Stocks on my Watchlist: NZ Farming Systems Uruguay

On Saturday night I was watching New Zealand's TV One, a conservative channel with middle of the road programming and an audience of mostly over 50 year olds. I'm not there yet.

What I saw at 7.00pm was the channels longest running show, Country Calendar. The show has been running for my whole life, slightly longer than 40 years.

I haven't seen country Calendar for many years but used to regularly watch it in the 70s and 80s.

From my memory it has always been about innovative farming and new ways to make farming easier and therefore increasing the bottom line.

I have checked in periodically over the years and have lost interest because it seems to have lost its focus, for me, on its essential businesslike thrust and become just another "lifestyle show".

Last Saturday I was blown away though, transfixed on the programme as I used to be so many years ago.

The show was about PGG Wrightsons Ltd [PGW.NZ] push into dairy farming. In partnership with its stake in NZ Farming Systems Uruguay Ltd [NZS.NZ] NZFSU, which is managed, part-owned by Wrightson and listed on the NZ Stockmarket, this New Zealand company is forging a new frontier in farming outside its familiar home environment.

As many New Zealanders might know, dairy farming in New Zealand has become big business. It is an industry that contributes a massive amount to our export earnings.

However higher costs of production, labour, land cost and development,inadequate milk supply to meet world dairy demand now and into the future, an NZ dairy sector dominated by a major global milk supplier in Fonterra short of supply, and a whole host of other rising business costs mean the cheaper cost of dairy farming in places like Uruguay make the future of NZ Farming Systems very exciting.

If we look at the way New Zealand's biggest company Fonterra operates, we see that they control a large amount of the worlds milk supply. Much of that milk supply comes from outside New Zealand because we simply cannot produce enough milk solids to keep up with world demand for dairy produce.

NZFSU is a great first step for a listed New Zealand company to take a part in the growing dairy boom. India and China are increasingly becoming dairy consumers and investors in NZFSU will be well placed to reap the financial rewards as the market becomes more mature in Uruguay.

The cheaper cost of doing business in this infant market, with lower land, labour, tax and other ongoing costs, and its geographical position closer to already big dairy consumers like mainland USA, give clear business advantages to the early entrants into new dairy producer markets.

Unlike Fonterra though, mum and dad investors are able to take a stake in NZFSU by buying a chunk of its listed shares.

Fonterra shareholders, dairy farm owners, decided to put off a partial float of their company in a meeting held last year, so buying NZFSU or PGG Wrightson shares is the only way kiwis can get a stake in New Zealand's biggest industry.

It may well be one of the best long term investments one could make considering current and future dairy demand.


Related Links

NZ Farming Systems Uruguay - Investor relations
PPG Wrightsons


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c Share Investor 2008

NZ HERALD: John Key-Part two

3:00PM Saturday July 26, 2008By Carroll du Chateau, Paula Oliver and Eugene Bingham

Key giving his State of the Nation speech this year. Photo / Martin Sykes


Part One of the John Key story
John Key in photos
John Key in his own words
Parliament's $50m MP
'I'm more liberal than I look'
John Key Timeline

For someone whose career had been a series of champagne glass-chinking highs, John Key's first day in Parliament was a shock. Flushed with his victory in Helensville, he was almost jumping out of his skin at the chance to get started on the next part of his life plan. The first day of his journey to be Prime Minister.

And he walked into a blood bath.

The country had been brutal in its judgment of National in 2002, its support on polling day collapsing to 20.9 per cent, the 66-year-old party's worst-ever election result.

Amid the carnage, Key had been the bright spot. Auckland's Westies had reacted well to the new face with its big smile and a man willing to roll up his sleeves and hammer together his own hoardings. As it had earlier in his life, Key's self-confidence and willingness had paid off, and he won the Helensville seat by 1705 votes.

On the Tuesday morning following the election, Key flew to Wellington for his first caucus meeting. "I went in feeling euphoric and left feeling depressed," he recalls.

The departing MPs, some retiring, many defeated, stepped up to receive their farewell gift (a silver tray), said their farewells, and left. The survivors and the few newcomers - Key, Don Brash, Judith Collins, Brian Connell and Sandra Goudie - huddled together.

It was a sober introduction to Parliamentary life for this retired merchant banker. Last week, in part one of this project, we told his background story, the steps he took to reach Parliament. This week we examine Key's rise to the top of the party and explore what he stands for.

Key achieved his goal of getting elected, even as voters mauled his party. His longer term ambition to be Prime Minister is now within reach. But which John Key will emerge? The centrist figure who has embraced so many existing policies that his critics label "Labour-lite"; or the career banker and money-man, who linked fast economic growth with fewer holidays for workers (two weeks' annual leave, in fact), said he could not see any reason to own Air New Zealand, and accused some DPB mothers of "breeding for business".

In a little more than three months, New Zealanders will know if Key occupies the Beehive. The bigger question is will they know what to expect from him? In this, the second part of our far-reaching examination of the 46-year-old, we push past the window dressing to reveal what he believes in and how he operates.

