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The Environment a Significant Casualty Under TPPA – Sustainability Council of New Zealand

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Close scrutiny of the final TPPA text reveals that its impact on the environment is even worse than had been expected from leaked drafts.

A new paper, prepared by Simon Terry as part of a series supported by a New Zealand Law Foundation grant, concludes that the environment is a significant casualty under the TPPA.

Analysis of the final text shows that the gains for the environment are few and small scale. By contrast, foreign investors can sue the Government for compensation if they believe new environmental protections will reduce their future profits, and this is a serious threat.

When challenged on the need for such Investor State Dispute Settlement (ISDS) rules, ministers have repeatedly said that there would be no restraint on the government’s ability to regulate in the public interest. However, the text fails to protect the Government from being sued when taking such action.

While there are provisions that protect governments from being sued for acting to reduce smoking, there are no similar protections against when it comes to the environment or climate change.

The risk that a government could be successfully sued means the ISDS provisions will have a ‘chilling effect’ on the government’s willingness to undertake progressive environmental reform. This favours retaining low standards when these need to rise markedly.

A particular concern is the impact it could have on action to cut New Zealand’s greenhouse gas emissions. Two weeks ago, a Canadian company announced that it will use very similar rules to sue the US government for US$15 billion after President Obama vetoed approval for a pipeline that would have carried oil made from tar sands to the US.

In this country, ISDS rules could be used to sue the government if it increased emissions charges under the ETS, or restricted the mining of fossil fuels.

The TPPA contains two paragraphs that refer to a low emissions economy but do not mention the words “climate change” or the relevant global treaty, the UNFCCC. The aspirations contained in the newly minted Paris agreement are entirely disconnected from what governments are willing to sign for in a treaty that carries trade sanctions as a penalty for non-performance.

NZ and world academics stand with Turkish scholars – TEU

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A coalition of twenty tertiary education networks and associations from around the world are expressing grave concern over recent reports a thousand Turkish academics are under investigation.

The organisations have all signed a joint public letter expressing concern about reports that Turkish federal prosecutors have placed under investigation approximately 1,128 scholars, in apparent retaliation for their signing a public petition urging Turkish authorities to renew dialogue with factions in the southeastern area of the country.

The letter notes that some of the scholars have already been investigated for and/or charged with criminal offences including spreading “terrorist propaganda”, “inciting people to hatred, violence and breaking the law”, and “insulting Turkish institutions and the Turkish Republic”.

Dozens of scholars have reportedly already been detained and interrogated, and suspended or forced to resign from their positions at Turkish higher education institutions.

TEU national president Dr Sandra Grey, who signed the letter, says the Turkish government’s reported actions raise serious concerns not only for the scholars’ professional and personal well-being, but for the ability of intellectuals and institutions in Turkey to undertake scholarship.

The signatory organisations, including TEU, call on Turkish authorities to intervene before any further harm is done to the academics, their institutions, and to Turkey’s reputation.

“Many academics from New Zealand and around the world work with institutions and individuals from or within Turkey,” says Grey.

“We value these ties and feel it is important to support our colleagues in Turkey in the face of this unprecedented threat.”

The signatories hope that the letter will encourage Turkey to end any pending legal, administrative or professional actions against the academics and to renew publicly its commitment to internationally recognised principles of academic freedom, freedom of expression and freedom of association.

State Services Commission Must Make Effort to Pay Women 100% – PSA

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New figures show the government’s failing to lead by example in making sure female public servants are paid the same as their male colleagues.

The State Services Commission has revealed men working at Crown Law and the Ministry of Defence are paid nearly 40 per cent more on average than women.

The gap’s 28 per cent at the Canterbury Earthquake Recovery Authority, 26 per cent at the Ministry of Education and 27 per cent at the State Services Commission itself.

PSA National Secretary Erin Polaczuk says the numbers aren’t surprising – but they are very disappointing.

“The government and the State Services Commission are failing to drive home the message that women working in the public sector are worth 100 per cent.

“These figures send a clear signal that our female members are not valued by their employers.

“The government and the State Services Commission are part of the Joint Working Group on Pay Equity Principles, along with the PSA and other groups.

“They need to practice what they preach.

“We’re calling on the Commission in particular to take firm action on this, and require all departments to make progress on this by the time figures are released next year.”

Arrest Sends Chilling Message – NZUSA

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The New Zealand Union of Students’ Associations (NZUSA) is warning that the recent arrest of a student loan borrower as he left New Zealand for his home overseas sends a chilling message.

“We are concerned that this will turn those who are overseas with student loans into permanent refugees, and do little to encourage further compliance with the student loan scheme”, said Laura Harris, Acting Spokesperson for NZUSA.

There are currently 130,000 people overseas with student loans and Inland Revenue report that seventy percent of them are considered to be behind in their payments.

“There are clearly issues with the scheme if an overwhelming majority of the participants are non-compliant and the government needs to look at this before enforcing this draconian measure,” said Ms Harris.

“The right to freedom of movement and to a passport is a fundamental one enshrined in the International Covenant on Human Rights, and should not be broken over a debt – especially given New Zealand effectively abolished imprisonment for debt over one hundred years ago.”

