Word of the day

09/04/2012

Delassation – fatigue, tiredness.


9/10

09/04/2012

9/10 in the Herald’s politics quiz.


If you don’t want a decision . . .

09/04/2012

. . .  form a committee.

That might be a bit harsh, committees have a place and some do make decisions, and good ones at that.

Alas  that can’t be said of all committees and all decisions and this could explain why:

 “Part of the motivation for the committee is a kind of cowardice, a fear of taking responsibility. If people take a decision alone they are responsible for the outcome, as they should be. Fearful that the result of that decision may be challenged they seek refuge in the imprimatur of a meeting. This spreads any blame.” Gordon McLauchlan


Oh for some science on Crafar farms sale

09/04/2012

When the Prime Minister announced the mental health package last week his chief science advisor Sir Peter Gluckman explained how it had been based on science.

If only a similar process could be applied to foreign ownership of land, in particular the sale of the Crafar farms.

In yesterday’s Q&A interview by Shane Taurima of Land Corp chair Jim Sutton tried to give the facts but Russel Norman mostly used emotion.

RUSSEL         Well, we certainly don’t need this foreign investment. I mean, all it’s doing in this case is driving up the price of rural land, because they’re paying a very large price for it in order to pay off an Australian owned bank who are the ones who are exposed because they leant too much money to Crafar.

The banks will get their money before anyone else. Those who miss out will be the unsecured creditors, most if not all of which, will be small, locally owned businesses. Each day the sale is delayed the costs increase, eating in to what will be left for creditors.

So we don’t need this money.

No? It’s better for us to have more foreign debt than equity?

This farm was going to be developed one way or another. It would be producing food one way or another. The key thing for New Zealand is we have this tremendously valuable strategic asset, which is arable land with access to water, food-producing land. That food-producing land will only become more important as time passes, and for us to hang on to that strategic asset is critical to our economic future.

It’s not one farm but many. If they’re not developed by a foreign owner they might be developed by a local one, or ones, but there will be no oversight of that nor recourse if they’re not. And if the development is undertaken it will be funded by borrowing from foreign lenders.

SHANE           Mr Sutton, New Zealand First leader Winston Peters, he says that if the deal goes ahead, it will mean Landcorp will end up paying about $18 million a year to the landowner. In other words, he says a New Zealand SOE will end up being a tenant of a foreign company here in New Zealand. Is that true?

JIM                 No, that is not true, and I think what is important to realise is we as a sovereign nation are perfectly entitled to make rules for foreign people wishing to buy farmland in New Zealand, and if we want to do that and have more restrictive rules than we have got, let’s do it, let’s make it clear what they are, and let’s apply them without fear or favour to everybody who comes from overseas and wants to buy a farm in New Zealand.

Exactly, we should make the rules and apply them fairly.

SHANE           Can I just clarify – so Landcorp won’t be paying any rent at all?  

JIM                 No, we won’t be paying rent. We’ll be a share-farmer. A share-milker. SHANE           Mr Norman?  

RUSSEL         Clearly, what a share-milker does is they hand over a proportion of the production to the owner of the land in lieu of rent. It’s a kind of rent. So without mixing words, clearly they’ll be paying rent. They’ll be a tenant in the land, which is effectively what a share-milker does.

By Norman’s reasoning, the land owner is paying rent for the cows, machinery, animal health products and other inputs the share-milker funds.

SHANE           Mr Norman, don’t you have to be careful that you’re not encouraging an anti-Chinese feeling? After all, we’ve had a number of other nationalities buy land without the same reaction. Don’t you have to be careful?

RUSSEL         Yeah, I think that’s a fair comment. Um, the Greens have had a very consistent approach. I mean, we think that New Zealand land should stay in New Zealand ownership, um, and we don’t care the nationality of the person applying – whether they’re Australian, American or European or Chinese.

Just a teeny bit of irony when this is said in an Australian accent.

