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Why do the left hate the private sector?

 This week has exposed the extent of the antipathy to the private sector from the Labour and Green parties. It was a chilling reminder of how ideologically driven these parties are in their hostility to the private sector.

The National Government confirmed this week that from September, tenants in state houses will be able to buy the house they live in. This was an explicit election policy.

Furthermore any proceeds from these sales would be used to build new state houses. Housing Minister Phil Heatley correctly called it a win-win-win.

Many state house tenants have lived in their current house for decades. It is effectively their family home – except they don’t own it. They could be given a few weeks notice to leave. Giving those tenants the chance to own the home they have lived in is an opportunity that will appeal to most Kiwis.

Some will scoff and say that no one in a state house can afford to buy a house, but that is not true. Family income can vary greatly over time. One of the great myths about New Zealand is that if you were once poor you stay poor for ever.

The second class of winners is those on the waiting list for state houses. Every state house sold is replaced, and this allows someone on the waiting list to get a state house. This can reduce rental costs massively for the lucky family.

And the third class of winners is those employed in the building industry as they get to construct new state houses to replace those sold.

Now you would imagine that Labour, which tries to portray itself as the champion of the little person, would support state house tenants having the opportunity to own the home they have lived in for decades. But no Labour has condemned the policy on the nebulous grounds that replacement state houses might be built in cheaper areas.

So Labour would ban state house tenants from owning their own homes, because of concern the replacement state house might be built in a cheaper area? Incredible.

Even sadder was the response from the Greens. Sue Bradford was worried that state house tenants might on sell the house they live in to make a profit. She said:

"Houses which are sold can be back on the market quickly, with investors and developers reaping profits. This happened in the 1990s, and I'm sure it will happen again now.

How dare anyone make a profit – such a concept is hostile to the Greens it seems. Never mind that her argument is barmy – tenants can only buy the house they actually live in, and buy it for its market value.

"This proposal is the thin end of the privatisation wedge and I hope other political parties and community organisations will join the Greens in urging Mr Heatley to reconsider.

The dreaded P word. Yes allowing a family who has lived in a home for several decades to buy it, is privatisation and must be stopped. The private sector must be eliminated it seems.

If the left continue with their kneejerk hostility to the private sector, I am predicting an easy re-election for the Government. I am sure John Key is looking forward to having Phil Goff explain in a Leader’s debate why Labour are against state house tenants being able to buy their own homes.

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Comments and questions
37

The reason the left hate privatisation is they are losers in the real world. Most of these fools are incapable of running a business, or doing a job well enough to be promoted.

It is a trick question! The real answer is: the left does not hate the private sector. Quite the contrary. During 2005-2008 (after at least six years of left government) New Zealand was ranked the 5th free-est economy in the world by the Heritage Foundation and 3rd free-est by the Cato Institute, and was also ranked the single easiest place in the world to do business by the World Bank. Sure, the left and right have disagreements around the role of the private sector in some small sections of our economy, but DPF has elevated those disagreements into some silly hyperbole that doesn't stand up to the evidence. Again.

"Many state house tenants have lived in their current house for decades. It is effectively their family home – except they don’t own it".

NONONONONO - this is as silly as stating that because a tenant has lived in a privately owned house for many years that it is "effectively their family home", it is not, it belongs to the owner of the house. it is their home.

If state house tenants wish to purchase a home they should struggle, save and do it the same as everyone else. It is not privatisation unless the State stays out of it, which means opening the homes up for tender at market rates to the highest bidder.

What the Nats are proposing here is not privatisation anyway. Who will end up footing the bill when these homes need repair? Who pays subsidies and tax credits to these people who are in effect net beneficiaries? That's right.....you do...the taxpayer.

"Effectively their family home!" Well if I was the Govt I would limit State house occupation to five years. Should be a helping hand, not a handout. Too many freeloaders only drag society down to their level.

