Haier

The Shield of Sanctimony, Ctd

I noted the story in NBR yesterday about Selwyn Pellet’s business being sold to some Americans.

Another tech company that has received millions in government grants seems set to fall into overseas ownership.

California-based, NYSE-listed Emulex has made a ÂŁ80.7 million ($NZ156) cash offer to takeover Endace, the network security company founded by entrepreneur Selwyn Pellett (who resigned from the board in 2010 and sold most of his shares at the same time).

Endace – which was born out of research at Waikato University – has received more than $11 million in direct government grants, and the move is sure to reignite debate over no-strings-attached taxpayer handouts.

How come we haven’t heard Labour coming out threatening to intervene (as they did in the Haier takeover)?

Given that business and Pellett have trousered millions in Government subsidies you’d think they’d be very vocal.

So is their silence because :

A) He is a ‘critical’ friend of Labour
or
B) It’s just the Chinese they don’t like?

Labour’s Fortress NZ policy

I’ve been catching up on the weekend political shows.

Shearer has repeated Cunliffe’s out of left field policy to give Ministers the right of veto over private business transactions, like the proposed takeover of Fisher & Paykel by Haier.

This is absolutely startling policy.

What sort of signal would this send to the rest of the world?

This is economic policy by opinion poll.

God knows what sort of impact this would have on our Free Trade Agreements, let alone the impact on householders who’ve invested money in Kiwi companies on the sharemarket.  The premium on their investment could be destroyed with the stroke of a Ministerial pen.

Of course Labour’s also promised to subsidise unprofitable jobs like those at KiwiRail and Solid Energy, while the Greens want to keep the jobs at Solid Energy but leave the coal in the ground.

These policies alone demonstrate Labour and their Green buddies are not fit to govern.

Alarming Interventionism

One of Labour’s more alarming policies has been released this week, but the MSM’s obsession with the Clown Dot Con show has largely seen it slip under the radar.

TVNZ carried a cheap shot from David Cunliffe on Monday night complaining about the potential takeover of Fisher and Paykel by Haier.

Fisher and Paykel is a private company with shareholders who’ve exercised their choice to invest, in the hope that those shares will increase in value.  If they can sell at a profit to Haier, then that is the way it works.

On Newstalk ZB Larry Williams was also curious about what Labour would actually do to stop the sale.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Cunliffe explained that Labour has a policy to give a Government Minister the discretion to kill deals they did not like.

This is bizarre and alarming policy.

In one breath Cunliffe claims Labour respects private property rights, and in the next he says a Labour Government would inject itself as the arbiter of private business transactions.

Instead of falling over themselves to suck up to Clown Dot Con, perhaps some real journalist might care to properly examine this frightening new Labour policy.