JIM  . . .  If I were Chinese looking at this and wondering whether New Zealand really had its heart in building the economic partnership with China, I would wonder why Canadians, Americans, Italians, Germans, Australians, Brits, can come into parts of New Zealand, buy farm after farm after farm after farm and nobody in Wellington blinks an eyelid. But when the first Chinese…

RUSSEL         The Greens do.  

JIM                 …company comes along for this, all of a sudden it becomes a threat to our sovereignty, and I just think,‘How would I feel about that if I were Chinese?’ And I know what I would feel about it. 

We know how the Chinese feel about it from another Q&A interview with David Mahon, managing director of Mahon China Investment Management who has lived in China for 25 years.

SHANE      Do we run the risk of having that reputation being tarnished if the deal doesn’t go through?  

DAVID       We do. Certainly this would be something that not just in China, but throughout Asia with our major trading partners and these sizeable economies – India, Indonesia – would look upon this as being New Zealand as a narrow country after all, that New Zealand actually is racist in terms of its view of who it would like to be its business partners, which I think would be a sad misreading of New Zealand, because I don’t believe that New Zealand is actually racist. I think that this particular Crafar deal has triggered some unfortunate debate in lesser media, and I think it has become politically useful to some in New Zealand, given the fact that, um, you know, we have a very dynamic democracy. And so, in a sense, the real issues, I think, have been lost. But if this doesn’t go through, New Zealand will have a lot of repairing to do across Asia and certainly in China.

There wasn’t a whisper when a controlling interest in Turners and Growers was sold to a German company, even though it owns the iconic ENZA brand.

There was some, but not nearly as much, murmuring about land sales to people from Germany and the United States. But there has been much more about this particular deal and it appears to be not just because the buyers are foreign but because they are Chinese.

I wrote last month about our visit to farms owned by a Swedish family which showed the good it can do.

If we shut the door completely on foreign ownership, we will be the poorer for it.

The rules on foreign ownership were tightened recently. If there is a need for further tightening, let them be tightened but base any change on sound reasoning not emotion and definitely not on xenophobia.


Landcorp’s profit up but still poor return on assets

09/04/2012

Landcorp reports a net operating profit of  $11.0 million for the first half of the financial year to the end of December.

This is up from $3.2 million in the corresponding period of 2010/11 due to strong growth in revenues, particularly on the sale of livestock. The latest half years aw total farm product revenues rise to $104.0 million (2010/11: $91.6 million). Livestock revenue was up 27.0 per cent to $46.3 million, reflecting higher prices for meat and for store animals, and also higher livestock numbers. Dairy revenue improved 2.5 per cent to $53.0 million on growth in milk volume during the latest half year.

The company expects a net operating profit for the year of $20 million and to pay a $15 million dividend.

These are impressive numbers until you factor in assets valued at $1,754,207,000.


April 9 in history

09/04/2012

32 Jesus Christ ascended into Jerusalem on the first Palm Sunday.

193 Septimius Severus was proclaimed Roman Emperor by the army in Illyricum.

475 Byzantine Emperor Basiliscus issued a circular letter (Enkyklikon) to the bishops of his empire, supporting the Monophysite christological position.

1241  Battle of Liegnitz: Mongol forces defeated the Polish and German armies.

1413  Henry V was crowned King of England.

1440 Christopher of Bavaria was appointed King of Denmark.

1682 Robert Cavelier de La Salle discovered the mouth of the Mississippi River, claimed it for France and namesdit Louisiana.

1860 The oldest audible sound recording of a human voice was made.

1865 American Civil War: Robert E. Lee surrendered the Army of Northern Virginia (26,765 troops) to Ulysses S. Grant at Appomattox Courthouse, Virginia, effectively ending the war.

1865 Birth of Charles Proteus Steinmetz, German-American mathematician and electrical engineer (d. 1923).

1867 Chris Watson, third Prime Minister of Australia, was born (d. 1941).

1867  Alaska purchase: Passing by a single vote, the United States Senate ratified a treaty with Russia for the purchase of Alaska.

