Bernard : Seasons Greetings , big Gummy Bear !

Page 6 of that report has a graph showing trusts receipts . Trustee trusts , set up to minimise tax obligations , soared after 2001 , dramatically so . This tells me that those people who Michael Cullen specifically targeted with his new 39 % top marginal income tax rate ( the " rich pricks " ) , were savvy enough to get around it . And did so , in boat loads .

The populance are not going to let usurious tax loads be dumped upon them , without a counter-reaction .

Roger - good point. It was one made early on at the TWG conf. Am guessing Cullen knew the data too, and for a good while, so why didn't he make the obvious change? Maybe too many of those 'affected' hooked on the 'fix' by then?

Question is, how do we allow NZ smaller companies to get larger, more profitable, not sell out/stay here?

Cheers, Les.

What this tells me is that Foreigners are smart... they buy our best businesses.

AND as we develop more great businesses... Foreigners will buy those too.

They are smart !!!

AND we really welcome.. "Foreign Direct Investment"... we love it..!!!

What are Foreigners - Mark ?

Bernard : Is it possible that these figures are skewered by industry type , rather than by managerial competence . For instance , heavy equity / low return businesses ( such as farms ) are predominately NZ owned . Whereas the banking industry , is low equity / high return , and predominantly Australian owned .

The conclusion being that Kiwis may not necessarily be bad business operators , but certainly are poor at picking which industries to invest into .

Bernanke , the cranky , he says cheap money didn't cause the housing bubble ? Hey bro , sis , Ma , wake up you lot , c'mon , spread yer wings , we can fly ! Oink oink .

Rogie,
Kaikoura is more hot then windy- so far.
I'm not sure in which category of business I (we) belong to. I consider myself as a Kiwi with a Swiss business culture.
For the last 3 months we cannot say we are in a recession- business is really great and November was the best since immigrating 18 years ago.

Raising money for Thomson zh zh - the richest person in Lowburn. Have you been talking (drinking) with Irish friends in Chch (Pub) ?

I just made an interesting discovery from my office window. Some sparrow parents are feeding their offspring's with good food, chasing caterpillars - others feed bread found on the footpath.

"The price of timber will rise by up to 10% from February due to supply difficulties and a big surge in log exports, mainly to China, according to the Timber Industy Federation"..radio nz....and it's goodbye to lower building costs which never really got here did they. Oh well, best plan a house without timber framing. looks like those shipping containers are the way to go. I think this can be logged under inflation...don't you agree Alan?

..a sparrow found some bread crumb - a slavery product.

Walter...
I really do hope you're not suggesting someone should process logs here and make things...

Sounds like the industrialisation you alluded to in another post.

Can't we skip all the dirty stuff and sell services?
Hey! Why not just create an underclass, and rent houses to them?
Or sell fish quota!

Next you'll suggest that the taxpayer should help with the capital costs of modern saw milling.

I prefer to buy it from the warehouse on its return journey.
Much better quality than we could manage.

It is probably cheaper to import sawn lumber from the Russian near east and get a better grade of wood!

Can't we skip all the dirty stuff and sell services?

No - KW of important reasons described many times, as a nation we cannot allow this to happen we need both here in NZ not mass produced, but on a high level, top quality manufactured products (Logging is "Dirty stuff"), or we have to reduce our spending.
---
I prefer to buy it from the warehouse on its return journey.
Much better quality than we could manage.

Those attitudes are the major problems here in NZ and lead to massive indebtedness up to the roof - and by the way the loss to know what quality really means.

Walter

Might be some ideas in here?

"Creating a High-Value Economy", Sir John Rose, Chief Executive, Rolls-Royce plc, Address to the Royal Society for the Encouragement of Arts, Manufactures and Commerce, 10 November 2009.

http://www.thersa.org/__data/assets/pdf_file/0007/249154/Rose-RSA-speech...

At least two bits I liked:

1) "And we recognise that retaining the status quo is not an option." (Sad that in NZ this seems to be our only option....)

2) As John Kaye put it:

"Taken as a whole, market economies have proved far more effective than planned economies. But this does not imply that every individual market outcome is superior to every individual planned outcome."

Left-wing, right-wing - discuss. (Watch for those spheres coming through that world.)

Enjoy.

Martin H, Roelof - am getting onto the other thing, soon... Cheers, Les.

page 12 , LES : The MIT are responsible for the founding of 26000 firms , with total sales of $ 2 trillion , and employing 3.3 million people . Equivalent to the GDP of the world's 11'th largest economy ............ All this , from the Massachusetts Institute of Technology .

And : China sends its' mayors to Singapore to train them to run a city state . .... " This is not an amateur sport . "

That page 12 is a doozy ! WOW !!!

Les, Rogie and others,
Finally, there is some understanding/ agreement from members what I'm proposing since joining this forum. In general Sir John Rose's article is explaining more or less what I mean.
As a small and remote nation, not only economically we have advantages other nations do not have. Time for revolutionary changes the way we do economics.

Walter

Walter - given your interpretation of that speech, how far does the state need to "get into the market" to make things happen? Am asking because:

http://www.interest.co.nz/ratesblog/index.php/2009/12/30/summer-chart-se...

Roger - this is the crux of it, off pages 3 and 4, where he answers the question, "What is high-value activity?":

"It has a high research and technology content;
It requires a profound understanding of the customer;

It exploits both scientific and experiential intellectual property;

It involves the definition of solutions that meet complex requirements;

It requires well-developed systems integration skills;

It involves managing data to inform responses to complex events, .... "

These outcomes are based on 'winning behaviours.' Compare to MEA's policy position and the evolutionary algorithm of a complex adaptive system comparison, as described in my book review of Beinhocker's 'Origin of Wealth', that John Kay endorses as, "The most important business book of 2006." Enable, incentivise the relevant behaviours in a 'pluralistic' way (Walter - little finger wag there to you central planners in case you start getting too pervasive and/or picking winners, in terms of firms, sectors - naughty.) and stand back from the touch paper.

Cheers, Les.

LES : He lost me at the part that the 5 lb. goose was calculated to be sucked into an engine drawing the equivalent of a squash-court full of air every second . ........... . Been out and about since then , the geese in our neighbourhood seem to be bigger than his . Does that invalidate my experiment to replicate his Rolls Royce jet engine ?............The locals were all very generous with their old vacuum cleaners ........ Roger & Out .

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