Economic Vandals

The Labour and Greens policy in nothing short of economic vandalism. Business is reacting, and it isn’t good. With policies like these there is nothing stopping Labour and the Greens coming after you if they think you are making what they think are “super-profits”.

What is stopping Labour and the Greens from now moving to nationalise Fonterra because milk and cheese is too highly priced? What about nationalising Progressive and Foodstuffs to create a national food buying agency because fruit and vegetables are too highly priced. (They had an election policy that complained about pricing on fruit and veg), and what about banking, petrol stations? Is Telecom set to be re-nationalised because internet band-width is too expensive?

Once you go down this path there is literally nothing that you can’t just decided is making too much money and so should be brought under state control.

Meanwhile mum and dad investors are already seeing value destroyed in their investments: 

The share price of the country’s largest listed electricity generator-retailer, Contact Energy, has taken a 3 percent knock after the joint announcement by the Labour and Green parties of a radical rewind from electricity reforms of the last 25 years.

If sustained, that indicates the Labour-Green policy is the latest of a string of political decisions and commercial circumstances that can be expected to drive down the issue price of shares in the partial privatisation of Mighty River Power.

“The risk premium for investment in New Zealand would go through the roof,” says one investment banker, who declined to be named.

Business NZ isn’t happy:

Lobbyist Business New Zealand describes the proposals as “economic vandalism”, while Economic Development Minister Steven Joyce told Parliament during question time that it amounted to a “back to the 70s” policy which would lead to higher prices, power blackouts and higher costs to taxpayers.

“A state-controlled sector as envisaged by Labour would drive out private investment,” BusinessNZ head Phil O’Reilly says. “Why would the private sector invest in generators when the state can determine the prices they can charge, while subsidising state-owned competitors?

“The private sector power companies would have to seriously consider their future in the market. Those who have invested heavily would basically find their profits confiscated.”

I don’t think Labour and the Greens have thought this through.


THANK YOU for being a subscriber. Because of you Whaleoil is going from strength to strength. It is a little known fact that Whaleoil subscribers are better in bed, good looking and highly intelligent. Sometimes all at once! Please Click Here Now to subscribe to an ad-free Whaleoil.

  • coventry

    Corrected: I don’t think Labour and the Greens have a thought.

  • blokeintakapuna

    Labour & the Greens… More holes in their “brilliant economic policies” than a sieve and about as effective as a chocolate teapot…

  • With an hour and a half to go – I can predict One News and 3News at 6pm will be slobbering over this policy, running stories about the enormous benefits of voting Labour/Green, how there is universal support for the policy, and it is further proof of David and Russel being the Messiah to save NZ.

  • blokeintakapuna

    Do we still have sedition laws for Economic Treason against the State? And attempted economic sabotage?

    • NotForTurning

      Nope. Repealed by Hellen – although that repeal was supported by ACT.

      National opposed the repeal.

  • Lion_ess

    Average household savings of $230 – $330 per year? $230 – $330 per month (over winter) and I might be interested.

    • sheppy

      Keep your eyes open for how much of this mainly renewables sourced power we’re each rationed before the price goes up

    • NotForTurning

      Yeah but you’ll be paying a “Rick Prick” tax rate of 98%

    • Michael

      It’s not a saving. The cost is deferred to other parts of the country’s balance sheet.

  • Orange

    So what do you call that politically? It’s socialism sure, but is there an adjective as well, or maybe communism?

    • NotForTurning

      Communism. No question.

  • NotForTurning

    Well schools & hospitals & roads are effectively nationalised – that is effective Communist.
    Stands to reason power companies, phone companies, supermarkets, corner dairies should be nationalised too.

    • pidge

      Well, sort of. There are private schools, but there is the expectation that every child will attend school, the quid-pro-quo being that the taxpayer needs to cough up for said schooling.

      Hospitals – it’s been agreed that a basic level of health care is required, so cough up Mr., Mrs. and Ms. taxpayer.

      Roads – well, you see the stink everytime some ones to put a toll on a new road?

  • NotForTurning

    Yeah they have. The problem is they have the same thought that Karl Marx had in Manchester 200 years ago.

    • johnbronkhorst

      and ,,,marx was just as wrong then as he is NOW!!!!

  • cows4me

    Sooner or later it would have to come to this. She Beast failed but now the notice is up for all to see. A vote to the left, communism and servitude a vote for the right capitalism and freedom. I shall not be investing in power shares mine shall go to a better and well stocked armory

  • paddles83

    JK and National should call a snap Election now and put these turkeys away ASAP

    • Lion_ess

      I doubt they’ll need to call a snap election, this policy will evaporate the same way as removing gst from fruit and vegetables.

      • NotForTurning

        Yep – once they’ve lost the election?

  • BigDes

    I don’t think Labour and the Greens have thought this through.

    Or more worryingly, they intend the consequences.

  • Mr_Blobby

    Well it is true we the consumer have been ripped royally by big business. From the Australian owned banks, Australian owned duopoly of supermarkets, Our own, overseas owned, Telecon monopoly, you name it we are ripe pickings for the big multinationals.

    But look at the power price increases over the last 30 years and the 18% return on investment from these SOE’s encouraged by greedy Governments to continually increase there dividends, from both Labour and National.

  • rockape

    Now i have a 178 sq meter house, I have enough brains and enough money to have invested to make sure my power bills are low. I averaged 120$ last year per month. I feel realy sorry for the poor people that Heat their homes and their water with electricity IF YOU HAVE A HOT WATER HEATER AND STOVE AND HEAT YOUR HOUSE WITH A COUPLE OF 3KWT HEATERS .this policy is not for you, it will reduce my bill by 20%.

    • rangitoto

      Not once they pile on the ETS hike

  • I was correct – One News was very supportive.

  • Phar Lap

    The comments by the two fuckwits today tweedle dum and dee,has just cost Contact Energy ONE HUNDRED AND NINETY MILLION DOLLARS..Hows that for an Aussie commie and a cocksucker from UN.,for an afternoons financial sabotage.