“There are two main enquiries to the NZUSA office on this issue, the first is from borrowers who are faced with compulsory fixed amount repayments based on the size of their loans instead of their income, and which they find unaffordable. The second is from parents of overseas-based borrowers who fear they will never see their children again. This does nothing for either of those concerns.”

“Instead it sends a chilling message that student loan borrowers are cannon-fodder as the government plays at populist politics.”

TheDailyBlog.nz Top 5 News Headlines Saturday 23rd January 2016

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5: 

Officer Daniel Holtzclaw Sentenced to 263 Years in Prison

Former Oklahoma City police officer Daniel Holtzclaw has been sentenced to 263 consecutive years in prison for the serial rapes of African-American women. In a packed courtroom, supporters of the victims broke into song as they awaited the sentencing.

Democracy Now

4: 

‘Life-threatening’ winter storm expected to hit the east coast

National weather experts are warning of a potentially “crippling winter storm” bearing down on the eastern US from Friday through Sunday that began forming quickly late Wednesday, with deadly results.

Washington DC is in the bull’s eye of the approaching tempest, but storm conditions ranging from hail and severe thunder to several feet of snow are forecast from Florida to New England.

The capital is braced for white-out conditions with visibility close to zero, and is under a blizzard warning from 3pm on Friday through Sunday morning, with more than 30in of snow and wind gusts up to 50mph expected in places. If the predictions are accurate, snow totals could break a record set in 1922.

The Guardian

3: 

Dozens drown off Greek islands in deadliest January for refugees

At least 45 people, including 17 children, have died after their boats sank near two Greek islands as the number of deaths of migrants and refugees in the Mediterranean make this the deadliest January on record.

The deaths occurred off two small islands in the eastern Aegean. The highest death toll came when a wooden sailboat sank off Kalolymnos. The coastguard recovered 34 bodies and rescued 26 people. The number of those missing is not known, although between 70 and 100 people were thought to be on board.

The Guardian

2: 

Bloody Scenes at Somali Beach as Islamist Gunmen Storm Restaurant

At least 17 people were killed in the Somali capital of Mogadishu when five Islamist gunmen set off bombs and stormed a popular beachfront restaurant late on Thursday, Somali police said.

Al Shabaab, a militant group aligned with al Qaeda, said its fighters set off two car bombs at the Beach View Cafe on Mogadishu’s popular Lido beach, and engaged in a gun battle for hours with government troops trying to flush them out.

“The operation ended at 3 am last night and at least 17 civilians were killed,” police officer Osman Nur told Reuters on Friday.

Vice News

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Kiwis abroad fear returning to NZ

New Zealanders abroad are worried they might be arrested if they come back to the country because of unpaid student loans.

A Cook Islands math teacher was detained at Auckland Airport on Monday after owing $22,000 to the Inland Revenue Department.

Ngatokotoru Puna, 40, appeared in the Manukau District Court yesterday, where the judge acknowledged his efforts in paying back $5000 and making arrangements with IRD.

Mr Puna’s arrest marks the first time Inland Revenue has used its power to detain people with unpaid student debt.

Inland Revenue collections manager for student loans Stuart Duff said it was a last resort to arrest Mr Puna at the border, as they tried to engage with people and get them to pay.

There are 111,000 borrowers overseas, with about 70 percent of them defaulting on their loans.

RNZ

 

The Daily Blog Open Mic – Saturday 23rd January 2016

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Announce protest actions, general chit chat or give your opinion on issues we haven’t covered for the day.

Moderation rules are more lenient for this section, but try and play nicely.

 

If Key and the Police want a riot at TPPA – they’ll create one

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The audacity of Key lying repeatedly about the TPPA has led to a building fury.

The lie that this forced trade deal which signs away our sovereignty would be debated in Parliament is shown up for the falsehood it is when it was revealed that Key intended to sign the deal before Parliament even opened.

The lie that this won’t impact Maori Treaty rights or our ability to pass environmental laws has been shown up by new papers released this week and the entire economic case for the deal has been blown wide open by research released today.

By signing it a mere 2 days before Waitangi Day is almost attempting to create disorder.

Now we find out that the NZ Police are training their staff to start police a riot…

TPP: Police undertake riot training
New Zealand Police have been undertaking mass riot training ahead of the signing of the Trans-Pacific Partnership in Auckland next month.

The trade agreement, that has sparked widespread controversy due to its closed-door negotiations, will be signed by international diplomats on February 4.

Dozens of large-scale protests have been held across the country as the five years of negotiations for the deal came to a close in the US last year.

The Herald understands that increased riot training – officially known as public order training – has been taking place ahead of the signing, as police prepare for more possible civil unrest.

…Muldoon green lighted the Springbok tour in part to divide the country and harden his support base, by agreeing to a signing 2 days before Waitangi Day, Key is playing the same divide and rule politics.

The first chance to fight back is the Town Hall meeting in Auckland next Tuesday (live streamed on The Daily Blog) and the massive protest action planned on the 4th of February.

If the Police are actively training for a riot, then they are planning to manufacture one. Everyone going on the 4th must take their cellphones and record Police actions so we can hold the buggers to account. It would not be the first time a National Party Prime Minister used the Police to beat protesters and activists and if they do, we should be prepared to publicise that around the world.

