Page 962

Bryce Edwards’ Political Roundup: Why we care about resignations at a TV company

]]>

Political Roundup by Dr Bryce Edwards.

[caption id="attachment_4808" align="alignleft" width="150"]Dr Bryce Edwards. Dr Bryce Edwards.[/caption]

The travails of celebrity newsreaders and corporate CEOs don’t normally occupy a central role in politics. Yet this week the resignations of Hilary Barry and Mark Weldon have been lightening rods for concerns about the state of the media and political debate.

A healthy democracy relies on a strong and challenging media. That’s why there continues to be so much concern over what’s going on with New Zealand’s largest private broadcaster, Mediaworks and it’s TV3 channel. The decline of the media company’s role in its fourth estate functions has been the substance behind the highly personalised focus on figures such as Hilary Barry, John Campbell and Mark Weldon. Ultimately these people might not be centrally important to the future of the media, but they have become vital symbols for political concern about public debate and the distribution of information in this country. 

There’s certainly been plenty of dancing on Weldon’s grave, with some very strong reactions to his resignation on Wednesday – you can see some of the more interesting of these in my compilation blog post, Top tweets about Mediaworks, Mark Weldon and Hilary Barry

There were also some interesting public statements from TV3 insiders in reaction to Hilary Barry’s resignation. For instance Jon Bridges (@jonbridges66) tweeted “As a Mediaworkser I am really sad, really very sad, concerned, disturbed, upset and really a bit sad to hear you are leaving”.

Of course, concern turned to jubilation when the CEO then resigned. Summing up the Twitter joy, Dovil ‏(@Dovil) commented, “it’s like tapping in to what sports people must feel when they win, but for nerds.” And former editor-in-chief of the Herald, Tim Murphy ‏(@tmurphyNZ) pondered: “The Weldonfreude might be getting a little out of hand…..”

For other examples of the extraordinary celebrations occurring amongst former and current staff of the company, see David Farrier’s I yelped for joy when I found out Mark Weldon had left, and Stuff’s Mediaworks staff say ‘cheers’ to departure of CEO Mark Weldon.

What Mark Weldon did to the media

A personal account of life under Weldon is given by former broadcaster Jeff Hampton, who says the CEO arrived and changed the whole ethic and nature of TV3: “The man with no media experience then set about dismantling an organisation which had credibility and stood for the underdog, in an effort to turn it into money-spinner based on reality television” – see: Former TV3 reporter says Mediaworks ‘disintegrating’

For a more substantial explanation for why many politicos have been disgruntled with Mark Weldon’s tenure at Mediaworks, see Colin Peacock’s Mark Weldon’s MediaWorks legacy. In this he outlines the shift from a company serious about news and public broadcasting to a one orientated to entertainment: “MediaWorks TV channels were refocused on entertainment and reality shows. Mr Weldon said news and current affairs – which had been regarded a strength for TV3 – were not performing commercially. Concerns about damage to the company’s reputation or brand were brushed aside.”

Likewise, Tom Pullar-Strecker relays how the Weldon era unfolded, detailing how the CEO “talked about how shows like The Bachelor, X Factor, The Block, MasterChef and Dancing with the Stars had become his life.  The former Olympic swimmer sat down on the couch with his wife, branding consultant Sarah Eliott, to watch X Factor, personally fired misbehaving X Factor judges and phoned ‘bachelorettes’ exposed by other media for almost forgotten convictions” – see: Olympic swimmer Mark Weldon jumped in the deep end at MediaWorks

“When MediaWorks chief executive Mark Weldon resigned” writes Raybon Kan, “the tribute flowed in. That’s not a typo. There was only one tribute.” Kan continues with a cutting commentary on where the type of “vision” espoused by Weldon takes us – see: Bravo TV – numbing us all to the world’s problems.

