Green hypocrisy

State Owned Minister Tony Ryall has correctly applied the H word to the Green Party:

The Government says it’s hypocritical of the Green Party to criticise the number of ‘mum and dad’ Mighty River Power investors, when they were responsible for “frightening them off”.

State-Owned Enterprises Minister Tony Ryall is defending using ‘mum and dad investors’ in the Government’s sales pitch of the shares, despite Greens co-leader Russel Norman calling it a “con”. . .

. . . Mr Ryall responded to those claims this afternoon, saying there was a huge turnout of first time investors, or ‘mum and dads’, despite a plan by the Greens and Labour to “sabotage” it.

He says there were 77,000 first-time investors and more than 101,000 people invested less than $15,000 in the company.

“The Green Party are being hypocritical, saying not enough everyday New Zealanders bought shares, while at the same time they are doing their level best to frighten them off.” . . .

“Over 76,000 people invested less than $5,000 on Mighty River shares and they got everything they asked for,” says Mr Ryall.

“That is a huge achievement despite the economic sabotage of the Green Party and Labour during the float.”

Mr Ryall says investors who were not ‘mum and dads’ had their shares reduced due to demand.

I know several people who were planning to dip their toes into the share market by buying Mighty river Power shares who got cold feet after the LabourGreen power play.

It is indeed hypocritical for Norman to complain that not enough everyday New Zealanders bought shares when their quest for publicity and economic ignorance caused some of those who would have bought to change their minds.

MRP shares to list at $2.50

The government has announced the listing price for Mighty River Power shares:

113,000 New Zealanders will become shareholders in Mighty River Power following a successful share offer, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The final price will be $2.50 per share.

Of the shares issued, 86.5 per cent will be New Zealand owned: 26.9 per cent by New Zealand retail investors, 8.6 per cent by New Zealand institutions and with the Crown retaining a majority 51 per cent shareholding. That leaves 13.5 per cent for overseas institutions.

“This is an outstanding result and fulfils our commitment to ensuring at least 85-90 per cent New Zealand ownership of the company,” Mr English says.

“The share offer will raise $1.7 billion, which is a very good return for New Zealand taxpayers. Those proceeds will go into the Future Investment Fund, allowing the Government to control debt while continuing to invest in public assets. More details will be announced in next week’s Budget.

“The Government has achieved all of its objectives for the Mighty River Power share offer, so the company will list on Friday.

“Given the strong response to the share offer, and the price we have set, Mighty River Power will have a market capitalisation of $3.5 billion.

“And with over 110,000 New Zealand shareholders, it will have the largest share register – by some margin – of any New Zealand company on the exchange.”

Mr Ryall says that due to the strong level of demand, some scaling has been necessary.

“We have decided to apply progressive scaling, which means that larger applications are scaled more than smaller ones,” Mr Ryall says.

“That means that more than 80 per cent New Zealanders will get what they applied for.”

More details of the allocation and scaling decisions are attached.

“While most New Zealand investors will be able to work out from this announcement what their share allocation is, they will also be able to get confirmation of their individual allocation from Friday – by checking the website or calling 0800 90 30 90. We will also be emailing or writing to all applicants to confirm their allocation,” Mr Ryall says.

“The demand from institutional investors was strong, and bids from both New Zealand and offshore institutions were scaled considerably. Institutions will be advised of their allocations shortly, after which a settlement process commences.

“Mighty River Power will list on the NZX at 12.30pm this Friday.

“We are delighted to get to this stage, and look forward to a healthy aftermarket and a positive experience for New Zealand investors, particularly those who are investing in shares for the first time,” Mr Ryall says.

The price might well have been higher had it not been for the LabourGreen sabotage.

If they can cost the country millions in opposition they’ll do even more damage in government.

The NBR has the numbers:

Mighty River Power share offer – at a glance

Share Price:  $2.50
Proceeds of share offer: $1.7 billion
Total NZ ownership (incl 51% Crown):  86.5%

New Zealand retail investors
Individual New Zealand shareholders: 113,857 (provisional)
Retail investors: $943m
Proportion of shares: 26.9%
Average shareholding for New Zealand retail: $8,220
Applicants who pre-registered:  91%
Applicants without CSNs:  68%
Withdrawal after Labour/Green policy:  1,783 applicants ($25m)

New Zealand institutional investors

NZ institutions:  $300m
Proportion of shares: 8.6%

International institutions                                                                                                               
Offshore institutions: $472m
Proportion of shares: 13.5%

The 68% of applicants without a CSN are almost certainly first-time buyers. That indicates the partial float has succeeded in encouraging new investors.

Meridian unlikely to reach agreement with smelter

Meridian has announced it’s unlikely to reach an agreement with Pacific Aluminium over supply of electricity to its Bluff smelter.

. . . Chief Executive of Meridian Energy, Mark Binns, says that Meridian has advised Pacific Aluminium of its ‘bottom line’ position.

“Despite significant effort by both parties there remains a major gap between us on a number of issues, such that we believe that it is unlikely a new agreement can be reached with Pacific Aluminium,” says Mr Binns.

