If government’s the answer you’re asking wrong question

13/01/2009

Adam Smith at Inquiring Mind has a series of posts bringing letters to the editors of various publication to the notice of the blogosphere.

From a Parallel Universe # 15  is from the  Waikato Times – 10 January

Time to resign?

After this week’s news regarding Fonterra is this another litany of lies?

I believe it is time for John Key to intervene in the interests of New Zealand (as Helen Clark would have already, I believe). Henry van der Heyden and Andrew Ferrier should resign before the whole New Zealand economy goes down the drain.

JOHAN MARINUS DE WIT
Hamilton

Adam initially thought it was black humour but then decided the writer was serious.

I hope his initial reaction was right but I too fear it isn’t and Adam provides various acts of foolishness by the previous administration which might incline people to believe government intervention in private businesses is normal.

But the writer is not only politically misguided, he’s also worrying unnecessarily about Fonterra.

The Sanlu investment was a disaster and the management and directors may still have questions to answer over that; and the milk payout, already well down on last season’s, is likely to go lower.

But the company has already written off  Sanlu, last season’s payout was a record, the drop is largely the result of international commodity markets and even if it drops below $5 it will still be above the longterm average.

The world is in a financial mess and New Zealand is in recession but Fonterra is not in crisis and even if it was if the government was the answer you’d be asking the wrong question.


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