I may have mentioned that the environmentalists at The Standard are upset with Rio Tinto. They wrote quite a vicious post about their recent indication that its smelter will close if the ETS is brought it.
I'm sure the smelter is not the only thing that will close. Apparently, farming and living will follow soon after.
Try as I might I can't quite get my head around the masses of misconceptions and oddities in the post. I will try to interpret and disect:
Multi-national minerals company Rio Tinto is threatening
to close its Tiwai Point aluminium smelter in Bluff and move its
production offshore if the Emissions Trading Scheme is enacted because
they say it will increase power prices.
'Multinational' is code for 'hate me' and minerals is a long word for mining, which also means 'hate me'.
This is not the first time Rio Tinto has held New Zealand to ransom
using the threat of closing this economic powerhouse of Southland.
Nor will it be the last. Threat of closure is about the only weapon a dying company has against a rapacious state.
In
fact, pretty much every year Rio Tinto threatens to pull the plug over
something, whether it be power prices (Tiwai Point uses 13% of New
Zealand’s electricity and gets it at a massively discounted secret
price)
I doubt it would be reasonable for it to pay full retail price, given that it consumes 13% of New Zealand's electricity. If my house used that my I would be looking for a pretty serious discount too.
its desire to buy Manapouri power station, (which supplies Tiwai
Point with power)
No doubt to create some certainty for its future.
or tax rates (the 10% drop in the corporate rate that
came on April 1 is already forgotten).
The tax rate drop from 33% to 30%, not to 23%. It hardly registered with anyone.
Rio Tinto is making record
profits as the world price
for alumina sours - profits in the last four years total nearly $500
million - but it knows the Government can’t afford to let a factory
that, directly and indirectly, employs 3000 people and brings around $500 million to the economy annually to close. So it keeps on demanding more.
It isn't demanding anything. What on earth are you on about? It is the government that is demanding things. Rio Tinto just wants to keep things as they are please, so they can carry on with their business.
What is wrong with profits, anyway? Isn't that how they pay the bills and expand? What sort of a company would it be if it made record losses? I'll tell you: a crap one.
This is a greedy, heartless company, that always wants more, and has
a record of doing what it takes to get it.
As opposed to the New Zealand government, which has reduced taxes dramatically in the past few years and has a record of listening when people protest about its anti-smacking and electoral finance ideas.
Companies don't have hearts, you are getting confused with humans, Why should they? Companies exist to organise resources in the most efficient way to make profits for their shareholders.
In New Zealand, they
exploited National’s Employment Contracts Act to break the workers’ union.
That would also have had a number of benefits, and it isn't clear why workers at one particular company should be better off than others.
They are implicated in human rights violations across the globe
including the support of apartheid, have illegally mined uranium in
Namibia and their “security services” have engaged in mercenary work in
support of dictatorships. The company started the Bougainville conflict
when it used its political muscle in Australia and Papua New Guinea to
get the right to dig the world’s biggest hole, the Panguna copper mine,
on Bougainville. Locals objected to the rape of their land by Rio
Tinto, others wanted the gold for themselves. A civil war ignited that
cost 30,000 lives. Rio Tinto made hundreds of millions and moved on.
If Rio Tinto can get gold out of a copper mine, then it's no wonder The Standard is so jealous. Still, why didn't the locals dig it up earlier? Perhaps they didn't have the capital? Perhaps they didn't know is was there and it took a large multinational with pots of cash to find it? Who knows. I can't imagine Rio Tinto being happy about operating in the midst of a civil war.
There is surely no suggestion that Rio Tinto aims to start a civil war in Bluff? Is Rio Tinto a necessary precondition for a civil war? Which side was Rio Tinto on anyway?
What Rio Tinto is trying now over the ETS is a classic example of
capital holding democracy over the barrel.
The ETS is not a democratic idea. It is being forced on us by a bunch of environmentalists. If Rio Tinto is on our side, then good on them.
Capital is international; it
can leave a country if it wants.
Said through gritted teeth - perhaps that could be changed also with a suitable law?
Democracy is limited to competing
nation-states that only have limited cooperation.
I think this is a plea for a single world government. Let's hope it never happens.
So, if a country’s
people want better wages, or taxes to pay for social services, or to
reduce greenhouse gases and big business doesn’t like it, they can
threaten that country’s government with a capital strike: ‘play by our
rules or we leave, and you lose jobs’.
But in this case the people don't want the ETS. It is in fact an economic disaster which threatens to take our economy apart piece by piece within 10 years. Nor do we want higher taxes, they are far too high already. As for greenhouse gases, I believe Rio Tinto runs on hydro. But only environmentalists believe all that global warming muck anyway.
What is the intent of this paragraph? That shareholders should not be able to seek the best investments available in the world? That governments should nationalise everything? It isn't clear at all.
Well, I say Rio Tinto should f... off.
Well then, the ETS is a policy just made for you. Implement it quickly and Rio Tinto will do as you bid.
This is our country and we
will make the rules here,
Actually it's not entirely clear who is behind the ETS. I haven't met anyone who wants it who isn't an environmentalist. If I were making the rules I would melt the ETS in the smelter.
not some soulless multi-national that is only
out for itself.
Only humans have souls. It would be an odd multi-national what was more interested in the affairs of others than its own. I suspect the shareholders would replace the board fairly quickly.
Rio Tinto can withdraw their capital but there will
still be a state of the art smelter and trained workforce in Bluff.
Assuming they don't all head off also. Australia has some good smelters.
The
smelter can be brought into public ownership and run by New Zealand,
with the profits staying in New Zealand.
So it is going to be nationalised! Lovely. I know of no surer way to ensure that the smelter never makes another evil profit in its life.
The profits are a tiny part of the turnover, maybe 15%, of which 30% tax would be 3/5 of 'stuff all'. Much larger is the wage bill, and the government gets about 35% of the wage bill before it hits the ground.
It is hard to describe The Standard's post as anything but menacing and nasty. I can only hope and pray that these people don't have any control in the government or our economy is in serious trouble.