NZ Government is Captured

In politics, regulatory capture is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests of a minor constituency.1

... As a rule, regulation is acquired by the industry and is designed and operated primarily for its benefit...

We propose the general hypothesis: every industry or occupation that has enough political power to utilize the state will seek to control entry.

George Stigler, The Theory of Economic Regulation (1971)^[5]

Last year, I observed that our government had been captured by corporate interests.

Don’t get me wrong here - there’s nothing wrong with businesses.

Every government serves constituents.

And businesses have always been an integral part of modern economics. The more benign governments generally try to govern for all - balancing interests across all legitimate groups for the betterment of society.

In our current system, businesses take risks, expend capital, and seek to gain returns for its owners. Some fail and some succeed.

They typically hire workers and workers take pay to buy from businesses and/or invest.

As capital grew though, over time, those“owners” became less and less the Mum and Pop shops.

They became international conglomerates - some directed by oligarchs, or those that worked for their interests, and some directly owned by them -

For example:

• The owner of CNN and many other media outlets is Warner Bros, whose CEO noted that “Trump is better for business” before the US election.
• It’s Paramount Pictures, which recently cancelled the top rated late night Stephen Colbert show after Colbert called out corruption - a show that Donald J Trump detests.
• It’s Amazon, whose owner forbid its Washington Post editorial team to endorse Kamala Harris and after Trump won, bent the knee in spectacular, cringeworthy fashion.
• It’s Mark Zuckerberg who told Meta employees that Facebook etc. will become “a productive partnership to the” Trump government. He’s so desperate to win he’s even bought a house close by to Trump to keep lobbying.
• It’s Peter Thiel, the NZ citizen, whose money reportedly fueled JD Vance, a guy who will become President should Trump expire.
• The fossil fuel industry is dominated by billionaires e.g. Australia’s richest woman, Gina Rinehart, and Koch in the US
• It’s Fox and Sky News. Enough said.
• It’s Daily Mail.

“Ownership” is also commonly shared by public shareholders and/or private equity investors who are not close to the “business”, but are all seeking maximum return.

You know because many people want their Kiwisaver to increase - and we laud those stocks that do.

It’s a simplified picture but enough to illustrate a point -

And that is:

Many of us co-created and bought into the system we are in to a large extent.

And while many of us now see the target as neoliberalism and the uber-wealthy, my view is that until it became difficult for more and more people, large segments of us didn’t really care too much.

Or to put it more accurately, we didn’t necessarily understand the issues - nor take time to pay attention.

And the issues are clear.

There is nothing wrong with success or wealth.

BUT when those who have reached significant levels of wealth use that capital to:

• Extract more from the “lower” rungs of economic stratification to enrich themselves
• Run or manipulate media for their own goals in a way that misinforms the public and/or creates division for their own gain
• Manipulates political and social discourse for their advantage e.g hiring people to argue that genetically modified foods don’t need labelling (Andrew Hoggard / ACT wants less labelling and less regulation on GMO foods)
• Pay their way to political capture e.g. incentivising, supporting and placing candidates into office so that they can enact their wishes

Then we have a real problem.

I argue that the American government was captured when Donald J Trump was elected.

Yes, to a large extent the first time.

But the second time was/is extraordinary.

Under the auspices of the “think/junk tank”, Heritage Foundation Project 2025, these vested interests set out a detailed playbook for how Trump, or indeed any Republican candidate, could take over the American government - and enact a corporate, Christo-fascist state.

Those measures include dismantling the Department of Education, directing aid in exchange for setting up “free market” paradises in third world countries, demolishing concepts around climate change, LGBTQ, firing any workers who don’t pledge complete loyalty etc.

Trump has happily complied - each of these has been done and continues now.

Trump has pushed for more fossil-fuel production, rhapsodized about “beautiful coal”, dubbed climate change a “hoax” and invoked his “drill, baby, drill” mantra.2

Experts allege Trump ‘invented’ a national energy crisis to justify expansion of coal, oil and gas’.

