Kiwibank and ‘Three strikes’ revisited

May 28, 2010

It’s been a busy week in this household, so this time I’m just going to comment briefly on two current news items that I’ve expounded on in the past.

1. Kiwibank and its possible partial sale

I am again disturbed by the renewed suggestions by the right-wing elements of the government and some of the business community (you can tell them by the glint in their eyes as they envisage getting a piece of the action) that shares in Kiwibank be made available to the public.

(I was going to link here to a blog article I wrote last July, setting out my thoughts at that time. Unfortunately, the link to that article seems to have been lost, so I’ve copied it and placed it at the bottom of this current article.)

My comments last July were made at the time when some pundits were suggesting that the government-owned bank be expanded to provide full trading services and therefore needed vast new investment – presumably from shareholders.

Now we seem to be one step on, wondering how the extra money might be obtained. But my main problem remains with the underlying assumption – that because Kiwibank is a business it must seek to grow. Businesses cannot stand still, it’s said. You grow or you die.

I challenge this assumption. There are plenty of cases where this does not need to happen. As a simple example, consider the web design business I ran for 9 years. After a few years working hard to build a viable and sustainable operation, I faced the decision of either maintaining the limited (but, it seemed, much appreciated) service as a one-man band, or taking on staff and pushing harder for a much larger and richer client base. I chose the former, and never regretted it. I worked on improving my service and my expertise, but not on growing beyond what one person could handle.

Kiwibank was set up for the specific purpose of mainly serving the indigenous domestic and small business market, and apparently it is now running that quite profitably and offering services that the privately owned banks are not interested in providing (such as small, part-time teller services in NZ Post shops).

But this is not enough for Big Business. They demand that Kiwibank grows to compete with the big boys. For this, it needs private investment. But then it would have to please its shareholders as top priority and offer unprofitable services next. And it would probably have to play in the international money market and borrow larger amounts from overseas.

I reject that. I suspect that Kiwibank’s boss, Sam Knowles, rejects it too, and has announced his resignation because he doesn’t believe that this sort of quantum leap in investment to fund wider trading operations is good for Kiwibank’s core customers.

With the exception of Jim Anderton’s input, the argument seems to have “moved on” to one of who should own shares in Kiwibank, but for me (and Jim) it should be back at a more fundamental issue: Does the bank have to grow through external stimulus? Should it not retain the business model it started with and grow organically within its own capabilities? Should it not continue to be the one larger bank with national coverage that offers banking services to ordinary Kiwis first and making profits and growing second?

2. Three Strikes law

I also wrote about this in January when the policy was announced and steps began to enact it.  You can read what I had to say then.

Since then I’ve done a great deal more reading on this topic and listened to various commentators and visiting legal experts, and my view has changed somewhat.

I still think that there will be some gains when the really hard-core violent criminals who are unlikely ever to be capable of rehabilitation. But I do believe that they can (and should) be dealt with within existing law (or what was existing law until this week).

My opinion has modified (or hardened) in two major ways:

1. Considering that only crimes committed from now on can contribute to the “three strikes” tally, it may be 10-20 years or even more before these targeted criminals are even considered for their 3rd strike. That is just so far out that it doesn’t register. Do we really have to wait that long before the main supposed main benefits – the ability to lock up the real nasties for ever – are manifest? It appears so, and therefore the law is just a bit of pandering to alarmists without actually doing anything in the short to medium term.

2. One of the most consistent claims for the need for harsher penalties is that they will send a deterrent message to potential criminals that it’s not worth it, and therefore there will be fewer crimes. Now if this does in fact hold any water at all, we should see immediate effects. Like, from today onward. We have sent the message. If it’s to have any effect, it must cause violent crime rates to slow right now. If they don’t within a statistically adequate period like one year, then the deterrence argument is just a load of hogwash. I know which outcome my money would be on.

———————————————————————————————-

Earlier comments on Kiwibank, written July 2009:

I may be wrong but . . . . I get a feeling that Big Business is making another push to get Kiwibank gobbled up into the game playing and greed of the more-market business world. And that possibility disappoints and concerns me.

Last Saturday (July 17th) the Christchurch Press newspaper published a feature report on Kiwibank in the Businessday pages, written by Roeland van den Bergh. As we’re all aware, Kiwibank was set up at the start of this decade, and in the eyes of ordinary, supportive Kiwis it had two clear primary purposes, as summarised by van den Bergh: to “look after ordinary New Zealanders and keep profits onshore”.

