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Thursday, 25 November 2010

Labour becomes Labour Lite

Labour's Finance spokesman is proposing:
  • public-private partnership for transport;
  • an "inbound transactions tax";
  • allowing private shareholders to own shares in subsidiaries of state owned enterprises;
  • not going on a spending spree, but reducing net debt and build a stronger capital base;
  • working with Iwi and "community groups" to provide social housing;
  • considering using the Cullen superannuation Fund as a "cornerstone investor in long term growth opportunities.";
  • changing monetary policy by amending the Reserve Bank Act to "broaden its targets" while retaining the central bank's independence and the current 1-3 per cent inflation target. 
It's a mixed bag. Partial privatisation shareholding of SOEs makes sense, as does PPPs for transport and the privatisation returning to the community for social housing. But the real concern is whether Labour can restrict government spending (they don't have a good record on that) and how much it will screw around with the Reserve Bank Act.