Green/Labour saboteurs spooking business

It is official…the possibility of a Green/Labour government is spooking business…so much so that they are writing in protection clauses into commercial contracts with the government to protect investment.

Sky City has announced they were ‘spooked’ by Green/Labour intervention.

The Green/Labour vandalism masquerading as power policy has spooked those with capital to invest in New Zealand – after all – why would any employer spend money here if the Government is prepared to rip up the contract, confiscate their property rights and impose new regulation?

Patrick Gower reports:

[T]here’s also a significant penalty clause aimed at Labour and the Greens. The Government will, in return, pass a law change allowing more pokies and more gambling. But there’s more. The casino has negotiated itself protection from a change of government that changes the law back.

“So after we’ve spent our $400 million, if somebody decides to take those reforms away, or change that license or do something, we’ve got nothing and we’ve spent $400 million,” says SkyCity chief executive Nigel Morrison. 

So there’s a compensation clause, saying “if the Crown acts in way to change the concessions, SkyCity will be entitled to compensation”. That’s in place until 2048 – 35 years.

“We consider this to be unconstitutional,” says Green Party co-leader Metiria Turei. “It is a breach of parliamentary sovereignty to lock a government into a commercial deal for 35 years.”

The compensation is based on a proportionate formula. SkyCity gets $11.5 million for every year of contract remaining. So if gambling laws are changed in 2017, SkyCity gets $367 million. A change in 2030, the half-way point, SkyCity gets $201 million.

SkyCity clearly wants insurance against a Labour-Greens government. Mr Morrison says the Labour-Greens power policy spooked it.

“I think corporate New Zealand took a deep breath that day, quite frankly,” says Mr Morrison.

The Greens say, if in government, they will change the gambling laws and test the compo clause.

“We can and we will legislate to repeal this dirty deal,” says Ms Turei.

David Shearer now needs to clarify Labour’s position. Is he signing up to the anti-business policies of the Green taliban?

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.