In the event no agreement can be reached, Meridian will seek to engage with Rio Tinto and Sumitomo Chemical Company Ltd, the shareholders of NZAS, who will ultimately decide on the future of the smelter. . . 

The smelter is a big employer in Southland but falling global prices for aluminium have put pressure on its operation.

This announcement also has implications for power prices. Without the smelter supply could well be greater than demand.

. . . news that there may be no new electricity price agreement with New Zealand Aluminium Smelters carries huge implications for the electricity sector, which has struggled to grow in the last five years and would face a massive supply over-hang which could last years, were the smelter to close.

However, that outcome is not yet certain.

The smelter’s majority owners, Anglo-Australian minerals giant Rio Tinto, are locked into the first three years of an new 18 year contract, which took effect from Jan 1, took three years to negotiate, and had been agreed in 2007.

While the New Zealand smelter makes internationally recognised high grade metal, which sells at a premium, Rio has been hit hard by its exposure to the aluminium sector, where world prices have been hit hard since the global financial crisis.

Rio Tinto is seeking to sell the smelter, along with a clutch of other, older smelters in Australasia, which it has packaged as a new subsidiary, Pacific Aluminium. . . .

If my recollection is correct the smelter was wooed to New Zealand by the price of cheap electricity.

This is an example of the dangers of such policy. It was designed with the good intentions of job creation but has skewed the electricity market.

State Services Minister Tony Ryall says all relevant information – including about the smelter electricity contract – will be reflected in the Mighty River Power offer document which is currently being finalised.

More than 400,000 pre-register for MRP shares

Around 440,000 people have pre-registered for Mighty River Power shares.

Minister of State-Owned Enterprises Tony Ryall said that the number of New Zealanders who pre-registered was extremely pleasing.

“Pre-registration is not a commitment to buy shares, and someone pre-registering their interest may decide to not apply for shares in Mighty River Power. However, it was a goal of the Government to achieve widespread awareness of the opportunity, and I believe we have achieved this.” . . .

This doesn’t mean 440,000 individuals have pre-registered.

People could register more than once by using their own names and also those of their companies; others might pre-register in the names of their children.

Not all of those who have pre-registered will support the partial sale of state assets. Some might be doing so in order to do their bit to keep the shares in New Zealand ownership.

But even so, this shows a very healthy interest in buying the shares that augurs well for the float.

Schadenfreude

Prime Minister John Key resisted the temptation to attack David Shearer for  his memory lapse:

It is “unfortunate” Labour leader David Shearer forgot to declare an offshore bank account with at least $50,000 in it since he became an MP, Prime Minister John Key says. . .

Key said the oversight was “unfortunate”, but mistakes could be made.

However, National had not had much support from Labour when that was the case in the past, he said.

“In the end he’s [Shearer] got to make peace with the New Zealand public,” Key said.

He had “tried not to” forget about investments worth $50,000, and he said Shearer’s bank account could hold quite a bit more than that.

Key had been criticised for failing to declare Tranz Rail shares. . .

Act leader John Banks was unable to resist the temptation.

Hon John Banks: Could the Minister for State Owned Enterprises tell me whether funds could be used from a secret bank account in New York to purchase shares in this initial public offering? [Interruption]

Mr SPEAKER: A legitimate question.

Hon TONY RYALL: That is a very good question, because if a New Zealander was one of the pre-registered 400,000 and they were able to get the benefits of that pre-registration in terms of their shares, they would have to pay for them. We would be unclear of whether the bank account was secret or not, but we would presume people would actually know they had a bank account.

Given the delight Labour took in criticising Banks for his memory lapse he could be excused this schadenfreude.

Leading by example

This is definitely leading by example:

It might also be called taking one for the team because protecting yourself from flu also helps reduce the spread of the illness to other people.

Health Minister Tony Ryall rolled up his sleeves at Karori Medical Centre in Wellington today to receive his annual influenza vaccination and launch the 2013 influenza immunisation campaign.

“We want more New Zealanders to be protected against this serious disease – this year the goal is to vaccinate 1.2 million people,” says Mr Ryall.

“Around 400 New Zealanders die, directly or indirectly, each year from influenza. Last year the disease put more than a thousand people in hospital and nearly 50,000 people visited their GP with influenza-like-illness.”

Mr Mark McIlroy was also at the launch today to encourage more people to be immunised. His wife, Catherine (49), had been a previously fit and healthy woman when she was struck down by the A(H3N2) influenza virus in July 2012. She died of the disease within five days of showing symptoms.

The influenza vaccine for 2013 Southern Hemisphere season includes two new strains based upon recommendations from the World Health Organization. The vaccine this year includes:

• A/California/7/2009(H1N1) pdm09-like virus
• A/Victoria/361/2011(H3N2)-like virus (new strain for 2013)
• B/Wisconsin/1/2010-like virus (new strain for 2013).

“Last year over one million New Zealanders had a flu vaccination – around 23 per cent of the population. However we want more people to be protected and I encourage you to get your flu vaccination, especially if you are in one of the at risk groups,” says Mr Ryall.