1898 Paul Robeson, American singer and activist, was born  (d. 1976).

1909 The U.S. Congress passed the Payne-Aldrich Tariff Act.

1916  World War I: The Battle of Verdun – German forces launched their third offensive of the battle.

1917 World War I: The Battle of Arras  started with Canadian Corps executing a massive assault on Vimy Ridge.

1918 World War I: The Battle of the Lys – the Portuguese Expeditionary Corps was crushed by the German forces during the Spring Offensive on the Belgian region of Flanders.

1926 Hugh Hefner, American entrepreneur and publisher, was born.

1932 Unemployed workers in Dunedin reacted angrily to the refusal of the Hospital Board to offer assistance, protesters stoned the mayor’s relief depot and tried to storm the Hospital Board’s offices, before being dispersed by police batons.

Unemployed disturbances in Dunedin

1934 Bill Birch, New Zealand politician, was born.

1937 The Kamikaze arrived at Croydon Airport – the first Japanese-built aircraft to fly to Europe.

1939 Marian Anderson sang at the Lincoln Memorial, after being denied the right to sing at the Daughters of the American Revolution’s Constitution Hall.

1940 World War II: Germany invadesd Denmark and Norway.

1942 World War II: The Battle of Bataan/Bataan Death March – United States forces surrendered on the Bataan Peninsula. The Japanese Navy launched an air raid on Trincomalee; Royal Navy aircraft carrier HMS Hermes and Royal Australian Navy Destroyer HMAS Vampire were sunk off the island’s east coast.

1945 World War II: The German pocket battleship Admiral Scheer was sunk.

1945 – World War II: The Battle of Königsberg, in East Prussia, ended.

1945 – The United States Atomic Energy Commission was formed.

1947 The Glazier-Higgins-Woodward tornadoes killed 181 and injured970 in Texas, Oklahoma, and Kansas.

1947 – The Journey of Reconciliation, the first interracial Freedom Ride  started through the upper South in violation of Jim Crow laws. The riders wanted enforcement of the United States Supreme Court’s 1946 Irene Morgan decision that banned racial segregation in interstate travel.

1948 Jorge Eliécer Gaitán’s assassination provoked a violent riot (El Bogotazo) in Bogotá, and a further ten years of violence in Colombia known as La violencia.

1948 – Massacre at Deir Yassin.

1952 Hugo Ballivian’s government was overthrown by the Bolivian National Revolution, starting a period of agrarian reform, universal suffrage and the nationalisation of tin mines.

1957 The Suez Canal in Egypt was cleared and opened to shipping.

1959 Mercury program: NASA announced the selection of the United States’ first seven astronauts,-  the “Mercury Seven“.

1965 Astrodome opened and the first indoor baseball game was played.

1967 The first Boeing 737 (a 100 series) made its maiden flight.

1968 Martin Luther King Jr’s funeral.

1969 – Paula Bennett, National Party Cabinet Minsiter and Waitakere MP, was born.

1969 The “Chicago Eight” pled not guilty to federal charges of conspiracy to incite a riot at the 1968 Democratic National Convention in Chicago, Illinois.

1969 The first British-built Concorde 002 makes its maiden flight from Filton to RAF Fairford.

1975 The first game of the Philippine Basketball Association, the second oldest professional basketball league in the world.

1978  Rachel Stevens, English singer (S Club), was born.

1989  The April 9 tragedy in Tbilisi, Georgian SSR an anti-Soviet peaceful demonstration and hunger strikes, demanding restoration of Georgian independence was dispersed by the Soviet army, resulting in 20 deaths and hundreds of injuries.

1991 Georgia declared its independence from the Soviet Union.

1992 A U.S. Federal Court found former Panamanian dictator Manuel Noriega guilty of drug and racketeering charges. He was sentenced to 30 years in prison.

1992 John Major‘s Conservative Party won an unprecedented fourth general election victory.

1999  Ibrahim Baré Maïnassara, President of Niger, was assassinated.

2002 The funeral of Queen Elizabeth, the Queen Mother at Westminster Abbey.

2003 2003 invasion of Iraq: Baghdad fell to American forces.

2005 Charles, Prince of Wales married Camilla Parker Bowles.

Sourced from NZ History Online & Wikipedia


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