We have read hundreds of Key's speeches, trawled through the Parliamentary records of his questions to ministers, and pored over interview transcripts dating back to the start of his political career. As well, we have interviewed dozens of MPs, including those from other parties in an attempt to glean as full a picture as possible. Those interviews are among about 100 we have now undertaken as part of this project.



Related Political Animal reading

Part One of the John Key story

Next page
View as a single page

c Political Animal 2008

Images of the week: Winnie's merry dance

From Stuff.co.nz Ahh, my only friend.

The relief from the media storm that hit Winston Peters on his return from Singapore is written all over his face in this picture of himself and his new mate Condelezza Rice.

Peters after facing media on his return to NZ from Singapore, showing the strain.

c Murray Webb 2008

If Peter's corrupt practices werent so serious his performance would be one of the great stand up comedy acts rivaling the Flight of the Conchords and John Clarke combined.

c Political Animal 2008

Vote on the Political Animal Pre-Election Poll

Vote on the Political Animal Pre election poll.

So far votes are heavily in favour of a National Party landslide, with an average vote of 56%, with Labour behind on around 12% of the vote. Act comes a close third.

You have two votes of course. Some haven't voted in both P. A. polls but there is your Party vote and Constituency vote to cast.

Vote below on Political Animal Pre-Election Poll - remeber you have two votes

Party Vote

Constituency Vote

2008 New Zealand General Election - Check your enrolment status

c Political Animal 2008

Share Investor Forum July Giveaway (UPDATED)

Join up to the New Share Investor Forum, make a valuable post in the "market" section of the site and go into the draw to win the following prize. Current members are also eligible to enter the giveaway by simply making a post.

For every additional friend that you refer to the Share Investor Forum you get another chance in the draw.

The Economist is an excellent read, devoid of the usual leftist drivel that one finds in the bulk of the worlds financial media.


The Economist 6 month subscription valued at US$60.00(BUY IT HERE)



THE ECONOMIST is a weekly news and business publication written for top business decision-makers and opinion leaders who need a wide range of information and views on world events. It explores the close links between domestic and international issues, business, finance, current affairs, science and technology. Regular editorial departments include American Survey, Asia, Europe, International, Business, Finance, Science and Technology, and the Arts. In additions, The Economist also publishes special monthly editorial surveys that focus on industries, markets or countries.


**The competition is valid from Tuesday 1 July 2008 up to and including July 31 2008, Pacific GMT + 12 hours.

c Share Investor 2008

John Key's success should be celebrated

The 2008 NBR Rich List is out. I suspect most Leftists will be looking at the list with a large amount of jealousy and an unhealthy level of suspicion.

Your Eric Watsons and Michael Fays of the list do have a huge amount of tarnish to their wealth. Watson behind more losses for investors, including the recent Hanover Finance collapse, than the All Blacks at World Cups and Fay milking New Zealand Taxpayer assets for his own personal joy, but most on the list got there because of intelligence, a small quotient of luck and most of all a great deal of hard work and stubborn perseverance.

I myself look at such people with a positive curiosity. I don't think, who did you rip off to get where you are but how did you manage to get where you are?

We got alot of political capital made today from the left, about a possible future Prime Minister, in John Key, about being at number 167 on the list with a personal fortune of around NZ50 million, but being a success in life and coming from such humble beginnings, like the number one lister, Graeme Hart, will make Key excellent Priministerial material.

Key is aspirational as Helen Clark is institutional. People like Key should be held up as examples to others of how success can come from hard work and if even if your background is poor economically, as John's was, you can still get there without having to rely on the State for life, as Clark would have someone like Key and his mother, dependent rather than independent.

In these tough economic times, that Labour have made considerably worse by their high taxes and wasteful spending, we need a leader that understands economics, markets and how business works and functions, something that is a mystery to most in the Labour Party, and especially Michael Cullen and Helen Clark.

John Key's financial acumen will be a benefit to the country and his success in life is clear evidence that he is the right man for the number one job in New Zealand.

Related Political Animal reading

Pointing fingers in the playground

c Political Animal 2008

Take an early poll Helen

The latest outburst by Winston Peters today at a press conference staged by him to defend the indefensible; the Owen Glenn, Vela and Bob Jones donations, all clearly made and all clearly denied in various degrees by Peters comes at a crucial time for Peters, his NZ First Party and Helen Clark and the Labour Party.



Winston Peters denies any wrongdoing TV3
Statement from Winston Peters
Winston Peters faces media


The accusations made against Winston Peters, with written proof in all three cases, are sackable offences for a Cabinet Minister under the terms of Labour's own cabinet manual.

But with some crucial Labour legislation, like the economy wrecking Carbon Credit trading law to pass before an election, the Prime Minister wont push Peters because it will mean an early election.

More proof of course that Clarks politics and lust for power have preference over rules, the country and its laws.


Related Political Animal reading

I didn't give Winston Peters a donation
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

c Political Animal 2008

2008 NBR Rich List

The 2008 NBR Rich List is out. I suspect most Kiwis will be looking at the list with a large amount of jealousy and an unhealthy level of suspicion.