Through the 1990s large numbers of people were becoming unhappy at the growing fees being charged by the four main banks, all Australian owned, along with increasing profits remitted to their Australian shareholders. So . . . despite complaints from the ideologues and big players of the business world, Kiwibank was set up and initially funded by the government to provide a viable nationwide, New Zealand-owned alternative. And it has done surprisingly well, putting some pressure on the big four and reminding us of the days when banking meant financial services for ordinary people rather than speculating on world markets to foster greed and maximise profits for remote shareholders.

Kiwibank, we’ve been told, has grown steadily to the point where its market share is edging up toward the space long occupied by the big four, especially among domestic customers. Apparently it’s been working mainly on the business model that I always thought (in my naivety?) is or should be the basic operation of banks – borrowing from people with excess money (paying interest for the privilege) and lending re-packaged money to suitable people who needed it (charging interest for the service).

As van den Bergh wrote, referring also to the other main locally-owned bank TSB, “both banks fund their lending almost entirely from domestic retail deposits, while the big banks have been hamstrung by their need to borrow on international money markets, which have been frozen”.

That confirmed for me something that has bothered since last year’s financial crash – why was it such a huge problem that nervous banks were not lending to each other, causing the system to grind to a halt? Shouldn’t banks just be borrowing from savers (people and businesses) and lending to borrowers (other people and businesses)? Why do they need to spend so much effort borrowing off and lending to each other? (Apart, that is, from extracting fees for every transaction.)

Back to Kiwibank. So far so good with the Press article. Then I became uneasy as I read that as Kiwibank “grows its balance sheet beyond $10b it will have to increasingly diversify its funding to include international wholesale lending to maintain its growth.” (my italics).

Here we see again the Big Business ethic that growth is imperative. Apparently it’s not enough to just do what you do well or better, to grow organically by getting more and more customers to use and appreciate your core services. And according to the growth imperative if the growth rate is not being maintained, then it’s not enough to operate on a plateau.

Why does Kiwibank need to keep growing in size and reach, even when it may mean that its whole raison d’etre is imperilled? Ah yes, of course . . . it’s because the people pulling the strings – the government – are aligned with the business world. They’re not satisfied with providing a service that can pay for itself, grow organically, and offer the bonus of an optional, modest dividend. Forget about serving customers and retaining income within NZ, just make money for the government and its business friends!

As van den Bergh wrote, “The Government has discussed expanding Kiwibank amid calls for it to beef up the State-owned bank to help push interest rates lower.” OK, beef it up and take advantage of the bank’s ability to affect domestic interest rates, but don’t get into the same silly corporate money games with overseas markets that have caused so much grief recently to the private banking industry and society as a whole.


Bailey Kurariki reflects badly on us all

March 27, 2010

Yet again, Bailey Kurariki is in the news after another brush with the law.

I may be wrong but …. I believe that all New Zealanders are at least partly responsible for Bailey ongoing personal problems and the challenge his behaviour is posing for authorities.

Bailey, now 20 years old, was convicted and imprisoned eight years ago for his part (deemed manslaughter) in a youth gang murder, and since his release he has been dogged by media hoping to catch him swearing or spitting at the cameras again or being hauled off to court for breaking some parole condition.

Bailey was created within a society that didn’t care about him, by parents who didn’t know how to care. He would have been marginalised from a very early age by any “decent, respectable” neighbours. “Johnny, I don’t want you to mix with that Bailey Kurariki, he’s trouble and not at all nice, best to steer clear.”

Bailey did what in retrospect seems pretty logical when not fitting into the mainstream – join in with a gang of like souls and get up to mischief. One day the mischief got too serious and they ambushed a pizza delivery man and bashed him. He died. Apparently Bailey’s role was to help lure the pizza man to the place where the others could attack.

Since then, I cannot remember having seen or heard one single media report that didn’t introduce Bailey as “the country’s youngest convicted killer, Bailey Kurariki ….” (this quote from the latest I found on the Stuff website this week). It’s a bit like always introducing John Key in local news as “New Zealand prime minister, John Key …” The idea is, apparently, that the five Kiwis who don’t already know this, will now it know, and the other 4 million reading will have it reinforced.

So now we can no longer ever consider Bailey as anyone other than NZ’s youngest convicted killer. Legally this is probably right. But, without wanting to trivialise his part in it, apparently he didn’t actually do the killing, he was just an accessory. But we’ll always know him as a killer.

