Thursday, May 31, 2007

Parliament has no Prayer

There is a debate currently on in New Zealand as to whether a Christian Prayer should continue to be held at the start of Parliament sessions.

I am a New Zealand citizen of Indian origin. I believe it is utterly unnecessary to change the present prayer or discontinue it from the Parliament. I understand that there is a reason for the same and the tradition need not change now. It may be a Christian prayer directed to Jesus Christ but I am sure it does not offend the later migrants to this beautiful country, whether they are Hindus, Muslims or Buddhists. The spirit behind it is that God be invoked at the start of an important day's work, and it does not matter which God it is addressed to.

As for the large number of people (stated to be about 35%) in New Zealand who are non-believers, I think most of them really don't care whether there is a prayer or not. The issue is being raised and blown up by a small number of people and is playing into the hands of Destiny's Church and similar hard-liners.

The new comers to any country have no reason to question each and every age-old tradition unless they impinge on their rights and well-being. It is enought that New Zealand is a tolerant and peaceful country; we are number 2 in the peace index, what an honour. As long as that continues and there is no prejudice on account of race, age, sex or whatever, a prayer need not be a divisive issue.

I am sure our Parliament can do with prayers of all kinds and wishes.

Sunday, May 20, 2007

The President and the Prince - Down and Out

I am glad Wolfowitz has at last resigned as President of the World Bank. He had lost the trust of the World community and could not have continued as a top Banker. He has however done a service by demonstrating how the World Bank could be influenced by the Americans, who themselves bleat so much about corruption, etc while their own leaders and heroes are being proved corrupt. Wolfowitz has added one more nail to the coffin of American decline in World Affairs.
I fervently hope that the next President of World Bank is not the one nominated by USA as has been the practice till now. I hear that they are thinking of nominating Tony Blair. That would be another disaster. Blair was a dishonest politician and there is no place for him in any financial institution. This is the right time to change the practice of an American being the President of World Bank and a European becoming chief of IMF. It will be a good opportunity to look for the right person.

Prince Harry is blessedly out of Iraq. But I really can't understand how the British Military Top Brass allowed news of his proposed deployment to leak and be discussed so openly. I think a better way would have been to keep such postings secret and get it over with outside the limelight. Have Harry go in secretly and serve for 6 months or so, take a few photographs and videos and after he comes back, release the footage with a good commentary to prove to the world the he has done his duty for the motherland. Instead the Military bungled the whole affair and finally handed a Public Relations Coup to the Iraqi insurgents. What a mindless strategy, No wonder they are losing the war itself.
I am also compelled to think about Richard the Lion Hearted, the famous English King who lead his troops in the Crusades. Where is that courage and daring nowadays from the Royals? May be Democracy as practised by Tony Blair's government has robbed the Royal Family of its Majesty. What a pity.

Saturday, May 05, 2007

Housing unaffordability in New Zealand

The present state of the housing market and the housing unaffordability in New Zealand is being talked about so much, I think any thing the Government will do to improve the situation will result in demand going up, pushing the prices further. That will be another short-term fiasco.

The demand pull in the housing market is due to different reasons, viz, immigration, overseas investment, New Zealand being a small economy with limited supply of houses, the unwillingness of Government to free land and rules to improve housing stock, the attractiveness of living in a peaceful country and of course the benefits of having rental properties. Inspite of high prices and higher cost of mortgages, people are compelled to buy houses, because they see that as their economic and social security. The demand pull has to be reduced by making available alternative investment opportunities. The stock market is small and shallow with very little movements to interest speculators. Tax regime is against savings and income levels are low.

The solutions could be
1. Tax incentive to save money. Tax rebates for interest and mortgage repayments.
2. More housing finance companies in the market to push down the rates
3. Asking Reserve Bank not to be too pre-occupied with inflation. Renting and interest costs are anyway too high adding to inflation.
4. Alternative investment avenues with tax concessions
5. Raising pay levels to reflect the efforts of workers and to keep up with international arena.
6. Subsidies to exporters.
7. Streamlining taxation to make more surplus available at the hands of people. With huge government surplus this is not impossible. Why should the marginal tax rate for individuals be 39% when the highest tax rate for companies is 33%. Is this not indirectly subsidising businesses when the reality should be other way around?
8. Development of other regions of the nation to reduce the pressure on Auckland area. Subsidies and tax incentives and may be migration assistance to people moving to other areas may help.
9. RBI or Governemnt intervention in foreign currency market like in USA, UK may be required to bring down the high dollor

All these will add to government costs, but a little bit of higher inflation may be the bitter drug required to bring the market to good health. Then the demand and supply position will correct itself over a period of time bringing some sense to the market.