We will not be intimidated. We will not back down. We will not allow Key and his corporate overlords sign away our democracy.

Let’s Not Lose Our Tempers: If John Key wants a riot outside Sky City – don’t give him one

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ON THE FACE OF IT John Key has made a serious tactical blunder. By insisting on hosting the signing of the Trans-pacific Partnership Agreement (TPPA) in New Zealand, just two days before Waitangi Day, at the country’s most notorious beneficiary of crony capitalism, he would appear to have given his opponents an unparalleled opportunity to rally their forces and reinvigorate their campaign.

Frankly, I’m suspicious. Because John Key is not prone to making tactical blunders. Which raises the worrying possibility that the readily predictable consequences of his decision – mass protest action outside Sky City, with a high probability of violence and property damage – may be exactly what he wants to happen.

The Chinese philosopher-general, Sun Tzu, wrote: “If your enemy is of choleric temper – irritate him.”

Few would argue that, at present, the opponents of the TPPA are in a very bad mood indeed. Even fewer would suggest that they have not been extremely irritated by the National Government’s decision to host the official signing of the TPPA at Sky City in Auckland on 4 February.

Is John Key setting them up?

That might be the case if it was within John Key’s power to refuse to host (or, at least, delay) the signing ceremony. To decline this honour (as the NZ Herald describes it) would, however, involve a tremendous loss of face by Key’s government. It was, after all, New Zealand that set the whole process in motion more than a decade ago. It would be an unthinkable humiliation for its government to ask another signatory to host the signing ceremony.

But if Key has no option but to host the signing of the TPPA, he most certainly does have a choice as to where it takes place. Which raises the question: Why Sky City? The ceremony could just as easily have been staged at the exclusive Millbrook Resort outside Queenstown. This was where President Clinton stayed in 1999, and where the Intelligence Directors of the “Five Eyes” nations gathered just a few years ago. Far away from New Zealand’s major cities, and easily defensible by a relatively small number of police and security personnel, the Millbrook Resort would not only have offered splendid “visuals” but also the smallest chance of disruption.

Which brings us back to Sun Tzu.

What does the Prime Minister know, that the people he is goading into besieging the Sky City complex do not know?

My best guess is that over the summer, Key and his pollster, David Farrar, have been drilling down deep into New Zealanders’ thoughts and feelings about the TPPA. Judging by the Government’s actions, this is what they have discovered.

That most New Zealanders are quite relaxed about the TPPA. Any fears Kiwis may have had about it in 2015 were allayed by a combination of Helen Clark’s pre-Christmas endorsement of the agreement, and the mainstream media’s generally positive coverage of the final draft. The media has painted the TPPA as being nowhere near as bad as even some of its supporters feared it would be, and that, overall, it will be of considerable benefit to New Zealand Inc.

It is also highly likely that the polling data has revealed the opponents of the TPPA to also be dyed-in-the-wool opponents of John Key and the National Government. Such people can be used, as they were used in the 2014 “Dirty Politics” furore, to reinforce the prejudices of National supporters, and shift the views of those who describe themselves as being undecided. This is especially likely if they can be manoeuvred into behaving in ways that cause “mainstream New Zealanders” to view them as irrational and potentially dangerous “nutters”.

Something John Key is reported as saying in this morning’s (22/1/16NZ Herald also makes me think that Farrar’s polling may have revealed that Prof Jane Kelsey is viewed by a majority of New Zealanders as being akin, politically, to Nicky Hager. That is to say, as a left-wing “stirrer” hell-bent on embarrassing the Government. How else should we interpret this morning’s thrust from the Prime Minister:

“I suspect people who are vehemently opposed are, broadly speaking, opposed to free trade agreements because the arguments they have put up have been proven to be incorrect. It doesn’t matter how many times we say Jane Kelsey is actually wrong, in the end she doesn’t want to believe she is wrong, and the people that follow her don’t want to believe that.”

When I read those words, my instant reaction was “uh-oh”. A politician doesn’t dismiss someone of Jane Kelsey’s standing in those terms unless he is pretty damn sure that a majority of the electorate already shares his views.

If that is the case, then an angry protest, or, worse, a violent riot, outside the Sky City complex will rebound, almost entirely, to the Government’s advantage. Not only it will reinforce the prejudices of Key’s supporters, but it will also alienate those who are still making up their mind on the TPPA.

It is, therefore, vitally important that any protest against the signing of the TPPA be absolutely non-violent. Every effort must be made to persuade anyone planning on forming, or joining, some sort of “Black Block”, to refrain from doing so. Masked militants are a gift to agent provocateurs from the security services. The experience of mass, anti-capitalist protests overseas is that Black Blocks are easily infiltrated and used to supply the mainstream media with the most provocative and violent footage from the protests.

The fight against the TPPA must not be waged on the streets – where John Key wants it to be waged – but in the hearts and minds of those New Zealanders who are still not sure that the agreement will, in the end, be good for their country.

If John Key wants a riot at Sky City, then that’s the very last thing the anti-TPPA movement should give him.

