they are essentially running their own Ponzi scheme.

Desperately trying to continue to raise money by getting people to “invest” in an illegal product certainly has all the hallmarks of a ponzi scheme. Perhaps the Securities Commission would investigate the ponzi aspects of the case.

Meanwhile there is a little job for the the Commerce Commission with a clear breach of the Consumer Guarantees Act which states in Section seven:

7 Meaning of acceptable quality

  • (1) For the purposes of section 6, goods are of acceptable quality if they are as—

(a) fit for all the purposes for which goods of the type in question are commonly supplied

These signs are definitely not fit for the purpose they are sold under. They can’t display them near a road and they can’t display them outside an election period, there actually doesn’t seem to be anything they can do with them and so they are unfit for any purpose and in breach of the Consumer Guarantees Act.

Labour seem to be going for the slam dunk and trying to break as many laws as possible with their ill-conceived sign campaign. But wait there’s more as the old infomercials used to say.

Readers may also ecall the huge song and dance Labour made about National supposedly investing in billboards outside the regulated period during the ’05 campaign to avoid the expenditure coming under the spending cap?

This was one of the spurious reasons Labour quoted for imposing the odious and anti-democratic Electoral Finance Act.

This ‘Stop’ campaign makes them total hypocrites as well as law breakers.

I sincerely hope that when a non-English speaking tourist has an accident because of the bogus ’Stop’ signs – that Labour is prosectuted.  For Labour’s sake I hope the accident isn’t a fatality.

The hide of the prick!

Bridgecorp boss seeks performance bonus | BUSINESS | NEWS | tvnz.co.nz
Rod Petricevic should be banged up in prison for his bonus not seeking almost $600,000!
The prick is seeking his bonus for the financial year that ended two days before Bridgecorp tanked.

Petricevic was paid a salary and bonus package worth $1.2 million before the company collapsed. The receivers say he also used company money to pay a $600,000 tax bill and they are fighting his claim for a final bonus worth $550,000.
The performance bonuses paid to Petricevic were part of a Bridgecorp incentive scheme designed to reward executives for “superior” performance.

I’d love to see what inferior performance looks like!

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