Posts Tagged ‘Privatisation’

Put it out of its misery

datePosted on 23:12, March 11th, 2011 by Lew

After defending New Zealand’s broadcast news media in recent weeks, and bemoaning the lack of funding for public service broadcasting in particular, TVNZ has tonight hit rock-bottom. The so-called national broadcaster has been comprehensively shamed by TV3, and in the battle for news credibility it has capitulated having barely fired a shot.

John Campbell announced the Sendai Earthquake live on Campbell Live, and TV3 interrupted its broadcast of the high-rating Glee with micro-bulletins (leading the ad breaks) not long afterwards, and eventually ditched the show altogether to show live coverage from Japan’s English-language NHK network. TV One, in contrast, let MasterChef play to the end before switching to NHK. The digital-only channel TVNZ7 was also broadcasting coverage from NHK.

Both commercial channels continued to play ads, but other than that, did a pretty good job of balancing raw foreign coverage, context provided by their local presenters, and important updates for New Zealanders (tsunami alert status, etc.). And then, after broadcasting quake coverage for about an hour, One switched back to its regular programming, showing “Pineapple Dance Studios”, a reality TV show about “the larger-than-life exploits” of the dancers at said London studio. TVNZ’s other channel, TV2, was broadcasting American Idol. At some point (I haven’t been watching it) TVNZ 7 switched back to its regular programming: a book show of some sort. TV3, apparently without a second thought, cancelled the rest of its scheduled programming, and continues to carry the NHK feed, interspersed with relevant original content, including reports from New Zealand expats in Japan.

The contrast could not be more stark: while both One and TV3 remain general-purpose TV channels with a bolt-on news component, TV3 thinks of itself as and actually behaves like a bona fide news outlet, while for all its big talk TVNZ has revealed itself to be just another vehicle for empty escapism. TV3 demonstrated considerably better newscasting chops than TVNZ during the Canterbury earthquake of 22 February, but the comparison was unfair because TVNZ’s live broadcast infrastructure was more or less destroyed in the earthquake, so they had considerably less capacity to respond, for reasons outside their control. It is true that, given the volume of disaster coverage we have had recently, there is a need for an escapist bolt-hole — not least, for the traumatised survivors of the Canterbury earthquakes. But that’s what TV2 and American Idol are for. Make no mistake: given our current disaster awareness, the relatively strong links between New Zealand and Japan — including the presence of Japanese USAR teams still in Christchurch — that country’s broad and deep experience of coping with events such as these, and the fact that the tsunami waves are predicted to submerge entire islands in the Pacific, including, presumably some of our protectorates — this is of legitimate news interest to New Zealanders. It is apparently the largest earthquake recorded in Japan in the past century, and one of the ten largest earthquakes ever recorded. By any meaningful metric it is an important news story worthy of our attention.

At the heart of my defence of public service broadcasting lately has been the argument that public service broadcaster raise the bar of competition, forcing commercial broadcasters to sharpen their game. To quote myself (from a comment on Red Alert the other day):

The British broadcast media are very good indeed, and the main reason for this is the BBC. Yes, the BBC itself makes up a lot of the broadcast media environment there, but more importantly, it forces commercial competitors to compete with something other than lowest-common-denominator mass-market ratings. The same dynamic exists in the two other major media markets with strong and well-provisioned PSBs: Canada and Australia, where the CBC and ABC respectively set an enormously high standard for commercial competitors to meet. This is one of the major roles of public service broadcasting, especially in news: to set a high bar for competition.
If you want to solve the problems within New Zealand’s media environment, if you want to raise the bar: make the commercial media outlets compete with something that hasn’t been gutted and hamstrung. Fund TVNZ and Radio NZ properly, give it freedom to hire and retain the best people, buy the best content, and generally do what it does, and let the others work to match them. Everyone wins.