 

First Otara, now Ashburton

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The smiling assassin was back at her best yesterday with an incentivised plan to lure Samoan and Tongan families out of Auckland to places where those communities were supposedly growing and strong. It fits with National’s housing solutions in that it provides no immediate plan to build more affordable housing in Auckland where the need is, and no support for those families that will take up the offer regarding long term employment opportunities. So, typical of a government keen to keep house prices sky-high, their answer is to move people away from their social networks. Dislocated communities need social services support, raised community engagement and good local connections to give them the chance to thrive in new places. Disturbingly, Bennett (nor Tolley for that matter) made no comments on those key issues yesterday.
I wonder if Bennett read or learned much as minister of Social Development. About things like the correlation between un/employment and un/stable accommodation; the costs of commuting to work near where you live; poor accommodation and high family transience or even the health impacts on children of cold, damp housing. Jeepers! Did she read anything? Throwing money at people on a housing wait list is a short-sighted, temporary and ill informed solution on people it will have an enduring impact on. Pasifika families thrive in settings where people are happy, connected, warm and able to take up opportunities that give them confidence and reward. Something probably true for all social groups.
In 1964 Auckland’s home ownership figures stood at just over 50 per cent. Its generally lifted since then and is well above that today. Pasifika home ownership in the most recent 2013 census sits at about 32 per cent – light years behind a stat recorded more than half a century ago. So 50 years ago when 1 in 2 Aucklanders owned a home the answer was to dupe us out of Ponsonby, Grey Lynn, Westmere and Kingsland to parts of the city I know best. Places like Otara, Henderson, Mangere, Glen Innes and Ranui. But now that we’ve been shut out of home ownership in the suburbs of Auckland, the new plan is to pay our fares and relocation costs (or more correctly, removal costs) to Oamaru and Ashburton. This is not a long term solution but just another quick bandaid approach… and I’ve already heard the righteous bandwagon of people thru my office this morning saying we should just be grateful. At a guess and granted this now emerging pattern of government response to the issue…  the south pole will be the next migration wave for Pasifika and migrant communities.

The Economics of the TPPA – #TPPANoWay

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The fifth in a series of expert peer reviewed papers on the implications of the Trans-Pacific Partnership Agreement (TPPA) for New Zealand was posted on the TPP Legal website today.
The paper examines the key economic issues that likely to be impacted by the TPPA – the predicted economic benefits of the TPPA for the New Zealand economy, the implications for agricultural trade, the impact on value chains for New Zealand exporters, the potential for regulatory ‘chill’ and the degree to which it fulfils the aim of being a ‘21st Century agreement’.
The paper was co-authored by Tim Hazledine, Professor of Economics at the University of Auckland Business; Rod Oram, business journalist and author; Geoff Bertram, Senior Associate at the Institute for Policy and Governance at Victoria University; and Barry Coates, researcher and former Executive Director of Oxfam New Zealand. The peer reviewer was John Quiggin, an Australian Laureate Fellow in Economics at the University of Queensland.
“It is striking how little the TPPA will deliver. Without the TPPA, our GDP will grow by 47% by 2030 at current growth rates. The TPPA would add only 0.9%”, says Barry Coates, who co-authored the section on modelling with Tim Hazledine. 
“Even that small benefit is a gross exaggeration. The modelling makes unfounded assumptions, and the real benefits will be far smaller. If the full costs were included, it is doubtful that there would be any net economic benefit to the New Zealand economy.”
The main beneficiaries of tariff reductions from TPPA will be agricultural exporters, but modest tariff reductions of 1.3% on average by 2030 will be dwarfed by the ongoing volatility in commodity prices and exchange rates. The TPPA is not a gold standard agreement. “There remain extensive trade barriers to New Zealand agricultural exporters into the Japanese, Canadian and US food markets, and these are now locked in under the TPPA” explains Barry Coates who authored the section on agricultural trade. 
“‘The TPPA has also failed to tackle agricultural subsidies that are a major trade distortion. The TPPA has undermined negotiations in the World Trade Organisation, the only viable forum for removing these trade distorting subsidies.”
“The investor-state dispute provisions, combined with restrictions on state-owned enterprises, will deter future New Zealand governments from a whole raft of regulatory and industrial policies that would be in the public interest, for fear of litigation by corporate interests whose profits are threatened” says Geoff Bertram, who authored the section on regulatory chill. 
“The essence of the chilling process is the threat, not necessarily the actuality, of repercussions.  The TPPA’s last-minute exclusion of big tobacco from the dispute process has only grazed the tip of a very large iceberg.”
“The TPPA will likely reinforce our position as a commodity producer and hinder our progress up the value chain where greater economic prosperity lies,” says Rod Oram, who authored the sections on value chains and the 21st Century agreement.
“Moreover, the TPPA reads very much like a charter for incumbent businesses, with US companies to the fore, that are attempting to hold back the tides of economic change the world needs.”
The series of expert peer-reviewed papers is supported by a grant from the Law Foundation. Previous papers have examined the Implications for Regulatory Sovereignty (Jane Kelsey) and Investment (Amokura Kawharu), te Tiriti (Carwyn Jones et al), and Environment (Simon Terry). Research on the implications of the TPPA for local government will be released shortly.
Notes: The research report is on the TPP Legal website at: https://tpplegal.files.wordpress.com/2015/12/ep5-economics.pdf

Davos and the Future of Work

Grant-Robertson

Currently, the World Economic Forum meeting is taking place in the Swiss alps.  This annual march to Davos brings together individuals across the public and private sectors where these privileged few get to discuss the issues that affect all of us.

