Over the weekend I posted some of John Key’s earlier statements on asset sales and public sector restructuring, pointing out how much his current views and approach differ from what he promised people before he became Prime Minister.
Tonight TV3 have gone one better and unearthed video footage of him speaking to the PSA Conference back in September 2008. Not only does John Key rule out asset sales, he makes a compelling case against them.
“There’ll be no asset sales in the first term of a National government, and there may never be asset sales in the years ahead… Nor am I hell-bent on selling assets actually. I personally think it’s not the issue that the current economy faces. In the world of making the boat go faster, actually I don’t think selling off state assets is going to make the boat go faster.
Labour has been arguing all along that asset sales will not make us a richer country. We’ve been consistent. John Key and the National government have done a complete u-turn and have now placed asset sales at the centre of their economic strategy.
“The Crown’s dividend streams from the Meridians, the Mighty Rivers of the world is large, so on both motivations we don’t have a debt problem, they’re acting, I think, highly effectively as companies, and they’re making money. There is no motivation to sell assets.
Once again, Key is borrowing the line that Labour has been consistently arguing for over a decade. The SOEs are highly profitable. They make more money than we would save in debt repayment costs if we sold them. Also note Key arguing we don’t have a debt problem (Bill English also made similar comments both before and after the 08 election). Interesting how after 3 years of a National government debt seems to be the biggest issue we face…
“So there’s no agenda to sell assets.
This is perhaps the most damning quote. Although Key was careful before the 2008 election to qualify his no asset sales pledge with “during the first term” he gave New Zealanders the very clear impression that he wouldn’t be selling assets long-term either.
“What we are saying is we’re not going to cut jobs, we’re simply capping at 36,000.
That commitment didn’t even last a term. Now he’s promising even more job losses during National’s second term. Nothing about that in their manifesto for 2011.
“The second point is, no we’re not borrowing for tax cuts.
So if they’re not borrowing for tax cuts, and New Zealand didn’t have a debt problem when they took office, why are they now arguing we have a major debt problem and need to sell assets to fix it?
John Key has built his political career on telling people what they want to hear. Eventually that strategy always catches up with people, and it’s catching up with Key big-time.
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I admit I have been the first the criticise Labour’s lack of economic sensibility. However, I agree this time. Labour are, in this case, 100% correct to climb into Key.
I admit Key has been economically exposed on his asset policy irrespective of the deteriation in global circumstances.
Similarly though, Key also said the Emission’s Tax Scam was an socio-economic hoax. On that point, given New Zealand’s greece-like demise, and how the impact of this scam is destroying NZ’s economy and making life hard for low and medium earners/firms, as forecasted, where does Labour stand on Key’s original view? in that the Emissions Scam was a hoax, as in 2006? And why is Labour not destroying Key on this point given the detrimentla impact of the Emissions Tax scam on business and households????
Surely Labour should be climbing into Key on the contradictions with the Emissions Scam as the are raising points that Key is raising points about debt/growth and requiring to sell assets etc etc (accordingly)??
Chris, you might have overlooked the following:
1. There was an election in 2008. Key promised no asset sales that term. He won the election. He didn’t sell any assets that term.
2. There was an election in 2011. Key promised the mixed ownership model at the last election. He won that election.
This is a new standard, are you saying that political parties can never change what they’re campaigning on from election to election despite changes in circumstances (ie, GFC)? Are you promising that your party will go to the polls in 2014 with exactly the same policy prescription you failed with last year?
Fuzzy logic selling high dividend stream assets.
Why is John Key not listening to Joe Public on Asset Sales is he a Corporate Physcopath hellbent on Political Suicide.
Just reverse the tax cuts there is $1.0 billion in additional revenue per annum.
Not to mention Eye Patch this from a Labour Party that has spent the best part of 24 years changing its policies from the glory days of 1984-89. Bit of a fail trying to argue Keys changed his mind when he’s won 2 elections on these promises. Those of us on right are still miffed he cancelled promised tax cuts.
Ihave to say I get somewhat annoyed with SOEs being portrayed as absolutely fantastic etc. they put prices up 72% in nine years. The price rises were relentless to the point now per KWH we are 30% more expensive than Aussie.
72% rise in prices and if you strip out one off gains their profits are pretty much flat, inflation adjusted, I guess a bit of market discipline might be a good thing.
“from the glory days of 1984-89″ – only described as glory days by those on the right because the economic policies were theirs. Most Labour voters decry that period of time as being an anaethma to glory days for Labour. Many would still consider Michael J Savage’s days the true glory days for labour.
I agree that he took asset sales to the voters in 2011 and he did not sell any assets between 2008 and 2011. Of note though is to challenge him on why he has changed his view either on the profitability of those assets and/or the particular assets he thought were too valuable to sell in 2008. It is a little odd to borrow 250 to 300pw and then use that as a reason to do something else because of the borrowing. He needs to explain it. Actually someone without spin from either side needs to explain it.
