The big political issues of the week have been the Fonterra contamination scandal (which I covered here) and the ongoing state surveillance of the media (covered here), but there have been plenty of other important political stories to round up. So below are some of the most important, interesting and insightful political items of the week.
The Government's bailout deal for Rio Tinto has been well received by those affected, but by no one else it seems. The must-read analysis of the issue is Tim Watkin's Tiwai Pt - just more expedience and poor dealing. He says that the Government was 'Damned if they did, damned if they didn't', and he intelligently surveys the political issues involved. But the Government's difficult situation doesn't get it off the hook even with those on the political right, such as David Farrar, who has condemned Rio Tinto's achievement of the deal, saying he's 'bloody annoyed they screwed $30 million from the taxpayers as a subsidy. I think the Government shouldn't have given them a cent. If the smelter closes, so be it. It is not the job of taxpayers to subsidise unprofitable industries' - see: Rio Tinto screws taxpayers for $30 million. Today's Herald editorial has also expressed disappointment - see: Smelter deal $30m worth of shortsighted thinking. Business analysts David Hargreaves also says There was a certain inevitability the long-suffering taxpayer would be 'invited' to cough up. Other excellent business articles on the story include James Weir's Rio tipped to fast-track smelter sale and Jason Krupp's Analysts: Tiwai a quick fix.
University economist Eric Crampton has also criticised the subsidy provided by the Government, expressing agreement with Labour's criticisms of it, but he has also asked for further clarification from Labour: 'It would be good to hear a clear statement from Labour that they are opposed to corporate welfare of any kind, and, if it were them, they would have just let Rio Tinto close down the smelter. As it stands, they might be saying that National paid a subsidy for the wrong reasons, but they would have done the same in order to protect jobs in Southland. I haven't seen the news coverage. Has anyone seen if a journalist has put this question to Labour?' - see: The Tiwai Point Subsidy.
Of course, for the Government, the deal with Rio Tinto is all about the upcoming partial privatisation of Meridian. But TVNZ has the latest public survey, which suggests problems for the share float: Kiwis not keen on Meridian Energy shares - poll.
The National Party goes into its annual conference tomorrow. The party will be reflecting on a lot of difficult issues the Government has been facing, and will be considering next year's potential post-election coalition options - see Radio New Zealand's National goes into conference buoyed by polling. For considered discussion of National's high polling, and where public support is going, see Tim Watkin's Poll of Polls update - stopping the rot & what Winston wants and Chris Trotter's Who Are The Fifty Percent?. But don't expect too much of interest to come out of the National Party conference. As Cameron Slater explains, 'there will be nothing interesting, just hectoring from ministers with some canned questions available. The ninth floor have spiked anything controversial' - see: Why is National's conference so boring?. Sadly, Slater says, 'Conferences used to be fun, interesting and interactive. Now delegates are herded like sheep and told to listen, not speak. It is no longer an opportunity to exchange ideas with MPs, it is an opportunity for delegates to be spoken down to by MPs who no longer think they need to listen'.