According to The Guardian, last year’s delegate list of 3,000 participants was 83% male with 64% coming from North America and Europe, highlighting the demographics of the financial elite.  This lack of diversity in 2016 is beyond disappointing, but predictable.

This year’s Forum agenda has been focused around the so-called “Fourth Industrial Revolution”, being the disruptive nature of digital technology.  The founder of the World Economic Forum, Klaus Schwab, writes:

“The Fourth Industrial Revolution has the potential to empower individuals and communities, as it creates new opportunities for economic, social, and personal development. But it also could lead to the marginalization of some groups, exacerbate inequality, create new security risks, and undermine human relationships.”

Schwab speaks to the inherent tension that disruptive technology provides for humanity – it can both liberate and marginalise our communities.  More jobs will become automated creating more insecurity for more people, yet the technology itself will create more opportunities too.

This is true in terms of our working lives, but also are tangible daily existence: how we interact with each other, how we shop, how we eat…our lives will change markedly in the next 20 years.  Just thinking about these potential changes in technology is extremely exciting.

The risks, though, are already evident today.  The narrowing of privacy is all too clear as the State becomes empowered by the technology to control information.  This is happening right now, essentially without any public discussion about how much power we actually want governments to have.  The governments are simply taking it, as the technology allows it.

So, the discussion around the Fourth Industrial Revolution is no doubt a critical one, making it even more disappointing to see the lack of diversity at the Forum and its inaccessibility to most of the planet on whose behalf the Forum claims to meet.

Presumably, though, the coffee chats at Davos between the bankers and the politicians will be less about disruption, and more about recent concerns with the global economy.

The global economic news in 2016 is almost all negative.  China’s growth is slowing down with its slowest rate of expansion in 25 years.  Countries and businesses who placed faith in China’s growth must be wobbling at the knees.  The markets are taking a hit, with some even predicting that this could be a repeat of the bad old days in 2008 with the global financial crisis.

It has only been eight years since that ultimate example of the failure of unregulated markets.  Yet, and despite that colossal failure, the economic orthodoxy of neo-liberalism has become even more entrenched with trickle up economics leading to our own gilded age.  Oxfam has just announced that a mere 62 individuals hold as much wealth as the poorest half of the world’s population.  Sixty two individuals holding the same as 3.6 billion.

During that time, conservative parties in the Anglo world have succeeded in selling a vision of conservatives as being better at running the global economy.  The proof is not in the pudding as corporate losses are socialised while public profits are privatised, but the public relations strategy of these conservatives has succeeded over evidence based policy development.  One liners trump considered policy, and this is particularly so in New Zealand.

In part, this dominance of conservatism is also due to the failure of progressive parties across the Anglo world to develop genuine responses to the current economic orthodoxy.

In this country, Labour’s “Future of Work” commission lead by Grant Robertson appears to be an attempt to come up with genuine responses.  Through its lifespan it will seek to address some of the same issues being discussed at Davos around the impact of technology.

This is, after all, the ultimate question for so-called “left” or “progressive” political parties as we head further into the 21st Century.  With employment becoming more and more precarious in our casualised labour market, how can “work” be characterised in a way that empowers rather than oppresses?  The disruptive nature of technology provides both questions and answers in this discussion.

But, talk is affordable and the challenge will be for Labour to turn the Future of Work commission into a clear and accessible vision of an exciting New Zealand.  There needs to be a tangible result from the commission.  That economic and social vision, one of empowerment, inclusiveness and valuing diversity, can begin to challenge the current economic orthodoxy provided it is accessible to and understood by the public.

But, the process itself is a positive one.  These are the crucial discussions that we need to have, and it should not be left to the financial elite to have them.  The rest of us have a role too and the Future of Work commission seems to be an attempt to create that space.

Inequality kills

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Global inequality returned to the news this week with the release of an updated report by Oxfam to coincide with the opening of the World Economic Forum in Davos for the global elite.

NZ Prime Minister John Key attended the Davos this year and he described the experience as “like speed dating in first class.” Trade Minister Tim Grosser accompanied Key, no doubt to the deserved accolades of his big business masters for pimping the alleged “benefits” of the Trans Pacific Partnership Agreement. 2500 bankers, corporate moguls and politicians discussed how to rule the world.

This year the conference discussed a report on “The Fourth Industrial Revolution, which includes developments in previously disjointed fields such as artificial intelligence and machine-learning, robotics, nanotechnology, 3-D printing, and genetics and biotechnology, will cause widespread disruption not only to business models but also to labour markets over the next five years, with enormous change predicted in the skill sets needed to thrive in the new landscape.” Last year they discussed global inequality.

The Oxfam report says that just 62 people own as much wealth as the poorer half of the world’s population. This number has fallen from 388 five years ago. The wealth of those 62 people increased by 44% in those five years to US$1.76 trillion. The rich are certainly getting richer.