I don’t consider this signals a lie to the public in 2008. It’s not a great look for him BUT he will wait, as he always does on thse things for at least 16 hours before commenting so he can get the results from some spot polling and advice from Joyce on how to spin it.
Job cuts, even Eye Patch and Cactus K don’t appear to try and defend this one.
“I guess a bit of market discipline might be a good thing.”
Do you mean like the supermarkets?
Tracey where did Key ever say he wouldn’t trim administration and bureaucracy in government? You can’t have it both ways. It wasn’t a big secret that he was going to cut fat (funny, nobody is surprised or think it was a broken promise when he did). The PSA is just irate because Key’s finally laying into them, no votes for you there.
So you admit then that TV3 is doing your job for you.
Hoolian, it was TV3 NEWS. And its any news organisation worth it salt would dig up footage of the PM saying contradictory things. They have records you know!
@ghostwhowalksnz I was merely pointing out that Chris admitted that 3 News (if you want to be pendantic) “have gone one better” than the Labour Research Unit.
Its part of a wider theme where we’re seeing the meida take up the role of opposition when the real Opposition Party is so inept.
@ Cactus, how’s that ‘brighter future’ coming along?
Chris
I assume you will be calling for key to honor his tax cut pledge.
Key has won two elections by putting up his policy prior to the elections.
DO you not think being upfront is a good thing , and don’t say what Key said in 2008 trumps what he said in 2011.
I liked Shearers speech this morning.
taking a hard line on benefits is great and also hinting at performance pay for teachers will bring them into 21st century
Inverness read the “reasons”.
“In the world of making the boat go faster, actually I don’t think selling off state assets is going to make the boat go faster”
Selling off assets doesnt make the boat go faster – was that not true before it was true ?
Yawn – Can only think of 1951 again.
@al1ens – thanks for making my boiled egg spray over my netbook!
I was amongst those that thought Smile and Wave was a wolf in sheep’s clothing prior to the 2008 election. His oleaginous appearances on Neighbours at War to mediate disputes between the mentally ill and personality disordered helped build that “feel good factor”.
But the teflon is gone, and all that “negative campaigning” Labour did, suggesting that Key’s government would pursue this winning mixture of Rogernomics and Thatcherism, has been vindicated.
People are listening now, finally. So I say keep calling Key on his bs. The Right hate it and will try to lambast you for “negative campaigning”, but when it comes down to it, the electorate (and the Centre) don’t like being duped.
“taking a hard line on benefits is great and also hinting at performance pay for teachers will bring them into 21st century”
As admirable as these sentiments are, they are going to be shot to pieces by Labours acolytes and followers. ‘Beneficiary bashing’ and making teachers pay based on performance is an absolute loser strategy for a Labour Party (not that it worries me). The Unions will never countenance it. Its the equivalent of National making Unionism compulsory and increasing beneficiary levels so that working is no longer necessary. I’m not sure we know what Labours identity is any more.
Cactus, I’m on the right too, but I would never vote for the dishonest, vapid, uncreative Key. Brighter future. Still in the future?
“@al1ens – thanks for making my boiled egg spray over my netbook!”
I’m going to start doing a j.k dear diary blog soon.
Just need someone to sort out the attrocious English (Language, not Bill, though both applicable).
Just hope the new Super Ministry comes up trumps like the Super City looks like the same thing coming out of the same can just like rebranding Baked Beans.
By the way hows MOONBEAM???
Eye Patch
“footage of Mr Key promising “no job cuts” to the Public Service Association Conference back in 2008
Read more: http://www.3news.co.nz/Labour-Key-promised-no-job-cuts-asset-sales-in-2008-speech/tabid/1607/articleID/246600/Default.aspx#ixzz1pDkashvM
Now, he did cut jobs post election. IF he then said in campaign 2011 he was going to cut jobs, fine. BUT that doesn’t change the lie in 2008?
Has the Herald left this largely unreported because TV3 had an “exclusive”? I object to “exclusives” in newscasting by the way.
Tracey , its a ‘beatup’ so the rest up the media doesn’t notice, unless its labour who is being ‘beatup’ when they all pile in.
The Pm caught in a lie, then he and the MOF forecasting the opposite to each other in the housing market, Nick smith helping a friend with ACC troubles, it mounts up.
I was interested to see that C Slater didn’t publish the emails of the ACC “victim” who was helped by Ms Boag ( known well by Mr Slater??) until after the story broke?
In case you missed it
http://www.stuff.co.nz/dominion-post/comment/6596585/When-we-sold-off-Wellingtons-power
I don’t agree with many stances Sue makes but credit is due here.
The skulduggery involved moving the MED out of NZ hands by way of privatisation was deplorable as was the gravy train for capital investors at the cost to Wellington ratepayers initially and ongoing cost to users.