Case for MOM

Joanne Black has a good case for the Mixed ownership Model for state assets (on-line here next week):

. . .  I need think only of Solid Energy’s plans to build a lignite-to-briquette plant to remind myself why ownership of these companies is better left to people who can afford to risk (that is, possibly lose) their money, than to have such investments funded by taxpayers.

I imagine most of us could think of several hundred things on which the government could more urgently and usefully spend our taxes than on finding out whether converting lignite to briquettes actually works. It might not.

that is not a reason for Solid energy to not pursue the project, but it is quite a good reason why someone other than taxpayers alone should pay for it.

Opponents of the MOM have focussed on the income that will be lost when a minority of shares are sold.

They conveniently overlook the costs, and the risks, that will be reduced when they’re shared by other investors.

15 Responses to Case for MOM

  1. Gravedodger says:

    The greatest benefit will be the exposure of the generators to the real world and the response of professional directors who will replace the political sinecure seat warmers as the MOMs proceed to grow within the economy.
    I am firmly in the Sell 100% team but will accept the compromise due to the pragmatism of having to carry those completely devoid of understanding of economic reality to ensure election success for the government.

  2. Joanna’s finally settled on the real reason for the asset sales – to facilitate massive extractive and processing industries like Solid Energy and it’s plans to turn Southland’s beautiful farmland into an open cast coal hole. The amount of greenhouse gas that’s expected to result from that project will massively swell our contribution to climate change and the devastating weather that will bring. The effects on farming everywhere are frightening to contemplate, yet here you are, cheering on stage one of this inevitable sequence.
    Very, very sad.

  3. jabba says:

    I just wish I had spare cash to buy shares but good luck to those who can .. that should include Super Funds etc that will benefit me long term.
    Good to know Southland farms are beautiful .. I guess that means pollution free so good for our Sthlnd farmers

  4. The farmland looks beautiful, that’s for sure. jabba. It’ll look less appealing when it’s in a heap beside a huge black hole. Southland’s beautiful farmland needs it’s streams, rivers and aquifers, all threatened by the de-watering that has to be done to extract the soggy lignite coal. Presently, the landscape of rolling pasture attracts tourists by the bus-load, but once the frackers move in, as plans show they will, the view will change considerably. Our green and pleasant land will be transformed, jabba, into something less bucolic and more in line with John Key’s vision for Southland, ‘the engine room of New Zealand’. Aspirational, eh!

  5. Roger says:

    Nothing from Guyton? Perhaps he thinks the taxpayer taking the commercial risk on a lignite to briquette plant in Southland is wise.

  6. Gravedodger says:

    Edit Roger “Nothing from Guyton”.
    As a percentage what is your best guess Robert as to how much of Southland will the “Black Hole” comprise.
    Maybe facts over hyperbole or as the Ginga from Aus stated hyperbowl

  7. robertguyton says:

    Quite the opposite, Roger (don’t quite follow your ‘nothing from…’ lead-in), I don’t believe for one second that the taxpayer should take any risk at all on a lignite plant in Southland. I don’t think you are up with the play here.

  8. robertguyton says:

    The Black Hole will easily be New Zealand’s biggest, should the whole lignite field be mined (and once started, why would they stop?). Huge beyond your wildest dreams, Gravedodger. Check out Solid Energy’s maps. Check out the gleam in Key’s dead-fish eye. Have a look at some of our nearest neighbour’s open cast coal mines, they’re very attractive cavities. We need those in Southland like we need a hole in … Southland. Of all regions, Southland, thanks largely to its farms, is doing very well thank you. Key’s bright idea is to dig a huge hole in it, run coal trucks across it constantly and burn the stuff to add to the already overloaded greenhouse gas load in the atmosphere. Aspirational! Lunatic!
    Got grandchildren, Gravedodger?
    “Grandad, what did you do to stop global warming? Did you speak out against those who kept mining coal when everyone knew it was the most atmospherically-destructive activity humans could do?
    Grandad?”