The flu vaccination is free to those at greatest risk of serious influenza complications, including New Zealanders over the age of 65, pregnant women and people with on-going health conditions such as asthma or heart problems.

People who are not eligible for the programme can purchase the vaccine from their general practitioner or selected pharmacies.

For further information go to www.fightflu.co.nz or call 0800 IMMUNE 0800 466 863.

I didn’t get round to having a vaccination last year and paid for it with a very nasty does of flu which lingered.

I’ve learned from that and have already had this year’s jab.

Selling at last

National’s policy to sell, or partially sell, a few state owned assets was forecast before the 2008 election when John Key made it clear no assets would be sold in the first term and any proposal to sell anything in the second term would be part of the election campaign.

It became a big part of the 2011 campaign, not just because national campaigned on the policy of selling minority shares in a few energy companies but even more because opposition parties campaigned so hard against the policy.

National won, the opposition lost but continued to campaign against the policy.

Like their election campaign that will get them nowhere.

The court ruling against the Maori Council’s bid to stop the sales cleared the way for the sales process and the government has lost no time in getting it under way.

Prime Minister John Key today confirmed the Government will offer the public up to 49 per cent of Mighty River Power in the second quarter of this year – subject to market conditions.

“This will begin tomorrow, with the opening of the process for investors to pre-register their interest in finding out more about the Mighty River Power share offer,” says Mr Key.

The Supreme Court last week dismissed challenges by the Māori Council and others to the Government’s sale of a minority shareholding in Mighty River Power. This follows the High Court reaching the same decision late last year.

“It means we can now proceed with offering a minority share in Mighty River Power.

“The Government’s share offer programme is an important policy. It is expected to free up $5-7 billion that we can then invest in other assets such as modern schools and hospitals, without having to borrow in volatile overseas markets,” says Mr Key.

“Under the share offer programme, New Zealanders will be at the front of the queue. They will have an opportunity to invest in big Kiwi companies at a time when they are telling us they want to diversify their savings away from property, bank deposits and finance companies.”

Cabinet today made a number of decisions about the timing and details of the Mighty River IPO.

These include:

• The Order-in-Council decision was taken to remove Mighty River Power from the SOE Act.
• A pre-registration process for New Zealand retail investors interested in finding out more about Mighty River Power shares will open tomorrow (5 March 2013) and run though until 22 March, around three weeks.
• The offer period is expected to open in mid-April and run for three weeks. The share offer document will be available at that time.
• Details of a loyalty bonus for New Zealand retail investors will be announced before the offer period starts.
• When the offer period closes, the institutional book-build takes place. Ministers then make share pricing and allocation decisions.
• We then expect that Mighty River Power will list on the sharemarket.

“My expectation is that, subject to market conditions, this process will be completed in mid-May, most likely before the Budget,” says Mr Key.

“The Mighty River Power share offer has been designed to achieve widespread New Zealand ownership. We envisage that, with the Government’s majority shareholding, total New Zealand ownership will be 85-90 per cent of the company after the share offer.

“From the Government’s perspective it makes sense to use this opportunity to reorganise the Government’s assets and redeploy capital to priority areas without having to borrow more.

“We intend to make it as easy as possible for New Zealanders to get access to information, register their interest and apply for Mighty River Power shares.”

Today Finance Minister Bill English and State Owned enterprises Minister Tony Ryall will officially launch the pre-registration period for New Zealanders who are interested in finding out more about the Mighty River Power share offer.

 . . . Mr English says the initial public offering of up to 49 per cent of the Government-owned power company is an opportunity for New Zealanders, including those who have not owned shares before, to invest in the stockmarket.

. . . Pre-registration will allow New Zealand retail investors who are interested in finding out more about Mighty River Power shares to register their interest.

“Tomorrow will also see the start of a substantial advertising and communications campaign covering television, print and online media which will raise awareness of the IPO, and tell people how to pre-register,” Mr English says.

“That campaign will include a strong investor education element for those unfamiliar with the sharemarket. We strongly recommend investors obtain their own independent financial advice”

Ministers also announced today that they expect that the share offer document will be lodged shortly after the pre-registration period ends and that there will be a three-week offer period.

At the end of that, the book-building process will take place before ministers decide on the share price and the allocation of shares. Those decisions will include how the shares will be allocated between New Zealanders and overseas shareholders.

The Government expects this process to be completed in mid-May.

The share offer had been designed to put New Zealanders first, Mr Ryall says.

“Mighty River Power will apply to be listed on the NZX main board. We expect that its primary stock exchange listing will be in New Zealand.

“We also expect it to have a secondary listing on the Australian Stock Exchange. There is nothing at all unusual about this – eight of the 10 largest New Zealand listed companies are already dual listed in Australia.

“There is a balance to be struck here. On the one hand, we have given New Zealanders an absolute commitment that Kiwis will be at the front of the queue for shares.

