Economics underpin Govt’s derailing of Labour transport project and its support for military strikes in Yemen
The coalition Government has announced (on the domestic front) the cancellation of the Auckland Light Rail project and (on the international front) its support for Western military strikes against Houthi targets in Yemen.
It has also got around to posting two press statements released on New Year’s Day, presumably when the people who administer the government’s official website were on holiday.
Cost savings were emphasised in relation to the rail decision.
Economics – and shipping costs – were a fundamental consideration in supporting the strikes against Houthi targets, too. The toll in terms of human lives if the Middle East war escalates is harder to gauge.
Economics – and shipping costs – were a fundamental consideration in supporting the strikes against Houthi targets, too. The toll in terms of human lives if the Middle East war escalates is harder to gauge.
Latest from the Beehive
14 JANUARY 2024
The coalition Government continues to deliver on its 100-day plan with the decision to cancel the Auckland Light Rail project.
12 JANUARY 2024
Foreign Minister Winston Peters and Defence Minister Judith Collins KC today expressed New Zealand support for strikes against Houthi targets in Yemen threatening commercial shipping in the Red Sea.
1 JANUARY 2024
The Coalition Government has ended the ‘Ute Tax’ and Clean Car Discount for all vehicles registered after 31 December 2023, marking a New Year’s victory for taxpayers, farmers, and tradies.
All New Zealand dairy products are now able to enter China duty free, with the end of safeguard duties on milk powder starting, Trade and Agriculture Minister Todd McClay says.
The decision to cancel Auckland Light Rail would have cost taxpayers $15 billion, with advice showing the cost could increase to $29.2 billion, Transport Minister Simeon Brown insisted.
“The previous government committed to building light rail to Mt Roskill within four years of being elected. After six years and over $228 million spent on the project, not a single metre of track has been delivered and congestion has only worsened in the city.”
Mention of $228 million was spotlighted by David Farrar on Kiwiblog in an article headed $228 million for zero metres:
Arguably this was Labour’s biggest failure, even larger than Kiwibuild. It was Jacinda’s first promise – light rail would be up and going by the end of 2021. Instead they spent $228 million on consultants, which is a staggering amount. If you assume $2,000 a day consultancy rate then they paid for 114,000 days of consultants.
There was a real cost to all this. The western busway was done for $100 million. All that money wasted for nothing.
While supporters of the light rail project are smarting, the international repercussions after American and British forces launched strikes against Houthi targets in Yemen look likely to be much more volatile and unpredicatable.
Escalation of the war in the Middle East is among the probabilities.
The government’s entitlement to take an interest in discouraging Houthi attacks on shipping in the Red Sea is plain.
As Foreign Minister Winston Peters explained, nearly 15 per cent of global trade flows through the Red Sea and Suez Canal.
Supply chain disruptions mean higher costs for New Zealand consumers and delays getting goods to and from markets in Europe, the Middle East and North Africa.
“We are a trading nation that relies on international maritime law and the free flow of goods, and Houthi actions strike at the heart of New Zealand’s national security.”
Peters and Defence Minister Judith Collins said the military strikes by the US and Britain followed clear warnings.
“The Houthi attacks are illegal, unacceptable and profoundly destabilising. We and our partners have made repeated calls for them to stop,” Mr Peters said.
“These warnings have not been heeded. The Houthis have only stepped up their attacks, as we saw on 10 January with the launch of further drones and missiles at commercial shipping vessels. Today’s response is the inevitable consequence of the Houthis’ disregard for international law, peace and stability.”
Ms Collins said the United Nations Security Council had also been clear on this issue, demanding that the Houthis immediately cease their attacks.
“This is a good example of the international community uniting to address a serious threat to international security,” she said.
“New Zealand will continue to stand with partners in upholding maritime security in the region.
“New Zealand defence forces have a long-standing role, in our exclusive economic zone and throughout the world, in supporting maritime security, including safe shipping lanes and the protection of civilian crews. Freedom of navigation is an integral part of New Zealand’s national security.”
New Zealand has joined a statement with Australia, Bahrain, Canada, Denmark, Germany, Netherlands, Republic of Korea, United Kingdom and United States on today’s military action.
The joint statement can be read here.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
2 comments:
So it's going to be a showdown between the WEST vs the BRICS?
My money's on the BRICS.
What is happening RIGHT NOW behind closed doors at the Pentagon, is how they will sell/incite a direct war/conflict with Iran to an unknowing public.
Why Iran?
The alliance of BRICS nations IS a direct threat to the petrodollar, which just took a massive leap forward with several OPEC nations, including Iran, joining the BRICS on January 2 of this year.
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