To give just one tiny example of how this might have worked: TV3 may have reconsidered its decision to air advertisements for fast food and outboard motors between shots of buildings and fleeing vehicles being swept away by ten metre waves, if there had been a viable ad-free newscast in competition with it. To give another: perhaps, if there was some competition prepared to put up the NHK feed overnight for those whose family members and friends are in Japan, TV3 might not have cut to Sports Tonight after Nightline had aired. But there wasn’t any competition. When governments underfund public service broadcasters or hamstring them by imposing the contradictory roles of a public service mandate and the need to return a profit to the consolidated fund, both roles are weakened. We get the worst of both worlds: as taxpayers, we pay public money to fund public service broadcasting, provision of which is undermined by the channel’s need to remain obedient to market imperatives, and in exchange for putting up with ads we end up with a pale imitation of a commercial broadcaster as well. One News — and to an even greater extent TVNZ 7 — supposedly a dedicated ‘factual content’ channel — disgraced themselves and failed New Zealanders tonight. The tagline “New Zealand’s news. Anywhere. Anytime” should perhaps be revised to “Anywhere. Anytime. Except when there’s third-rate reality programming to air instead.”

TVNZ, by waving the white flag tonight, has demonstrated that it’s all but worthless as a public service broadcaster. The market is doing its job for it. If the government isn’t going to fund it well enough to turn it into a proper public service broadcaster, they might as well sell it, if they can find anyone who’ll pay anything for it. If they can’t, perhaps they can just take it out behind the shed and put it out of its misery.

L

Hard rain’s a-gonna fall

datePosted on 00:14, February 3rd, 2011 by Lew


The past week has illustrated in clear terms the New Zealand Labour party’s decline as an effective opposition party. In the opening moments of election year 2011, John Key has stepped up to demonstrate the full extent of the National government’s apparent impunity. He has done this in three ways.

First, by fronting Morning Report, Nine to Noon, Campbell Live and other tier-1 hard-news media to outline his intention to partially privatise SOEs. Privatisation, since the Fourth Labour Government, has been a ‘third rail’ issue; one the NZ left is unequivocally opposed to. By going into bat for privatisation personally, and in considerable policy detail, Key confounded criticism which has been (justly) levelled at him throughout the electoral term so far that he often refuses to show up on hard media, while continuing to keep regular spots in soft formats like Breakfast, and on less rigorous media such as Newstalk ZB. He also invested his own (considerable) political capital in the enterprise, making privatisation a matter of his own judgement and credibility.

Second, he sought out and is revelling in the controversy caused by his “Liz Hurley is hot” stunt, undertaken on Radio Sport with convicted back-breaker Tony Veitch. In political terms, the first bit was no meaningful risk; Key has played the ‘frankly, I’m a red-blooded Kiwi bloke’ card several times before, always to good effect, and most notably when he informed a press scrum he’d had a vasectomy. The decision to undertake an interview with the disgraced Veitch was a considerably more risky proposition because of the nature of Veitch’s offending against his partner, combined with the subject matter of their conversation, and the fact that Key’s political appeal to women has been considerably stronger than previous National leaders. This seems clearly calculated to demonstrate what he can get away with; and the gamble has in fact paid off so well that Phil Goff today felt compelled to follow suit, suggesting a slightly sad “me too, me too” narrative.