“On the other hand, we want to ensure there is enough tension in the share price for investors. A secondary listing in Australia will help to achieve that.

“Another point worth noting is that some Australian institutions, under their own investment mandates, would not be able to invest in Mighty River Power unless it was also listed in Australia.”

Mr Ryall says the website for pre-registration and for the share offer itself has been designed to restrict people from outside New Zealand from participating.

However, the IPO will be open to certain institutional offshore investors because that will help ensure New Zealand taxpayers get the best price for the shares being sold. Ministers expect around 85-90 per cent of shares to be held by New Zealanders after the share offer.

Other decisions confirmed today include:

• The minimum application for shares will be $1000, increasing in $100 increments.
• New Zealanders applying for up to $2000 worth of shares will not be scaled back if the IPO is over-subscribed.
• A loyalty bonus will apply for New Zealand retail investors who keep their shares for a minimum period. The terms of that bonus will be announced before the share offer opens.

I’m not purporting to be a financial advisor but I’ll be putting my money where my mouth is on this.

I think the partial sale will be good for the company, good for the country and good for all shareholders – the private ones who buy up to 49% of the shares which will be for sale and the government which will retain at least 51% of the shares.

Real referendum

Quote of the day from Tony Ryall:

“Let’s be clear about this referendum – it’s not a citizens-initiated referendum, it’s a Parliamentary-initiated referendum,” says Mr Ryall.

“It has citizens, it has overseas visitors, it has children. This was a Green Party-funded, taxpayer-funded signature collection process. The Green Party paid staff members to go out there and collect signatures.

“They’ve got to prove they’ve got the right number of signatures, there’s up to a year before the referendum happens. The real referendum on this was the 2011 general election. We campaigned on it, we made it clear and we’ve got a mandate.”

The partial sale of a few state assets was the Bogey Man with which opposition parties tried to frighten voters during the election campaign.

National was explicit about the policy, the opposition parties were explicit about their opposition.

National won, they lost. That doesn’t mean everyone who voted for National supports the policy but it does mean they weren’t so opposed to it to vote for the parties which would not have done it.

 

 

Let the sales proceed

The Supreme Court has ruled in favour of the government over the sales of Mighty River Power.

“This confirms the Government can proceed to sell up to 49 per cent of shares in Mighty River Power in the second quarter of this year, in line with legislation passed by Parliament last year,” Mr English says.

“Cabinet will next Monday consider a timetable and other details of the Mighty River offer – including how New Zealanders will be at the front of the queue for shares. We expect to be in a position to confirm those details soon afterwards.

“We are pleased to be getting on with what we were elected to do.”

Mr Ryall says the Government’s share offer programme remains on track, following the Supreme Court decision.

“The Government has always been firmly of the view that the partial sale of shares does not in any way affect the Crown’s ability to recognise rights and interests in water, or to provide redress for genuine Treaty claims.

“The Government’s partial sale of shares in state-owned enterprises is good for taxpayers because we expect to generate between $5 billion and $7 billion in proceeds which we will use to control debt.

“It is also good for New Zealand’s capital markets and it will improve the performance of the companies in the share offer programme.

“The Government will invest these proceeds in new public assets like modern schools and hospitals – and that’s money we don’t have to borrow from overseas lenders.”

Excellent.

Let the sales proceed.

Why should taxpayers face the risk?

Solid Energy’s shareholding ministers, Finance Minister Bill English and Minister for State Owned Enterprises Tony Ryall confirm the Government has been advised that Solid Energy is in discussions with its banks.

“The Solid Energy board is working with Treasury, advisors and the banks with respect to further restructuring options, with the aim of returning the company to a sustainable financial position,” Mr English says.

“World coal prices have dropped significantly which has contributed to the deteriorating financial position that Solid Energy is in now.

“These discussions are required because the position of the state-owned enterprise has continued to deteriorate despite the restructuring that has already taken place,” Mr English says.

State-owned Enterprises Minister Tony Ryall says a number of factors have weighed against the company, in particular world coal prices dropping by 40%.

 “It is facing very serious financial challenges,” Mr Ryall says. Solid Energy’s debt stands at $389 million and its interim result, which is due shortly, will show additional losses.

“The new chair and board are focusing on a return to a core coal business which is viable at current world prices. The public is aware that there had already been restructuring at the company, but more may be required,” says Mr Ryall.  

“The Government appreciates this is a very unsettling time for employees and suppliers and the company’s wider stakeholders but it is a process which must be worked through carefully and properly,” the ministers say.

Opponents of government plans to sell  a minority shareholding in a few state assets talk about what will be lost.

They don’t talk about what will be gained nor do they talk about the risk that comes with running a business which includes loss of capital.

Why should taxpayers face this risk for something that isn’t core government business?

High Court – asset sales can go ahead

The High Court has ruled in favour of the Crown in the case over water ownership taken by the Maori Council.

Not surprisingly this verdict has been welcomed by Finance Minister Bill English and State Owned Assets Minister Tony Ryall:

“The High Court decision confirms the Government can proceed to sell up to 49 per cent of shares in four state owned energy companies, in accordance with the legislation passed by Parliament earlier this year,” Mr English says.