On the political left, Weldon was hated, not only because of his close connection with the prime minister, but also, The Standard argues, because he had left “TV3 a dessicated husk. That’s a real shame, because for many, many years, the rivalry between the private company and the state owned TVNZ inspired some excellent reporting. But recently, both networks have gloried in dumbing down, and we are the real losers” – see: Mark Weldon Wins NZ’s Biggest Loser. His legacy is described as “successfully retooling TV3 as a comedy channel”.

The criticism is clearly that Mediaworks was putting more emphasis on “dumbed-down” TV at the expense of the important function of holding power to account. As Martyn Bradbury put it, “A democracy needs watchdogs on power, TV3 stopped being a watch dog and became a lap dog the moment Weldon took over” – see his blog post, Was Hilary Barry’s departure that much of a shock and what most analysis of TV3 has missed

And it hasn’t just been leftwing bloggers making this argument. After Hilary Barry resigned, the Herald expressed strong concerns about the direction the company was going in: “Since it set up in competition to the state broadcaster, TV3 has given TVNZ a serious run for its money. Serious, because against most predictions at the time, the private channel did not go for the lowest common denominator in cheap, commercial entertainment. It became from the outset, and has remained, a strong and conscientious broadcaster of news and current affairs” – see: MediaWorks’ loss of talent worrisome

Of course, changes in the media landscape have affected many other media outlets too. And arguably this is leading to the public losing their faith in journalists and broadcasters, with two recent opinion polls indicating a decline in public trust. Victoria University’s Institute for Governance and Policy Studies recently published a Colmar Brunton survey, which showed that only eight per cent of the public have a strong trust in TV and print media, and respondents report that their trust is declining – see the report, Who do we trust?

Likewise, another recent survey found that the public mistrust the media more than they do business or government – see Holly Bagge’s In purpose and peers we trust, but in media we don’t

Obviously, therefore, the problems in the media go well beyond anything that Mark Weldon has done. And economist Shamubeel Eaqub explains that “Mark Weldon’s time in MediaWorks is emblematic of the harsh reality of the media sector, the changes that must happen and the inevitable human cost of these changes” – see: Mark Weldon – a casualty of the brutal rationalisation in the media sector.

Following Jennings’ departure, Karl du Fresne wrote an interesting column surveying the media landscape after the digital media revolution and says “’Spotlight’ reminds us what we’ve lost”.

And for an even bigger picture of what’s going on in the media industry as well as Mediaworks, see Peter Thompson’s Normal Service Will Not Be Resumed: Contextualising the Demise of Campbell Live One Year On. He argues that changes at Mediaworks “should be understood as a symptom of deeper structural problems, including the financialisation of news media, intensified competition across the value chain in response to convergence, and efforts to consolidate and restructure news production.”

What went on behind the scenes?

For the best account of why Hilary Barry’s resignation was a big deal, see Duncan Greive’s Can TV3 survive Hilary Barry’s departure? He argues that the network was happy for many of the other staff to depart, but Barry’s resignation was different: “It’s a cataclysmic event for the organisation, a multi-pronged nightmare with implications stretching from dawn to dusk and across all platforms.  Barry is the most universally beloved figure in New Zealand television, a woman who managed to embody everything TV3’s brand once stood for – smart, funny and relatable in a way that TVNZ’s slightly aloof figures have struggled to match”

Barry’s resignation then set events in motion that eventually toppled the CEO, with other senior figures such as her co-presenter Mike McRoberts apparently lobbying management and the board for Weldon to be axed – see Ellen Read’s MediaWorks staff called for board action on Weldon

And it was the way Weldon handled Barry’s departure that seemed to seal his fate – see Hayden Donnell’s Mark Weldon’s final Hilary Barry screw up

Perhaps one of the most revealing insider accounts comes from another recently-departed senior executive – see David Fisher’s Former MediaWorks news chief Mark Jennings on Mark Weldon’s resignation: ‘It was always going to end in tough situation’. This article also quotes Massey University journalism lecturer Dr Cathy Strong as saying Weldon’s departure was “really good news for journalism”. She explains that the harsh judgement of Weldon “shows that the purge of solid journalism was not acceptable to the New Zealand public”.

