New Zealand Listener

Politics

Jane Clifton

- JANE CLIFTON

It’s beginning to look as though Judith Collins is politicall­y immortal. This week, she has reminded us of that scene from Carrie: she’s vanquished, she’s dead, she’s buried … and then a hand bursts from the grave. Two policies she set in motion, even while she was relegated to her own Government’s Do Not Resuscitat­e list, have come onto the main agenda: the GST loophole in internet shopping is being fixed, and the new Administra­tion is set to take on the predatory pricing practices of petrol companies.

These issues wouldn’t be nearly as far advanced were it not for Collins, which goes to show that, one, some policies are genuinely bipartisan despite the rhetoric and, two, you can’t necessaril­y bury an unwanted MP by giving her “nothing” jobs.

As Prime Minister, Bill English sought to relegate the stroppy MP, giving her revenue and energy, portfolios with little traditiona­l scope for glory.

What he overlooked was that most women of Collins’ age grew up with tomes like 101 Ways With a Pound of Mince. She rapidly turned the revenue gig into a populist crusade, launching irreversib­le preparatio­ns to force multinatio­nals such as Amazon and Google to be assessed for tax in New Zealand. She also rescued the GST-free-internet-shopping issue from the too-hard basket, setting it on a one-way voyage to Pay Up-land. For sport, she rarked up the foreign-owned petrol companies about their pricing practices, and when some refused to co-operate, she commission­ed an inquiry by officials. All this work has given the new Government some handy “Here’s one we prepared earlier!” moments this week.

FAIR’S FAIR

The GST extension to low-value internet imports won’t be wildly popular, but most consumers will probably concede it’s fair. Local retailers have had to compete with foreign suppliers untroubled by the 15% impost. The question was, how to levy GST on the flood of imported goods without creating a bureaucrat­ic horror. What Collins, and subsequent­ly the new Government, realised was that, a few years on from this country’s initial policy work on the issue, other countries had started to tax big online traders such as Amazon, so this tiny nation wouldn’t need to reinvent the wheel.

It is now no big deal that foreign companies supplying goods worth more than $60,000 a year to New Zealand will have to register for GST. It’s still fair to ask, why bother chasing low-value imports? The projected revenue’s not flash, the tax still won’t catch all the sales – like those of small traders – and a 15% handicap for foreign competitor­s won’t be enough to save local retailers.

But here the Kiwi “fair go” ethos kicks in. We hate that Amazon doesn’t pay company tax here, so it’s hard to defend giving it a GST advantage over local retailers. Given we don’t know the true extent of internet imports, the change could bring in much more than the estimated

Most women of Collins’ age grew up with tomes like 101 Ways With a Pound of Mince.

$64 million-$81 million a year.

The petrol-pricing issue’s a potential blockbuste­r, as it’s one of a slew of consumer problems this country faces because it’s too small to have fully competitiv­e markets in all sectors. Petrol, like the grocery, electricit­y, post, building-products, car-parts, airline and airport sectors, is dominated by too few players to be competitiv­e. We pay more than we should because there’s little to stop companies charging at will.

When pressed, they plead, “We need to charge extra to provide for capital investment”. Seldom is this excuse subject to expert scrutiny. Under the Commerce Act, BP has done nothing wrong by charging a bigger margin in some districts to make up for losses in another, a

practice a leaked strategy disclosed. But this would not pass most consumers’ sniff test for Kiwi fairness.

Collins’ work has helped set the agenda for this Government to reassess the Commerce Act’s scope over petrol and other uncompetit­ive markets.

This could be career fodder for another relegated minister, Kris Faafoi. He holds the opportunit­yrich commerce portfolio – but outside Cabinet. His colleague Meka Whaitiri, also outside Cabinet, has made a star turn of her unpromisin­g customs and associate agricultur­e jobs, co-fronting the new GST policy and introducin­g groundbrea­king animal welfare legislatio­n.

SWIRLING RUMOURS

Although it would never be a bestseller, Crusher Collins’ 101 Ways With a Dead-end Cabinet Job would be a better investment of time than the latest swirl of political rumours. Vile stories about politician­s of all stripes thrived before the internet. Now lurid nonsense gets passed off as fact online. Whether the product of malice or of Chinese-whisper misconstru­als, these rumours are most vicious when they attack MPs’ nearest and dearest.

The police have taken the unpreceden­ted step of saying they have no damaging informatio­n about the Prime Minister’s partner, Clarke Gayford, which shows just how much momentum a smear campaign can achieve without a skerrick of evidence.

National, overtly at least, has been discouragi­ng its supporters from peddling rumours, too, suggesting that muck-chucking is a much-discredite­d political ploy. When it was in Government, it saw how Labour’s feverish efforts to find dirt on John Key back- fired. It rightly judges that anyone caught traffickin­g this dirt would cop the most public odium, while the rumour victims would deservedly get the public’s sympathy.

Alas, too many people want to believe the absolute worst, and that powerful elites are covering it up.

The sheer powerlessn­ess of a rumour’s victim is a loophole in our legal system and a challenge to media ethics. To confront the nastiness publicly gives it more oxygen. But keeping one’s head down doesn’t make it go away.

We’re tough on politician­s. They volunteer, they’re well rewarded, they dish it out, they can take it. But when it’s an unfounded rumour, even the toughest can be cruelly persecuted.

For the media, even making inquiries to check informatio­n risks disseminat­ing dirt. After having exhausted that approach, the lessscrupu­lous media will keep circling and thus lend weight to a rumour by “just happening to have” stories about the besieged personalit­y at the ready in case someone else is able to stand up an allegation.

Let’s hope an increasing­ly mediasavvy public can spot the pattern and discount nasty stories unless facts are produced.

It’s not as if politician­s don’t give their rivals enough ammo for legitimate attack. No one needs to make stuff up.

Let’s hope an increasing­ly mediasavvy public discounts nasty stories unless facts are produced.

 ??  ?? Judith Collins: her work was not in vain.
Judith Collins: her work was not in vain.
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