“The Government is firmly of the view that the partial sale of shares does not in any way affect the Crown’s ability to recognise rights and interests in water, or to provide redress for genuine Treaty claims.”

Mr Ryall says the Government’s share offer programme remains on track.

“The Government remains committed to an initial public offering of Mighty River Power Shares in the first half of 2013,” he says. “If the High Court decision is appealed, we hope this can be heard as soon as possible.

“The Government’s partial sale of shares in state owned enterprises is good for taxpayers, because we expect to generate between $5 billion and $7 billion in proceeds, which we will use to control debt.

“It is also good for New Zealand’s capital markets and it will improve the performance of the companies in the share offer programme.

“The Government will invest these proceeds in new public assets like modern schools and hospitals – and that’s money we don’t have to borrow from overseas lenders.”

I suspect the motivation for the case was at least in part opposition to the partial sales of assets in general rather than just being about the issue of Maori water rights in particular.

But whatever the motivation, the case has been a waste of time and money.

Scoop has the judgement here.

Finlayson tops Herald’s ministerial rankings

Attorney General and Minister for Treaty Negotiations and Labour Chris Finlayson has number one spot in the NZ Herald’s ministerial rankings.

Audrey Young dubs him the Minister for results:

Chris Finlayson has emerged as one of John Key’s most valuable ministers in National’s second term. He has scored the highest rating of all ministers in my report card on the Executive prepared with colleagues in the Herald press gallery team. . .

Mr Finlayson is Attorney-General and Treaty Negotiations Minister. He is also Labour Minister since Kate Wilkinson resigned after the royal commission’s damning report into the Pike River disaster.

On the face of it, that may not seem a natural fit – and it may be just a temporary appointment until the next reshuffle. But Mr Finlayson’s skill set may be the right one to keep the job for the rest of the term. He gets results. He has a big intellect and has a good head for detail. But he is also emotionally intelligent, and was a good choice to send to the West Coast to discuss the report with the Pike River families.

His achievements in Treaty Negotiations are the most notable. Who would have imagined two years ago the Government concluding a deal with Tuhoe?

He doesn’t make a fuss but gets things done and the number of Treaty settlements successfully concluded is worthy of praise.

Health Minister Tony Ryall and Justice Minister Judith Collins scored highly as well. The Opposition has been able to inflict few dents on the Government in health, such is Mr Ryall’s control after four years in the portfolio. Labour has had three spokespeople over four years. . .

At the other end of the ranking was education Minister Hekia Parata.

Education is always a tough portfolio and always seems to be tougher for National ministers.

That is partly due to the strength of teacher unions which are ideologically opposed to the party regardless of the merit of its policies.

Let’s not forget that for all the bad press, the Minister has kept an unrelenting and much needed focus on improving standards, especially for that long tail of under achievers.

Then there’s the Ministry of Education which has obviously learned nothing from the debacle over school closures udner Trevor Mallard in the last Labour government’s first term .

Closing or merging schools is always going to be fraught. Doing it in Christchurch which was already dealing with so much after the earthquakes required extra sensitivity which it didn’t get.

How some of the really silly suggestions, merging Avonside and Christchurch Girls’, and Christchurch and Shirley Boys’ for example which even the minister admits was crazy,  was ever mooted, let alone presented for discussion, is difficult to understand.

And a ministry which says it didn’t gives schools information because it was too complex requires radical surgery.

The full ranking (in Cabinet order) is:

John Key – 7
Prime Minister, Tourism, SIS, GCSB

Bill English – 8
Finance

Gerry Brownlee – 7.5
Canterbury Earthquake Recovery, Transport

Steven Joyce – 7
Economic Development

Judith Collins – 8.5
Justice, ACC

Tony Ryall – 8.5
Health, State-owned Enterprises

Hekia Parata – 3
Education

Chris Finlayson – 9
Attorney General, Treaty of Waitangi Negotiations, Labour

Paula Bennett – 7
Social Development

David Carter – 8
Primary Industries, Local Government

Murray McCully – 7
Foreign Affairs

Anne Tolley – 7
Police, Corrections

Jonathan Coleman – 8
Defence, State Services

Tim Groser – 8
Trade, Climate Change issues

Phil Heatley – 5
Housing, Energy and Resources

Kate Wilkinson – 4
Conservation, Food Safety

Nathan Guy – 6
Immigration, Veteran’s Affairs, Associate Primary Industries

Craig Foss – 6
Commerce, Broadcasting

Amy Adams – 7
Environment, Communication and Information Technology

Chris Tremain – 6
Internal Affairs

Maurice Williamson – 7
Building, Customs, Land Information

Jo Goodhew – 6
Senior Citizens, Women’s Affairs

Chester Borrows – 6
Courts, Associate Justice, Associate Social Development

Simon Bridges – 7
Consumer Affairs, Associate Climate Change, Associate Transport

Finlayson tops Herald’s ministerial rankings

The Attorney General, Minister for Treaty Negotiations and now acting Minister of Labour, Chris Finlayson is number one in the NZ Herald’s ministerial rankings.

