When China sneezes ...

In the past seven days, we've witnessed falling share prices across Africa, Asia, the Americas and Europe.

We have also seen some really big swings in relative currency values which means, for example, that Kiwi exporting just got more competitive because the New Zealand dollar is one of the currencies that was sold down in the rush.

Many analysts are saying this market earthquake was triggered by a 9% fall in the value of the Shanghai Composite Index on February 27 - an index that tracks about 800 companies - shares that can be bought and sold by Chinese citizens, but usually not by foreigners.

How is it that a 9% fall in a domestic Chinese market, a market that had doubled in value in the past 12 months, could trigger a global stock market slump that, in the U.S. alone, wiped out US$630 billion of stock equity value in 24 hours? I am not exactly sure although the past seven days really do highlight how very significant China is to the international trading system these days. When China stumbles, the whole world notices and the shockwaves are felt everywhere.

NZ can't afford to waste money, resources

The wobbly international markets are a reminder, as if we needed one, that as a small trading economy we are always vulnerable to what happens overseas and we can never afford to take our eye off the ball as we did in the 1970s, 1980s and 1990s when our position deteriorated economically and socially.

What is absolutely certain is that no New Zealand government should ever waste taxpayers' money. Every public investment should be of high priority and aim to deliver national or nation-wide benefits - not just welfare for the privileged.

National proposes throwing money at every problem

Which is why it is so depressing that the National Party in 2007 is behaving just like it did in the 1970s, 1980s and 1990s - with its head in the clouds, promising to fix every problem with dollops of indiscriminate spending on any issue that it thinks it can get TV coverage over.

In the past week alone, we've witnessed National say it would spend millions of dollars a day on guarding disused public buildings around the country! That's right, providing security guards to old brick and mortar!

www.national.org.nz/Article.aspx?ArticleID=9528

We've witnessed National say also that, if it wins government next year, it will give foresters carbon credits dating back to 1990: Basically, a $1.24 billion "gift" from every taxpayer to a select few forest owners! This is mind boggling stuff - the stuff of scandal.

www.scoop.co.nz/stories/PA0703/S00090.htm

We saw Nats promise to abolish surtax in 1990 without costing the policy

In the 1990 election, the NewLabour Party and the National Party both promised to abolish the surtax which applied at that time on National Super.

The surtax, put in place by the 1984-1990 Labour government, was deeply unpopular because it was so unfair. It was a tax on those that had saved a little for their retirement - imposed on them when it was too late for them to avoid it.

The NewLabour Party, the small progressive party led by Jim Anderton that had been established in 1989, proposed raising a couple of billion extra in income taxation in order to pay for increased public spending on education, health and superannuation.

The National Party, after six years in opposition and headed for victory in the election anyway, said it would get rid of the surcharge somehow - it wouldn't raise income tax rates, it would just get into government, wave a wand and get rid of the surtax.

National, needless to say, was by far the most popular party in the 1990 election as it promised something for nothing. It swept into power with a landslide on the false promise to remove the surtax without first saying how it would raise the money to afford such an expensive policy.

In 1990, National got elected on a lie. It quickly broke its promise once in government.

It is becoming clearer by the day that National is planning to try the same tactic again next year.

John Kirwan's openness makes for successful campaign

The surtax issue wasn't the only policy issue of importance to the NewLabour Party (NLP). In 1989, the NLP was leading a campaign against the sale of Air New Zealand and the sell-off of NZ Post's retail banking branch, PostBank: This past week, we've had an excellent profit announcement from Air New Zealand - now 80% owned by the people of New Zealand again. PostBank's successor, Kiwi Bank, continues to make strong progress and is picking up more admirers by the day.

www.progressive.org.nz/modules.php?name=News&file=article&sid=2609

And NewLabour's successor, the Progressive Party, continues to make a positive difference in Parliament. For me this was highlighted by former rugby union icon John Kirwan who was briefly back in New Zealand this past week talking about the t.v. campaign on depression in which he and his family feature - it is a practical, public health campaign that arose out of Progressive's budget bid within the coalition government.

www.progressive.org.nz/modules.php?name=News&file=article&sid=2603

Alcohol & other drug misuse are huge issues in our prisons

Over the past four years, the Progressives have each year utilised the government budget round to bid for programmes to help individuals and communities combat the effects of alcohol and other drug misuse.

Throughout our prisons, alcohol and other drug mis-use is a massive problem in New Zealand. Contrary to National's proposals to cut the government's income tax revenue, the reality is that we actually need to invest substantially more in all aspects of our still-failing, still inadequate justice and legal systems: We need to invest millions more in rehabilitation; millions more in anti-drug use programmes; millions more in monitoring the parole system.

I have been talking about these issues to some media over the past few days, including the issue of how on Earth we can strengthen public confidence in the Police Force in the wake of the high-profile trial that everyone will have heard about on the news. To me, it is an issue of the misuse of power and it will take a real effort to regain that confidence now that it has been so utterly shattered. I would welcome your views on this matter. How do we improve confidence in the Police after what we've heard was tolerated or part of their "culture" as recently as the 1980s.

www.radionz.co.nz/national/programmes/afternoons/20070305

ENDS

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