The left quite simply believe that if there is no private property... then there is no entitlement to a private life. The objective is to divorce us from any means of independence that has the effect of rendering them obsolete. They Control (BIG C) our schools, and use this and State Housing/welfare to create voting clusters... and to farm new generations of supporters. The left had the same 'anti' argument in the UK when Thatcher quadrupled the size of the middle classes by extending this scheme to council tenants... love her or hate her she created more wealth for working class people than the left could conceive. The very same nay-sayers are those Labour leaders who now live very high on the hog... such as two-Jags Prescott or the "it's only a small stately home" Blairs. Bottom line... the left hate the right because the right IS right.

David's slagging of the left for being ideologically driven is like a whore being critical of other women for flirting.
The reason David's end of the political spectrum has lost ground in many contries is that they have turned Free Market economics into a religion and follow it in a myopic manner.

as this has what to do with selling stet houses to tenants

Well this is odd - Farrar has used some made-up items to support his "chilling" opinion about the left. On the Wellington radio several days ago Key stated explicitly that where a State House was in an area with high market values, it would be sold at market rates in order to fund possibly two houses in a lower-value area.

Cactus Kate sound like a right miss canine - if my family lives in a tent for many years and I don't own the tent it still, effectively, is my home. Home is where the heart is, families are our future, etc - obviously these things do not make any sense to this Dickensian landlord. "Mummy, What's a sociopath?"

This whole column is a load of weirdness. If a house is sold to a developer who then re-sells for a profit, where did the extra value come from? No, not the purchaser - the developer extracted value left in by the state. So who paid - the TAXPAYER. So why would the left be seen as against this - better to pay a direct subsidy to a developer than pay him/her the dole. Oh and if someone objects, call them anti-profit.

I don't have a degree in economics, but this is pretty simple stuff David, you nong. Why subvert it into an attack on the left?

Further to David's excellent column, some of you may not have seen the release below:

Policy stands the test of time

Bereft of angles to attack the government’s announcement that state house tenants will have the opportunity to buy the homes they’re living in – such is the policy’s commonsense – Labour has gotten itself in a frightful tangle trying to oppose it, says Housing Minister Phil Heatley.

For starters there’s the mere fact Labour opposes the idea at all, given that Labour leader and former Housing Minister Phil Goff once saw great virtue in practically the same policy.

“If Phil Goff’s mana and judgment sees him deserving of the role of party leader, why is an almost identical state housing policy he once proudly sold to the public suddenly considered to be without merit?” Mr Heatley queried.

He was referring to an Evening Post story in October 1986 about Mr Goff’s initiative to allow sales of state houses to the tenants living in them.

“Lifting the ban is designed to give long-standing tenants whose houses have become their homes the opportunity to buy the properties,” Mr Goff told the paper.

“The sale of those houses and the purchase of replacement properties will assist the Housing Corporation to house more applicants off the waiting list,” he continued.

Sound familiar? Yesterday National announced state house tenants will have the option to buy the house they are living in from Housing New Zealand Corporation from mid September.

The response from Labour’s housing spokesperson Moana Mackey was absurd on the one hand and confusing on the other.

First she claimed “the average state house now has a value of around $350,000” and on that basis tenants would be stretched to raise finance.

Then she said Labour had serious concerns that some of the increasing state housing stock would be made up of long-term leases from private property owners.

“While National never suggested huge numbers of state tenants were likely to take up this opportunity, the reality is far less frightening than Ms Mackey would have them believe, given that the average value of a state house is actually $220,000.

“And Labour’s sudden aversion to the state landlord leasing properties from the private sector is surely one of the most violent u-turns in political history.

“Not only is Moana Mackey thumbing her nose at her leader’s ideas and getting her sums wrong, after just six months in opposition she seems to have forgotten that as recently as 2007 Labour oversaw the acquisition by Housing New Zealand of 268 new state houses and the leasing of 420 – a whopping 56 per cent more leases than purchases.