Because of his age at the time (12), good arguments were made that he couldn’t be held fully responsible for an adult-equivalent conscious decision to assist in the killing. So he was not sent to adult prison but to a youth corrections facility, to keep mixing with other maladjusted boys. All went quiet for a few years until 2008 when he was approaching release time, and then TV showed us images of a mature, good-looking and strapping teenager. How would he react?

New Zealand’s Youngest Convicted Killer (there, I’ve said it again! Let’s save space by calling him NZYCK) was about to be let loose on parole. There must be a story there for the news media, if they could just follow him around and watch for any recidivistic activity.

Sure enough, some breaches of parole conditions. Many parolees must break the rules from time to time, I’m sure, but with a high-profile cases such as NZYCK the media get excited and try filming him on his way to court, and specially after he leaves the building.

I remember how uneasy I felt when I saw his first such appearance on TV news. Cameras in his face, following his steps, trying to get into his space, provoking a reaction. And they got it – he dutifully spat in their direction. Perfect! Everyone watching on telly said what a mongrel, should still be locked up.

After a few episodes of this, including replays of that footage whenever his name was mentioned again in little items (like “NZYCK Bailey Kurariki was today spoken to by probation staff for talking to a female when his conditions forbid it”), a few weeks ago we get a leading NZ daily sending two young female journalists to interview him at his home, to see how he felt about this-that-and-the-other. This could only be interpreted as yet another attempt – and what a soft target he is by now – to provoke some uncivilised behaviour. They got it! So he is now back preparing to face another judge for obscene and abusive behaviour.

I won’t ask “what were they thinking?” because we all know the answer already. They knew what his reaction would be.

So back to my thesis. This young man has, from his early days, been marginalised and now put on the opposite of a pedestal – in a deep pit, demonised as an uncivilised killer and uncouth in front of cameras. We all did it – in the early days by not caring and providing no community support for him and his family, and now by using the media as our proxy to chase him around and poke into his private life to prove that he has no place in society.

I wouldn’t be surprised if Bailey does re-offend seriously and spend more time behind bars. It may well be too late for any change. We spent the past 8 years demonising him as NZYCK, and since his release we as a society have given him absolutely no realistic chance of starting a new life with new supports. We seem to want to have our NZYCK forever, and to encourage the media who provoke him in order that we can say – “There, I told you he’s a mongrel. Lock him away.”


Three strikes policy will do more good than harm

January 20, 2010

The government’s new policy for dealing with the worst of our repeat offenders actually has my guarded support. That’s a surprise to me, anyway, and probably to some of my readers, because I’m also a staunch opponent of the increasingly disheartening “lock ‘em up and throw away the key” mentality.

I support restorative justice policies and programmes as a first option for many offenders. After that, I believe that every criminal should be given at least one chance of rehabilitation while serving their sentence, together with a realistic post-prison opportunity to prove rehab has happened. I believe that well-managed parole programmes provide a good way of achieving the inevitable transition from prison to society. And I believe that long, harsh jail sentences usually satisfy only those seeking vengeance, and in fact rarely act as a deterrent and almost never as a tool for rehabilitation.

But I also believe that there are some people who, usually due to some factors in their neglected upbringing or some serious psychopathology, are beyond rehabilitation by conventional methods. They have performed a pattern of violent crimes against people over a long period of time, despite opportunities to turn their lives around.

Repeat violent offenders may still be capable of rehabilitation, but the chances are so low that I believe a line has to be drawn. These people – a small minority I believe – must simply be kept off the streets for as long as possible, and not only for the sake of public safety. They are probably a danger to themselves as well.

The “three strikes” policy (a catchy rip-off title from baseball-mad America) now has enough support to be passed into New Zealand law. It will see graded punishments for serious offenders over three offences.

Of course, the first offences will be treated as they always have been, with adjudicated sentences and the possibility of parole providing an incentive to rehab. We don’t know at that point that there will or won’t be any repeats after the sentence is served. To me it’s like anyone who I deal with daily: until they do me wrong, I’ll give them unquestioned trust. If they wrong me once, I’ll be much more careful with them in future but will still allow some benefit of the doubt.

A second serious offence will mean a standard sentence but no parole. Yes, some people may need a second reminder of where their decisions and offences are taking them, before they finally get it. In my personal life analogy, if I’m wronged a second time, I would normally put myself in a position of not having to deal with that person again, but I wouldn’t go on a personal vendetta.

