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Hot Topics: Solid Energy | Unitary plan | Budget

NZ POLITICS DAILY: Convention centre cronyism claims continue

Bryce Edwards | Friday February 22, 2013 | 5 comments
New Q+A host Susan Wood
New Q+A host Susan Wood
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‘Corrupt’ is a term not traditionally used in New Zealand politics, but it’s certainly being thrown around now, not only by opponents of the National government, but also by commentators and newspaper editorials.

The best example is Vernon Small’s SkyCity stench demands restart – probably the best analysis to date. Small makes the case for due process in government deals, saying the rules that the Key Government has been ignoring or flouting exist ‘to protect against the risk of corruption and inappropriate influence’. He suggests that confidence in the public sector and the way government works has been damaged by the SkyCity deal: ‘No corruption but a corrupted process’.
 
Allegations of corruption are the theme of Jane Clifton’s latest Listener column – see: Winner takes it all (paywalled). Clifton says, ‘There have always been whispers that various politicians are in the pocket of the booze, racing, tobacco, fisheries or some other sector. But it was rather disarming when National climbed right into Sky City’s pocket in plain sight, and openly waved a white hanky at us from within it’. She also expresses amazement that the Auditor-General could find so much wrong with the SkyCity deal process, but then be ‘agnostic about whether the outcome was proper’. Clifton is less surprised that the PM thinks he can get away with such unconventional deal-making: ‘He has form, having overtly buddied up to Hollywood execs, who also got legislation – and money – for letting New Zealand retain the Hobbit production, the cost-benefit ratio of which is also still mysterious’.
 
Writing in the NBR, Rob Hosking argues that the allegations of ‘cronyism’, ‘dodgy deals’ and corruption are ‘overheated accusations’ that are ‘not borne out by the facts’. He suggests that the ‘storm in a teacup’ (or ‘zephyr in a demi-tasse’) is actually more the result of ‘political games’ by Opposition parties – see his (paywalled) column, SkyCity row: the sloppiness continues. The increased use of terms like corruption, cronyism and hypocrisy is largely due to a new campaigning fashion amongst politicians, using rhetoric as their main form of negative campaigning. An escalating war of words has developed over political integrity, with all parties seeking to damage the reputation of opponents, knowing that the public is highly-receptive to charges of political dishonesty.  That may not always be the case as there is a danger of the boy who cried wolf syndrome where real instances of serious corruption are portrayed in the same language as normal political discourse.
 
Much is also being made of the threat the deal poses to New Zealand’s corruption-free status internationally – at least by opposition politicians. For the best example of this, see David Cunliffe’s blogpost, Today the house must not win. 
 
It isn’t, however, all just opposition outrage. The Dominion Post’s Disregard for the rules is alarming is scathing of the government’s process, saying such rules are vitally important because ‘adherence to proper process helps to ensure that public moneys are spent wisely and that New Zealand remains relatively free of corruption’. It concludes powerfully against the way that John Key has been doing deals: ‘That is the way politics operates in Russia, China, India, Africa and other parts of the world in which corruption is endemic. It is not the way it should operate in New Zealand’.
 
Other important coverage of the SkyCity scandal includes David Fisher and Claire Trevett’s Key retreats from TVNZ land deal statements, Toby Manhire’s Move along! Nothing to see here!, and Patrick Gower’s Casino chases taxpayer-funded marketing. 
 
While the SkyCity issue can only be bad news for National, the effect of the shock news that Solid Energy is in crisis is less clear. The best account of the issue is Pattrick Smellie’s report, Govt won't let Solid Energy fail, looks to banks to wear their share. National will also hope that the issue shows the need for the state to reduce its ownership of SOEs. And today, David Farrar pushes this line in his blogpost, So why do we own a mining company?. This view is parodied by Scott Yorke in Sell them all. But one of the bigger impacts of the story will be to re-focus public debate on the rocketing management salaries and bonuses of companies. The Standard makes the case that Solid Energy has suffered from a culture of excess: ‘In a decade, the board’s pay rose from $200,000 to $360,000 – a 80% increase, twice the increase in household incomes over the period. The CEO is worse: with pay rising from $380,000 in 2002 to $1,350,000 in 2012 – a 255% increase.  The number of Solid Energy employees earning more than a Cabinet Minister rose from 6 in 2002 to 39 in 2012 (a further 250 were paid more than an ordinary MP). Just those 39 and the board were paid $15.5m a year – the equivalent of 310 average wages’ – see: Nats’ fossil fuel bet & culture of excess bankrupted Solid Energy. Some good questions are also asked about the company’s performance in Grant Bradley’s Hero to zero in two years, and the kitty's empty. 
 