“I look forward to Labour clarifying that it no longer supports Housing New Zealand leasing homes for needy state tenants from the private sector,” Mr Heatley said.

“It will be quite a come down given that between 2003 and 2007 Labour was happy for Housing New Zealand to acquire 1864 additional state homes but also lease 2110 from the private sector.”

Its not a trick question Mr Salmond. To know that as a fact, one only has to observe in Labour/ the left the unbridled hatred towards the author of those policies that brought NZ to the top of the free economy listings.

The hatred of zealots for an apostate.

And even if one concedes some small degree of correctness to the weakly justified World Bank classification, Labour were busy chipping away at that too before they got the boot.

There is a perfecty good reason why the Left hate the Private sector:

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=56494

Because they are 'mentally ill' as this veteran psychiatrist says. Come having a political agenda based on:

* creating and reinforcing perceptions of victimization;
* satisfying infantile claims to entitlement, indulgence and compensation;
* augmenting primitive feelings of envy;
* rejecting the sovereignty of the individual, subordinating him to the will of the government.

you have to be mad.

All I can say is good on the government for give responsibility state housing tenants now if they stay out of everybody elses live and let us decide what to spend our money on NZ might become a livable place but for now, I am struggling!

worldnetdaily for kiwi wingnuts..a good read..sorry..rant.

..and of course the real reason the left are opposed to this measure is that it undermines their voting base.

From any more rational perspective, state house renters given a discount to buy the homes they live in is an instance of a short term cost bringing a long term credit.

The credit is the incremental replacement of the state dependency mentality the left cultivate (as a means to power), with a universal mindset of self reliance.

The left know that the more people in NZ who are self reliant, the less voters for Labour.

It is in their interests therefore to keep self reliance as low as possible, and encourage dependency.

Ergo, to Labour, people buying state houses is a bad idea.

Bradford Goff and their cohorts like Clark and Cullen are non achievers who have never had a real job. They are determined to bring everyone down to their level. Insofar as I know they never had a private sector job ever and now the last two limp away to other taxpayer funded non jobs.

Contrast the disgraced Dr Richard Worth - he might be a randy old rascal(emphasis on the 'might') but he will walk straight back into the boardroom of one of NZ's top law firms. Paul Hutchinson would obviously cruise straight into medicine again, John Key would not struggle for his next feed, Tim Grosser would have no employment issues and the list goes on and on

Labour, apart I guess from Geoff Palmer and maybe Peter Tapsell(though they are both from years ago), and the Greens - it's the dole queue for you lot if you get the boot. Parliament for that mob, like traffic cops, is employment for the unemployable.

Thanks for a great article.

I utterly agree with Privatus and Redbaiter - we all know this is not an issue of who extracts residual value the state misses, or about houses being built in cheaper areas. The state has never been the most efficient market player, regardless of who is in power, which is to be expected, given market intervention is not its primary purpose.

The real issue is that the left wing knows its entire powerbase relies upon New Zealanders not being in a position to argue. Financial independence undermines the left structure at its core.

As Privatus noted, "If there is no private property... then there is no entitlement to a private life"; and, Labour hopes, no entitlement to a private opinion.

Well just check out the Labour and Green politicians ,they have spent most of their lives feeding off Karl Marx ,Stalin and Mao ,once a person decides to be not living off handouts ,the brainwashed collective farm mentality kicks in as their controlling paronia sees them losing votes,and they themselves might be out off a job and loss of power.What a fright as most of them would not work in AN IRON LUNG.

How do you justify giving state housing tenants preferential buying rights as being a free market operation? This reeks of Government unnecessary and manipulative intervention.

Don't you read any of the previous comments?

This is an investement in moving the mindset of state house renters from dependency to self reliance.

There are countless UK state house tenants who were able to buy their state house during the Thatcher years, and it effectively allowed them to get a rung up and become middle class. These include poor people who would traditionally have been Labour.

