The people who ru(i)n our country

Michael Cullen has refused to say he has confidence in the Serious Fraud Office (SFO), after its head, Grant Liddell, was before the Privileges Committee today.

As you know, the SFO is investigating the country's Foreign Affairs Minister for fraud. Winston Peters is still the Foreign Affairs Minister but has had his portfolios stripped pending the investigation. The problem is that Michael Cullen is also the Attorney General, - chief law officer and primary legal advisor of the New Zealand government - despite having no legal qualifications whatsoever. Liddell reports to the Attorney General.

He did so again today.

Liddell addressed his boss, the Attorney General with no legal training - but only because said boss is not only the country's Deputy Prime Minister, he is a member of the said Privileges Committee that is discussing possible fraudulent behaviour of a former Deputy Prime Minister and Treasurer who does have law degree and is now the Foreign Affairs Minister. The investigation is over a donation the Foreign Affairs Minster received in his role as a political party leader in 2005 but failed to declare it as required by law. The person who had donated the money had earlier funded the Attorney General's political party to the extent that it won the last election and became the Government - which is why the said Attorney General is still the Deputy Prime Minister.

But after Grant Liddell has addressed the Privileges Committee, his own boss, the Attorney General, refused to say whether he had confidence in the Serious Fraud Office, while earlier refusing to advise his own boss that the fraudulent Foreign Affairs Minister should be sacked.

This boss so happens to be the Prime Minister who is also the boss of the said Foreign Minister. But she has not only got the fraudulent Foreign Affairs Minister's portfolios, she is trying to get his party supporters to vote for her party at the next election because that Foreign Affairs Minister's donor won't give her party any more money, and musician Chris Knox won't sing "It's a bitter way with Labour, way bitter" any more.

But that hasn't worked very well as a political poll just out had the said Foreign Minister's political party doubling in support, and Labour falling.

So there you have it.

Clark will "let the process continue"

Helen Clark says she will hold off firing Winston Peters until the Serious Fraud Office and the police has completed their investigations into the Winston Peter's saga.

Because Michael Cullen told her to.

Which is precisely what I have been saying all month and on Monday said

Despite whatever the privileges committee says, Peters will still keep his ministerial warrants because the SFO and police will not have completed their investigations before the election. Due process extends as far as the Prime Minster wants it to, which is why she's happy to use the SFO and police as political pawns to extend that process. Nothing is a firing offence in this government unless it is politically expedient to do so.

The reason Cullen advised the Prime Minister so was because he wants people to think that Helen Clark still can't make up her mind which version of events is true.

Peter Dunne, who is on the committee, appeared annoyed that Henry cannot recall much. He put the proposition to Henry that he was not recalling things because to do so would create further embarrassment for Peters. Of course Cullen won't be asking to have the truth clarified.

The PM is deciding nothing. It is Cullen that is making the decisions and the PM is merely agreeing with him. Clark won't make any decision before the SFO report comes out.

updateThat decision not to make a decision is the only decision Clark has made in this saga since she suspended Peters.

Michael Cullen exposed as a real dick after "toll tax"

All week Cullen has been attacking Key, saying he is unfit to be Prime Minister based on his employment at Merryl Lynch more than six years ago. He said Key had a short-term profit maximising mentality that brought Merrill Lynch to its knees.

"Do you want someone like that running the economy when we are going to be going through a difficult period. Mr Key has put forward his Merrill Lynch credentials as part an important part of his narrative. That doesn't look such a good qualification any longer for running New Zealand's economy.

That's a bit like saying Helen Clark is responsible for Labour's heavy loss in the 1990 election and is therefore unfit to be Prime Minister.

But the very same day we found out that Cullen got screwed $570 million for his train set.

What a dick! So much for financial management.

In late 2006 officials valued the New Zealand’s rail system at $120 million. That's $570 million less than the government paid for the business in July this year. In December ONTRACK made an offer of $350m - but this was bumped up to $690m.

And you paid for it.

To put it into perspective, $570 million equals the amount paid in the two biggest treaty settlements - the Treelords and Sealords deals. And $570 million is three and a half times more than Cullen budgeted in the last budget to boost elective surgery and reduce waiting lists.

It is $70 million more than the amount spent in the growth of the core bureaucracy over the past three years ; it equals the total amount the Crown put into KiwiSaver to date. It is the the amount Transit invested in developing and improving state highways last year. It's $70 million more than income splitting for tax purposes would cost each year, and it's equal to the Crown’s Kyoto liability over a five-year period (assuming a price of $15 per tonne). And it is more than the Government paid to bail out Air New Zealand in 2001.

Cullen said yesterday that the Government paid a reasonable and fair price for his train set.

I bet Toll thought so. I bet those missing out on elective surgery didn't. Neither would those who have to take their kids from their 20 hours "paid for" childcare and to take them to the doctor only to find out that doctors visits aren't as free as the Government makes out.

All Treasury documents were posted here today .