This article by Jared Phillips, member of Fightback, was originally published by the Socialist Party of Australia.
At the beginning of 2011 the ruling National Party in New Zealand (Aotearoa) announced electoral policy for the partial sale of several major state assets including the Solid Energy coal company, Air New Zealand, and three major power companies – Mighty River Power, Meridian Energy, and Genesis Energy.
After its re-election and the formation of a coalition government with the ACT party and the Maori Party in late-2011, the government has pursued the sale despite the policy being very unpopular.
A TV3 poll conducted in early 2012 found that only 35% of people surveyed agreed with the sales while 3.5% were unsure and 63% opposed the sales. As a consequence a broad opposition of diverse forces has formed and driven a struggle on the streets, in the courts, and by successfully pushing for a referendum on the issue.
The stated aim of the part sale of these assets is to free up $10 billion (NZD) to reduce government debt and establish a surplus by 2013/2014. In relation to the sales Prime Minister John Key stated, “Weaker global growth, particularly in our key export markets in Asia and Australia, will put downward pressure on the demand for our exports. That will have a real and noticeable effect on the New Zealand economy, which is expected to grow somewhat slower than was predicted at the end of 2011.”
This demonstrates the connection between the world economic crisis and the asset sales. It shows that the ruling National Party is prepared to carry out policies which force ordinary people to pay for the impact of the world economic crisis. [Read more...]