Your Eric Watsons and Michael Fays of the list do have a huge amount of tarnish to their wealth. Watson behind more losses for investors, including the recent Hanover Finance collapse, than the All Blacks at World Cups and Fay milking New Zealand Taxpayer assets for his own personal joy, but most on the list got there because of intelligence, a small quotient of luck and most of all a great deal of hard work and stubborn perseverance.

I myself look at such people with a positive curiosity. I don't think, who did you rip off to get where you are but how did you manage to get where you are?

We will get some political capital from the left, made about a possible future Prime Minister, in John Key , about being at number 167 on the list with a personal fortune of around NZ50 million, but being a success in life and coming from such humble beginning's, like the number one lister, Graeme Hart, will make Key excellent Priministerial material.

How do I get on that list now?!


NZPA Friday July 25 2008 - 06:35am

National Party leader John Key has squeaked into the National Business Review's annual Rich List for the first time, with his estimated $50 million net wealth just meeting the list's threshold for inclusion.

The NBR says Mr Key's well-known rag to riches story sees him owning properties in Auckland, Wellington, Omaha Beach, as well as an apartment in London and newly acquired $US3.25m holiday home in Hawaii.

Continued

Rich List to 10:

1 Graeme Hart $6 billion

2 Todd Family $2.6 billion

3 Eamon Cleary $2.1 billion

4 Christopher Chandler $2 billion

4 Richard Chandler $2 billion

6 Goodman Family $1.64 bilion

7 Lynette Erceg $1.4 billion

7 Stephen Jennings $1.4 billion

9 Wade Thompson $750 million

10 Sir Michael Fay $700 million

10 Douglas Myers $700 million

10 David Richwhite $700 million.

NBR @ Share Investor

2010 NBR Rich List
2009 NBR Rich List
2008 NBR Rich List
NBR Headlines

Share Investor Forum-Discuss this topic


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c Share Investor 2008

Hanover Collapse: It was just a matter of time

In a post I wrote on October 5 , as part of the 2007 Friday Free for all series, I had the following story about the impact of Finance companies falling over. Hanover was picked as one of the dodgy ones.

If you were watching the TV over the last few weeks you would have noticed that the saturation advertising the Hanover was running had stopped. That is because they were insolvent.

This will not be the last one to go. All prospective investors in finance companies should be very wary about putting their hard earned dollars at risk.

Think seriously about not reinvesting if you already have money in this sector. Try a term deposit instead.


Financial Impact-from Share Investor's Friday Free for all: Edition 6

The fallout from the dodgy finance company industry rolls on again this week.

Hanover Finance, one of New Zealands biggest finance companies is to cut its Australian staff from 44 to 32.

Hanover has been busy re branding itself with an expensive advertising campaign as a warm , friendly, safe and solid industry player.

I'm still a little wary over this and other companies and their long term future in lending.

Even Hanover's size wont protect it from going under and there are rumours going around about its stability.

Even the State Kiwibank, the loss making division of NZ Post, has reportedly done 6 million taxpayer dollars in the Northern Rock collapse in the UK. One has to wonder why it was invested there.

Auckland-based investment firm Clegg & Co Finance has been placed in receivership this week. NZ $15 million of investors money is at risk.

On August 28 Brian Clegg, the director of Clegg and Co, wrote to investors written under a Classic Finance letterhead:

He writes about the publicity surrounding the collapse of finance companies, but believes his company is one of the "safe" ones, because it was "still operating profitably and successfully in accordance with our lending policy", and had kept out of high-risk lending.

In yet another collapse, investors in Five Star Consumer Finance heard today that they would expect to receive back 26c to 40c in the dollar on money invested but nothing forthcoming until December.

Related Share Investor reading

Money Managers Saga: 3 Story wrap
Money Managers gives First Step investors the middle finger
Greed is bad: Geneva Finance Folds
Financial 101: Learn before you leap

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Recommended Fishpond Reading



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c Share Investor 2007 & 2008

I didn't give Winston Peters a donation

c Blanch 2008

OK, who in New Zealand didn't give little Winnie a secret donation in the past?

Faster than you can say Hanover Finance has gone bust, the latest revelation from the Dom Post is that Bob Jones has given secret money to a trust administered by Winston Peters brother .

The donation has not been declared to election officials.

Like Labour, Winston Peter's NZ First has railed heavily against secret donations from wealthy individuals and companies but has nevertheless been at the centre of controversy himself by accepting secret money from Owen Glenn, the Vela Family and now Sir Bobby.

Last year Peters and Labour were at the centre of the passing of the Electoral Finance Act, an act they contended would stop these sorts of donations in the future.

In particular, fingers were pointed at the National Party over "big money" buying favours for their donors, but the fingers have clearly been pointing right back.

There is nothing like a little bit of hypocrisy to get the mind focused.


