Thursday, February 8, 2018

111, Dr Woods Speaking



But if your emergency is medical  hang up now I only like being called Dr and the other impressive thing about me is my bubbly body persona and a dress size to die for.

Handed the Wigram Seat when The Troughmaster General wanted the CHC mayoralty to round out his CV  three years after she  herself had failed miserably in her own tilt at the Mayoralty that normally could be won by a turnip on a manuka stick, adorned with a red rosette. They shared the ignominy of coming second to a TV  A lister, one Bob Parker.

A Phd in History and the challenged new Minister Of Energy seems totally ignorant of the history around  NZ electricity pricing but it seems she feels a need for some media exposure, hence an "inquiry" is announced.

The biggest recent price rises in NZ electricity came during the Fifth Labour Government when they chose to demand higher dividends from the wholly state owned power companies to augment grandiose spending, notwithstanding they were enjoying some of the best economic conditions in NZ  since the post WW2  commodity boom.
Nine years of the Key administration with the discipline engendered by that government selling 49%  of the shares in Meridian,  Mighty River (now Mercury) and Genesis bringing a degree of stability, prices rose in nine years at a rate lower than inflation.
Meanwhile the State enjoyed higher returns from their now 51% stake holding.

Contrast that result to that of our Tasman cuzzies, caught in a classic pincer move of  Global warming  climate change hysteria, translating into taxes and levies variously caused by international  "me too"  slavish  mantras coupled with phasing out of the traditional coal and gas generation where Aus is possibly the most blessed with resources of any nation in the world. They really are discovering a crunch that treatens life because people choose not to switch on Aircon, it is just too expensive.
The economic climate there  is so toxic for energy rich Australia that Banks refuse to finance any new initiatives involving hydrocarbon generation so brown outs and even blackouts are becoming a new normal when wind doesn't blow (or blows too hard) and the sun goes down.
Meanwhile they still sell coal and gas to  Asia where the resulting polution apparently is not such a pressing problem

Back to NZ pricing, we have hydro opportunity only bettered by Scandinavia and not a cracker of serious development since the much maligned by the ignorant,  Upper Clutha at Clyde, coupled with a plateau in demand leaving inflation as the only driver of price increases so until demand increases and inflationary pressures grow NZ will be OK but new hydro forget it. Melon ideology and a media bereft of any ability to understand business, will never overcome the anti profit mantra that dominates so even necessary planning is a no show.

Forget the inquiry until it is figured out what might be the problem, for now just have a cuppa tea and another cream bun, it will be a lot less expensive for Joe Citizen and you will feel better Dr Pffft.

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