Letters to the editor

Sell them all off
The increasingly strident voices raised in condemnation of the Government's plan to sell the power companies seem, at first glance, to be espousing a logical position. Surely selling the family silver is a no-no? But is it?
Firstly, we should recognise that a power company is a business, and the idea of Government ownership of any business hasn't had political credibility since communism collapsed, and the shift of power companies to private ownership is already the case in many developed countries.
Secondly, there is the effect on the economy. The concerns, apart from those based on knee-jerk, left-wing objection to the sale of anything under government control, seem to be based on the projected returns of "only" $6 billion and the claims that this won't have any lasting effect.
To those doubters I offer the following reassurances.
In 2003 the OECD found overwhelming support for the idea that "privatisation brings about a significant increase in the profitability, real output and efficiency of privatised companies.
Latterly, an IMF study of 18 countries in Africa, Latin America and the former Soviet Union found evidence that privatisation proceeds amounting to 1 per cent of GDP tended to produce 0.5 percentage point increase in GDP growth in the year of sale and 0.4 per cent in the subsequent year, as well as lasting reductions in the unemployment rate.
On the basis of this evidence surely the question is not why sell off any part of the power companies? Should it not be, why retain Government ownership of any part of the power companies?
State ownership is an idea whose time has gone.
Time to move on, I think.
John Denton, Eskdale
Napier thinking
It is somewhat laughable to see our National MP Chris Tremain backtracking on his firm stand for the amalgamation of Napier and Hastings (Debt issue misleading, HBT, August 4).
Has he belatedly realised that the opinion poll taken by Hastings Mayor Lawrence Yule, instigated by Mr Yule and paid for by Mr Yule was not the last kosher word on the feelings of real Napier people? Oops - end-of-term general election coming up soon - could do better if he tried.
Mr Tremain's flimsy suggestion that Hastings' huge debt could be ring-fenced against Hastings ratepayers is naive in the extreme.
By virtue of the fact that Hastings ratepayers outnumber Napier ratepayers, a debt ring fencing agreement could be easily reversed once a Napier/Hastings "super council" with a Hastings majority, has been elected.
Napierites would be stuck with a colossal rates increase to sub up for the Hastings council's imprudent and untimely borrowing.
This is not scaremongering, it could easily be a fact.
Mr Tremain realises, too late, that he has made a big political booboo in backing the wrong horse and now he tries to squirm out of it.
Napier was proud of former Labour MP Geoff Braybrooke who never failed to stand up for Napier's interests. Remember his fight for Napier Hospital.
It's time to return to the Braybrooke days and dump the misguided amalgamation collaborator and give the anti-amalgamation candidate, Stuart Nash, a chance.
Forget the party political thing.
Just for once let's vote for who we think really represents Napier thinking.
Denis Fry, Marewa