So, what will happen next for Hilary Barry? For speculation on whether she might rescind her resignation, and who might replace Weldon as CEO, see Corazon Miller’s With Mark Weldon gone will Hilary Barry rethink her resignation?

Whatever happens, Barry’s place in the pantheon of TV news presenters is now assured – alongside luminaries such as Lindsay Perigo (who pronounced TVNZ as “braindead” when he resigned), John Hawkesby, Carol Hirschfeld, Judy Bailey and Angela D’Audney – see James McOnie’s Where will Hilary Barry rank in the TV Newsreader Hall of Fame? 

But has the media lost the plot in its coverage of the Barry departure? John Drinnan writes on his new media-focused blog site about how the “Media have got caught up in the idea that Hilary Barry is a Princess Of The People for New Zealand TV” – see: An angel at our newsdesk. Drinnan advises, “If you love Hilary, let her go.”

And has Weldon been given an overly harsh time? Given that he was only doing the job he was hired by Mediaworks to do, some have sympathy for the departing executive. For example, see the parody account of what the CEO might be saying on the NZ’s Got Talent’s blog site: My Work Here Is Done – by Mark Weldon

And for another account of Weldon’s success at Mediaworks, see Andrew Dickens’s Online attacks on Weldon classless and rude. He argues that “Weldon has been a success. The books are healthier and as of today the ratings are rising. The Newshub restructure is genius”. What’s more, according to Dicken’s, the “brutal and ugly evisceration of Weldon” has been “classless, rude and lacking any grace and style.” 

No matter, says Toby Manhire. Weldon may have found himself “whooshing along the rubbish chute down which he’d previously ushered so many TV3ers”, but his legacy will live on as “the MediaWorks board has emphasised that the strategy remains firmly in the Weldonian mode.” To that end, Manhire says the solution is clearly to present the news in a reality TV format. He has some suggestions in Dancing with the Cops and other reality TV ideas.

Finally, for satire about recent changes in the media, and Mediaworks in particular, see my blog post, Cartoons about the state of the New Zealand media in 2016.

]]>

NewsRoom_Digest for 6 May 2016

NewsroomPlus.com image

Today’s edition of NewsRoom_Digest features 4 resourceful links of the day and the politics pulse from Friday 6th of May. It is best viewed on a desktop screen.

NEWSROOM_MONITOR

Noteworthy stories in the current news cycle include: the Ministry of Business, Innovation and Employment wanting to ban people from retrofitting residential buildings with metal foil insulation; SkyTV telling investors the company is losing thousands of customers from its Pay TV service; and the Ministry of Social Development cutting nearly $400,000 in funding to community providers – in a newsletter sent out this week, the Ministry says 14 service providers won’t have their contracts renewed when they expire at the end of June. 

POLITICS PULSE

Government: Corrections to acknowledge Mother’s Day on Sunday; More books for visually impaired a step closer; ECan to transition to fully elected council; Trade Minister Welcomes Tribunal TPP Report;Low-alcohol sales Bill passes first reading;McCully to New York for UN meetings;Nominations open for school boards; Junior High school opened in Hamilton; New Palmerston North cycleway will enhance city connections

Greens: Govt should support farmers into high-value organics

New Zealand First: Compass Group Hospital Food To Be Served At Taranaki DHB?;Govt’s Inaction Continues To Oblige Foreign Corporates; Warning To Foreign Buyers – Lie And You Lose;Where Are The Bridges Mr Bridges?;Yet Another Failure, More Staff Put At Risk!