Under Three Strikes, a third serious offence will mean the maximum allowable sentence and no parole. In many cases this will mean never getting out (a true life sentence) and as I’ve said, I think this is justifiable more often than not.

So I give considered support for this approach.

I don’t believe three strikes will be a deterrent – in fact it may well encourage a third-time rapist to kill, knowing he will “get life” anyway so why not minimise the evidence that could implicate him.

And I would detest such a law if it was enacted mainly to satisfy the routine calls for vengeance by victims and the Stupid Sentencing Trust.

I will support it if it’s seen mainly as a humane way of keeping society safer when all other alternative forms of action have been tried.




David . . . . please say ‘when’

June 8, 2009

I really hope that David Bain bids a grateful farewell to his lawyer and starts his new life without the millstone of ongoing legal action dragging him back.

My knowledge and assessment of David and of his lawyer, Michael Reed, is limited to what I saw on TV news reports, plus the excellent in-depth analysis in last Saturday’s Christchurch Press by the courtroom-savvy reporter, Martin van Beynan.

From what I have seen and read, I believe that David is a thoughtful and gentle man who understands the cards he has now been dealt and seeks no revenge. He accepts he has lost a chunk of his life, but wants to make the most of the rest of it. I believe that Michael Reed is a clever, arrogant, single-minded and irritating man who through his perseverance deserves to see David a free man, despite the tactics he used to get that result.

Good on him. And good on David too. I wish him well. I may be wrong, but it seems to me that David has every chance of enjoying the rest of his life in fruitful and fulfilling endeavour and pleasure. As long, that is, as he can say goodbye to the NZ Justice system and the lawyers and let good enough be enough. And I’m feeling uneasy.

Talk of suing for inheritance (that has surely after 15 years been spent or invested in real estate) and for compensation from the government (and who knows, perhaps more visits to appeals courts for years to come) saddens me greatly. Those of us who don’t believe that life is a year-in-year-out battle for every last human right and remuneration, would hope that David can accept that nothing is perfect and that now he is free and has potentially many great years ahead.

Keep the optimistic view foremost, David. You were able to learn a new profession while sitting in prison, and you start with a clean financial slate now. With a little emotional and financial help from friends etc you have a good foundation to build on. Better than many at your age – I know several people who have fluffed around through their twenties and thirties and are still in debt and little closer to achieving anything significant in life.

I urge you, David, to say a sincere thank you to Mr Reed, shake his hand warmly . . . . and then tell him firmly that you want no further legal actions and court cases. If Mr Reed is genuinely interested in your welfare and not merely in it for the money or the thrill of battle, then he will endorse your decision.


Visceral reactions and rational responses

May 27, 2009

I may be wrong but …… it seems to me that visceral responses to public events and policies, personally satisfying though they may be, rarely lead to improved outcomes.

The word “visceral” has always fascinated me. The word looks and sounds like the thing it is describing – squishy, raw and emotional. And when I see “visceral” used when reporting a person’s reaction to an event they are involved in, I feel the word as well as read it. It’s a great word.

My dictionary defines “visceral” as “of the viscera; intuitive, emotional, rather than intellectual”, and “viscera” as “the internal organs of the body” (or “guts”). In the Kiwi layman’s vocabulary, a visceral response is a gut reaction.

Reflecting on issues and events I’ve observed over many years, I believe strong visceral reactions more often than not make things worse. They may make the person reacting feel better (in the same way that smashing something may give an angry person a bit of release for a while), but usually they often make things worse – leaving the angry person wondering if they should have reacted even more strongly. Escalation of the problem is a common outcome, or at least a prolonging of the pain.

I’m not talking of gut reactions to private problems, such as grief at the passing of a loved one or anger at having your house burgled. As long as we don’t cause problems for unrelated third parties, we are all free to react in private as best suits our emotional makeup. I do know what it’s like to feel and express those sorts of reactions.

Visceral reactions are natural and human, but they need to be recognised as such and not as ultimate answers to problems. Unfortunately, visceral reactions to emotive public issues, if released into public discourse, can easily affect other people, so the pros and cons of actions and advocacy based on gut reactions should be recognised.

The commonest gut reactions to political and public problems usually involve righteous indignation, puffing out the chest, raising the voice, expressing superiority from the high moral ground, and throwing stones from glass houses. The complainant may or may not feel “better”, someone may get punished, and then often as not the situation worsens. More shouting, more indignation, new tougher measures . . . . and so on.

