28 August 2015
Bounce & St Barnabas

This week I would like to talk about the arts, but it is the economy which demands attention. Taranaki needs help and it is not forthcoming. Look at the graph just issued by ASB. Notice how Taranaki is hit by the economic downturn – but Waikato avoids it because they diversified. Only local and central government can provide the leadership required to change our economic profile. We must fight for new industries in Taranaki.

 
Economics
John Key should attend St Barnabas’ Church at Opunake. Not for the spiritual uplift, but to learn about economics. They know more about economics at St Barnabas’ than John Key.

On Sunday they prayed for the families of men who have just become unemployed – real people, not statistics. We heard about how hard it is for farmers to get up to milk cows at 4 am when they expect no financial return. We heard suicide prevention courses are going well. A woman tells me that her hairdresser in Stratford had five customers cancel their hair appointments last week.

You will bounce
John Key downplays the economic concerns held at St Barnabas’ Church. Last May he told a National Party conference in New Plymouth we would “bounce”. He said areas of the economy are doing well (but they are not here) and economic cycles are normal (yes, but consider the economic drivers in Taranaki). We did not bounce – we went splat!

Access
At St Barnabas’ Church I learn about people who cannot access social welfare services in Hawera – no phone for an appointment, no car, no hope. These people look for alternative ways to live – they become invisible in statistics. They become a cost on the health budget and the justice system. Public services must reach out.

Jargon
At St Barnabas’ Church the words are nice and simple. They say more about Taranaki than Steven Joyce, even though he comes from New Plymouth. He says we have a “slowdown in growth”. It is not a “recession” says Joyce. He is right, because economists have a definition for the word “recession”.  But when you have no money you do not want to hear economists’ jargon. John Key should bring Seven Joyce to St Barnabas’ Church, to learn how to talk without jargon.

Isolation
Perhaps it is true that during wars people are brought together because they unite against a common enemy. An economic depression separates and isolates people. How can we persuade proud, independent country people to reach out for help?  I do not know the answer, but St Barnabas’ Church works on this.

Oil collapse
All the talk is about dairy prices. Actually, the oil price may be more important to Taranaki. Oil prices will fluctuate, but overall they will stay low. Taranaki cannot expect any significant support from the oil and gas industry any time soon.

Why are oil prices down? The United States began to produce large quantities of shale-oil in 2014. As a result of the global economic downturn China, Brazil and Russia use less oil. Saudi Arabia says it will no longer lead the OPEC countries to stabilise the oil market.

Rural Fuel
Talking of oil prices – I signed up for a Rural Fuel card. A nice guy came to see me at home. You save 7 cents a litre on petrol. This applies at Rural Fuel and BP stations.  Rural Fuel is owned by BP NZ. BP NZ is owned by BP UK. I feel the prosperity of Europe now depends on me.

Research money
In New Plymouth, John Key announced $25 million of new money for research. This was particularly good news because it was targeted at the regions in need.

I asked the Ministry of Business, Innovation & Employment how much money was to come to Taranaki. That was on the 23 May 2015. They wrote my reply 96 days later (three times as long as the law allows).

They do not know if any of money will come to Taranaki. They are talking to people in the target areas. I asked the STDC how they are getting on with the Ministry. Guess what, they have not heard anything from the Ministry.

Research money could be important to us if it helps establish a new income stream for South Taranaki. It will be disappointing if the money goes to dairy or extractive energy research (unless they turn milk into beer or produce a perpetual motion machine).

TPP
At St Barnabas’ Church people talk about the Trans Pacific Partnership Agreement. It is cynical and selfish to say the TPP is okay if your particular interests are okay (dairy, gas, health, Maori, stock market speculators, intellectual property holders, and companies/lawyers who would benefit from compensation claims against governments – all have their self-interested advocates).  Church people wonder who speaks for the public interest.

Why TPP?
It is a mistake to liken the TPP to our agreements with various countries. There is a tension between governments and trans-national companies – a battle between votes and dollars. Some years ago, the companies discovered that they could increase profits if they put their requirements into trade agreements. Rules that Parliaments would never vote for could be brought into existence by way of trade agreements.

Medicines
The pharmaceutical companies have been out to destroy PHARMAC for years – John Key has just promised them a big pay day.  NZ already struggles to buy modern drugs, and we have just agreed to pay more. The health budget will increase, but PHARMAC will buy fewer drugs. The wealthy already buy their medicines privately.

American values
The TPP is an American bid to impose American ways upon us. It is a code of American values that relate to unrestricted competition and American style capitalism.  It should be called “The Code of Competitive Behaviour”.

The values we hear at St Barnabas’ Church are not those of competition and unbridled profit seeking. They are more about community cooperation, equality, inclusiveness and compassion.

Robert Shaw
robert@porirua.net