LINKS OF THE DAY

ASSAULTS AND ROBBERIES: Statistics NZ released today an analysis of reported victimisations of assault, sexual assault, and robbery offences, in public places, for the 2015 calendar year. The tables show victimisation counts by area unit and meshblock, and victimisation rates per 10,000 estimated resident population by area unit. Download the tables: Analysis of public place assaults, sexual assaults, and robberies in 2015:http://www.stats.govt.nz/browse_for_stats/people_and_communities/crime_and_justice/assault-sexual-robberies-2015.aspx

DELOITTE SOUTH ISLAND INDEX: Deloitte South Island Index kicks off the 2016 calendar year with 6.8% gain in the quarter to 31 March 2016 Companies on the Deloitte South Island Index overcame an anxious start to 2016. Fears of a global equity market turndown impacted local markets in the initial weeks of the year, however, these fears waned over the quarter as South Island listed firms built on the strong growth of the 31 December 2015 quarter. To see the full Deloitte South Island Index quarterly report, go to www.deloitte.com/nz/southislandindex

ENDS

FOIL INSULATION BAN: The Ministry of Business, Innovation and Employment has announced it is beginning consultation on a proposal to issue a ban that will prevent people retrofitting residential buildings with foil insulation. Click here for the MBIE consultation document on the proposed ban on the use of foil in existing residential buildings:http://www.mbie.govt.nz/info-services/building-construction/consultations/consultation-foil-insulation

WOMEN IN LABOUR FORCE: Many more women are heading to work, and fewer parents are staying out of the labour force to look after children compared with 30 years ago, according to Statistics New Zealand. Read more:http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/30-years-hlfs-mr.aspx

And that’s our sampling of “news you can use” for Friday 6th of May.

]]>

Waitangi Tribunal upholds claimants concerns on TPPA, but opts for pragmatic outcome – Kelsey

]]>

Source: Professor Jane Kelsey.

The substance of the Waitangi Tribunal’s report on the Trans-Pacific Partnership Agreement (TPPA), released today, vindicates the claimants’ concerns, especially about foreign investors’ special rights under the Agreement.

But Professor Jane Kelsey said “in the end pragmatism held sway with the Tribunal’s conclusion that the Treaty of Waitangi Exception provides Maori with ‘reasonable protection’.”

Professor Kelsey was the expert appointed by the claimants.

‘Reading the report, it is clear that the Tribunal accepted the evidence of its appointed expert, Associate Professor Amokura Kawharu, and myself that there are real risks in the TPPA that did not exist in previous agreements, in particular with the rights of foreign investors to bring investment disputes. It was also ‘troubled’ by ambiguities and uncertainties in the Treaty Exception’, she said. ‘But it could not reach any conclusions about how these would pan out in the future’.

‘The clue to their pragmatism comes at the end of the report where the Tribunal acknowledges the practical problem of reopening a negotiation. The Crown made that inevitable when it refused to engage in the Tribunal process until the negotiations had been concluded, foreclosing any constructive review of the Treaty Exception to address those ‘troubling’ issues.’

Key aspects of the claim dealing with intellectual property and access to affordable medicines were considered outside the narrow terms the Tribunal set when decided to proceed with the claim under urgency.

‘I advised the Tribunal that these matters are not protected by the Treaty Exception, and is not clear if, when or how they will be addressed’, Professor Kelsey said.

Another outstanding concern is how the Crown will resolve the conflict between the Wai-262 report on traditional knowledge and the requirement in the TPPA that it implements in domestic law the UPOV 1991 convention that gives patent rights over plant varieties. The Tribunal appears to retain a watching brief over that issue.

Professor Kelsey advised the government, and especially the Prime Minister, to read the report clearly to understand this is not a victory for them.

‘I believe the government is about to enter into talks with the iwi chairs about revising the Treaty Exception. However, it needs to follow the Tribunal’s advice and cast the net more broadly in response to the Tribunal’s concerns about the failures to engage with Maori, and take advantage of the expert analyses that have exposed the flaws in the Treaty Exception and the risks in these new generation agreements.’

]]>

New Zealand Parliament select committee report on TPPA shows inquiry needed into treaty-making process

University of Auckland law professor Jane Kelsey has labeled a New Zealand Parliament select committee report on the Trans Pacific Partnership as “pathetic” and a “travesty of democracy”.