The third of Key’s big moves was today’s dual announcement that the election would be held on 26 November, 10 months away and following the Rugby World Cup; and that he would not consider a coalition arrangement which included Winston Peters. Coupled with ruling out working with Hone Harawira outside his present constraints in the māori party, this declaration will provide considerable reassurance to National’s traditional base, and will scotch any possibility of wavering conservatives casting a hopeful vote for Winston Peters as an each-way bet. It is a risky proposition, though — Peters remains a redoubtable political force, and it is not beyond possibility that he returns to parliament. However I think Key has read the electorate well; he knows that while a small number of people love Peters, and a small number loathe him, many of those in the middle are vaguely distrustful of him. As Danyl points out, he’s managed to link Peters to Goff in a way which emphasises both leaders’ worst attributes: Peters’ polarising tendency, and the general unease and disdain with which voters view Goff. The decision to call the election so early is also bold. It means relinquishing the incumbent advantage of being able to control the electoral agenda; being able to determine when ‘government as usual’ ceases and ‘campaign season’ begins. This is an intangible but valuable benefit, and it has been traded off against another piece of reassurance: the sense that Key and his government are “playing it straight” with the New Zealand public; that they intend to run an open and forthright campaign and to seek an honest mandate for their second term. The choice of election date isn’t entirely selfless, of course — the All Blacks are odds-on favourites to win the Rugby World Cup, and even if they don’t, the tournament, its pageantry and excitement and revenue boost will bifurcate the campaign. The traditional campaign period will mostly be drowned out by this event, save for the last few frantic weeks.

In most election years, swapping agenda-setting rights for a “playing it straight” feeling would be a poor tradeoff. In most election years, a sexist stunt with a known and publicly reviled wife-beater would be a poor start. In most election years, running a campaign based on privatisation would simply be a non-starter. While the paragraphs above read somewhat like breathless praise of Key’s status as a political playa, that’s not my intent. I think he’s good, but mostly John Key just knows what he can get away with. The reason he can get away with all of these things is because there is no credible opposition to prevent him from doing so. Anyone half-decent can look sharp when playing against amateurs.

It has been Labour’s job to prevent the government from reaching the state of near-impunity they now enjoy, and their failure to do so means there is now a real danger that Key will get the genuine and sweeping mandate he seeks. To a considerable extent they were doomed in the task of preventing this from the outset, because they didn’t think it was possible that he’d ever achieve it. Clark Labour throughout 2008 fundamentally misunderestimated Key, writing him off as a bumbling lightweight, and this was a crucial error. Since well before the election — this example is from July 2008 — I’ve been arguing to anyone who’ll listen that instead of taking easy pot shots at Key based on his weaknesses, any critique should focus on his strengths. Quoting myself, from the above:

Key’s strengths [per the Herald bio], which enabled him to succeed as a currency trader: Decisiveness. Determination. Patience. Ice-cold calm under fire. Willingness to risk it all. Ability to follow through. Remorselessness.
If you want to attack John Key, draw attention to what might happen under a Key government. Given his history, he’s not some motley fool who won’t make sweeping changes – he hasn’t gotten where he is today by being timid. I think he has the wherewithal to roll out a sweeping programme of political and social change the like of which we haven’t seen since Lange, but I think that, unlike Lange, he won’t get cold feet. If you don’t like Key’s politics, I suggest you begin thinking about what might happen if the guy is given the power he seeks.

The delusion that John Key is a hapless fool who’s somehow mysteriously gotten his hands on the reins of power remains very much alive within New Zealand lefties; this was the tired old line I got spun as recently as this afternoon, by one of the internet’s best-known Labourites (with a nice dollop of ‘if you don’t praise Labour, you’re a rightie’ for good measure).

But this tendency to misjudge and underestimate Key is only part of the problem. Denizens of The Standard aside, anyone within the loop who has a modicum of reason has figured out that Key is not the lightweight he was — quite willingly — framed as. But now the narrative is set: it’s That Nice Man John Key, who drinks beer out of the bottle while tending the barbecue with Prince Harry, and thinks Liz Hurley is hot. They don’t have a credible counter-narrative, but they have to say something against the health cuts, education cuts, tax cuts, ACC cuts, pending privatisation and so on — and so they fall back on their usual tired old cliches, which, while superficially looking like what an opposition is supposed to do, lack cohesion and run counter to the established wisdom about Key and his government — wisdom laid down, in the first place, by the Labour party in its 2008 campaign.

