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. 

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Episode Transcript

Speaker 1 (00:00):
Now forget the detail of the power reforms we dealt
with them yesterday. Let's deal with the politics of this
and a habit the government has that is hurting them.
There's a pattern here. The patterns the government tell us
there's something wrong. Could be banks, could be supermarkets, could
be power companies, could be airlines. The last government had
the same problem they took on petrol stations. The concern
is partially real. It's real because one there might be,
you know, bits and pieces of the sector that could

(00:21):
do with some tightening or tidying, and to there's almost
always consumer concern. Now the consumer ancst 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 but a too expensive? The answer
will always be yes. Doesn't mean that's a problem the
government can solve. So having stated the problem, you've then
created the expectation that you will do something about it.

(00:44):
Trouble with yesterday's power deal was the obligatory report suggested
more than actually eventuated by the time they got around
to making a final decision. 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 exams. The EA gets clearer writing instructions,
big deal. The industry had a perception removed that the

(01:05):
government don't want to get into big projects. While a
phone call would have sorted that one, I would have thought,
we are to import in several years some LPG great.
Nothing wrong with any of that, and it would have
landed well if they hadn't given you the sense that
reform capital letters was on the way. Personally, I've never
thought the industry is that broken. I mean labor and
their oil and gas debarcle hobbled us for several years

(01:26):
while we wait for the windmills. But a cold bridge
is that 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 a is that it kind of feel about it,
and it had that feel about it because the government
hadn't worked out the balance between hype and reality of

(01:49):
their passion projects. Where trouble sits allegedly, Banks Airlines supermarkets
or power, namely the one that materially is different because
of what they did, not what they said politically, that's
their failure. For more from the Mic Asking Breakfast, listen
live to News Talks at B from six am weekdays,
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