If we can do the same thing here, and allow a greater number of people to become affluent, I don't see why we should have a problem with it. There is a huge, often unaccounted cost on subsidising people at a subsistence level. This will let them help themselves if they choose.

DPF correctly points out the bland stupidity of Labour with the good poodle Green party barking when "speak" is called. The Green's seem to have temporarily forgotten that Labour is not always right anymore.

For the love of "common sense" how can allowing state tenants the freedom to buy the house they live in be a bad thing?

Explain how can replacing an existing house with a new one be a bad thing?

Is there really anyone on the Labour side of the fence that is prepared to answer those two the simple questions?

I applaud maestro of the rational Nick Bryant on his excellent posting (and his knowledge of fine wine).

Don't forget that Phil Goofy owns an incredibly expenise ranch in rural Clevedon (yes, he does not live in his electorate) and that proven lying crook Helen Clark (check that with Auditor-General Kevin Brady) owns 10 houses.

Take this opinion from a right wing private sector caitalist - we have let down the "left", or those who by accident of birth, or age, are unable to run a bath, let alone a business. Not their fault, they have neither the skills nor the environment to advance themselves (possibly apart from becoming leftwing politicians).
That is as much a truism as the fact that the business bozo's who have let us down are those hellbent on impressing us with their trophy spouses, bigger boats, Remmers or Merivale homes,seeking faux recognition of their claimed superiority, giving the Bradfords and Phil Goofs of this world a rich (?) source of votes ongoing. Er, Wall Street, anyone? Hanover Finance?
Some integrity and honesty is required here. Don't blame the left - we contributed big-time to their prejudices, which keeps the Labour Party up there as a likely Governement. Seismic change is needed, and honesty from those right of Genghis Khan, commenting above.

Who is he how about my namesake or the little" WE WON YOU LOST EAT THAT" little creep known as MIKE THE SHREIK,now sucking out of a private enterprise trough?and stuffing that up as usual.

"if my family lives in a tent for many years and I don't own the tent it still, effectively, is my home. Home is where the heart is"

That's a silly example from a silly comment isn't it?

If that tent is on privately owned land it can never be your home can it? You would be squatting and evicted. As I am sure you would evict others who squatted on your privately owned front lawn.

Families are not a nation's future - taxpayers are. Until you can turn state house tenants into real net taxpayers then the nation has a future of supporting eternal beneficiaries. Throwing them a house will only create an expectation of more dependency that if you are poor you get a cheap house - the country cannot afford that mindset.

What do you mean "throwing them a house" CK?

National's change is the opportunity for present tenants to buy at full independent market valuation.

It would seem to me that those who take up that opportunity would become "real net taxpayers."

Probably not huge consumers of Pol Roger, but real net taxpayers all the same.

This plan on the face of it looks like a good one. Sell houses, build new ones, creates work, reduction of waiting lists etc etc. Its likely new state houses will have to be built on cheaper land, i.e. not central city suburbs, or costal land.

While I personally dispise Sue, her point here is real. A good number of the 90s HomeBuy sales were quickly onsold to developers. The houses, in most cases, were sold too cheaply in the first place, and then market driven forces simply took over.

So some rules will be required to make this work as intended, but thats pretty much true of everything.

Kate's point about selling the houses exclusively to the occupant has some merit, as it does in a way encourage the perception that nothing can be achieved unless government is there to assist with other people's money.

However, there has to be a start made somewhere and sometime in generating self reliance. or its California here we come.

As to Legislator's comment that the purchase price will be at valuation- Are you sure? I am reasonably certain I read elsewhere that there would be a discounted price.

Hi Redbaiter, yep, I'm absolutely sure, there will be no discount like in the 1990s; sales will only be at independent market valuations.