The lack of narrative cohesion is so dire that the party claims that privatisation of SOEs is repugnant to the voting public of New Zealand; and almost simultaneously puts out a press release saying that it’s a cynical ploy to “cling to power”. The manifest incompatibility of these two propositions — cynically promoting an unpopular policy to retain power — speaks for itself.

If the inability to construct a viable narrative is symptomatic of a wider lack of ideas and direction within Labour. Election-year spin aside, their policy offering is weak as well. Their big blockbuster kicking-off-election-year policy of a $5000 tax-free zone was big enough to draw plenty of criticism about cost and targeting (including from people like Brian Easton), but timid enough that nobody was made to sit up and take notice for any other reason (sidenote: when Brian Easton, John Shewan, Chris Trotter and I all oppose something, I think you can be pretty sure it’s not a winner).

This is just the most recent example of what we’ve seen throughout the past two years: Labour’s vision, and its execution, simply aren’t up to scratch. I have no internal knowledge of the Labour party, and I don’t know whose fault this is. I guess the leadership blames the strategists, the strategists blame the policy wonks, the policy wonks blame the spin-doctors and the spin-doctors blame the MSM™. All that’s just excuse-making for losers. There are no socially-just power-redistribution schemes in politics, and if there were they would be rorted. There is no fair. The job of being in opposition is to win despite the odds being stacked against you; to do and say things worthy of the news media’s time, worthy of the government’s concern, and worthy of the electorate’s endorsement. If you’re not doing that, you’re not up to the task.

As the title implies, the political weather this election year is not going to be a warm drizzle. John Key wants a mandate; he wants a strong and broad mandate which will permit him to wreak widespread social, economic and political changes upon New Zealand’s landscape, and he is prepared to put a lot on the line to gain it. He is playing for keeps, and my instinct is that an opposition who couldn’t keep pace with ‘smile and wave’ is going to be crushed by the rampant beast which is currently girding for war. What’s more, by all accounts Key is actually, genuinely coming to the New Zealand electorate with a transparent policy offering in good faith, keeping his promise that nothing would be privatised without his first having sought a mandate to do so, which robs Labour of their strongest symbolic weapon: the “by stealth” bit of their catchcry “privatisation by stealth”. Time will tell if this holds, but at present the Key government is doing exactly what it says on the box. Labour can’t claim they haven’t known about this all along. Privatisation has been the bogeyman about which they’ve been warning the New Zealand public for at least a decade, which makes the incoherence of their recent response all the more unforgivable. That National would consider running an election campaign on this cornerstone issue, loathed and feared by so many New Zealanders, is surprising. That they can expect to do so without trying to get their agenda through on the sly is shocking. That they reasonably expect to do all that and win is unthinkable. Let there be no doubt: if Key wins this election on these grounds, it is because Labour, by failing to adequately discharge their role as a competent opposition, have permitted him to do so.

Perhaps it is not too late. Perhaps Key has overplayed his hand; perhaps Goff has a secret weapon. Perhaps a young Turk is fixing to roll Goff and his cadres and make a break for it. I do not think any of these are likely. So it may be that the one good electoral thing to emerge from 2011 is a heavy and humbling loss which would see the Labour party reduced to a meagre husk. An exodus of the lively and creative thinkers of the party to another vehicle; or the enforced retirement of the deadwood responsible for the present state of affairs; or both would clear the way for a thoroughgoing rejuvenation of the movement’s principles and its praxis and its personnel. While it would be cold comfort to the generation of New Zealanders who will bear the brunt of the Key government’s second and third-term policies, it would be a crucial and long overdue lesson in political hubris, never to be forgotten, and infinitely preferable to another narrow loss and the moribund hope that next time it’ll be different.

L

As advertised

datePosted on 17:30, April 27th, 2010 by Lew

Late last year, when the ACC ructions were underway, the professionals working in the sector warned that people would die as a consequence of the reforms mandated by the new Clinical Pathway on the assessment and treatment of sexual abuse victims.

