All Is Not Well In The State Of New Zealand

Verbal fisticuffs were thrown in the corridors of power today as the political backlash over the government’s purchase of new fleet of new BMW limousines refused to die down. This is becoming known as the Cash for Cars scandal.

The purchase of the cars, some with extras such as heated seats, went ahead despite National’s claims that New Zealand is operating under austerity measures. Meanwhile the IMF and ratings agencies placed the country on “At Watch” status.

From Stuff

An angry exchange has broken out between Labour and National amid claims of a smear campaign after Trevor Mallard labelled John Key unethical and came close to calling his government corrupt.

The exchange was sparked by accusations from Labour that National accepted a $50,000 donation from the owner of a new and used BMW dealership in Auckland following the decision to upgrade the ministerial BMW fleet

Mr Mallard went further in Parliament accusing Mr Key personally of transferring “the morals and ethics of Merrill Lynch – a company that was at the… end of a lot of deals and went down when the financial crisis came” to New Zealand.

“That is the level of ethics he has transferred to being the prime minister of New Zealand.”…read more here

The Herald added

Trevor Mallard also said Prime Minister John Key attended a fundraising event at BMW before the contract was agreed.

This could be one to keep an eye on as the story develops.

For background read blog NZ poverty a ‘lifestyle choice’ : Let them drink coke

Other bloggers on this issue

Cash for Cars? (TheStandard.org)

Where is Hipkins dissenting report? (Whaleoil)

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One thought on “All Is Not Well In The State Of New Zealand

  1. Recent, from the business section of Scoop, Curry says

    New Zealand NOT a PIIG – “Figures from the budget show the country’s net international investment position, or total debt including government and private, was an estimated 78.6% of gross domestic product in the year ended March 31. That ranks New Zealand alongside Portugal, Italy, Ireland, Greece, and Spain, Europe’s PIIGS”.

    However, the NZD can be depreciated, unlike the currencies of the countries above, so the administration believes this will be less of a problem in New Zealand. Finance Minister Bill English is soon to visit Hong Kong and Singapore in an attempt to attract investment money from those places. Direct Asian investment in New Zealand has not been large due to the fact that there is a small consumer market. However, Asian companies WILL invest in New Zealand to gain control over resources such as forestry or food processing. It is unclear what type of investment FM English is trying to attract, but the Kiwis on the street are deeply unhappy about the idea of their land and its resources being “sold out” to foreigners.

    Fact – Dr. Steve Sjuggerud says New Zealanders are “tapped out” after over- indulging in their favourite sweet, property buying. New Zealand households stand out as having the worst savings record in the developed world.

    S.A. of the Pacific?
    Quote – Businessman Charles Kang, a trade consultant originally from Singapore, said many of his overseas clients had raised concerns about safety issues over doing business in New Zealand after news of the killings.
    “One compared New Zealand to South Africa, and another said Auckland was fast becoming for us what Oakland is to America,” said Mr Kang.
    http://www.odt.co.nz/news/national/11766/tourists-told-new-zealand-not-039safe-country039

    http://www.investinnz.co.nz/ “Forgein [sic] investment” ROFL not a good look if they can’t even spell it?

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