When Kraft, parent company of Mondelez, staged a hostile takeover of Cadbury in 2009, it was not interested in Cadbury’s factories. Factories are two a penny. What it was after was the brand, and with it the markets. Where the products were made was irrelevant.
The enterprising and innovative CEO’s of the big multinationals have got it all worked out. Maximum profits for minimum effort. Why bother to create and establish a market for your own brand of product? You can use your investors’ money to buy an established company that has done all the hard work, keep the brands you want and eliminate the competition in one foul swoop by closing down their plants. Continue reading
As John Campbell left the building after the last episode of Campbell Live he asked the question, “Do we value journalism and do we need to pay for it?” Continue reading
KiwiRail has turned another net loss; this time $248 million. No surprises there. The government has poured in about $1 billion of taxpayers money since 2010. That is a lot of money and there are lessons that need to be learnt before we pour in another $1 billion. Continue reading
The government has told us repeatedly it can’t intervene in decisions of private companies or even State Owned Enterprises. It said it couldn’t possibly direct KiwiRail to build its rolling stock at Hillside Workshops, even though KiwiRail is actually owned by the government and hundreds of jobs were lost. It says it certainly can’t ensure that aged care workers receive a living wage, even though the government pays the full cost of service provision and has to top up the low wages with the likes of accommodation supplements and working for families tax credits.
However it appears that the government can intervene to make sure Chorus shareholders don’t miss out on any dividends. It is considering simply overruling the Commerce Commission decision that found Chorus was overpricing its copper wire network and consumers were paying too much for the internet services. Continue reading
“Kiwi made” obviously means nothing to KiwiRail. The State Owned Enterprise’s latest tendering decision is to outsource the manufacture of its railway couplers, used to connect rolling stock. This will see the Dunedin workers who formerly made them reduced to a four day working week and facing a tenuous future.
The Alliance Party believes local procurement is essential for any government service or local body to provide employment and training opportunities and to ensure money spent goes back to local communities. Continue reading
The Alliance Party is amused and, quite frankly, confused, to hear John Key repeatedly refer to a possible Labour/Greens coalition as a “far left” government in the media these days.
Key bases his assessment on their new power policy which would see a government provider buying all the power from generators. However Key should ponder the fact that the state owned all aspects of power generation and the distribution of electricity right up until 1999. And no one ever described the Holyoake and Muldoon led National governments of this era as “far left” because electricity was state owned.
Not that being a “left wing” party is a bad thing. For the majority of New Zealanders, having a genuine “left wing” coalition government would be very good indeed. Continue reading
The Alliance Party is pleased that Labour Party leader David Shearer has pledged to reduce the price of electricity if elected next year, and looks forward to details about how this will be achieved. Continue reading
Solid Energy is going down the gurgler, NZ Post is trying to get out of delivering mail, KiwiRail is closing railway lines and ordering all its new stock from offshore, and Mighty River Power is throwing money at exploration work in Chile – $250 million to date and growing – desperate to find a viable geothermal field to exploit Chileans facing power price hikes because of drought conditions.
What do all these entities have in common? They’re all State Owned Enterprises working against the best interests of New Zealand. Continue reading
Prime Minister John Key says that the sale of our electricity companies is on again. Good news for the wealthy few Mums and Dads with enough spare money to invest, bad news for the rest of us. Ever-increasing power price hikes are all most families have to look forward to. Continue reading
Kevin Campbell, Alliance Party co-leader
More New Zealanders will go cold if the National Government is allowed to sell shares in our power companies.
Providing New Zealanders with affordable and reliable electricity would be secondary to providing shareholders with the maximum return on their investment. The asset sales plans have understandably met with massive opposition from New Zealanders.
Now these plans have been delayed, and are looking even more shaky and shonky.
This is the time to make sure that asset sales, including our power companies, are stopped for good. Continue reading