India Sells Off Its Coal-Fields Too Cheaply Be Warning NZ Asset Sale

On The Folly Of Selling Public Assets

Warning To National PM John Key, in case he has not read current research on the folly of selling public assets:

Many New Zealand politicians are against the sale of New Zealand State-Owned Assets:  New Zealand Greens Co-Leaders Russel Norman and Metiria Turei, and Sue Moroney,  NZ Labour Party MP’ for the Waikato region, are among those who  are decidedly against the idea of selling off our state-owned assets.

There is much evidence around to show that selling off public assets leaves a country more poor in the long run, after the rush of the initial injection of cash has worn off.  Selling off our power stations, for instance, will result in power increases for all of us, and the government, which currently benefits from the revenue generated by these power stations, will see that on-going income completely dry up to nothing.

India has sold off 142 of its coal-flields since 2004, which has resulted in an unbelievable loss of money  for India.

The estimated loss of revenue and/or of having sold off its coal fields too cheaply, is estimated to be around 1.7 TRILLION RUPEES.  Over one and a half trillion rupees have been lost since 2004, when the rush to sell off coal-fields  in India began.

The current exchange rate in Mumbai is 55.7 Rupees to the Dollar.  Roughly 100 Rupees make up a British Pound.   So – 1,7000,0000,0000  Rupees would look like:  170,0000,0000 British Pounds. Which is still a lot of money.

The idea of selling off public assets to make a quick buck is one which the New Zealand Prime Minister, John Key, is very fond of.  Selling off New Zealand-owned public assets to private enterprise, including to overseas investors, has been at the top of his agenda since the election.  Mr Key, regardless of the fact that the majority of New Zealanders DO NOT WANT THEIR assets sold, is  ploughing on with his plan to sell our assets off.  He seems to believe that these are his own personal property while he is in the position of power, being the prime minister.   His arrogance will spell disaster for New Zealand in the years to come , if he is allowed to proceed with this ‘fiscally irresponsible’ plan, to quote Russel Norman’s expression.

The only people who will benefit from selling off our assets will be the investors, people like John Key, who have made their money through banking and investments, and who know a bargain when they see one.  But these assets are irreplaceable.  They have taken years of building up.  We all have family and friends who have worked in these places.

New Zealand taxes, and hard labour over many years, have built up our power stations.  No monetary figure can be put on the value of these huge power plants .  They are irreplaceable, and priceless.

We have had many protests against these proposed asset sales in New Zealand this past year.  Luckily, the Maori people have managed to halt the sale of ‘Mighty River Power’ in the meantime, until the results of an inquiry come out on the question of water ownership.  ‘Mighty River Power’ was scheduled to be sold, according to John Key’s book, by September 2012.  Let’s hope that he gets thrown out of power before any such sale goes through, and that all his plans for asset sales can be reversed.

Giving the Maori people more ‘ownership’ over water, or any of our assets, is not going to be a solution in the long run.  Giving Maori more rights than common Pakeha/European people will not ensure the safety of these assets, or the water, any more than these assets have had under the custody of John Key.   There is nothing to stop any Maori iwi from selling off any assets to make a profit once they have secured the ownership of an investment.

And this is why all New Zealand public assets should not be sold, but should remain as state-owned assets which we can all benefit from.

Unfortunately, the Crafar Farms have already been ‘hocked off’ to Chinese investors, with Maori iwi all set to buy back three or more of the farms.  This sale should never have been approved, especially when a consortium of New Zealand farmers, led by Sir Micael Fay, were all set to buy them.  Michael Fay’s group would have kept the Crafar Farms in NZ ownership.  Keeping our NZ state-owned assets as they are, and keeping our land in NZ ownership, is always going to be the best thing for New Zealand.





Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s