Saturday, November 19, 2016

The arbitrary nature of state calls

According to MSD, regarding quake affected areas:
The employment subsidy will be available for businesses in Kaikoura, Cheviot, Waiau, Rotherham, Mt Lyford and Ward who face a dramatic drop in their turnover as a direct result of the earthquakes and the closure of State Highway One.
It will be paid to businesses with fewer than 20 employees where closure of the state highway and damage to the coastal environment means they cannot operate and they cannot pay staff wages.
Naturally outsiders sympathize with those economically affected by the quake.

But the collective and compulsory way we organise and protect ourselves means that arbitrary lines will be drawn by bureaucrats who are necessarily disconnected. Kaikoura business Whale Watch, for example, won't qualify. The assumption that they are bigger, stronger and more resilient  ignores that they have greater outgoings.

I don't know if there is a better way.

But  if people had voluntary and enhanced choice about protecting themselves and their businesses, outcomes may be less fickle and  jarring.


Mark Wahlberg said...

"Kaikoura business Whale Watch, for example, won't qualify. The assumption that they are bigger, stronger and more resilient ignores that they have greater outgoings". I suggest this is because this business, being part of Ngai Tahu's multi million dollar organisation, will have systems in place to cover such events. Any losses made by Whale Watch will create tax advantages for the larger conglomerate. I imagine they will have access to capital to rebuild.
Isn't that how it works?
Of course the smaller mom and pop businesses will have to take bigger mortgages over their enterprises and hope they can weather the storm, or get swallowed up by those that can. For many, advantage comes out of adversity and life goes on.

Don W said...

How long will it be before road and rail will be fixed.? What is the future viability of these businesses.? Is there any point in keeping businesses afloat with taxpayers money if they may not have a future because of lack of custom.? Would it perhaps be better for these struggling businesses to close down and look at other options.? As Mark says,' For many,advantage comes out of adversity and life goes on. Necessity is the mother of invention.

Mark Wahlberg said...

Sir Mark Solomon steps down as head of Ngai Tahu and 4 days later, government comes to the financial aid of large businesses affected by kaikoura's palsy. With Solomon out of favour with many in authority, one could be forgiven for thinking naughty thoughts.

No road access for another six months said the news. Perhaps the Whale Watch boats will start a ferry service to the very exclusive and isolated resort of kaikouraville.
A millionaire's playground in the making.
Where's Jimmy Buffet when they need him?