Since then, and on the basis of the pathway, ACC has taken to declining claims despite publicly claiming consistently throughout the past six months and as recently as today that there was no cost-cutting imperative. This has resulted in a drop of more than 90% in the number of claims approved year-on-year. Explain that, if you can. Nick Smith couldn’t, though he tried to do so during Question Time. It has also caused a chilling effect in which people are simply not applying, since they’d have to undergo the trauma of the exhaustive documentation and excessive review required by the pathway only to have their claims declined.

It’s impossible to separate these reforms from the overarching government plan to privatise — partially or wholly — ACC, and when viewed in this light it becomes clear what’s going on: this is how insurers make their profits. And, just lilke it said on the box, people are dying. It’s a good thing there’s going to be a review, but what’s better is that the sector is organising their own review in parallel. Should make for an interesting compare-and-contrast. I am aware that certain senior National party MPs are aghast at the conduct of ACC, so there may begin to emerge some pressure from within the party for change, as well as from outside. We’ll see.

L

National are, true to prediction, privatising health provision. Also true to prediction they are doing so in a way that gives all the wins to the private sector and keeps all the financial risk for the taxpayer. Private providers may look low cost, but that’s only because they transfer huge amounts of cost to the public sector in terms of both management and back-stop services.

To give an example of a well known issue with private providers, every hip operation has a low very chance of complications leading to the patient spending time in an ICU.

When we cost public provision of a hip op we cost in a part of the cost of public ICU services. When we cost private provision we don’t, but we have to pay for the public ICU costs on top of the private hip op charge. That’s the first issue with the private provider efficiency – they rely on expensive back stop services being provided by the public sector. So we screw the costing model so that the private provider can make a profit off every hip op that goes well, and the public system ensures them against additional costs for the unavoidable not-so-good outcomes. Privatise the profit, socialise the loss!

The second is that there is additional cost in transferring a patient with complications from a private provider to a public ICU – we’re not only screwing the cost model to the benefit of private providers, but we’re actually incurring extra costs to do so.

Third problem? No matter who actually does the surgery “bureaucrats” are required to manage the provision, the eligibility, the bookings, the payments, etc. If one region uses eight small private providers then while each provider might look cheap and light on management there’s going be a team somewhere in the public system making sure that all the patients are allocated and treated, that the contracts are negotiated and the bills are paid and so on. Again, more inefficient that a single large provider responsible for both allocation and provision, again designed to make the private sector look lean and efficient, and the public sector bloated with bureaucrats.

Why, when so many other countries have proved that private healthcare provision is neither cheaper nor more effective thanpublic provision, when our largely private primary health provision is failing to meet demand, and when it is obvious that the private sector would only involve itself in healthcare so it could turn tax dollars into a tidy profit, is National pushing on with privatisation?

Part of the answer is ideological blindness, but part is also the make up of National and its closest friends. The links between National and the private healthcare lobby go back decades. In recent times the fundraising, personal and lobbying ties between National and the Private Hospitals Association are well documented in The Hollow Men, and a quick glance through the list of current National MPs shows just how entwined they remain, from Michael Woodhouse (ex-President of the NZ Private Surgical Hospitals Association), to Jonathan Coleman (a consultant in the medical sector) the list of Nats with personal interests in the profiteering of the private healthcare sector is deep and long.

Between ideology purity and self interest it looks like we’re on a long journey to inefficient expensive and ineffective privatised healthcare courtesy of Tony Ryall, John Key, and friends.

[This borrows from a comment I made on this thread at The Standard. Marty G has some great analysis on just how much of the current National spin about healthcare costs is … just spin]

Memo to SOEs:

datePosted on 10:53, March 19th, 2009 by Lew

Out-perform the private sector or join it.

This is the ultimatum I’m reading into Simon Power’s letter to SOE chairs.