She said the Trans Pacific Partnership Agreement has impacted on New Zealand’s democratic process and an abuse of the legislative process has been in evidence “from day one”. 

According to Professor Kelsey the abuse has continued with a “pathetic report released by the Foreign Affairs Defence and Trade committee yesterday”.

“Other countries are confronting the democratic deficit surrounding such negotiations and reviewing how governments can better respond to people’s legitimate concerns. In New Zealand, there has been an unprecedented groundswell of criticism of the TPPA from health professionals and economists, from Maori, unions and the tech industry. The government has treated them all with contempt,” she said.

Professor Kelsey described the select committee process as ‘a total farce’. The report was written while submissions were still being heard, after the government fast forwarded the report date by three weeks. The reasons were never explained, but were likely intended to pressure the Waitangi Tribunal in writing their report on the TPPA, which is now scheduled for release later today.

Kelsey said the government majority on the committee ‘might as well have not bothered attending the hearings. Their contribution is a truncated version of MFAT’s patsy National Interest Analysis tabled in Parliament and which forms the bulk of the report.’

All the opposition parties criticised the secrecy of negotiations and truncated committee process.

Labour has said they will vote against ratifying the TPPA ‘as it stands’. But their minority report addresses only two narrow issues: foreclosing the right to ban foreign purchasers of residential housing and the economic modelling. Anything that was critical of previous agreements that Labour negotiated was ignored, including investor-state dispute settlement (ISDS), despite clear evidence that is highly problematic.

Both the Greens and New Zealand First go deeper, with the Greens proposing some interesting ideas about processes for future agreements.

But Professor Kelsey insists that ‘ad hoc changes are not enough. We desperately need an independent inquiry into the treaty-making process that is freed from the overpowering influence of the Ministry of Foreign Affairs and Trade’.

‘”This is urgent. The government is currently engaged in three other major negotiations that are being conducted under the same shroud of secrecy and have potentially far-reaching consequences – including a round of negotiations for the 16-country Regional Comprehensive Economic Partnership in mid-June in Auckland for which no information is about engagement is yet available,” Professor Kelsey said.

]]>

NewsRoom_Digest for 3 May 2016

NewsroomPlus.com image Today’s edition of NewsRoom_Digest features 2 resourceful links of the day and the politics pulse from Tuesday 3rd of May. It is best viewed on a desktop screen. NEWSROOM_MONITOR Noteworthy stories in the current news cycle include: Land Information Minister Louise Upston launching an independent inquiry into how the Overseas Investment Office (OIO) carries out its good character test, after it approved a Taranaki farm being sold to two Argentinian brothers; researchers saying they believe they have found the wreck of “The Endeavour”, which Captain James Cook commanded on his first voyage of discovery to New Zealand ; and the Government is crunching the numbers to try to reduce crime rates and improve outcomes for offenders and victims. POLITICS PULSE Government: PM’s Education Excellence Awards finalists;Peter Hughes new State Services Commissioner; 1 million doses of influenza vaccine distributed; Speech: John Key – Speech to NZ Institute of International Affairs;New Children’s Commissioner appointed;Minister visits Sinai and Golan Heights; New approach to justice sector investment;Speech: Amy Adams – Social Investment in the Criminal Justice System; New Community Leadership Fund announced;Patient feedback improves the management of long-term conditions;Tax Bill to improve, strengthen tax rules Greens: Congratulations to new Children’s Commissioner; Minister’s target put above giving kids the best start Labour: Public behind Healthy Homes Guarantee LINKS OF THE DAY JUSTICE SECTOR INVESTMENT: Justice Minister Amy Adams has announced details of how the Government is planning to apply the Social Investment approach to the criminal justice system. More information on the Investment Approach to Justice will be made available at www.justice.govt.nz/justice-sector MONTHLY ECONOMIC INDICATORS: The April Monthly Economic Indicators (MEI) was published today on the Treasury Website. The report provides a summary of recent economic events.Read more at:http://www.treasury.govt.nz/economy/mei/apr16 And that’s our sampling of “news you can use” for Tuesday 3rd of May.