The poor have also been getting poorer with a 41% decline in combined wealth of the poorest 3.6 billion people on the planet.

The top one percent own more than the other 99% combined!

“The big winners in our global economy are those at the top. Our economic system is heavily skewed in their favour. Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate,” the report said.

With economic power comes political power. That is what is on display at Davos and why John Key goes to pay homage.

The super rich write their own laws when it comes to tax or any other social obligation. The Oxfam report doesn’t even include the estimated US$7.6 trillion hidden in offshore tax havens which is equivalent to 8% of global wealth. If tax was paid on the income this wealth generated Oxfam estimates that an extra $190 billion a year would be available to governments to spend alleviating poverty.

Nine out of ten of the WEF corporate partners in Davos are present in at least one tax haven. Corporate investment in tax havens has increased 400% since the turn of the century.

Oxfam uses data from the Credit Suisse Global Wealth Databook and the Forbes billionaire list which I looked at a few weeks ago. The figures have been criticised because there as been a decline in extreme poverty for millions of people globally in recent decades. But this is almost exclusively a product of China lifting several hundred million people above the arbitrary US$1 a day threshold.

What is true is that extreme wealth inequality is also killing millions of people each year – including in the wealthiest countries. In the US life expectancy actually declined for white working class men for thew first time in recorded history. The Fergusson Commission report in St Louis found that avereage life expectancy ranged from 91 in the richest neighbourhoods to 56 in the poorest.

While public spending for the poor has been slashed in the US the top income earners specialise in tax avoidance on a massive scale. The New York Times reports that the wealthiest Americans have formed an “income defense industry” to shelter their riches, with “a high-priced phalanx of lawyers, estate planners, lobbyists and anti-tax activists who exploit and defend a dizzying array of tax maneuvers, virtually none of them available to taxpayers of more modest means.” US corporations share of foreign profits in tax havens has doubled to 56% over the last two decades.

A recent study found that 72% of all Fortune 500 companies operate tax havens with the tax loss to the US government around $90 billion a year. Meanwhile, 2.5 million US children experience homelessness each year.

Oxfam notes that four million children’s lives could be saved each year in Africa if 30% of Africa’s wealth was not held in tax havens. US$14 billion a year is lost in tax revenue that could be used for life-saving health and education projects.

It is over half a century since US president Johnstone declared a “War on Poverty”. The failure of that war is a failure of the system we live under – capitalism.

Can anything be done – under capitalism – to fix the problem? That is a question I will look at in a future blog.

TheDailyBlog.nz Top 5 News Headlines Friday 22nd January 2016

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2015 was Hottest Year Ever on Record—By Far

Scientists have reported 2015 was the hottest year on record by far. The experts pinned the record-breaking heat on long-term global warming caused by the emission of greenhouse gases. 2015’s record breaks the previous record set the year before, in 2014. In response to the findings, Gerald Meehl, a scientist at the National Center for Atmospheric Research, said, “The whole system is warming up, relentlessly.”

Democracy Now!

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Marina Litvinenko: ‘You can silence one person but not the whole world’

One day before it was published, Marina Litvinenko and her son, Anatoly, sat down to read the report on the murder of her husband and his father. They were invited to a government office and sworn, for 24 hours, to secrecy. They had no idea what was in it. It was the culmination of a long struggle: to discover the truth about Alexander Litvinenko’s death.

The report was a chunky blue booklet running to 328 pages. Its author, the retired high court judge Sir Robert Owen, had chaired last year’s public inquiry into Litvinenko’s poisoning in a Mayfair bar in November 2006. But how far would Owen go? Would he blame the Russian state, and President Vladimir Putinpersonally?

“We looked at the report and thought: ‘Yes!’” Marina said on Thursday. She spoke to the Guardian after Owen’s bombshell finding that Putin and his spy chief, Nikolai Patrushev, had “probably approved” the FSB’s killing of Litvinenko with polonium-210.

The Guardian

3: 

Israel razes Palestinian homes in key area of West Bank

Israeli authorities have demolished several homes in the strategically sensitive E1 region of the occupied West Bank, displacing at least 17 Palestinians, among them children.

Israeli troops forcibly evacuated local residents and bulldozers flattened four homes in the Jabal al-Baba community, on the outskirts of occupied East Jerusalem, on Thursday, according to a local spokesman.

“They showed up at four in the morning and removed everyone from their homes – men, women, children,” Daoud al-Jahalin, the spokesman of the Jahalin Bedouin tribe in the neighbouring village of Abu Nuwwar, told Al Jazeera.

“There were no journalists there to witness it so they did it all by force, pointing their weapons at people and hitting many of the young men.”

Aljazeera

2: 

Mayors challenge pay-to-move proposal

The government is considering paying those on Auckland’s state housing wait list a lump sum, as well as moving costs if they go somewhere with empty houses.National MP, Paula Bennett.

Half of the country’s entire wait list for social housing was in Auckland alone – over 2000 households. That backlog prompted Social Housing Minister Paula Bennett to suggest cash incentives to get people looking elsewhere.

Porirua’s mayor, Nick Leggett, said his city was one of the places it was suggested they go.

“Apparently we’re second on the list as their preferred location,” he said.