Here are some examples from recent times in New Zealand.

  • The New Zealand government’s policy on the state of democracy in Fiji is just making the situation worse. Let’s skip past the obvious hypocrisy and double standard of berating Fiji while also scrambling to trade with and please states like China, Thailand and Middle Eastern dictatorships or theocracies. NZ’s mainstream political parties act patronisingly, talking tough and loud from a position of superiority. We get tougher and louder as Fiji’s current political clique continues to go its own way regardless. We huff and puff about Fiji but not other places of questionable governance because it’s the only country we think we can dictate to. Plus, the image of a defiant brown-faced Bainimarama in total control there offends our European culture.The trouble with this approach is that our visceral reaction (“How dare that thug take over!” “Who does this Banana man think he is!” A native dares to tell us how he’ll run his backward country!!) becomes the unspoken foundation for government policy, which then expresses itself as trade and visitation sanctions and expulsion from multilateral forums, and then . . . . there is nowhere else to go (short of an invasion) that doesn’t involve a “backward” step.

    The approach proposed last month by the Maori Party– to visit and talk and learn as human equals – holds much more appeal for me as a long-term rational response. As I heard it on the radio, I thought, why not? Get down off your high horse, visit the country and its leaders, ask what they have in mind and why, look at it from their point of view. Accept that no democracies are perfect and military coups may not be totally and intrinsically evil. If it still makes no sense and seems to be leading to a disastrous end-game, then express that opinion and let it shape foreign policy expressed through diplomatic channels. Be driven by rational policies rather visceral reactions.

  • Crime and punishment is a huge issue in itself, but its relevance to my ramblings cannot be bypassed. It is acknowledged across most of the political spectrum that the more politicians act as mouthpieces for constituents’ visceral responses to crime and punishment and prisons and rehabilitation, the better their chances of gaining or retaining power.But I am not the only person to realise that in most cases this is not rational and does not make anything better in the long run. Those who are gut-wrenchingly angry about crimes that affect them, and those wanting to use these victims and events as tools of their advocacy for tougher responses, may feel better as a result (though I suspect that for many nothing changes their victim mentality and the bitterness lives on forever), but that doesn’t help make society better in the long run.

    A rational response acknowledges the grief and works through it, and eventually sees that the offender will in time pay their dues and return to society, and that taking every available step to rehabilitate them and transition them humanely will make for a safer community in the long term. Punishment for the sake of revenge may make some people feel better in the short term, but will have bad consequences down the line for everyone.

  • The media loves exposing mistakes and deficiencies in the health sector, and people tut-tut or gasp in horror about tales of wrong diagnoses, psychiatric patients wrongly released, etc. Likewise other public service entities such as police. The visceral reaction is to find someone to blame, criticise the professionals who made the mistakes, expect perfection, and demand accountability and the rolling of heads.How sensible is that? How will it improve an already very difficult health landscape? Well, it may help the grumps feel better for a while. Or not.
  • We’ve seen it many times over now. After the media get over their lather and go on to the next crisis, and after the armchair critics move on to the next person whose level of perfection falls short of unrealistic standards, usually two things happen: (1) more public money and time is committed to risk-aversion policies and measures which make it harder for health professionals to do their jobs; (2) some of the picked-over professionals decide it’s not worth the effort in the face of such antagonism, and resign or move on, leaving colleagues even more stretched and likely to make errors.Viscerally satisfying, maybe, for some, for a while; otherwise stupid.
  • I won’t enter the argument about “boy racer” legislation, but again note that in my view, irritating and threatening though these bogans may be, beating our chests and shouting “crush their cars” is only a visceral reaction with little benefit apart from allowing us to feel like we’re doing something. The effects of the proposed new laws will be minimal at best, and could raise the stakes to make things worse.A lack of understanding of what it is to be a teenager, and fading memory of what we baby boomers were like when we were that age, means that our visceral responses have almost no effect on the bulk of these youngsters, and a rational mind realises that engagement rather than shouting is more likely to have some longer-term benefit.

As I ponder events unfolding week by week here in NZ, increasingly I’m impressed by the approach taken by the Maori Party on so many issues – talk, think, talk some more, then use common sense. I hope that my attitude will increasingly be guided by this approach.


Follow

Get every new post delivered to your Inbox.

Join 25 other followers