Lies and truth about food prices

May 19, 2008 by

– John Edmundson

Nobody trying to pay their bills recently could have failed to notice the way basic foods have increased in price. In New Zealand, we’ve suffered massive increases in the price of staple items like bread, milk and other dairy products. Turn on the news and it is immediately obvious that this is a global problem. Food riots and protests from countries as far removed as Haiti and Egypt make it clear that the world is faced with a major food crisis.

Globally, food prices have risen by a staggering eighty three percent in the last three years. Grain costs in particular have skyrocketed. Rice has doubled in price in the past twelve months. Corn has risen in price by seventy percent while wheat and soybeans have similarly hit record prices. These costs have then flowed on to other foods as well. With a large proportion of the world’s cattle being grain fed, dairy and meat prices have also been affected. Globally, the cost of cooking oil has gone up. In New Zealand, with inflation pushing at the Reserve Bank’s upper limit, our rulers’ response has been to tell New Zealand workers not to push for “inflationary” wage increases. In other words, New Zealand workers and the poor should bear the burden of rising food prices.

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Filed Under: Economics, Workers in Struggle Tagged With:

Abolish GST

May 4, 2008 by

The Workers Party for many years has said GST has to go. Below is an article originally published in The Spark in July 2005, in which Philip Ferguson explains why the rich favour this tax and why we oppose it:

In recent months the National Party has been pushing for income tax cuts. Although they present this in a populist way, as if it would benefit workers, they vigorously oppose measures such as raising the minimum wage, serious across-the-board wage rises like those sought by Auckland bus drivers and the abolition of GST.

During the upcoming election campaign, one of the minimum platform points of the Anti-Capitalist Alliance [now called the Workers Party] will be demanding the abolition of GST, something that would be done by any government with even a token desire to make life a little easier for workers, especially the poorest workers.

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Filed Under: 2008 Election, Campaign Against GST, Economics

Internationalist response to FTA needed

April 30, 2008 by

– John Edmundson

The New Zealand-China Free Trade Agreement (FTA) signed on April 7 is the first free trade agreement China has made with any developed Western country. It is an historic deal for the Chinese government in its push to be fully accepted into the capitalist club.

The deal is historic for New Zealand too, for the simple reason that China’s economy is by far the largest that New Zealand has ever signed such an agreement with. With a growing middle class already numbering over 100 million, China offers a huge market for New Zealand businesses, particularly for luxury goods and services.

Reaction to the FTA has been mixed. Opponents of the agreement have ranged from the Green Party on the left, to New Zealand First on the xenophobic right. The CTU, eager to cosy up to Labour in the lead-up to an election that Labour is uncertain of winning, has come out in support of the agreement.

The critics of the FTA have claimed that the agreement in some way condones the poor human rights record of the Chinese government. This objection has become more strident with the recent Chinese crackdown on Tibetan protests.

The New Zealand government and the FTA’s supporters have countered with the point that New Zealand trades with all sorts of countries with all sorts of human rights records. In fact, government-led boycotts of countries over “human rights abuses” have a dubious record, with the independence of small, weak countries often being threatened by countries in the imperialist world on spurious grounds.

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Filed Under: Economics, Foreign Ownership, Free Trade Tagged With:

Should socialists opppose free trade? A response to an Alliance activist

April 9, 2008 by

With the signing of the recent FTA with China, the debate over the issue of free trade has been reignited among workers and left-wing political activists in New Zealand.

Many left union officials and members of political parties such as the Alliance have argued that immigration controls and tariffs must be retained to protect NZ jobs and businesses from being undercut by foreign competition.

By contrast the Workers Party strongly believes that this kind of economic protectionism is a poison which only serves to divide the international working class and encourages illusions in the “progressive” nature of local capitalists. We argue that the solution to NZ companies closing down production and laying off workers is not protectionism, but instead a militant union-led campaign to occupy all those businesses threatened with closure and keep them running under workers’ control.

Below we reprint an interview from 2004, in which Workers Party and Spark editorial board member Don Franks responds to a series of questions from an Alliance Party activist on the question of free trade and the approach that the left should take towards it:

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Filed Under: Economics, Fighting Redundancies, Free Trade Tagged With:

Modern New Zealand unions – “fighting blindfold”?

April 2, 2008 by

Philip Ferguson

It’s not often that leading trade union officials in New Zealand speak openly about the exploitation of the working class, let alone about the surplus-value created by workers and expropriated by employers. Therefore, when such speeches are made, it’s useful to analyse what is being said, why, and what the political implications are for trade union activism.

Last November, Robert Reid, the national president of the National Distribution Union, one of the few left-leaning unions, made such a speech at a gathering organised by the Trade Union History Project to commemorate the life of the late Rona Bailey, a longtime New Zealand communist.

In the speech, Reid recalled being part of Marxist study groups with Rona Bailey and learning about surplus-value. Reid then rightly noted that “without an appreciation of Marxist economics or political economy, we have no understanding of how wealth is created and expropriated in the 21st century. This leaves, in many cases, the modern trade union movement fighting blindfolded.”

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Filed Under: Economics, Workers in Struggle Tagged With: ,
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