Rod Oram has got it right again
OPINION: JULY 19, 2010, must become a pivotal date in our history. We must mark it as the moment we finally realised we had to radically change the way we do business.
If we don’t, we will continue to limp along happy with the crumbs our current businesses throw off.
We’ll remain incapable of baking tomorrow’s bread. We won’t stand a hope in hell of building a prosperous, resilient economy.
Two deals this past Monday made it such a day of infamy. First Bright, China’s third-largest dairy company, said it was paying $82 million for 51% of the downstream processing and marketing operations of Synlait, one of our most ambitious dairy companies.
Then Olam, a Singapore company, said it was making a full bid for New Zealand Farming Systems Uruguay. It picked up PGG Wrightson’s 11.5% stake for $15.5m, taking its holding in NZFSU to 29.95%.
The deals showed once again that we are incapable of growing sophisticated international companies of scale and lasting economic value. The handful we already have, such as Fonterra and Fletcher Building, are legacies of earlier eras.
and
The simple truth is that this economy is tiny. So to prosper, we have to earn the bulk of our living in the international economy. We can export but there are limits to how much we can produce and ship from here or how many markets we can serve from here. So, we also need to invest in operations overseas.
But we’re bad at both, as the New Zealand Institute has shown with its Internationalisation Index. For each OECD country, it analysed exports and foreign direct investment as a percentage of GDP in 1990 and their gains by 2005. The more a country grew those two income streams, the more engaged it became with the international economy. It turns out we were the only OECD member to come up with a negative number. Our share of world trade and foreign direct investment had fallen.
Problem is that we have no appetite for the – probable , possible extreme measures necssary to get NZ back to a decent International Standard, our complacency may well be our undoing.
We do need to look closely at what countries like Singapore have achieved, yes their version of Democracy is nothing like ours and their society is quite authoritarian, but the locals seem happy with this…
I’m watching Breakfast, is China going to own our bleepin schools now?
I want a free country! 
!
Under which Government was the sale of Wellingtons Electricity Transmission line business allowed to be sold?
Thats right Spud, Labour allowed the Wellington power lines to be sold.
How do you feel about that?
Two points David – one don’t treat this site like a chat room, but secondly try not to be so backward looking that you head risks disappearing up orifice – you are trolling and are hereby warned. Trevor
I don’t know the reasons behind the decision.
David, typical backwards looking ****-stirrer, we are talking about our collective futures here, even if you are a Tory have the decency to look forwards and be part of the solution.
There is no way that we can afford the services and facilities that New Zealanders deserve without becoming a wealthy nation.
So when exactly are we all – the NZ public – going to get tired enough of cost-cutting and corner-cutting to do something ‘radical’ (well, radical for NZ, many other advanced countries already have the right mind set) and formulate a forward looking understanding of our rightful place in the economic world. People have to figure out that “tax cuts” and “trickle down” are such lame concepts for improving the wealth of the country that the capital rich elite have had to push for less sick leave provisions and right to fire laws to try and maintain the illusion that they know how to grow NZ business.
High value added products and services produced and sold throughout the world by New Zealand owned companies. That is the way to go – IMO.
Four iPhones sell for the same price as a tonne of milk powder. 1kg of silicon rock sells for $4, 1kg of high performance computer processors made from that silicon rock sells for $40,000.
Figure it out.
So you want a free country Spud, but as long as Labour are selling stuff off to the Chinese you don’t mind as long as they keep you in the dark as to why?
The Governmetn of Nz appears through the National party to have access to unlimited funds. They are borrowing $250M a week. Thus why cannot this borrowing be used to go into partnerships with business. Why did the government not buy into Synlait and NZ Farming system Uruguay?
These businesses then would have had direct access to the skills and knowledge of Trade and Enterprise as well as access to experts through a whole of government approach.
This would put into practice some of the means to solving the problems of capitalism as outlined in Economics for Everyone by Jim Stanford.
But then this borrowing by this NACT is for the benefit only of the owners of business via tax cuts.
Once again waste and destruction through greed and power!!
So Vivienne, are you advocating state interference in private companies? With the current trend by both parties to sell off SOEs, I can’t see your ideology working.
State interference for political gain I should have added.
Simon – you must be kidding. Are you advocating for Chinese state interference in NZ private companies?
I can’t see your ideology working for the benefit of NZ’ers.
(Oh, see what I did there?)