Chris Finlayson has emerged as one of John Key’s most valuable ministers in National’s second term. He has scored the highest rating of all ministers in my report card on the Executive prepared with colleagues in the Herald press gallery team. . .

Mr Finlayson is Attorney-General and Treaty Negotiations Minister. He is also Labour Minister since Kate Wilkinson resigned after the royal commission’s damning report into the Pike River disaster.

On the face of it, that may not seem a natural fit – and it may be just a temporary appointment until the next reshuffle. But Mr Finlayson’s skill set may be the right one to keep the job for the rest of the term. He gets results. He has a big intellect and has a good head for detail. But he is also emotionally intelligent, and was a good choice to send to the West Coast to discuss the report with the Pike River families.

His achievements in Treaty Negotiations are the most notable. Who would have imagined two years ago the Government concluding a deal with Tuhoe?

I think this is well deserved.  He doesn’t make a fuss but gets things done. The number of Treaty negotiations successfully concluded is in deed notable

Health Minister Tony Ryall and Justice Minister Judith Collins scored highly as well. The Opposition has been able to inflict few dents on the Government in health, such is Mr Ryall’s control after four years in the portfolio. Labour has had three spokespeople over four years. . .

At the other end of the ranking, education Minister Hekia Parata scored only 3.

The education portfolio is always a tough one. That it is tougher for National ministers in part shows the difficulty of effecting change in the face of strong unions which are ideologically opposed to the party regardless of the policy.

In spite of that and opposition from teacher unions at every step,the Minister has kept an unrelenting and sorely needed focus on improving standards, particularly for the long tail of underachievers.

Her work appears to have been handicapped at times by the Ministry of Education which seems to have learned nothing from the debacle over school closures under Trevor Mallard in the last Labour government’s first term.

School closure is always emotionally fraught. In Christchurch in the wake of earthquakes there was even more need for great care. The announcement and some really silly suggestions, such as merging Avonside and Christchurch Girls’, and Shirley and Christchurch Boys’ was, as Hekia Parata herself says crazy.

The loss of more than 9,000 pupils and earthquake damage to school property necessitated change, and major change at that, but a Ministry which handled such a sensitive issue so badly and says it didn’t give schools all the information because it was too complex needs major surgery.

The Herald’s rank (in ministerial order) is:

John Key – 7, Prime Minister, Tourism, SIS, GCSB

Bill English – 8, Finance

Gerry Brownlee – 7.5, Canterbury Earthquake Recovery, Transport

Steven Joyce – 7, Economic Development

Judith Collins – 8.5, Justice, ACC

Tony Ryall – 8.5, Health, State-owned Enterprises

Hekia Parata – 3, Education

Chris Finlayson – 9,Attorney General, Treaty of Waitangi Negotiations, Labour

Paula Bennett – 7, Social Development

David Carter – 8, Primary Industries, Local Government

Murray McCully – 7, Foreign Affairs

Anne Tolley – 7, Police, Corrections

Jonathan Coleman – 8, Defence, State Services

Tim Groser – 8, Trade, Climate Change issues

Phil Heatley – 5, Housing, Energy and Resources

Kate Wilkinson – 4, Conservation, Food Safety

Nathan Guy – 6, Immigration, Veteran’s Affairs, Associate Primary Industries

Craig Foss – 6, Commerce, Broadcasting

Amy Adams – 7, Environment, Communication and Information Technology

Chris Tremain – 6, Internal Affairs

Maurice Williamson – 7, Building, Customs, Land Information

Jo Goodhew – 6, Senior Citizens, Women’s Affairs

Chester Borrows – 6, Courts, Associate Justice, Associate Social Development

Simon Bridges – 7, Consumer Affairs, Associate Climate Change, Associate Transport

NZ only one to get it right

One of US President Barack Obama’s top financial advisors has given New Zealand a ringing endorsement for the way the National Government is handling the deepening world debt crisis,  State Owned Enterprises and Health Minister Tony Ryall said.

‘This week, in a major international BBC debate on rescuing the world economy, Peter Orszag, Obama’s Director of the Office of Management and Budget until 2010, opposed the austerity only position taken by the IMF’s Chairman Christine Lagarde, and Wolfgang Schauble, German Minister of Finance,’ Mr Ryall said.

‘Mrs Lagarde and Mr Schauble said cutting spending was difficult but necessary.  But Mr Orszag said it was better to take a mixed approach – with stimulus for the economy combined with deficit reduction that is put in place now but which takes effect over time.

‘President Obama’s former senior aide singled out New Zealand alone as the model for its balanced approach to the deepening international debt crisis,’ Mr Ryall said.

‘Mr Orszag said: … “for most countries it’s better to combine deficit reduction that you put in place now but that takes effect over time, with if anything, additional support, and that means stimulus, for the economy, effective immediately. And what’s interesting about the fiscal monitor the IMF published also as part of these meetings, is if you look across all the developed countries, there is only one country… which has actually done that, which is New Zealand- who have coupled additional stimulus with medium-term fiscal consolidation. That’s the right policy combination.”(BBC ‘World Debate – Rescuing the Global Economy – What Next?’)