  9. robertguyton says:

    As to your 10:58 comment, you’ve clearly forgotten the 100% sales that National shills are presently berating Labour for…or are you compromised? You admire Labour for selling those assets…but you’re a Tory, Gravedodger! What gives? You don’t remember talk of those assets being stripped by the private sector? Failing memory, much?

  10. jabba says:

    “Of all regions, Southland, thanks largely to its farms, is doing very well thank you .. ” this is fantastic bOb. You are getting there, We need more dairy farms, as in Sthlnd, to make NZ more cash so we can spend it like a sailor on things you want. keep those ideas coming

  11. robertguyton says:

    From the corner, a flicker of something moving…but no, disappointingly, just a shadow, without substance.

  12. jabba says:

    how do I say this bOb (or Toadvive, friend of JUDGE HOLDEN!!), the shadow must be you bOb .. too clever by 1/2 aye?

  13. Gravedodger says:

    S-l-o-w-l-y R-o-b-e-r-t a-s a p-e-r-c-e-n-t-a-g-e ?

    On your question what did I do, Planted many more trees than I felled, built an efficient low energy Home for my retirement, protected waterways, created wetlands, and didn’t fly business class to the Balkans to discover stuff easily accessible on the net.

    Didn’t spend my life trying to force others to do it my way, recycled, adapted old rather than buy new, walked or stayed home, grew my own fruit and vegetables.

    Served my community as a volunteer at minimal cost to others and am eminently happy and satisfied with my lot.

    Now again just what area will the extravagantly described “Black Hole” involve as a percentage of the total land area of Southland.

    I suspect it will equal the infinitesimal proportion of the Kahurangi National Park proposed for mineral exploitation, but hyperbole is so much more effective for your argument, I was going to say debate but you don’t debate, you pick some small part of anothers point of view and create a sermon around it from the word of Robert.

    Don’t feel flattered just have a gander of what is available on the telly and it is dark outside.

    Oh and sold the V8 but for reasons of safety and comfort not some nefarious politically correct rubbish about saving the planet.

  14. robertguyton says:

    I don’t know what percentage of Southland is going to be mined for lignite, Gravedodger. Did you think that anyone might have that figure near at hand? Perhaps Don Elder might, but you can bet your bottom dollar he’s not going to tell you straight.
    I’ve a question for you, Gravedodger, and it’s a simple but revealing one: what percentage of a bath tub is the plug-hole?
    I hope I don’t have to explain the subtleties of my question to you – I know you are an intelligent man (In jabba’s case, explaining would be a waste of breath, so I hope he has someone he can consult over my ‘obscure’ question.) I was very interested to read of your history and agree that some of those things your grandchildren will likely thank you for, or at least, should be grateful for. However, if the weather is so punishing that they are finding living difficult, they might ask you the specific question; “What did you do, Grandad, to stop global warming?”
    What will you say then?
    As to hyperbole, it’s my friend and I use it generously where others use dogged adherence to …dogma. I find it inflames the likes of you and jabba and you seem to need motivating. I worry that you’ll atrophy, sat before your window, staring into the grey of Akaroa.
    Jabba, btw, challenged me to meet with him and ‘discus’; these issues, face to face. I thanked him for the opportunity, made a time and suggested a place in his territory, but he folded, feigning disgust at meeting me. Staunch! I would happily meet with you, Gravedodger, at Akaroa the next time I am there, buy you a drink and have a yarn. We’d have a great time, I reckon. We could drink to the quivering jabba and wish him speedy recovery 🙂

  15. jabba says:

    hahahahahahahahaha .. you are such a hoot bOOby, such a hoot. I don’t want to upset you but your NBFF, BIG BAD JUDGE HOLDEN, asked me out for a date (dinner) .. I’m not sure what you two get up to but leave me out of it. The day you make me quiver is the day hell freezes over and since the earth is warming, that won’t happen soon aye?

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