Also, those who opt to buy will not have access to a state house for three years, so there's no room for any sort of creative buy-and-flick-off to a developer for a quick profit and then return to a state house behaviour, not that there would appear to be much scope for "quick profits" given that sales will be at current market valuation. But just in case, that avenue is closed off.
(Press secretary for Phil Heatley)

Way to take a single sentence and spin it, David. The full story is here http://www.greens.org.nz/node/21397

Only the ignorant or willfully dishonest would suggest The Left hates private enterprise - as equally as suggesting The Right hates State welfare.

It's time to get educated and stop acting like this is a question of faith and religion.

The left expect the right to take all the risks and reward them if they make a profit,even though all the money the right use is usually borrowed,most of the left are lurking in Govt Departments,in full time employment and inflation proof pensions with regular salary increases,they bleat like hell when their easy peasy way of life comes under threat,and usually run to the epitome of bludgers THE NZ LABOUR PARTY,IT SHOWS, AS THE LABOUR PRESIDENT ALSO RUNS THE UNION,is in to double dipping big time.

The Left equates with control and state knows best. The Right equates with individual enterprise. Part of the reason Labour lost last November was that it overdid the control. Labour thinks people need to be looked after while National believes people should be helped to be self sufficient hence selling them state houses.

This is a cool story, as it has now permitted a political barometer - hope both left and right wing parties are taking note of the responses, over and above the story:

of the 32 prior responses to this one, fully 24 out of 33, or 72% of respondents prefer the proposal. In addition, 27 of the 33, or 81%, share the view that the left is out to promote poverty in order to support its political base. Daniel Wilson's comments are pointed and apt, with regard to the history of the last political cycle.

Conclusions then :
- A majority of approximately 74.3% within a 95% standard deviation of country support the Government's plan to allow State houses to be purchased
- A majority of 71 % approximately support David Farrar's conclusions re Labour + Green party antipathy of free enterprise and business.
- The sample here is also of the most successful group of Kiwis, those earning good money working in business, and therefore having good political clout when it comes to the thought-feeling cross section of the population
- There is a very large emotional bias against the Labour and Green Parties within New Zealand, thanks to the combined actions of the previous two coalition parties. It is likely within a probability of 71.5% that the National Party will not be unseated within the next electoral term. It is also likely that the Labour & Green Party statements will alienate 12.4% of their current voter base, weakening their position in forthcoming elections. A retraction by either party will weaken their position, which will further alienate approximately 2.3% of their electorate completely. The last result has a margin of confidence no greater than 65.4%, as of the last estimation.

With the falling trough of the current economic wave, a conservative government is the best suited to reducing government size in order to curtail spending on legislative enforcement, in almost all cases through political will of constituents. The current climate in New Zealand is interesting - the formative generation born immediately post WWII is now no longer formative within politics - and it is likely that with governmental excesses within last two parliamentary terms that the revulsion held by the voting electorate for the previous Labour + Green government policy and action is unlikely to see them return to parliament much before 2018 at the earliest, and that in a mixed coalition, and also after an exhaustion of National reforms and operational precepts to improve quality of life.

It is expected, from performance of Mr. Goff, that the Labour Party and even more particularly the Green Party, will not have a say within New Zealand politics until their current leadership either retires or dies, whichever comes first. Political will is behind the National Party, and will wane eventually, given enough time.

i read your blog with some intrest david you sound like a vary nervious ol nat . whats the matter david cant you torys hack a strong opposition . if you go back to the nats efforts in opposition they were pathetic for years . if you cant stand the heat davey boy you know what to do .

State houses have been available for purchase by the tenants in the past. I remember that in the 60s my grandparent's neighbours were buying their state house in Palmerston North

Labour campaign 2008 was...KiwiBank KiwiRail etc etc. Kiwi to them was owned by the State. What the rest of us were was not clear. But next election they could remind us of their nine years...

Kiwi Crime
Kiwi crime victims
Kiwis departed for Aussie
Kiwis on sickness benefits
Kiwi kids on DPB
Kiwi state territory expansion

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