Loota, these are private companies. If you want a say in how they’re run either legislate or become a shareholder.
Simon, you may have noticed how countries we are urged to copy (eg Singapore, Taiwan) have govt “interference” – that’s why they’ve got successful economies. The idea that the market will solve all problems died in 2008 or didn’t you notice?
No, actually I haven’t noticed. What do you think!! Singapore is not a ‘free’ country in the same way we are so why copy? Trouble is, state interference and social engineering doesn’t work either.
Fact is – Trev is quite right – and he is leaving his comment open ended … the matter is far from decided and people are going to have to make up their minds.
Do we value sovereignty – or do we want to become a colony of a greater power with more money and more populace than us??
The free marketeers rushing to open us up to the world and its purchasing power – always when the doodoo hits the fan – revert to intervention and economic/social engineering .. mainly because it seems to work if managed properly for the good of the people.
Simon , such muddled thinking.
The free market is constantly interferring in peoples lives. Check out 90 sack and not explain. Business is the driver.
Business and free markets ensure that the loot goes to the capitalists. I am not anti capitalism but the current neoliberal form certainly does not meet the fundamental rights of all peoples on the planet to have a resonable quality of life.
Now that we understand this about neoliberalism we should get going and create means for all to benefit. By all, I mean people +environment+ economy throughout NZ
and the planet
And NZ retaining our economic sovereignty.
Also do not forget that NZ was built through Public Works. Remember back into the golden age when we owned everything in our land and had high wages and little unemployment and some of us even got paid to go to university!
Yes, the time before the neoliberal freemarket rip off!!!
Vivienne -never a truer word spoken. Public Works were pioneered by Sir Julius Vogel – first Jewish premier of NZ … a great man – even though there were flaws in his thinking. And yes – so many of the neo-liberal wolves in fascist clothing actually had their education heavily funded by the taxpayer of NZ.
Globalism is a crock – it always was. Each man and woman under his own vine or fig tree … is better – each nation with its sovereignty intact and operating as a check and balance against the power of the larger states.
The freemarket does meddle in peoples lives – and in such a punitive fashion too. But its now the middle class that is hurting – and that is going to cost NACT dearly next year.
Simon hasn’t recognised that his free market dogma is a well recognised failure. You are OK with strategic Chinese Govt interference in our private companies and our Key (lol) industries then? Answer the question, mate, don’t dodge it.
Private companies are nothing so special to kowtow too. They play their role in the economy to help the country. But corporate interests do not superceed the interests of New Zealand citizens, get it?
We now become an outpost of china and any other major power … a playground for vested ethnic interests as it were … and all the rest of us kiwis will be forelock tugging servants of the new regime.
Loota – according to Key and ACT … corporate interests are much better than average citizens interests .. after all we just want to live … they want to make bigger profits and so on and so on … the trickle down theory is their ‘out’ … much like being peed on through a blanket. They say that the better they do – the better the underclass do (which now includes the middle class).
Dont you love that Ad on TV for (i think) 4X4 Advertisment where the little boy says to his dad (on the track up to their coromandel bach in their 4X4) “Dad – jimmy so and so says his bach is better than ours cos its closer to the beach” and the enterprising high income NACT voting dad dreams up the idea of installing a flying fox to an anchored diving platform off the idyllic northland bay/beach …. all to let junior have ‘one up’ on little jimmy and his equally well heeled well jobbed daddy …
Excuse me while i am being sick …
It isnt really a joke when you really really think about it all …. soon jimmy will be “chowyunfat” from howick – and junior will be “usama bin yarden” from whereever – and we wont be kiwis anymore.
We are a bunch of underpaid bellhops and taxi drivers now … waiting to beg for a fare from the rich…. perhaps
See – for the moneyed – many of the NACT devotees – they know they will survive as part of the favoured white anglo saxon localised poltiburo for the new colonisers. They will be okay. They are insulated from the ups and downs and pitfalls of average folk. They will be the favoured Gwai Lo.
Its like a form of long, slow Eugenics practices … like the ‘death of a thousand cuts’. You see – some ethnic commenters on here connected with Ray Huo are quite right … we are (all real Kiwis) like “Frogs in a Well” … as many of them have said.
Some of them might like to switch their votes to NACT – because many labourites are catching on very fast.
