Michael Field's Trickles, Re-engagement & Respect, PM on Budget & Reforms, NZ Media Shamed

THE TROPICAL CYCLONE ALERT HAS BEEN CANCELLED but forecasters say the tropical depression remains - with winds of up to 50km per hour. Heavy rain is expected to ease in most parts of the group from today. No major flooding is expected but flash flooding could occur in some areas.

EYE OPENER (in more ways than one). The PM opened the new eye clinic today in front of a large crowd. 

OPEN LETTER TO PM.  I withdrew this posting as a reader suggested. It was poorly timed. I'll re-post  at a more appropriate time in the next week or so.

MICHAEL FIELD's OLD TRICKS.  A reader writes: "Croz, Good old Michael Field is up to his old tricks again, willfully distorting the truth in a supposedly straight news story to push his own political barrow. Witness his updated story this morning for Fairfax Media's Stuff NZ (click here).

'One of Fiji's major exporters, Fiji Water, has quit the Pacific country and its military strongman Voreqe Bainimarama has said it is good riddance. ...In a statement this morning, Bainimarama, who seized power in 2006, accused the American firm of transfer pricing and not caring about Fijian people.... He has made it plain his regime intends to seize the remaining assets of Fiji Water – one of the world’s largest bottled water operations – and sell them to somebody else.'

Where in any of this did the PM say "good riddance"? And where did he "make it plain his regime intends to seize the remaining assets of Fiji Water"?

This is total fabrication and I think this guy should be reported to the regulatory authorities in NZ for willful misrepresentation. He's a complete and utter disgrace."

Field's Stuff heading read "Bainimarama sends Fiji Water packing." Fiji did nothing of the sort. The company closed its plant and dismissed its workers.

P.S. A reader thinks I'd missed the point on Fiji Water (actually, I'd merely published in full statements from the company and government).  He writes: "Croz misses the point which is perhaps why we never hear him on radio any more - and Field endlessly - even on the BBC last night! " No. That is not the reason the NZ public hears only one side of the Fiji saga.

RE-ENGAGEMENT MUST BE BASED ON MUTUAL RESPECT. Foreign Affairs and International Cooperation PermSec Solo Mara  has told an Australia and New Zealand business forum meeting that Government will welcome a fuller re-engagement with Australia and New Zealand "in a manner that is not discriminatory, accords mutual respect and recognition of the political changes that have already taken place." He said there should be no doubts that the current Government is at the helm of  moving the country forward to a brighter and better future for its children.

Mara told participants that Fiji’s support to business communities and their business partners remain resolute and the Government is willing to work within the limited confines of its existing foreign relations with the Governments of Australia and New Zealand. Fiji’s trade relations with Australia has a value of about $1.6million annually while Fiji accounted for 37% of New Zealand's exports to the region.

PM ON BUDGET AND INSTITUTIONAL REFORMS. The PM has called on the nation to accept the 2011 Budget after some aspects were criticized by some organizations. He said "Government is committed to reforms in the civil service, state-owned enterprises and other public entities."

Some reforms have commenced, some are ongoing, and the short term ones have been completed. These include the change in management of the government quarters, the merger of various government funded entities, re-organisation of entities, the divestment of shares and sale of businesses, outsourcing, and the participation of the private sector with government in joint ventures.

On his recent China trip he said he had met with many potential investors and thought the visit a success.

GOVERNMENT TO QUESTION NZ PAPER. "Appropriate action [is planned]  against a renowned New Zealand newspaper and website for allegedly running a false story based on rumors that Prime Minister Commodore Bainimarama had passed away last week. PermSec. for Information Sharon Smith Jones said it is irresponsible that the media outlet did not check the facts first before running the story.

ONE-EARED RADIONZ AND VAT. I'm not surprised my radio asked Mahendra Chaudhry what he thought about the 2½% increase in VAT, taking it to 15%, the same as New Zealand. They knew what he would have to say: it's a  "devastating blow" to the poor, and the low and medium income earners, and  "once again people are being made to pay the price for indiscriminate government borrowings."

But why did they not also ask what the man who delivered the budget have to say? 

Aiyaz Sayed-Khaiyum dismissed the claim, pointing to  targeted assistance programmes for the unfortunate in the budget, and the recent 9% reduction in the prices of many food items through the Commerce Commission price determination. He also thought that political parties like the FLP are just trying to use the issue as a political point scoring. Had this  not occurred to RadioNZ? He could also have said that the Qarase government was going to increase VAT in 2006; that Government has held off the increase for four years, and that the recommendation came from the International Monetary Fund.

I'm not happy about the VAT increase either but government is trying to balance the need to increase government revenue (and decrease costs) with the need to protect the poor. It's the same as its attempt to balance the claims of employers and minimum wages, and the need to attract and retain investment and obtain fair tax returns from the investors.


FORMER NZ DIPLOMAT Gerald McGhie has a new posting on his new blog. Click here.