Mike Hosking tears apart David Cunliffe’s nationalisation plans:
So what is David Cunliffe saying when he talks of buying back the assets National is about to sell?
Is he going to nationalise them, force people to sell their shares?
Places like Venezuela do that, people like Hugo Chavez. Is that all part of Cunliffe’s plan to reinvent his party? Or is he just expecting those who bought shares to sell them back, and at what price would they be sold back at?
The market price, and given chances are reasonably high that the market price is going to be higher than when the shares are sold given the sale will be a successful one and there will be more people wanting to invest than there are shares, just where is it the new Labour government will be getting the money from to buy them back?
And if you’re buying back assets, why not buy them all back? What’s so special about a couple of power companies? And given Air New Zealand has been on the market for years, why didn’t they buy them back when they were last in office?
And that, in a nutshell, is why A: You don’t want Cunliffe running the Labour Party, and B: Why the Labour Party is in the sort of trouble they are.
Economically, they’re a dog’s breakfast. Economically, they haven’t got the faintest idea about money.
It’s all about the headline, no idea about how it’s going to work.
Ouch, invoking Chavez to talk about Cunliffe.
Labour is more than entitled to be against the float, but dipping their toe into the world of fantasy economics and threatening to buy them back with money they don’t have, is a very stark reminder of just how dangerous a government can be when people who haven’t got the faintest idea of basic economics get their hands on the purse strings, and operate the budget using other people’s money based on political dogma and not simple maths.
Says it all really.