Other recent important or interesting items include the following:
 
* Labour’s upcoming caucus reshuffle has been described by commentators as difficult for David Shearer because of the fraught issue of dealing with David Cunliffe and his supporters. But David Farrar has blogged on the The Labour reshuffle and suggests that the problems are more about identity politics – i.e. can Shearer really demote two underperforming female MPs, and can he afford to have a Pakeha-dominated line-up? See also, Chris Trotter’s Charge of the limp brigade which deals with the departure of Charles Chauvel and the apparent defeat of David Cunliffe, and asks, that ‘With Champagne Charlie gone, can the talented Mr Cunliffe be far behind?
 
* New Zealand’s head of state still can’t be a Catholic, even if current constitutional reforms are passed – see Brian Rudman’s It's a charade of heirs and graces. 
 
* State education in New Zealand is supposed to be secular, but a loophole called the Nelson Clause ‘allows schools to close for bible classes during school hours’, which the Secular Education Network is fighting to close, apparently with little support from political parties keen not to offend religious groups – see: Pressure on Government over bible lessons. 
 
* Why do state agencies have such a poor record of protecting highly sensitive privacy material? The latest scandal shows how the Police are putting people at risk – see Fred Tulett’s 'Lives at stake' in files botch-up. There also appear to be reforms to the way that the Police Complaints Authority works – see both Blair Ensor’s Police complaints going more public and Simon Bradwell’s IPCA boss wants power to investigate. 
 
* The Government has launched another round of punitive welfare reforms, this time receiving some support from the Beneficiary Advocacy Federation, which agrees with the decision to target the partners of benefit fraudsters – see Shane Cowlishaw’s Fraud investigation measures raise concerns. But the logic of the reforms is countered by Gordon Campbell, who points out that mistakes by the bureaucracy and underclaiming of welfare benefits are much more of a problem than wilful fraud - see: On the latest spasm of welfare bashing. See also, Steven Cowan’s Persecuting the poor.  Interestingly, the Green Party has come out with harsh criticism of the reforms, but say that nonetheless they may still vote for the legislation – see Newswire’s Benefit fraud crackdown 'unfair'. No Right Turn blogs with severe criticism of the move, but also implicating Labour – see: National spins the wheel again. 
 
* Is the Government’s announcement of a ‘legacy commitment’ to Afghanistan a U-turn? The Waikato Times suggest it is, and says to suggest otherwise is to fall for or push the ‘spin’ – see: Staying on in Afghanistan. This type of allegation is a ‘cheap shot’ according to Greer Berry writing in the Manawatu Standard – see: Afghanistan service serves our needs too. 
 
* New Zealanders like to think our war-time record and defence forces are pretty clean but there was a clear violation of the Geneva Convention in the 1943 ‘wartime "massacre" of Japanese prisoners by New Zealand soldiers’ in Featherston – see Seamus Boyer’s Lecturer urges massacre apology. 
 
* The new host for TVNZ’s Q+A politics show has been announced – see: Susan Wood 'absolutely delighted' to host Q+A. The show restarts on March 10. Other current affairs and politics shows have the following restart/launch schedules: Native Affairs (11 March), The Nation (23 March) and The Vote (end of March). Also, TV3’s new current affairs show, 3rd Degree starts on 6 March – watch the 30-second promo.  Meanwhile Seven Sharp is still losing huge numbers of One News viewers but, interestingly, Campbell Live isn’t continuing to gain from Seven Sharp’s losses – see: Let's not talk about the ratings slump for Campbell Live last night.
 
Bryce Edwards

 

Today's content:
 
SkyCity report
Vernon Small (Stuff): SkyCity stench demands restart
John Armstrong (Herald): National's SkyCity damage control
Jane Clifton (Listener): Winner takes it all [paid]
Rob Hosking (NBR): SkyCity row: the sloppiness continues [paid]
David Fisher and Claire Trevett (Herald): SkyCity: Key retreats from TVNZ land deal statements
No Right Turn: Dodgier and dodgier
Michael Cummings (Manawatu Standard): Editorial: No winners in SkyCity report
Toby Manhire (Listener): Move along! Nothing to see here!
Kate Chapman and Hamish Rutherford (Stuff): SkyCity had direct line to PM – Shearer
David Cunliffe (Red Alert): Today the house must not win
Peter Wilson and Laura McQuillan (TV3): Key grilled over Sky City deal
Jane Clifton (Stuff): Key clings to technicality liferaft
Adam Fisher (Herald): Treasury's SkyCity advice ignored
Radiolive (TV3):  TVNZ discusses moving studios
Simon Paterson (Stuff): Exploitation rights sold to Sky City
 
Solid Energy
John Adams (Stuff): A way ahead for Solid Energy
Danyl Mclaughlan (Dim-Post): Just like in the REAL world
Peter Cresswell (Not PC): State-owned companies in the REAL world
David Farrar (Kiwiblog): So why do we own a mining company?
Ele Ludemann (Homepaddock): Why should taxpayers face the risk?
Scott Yorke (Imperitor Fish): Sell them all
 
Welfare reform
Gordon Campbell (Scoop): On the latest spasm of welfare bashing
Andrew Geddes (Pundit): A press release we will never see
Isaac Davison (Herald): Law clamps down on relationship fraud
Susan Guthrie and Gareth Morgan (Herald): Gareth Morgan: Benefits system needs to evolve
Steve Cowan (Againstthecurrent): Persecuting the poor
 