Does that sound familiar?

Because it is the precise same playbook New Zealand’s Coalition right wing have used to justify our own expansion of a dying, fossil fuel future -as Luxon does in this clip.

These governments are all regressive because they are pinned to a dialogue and narrative that they have been taught, and they then pass on this rhetoric from within a very powerful position.

In my own view, they are captured politicians who no longer seek the public interest, nor hold a strategic, evidence based way.

This morning, I watched Winston Peters call RNZ journalist Guyon Espinor a “sausage” for revealing details about NZ First’s connections to tobacco. He’s been using this supposed insult for a while now against various figures, including the opposition.

Peters had boasted about how his social media viewership surpasses3 RNZ’s, and mocked our public broadcaster for running the story.

As a recent media outlet reported, the minority parties in New Zealand (ACT and NZ First) now have their own social media teams to capture and put out footage for them.4

Some might call that propaganda, but it’s very effective.

Like the old system we co-existed within, many have now accepted this new way.

Trump’s “fake and biased” news propaganda has worked brilliantly, and some NZ politicians are simply delighted.

Barring significant electoral reform, donor transparency and the like, it will be very difficult to amend such elements — and you can be sure that any attempt to will be treated as another “must take down” by those pulling the strings.

Anyone who thinks it is easy isn’t paying attention - many of the people behind the scenes are wealthier than New Zealand by a mile - and governments are nothing compared to their awesome might and multi-pronged resources.

Still, it may be worth trying.

Lobbyists parachuted into politics in NZ First, National, ACT Coalition:

- Chris Bishop (Philip Morris / Tobacco) Bishop's father also helped co-set up Taxpayers Union which has accepted tobacco industry funding

- Nicola Willis (Fonterra) Willis's father was a successful business man, lawyer and ex-Chair of an active oil and mining exploration company in NZ with close ties to the industry

- Casey Costello (Taxpayers Union - linked to tobacco money & co-founder/trustee of Hobsons Pledge)

- David Seymour (Atlas Network - major links to Alan Gibbs, Godfather of ACT who once noted NZ should privatise schools etc.)

- Brooke Van Velden (No real work experience other than as a lobbyist and working with Seymour)

- Nicole McKee (Gun lobbyist) McKee was described as a "gun lobbyist" by NZ Police in 2024. Mckee was a strong critic of the Sixth Labour Government's gun laws, passed following the Christchurch mosque shootings of 15 March 2019.

- Andrew Hoggard (Federated Farmers President)

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Thanks,

Tui

Dirty Politics

Peters enjoys widespread popularity. He rubs shoulders with the stars of Dirty Politics.

He pushed popular lies about Benajmin Doyle for political gain.

But he’s also savvy.

But he could not do any of this, and gain this prominence, without Luxon’s cowardice and spineless presence.

It’s ironic that NZ First is eating National’s lunch and once again, National have their own leader to thank.

The rest of us say “No thank you”

The Power of Manipulation

This video of a woman about to lose it all, but still wouldn’t vote the Democrats in the USA, shows the cognitive dissonance and power of manipulation and “fake news”

It also reflects education levels, and the risks of non-nuanced thinking - the latter of which applies across all voters, and why genuinse expertise is an important part of discourse.

Newsroom will be featuring a new “Who benefits” series to shine a spotlight on lobbying

It will be written by David Williams and Fox Meyer, two very solid and credible journalists within media.

Williams writes:

While the narrative about the media is one of commercial woe and decline, great journalism is being done every day. Our best moments, as journalists, come when we can ask questions to which we already know the answer.

We can’t do this alone. We can do even better with your help. If you know where influence is being brought to bear, let us know and we’ll take a look.

You can email me in total confidence: [email protected]

His first article under this banner is:

Who Benefits: The power of the farm lobby, part 1

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