Related Political Animal reading

I think I love you Sir Bobby
Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
The Owen Glenn Story: Singing the same tune but hitting a bum note

c Political Animal 2008

Close up Video[July 22] Peters on the attack!

WATCH INTERVIEW Close Up: Winston Peters-22 July 2008 (7:01)



The TV One, Winston Peters interview,live from Singapore, by Mark Sainsbury today, was more of the same bluster and invective from an individual on the ropes and going down for the count.

Peters denied that he received more that $NZ10000.00 from the Vela family, even though the Dom Post have evidence that the family have gifted $150,000.00 to Peter's interests.

He attacked the media again and said the latest accusations were "lies" made up by the media.

Watch the manila folder flapping incessantly through the whole 7 minutes of the interview.

He is usually unflappable.

Peters ended the interview with a wait till I get home taunt to his accusers.

I cant wait.


Related Political Animal Reading

Discretion was the essential part of Vela Donation
Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn


c Political Animal 2008

Discretion was the essential part of Vela Donations

The better part of valor is discretion, in the which better part I have saved my life.
William Shakespeare (1564 - 1616), 'King Henry IV part I'

Well, Peters has been discreet, until found out by the NZ Herald and the Dom Post, but his fighting spirit in the face of political danger hasn't been for the better when it comes to his survival. Helen Clark's support of him is neither discreet or advantageous to her or her party.

In Parliament today Helen Clark defended Winston Peters (Video) to the hilt.

This is in spite of overwhelming evidence that Peters took secret money from Owen Glenn, spent NZ $45,000.00 of taxpayers money on his lawyer and accepted NZ$150,000.00 from the Vela Family, a wealthy family with interests in the racing and fishing industry.

Peters is the Minister for racing and gave tax breaks to the equine industry last year.

Giving backing for Peters leaves Helen Clark in a difficult position. In supporting him she has given approval for his behaviour and as he is part of the minority government it is really incumbent on her to make a move on Peters to remove him from his position.

She has done it with countless MPs over the years who have strayed from legal or moral lines and there have been many.

However, her Party relies upon Peters to support Labour's wafer thin grip on Parliament so it is unlikely she will do anything unless she has to.

It could lead to an early election if she puts Winnie's nose out of joint.

Coming on top of secret donations from Owen Glenn to Labour, revealed earlier this year, and Labour and NZ First campaigning heavily on secret donations in relation to their passing of the Electoral Finance Act, Ms Clark has a orgasm of egg all over her face given her support for her Partner in Parliament, Mr Winston Peters.


Related Political Animal Reading

Winston Peter's Glenn donation scandal: But wait, there is more!
Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

NZ Herald Link

Helen Clark defending Winston Peters in Parliament today-Video

c Political Animal 2008

Winston Peter's Glenn donation scandal: But wait theres more!

Seems the Dom Post has been digging for gold over the Winston Peters secret donations scandal as well as the NZ Herald, who kicked it all off a week ago.

The latest revelation is that Peters has received money from the Vela family, owners of large fishing and racing interests in New Zealand.

It is thought that the Vela Family could have given up to NZ$150,000.00 and it hasn't been disclosed and must be. Donations have been made in amounts under $10,000.00 so don't have to be disclosed when made separately. Again big money going to a politician who has campaigned against the National Party for doing similar things.

The donations do not appear in NZ First's annual declarations to the Electoral Commission. A clear breach of electoral law if it is true.

The Dom Post hasn't made a direct comment on the fact that Peters has had donations from a family deeply involved in the racing industry while at the same time Peters is the Minister for racing. Political Animal will. That is corruption at the highest level, even if Peters latest donations are legal.

A second revelation by the Dom Post has been that Mr Henry, Peters Lawyer, also received at least $45,000 for legal services - paid for by Parliamentary Service funds last year.

Winston has replied in typical fashion that taxpayer money has been used to pay his legal bills:

"That is a lie."

MPs Rodney Hide and Gordon Copeland have taken a breach of privilege over Peter's secret Glenn donations to the speaker of the house, Margaret Wilson, while John Key asked Winston to apologise for misleading the public, too soft for my liking, and our great leader, Helen Clark, backs Winston all the way - why wouldn't she, her party has been arse deep in the same sort of corrupt practices.

In characteristic political fashion, something he has no doubt learnt from Helen Clark, Peters is leaving the country on another bauble filled junket.

He hasn't given a press conference, as is his want, to clear things up, so will get away with commenting until he gets back.


Related Political Animal Reading

Peter's hangs himself in February Paul Henry Interview
Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

c Political Animal 2008

Why did you buy that stock? [Kiwi Income Property Trust]

Kiwi Income Property Trust [KIP.NZ] was an addition to my portfolio earlier this year.

I wanted direct exposure to the commercial property market without actually buying a building outright.

Kiwi first came onto my horizon when I noticed they had ownership of the 40 level Vero office building in Downtown Auckland, and then my interest was piqued when their Sylvia Park shopping centre in Mt Wellington opened.


Why did you buy that stock?