“We don’t have massive vacancies and we’ve got people with unmet need currently, who are not being housed. So I would prefer to see that locals have that need met first.”

RNZ

1: 

The Seven Stages of Establishment Backlash: Corbyn/Sanders Edition

The British political and media establishment incrementally lost its collective mind over the election of Jeremy Corbyn as leader of the country’s Labour Party, and its unraveling and implosion show no signs of receding yet. Bernie Sanders is nowhere near as radical as Corbyn; they are not even in the same universe. But, especially on economic issues, Sanders is a more fundamental, systemic critic than the oligarchical power centers are willing to tolerate, and his rejection of corporate dominance over politics, and corporate support for his campaigns, is particularly menacing. He is thus regarded as America’s version of a far-left extremist, threatening establishment power.

Prime Minister's Questions. Labour party leader Jeremy Corbyn speaks during Prime Minister's Questions in the House of Commons, London. Picture date: Wednesday January 20, 2016. See PA story POLITICS PMQs Corbyn. Photo credit should read: PA Wire URN:25290365

Labour Party leader Jeremy Corbyn speaks in the House of Commons.

Photo: PA Wire/AP

For those who observed the unfolding of the British reaction to Corbyn’s victory, it’s been fascinating to watch the D.C./Democratic establishment’s reaction to Sanders’ emergence replicate that, reading from the same script. I personally think Clinton’s nomination is extremely likely, but evidence of a growing Sanders movement is unmistakable. Because of the broader trends driving it, this is clearly unsettling to establishment Democrats — as it should be.

A poll last week found that Sanders has a large lead with millennial voters, including young women; as Rolling Stone put it: “Young female voters support Bernie Sanders by an expansive margin.” The New York Times yesterday trumpeted that, in New Hampshire, Sanders “has jumped out to a 27 percentage point lead,” which is “stunning by New Hampshire standards.” The Wall Street Journal yesterday, in an editorial titled “Taking Sanders Seriously,” declared it is “no longer impossible to imagine the 74-year-old socialist as the Democratic nominee.”

The Intercept

The Daily Blog Open Mic – Friday 22nd January 2016

openmike

 

Announce protest actions, general chit chat or give your opinion on issues we haven’t covered for the day.

Moderation rules are more lenient for this section, but try and play nicely.

 

New papers show TPPA will threaten climate change laws AND rob Maori sovereignty rights

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The Government said that the TPPA would be fully debated in Parliament.

Then it turns out they were planning to sign it a week before Parliament was even open.

The Government said the TPPA wouldn’t be signed in Auckland on the 4th of February.

Then admitted that was a lie and it is being signed in Auckland.

The Government said it wouldn’t be signed at the SkyCity Casino.

Then admitted that was a lie and it is being signed at SkyCity.

The Government have claimed the TPPA won’t stop Maori having their Sovereignty and Treaty rights respected.

Turns out that is a lie as well, new papers show…

KEY POINTS
• ‘With each instrument that it signs up to, the Crown has less freedom in how it can provide for and protect Māori, their tino rangatiratanga, and their interests in such diverse areas as culture, economic development and the environment.’ (Waitangi Tribunal, WAI-262, 2012)

• The TPPA fetters the sovereignty of New Zealand governments and has the potential to chill their future decisions, including those relating to Māori under te Tiriti o Waitangi, He Wakaputanga o te Rangatiratanga (Declaration of Independence), the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), and as a matter of public policy and social justice.

• The TPPA conflicts with Māori rights and Crown obligations under te Tiriti and the UNDRIP. The Crown’s prior commitment to indigenous peoples’ right to self-government and political autonomy and their right to the recognition, observance and enforcement of treaties should
have informed the negotiation of the TPPA.

• Because the TPPA has the potential to impact on hapu and iwi and their resources, it requires informed consent, or at the least a robust bona fide engagement so Māori views are fully incorporated into decision making.

• Despite the Wai 262 report saying the Crown’s then policies and practices did not comply with the Treaty, and too often came after decisions were made, there was no credible attempt to engage with Māori as the Crown’s Treaty Partner before or during the TPPA negotiations.

• Several chapters guarantee foreign states and their commercial interests the right to participate in New Zealand’s domestic decisions, while Māori as tangata whenua have no similar guarantees.

• Rights of Māori relating to Intellectual Property (IP), biodiversity, and environmental law and policy, guaranteed through te Tiriti o Waitangi and the UNDRIP, could be significantly affected by the TPPA.

• The IP chapter strengthens the rights of holders of state-recognized intellectual property rights, a form of intellectual property that has generally not protected mātauranga Māori and the rights of kaitiaki and has, in many cases, undermined those rights.

• Despite the Treaty of Waitangi exception, the provisions in the IP chapter will make it more difficult for Māori to achieve changes to New Zealand IP law that are necessary to protect rights and obligations of kaitiaki in relation to mātauranga Māori.

• Commercialisation of the mātauranga associated with genetic and biological resources, and of the resources themselves, can compromise the kaitiaki relationship and put the Crown in breach of Treaty principles. Yet the importance of conservation and biological diversity in theTPPA is framed by an objective of facilitating use of biological and genetic resources.