I think it’s entirely right for the government to expect the most responsible and diligent business practice from SOEs – but I don’t think it’s reasonable to expect them to outperform the private sector which is unconstrained by the same responsibilities borne by a state-owned business. The private sector is responsible only to the profit motive of its shareholders, without the constraints of the triple bottom line and exemplary standards of conduct, transparency and long-term commitment.* Inasmuch as these constraints represent economic profitability traded off against other types of value, they require a SOE to operate at a disadvantage compared to private concerns when performance is measured purely in terms of the raw numbers.

If the ultimatum is delivered (as I expect it will be) in more certain terms during the 9 April meeting, it will mean two things: first, it should drive substantial changes in culture and efficiency, which is a good thing, and is the stated purpose. Second, if the different constraints under which SOEs operate are not taken into consideration and the performance evaluation is undertaken on strict terms of profit (and given the Prime Minister’s decree that electricity prices won’t rise) then they will be set a task at which they cannot possibly succeed, and their expected failure to outperform the market will prepare the groundwork for them to be sold during a second term.

L

* You might think that these constraints are a load of old bollocks, but that’s a different argument, since the government’s stated position is that they’re just fine.

What do they mean by private healthcare provision?

datePosted on 06:00, January 23rd, 2009 by Anita

In a number of threads people have brought up the idea that our existing publicly provided health system is fundamentally flawed and should be replaced by a privately provided healthcare system. Every time I read that argument I want to make a single (bold face) point:

The vast majority of our healthcare is provided by private providers.

The vast majority.

Take me for example, I see my GP (private provider), I have blood tests (private provider), scans (usually a private provider), take medication (private provider) and see a number of specialists (my main one is public but occasionally other public or private specialists). All except the specialists are private providers at least partly funded by the government.  One specialist is a public provider entirely publicly funded.

The only surgery I ever had was in a private hospital fully funded by the government.

So why, if the current health system is so broken, does anyone think that private provision is the answer?

I can see three possible reasons National and Act are arguing for “private health provision”:

  1. Transfer the last of the public money to the private sector to create private sector profits for shareholders.
  2. They don’t mean “private provision” they mean “private funding”, they actually want to cut the government spend and rely on individuals funding their own healthcare. Advantageous for the wealthy (who already have health insurance and would benefit from the tax cuts), disastrous for the poor who can’t afford private cover or care and don’t get tax cuts from the Nats.
  3. Ideological blindness.

Two are awfully cynical and the other requires a level of stupidity I don’t believe they have, any other offers?

The politics of state funding to private schools

datePosted on 06:00, January 21st, 2009 by Anita

In the United States for a long time the Christian Right and the Economic Right existed in parallel trajectories. They campaigned for different things, they didn’t co-ordinate, and they didn’t overlap in membership. Then they started flirting, they each recognised the political power the other had. The issue that brought them together was public funding to religious schools; it was something they both wanted. For one it was direct funding, for the other it was tax payer subsidisation of the education of the rich. The Republicans, keen to draw in the conservative Christians hugely increased the state funding of private (religious) schools

In Australia as John Howard built his brand off his Methodist values, rolled back liberal measures and developed and used the conservative Christians, his government hugely increased the state funding of private (religious) schools.

In New Zealand, as the Brash and then Key led National Party fought against a liberal incumbent and developed its relationship with the conservative Christians both leaders promised church groups that they would increase funding to religious schools. Now they have been elected and are promising to nearly double the funding to private (religious) schools.

Act says: solve everything by privatising everything

datePosted on 09:38, January 14th, 2009 by Anita

Roger Douglas was on Morning Report this morning, once again banging on about how we should privatise more stuff to save ourselves. I was interested to hear him complaining that National led government isn’t doing what he said they should, given that they clearly are. They have plans for

  • privatising more health provision
  • private prisons
  • increased funding to private schools
  • private competition in work accident insurance
  • privatisation of many local government services
  • private provision of social welfare services

Exactly what is Douglas concerned National is unwilling to privatise?