As cash cows go, Landcorp has had $2.25 million more in capital injections from taxpayers than it returned to them in dividends since 2007.
Source: data released by the New Zealand Treasury under the Official Information Act.
Those $1.5 billion in assets in Landcorp do not appear to be worth a cent in net cash to the long-suffering taxpayer.
Source: data released by the New Zealand Treasury under the Official Information Act.
Landcorp is a state-owned enterprise of the New Zealand government. Its core business is pastoral farming including dairy, sheep, beef and deer. In January 2012, Landcorp managed 137 properties carrying 1.5 million stock units on 376,156 hectares of land.
What gave Amnesty International its strength, appeal and political credibility was most could agree with its opposition to the imprisonment of prisoners of conscience and to torture and that political prisoners should be put on trial.
Including child poverty as part of its most recent international annual report proves Robert Conquest’s 3rd law of politics: the behaviour of any bureaucratic organization can best be understood by assuming that it is controlled by a secret cabal of its enemies
Amnesty International should not be giving people reasons not to join. It should stick to its original mission, which most people support. An NGO with members from across the political spectrum has much more credibility and influence.
Green MP Gareth Hughes today nailed the case as to why governments should never run businesses. Too many MPs simply do not understand what dividends represent and what the profits from asset sales represent.
Data out today shows the asset sales so far have cost $1 billion. https://t.co/HeDndEjINg – double blow for Kiwis facing rising power bills
Hughes was reported today saying that taxpayers lost nearly $1 billion in dividends since the recent privatisations of power companies. He is the Green party spokesman on state owned enterprises.
Does the Green Party understand that an asset sells for a price equal to its risk-adjusted discounted net present value of the stream of dividends. When you sell a financial asset, you cash out the net present value of the stream of dividends that might have come from those assets.
The Greens, who are prissy about government transparency and dishonesty of their opponents, did not mention the $4.7 billion in revenue from the asset sale. Taxpayers now receiving more in dividends as a part owner of the privatised power companies than they did as a full owner.
Hughes had the cheek to complain about the politicisation of those privatisations such as favourable terms for small share buyers. That inability of governments to even sell an asset competently is a strong reason why governments should never run businesses in the first place.
If an asset cannot be sold in the full light of day – a major issue in an election campaign and a referendum – without the sale price that is politicised, what is the chance of good management of any state-owned enterprise when it is not the central focus of opposition scrutiny?
It is been many years since dividends from the state-owned enterprise portfolio has been a net positive cash flow for the taxpayer, as the chart below shows.
Source: New Zealand Treasury – data released under the Official Information Act.
KiwiRail and Solid Energy gobbled up whatever dividends came out of the power companies. Aside from power companies, state-owned enterprises not really offer much in the way of dividends to the taxpayer as the chart again shows.
Fascinating. Yawning chasm between why Labour members think they lost and why voters think they did. From @thetimeshttp://t.co/MvhZYI2CTr— Joe Watts (@JoeWatts_) July 23, 2015
Left-wingers do whinge about voters not understanding; about how if only the voters understood better their arguments than they do now. The Left thinks voters just keep getting it wrong.
The evidence—most notably, the results of the 1996 Survey of Americans and Economists on the Economy—shows that the general public’s views on economics not only are different from those of professional economists but are less accurate, and in predictable ways.
The public really does generally hold, for starters, that prices are not governed by supply and demand, that protectionism helps the economy, that saving labour is a bad idea, and that living standards are falling.
Politicians mindful of re-election must pander to these four biases.
Fortunately, for the New Zealand Labour Party and the Green Party of Aotearoa New Zealand, voters have no rational reason to correct these four biases. Voters are rationally irrational. As each individual counts so little, why spend any time correcting biased political beliefs?
Anti-market bias: The tendency to underestimate the benefits of the market mechanism. The typical voter equates market phenomena such as profitability and interest as examples of unbridled monetary confiscations by ‘greedy’ businesses. This biased against the market, despite all its successes, is a rich field to till for both Labour and the Greens
Anti-foreign bias: The tendency to underestimate the economic benefits of interaction with foreigners. This antagonism towards such trends as outsourcing employment overseas, or selling raw materials to faraway traders, is reminiscent of the mercantilism Adam Smith so brilliantly demolished but it still lives on today in the hearts of the voting citizenry. Labour and the Greens play to that bias shamelessly.
Make-work bias: The tendency to underestimate the economic benefits from conserving labour. Those who look to the visible face of job losses overlook the job gains (often by those who lost their jobs) to be made tomorrow in emerging industries. The Greens and Labour are sure-fire enemies of creative destruction.
Pessimistic bias: The tendency to overestimate the severity of economic problems, and to underestimate the recent past, present and future performance of the economy. In The Progress Paradox (2003), Gregg Easterbrook ridicules abundance denial:
Our forebears, who worked and sacrificed tirelessly in the hopes their descendants would someday be free, comfortable, healthy, and educated, might be dismayed to observe how acidly we deny we now are these things.
Many average voters seem to feel that Malthus was correct in diagnosing the allegedly poor prospects for the market economy.
CLASSIC VIDEO: Margaret Thatcher on Socialism in 1990 to the House of Commons https://t.co/iB5O3ejoaC
Where would the voting base of the Greens be without a pessimism bias? They are professional pessimists and doomsday prophets from their earliest days. Labour assumes working class Tories are dupes of what is left of fading media barons such as Rupert Murdoch.
Rodney Hide found that one in four New Zealand police chases ends in a crash. Of the 137 police pursuits that ended in death or serious injury between 2003 and 2008 there are 9 violence charges. Six were for manslaughter – all caused by crashes that ended the chase. There was also one charge of murder relating to the crash at the end of the chase. No violence charges arose from information known at the time of the start of the police chase. There was ambiguous information about a charge of kidnapping after a police chase. I could not determine if this kidnapping was known at the time the police chase started and therefore was its motive.
Source: Rodney Hide, “Pursuit culture skews police priorities”, National Business Review, 19 February 2016, p.28.
In all, 13 of the 137 police chases were motivated by the fleeing driver having committed a crime. The most serious of these was burglary. Rodney Hide also found that between 2005 and 2008 there are an average of 182 police chases a month.
I am all for police chasing kidnappers and armed criminals brandishing their weapons. As for the rest, they are not serious offenders. Chasing them puts the public at risk. Most of the fleeing drivers and their passengers are enthusiastic applicants for the Darwin awards.
Mandatory and voluntary private social expenditure makes a big difference to the degree of social insurance in some countries but not others. The calculation of these numbers in purchasing power parity would be much more interesting.
Some welfare states are much more targeted. Australia has the most targeted welfare state in terms of public social benefits paid in cash to the bottom quintile (Q1) of income earners.
Why Evolution is True is a blog written by Jerry Coyne, centered on evolution and biology but also dealing with diverse topics like politics, culture, and cats.
In Hume’s spirit, I will attempt to serve as an ambassador from my world of economics, and help in “finding topics of conversation fit for the entertainment of rational creatures.”
“We do not believe any group of men adequate enough or wise enough to operate without scrutiny or without criticism. We know that the only way to avoid error is to detect it, that the only way to detect it is to be free to inquire. We know that in secrecy error undetected will flourish and subvert”. - J Robert Oppenheimer.
Utopia, you are standing in it! 
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