Or to put it in kiwi vernacular … for the NACT poohbahs it will be “Im alright Jack” and “the peasants are revolting”
What will they care if their lifestyle remains intact – they dont care about kiwi culture and values when they have the money to import the fantasy to their own lives and remain insulated.
in all honesty – after forcing myself (and my gagging instinct to remain under control) to watch “the nation (yeah right) hosted by Duncan deleted offensive Trevor Garner and “Q and A (deleted offensive Trevor) – im convinced we have a media that is as much a ‘tired old tart” as our political landscape now looks.
Its almost like these overpaid media hacks are sitting there on-camera thumbing their noses at the rest of us … nyah nyah nyah – i’ve got a cool salary and travel all over the world …. and i support the Governments policies even though im meant to be impartial ….
And at the end of Q and A – the bloodhounds voice comes on … “funded by the platinum fund of NZ on air”
Now let me see – so we the taxpayer are paying for the bloodhound to defecate all over our sensibilities ever Sunday? and be partisan to certain viewpoints?
I wonder …
Nothing like a bit of class warfare aye unionman, has anyone told you the war is over?
Loota, you seem genuinely to believe – that free-marketeers are obsessed with economic data to the exclusion of all else. But I have yet to meet a conservative who thinks that you get more happiness from a bank account than from, say, listening to Beethoven, or walking in the Southern Alps or watching your child take his first steps. The argument isn’t about what makes people happy, it’s about what governments can do about it – And I think we may agree on that final key (lol) point?
Governments can’t legislate to make us listen to Beethoven or enjoy the landscape or spend more time with our children. What governments can do is to provide a framework in which happiness can be pursued. Why would I WANT Chinese state interference in private companies? Are you able to back up your argument that they WILL interfere with the running of Synlait or Fonterra and in what manner? Saying that, communist intervention may achieve your aims, mate, one where decisions on what to produce and what policies to pursue are made in the best interests of the collective society.
Capitalism, love it or hate it, is the most moral economic system yet devised. It lets people become rich to the extent that they provide a service for others. That’s not to say that capitalism is perfect, far from it, simply that every alternative system leaves people poorer and less free.
Before the abuse starts, I am not a Nat or ACT voter so don’t start.
@U nion ma n I was disappointed by the two Q & A s where Holmes kept talking over the workers lady, and the tone of voice he used on her was disrespectful
The bias was painfully obvious, as a viewer I expect to be able to hear both sides of an argument not see debate shut down 
Simon (says) – the class war has only just begun – i think you mean ‘eh’ – ‘aye’ is usually pronouced ‘ai” or like the letter “i” … but then i dont keep up with textspeak. Its all a matter of affordability …. the woman holding down 3 jobs doesnt have the time to not only listen to beethoven – but also sometimes lacks the time to spend any time with their kids.
Conservatives get happiness from their ability to afford – to not have to be distracted from the more erudite pleasures of life (like just keeping heads above water).
Capitalism failed decades ago – the most unfortunate thing is that China has proved it – with a centrally planned economy of low wages etc – but with an open window to allow them to make the most of our freemarketeering lemming behaviour. And we fall for it every time.
Do you know that many people cant listen to beethoven (because they dont know who he is or was) and many many of them cant actually afford to stroll through or near the southern alps. They are too busy trying to keep their asses off the floor and living.
Just a thought.
Spud – i was horrified to see what the bloodhound did to the CTU representative – we havent seen the end of the story yet.
No, the class war has never been over, its actually continued in silent forms waged from the top down. Those waging the war deny it exists to minimise resistance. There are three distinct classes affected by the war now:
1) The asset rich i.e. those with significant net capital on hand. Bear in mind, you can be earning $150K a year and still be in debt to your eyeballs with negative net worth, those people are still a slave to this class. The goal of this class is to acquire ever increasing amounts of society’s financial capital for themselves.
2) Those wannabe’s who wish to joint the asset rich.
3) Everyone else who is trying to make ends meet day to day, and perhaps build up a tiny bit of net worth in a basic home. The labour of this class generally goes to building the capital of the already asset wealthy who work to minimise the cost of that labour (90 day right to fire, reduction of sick leave and working conditions, etc – sound familiar).
GUFFAW
Sorry mate did you see those guys at Goldman Sachs speculating on derivatives of basic food stuffs, making hundreds of millions for themselves while pricing food out of reach of a quarter billion people?
So what service was provided to whom?
Figure out your idea of morality – capital should be used to serve the people mate not the other way around. Get it right.