Why did you buy that stock? [Hallenstein Glasson]
Why did you buy that stock? [Briscoe Group]
Why did you buy that stock? [Fisher & Paykel Healthcare]
Why did you buy that stock? [Pumpkin Patch Ltd]
Why did you buy that stock? [Ryman Healthcare]
Why did you buy that stock? [Michael Hill International]
Why did you buy that stock? [Mainfreight]
Why did you buy that stock? [The Warehouse]
Why did you buy that stock? [Goodman Fielder]Why did you buy that stock? [Auckland Airport]
Why did you buy that stock? [Sky City Entertainment]


That is all I knew about the company. I like what I saw in its two high profile assets and went digging a little further. Kiwi have a good mix of quality properties, shopping centres and office buildings from Auckland down to Christchurch, among them; Northlands Shopping Centre, Centre Place Shopping Centre, North City Shopping Centre, The Plaza Shopping Centre, Downtown Plaza Shopping Centre, Langdons Road, PricewaterhouseCoopers Building, The Farmers Building and Countrywide Building.

In a property company one of the number one things an investor should look for is good quality assets. For me Kiwi fit the bill, so that for me is the main reason for me to make my small purchase of shares.

Coming a close second is management. Good properties are only going to get good returns over a long period if they are managed well and Kiwi property certainly is.

Since its creation in 1993 the company assets have grown to over NZ $2 billion, it has a great occupancy rate for its properties and it increased profit to just over $63 million in 2008, from just under $48 million last year.

The mix, age, quality of construction and geographical spread of assets show how good management have planned ahead.

The Sylvia Park shopping centre is a case in point. New Zealand's largest retail centre, it has room and space to grow and has over delivered in terms of initial expectations.

The only problem that they have had, and this seems endemic with shopping centre planners, they under estimated the need for car parking, something they are now remedying with a multi story car park now under construction.

Now another reason I bought this stock was that it was cheap in comparison to its share price high, at just over $1.70 per share, and its net asset value to capital market price. Its current market cap of NZ$872 million is less than the net asset value of just over $1.1 billion, so I had to buy.

In the Why did you buy that stock? series I have to ask myself if I would still buy today. At the current share price of $1.13 it represents excellent value and I would like to add some more, should my wife stop taking me off overseas and making me pay for it!


Related Share Investor reading

10 Basic Buffet questions to ask before investing
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c Share Investor 2008

Peters hangs himself in February Paul Henry Interview

Back when the shite first hit the fan over Labour accepting secret donations from billionaire Owen Glenn, Winston Peters was grilled on TV One's Close Up about possible donations to NZ First.

In this interview he states at one point,in reference to being accused of accepting donations from Owen Glenn by the NZ Herald, again, " the story is categorically, emphatically and palpably untrue.

There is much more on this video pertinent to the current Peters/Glenn payola scandal, including references and reaction to Dale Jones, Party President, admitting that "there could have been a donation made".

Make your own mind up.

Peters clearly cant.


Related Political Animal Reading

Peter's admits lying about Glenn donation
Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn

c Political Animal 2008

Cost of Labour's 2008 Election bribes

I thought it would be very interesting to see the cost of Labour's election bribes so far.

A good concise list of what it is they are spending the money on, and how much it will cost the working taxpayer.

Some of it might be legitimate, some of it bordering on legit but most will be out and out handouts to prospective Labour voters.

Lets take a look.

1. KiwiRail purchase - cost NZ $665 million, plus hundreds of millions to "upgrade it" and keep it running. Altogether, including missed economic growth from keeping the money in taxpayers hands, $2 billion plus. Election bribe.

2. $10 billion in "tax cuts" mostly focused on those on welfare-working for families -and at an average of $16 per person hardly worth legislating for. Election bribe.

3. Increase in working for families-$200 million plus per year, 600 million over a 3 year term. Election bribe.

4. 1.7 Billion in lost capital value for Auckland International Airport shareholders because Labour stopped the sale of this private asset to buy votes. Election bribe.

5. Corporate welfare for research and development, cost $700 million. Election bribe.

6.Universal student allowances. Cost $728 million. Mooted but it will go ahead. Election bribe.

7. South Auckland "University". Cost, $25 million to purchase land and hundreds of millions more to develop. Not needed as Auckland already has 4 universities. Election Bribe.

8. Mt Eden Prison, Cost, well north of $250 million and unnecessary. Bunk beds will do. Election bribe.

Other costs with some merit but nonetheless some of the better ones could have been done earlier in Labour's term.


* $750 million in new health spending (includes first year of $160 million announced over weekend for elective services).

* $621 million in total over five years to boost Ministry of Foreign Affairs and Trade.

* $446 million over four years to boost funding for community organisations.*
.
* $164.2 million over five years for a cervical cancer immunisation programme.

* $150 million a year on educational changes to keep young people in school or training until they are 18.


The cost so far to the taxpayer?

Just over $18,000,000,000.00 , that is Billion with a capital B folks. You will have to pay this out of your taxes should Labour buy their way into power.

Keep checking back. I will update this list as the election grows nearer and Labour gets more desperate and disparate.