• The Environment chapter provides general commitments to environmental protection, specific detail on a small number of environmental issues, and some procedural mechanisms for cooperation between parties. But there is nothing that reflects Waitangi Tribunal recommendations to strengthen Māori participation in environmental decision-making, planning and management, including under the Resource Management Act.

• The UN special rapporteur on the rights of indigenous peoples singled out investment chapters of agreements like the TPPA and investor-state dispute settlement as a risk to indigenous rights and a constraint on their ability to gain remedies.

• The TPPA leaves the rights and interests of Māori vulnerable to foreign states and corporations who have no obligations under te Tiriti or the UNDRIP, and who will have a legal right to pursue their interests through private international mechanisms. This may further undermine the willingness of governments to implement Tribunal recommendations for fear of legal action.

• The Treaty exception is limited in scope and relies on the good will of the government to protect Māori rights, which repeated Waitangi Tribunal reports show it has failed to do.

• The government has made far-fetched claims regarding the economic gains to New Zealand, and to Māori because of their significant presence in natural resource sectors of the economy. Those figures are not supported by evidence and ignore the tangible and intangible costs of the TPPA to Māori.

• The TPPA’s economic model is based on trade liberalisation, monopoly rights to own exploit intellectual property, and privileged rights for foreign investors, and will not serve a future Māori economic development agenda that is built around core Māori values, commitment to environmental sustainability, and tino rangatiratanga.

• The Waitangi Tribunal will hold an urgent hearing in March 2016 on a claim that the TPPA is inconsistent with te Tiriti, focusing on the Crown’s processes and whether the Treaty of Waitangi exception fully protects Māori using 3 studies: fracking, affordable medicines, and water. The Crown has refused to defer further action on the TPPA until the claim is resolved.

The Government have claimed the TPPA won’t stop climate change legislation.

Turns out that is a lie as well…

KEY POINTS
• The environment is a significant casualty under the TPPA.

• Adopting the lens of the foreign investor when making broad governance changes through the TPPA has sidelined the opportunity to properly integrate management of the economy with management of other domains – such as the environment. The overall result for environmental governance is window dressing on the upside, and serious threats on the downside.

• In marked contrast to TPPA chapters that involve core commercial areas such as intellectual property, the environment chapter sets almost no new standards, with each partner country essentially left to set its own.

• A failed US proposal to have seven UN multilateral environmental agreements made enforceable by the TPPA would have created new problems, especially by opening the way to ‘forum shopping’.

• Parties are required to implement provisions in the Convention on International Trade in Endangered Species, but this UN treaty does not provide a legally enforceable prohibition on trade in illegally sourced timber, wildlife, and marine resources and the TPPA does not fix this.

• Two forms of fishing subsidy that contribute to overcapacity and overfishing are eliminated under the TPPA, but no similar progress has been made on the overarching issue of illegal, unreported and unregulated fishing.

• The TPPA’s enforcement provisions are very similar to those first developed for the US/Peru FTA, and it is continued violations of Peru’s obligations under that agreement have become the case study in how enforcement of such environmental protections has failed.

• When challenged on the need for ISDS provisions, ministers promoting the TPPA repeatedly stated that there would be no restraint on a government’s ability to regulate in the public interest. What the TPPA has delivered are provisions that completely fail to protect governments from being sued when taking such action.

• The risk that a government could be successfully sued means the ISDS provisions would have a ‘chilling effect’ on a government’s willingness to undertake progressive environmental reform. This favours retaining low standards when these need to rise markedly.

• There is a gross asymmetry in the rights and means accorded organisations that would seek to protect the commons for the public good, and rights and means accorded foreign investors to protect private wealth.

• The section on climate change contains two impotent paragraphs that do not mention the words “climate change” nor the relevant global treaty, the UNFCCC. The aspirations contained in the newly minted Paris agreement (made under the UNFCCC) are entirely disconnected from what the parties are willing to sign for in a treaty that carries trade sanctions as a penalty for non-performance.

• The TPPA provides assistance to GMO exporting countries by making it harder for other countries to independently regulate GM foods. A combination of information requirements, the TPPA’s dispute procedures, and new working groups, together amount to a significant new level of pressure on TPPA governments to accept GM foods under ‘mutual recognition’ standards – those of the exporter.

Throughout this entire fiasco the Government have lied through their teeth. This is not a free trade deal it is a forced trade deal, a geopolitical leash to control us and put us forever in America’s sphere of influence to stop China gaining power in the Pacific. It creates an upper house to our Parliament ruled by American Corporates.

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As climate change threatens our very existence this Government is signing a deal to stop us from being able to pass laws to stop that.

As Maori face more and more inequality, the Government is signing a deal 2 days before Waitangi Day to rob them of their sovereignty.

As NZers struggle to make ends meet, the Government signs a deal that will push our medicine costs up.

As NZers try to use the internet to conquer the tyranny of distance and open new markets, the Government sign a deal that gives corporate Hollywood even more power to dictate copyright terms.

Dear NZ – you have been conned and lied to about the TPPA from the beginning. The fight back starts now, this is a war as every bit real as any threat NZ has ever faced, except this time most of our own Political system is helping the enemy.

You can fight back Tuesday next week at the Town Hall and on the 4th of February.