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

The Mike Hosking Breakfast

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3d ago 2:11

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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.

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

The Mike Hosking Breakfast

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published 3d ago