Related Political Animal reading

At least Robin Hood was honest
Labour's State control out of control




c Political Animal 2008

Winston Peter's nose continues to grow

Winston Peters, caught out lying 2 weeks ago when email evidence confirmed that he and or his party, NZ First, had received donations from Owen Glenn, the billionaire from Monaco, denied the initial accusation revealed by Audrey Young from the NZ Herald.

This was after denials made by Peters earlier this year when secret donations from Glenn to the Labour Party were revealed.

On Friday 18 July came the bombshell that Peters said he found out from his lawyer "at 5.00pm that day" that Peters had indeed received money from Glenn for legal action taken by Peters after he challenged his big loss against National's Bill Clarkson, in the Tauranga electorate at the 2005 Election.

The twist with Peters though is that even after he was revealed as a liar the second time, himself, he now says because the money from Glenn was used to pay "an existing legal bill" it is neither he or his party that had received the donation:

Asked about pecuniary gain, Mr Peters told NZPA he did not believe he had benefited personally from the arrangement whereby his legal bills were paid by anonymous donors and he paid the shortfall.

Mr Henry(Peter's lawyer) concurred last night.

"There is nothing I am aware of where someone contributing towards a bill you have incurred needs to be declared."

Peters is in effect creating a "third entity", in the existing legal account outstanding, to dodge the fact that he was a beneficiary of Owen Glenn's largess. Legalese at its most immoral and repugnant, just like Peters stance over this matter.

What is even worse is that Peters, uncovered as a liar by Audrey Young is still being called a liar herself by Peters because she wont reveal the email evidence she has. Peters had contended last week that Young and the NZ Herald had "made it up" owed him an apology and should resign from the paper.

This kind of tough stance by Peters is characteristic of him and his political and legal past, in his long winded "winebox" saga especially. He has demanded jail, fines, apologies resignations and sackings against his political foes in the past, for imagined and actual corruption and lies.

It is a shame Winston Peters doesn't look in the mirror past his shallow facade.

Related Political Animal Reading

Peters admits lying about Glenn donation

Winston's silence is telling

Labour gets tangled in Peter's lies

Leaked Glenn Email

Winston got secret donations from Owen Glenn

Labour Party Election funding murky at best

c Political Animal 2008, c Emmerson 2008

TV3 NEWS POLL: 20 July 2008

Watch Video

Sun, 20 Jul 2008 6:55p.m.

The National Party could govern with unbridled power on the evidence of tonight's 3 News political poll. However the gap has closed slightly between Labour and National.

The Labour Party's attacks on National leader John Key and the policy of the National party have made some difference with Labour managing to regain some lost ground.

In the 3 News poll, National looks to be firmly in control at 48 percent, while Labour sits steady at 35 percent.

Meanwhile the Greens have moved up to seven percent, followed by NZ First who nudge up to four percent, and looks set the crucial MMP threshold of five percent.

The Maori Party came in at two percent, followed by Act at one percent and trailing at 0.3 percent was United Future.

Using the figures from the poll, in parliament National would govern alone with 62 seats and could get help from Act or United Future if it needed.

Labour would have 45 seats and the Greens would have nine. The Maori Party would have four seats and Progressive one.

*The TV3 Poll is in stark contrast to the Roy Morgan Poll out Friday 18 July, which shows National in the lead from Labour by more than 20 points

Continued

Related Political Animal reading

Roy Morgan Poll: July 18 2008

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TV One, Colmar Brunton Poll: 20 July 2008

Jul 20, 2008 6:31 PM

Labour has had a rare burst of good news with a bounce back in the latest ONE News Colmar Brunton poll.

But the party still has a mountain to climb before the election and for Winston Peters and New Zealand First, the numbers don't stack up.

National has fallen a little in the poll but still has a clear majority over Labour which had a six point lift to take it back into the mid-30s.

National, 52%, is well ahead of Labour on 35% while the Green Party polled 6%. None of the other minor parties reached the 5% threshold this month.

National with 65 seats could still govern alone on these numbers which would leave Labour in opposition with 44 seats, along with the Greens with seven.

Assuming they win their electorate seats the Maori Party (1.7%) would have four seats, Act (1.2%) two and United Future and the Progressives one seat each. Without a seat New Zealand First (2.4%) would be out of parliament.

The party National leader John Key is preferred prime minister on 38% with Helen Clark firmly in second place on 31%. Just 4% think the job should go to the next highest contender, Winston Peters.

The poll is a reality check for National which has begun revealing its policy - including opening up the Accident Compensation Corporation for competition and reintroducing a 90 day trial period for new staff in small firms.

The poll of 1000 eligible voters has a margin of error of plus or minus 3.1%.

Related Political Animal reading (this weekend's polls)

TV3 News Poll: July 20 2008
Fairfax Neilson Poll: July 19 2008
Roy Morgan Poll: July 18 2008

c Political Animal 2008

Stocks on my Watchlist: Metlifecare Ltd

Once a darling of the NZX stockmarket, Metlifecare Ltd[MET.NZ], one of two listed retirement and elderly care village companies, the other being Ryman Healthcare [RYM.NZ], its share price now languishes at a NZ$ 4.36 close this last Friday 18 July and they announced a loss for the half year to December 31 2007 of $12.3 million.

