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Friday, February 10, 2012

Pike River Coal Mine Disaster: The cost of public administration

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The Pike River coal mine disaster highlights why you cannot rely on government to be engaged in operating or executive roles. There are several problems:
1. They are idiots - they do not know about life. Their entire thought process is antithetical to critical thinking. They are modern-day serfs; not suited to regulation or monitoring under the current system of govt.
2. They have a conflict of interest - The Pike River Mine was owned by the operating & marketing company Pike River Coal. This company was listed in Australia and NZ; but in reality the company was not so independent. It was substantially owned by Solid Energy; a 100% government owned enterprise. You can imagine how little compliance or accountability will result when you have two idiots talking to each other.

In the context of this case - a disaster was imminent:
1. The lack of public oversight
2. The gassy coals
3. The lack of UG mine experience
4. The recruitment of poor staff - those that couldn't get a job in Australia for 2x the wage.

Read this article. The problem here is public adminstration under representative democracy - it does not matter whether it was a Labour Party or National Party government. i.e. Labour cut coal mining inspectors; and National Party could equally care less.

1 comments:

  1. I agree. This is succinctly written. A heart breaking story for families who have lost their loved ones. At first I was impressed at how quickly the politicians reacted and consoled the families at the time of disaster. However, I am now severely disappointed at the NZ govt. Seems it was all for show.

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'Buying NZ Property – Download the free sample readings!

The NZ property market is shaping up as one of the most attractive property investment markets for the next few years. High yielding property and the collapse of the NZD make NZ the perfect counter-cyclical investment if you buy right! In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now! New Zealand Property Report 2010 - Download the table of contents or buy this 180-page report at our online store for just $US19.95.