I love simon says too
I write aye, even though I know it’s spelt eh, it just looks better to me. 
So true about the poor people not being able to afford the pleasures of this country
@2.23 – grrrr
‘…But corporate interests do not superceed the interests of New Zealand citizens, get it?’ – Instead of flogging this argument again on this site, what your proposal Loota and that of Labour to stop those rotten foreigners coming over here and stealing OUR companies? Would you like legislation passed to prevent say, majority ownership? Personally I don’t think that’s a bad idea.
So Trevor, is Labour looking at banning foreign ownership of NZ? Because unless foreign ownership is banned all businesses will end up being foreign owned.
You missed the Rest Loota ‘…..simply that every alternative system leaves people poorer and less free.’
So, wealth redistribution is the way to go then?
Simon Says – if you are PRO legislation to prevent foreign majority ownership (and remember that the Chinese folk own 51% of synlei – which to me is majority or at least highly influential ownership) then you have my vote.
The Chinese just bought Synlait so they’re already interfering.
Actually, it’s the most immoral as it steals from everyone to give to the few. As I learned a long time ago – the only way to become rich is to have a lot of people working for you.
Capitalism is legalised theft.
China isn’t communist – it’s state capitalist.
Simon,
Go and read Economics For Everyone by Jim Stanford. Then you may be on the pathway to understanding. It is written in a readily readable form that all literate people can understand.
You can borrow it from your local library at no charge (socialism). Or purchase form a bookshop (capitalism). I hope you will find a bookshop owned and operated by a New Zealand company so the profit will stay in the country (economic sovereignty).
Mixed economy! Capitalism plays its part and socialism plays its part. End result is social democracy or high investment sustainable economy.
Spud – i dont think its only the poor who cant afford to enjoy their own country – its the middle class. Many high incomers are now officially living on credit – and one day the merry go round is going to stop. In fact i think that ‘one day’ is coming sooner than anyone thinks.
The emperor DOESNT have new clothes (contrary to the Keys/deleted offensive Trevor /Hide propaganda) – he was butt naked then – and he is equally butt naked now. Are we going to rely on that captivating personality Collins to keep building new prisons to solve our problems?
Do i hear anyone say “Aye”
Draco @ 2.36 pm no and nonsense – asking the question about whether value is being added by particular foreign investments is not promoting a ban, and maybe you can think about our savings systems before saying bans are the only approach.
China not only isnt communist … it isnt socialist – neither was the soviet union. Thats what isnt understood by the NACT sycophants and toadies and historical revisionists.
Closest thing to true socialism was Yugoslavia – and latterly, Cuba (Viva Che!)
Note i use the word “closest” …. very deliberately ….. and yes – Ernesto Che Guevara is a hero of mine …
unionman have put you into moderation until you learn not to be offensive see above Trevor
Simon said:
What are you talking about mate, wealth redistribution has been happening in NZ in full flight (and full sight) for the last 25 years!!!
Do the names Faye and Richwhite mean anything to you? Taking assets paid for and built up by by working class men and women, and then making a personal mint out of it, selling it offshore?
Indeed wealth redistribution has been happening alright, why do you think a smaller and smaller number of NZ’ers own a larger and larger share of the country’s wealth.
Loota – why else would fay and richwhite no longer live in NZ any more??
Reminds me of the story of Humpty Dumpty and BMW bonnets and restaurant carparks. All in the aid of building up the interest of capital.
Our wealth was redistributed a long time ago …. now we need to rebuild – not redistribute
‘Actually, it’s the most immoral as it steals from everyone to give to the few. As I learned a long time ago – the only way to become rich is to have a lot of people working for you.’
Again, …simply that every alternative system leaves people poorer and less free.
Were libraries socialist idea? Really? I thought they were around a long time before that mode of thinking. Thanks for the tip Vivienne and I will read it. Hope it doesn’t go down the champagne socialism route many people subscribe to these days.
I suggest you read Man’s Rights, by Ayn Rand, just for some balance.
You know exactly what I meant Loota, nice one of turning the table though.
No, I don’t get it. The wealth of the world is not like a finite sized cake to be divided up in equal portions. Wealth is created by making something useful or providing a needed service to others or creating a need. It has nothing to do with money. Money is just a token to represent how much wealth you have been responsible for creating.