‘This statement by one of President Obama’s top advisors acknowledged the balanced approach taken by the Key led Government over the last four years. The National government has borrowed to take the sharp edges off recession, at the same time maintaining strong fiscal discipline,’ said Mr Ryall.

‘Around $2 billion of borrowings over the last four years have been to protect and grow public health services.  This has contributed to the improved health services New Zealanders are seeing every day, including free doctors’ visits for children under 6, and 35,000 more patients getting elective surgery a year than four years ago.  

‘It is also important the Government completes its government share offer programme, so that we can control our debt, and build the hospitals and schools and broadband we need , but would otherwise have to borrow to complete.

In spite of what the doom merchants are saying, New Zealand is weathering tough global economic times well.

The debate is here.

Wai now?

Finance Minister Bill English and State Services Minister Tony Ryall have asked the Waitangi Tribunal for more information on its findings, recommendations and supporting reasoning in its inquiry into national fresh water and geothermal resources.

“The Government wants to consider the Tribunal’s recommendations and the reasons behind them as part of its decision on the Mighty River Power share offer this year,” they say.

“As we have said, we want to act in good faith and carefully consider the Tribunal’s recommendations.

“However, we appreciate the Tribunal’s interim direction on 30 July did not make substantive findings on any of the issues it identified. So we have today asked the Tribunal to provide its recommendations and reasoning by 24 August.

“To proceed with a Mighty River share offer in 2012, ministers would need to make decisions by the first week of September.

“We would do this on the basis of all the information available to us at that time, including the Waitangi Tribunal’s memorandum of 30 July.

“However, ministers would welcome the opportunity to consider the Tribunal’s detailed findings, its recommendations and its reasoning, which we do not have at this stage.”

Not all Maori are happy about the Maori Council’s decision to take the issue of water ownership to the Tribunal.

Trans Tasman writes:

Whatever motives the Maori Council had in taking the claim to the tribunal, the fact is the Maori Council in its own cognisance does not have any “rights” either to a global water resource, or a particular lake or river. Iwi or hapu may establish an “interest,” and there has been some push-back from iwi who believe the Maori Council claim could put their individual claims at risk.

Given this it’s easy to wonder if the Council is at least as much about delaying the asset sales as it is about claims to the water.

Otherwise why (or wai) now?

Contact Energy is a private company which uses the Clutha River and has been doing so for decades.

There are private and public water schemes the length and breadth of the country which take water for personal and commercial use, many of which have been doing so for more than 100 years.

None of these have been regarded as endangering any interest Maori might have in the rivers.

Why would the partial float of Mighty River Power be any different?

Why keep opposing what won’t be changed?

The Bill  enabling the Government to offer New Zealanders minority shares in four energy SOEs has passed its third and final reading in Parliament yesterday.

Even someone as partisan as I am wouldn’t call the 61 -60 vote an overwhelming majority. But as Colin James points out the government has a mandate to govern.

Using that mandate it has chosen to sell up to 49% of four energy companies so it doesn’t have to borrow to invest in other assets.

“This is part of the National Government’s wider economic plan to control debt and keep investing in our economy,” State Owned Enterprises Minister Tony Ryall says. . .

“We expect strong New Zealand interest.  Current international economic uncertainty may see more interest in the government share offers as local investors stay home rather than invest overseas, and as they look to invest in known infrastructure businesses such as the electricity sector.

“The National Government has been upfront about its plans to offer New Zealanders minority shareholdings in government owned businesses, as part of a wider plan to protect and grow the New Zealand economy.

“We took that clear plan to the country and New Zealanders voted for us in overwhelming numbers.

“The share offers will help to control debt, increase opportunities for New Zealanders to save, and deepen capital markets.

“And, over the next 3 to 5 years the around $6 billion in proceeds from these share offers will pay for essential new public assets like modern schools and hospitals through a new Future Investments Fund – that is $6 billion we would otherwise have had to borrow from overseas lenders and pay significant interest on. That is $6 billion off our national debt.

“We have strict ownership limits and these are now enshrined in legislation. The government will retain at least 51 per cent control and there will be a 10 per cent share cap on all other investors. We have also set a target of 85-90 per cent New Zealand ownership at the time of the offer.

The opposition still won’t like this, even though most people opposed to the partial sales would buy shares if they could.

That won’t stop them continuing to waste money on attempting to gain enough signatures to force a Citizens MPs Initiated referendum on the issue.

The motive for that, when they’ve said they wouldn’t buy the shares back if/when they’re in government, is purely political.

It’s an opportunity to get attention and they’ll continue to milk that opportunity for as long as they can.

 

 

Govt will pay family caregivers

When you have young children, finding someone to look after them is necessary if you are to have a break.

That isn’t always easy and it is even more of a challenge if the child has a disability.

