Angry about State Asset Sales? Mr. Slippery will be so happy

Barely a day goes by without more people beginning to realise that the New Zealand Prime Minister, Mr. Slippery is as sly as they come. Promised not to raise GST. Back tracked on that. Guaranteed to reverse the anti-smacking law. Never quite got around to that (and almost supports it now.) He voted against the civil unions bill but has again confused everyone by claiming he isn't against gay marriage. Now though, a proposal more unpopular, more controversial and certainly more ridiculous has been passed, allowing the Government to sell state assets to bogon buyers overseas for ridiculously cheap prices. Using the world partial sales to disguise it all as minor desperation for raising capital, there in fact is nothing partial about the percentages being talked about. Mighty River Power, company number one up for sale shall have up to 49% of its company share sold. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10815746. Many other high earning enterprises are going to be sold too, which does nothing more than create temporary capital. New Zealanders against these Asset Sales aren't oblivious to what is happening like Mr Slippery would have you believe. They simply want the Government, who are there to serve them (just to remind them because they're quick to forget) and who they voted in to maintain control of these Assets rather than have some overseas investor snap them all up for a bargain, most likely by the Chinese Government.

John "Sly" Key then crawls out his fox hole and is audacious enough to profess that the income generated from these Asset sales will be used to buy more Assets. http://tvnz.co.nz/politics-news/key-confident-asset-sales-law-passed-week-4944424
Is he telling the truth here? Maybe but unlikely. Only, what Assets are there left to buy if one is getting rid of their best assets to cover up the fact their gambling problem in the current account has gone on far too long. He reaffirms his reason by comparing the State Asset sales with the anti-smacking Bill (which has been addressed in an earlier post). Both are very undemocratic moves by the current National government, who continue to scoff at their voters as soppy incompetent sheep whom they must herd, in much the same way as the Lousy Labour Government before them. At the very least Labour knows State Asset sales aren't the solution, short term or long term.

Only time can determine how much money the Economy shall cry out from this deal. New Zealand investors, as shrewd as they may be ultimately won't be able to match the offers foreign Chinese and American investors make on ownership of these companies. No kiwi citizen wants a large proportion of their tax funded enterprises in the hands of foreign owners, even if it's alleged "partial ownership." Enough damage to be done already and despite the huge level of dissent about these sales among the public and in Parliament (remember the Bill passed 61 for 60 against in Parliament), Mr. Slippery remains rigid that those against it are ill informed about it. He think people will warm to it like they allegedly have with the anti-smacking bill (which he secretly admires). But people won't. State Asset Sales were met with disdain when David Lange's fourth Labour government did it and nothing suggests it'll be different this time either.

Ultimately Mr. Slippery can let off hot air all he likes about the benefits these sales will do. It will allow debts to be paid off temporarily; expect it to plateau within months. And expect New Zealand to still be in debt by the time National gets the old heave ho out of Government. They're certainly doing themselves any favors by not being democratic about it.