]]>

Bryce Edwards’ Political Roundup: Insights into Government processes and wealth protection

]]>

Political Roundup by Dr Bryce Edwards.

[caption id="attachment_4808" align="alignleft" width="150"]Dr Bryce Edwards. Dr Bryce Edwards.[/caption]

Insights into Government processes and wealth protection: If you want to know how the political process really works, and how the wealthy protect their assets from taxation, then the ongoing Panama Papers saga is proving to be an important case study. This week’s revelations about lobbying over tax rules should start a new debate about wealth and power in New Zealand. 

For a window into how lobbying works in this country, it’s worth looking at the Greens’ revelations about the Prime Minister’s lawyer and boutique trust operator, Ken Whitney. For the most comprehensive account of the saga – and why it is problematic for John Key – see Matt Nippert’s The Antipodes email: John Key, his lawyer and foreign trusts

At the heart of this latest chapter about the foreign trusts operating in New Zealand is a report from the Inland Revenue voicing serious concerns about New Zealand’s foreign trust regime and then an email from the PM’s long-time personal lawyer and executive director of boutique trust specialist Antipodes using the PM’s name to back his bid to oppose any changes to our foreign trust industry. It has raised questions about John Key’s actions and, as Green’s co-leader James Shaw points out, it appears to show preferential access undermining the integrity of our political system.

PM’s response

The Prime Minister has said that his comments to Whitney that no changes were happening to the sector were specifically in response to an inaccurate newspaper story. He insists the conversation was nothing unusual: “it happens all the time… People ask me about particular issues. I don’t live in a vacuum. I do what is absolutely the correct thing to do, which is send them off to the minister.”

Nippert reports that Ken Whitney has “denied any conflict of interest between his role working for John Key and lobbying the government, or any preferential treatment from Ministers”, and Todd McClay has responded that “The assertion that I was influenced by Ken Whitney’s relationship to the Prime Minister is insulting.”

See also Matt Nippert’s follow-up report World famous, but secret in NZ, which looks at the “bounty of information on the scale, motivations and self-impressions of an industry that has largely operated under the radar.”

TVNZ’s Andrea Vance also has an excellent summary that clearly lays out the timelines involved – see: John Key’s lawyer’s involvement in lobbying government over tax laws revealed.

A representative of the PM’s office later reiterated Key’s stance on the normalcy of being asked such questions in informal situations and his practise of referring them to the appropriate minister, saying “These are just more desperate claims from the Greens” – see Chris Keall’s Antipodes email: Key calls Greens ‘desperate’.

Integrity deficit in New Zealand governance

Newstalk ZB’s Frances Cook points out “It’s exactly the sort of personal connection to the scandal that John Key’s been trying to avoid. It undermines trust, and rightfully so. It raises questions of preferential access, of who has the Prime Minister’s ear, and what could be said in personal conversations that we have no record of” – see: PM’s trust issues not a good look.

She says Key’s insistence that it was just a casual conversation “requires us to take him at his word, as it’s difficult to prove either way. His critics will hold it up as the smoking gun that proves he is linked to foreign trusts, our tax haven reputation, and that he only wanted to fix the problem when it was brought to the public’s attention. His fans will say the email was penned by someone else, and proves nothing about the Prime Minister’s stance on the issue.”

Indeed, Martyn Bradbury claims Latest revelations Key’s trust lawyer contacted Minister to stop IRD investigating trusts in 2014 is a gun caught smoking.

“My god”, he says, “this is becoming out right corruption now”. He recaps: “Key has built a tax haven, was instrumental in personally intervening in 2010 to create it, had his lawyer lobby the Minister to stop any crackdown and then gets caught out benefiting from the very trusts he’s helped build. If you are not incandescent with rage now, you are the problem!”