Unless government is involved, rich people are rich because they’ve generated more wealth. Either they created the wealth, or were given it by someone else that created it (parents etc). If we eliminated all rich people everyone would be poorer, not better off.
It is only when governments get involved that people who do not generate wealth get wealthy. It’s only with the threat of force that people who generate wealth have that wealth taken and given to others who do not. I’m not just talking about welfare either. It can equally apply to rich bankers being bailed out or preferential contracts being awarded to people with special interests in the government. It’s only ever with government help that the underserving get rich. And socialists want to give all the power to governments?
Strange folk.
Simon how did Goldman Sachs ‘generate wealth’ by starving a quarter of a billion people?
I don’t think the world works the way you think it does.
Yeah I see what you wrote (my emphasis there), I guess then that’s how Goldman made money by starving the poor. (Manipulating the prices of derivatives based on basic food crops).
Quite right mate, in the old days only the elite in the Church and the Royal Court had access to libraries. But here we are talking about libraries for the every-person which is a socialist idea.
So much BS so little time.
Needless to say wealth transfer from the working class to the elite asset rich is in operation in full flight, and many a Govt has been ideologically co-opted into actively help them in this endeavour.
‘So much BS so little time.’ – well clearly you and I have a lot of time. My statement you highlighted has a lot of merit Loota.
Our generation, more than any in the past, has elevated the moralistic (voicing the right opinions) over the moral (doing the right thing). You might work tirelessly for charity, you might be honest, generous, kind and hospitable, but it counts for nothing if you don’t – for example – disapprove of multi-national corporations. The unquestioning view of the left, that everyone else is just plain wrong or evil. Or both.
Righto, i’m off. Some house DIY required.
‘Needless to say wealth transfer from the working class to the elite asset rich is in operation in full flight, and many a Govt has been ideologically co-opted into actively help them in this endeavour.’ – Including Labour.
Glad to see you now agree that wealth transfer has indeed been occurring, Simon: away from workers to those who control the capital and hold significant net assets.
“Are we going to rely on that captivating personality Collins to keep building new prisons to solve our problems?” LOL
So, what you’re saying is that our elected politicians are all involved in some form of conspiracy to create an underclass?
@Unionman ‘China not only isnt communist … it isnt socialist – neither was the soviet union.’
The term communism was coined by Marx to describe the final epoch of human society, Lenin later stole the term to terminologically seperate his party from western socialists after his reigime came under criticism from them. The word has two meanings 1. stateless society 2. society with an all powerful state. So no wonder people get so confused over these kinds of words.
The USSR was socialist absolutely it was, it had some of the best education and medical care of it’s time, it improoved working conditions and raised employment built houses and made the costs of living affordable, and did pretty much all the things you would consider socialist.
The way we identify communism today is this goal of socialism with the totalitarian method. At least that’s how I described it in my history essay last year, I got a Merit for it. And to the socialist club I ran at my school for 2 years and my students accepted it as clearing up some of the messiest terminology in politics.
Che Guevara is one of the most amazing characters in human history. But I think theres no need for our socialist heroes to go down in a hail of bullets. I think New Zealand’s history has prooved that there is a parlimentary road to socialism. The leaders of the liberal party for example in the 1890s managed to bring about all sorts of socialists changes, they gave land to the people, improoved working conditions in alot of areas, started public works schemes and started state mining and housing, started compulsory and free education and public health care and all sort’s of things all with a hands-on approach of state intervention. They managed to do these things without a bloody revolution or creating something like the red terror.
I think New Zealand had socialism about right until recently, somewhere down the road we’ve lost our way.
@ Trevor:
If our wealth is less than that of other countries/corporations (which it is) then when our businesses go up for sale they will be bought out by those foreigners. By selling those businesses into foreign ownership the wealth produced goes overseas reducing our ability to save to be able to buy or start up new businesses which makes it even more likely that when those businesses are put up for sale that they will be sold overseas.
Yes, our present savings is atrocious – foreign ownership is making it worse. So, ban foreign ownership to close that loss to our economy and then work on getting our savings up.
Yes- we urgently need to stop foreign ownership. We are completely doomed if we don’t. Good old Key- smiles and waves as he sells us down the river- and the New Zealand public loves him as he does the dirty on them. Shame on him- he and his ilk just disgust me. Even countries like Algeria have the sense to protect their land- check out http://www.farmlandgrab.org to see the international perspective. We are so badly served by our politicians.