The loss has been explained by management as a result of changes from the application of International Financial Reporting Standards (IFRS). Ryman on the other hand reported a significant increase in profit for the same period.

However, this must put in context with a market that is trying to do its best impression of a lead balloon being tossed from the Empire State Building.

So what would be so attractive to a prospective purchaser?

The fact that the sector of the economy that the MET participates in has had a history of good results and its long term future looks excellent because as we all know the elderly amongst us, save you and I, are living longer and will increasingly need and want the safety, care and security that a well managed retirement village will give them.

Of course long term success is no guarantee, but Metlifecare is a well managed company with a history of good planning, focused property development, for their individual villages and good returns for shareholders and as I have said operates in a growth industry.

Now there have been a couple of attempts over the last few years for a takeover of this company but bidders have been unsuccessful as there are several large shareholders and a couple of them declined to let the bidder have their way, Fisher Funds, the New Zealand fund manager but one of them.

The last bid for the MET was in excess of the closing price last Friday 18 July, which was well short of a stock price high of above 9 bucks Kiwi in 2007. This brings me to another reason why this company is on my radar.

In my humble opinion the current share price represents good value and aren't there heaps of them around at the moment! Net asset backing per share is $6.93, you do the math. Market conditions as they are today have cut the company's capital value by more than half, just like its listed competitor, Ryman Healthcare, which I already own.

So what, the property market, which by definition Metlifecare has exposure to, is in the doldrums. That simply ain't going to last and I wouldn't be surprised if the company isn't getting its tyres kicked by larger investors looking for good companies.

OK, I know Mr Market has got a bad case of the Wiggles right now and it is hard to "pick the market bottom", but if you are one of those guys who do the Rorschach chart predictions, do yourself a favour and stick this one on your slide rule.

I'm putting on my watchlist and looking for a weak day(yes another one) to buy.


Related Share Investor Reading

Why did you buy that stock? [Ryman Healthcare]
Time for retirement?





c Share Investor 2008

NZ HERALD & POLITICAL ANIMAL COMMENTARY: In search of John Key

According to yesterday's Roy Morgan Poll and a trend in polls going back to the end of last year, John Key looks like he is going to win the Prime Minister-ship of this once great country, New Zealand.

Inspirational where Helen Clark is confrontational, practical instead of academic, Key has the promise of the majority of Kiwis behind him, for a return to a prosperous, inclusive New Zealand, where hard work meant reward and welfare was reserved as a backstop not a lifestyle.

Motivating and leading individuals by example to achieve independence, success, wealth and a good life, an anathema to Helen Clark, her Cabinet and those that vote for her.

As the NZ Herald has reported though, we only know Key from some of the mud slung from the left and the fact that he came from an impoverished, poor background-unlike Helen Clark who was brought up in very comfortable surroundings and had an easy life- and worked his way to the top, principally because of his mother, who instilled in him the seed to get on in life.

Something sadly missing from our record numbers of families on welfare today.

People can see in him already the character of the struggling kiwi that once was and that we all have inside us, but need to let go of the State apron strings first to truly fly.

I'm quite excited by the promise to come for the country and hope he has the determination and will that has made his life such a success, from such humble beginnings, to inspire a whole country to get behind him and succeed individually, and to break the current slide into State dependence.

*The first part of the Herald story starts today and finishes next week with part two.

*Read: "Helen Clark: Absolute Power" by Ian Wishart

3:00PM Thursday June 19, 2008
By Eugene Bingham, Carroll du Chateau and Paula Oliver

A young John Key. Photo / Supplied

John Key Timeline

* In three months John Key will be standing for the country's highest office
* Polls suggest that the 47-year-old will be New Zealand's next Prime Minister
* Yet he remains relatively unknown. Who really is John Key? Where did he come from and what motivates his ambition?

One day around 1971, John Key arrived home from school, flopped down his bag and made an announcement: "I'm going to learn to play golf."

He was about 10, a cheerful but unremarkable pupil at Cobham Intermediate. His family - mother Ruth and older sisters Liz and Sue - lived in a state house on Hollyford Ave in the Christchurch suburb of Burnside. Inside, the turquoise carpet was offset by orange and black sofas, the lounge cleaned and tidied to motel standard. There wasn't room to practise putting, let alone a chip shot, on the bare, sloping front yard.

The family blanched. "He might as well have said he wanted to fly to the moon as far as we were concerned," says Sue. "Mum said, 'Why do you want to do that? That's going to cost money!"'

John, the man of the house since his father died several years before and the light in his Jewish mother's eyes, sat down and explained himself.