Gordon Campbell has a more measured response, describing it as “really shabby, banana republic kind of stuff.” At the very least, Campbell says, “it backs up the calls being made by the Greens, Labour and New Zealand First for a wide-ranging and truly independent review of (a) the rules and (b) the actual operations of foreign trusts. We need more, and better, than the ‘on paper’ review that has been entrusted to the government’s chosen tax expert, John Shewan. On one level of course, such incidents merely confirm the perception that this is a government run at the behest of insiders, for the benefit of insiders. And which is led by a PM carefree and/or careful not to know, about the details” – see: On not crying foul Argentina.

According to No Right Turn, “Its an unpleasant insight into how policy is really made in New Zealand – the PM’s rich mates having a word in his ear, and Ministers doing what they want because they are reminded of the relationship. And all the worse because Key’s ‘defence’ is that this ‘happens all the time’” – see: A problem of trusts.

“If Key was a normal Minister there would be intense pressure on the PM to stand him down” points out Danyl Mclauchlan – see: The cost of doing bidness. Instead Mclauchlan predicts we’re in for a “period of National loyalists and beltway types doing exaggerated eyerolling. ‘Of course the Prime Minister’s personal lawyer is a lobbyist for the offshore trust industry and used his influence to protect his highly unethical industry that provides no benefit to New Zealand. What’s wrong with that? That’s how politics works, dummies. Duh!’”

Today’s Dominion Post editorial describes the episode as “worrying.” It says New Zealand is a “borderline tax haven” and receives very little in return while at the same time “trashes its reputation, and contributes to an international pandemic of tax avoidance by the mega-wealthy” – see: Taxing questions to answer.

The paper says Key continues to be “at once stubborn and vague” on why we continue with this arrangement and believes “Whitney’s email adds to the murk. It leaves the distinct impression that Key was swayed by a close associate with plenty to lose into dumping an important review. Key says what he told Whitney was nothing more than what he does for others “all the time”. But this is unconvincing. Can members of the public drop his name and win such a fulsome response?”

Bad signs for Key

It’s not a good sign for John Key that even some conservative commentators are admitting this looks bad for him personally, and casts the political process in a poor light. The NBR’s Rob Hosking says “there appears little doubt Mr Whitney did use his connection with the prime minister as a fairly crude lobbying crowbar in this case” – see his paywalled NBR column, Antipodes email: Greens’ conspiracy theory just doesn’t stack up. He agrees with critics that there are some “awkward, lingering questions” to be answered on the scandal.

However, Hosking also describes the allegations against Key and the Government as “over-egged” and argues “the core of the accusations – that a review of the foreign trust regime was stopped in late 2014 after the intervention of Mr Key’s personal lawyer and, at one remove, Mr Key himself – is simply not supported by the documents released by the Green Party”.

Hosking puts the misguided allegations down to a never-ending Opposition quest for dirt on the PM, as well as a lack of understanding by the media of how the tax policy programme works. He says that while there was certainly preliminary work under way in case future changes at either OECD level or by individual countries could mean the rules would have to change to protect New Zealand’s reputation, “a review of the tax regime for foreign trusts was never on the work programme.”

Regardless of the merits of the allegations, Hosking believes the “questions about cronyism or other favours” means that there will now be further political pressure on John Shewan’s review of the industry to come up with “some meaty recommendations.”

Likewise, National-aligned blogger David Farrar says the latest revelations “makes it more likely there will be law or policy changes, as the Government won’t want to be seen to be doing nothing” – see: The Antipodes email. Farrar describes the substance of the story as “trivial”, but acknowledges “the perception is pretty horrible.” 

Growing pressure on Government

Unfortunately for the Prime Minister, the foreign tax trust issue is not about to go away. On May 10, at 6am New Zealand time, the International Consortium of Investigative Journalists (ICIJ), who received the leaked Mossack Fonseca materials, will release a searchable data dump of material from the leak – see Tom Strecker-Pullar’s Searchable database likely to implicate Kiwis in scams

Strecker-Pullar reports that the dump is expected to include many records involving New Zealanders, and that the ICIJ has promised it will “open up a world that has never been revealed on such a massive scale.” He says “People will be able to play tax detective.”

