Libz Energy spokesman Greg Balle has also spoken, saying this morning at 'Scoop' most of what needs to be said [watch out for some odd HTML]
Something is very wrong with the electricity infrastructure in New Zealand. We have the Commerce Commission deciding to intervene in the supposedly free market to dictate pricing, costing and any other thing it deems necessary to providing cheap power to the people. Comparing state intervention in electricity with centrally-planned Communist Russia, Balle reminds us: "The last time this stunt was pulled, the people ended up largely without power, shivering in the dark.""Tick off the bureaucratic errors to date," Balle says, and then goes on to do so. Go and have a read.
And why does the Communist Commission's Head Commissar Paula Bloody Rebstock insist on meddling? As I've said before, "Most western countries have laws against 'anti-competitive behaviour,' and most people think those laws are there to protect consumers. Think again." Last year, for example, on the subject of Telecom, former Libertarianz leader Russell Watkins said:
The only thing that needs to be regulated is the government, the only price that needs fixing and reducing is government spending, the best savings for the consumer will come when the government abolishes outfits like the interfering Communist Commission—and many more government departments besides.Quite right. What empowers Rebstock and her fellow Commissars is the ridiculous idea of 'antitrust' - the idea that governments need to enforce 'pure and perfect competition' in order to preserve a 'free' market. As I said on that topic last year:
Nothing could better summarise the underlying anti-success motif of Antitrust laws and the motives of the meddling arseholes who infest our own localDoes anything more need to be said? Then George Reisman has probably already said it: the model that Rebstock wish to impose is a floating, 'Platonic,' idea of competition that bears no relation to the real world. Vector's shareholders are the first to realise that. Vector's consumers will be the next.
CommunistCommerce Commission (who most recently announced they would be 'reviewing' Fairfax's purchase of TradeMe with a view to throwing a spanner into it). More on this in the book 'The Abolition of Antitrust' (reviewed here) and the Antitrust is Anti-competitive page of Capitalism.Org.
UPDATE: There's one more thing to be said, and it's been said at Ruth's: "More shareholder wealth destroyed. Airports will be next. Shareholders seem way more upset about this than Telecom, too. Witness this late night, drunken rant from an outraged shareholder..." Read on for that rant, and for a graphic depiction of The Destruction of Wealth by Bureaucrat.
First they came for Telecom. Then they came for Vector...
LINK: Electricity regulations crippling industry - Greg Balle, Libertarianz, Scoop
Vector reels at commission plan - Stuff
Free competition at gunpoint - Not PC (Peter Cresswell)
Antitrust is anti-competitive - Capitalism.Org
'Pure and perfect competition' - Not PC (Peter Cresswell)
Platonic Competition (Part 1) - George Reisman's blog
Platonic Competition (Part 2) - George Reisman's blog
RELATED: Economics, Politics-NZ, Libz