"He'd figured out that business guys have golf lunches," says Sue. "He told us 'I have to start working on those skills now so when I need them they're in place'."This is one of hundreds of anecdotes the Weekend Herald gathered from scores of interviews for this project. His sisters spoke candidly about him after they were approached in the course of this inquiry, revealing family stories that even their famous brother wasn't aware of. The golf tale is a telling insight because it shows that Key, even as a child of 10, was driven and had calculated what he would have to do to achieve his goals.

The interesting thing about the Key family is that no-one tried to divert him from his golfing ambition. Ruth, who had worked nights to keep the money coming in, probably half expected it.

She would constantly tell the children, especially John: "You can do better than this; I expect you to work your way up in the world."

Step one in John Key's audacious plan was in place.

More than 35 years later, Key is making a bid to be prime minister. But who is he? Compared with others who have stood to lead the country, Key is a relative unknown. He swooped back into New Zealand six years ago, a multi-millionaire thanks to a lucrative investment bank career, then quickly rose to the top of the National Party. Poll ratings suggest he has a royal chance of seizing control.

For five months, the Weekend Herald has researched Key's background to ascertain the essence of the man. The picture which has emerged is of a person of driving ambition and determination who is prepared to do what it takes to achieve what he is aiming for. In pursuit of his goals, Key will not hesitate to seek out people he thinks are best-placed to help him. He is decisive and appears genuine, but at the same time does not like giving offence - it's this aspect of his character which, as we shall explore in part two next week, provides the ammunition for his political opponents to label him "Slippery John".

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Related Political Animal reading

Pointing Fingers in the playground

Desperation by Labour backfires

What happened to risk?

Helen Clark's words ring hollow

c Political Animal 2008

Fairfax Nielson Poll: 19 July 2008

In what is possibly what Helen Clark would call a "rogue poll", Labour have closed to gap in the latest Fairfax/Nielson Poll. The trend has been a 20 point plus gap between Labour and National over the last 4 months with a couple of blips since sept 2007, so it is not as good for Labour as a look at today's single polling result might suggest.

Reinforcing that the Nielson poll might be a rogue one, the Roy Morgan Poll, out yesterday, continues the trend of a 20 plus point lead by National, the same trend established in the Nielson poll.

Poll watchers will be able to state a slip for support for National if there is a similar Nielson poll in August.

The Roy Morgan poll has been the more accurate one in predicting election results and the margins of the vote.


By TRACY WATKINS - The Dominion Post | Saturday, 19 July 2008

Labour has been thrown a lifeline by today's Fairfax Media-Nielsen poll showing the gap with National has closed to its narrowest since last year.

Though National would comfortably govern alone on today's poll results, Labour has clawed its way back from a 24-point deficit last month to 16 points today.

That may not be enough to turn around perceptions that the election is a foregone conclusion, but it has arrested a trend in which Labour's support fell below 30 per cent in the same poll last month, a result that shocked many Labour foot soldiers.

Prime Minister Helen Clark acknowledged Labour's recovery to 35 per cent would be a morale boost.

"I've been saying to people for a long time the feeling in the heartland was nothing like 29 or 30 per cent ... our people will be very motivated by these results."

Labour had been warned that its attacks on National leader John Key's credibility, including a holding of Tranz Rail shares and policies such as ACC, would backfire.

But today's poll shows the gap between Mr Key and Miss Clark as preferred prime minister narrowing to seven points, the closest since November, suggesting the attacks are having an effect.

And it reveals a lot of voters - 28 per cent - remain undecided about whom they would prefer as prime minister. Continued

Related Political Animal Reading

Roy Morgan Poll: 18 July 2008

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Peter's admits lying about Glenn Donation

As pointed out in this blog last week Winston Peters lied about receiving money from billionaire Owen Glenn.

He has just been reported as saying minutes ago in the NZ Herald(story below) "he had only just found out about it" today, thereby admitting his lie, finally.

This is after he labeled Audrey Young from the Herald and the Herald itself liars for reporting that his party, NZ First, had accepted money from Glenn. Earlier this year, when it was discovered that Labour had received secret donations from Glenn, Peters was asked then if his party had received money as well, but he denied it.

His party and himself, strongly supported the Electoral Finance Act, that Peters purported that the act would, "stop big secret money from buying elections", only to accept large donations himself.

This individual has to go.

Pass me a bucket.



Peters: "I just found out Glenn gave me 100K"

8:14PM Friday July 18, 2008

Winston Peters. Photo / Mark Mitchell

New Zealand First leader Winston Peters said tonight expatriate billionaire Owen Glenn donated $100,000 towards a legal action he mounted after the 2005 election, but he denied the money was given to his party and said he had only just found out about it.

Since July 12, when the Weekend Herald published an email from Mr Glenn in which the business tycoon said he had given money to NZ First, Mr Peters has angrily denied that any was received.

He has called reporters liars and called for the resignation of the Herald's editor Tim Murphy and its political editor Audrey Young. Continued

Related Political Animal Reading

Winston's silence is telling
Labour gets tangled in Peter's lies
Leaked Glenn Email
Winston got secret donations from Owen Glenn
Electoral Finance Bill: The purpose is clear

c Political Animal 2008