Trade Should Be Between Equals
A couple of developments in the past week or so have cast a fresh light on a familiar question – should we be worried about the possibility that agents of foreign governments can buy influence in our politics and government?
The first such development was the news that the Serious Fraud Office is investigating Simon Bridges and the National party over Jami-Lee Ross’s allegations that they were guilty of election law fraud and corruption in their handling of a large donation from a Chinese businessman which they wanted to remain secret.
Whatever the findings may be on that issue (and we can surely rely on the SFO to get to the truth of the matter), the real question arises from what we have learned about the role played by anonymous donations in funding our political parties – and whether that practice (whether handled in accordance with the law or not) allows foreign interests to exert an influence of which we – the New Zealand public – are unaware.
The second development drew the Labour Party into the same morass. A Select Committee asked by the Justice Minister, Andrew Little, to investigate the possibilities of untoward foreign influence in our politics decided that it would not hear a submission from Anne-Marie Brady, a Canterbury University academic who has made the running, both at home and internationally, in warning of the dangers of just such possibilities.
Some readers may recall that Ms Brady has already hit the headlines – not only because of her whistle-blowing – but because of the suspicion that, as a response to her warnings, her house has been burgled, her e-mails hacked, and even that her car has been criminally tampered with by parties unknown.
All the more surprising, then, that an acknowledged expert on the subject should not have been heard by the Select Committee set up for the precise purpose of examining the risks of foreign interference. The Chair of the Select Committee, the Labour MP, Dr Raymond Huo, explained the decision not to hear Ms Brady on “procedural” grounds – she had apparently been out of time – but a Select Committee worth its salt would surely have overcome such a difficulty if it had been focused on collecting the most relevant evidence.
Dr Huo was supported by the Labour members of the Committee, leaving in the air the question of whether the government MPs were fully committed to their task – and the further awkward question as to whether the loyalty of members of the Chinese diaspora in New Zealand is owed to their country of origin or adoption.
What is worrying is that both of these developments surfaced against a backdrop when anxiety is expressed in many quarters about the blow to New Zealand-China trade relations delivered by the security service’s recommendation that the Chinese telecom giant, Hua Wei, should not be involved in the roll-out of our new G5 network.
It cannot be emphasised too often that a trading relationship is best regarded as conducted between two sovereign countries and not between a powerful economy on the one hand and a country on the other hand that is treated as its satellite or colony.
Our trade with China, in other words, does not and should not preclude us from standing up for ourselves, whether on security matters or on issues of internal political interference. Indeed, the reverse is the case; every time we give ground on such issues, we encourage our trading partners to believe that pressure works and to demand that we yield further to that pressure.
And if our trade with China is, as it should be, a trade between equals, we should not only be entitled to maintain our stance on issues that are important to us, but should also be able to ask for changes in the policies of our trading partner. The difficulty we face in respect of Hua Wei is not of our making but is the direct consequence of the Chinese practice of establishing major Chinese companies as arms of the Chinese state.
The supposed disturbance to our relationship occasioned by our decision on Hua Wei could, in other words, be removed by a change in the way China and its agencies do business. The ball is largely in their court – and we should never forget that the ball bounces both sides of the net.
Bryan Gould
13March 2019
The Health of the Public Debate
In a Westminster-style, parliamentary democracy such as ours – and one that, despite MMP, remains essentially a two-party contest – it is inevitable that many of us will choose a side and then see nothing but good in our preferred party and nothing but bad in their opponents – rather like supporters of a football team.
Such allegiances are often more tribal than individual. My own family, for example, saw themselves as naturally National supporters – it was in their DNA – and they were shocked when I chose not to follow suit.
Political commentators are no different – it would be surprising to find many who had not taken sides and were genuinely free from preconception and prejudice. But, for those who want to be taken seriously, it is important that they are seen to be balanced in their comments and ready to acknowledge merit, when they see it, in the views and policies of the party they don’t support, as well as errors and deficiencies in those of the party they favour.
A political commentator who recognises no such duty and prefers to take on the role of an “attack dog” for a preferred party is in danger of not only losing credibility – on the ground that every statement and opinion is potentially invalidated by bias and must therefore be disregarded – but also runs the risk of doing a disservice to the party whose cause he is trying to serve by linking it to his own unappealing exhibition of inaccuracy, prejudice, bile and aggression.
Why do I make this point? Because I think we currently have instances of precisely this phenomenon in the pages of some of our leading papers and in our broadcast media.
I have in mind one or two commentators whose keenness to promote the cause of a particular party and to denigrate other parties leads them to express themselves with scant regard for differing views or recognition of constraints (such as the law) under which politicians operate, and who exhibit over-the-top and unpleasant attitudes – derision for those who disagree, a lack of compassion for those who look to government or society for help, a readiness to bad-mouth those of our fellow-citizens who are doing it tough.
Not only is the quality of our democracy damaged by the display of such attitudes, (since we should be able to handle our differences without impugning the competence or good faith of those with whom we disagree); but we all suffer if we can no longer trust the accuracy of what we are told and conclude accordingly that no one in public life can be trusted.
The Americans, saddled as they are with a Trump presidency, are in course of discovering just how damaging to a functioning democracy a constant diet of lies and loss of trust in the media can be.
In the New Zealand context, the irony is that it is not just our pubic life in general that will be the casualty; the fortunes of the party favoured by the commentator can also be adversely affected. Many readers and listeners will conclude that the distasteful views and opinions expressed do not just spring unbidden from the mind of the commentator, but faithfully reflect those of the party being supported; and, accordingly, an unfavourable reaction will inevitably rub off on the party which is the intended beneficiary of the “attack dog’s” supposed help.
It may be that the party supposedly “favoured” in this way may have very little to do with what is essentially just a piece of “free enterprise” and self-promotion on the part of a self-appointed champion. The lesson is that political parties should take even more care in selecting their supposed friends than they do in identifying and opposing their enemies.
The proprietors of our media are also in obvious danger of being tarred with the same brush as the commentators to whom they give a platform – a decision that they alone take and for which they must take responsibility. They, too, need to recognise their duty to maintain the health of the public debate. If that debate is damaged, they – as well as their readers, viewers and listeners – will be the losers.
Bryan Gould
12 March 2019
Combatting Global Warming
Climate change and global warming are now undeniably with us. The evidence for them is overwhelming and even former “deniers” now concede that something significant (and unwelcome) is happening.
The real question now is “what do we do about it?” Some response is clearly needed. The biggest obstacle to effective action is the widespread belief, particularly on the part of those who maintain that the market must never be second-guessed, that combatting global warming will be bad for the economy.
We see this particularly when it comes to energy sources. The reliance on fossil fuels – coal, gas and oil – is correctly recognised as the principal factor in creating climate change; not only is the process of getting them out of the ground damaging to the environment, both at sea and on land, but burning them to produce electricity spews vast quantities of greenhouse gases into the atmosphere.
But doing without fossil fuels is widely seen as a recipe for economic slowdown. The government’s decision to stop the prospecting for gas and oil reserves at sea, for example, has been lamented as a step backwards in economic terms.
At first sight, this reliance on fossil fuels – and the belief that we cannot do without them – seems surprising. We live on a planet that is bursting with energy sources. We can see energy sources wherever we look – in the wind, the tides and rivers, in geothermal steam, and most of all in the sunshine.
All that we need is a little effort and investment so as to turn these natural energy supplies to account. The technology is rapidly developing to make this possible.
Nowhere is this more apparent than in the eastern Bay of Plenty where I live and which is blessed with abundant sunshine. Day after day, the sun shines on our roof and large quantities of potential (and free) energy go to waste.
My neighbours and I have decided to do something about it. A number of us have decided to install solar panels on our roofs and to harvest the energy they will produce. We are satisfied that the benefits we gain will outweigh the installation cost and that we will enjoy a future in which the cost of electricity will cease to be a major burden on our budgets.
More importantly than the boost to our finances, we believe that our investment points the way to
a solution to the climate change issue. If ending our dependence on fossil fuels can be shown to be economically as well as environmentally the way to go, the major obstacle to effective action will have been removed and replaced by an incentive to greater efficiency in every sense.
We have a plan to replace our current car, when the time comes, with an electric one (which we should be able to charge from solar power), so that we will further reduce our demand on fossil fuels. And quite apart from all these material gains, we hope to enjoy the satisfaction of knowing that, rather than exhausting the earth’s natural (but finite) resources by digging them up and burning them, we will be working with the planet to use the resources that it provides to us for nothing and in abundance.
We owe it ourselves, to future generations, and our planet, to use our human ingenuity to preserve what we have and can pass on. Best of all, we don’t need to wait for someone else – such as the government – to do something about climate change; we can take action ourselves.
There is of course a capital cost but it will be repaid by the savings we make; it might well make economic sense, in some circumstances, to extend a mortgage so as to make an investment that produces such obvious benefits.
That is not to say that there isn’t a role for a far-sighted government. Tax or other incentives could well help to stimulate the uptake of solar power (or other renewable sources such as wind power). But the real message is that we need not sit helplessly by, wringing our hands, while our planet fries. We have at least part of the solution in our own hands.
Bryan Gould
5 March 2019
Trump, Kim and Hanoi
The so-called “summit” in Hanoi between Donald Trump and Kim Jong Un a few days ago ended with no agreement, despite Trump’s earlier optimism that an agreement was available – the meeting was, in other words, either a non-event or possibly a second date that went horribly wrong.
But behind the smokescreen of fantasy and bluster, what was really going on? The episode tells us a great deal about each of the participants and, in particular, about how far Trump will go to keep himself in the headlines and to distract attention from his troubles at home.
What seems clear is that the meeting was engineered by Trump for no better reason than to serve his own electoral purposes, and was a further indication of his readiness to focus always on getting himself re-elected – which seems to be the only thing he really cares about.
Judged in its own terms, however, the summit was a failure of “deal-making” on the part of both supposedly expert “deal-makers”. Kim’s misjudgment was in believing that he could use Trump’s appetite for flattery to enable him to slide past him a deal that totally brought an end to US sanctions against North Korea while doing little to make good Kim’s promise to denuclearise.
