Gordon Campbell on the Sabin case, and pressures on Greece and coyotes   28 Jan 2015

Gordon Campbell

 

Brain fades are one thing, but the brain freeze that seems to have beset the Prime Minister over the Mike Sabin affair is an even more worrying affliction. Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint. The media has been reporting on this matter for over a month, including details that the Police officers involved are from Waitemata, and not from the Northland region that Sabin represents, and where he did his policing before becoming an MP.

However, the PM will not comment on any aspect of the story. This leaves the public entirely ill-informed by the PM as to (a) whether a Police investigation is taking place into a sitting MP, and a member of the caucus that Key leads (b) when Key learned of the alleged complaint against Sabin (c) whether Key knew of the complaint before he appointed Sabin to the law and order committee post (d) whether Key thinks it appropriate that Sabin should stand down from the law and order committee post until the complaint is investigated.

As Guyon Espiner pointed out on RNZ this morning, it is very hard to see how a Police inquiry – or any other legal issue – would be compromised by the PM confirming whether a Police investigation is under way. In the circumstances, the cone of silence dropped over the Sabin story looks more like a strategy of political containment than of respect for the legal sensitivities – and it hardly fosters public confidence that Sabin is being treated as any ordinary member of the public would be, if facing a similar complaint.

The Pressure Coming on Greece
Barely 72 hours after the historic victory of the anti-austerity Syriza party in Greece, the screws are already being applied to make it rein in its plans. Here’s a classic call for “moderation” from the West’s business media:

The bargain to be struck here will involve both sides taking steps they have resisted: The EU must agree to further meaningful debt relief and reduce budget-surplus targets enough to spur growth in the Greek economy. In return, the Syriza government must embark on more, not fewer, of the reforms that are needed to re-ignite the economy -- and abandon dreams of sparking a leftist revolution across Europe.

Right. “Debt relief…enough to spur growth” on one hand, in return for a virtual capitulation by Syriza, including a commitment to more of the reforms demanded by the unholy trinity of the EU, the European Central Bank and the IMF. That’s the kind of “deal” that Syriza can never countenance, not without betraying its supporters. Where’s the concession and apologies by the IMF/ECB that austerity has done far more harm than good, socially and economically? The IMF, at least, knows it has failed. Some 18 months ago, the IMF conceded that it had screwed up its handling of the bailout in Greece and had under-estimated the damage done by cuts in health and education spending.

So where’s the payback? Clearly, it is now time for the pain to be shared by Greece’s creditors. Is there room for a genuine compromise? The new Finance Minister (and long-time austerity critic) Yanis Varoulakis has always argued that Greece’s payback obligations should be a consequence of economic growth and should not precede it – which seems eminently reasonable. Why should the IMF/ECB demand that painful policies be imposed on the most vulnerable members of Greek society regardless of whether the policies work or not?

If they do prove to work, then the repayment schedule can be met out of the gains – rather than imposing hardships that have torpedoed the chances of recovery. The depressing reality is that the social safety net in Greece has been slashed apart because creditors have demanded that successive Greek governments must cut spending, as a sacrifice to their balance sheets and to the budget-balancing gods.

There is little need for a head-on collision between Greece and Europe as Foreign Policy points out:

Greece’s creditors have already provided the country with some relief in the form of repayment extensions, interest rate reductions, and a decision to return any profits from the loans to Athens. The average maturity of Greek debt — or when the bill comes due — now stands at 16.5 years. That figure compares favorably to other exposed European economies, including Italy, Portugal, and Ireland. Extending maturity would give Greece more time to pay up.

Yet Germany and other creditors – Foreign Policy also argues – could do far more, and this would enable the Syriza leadership to declare a victory of sorts – at least on debt reduction, and the immediate cost of financing the debt. The numbers involved are impressive:

According to calculations carried out by the Bruegel think tank, further reducing interest rates on current loans, a move it says wouldn’t hurt lenders’ bottom lines, would save Greece 6.4 billion euros, or 3.4 percent of its 2015 GDP. Extending when the loans come due by another 10 years would save Greece 4.5 percent of 2015 GDP. Extending the due date for loans provided by the European Financial Stability Facility by 10 years would save 17 percent of 2015 GDP. Implemented together, these options would save Greece 31.7 billion euros, or 17 percent of 2015 GDP.

Two things arise from this analysis. Why didn’t these better debt repayment terms get offered to the far more compliant Greek governments that preceded the Syriza coalition? (It seems that the bankers will only relent if and when they’re threatened.) More to the point though, none of these savings (i.e. in borrowing costs to service Greece’s debt mountain) will allow the Syriza coalition to spend this money on social programmes to address the crisis in homelessness, drug use and unemployment that have come in the wake of the austerity measures imposed on the country. On current signals, all the spending that will be allowed is a small stimulus programme to foster growth in the Greek economy. Clearly, Syriza needs to put the frighteners on the bankers, even more than it has done to date.

Wild thing, think I love you
It isn’t often you get two great bands writing songs about the self same thing. This week, Modest Mouse released a new song called “Coyotes” that was inspired – apparently - by a real life incident in 2002 when a coyote hitched a ride on the transit rail shuttle at Portland’s airport. That year, Sleater-Kinney wrote a song called “Light Rail Coyote” about the same incident.

 

 

Both terrific. Yet for an inkling of the otherworldly realm of the coyote, it is hard to beat this clip (taken from the Johnny Cash TV show) of Pete Seeger singing “Coyote, My Little Brother” – an environmental protest song written in the 1950s by the Native American musician Peter La Farge. (In this clip, Cash is clearly finding it hard to concentrate, at least on anything other than himself. Blame those darn pills.) Finally, there’s the more conventional “Coyotes” song by Don Edwards, from the Werner Herzog documentary Grizzly Man.

 

 

ENDS

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more