At the same time, the Herald’s Matt Nippert reports that a Majority of Kiwis ‘concerned’ about New Zealand’s new reputation.

He says the results of a UMR Research poll, “conducted for activist group ActionStation, showed 57 per cent of respondents were “concerned” about New Zealand being a tax haven and the misuse of our foreign trust regime for tax evasion purposes. Just 23 per cent said they were “not concerned” about the issue… Nearly half, or 46 per cent of respondents, said the Government was handling the issue poorly, with only 21 per cent saying it was being handled well. And more than half, or 52 per cent of respondents, said the Shewan review was an inadequate response to the issue.”

It’s good that ActionStation is pushing for better tax and trust laws, says blogger Pete George, but he is critical of both their polling and their selective reporting of the results – see: A slanted Panama/trust poll. George says the 20 per cent of respondents who were neutral/unsure were excluded from public statements and believes the questions were unacceptably loaded.

The Rightwing respond to the tax haven issues

It’s a case of “local political and media interests…doing their best to shoehorn the international hullabaloo into our own domestic debate” according to National party activist Liam Hehir in his column, Panama Papers have little impact so far in New Zealand (written before the current controversy). In reality, he says, the leaks have about as much resonance with New Zealanders as the WikiLeaks cables or any other “international controversy that we are told could change everything”. He says by all means debate the fairness of the wealthy exploiting loopholes to avoid tax or the rights and wrongs of taxation but do not base this discussion on “speculation, conjecture and half-formed wonderings” when no New Zealanders have been implicated in anything illegal.

Rodney Hide reminds us of the rightwing argument that there’s nothing wrong with avoiding tax legally, and why he thinks “the media jihad against law-abiding citizens not paying their “fair share” is so repugnant and depressing” – see his paywalled NBR column, Scribes become state’s willing little helpers

Hide explains: “I would rather flush $100 down the toilet than gift it to government.  I also don’t like the government sniffing through my affairs and so offshore trusts have always struck me as attractive. One day I hope to have one.  I suppose the government could get lucky and my $100 helps cure cancer, keep a murderer at bay or feed an otherwise starving mum.  But it’s more likely to fund a deadbeat, pay a teenager to have a baby, provide a grant to a competitor, incarcerate an innocent, pay a bureaucrat to hassle me, fund the Greens or buy violence in a foreign land.”

Hide has also gone into bat for politicians being able to keep their tax records secret – see: Judge on ability, not tax return. He says, “John Key is right not to release his tax returns. There’s no doubt it would be news and would feed the nosy-parker in us but it would not serve the public good”. Basically, it’s none of our business, and “how many financially successful people would stand for office if they had to front with their tax returns?”

Similar arguments against tax transparency applying to everyone are made by Jim Rose in his column, Envy is the biggest gain from public tax returns. He suggests that such “tax porn” would be a recipe for arguments, bitterness and resentment.

Obviously the mega-wealthy can take advantage of foreign tax trusts, but what about the ordinary citizen? Laura Walters has investigated, and provides the bad news – see: Tax breaks a la Panama Papers not for everyday Kiwis

Finally, the head of Oxfam New Zealand, Rachael Le Mesurier, argues the Panana Papers scandal has overlooked the real victims. She says “As long as tax avoidance continues to drain government coffers the world over, there is a human cost” and it’s those most harmed by tax avoidance we never hear about.

]]>

- ADVERT -

MIL PODCASTS
Bookmark
| Follow | Subscribe Listen on Apple Podcasts

Foreign policy + Intel + Security

Subscribe | Follow | Bookmark
and join Buchanan & Manning LIVE Thursdays @ midday

MIL Public Webcast Service


- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -