Friday 22 October 2010

PM Report Card, Part V

Plastic Integrity

New Zealand's Prime Minister, John Key has made integrity--or keeping his word with the electorate--a salient principle of his tenure. This has been a commendable change--and it makes him stand out from other politicians. "Honest John" is a sobriquet not unfitting for our current Prime Minister. He has attempted to make his administration a "no surprises" regime. Of course, this commitment was provoked by his political opponents, who, when campaigning against him, constantly attacked his integrity, overtly stating that he was not to be trusted, and that once in office he would pull out a devastating hidden agenda which would wreak terrible damage to all.

There would be few now who would doubt that Key appears to be National initiated bending coalition agreements.

Such integrity would, in time, go a long way to restoring the mana of our highest politicians, were he to start a trend and set a standard which others were committed to emulate. It would also mean that the people would eventually pay a whole lot more attention to electioneering commitments, reducing the general cynicism with which our elected politicians are curently regarded.

Key's electoral integrity represents a remarkable change for which he deserves the strongest commendation.

But electoral commitments blindly kept can be a terrible albatross around the neck. Rash vows which subsequently damage the country, ought to be repented of--publicly and humbly--rather than proceeding with them stubbornly. Key has shown that he is prepared to do that up to a point. For example, National campaigned on a policy of significant and progressive tax cuts. But economic circumstances changed drastically, and quickly. When the full weight of recession hit, and government deficits began to yaw, threatening the nation as a whole, Key cancelled the tax cuts--and explained why. Excellent, mature leadership. As Keynes so acerbically asked, "when the facts conflict with my opinion, I change my opinion. What do you do, sir?"

But on other matters, Key has stubbornly stuck to his "word" despite damage being wrought. His refusal to countenance a simple, clarifying change in the Crimes Act, to ensure that responsible parents are neither investigated nor prosecuted for disciplining their children using reasonable force, despite it subsequently becoming clear that the overwhelming majority (80 percent, plus) of parents wanted the law changed, is reprehensible and irresponsible. (We have already commented on the unconstitutional device employed by Key in his defence--the matter of "instructing" the police not to apply the law--as dangerous and reprehensible and wrong.)

And then there is the matter of the Emissions Trading Scheme. In this instance, Key's stubbornness has locked him into errant foolishness--and that, despite commitments made earlier. Key had stated on numerous occasions that he did not support New Zealand being a "leader" in climate change "mitigation". During his tenure, the global warming edifice has crumbled. The official government climate research bureau, NIWA has been exposed as fabricators of the data and acting in a very sloppy, unscientific manner. The so called UN fabricated "global consensus" has collapsed. The IPCC has finally been exposed as a politicised, unscientific propaganda organ. The US and Australia have backed off establishing emissions trading schemes and the global recession has led to voters all over the world relegating climate change issues to the realms of irrelevance.

But Key has stubbornly gone ahead with our draconian, comprehensive Emissions Trading Scheme, despite it now making us a "world leader"--a position which our small, vulnerable economy cannot bear. Meanwhile, New Zealand teeters on the edge of going back into recession. Things are very, very bad, and our economy is at great risk. One of the worst things--one of the most damaging things--that governments can do in a recession is increase the costs and impediments to producing goods and services--particularly tradable goods and services. The ETS does that--and its taxation dead-weight costs are just beginning.

Key had plenty of facts, a veritable phalanx of changed circumstances, to justify a suspension of the ETS. But no, he has recklessly and stubbornly insisted upon it. He was a man of his word! He will likely go down in history as New Zealand's version of President Hoover, worsening the recession and making our economy even more vulnerable than it was before. And that does not include the wasteful, economically irrational, unsustainable distortions being wreaked upon New Zealand's rural sector as the taxpayer funded gold rush for artificial "carbon credits" gathers momentum. It will prove to be just one more government engineered and created distortionary bubble that will end in a vale of tears.

John Key has some sterling qualities. But, oh, the damage he has wrought. He deserves a big tick for his integrity, but a D minus for his foolish and stubborn refusal to face the emerging facts. Regrettably, it casts a dark pall over his other qualities.

Now a cynic may say that when Key cancelled the promised programme of tax cuts he did so, not just because of the changed circumstances, but political calculations were compelling. After all, the Left could not complain. They were against tax cuts to begin with. And on all the other cases of stubborn refusal to change, the Opposition would have been "outraged" by a change in policy. So, a cynic may say, all along Key has been bending his principles and beliefs to ensure that he hugs "the centre" and gives his political opponents no ammo.

We hope that our Prime Minister is not as superficial, nor venal, nor tawdry as that would suggest. But time will tell all.

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