Tobacco plain packaging
Southland Times: Plain and not-so-simple
 
School closures
Mike Smith (The Standard): Mr Answerer
 
Christchurch rebuild
David Farrar (Kiwiblog): Herald repeats misinformation
Rebuiding Christchurch: Peeling back the layers
Anthony Robins (The Standard): Forgotten Christchurch
 
Defense
Greer Berry (Manawatu Standard): Editorial: Afghanistan service serves our needs too
 
Police
Simon Bradwell (TVNZ): IPCA boss wants power to investigate
Grant Bryant and Fred Tullett (Stuff): Police blunder unmasks secret files
 
Law and order
Graeme Edgeler (Publicaddress): On Burglary, or: Dropping the Ball
 
Fiscal policy
Hamish Rutherford (Stuff): Treaty settlements yet to hit Govt accounts
 
Inequality, poverty, employment
Cathy Odgers (Asianinvasion): Bob Jones Too Sharp At Seven
 
Labour Party
David Farrar (Kiwiblog): The Labour reshuffle
Chris Trotter (Stuff): Charge of the limp brigade
Southland Times: Editorial: Polls apart
 
Maori politics
Gareth Hughes (Frogblog): Speculating on spectrum
Tom Pullar-Strecker (Stuff): Maori ICT cash not slush fund - minister
Hamish Fletcher (Herald): Stoush over mobile spectrum auction
Tom Pullar-Strecker (Stuff): Government turns down Maori spectrum claim
Tom Pullar-Strecker (Stuff): Maori look to respond on spectrum
Yvonne Tahana (Herald): $26m for Maori shows 'not enough'
John Ansell (Treatygate): Now we know why Miri got sniffy
 
Media
Karl du Fresne (The Dominion): A TV One casualty to the cult of youth
Isaac Davison and Vaimoana Tapaleao (Herald): Seven Sharp staff in talks on show
John Drinnan (Herald): Tex toughens up Sky Sports
 
Other
Kate Chapman (Stuff): King of Tonga to visit
Brian Rudman (Herald): It's a charade of heirs and graces
Claire Trevett (Herald): Little ado over royal mating habits
Fran O'Sullivan (Herald): Speculation surrounds APN future
Seamus Boyer (Stuff): Lecturer urges massacre apology
Brian Easton (Listener): NZ Census: Counting on your co-operation
Rosemary Mcleod (Stuff): Prosser a nonentity on a generous income
Scott Yorke (Imperator Fish): My last week in politics: a short summary
Matthew Martin (Herald): Greens slam Lake Rotorua deal
David Farrar (Kiwiblog): Not fronting
David Farrar (Kiwiblog): A useful enhancement
Nick Wilson (The Dominion): Action needed on nuclear threat

 

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Comments and questions
5

#1 by Anonymous 3 months ago

Corruption is a new reality for New Zealand. It was removed from an OECD list of least corrupt countries this year.

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#2 by Anonymous 3 months ago

Corruption and the Waitangi Tribunal go hand in hand.

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by Hori 3 months ago in reply to Anonymous

It exists because of 19th century government corruption. We don't want to go there again do we.

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#3 by Jimmy Hoffa 3 months ago

Something's rotton and it ain't in the State of Denmark; it's right here in NZ.

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#4 by Solidarity 3 months ago

The only reason this so called "issue" gets any media attention is because of the likes of the Horrid and their union-loving sycophant repeaters regurgitating the propaganda the unions want publicised.

Case in point... The education union in the States just last week that shrilled the sky is falling where a Charter School failed 37% of the students, etc... Completely overlooking that 63% do much better... Ohh, never mind...

The labour/union/green-eyed envy monster have been doing everything they possibly can to try and disrupt the progress and esteem NZ holds with the most popular PM and political party NZ has had in living memory, where Key got to figuratively drop kick Comrade Clark out of NZ and right into NY, with the largest mandate and margin National have ever beaten Labour with. Labour couldn't even get near 30%... Even with attempted election rigging pledge card rorts.

Ever since Mike returned empty-handed from Aussie trying to find something, anything, anything at all for political muck raking against JK, the left have constantly been trying to find some dirt... As they dig themselves into bigger holes, only discovering treasure the pooch left behind... And the stench it leaves on their hands.

The shilling from the left trying to score any kind of political hit is as pathetic as it is limp from the left. Co-ordinated, orchestrated smears that only seem to backfire making them all about as credible as Shearer's Mr Roofus Painter... The guy with the GCSB tape, labours 10,000 homes a year for 10 years and all under $300k each, as Norman prints the money to fund us out of debt.

Just once, credible alternative policies that work might do the left more good than the 'gotcha' politics and attempted smear campaigns. Didn't your mummies tell you if you don't have anything nice to say, And don't have any better ideas, don't say anything!

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