It's said that National's proposed "infrastructure bonds" are a bold and innovative solution to funding infrastructure that will kickstart New Zealand's "growth engine." That's just bullshit.
To the extent that Key's proposed infrastructure bonds do attract real capital, they take that real capital away from genuine productive investment, ie., investments that show a real profit.
The extent to which investment in these bonds bids away investment in genuine productive investment is the extent to which NZ's growth engine is held back even further.
The reason that investment in these bonds will tend to bid away investment in genuine productive investment is that investment in the government-backed "infrastructure bonds" will be more secure.
They are not secure because the projects they back are less risky than private projects for wealth creation -- there is barely any government project anywhere in the world that ever came in under budget. Their greater security arises from the fact that unlike private businesses, government has a gun in their hand. To pay interest on privately-backed bonds, businesses have to make a profit. To pay back or pay interest on government bonds, the government holds the gun at taxpayers' heads.
That's neither innovative nor bold. That's just thuggery.