We were fortunate when our son, who had a brain disorder and passed none of the developmental milestones, was alive that we had family and friends near by who were willing to look after him for us.

We were eligible for respite care which meant those sharing the care could be paid, but that generosity applied to strangers or friends, not family.

I understand the thought that baby sitting family members is what grandparents, aunts and uncles do for each other.  But there is extra responsibility and demands in caring for children with disabilities.

If they’ve multiple disabilities it gets harder as they grow physically without developing intellectually. This places more demands on the parents, increasing the need for breaks and requiring more from those who take over the care.

We never had to face the decision of putting Dan into permanent care because he died when he was five. But many other parents face that decision and some choose to keep their adult offspring at home.

That imposes costs on them, including the opportunity cost of not being able to do paid work. Adults with disabilities do receive a benefit but that is for their needs, not recompense for their parents who are caring for them.

The family members providing care do so at cost to themselves while saving public money because the people with disabilities would be eligible for full time care.

That strangers could be paid to do the same work family members undertake at their own cost was one of the motivations for taking the government to court.

It found in the families’ favour and Health Minister Tony Ryall says the government won’t appeal.

“The Government accepts the current Health Ministry policy of not paying the close family carers of adults with disabilities needs to change, and we will not be seeking leave to appeal this decision to the Supreme Court.”

“We have begun the process of reviewing the MOH policy with respect to family caregivers. We expect a new policy addressing the issues raised in this case to be substantially developed this year.

“The future policy needs to balance the interests of those who are being cared for, the families and the taxpayers. It will address the discrimination. But it must be affordable.

It must also contain safeguards for the people with disabilities to ensure that they are getting the care they need.

These are vulnerable people and while in most cases they will be loved and looked after well by families, there is the opportunity for exploitation and abuse.

Residential services for people with intellectually disabled people are independently audited and evaluated to ensure those in care get the physical, emotional and intellectually support they need.

That could be a step too far for families but if people are taking money to care for others there must be something in place to ensure the right to be paid is balanced by the responsibility to look after those in their care properly.

More funds not extra spending

‘Tis the season for pre-Budget funding announcements like those from Health Minister Tony Ryall of  $101m for surgery and cancer services and $144m for disability services.

These are not announcements of extra spending, though.

The government is committed to a zero-Budget so extra funds in one area come from savings in another.

 

For the nurses

It’s International Nurses’ Day about which Health Minister Tony Ryall says:

“Nurses are hugely valuable and are part of the backbone of our health service. There are currently just over 49,000 nurses practising in New Zealand.

The theme for International Nurses Day this year is ‘’Closing the Gap: From Evidence to Action.”

“There are many great examples of nurses identifying areas in our health service that need improvement, researching a solution and then changing the way they do things to improve health services for patients.

“For example, Sandy Bryant, a nurse at Wellington Hospital Neonatal Intensive Care Unit looked at their rates of bloodstream infections in babies, looked at the international best practice benchmarks and the unit has changed how they insert a central-line into a baby’s vein.

“Their rates are now below international benchmarks. Not only has this had significant benefit for babies and parents, the reduced infection rate also equates to around $500,000 a year in savings.

“Initiatives like this improve the quality of our services and better utilise our health resources.

District health boards are now employing 2,000 more nurses since November 2008.

Nurses usually appear well up any ranking of most-respected jobs, for very good reasons. It’s a highly skilled and demanding job – physically, emotionally and intellectually.

My mother was a nurse. Although, like most women of her generation, she stopped nursing when she married, she used nursing skills – and patience – in many ways throughout the rest of her life.

 

Website explains MOM share offers

The government has launched a website which gives the facts on share offers under the Mixed Ownership Model for state assets.

State Owned Entreprises Minister Tony Ryall said:

“The website provides information about the share offer programme including what mixed ownership means, why the Government is undertaking the programme and how a public share offer works,” Mr Ryall says.

Mr Ryall says the website content reaffirms the Government’s core share offer commitments, including:

• The Government will retain at least 51 per cent ownership of each company;
• The Government expects 85-90 per cent New Zealand ownership. This means Kiwi investors will be at the front of the queue for shares; and
• No investor will be able to own more than 10% of each company.

“With New Zealand’s debt going from $50 billion today to $72 billion in three years’ time, New Zealand needs to control debt.

“We expect to receive $5 billion to $7 billion in proceeds, which will help control debt and allow us to build new schools and hospitals.

“The programme will also reinvigorate the capital markets and bring stronger commercial disciplines to each of the mixed ownership model companies.”

The Government remains on track to proceed with the first share offer, for Mighty River Power, in the third quarter of 2012, market conditions permitting.

Under securities law, there are restrictions on what owners can say publicly about the business and their shares in advance of an offer. An exemption from some of these restrictions has been granted by the Financial Markets Authority (FMA). Such exemptions are quite common, such as the recent exemption for Fonterra, and past exemptions for the float of Contact Energy and at Auckland International Airport.

The website is here. It requires you to put the name of the nearest city to where you live and confirm you are a New Zealander before you get access.