Trump’s misjudgment was in believing what he wanted to believe – that he could soft-soap Kim into giving up his nuclear weapons. He appears to see in Kim a kindred spirit, someone he can admire and emulate and whose dictatorial powers he can envy and seek to replicate.
What is alarming – though not surprising to Trump watchers and critics (among whose number I count myself) – is the President’s willingness to subordinate what could have been an important international interaction to his own domestic political ambitions.
This smoke-and-mirrors non-drama was, of course, being played out against the backdrop of the incendiary testimony of Michael Cohen (Trump’s former personal lawyer) to a Committee of the House of Representatives as to what he knew about his former client and employer. If even a smidgeon of what Cohen said is to be believed, the judgments made by many of us about Trump’s fitness for office have been far too mild.
Perhaps the most significant thing Cohn said in his statement came, however, when he focussed on – not Trump directly – but on the Republican members of the House. “I am now – after ten years – holding Donald Trump to account – something that you, yourselves, should have been doing,” he said.
The point should surely have struck home. In labelling Trump “a racist, a conman, a cheat”, Cohen told us nothing we didn’t know already; he was simply adding his voice and his personal observations on the Trump he knew to many other voices.
What has been missing from this scenario is any effective response from Trump’s Republican colleagues – any sign that they recognise the nightmare they have helped to launch on the American public and polity. By averting their gaze, and by going along with the diversionary tactic resorted to by Trump in Hanoi, they have made themselves – collectively and personally – complicit in what looks increasingly like a conspiracy against the American people.
We do not need to regard Michael Cohen as beyond reproach – he is certainly not that – but this sounds very much like the voice of someone who has been pushed beyond what he can endure. The American public and the Republicans in Congress now need to find the courage to listen carefully to the opinions and the conclusions of someone who worked closely with Trump as a loyal henchman over many years. This evidence shows that it is not just the Hanoi “summit” that is now at risk.
Bryan Gould
1 March 2019
What Price Warm and Dry Homes?
One of the crippling disadvantages suffered by the children of the poor is that they are too often brought up in houses that are cold and damp. The impact on the health of young children is all too apparent – ask any health professional – and the setbacks they endure can all too easily prejudice their life chances, imposing a handicap from which some will never fully recover.
Most thoughtful people will react to the news that rental properties must in future be heated and insulated, so that children will have warm and dry homes, by saying – about time too! Not everyone though; some claim that it is actually bad news for families and their children.
We are offered this surprising opinion by someone who professes to know exactly how landlords will respond to this attempt to give a new generation a chance to grow up fit and healthy. Judith Collins, no less, rubbishes our supposed naivety when we welcome the news.
“It can only mean that landlords, if they are forced to make their rental houses healthy and habitable, will recoup their increased expenditure by putting up rents,” she says. So there we have it. From somewhere in the dark recesses of her mind, she has unerringly put her finger on what she understands to be the true role of the landlord – to make as much money as possible from low-income families who have nowhere else to live but in houses that are a health hazard.
She appears to understand well how some landlords operate – buying cheap properties at mortgagee sales, evicting existing tenants and putting up the rents for new tenants, doing little or no maintenance (let alone improvements) and then selling the property off at a price and healthy profit – (perhaps that should be “unhealthy”) – that reflects the income stream they have been able to screw out of it.
She warns that requiring rented houses to be healthy and habitable could reduce the number of rental properties available, and could lengthen the waiting list for state or social housing – and this from someone whose government sold off large numbers of state houses and stopped building new ones.
Her message seems to be that trying to improve the early years of innocent children is futile because any attempt to improve their health and lives cannot survive the demand by private landlords for ever-rising profits, and should therefore be abandoned.
And this despairing tale of woe is embellished by lamenting the prospect of a capital gains tax which, she says, will further discourage actual and potential landlords from buying rental properties. So, it is fine for landlords to charge high rents that poor families have to pay out of their earned income on which they pay tax, but the huge profits and capital gains the landlords make from their operations must be tax-free?
Any discussion of these issues always calls to my mind a little-known speech made by Winston Churchill in 1909 when he was a budding young Conservative politician. Churchill addressed the issue of those who invested in land or real property, did nothing with it, but pocketed the lion’s share of its increasing development value.
Who creates the development value? Churchill asked. The development value of land and property, he said, is created by the community. It is the community that funds and provides the roads, the railways, the sewers, the water supplies, the communications connections (nowadays electronic) – all the services that allow the property to be developed. It is then the schools and parks and shops and factories that others build around it that enhances the demand for, and therefore the value of, that same land or property.
Churchill concludes by asking the obvious question – why should someone who has done nothing but sit on the land walk off with all the development value? And why should they pay no tax on that great windfall – while others have to pay tax on every penny they earn?
It may be that Judith Collins, in leaping to their defence and professing to know their minds, has unfairly maligned landlords. We must hope that at least some of our leaders have a better and kinder view of human nature.
Bryan Gould
26 February 2019