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Friday, October 3, 2025

Mike's Minute: The problem with the Govt's passion projects


Forget the detail of the power reforms, because we dealt with them yesterday, let's deal to the politics of it and a habit the Government has that is hurting them.

There is a pattern.

The pattern is the Government tells us there is something wrong, it could be banks, it could be supermarkets, it could be power, or it could be airlines.

The last Government had the same issue – they took on petrol stations.

Their concern is partially real. It's real because 1, there might be bits and pieces of the sector that could do with some tightening or tidying and 2, there is almost always consumer concern.

The consumer angst is part of the problem, because the consumer will always see a problem whether there is one or not. That’s why lazy journalists do vox pops – is butter too expensive? The answer will always be yes. Doesn’t mean that’s a problem a government can solve.

So having stated the problem, you have then created the expectation that you will do something about it.

The trouble with yesterday's power deal was the obligatory report suggested more than what actually eventuated by the time the final decisions were made.

Hence the reputation, and the reputation is of a government that talks a lot, does a lot, but the “a lot” doesn’t amount to much.

Yesterday was your classic example: the Electricity Authority gets clearer riding instructions, big deal, the industry has the perception removed that the government don’t want to get into big projects, a phone call could have done that.

We are to import, in several years time, some LNG – great. Nothing wrong with any of it and it would have landed well if they hadn't given you the sense that Reform —capital letters— was on its way

Personally I never thought the industry was that broken. Labour and their oil and gas debacle hobbled us for several years while we wait for the windmills – bit of coal bridges the gap. Like butter, and indeed airlines, there is generally logic as to why things are the way they are.

The report fell flat not because what was in it made no sense or hurt an industry, but because it had an “is that it?” feel about it.

And it had that feel about it because the Government haven't worked out the balance between hype and reality.

Of their passion projects, where trouble sits, banks, airlines supermarkets, or power – name me the one that’s materially different because of what they did, not what they said.

Politically, that’s their failing.

Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings - where this article was sourced.

4 comments:

Spam said...

Personally I never thought the industry was that broken. Labour and their oil and gas debacle hobbled us for several years while we wait for the windmills – bit of coal bridges the gap.
Are you kidding me? A windmill can't provide a feedstock for Ballance to produce the fertilizer that we need for farms. It can't even provide the reliable electricity to underpin 24/7 loads like pulp & paper plants. We are in the midst of deindustrialisation!

The ban caused sovereign risk, something we never had here before. Hipkin's latest utterances that he will reinstate the ban shows those numpties haven't learned, and that they are happy to tell the world that New Zealand doesn't want their business, and never will.

They didn't just hobble us for a few years, they set in motion the destruction of New Zealand as an industrialised nation, and we will never recover from it.

Anonymous said...

Well it’s well documented who to blame

Anonymous said...

The trouble is all parties are robbing us.

NZ is following the UKs path where a succession of corrupt political parties defrauded their citizens, leaving a husk of a country with declining standards of living, behind.

Mike isn't stupid so one can only conclude his misleading articles, falsely defending NZ cost crisis causing cartels, are driven (like our politicians) by personal gain, they're certainly not based on fact!

Anonymous said...

I totally agree with spam about the uselessness of windmills (add to that solar panels) They are ok for small projects like someones home, farm or somewhere off the grid. But totally inefficient and costly for mainstream energy requirements. Like electric cars may be useful in a congested city, but totally inappropriate for long distant travel. As that saying goes 'horses for courses'