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NZ POLITICS DAILY: We're all beneficiaries now

When it comes to taxpayer handouts, this government is up there with the best.

$1.6 billion for South Canterbury Finance investors tops the list.

But also, elite private schools get bailed out when there are empty public school classrooms nearby, and Warner Brothers pocketed a cool $67 million to solve a problem that, it now appears, had already been solved.

The latest taxpayer handout involves drought relief for farmers, not normally politically controversial, but in the context of repeated crackdowns on welfare some are questioning if suddenly different standards are being applied. CTU President Helen Kelly is in favour of the farmers getting support in their time of need, but she questions the double standard compared to beneficiaries in her blogpost, We’re all beneficiaries now.

More humourously, Scott Yorke anticipates a government push to break farmer dependency in Bennett announces drought relief get-tough measures. A slightly surprised Cathy Odgers finds herself agreeing with Kelly about the double standard but from a very different perspective: ‘it makes it pretty hard to argue for those of us on the right about the reduction of the welfare state when this sort of nonsense is supported’ – see: Oh Dear – Helen Kelly Makes Sense.

The taxpayer-funded generosity causing most heat at the moment is Solid Energy ex-CEO Don Elder’s ‘gardening leave’. No doubt Mr Elder’s garden is needing some serious watering like everyone else’s, but as Labour’s Clayton Cosgrove noted, with an on-going salary of $1.3 million that’s ‘a very expensive garden’ – see: Elder retained on pay for transition. And Patrick Gower reports the allegation that Elder might get a further pay-out of $1.5 million – see: Ex-Solid Energy chief still on full pay.

The inability of the current Solid Energy Chair, Mark Ford, to answer questions about how his company lost the taxpayers $389 million is infuriating opposition MPs on the commerce select committee. With Elder’s claim that he was banned from speaking to the media contradicted by Ford, pressure is mounting for Elder to front – see: Former Solid Energy boss could be forced to speak. Blogger David Kennedy says that there’s some interesting comparisons to be drawn between how we treat beneficiaries, businesspeople and politicians – see: Dirty Don and Double Standards

Some politicians are also upset with SOE bosses accountability to select committees – see Hamish Rutherford’s two very good items, Mighty River answers were 'disdainful', and Shipley ducks Mainzeal questions. And then there’s the case this week of ex- Education head Lesley Longstone getting a $425,000 payout for falling out with Hekia Parata. By far the best commentary on this comes from Vernon Small, who says, It's time to end big severance deals

Tying many of these stories together – and more – Tim Watkin says that ‘people with significant power are failing to realise the obligations that come with such power - in a word, accountability’ – see: The minister, CEO and top cop: We expect accountability.

But the best political article of the week on this topic of corporate and political governance is Karl du Fresne’s latest Listener story, The trophy director. Normally such stories are behind the paywall on the Listener site, but it’s been unlocked for non-subscribers until the end of today. du Fresne impressively catalogues examples of ex-MPs and Cabinet ministers who have gone on to become company directors. He explores why politicians are so inclined to end up as board directors, and whether they do a good job or not.

Other recent important or interesting items include the following

Comments and questions
13

I keep repeating, John Key is the best prime minister that Labour has ever had.

Labour /greens/NZ1st/Mana being the 4headed Taniwha are the best insurance for another National government... Thank God!

Yup. the only difference is that his welfare system is designed to support corporations, banks and the already rich. Lets see, there are ETS subsidies for farmers, subsidies for private schools and tertiary providers, the media works subsidies, sporting subsidies for sporting corporations like the world cup and yachting races. Then there is the Warner Brothers subsidy and we can't forget the broadband subsidies either can we. If he was a Labour Prime Minister he might help the poor and unemployed too. Oh but that would be just and fair. Concepts unknown to merchant banker and national Prime Minister Key.

Is there anything so stupid as Working for Families. Take from the able bodied and poor to give to the able bodied and rich.

A straight out election bribe. John Key was elected to turn back this nonscence. 400,000 people who decide to have children and have someone else pay for them. Oh whoopy do.

You forgot the rort of Paid Parental Leave...

Quite right, just another transfer. People think that its government money. Of course there is no such thing, its someone elses earnings
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We totally ignore the effect on the family that the money is taken from.

The reason we have taxes is to redistribute the wealth the elite ruling class (in cahoots with most governments) rip off from the real generators of wealth; The workers. If the elite shared the profits fairly we wouldn't need governmental intervention, working for families of paid parental leave. People would be able to support themselves. Fat chance of that happening while "greed is good"

The reason we have redistribution is to buy elections. Its about as simple as that.

Hard to believe you're serious. Handouts as a way of life slowly destroy the receiver and the person paying for them.
Welfare over and above the disabled and the elderly are pure election bribes.

They are not handouts. They are a profit sharing arrangement between the suppliers of land and capital and the suppliers of labour. All contribute. All should benefit fairly.

Denmark is the place for you. Certainly not NZ?

Investing in any "too big to fall" NZ companies will surely be the best bet....high unbelievable returns and 100% guaranteed by the NZ tax-payers.

Yes. EG South Canterbury Finance. Corporate welfare from a Government dominated by consciously prejudiced elitists. What about the people? Don't ignore them national or take their apathy for granted. The taniwha of the working and middle classes is stirring...