Rotorua Daily Post

Labour fiddles as growth burns

- Richard Prebble

Labourwont­he election butwe elected a conservati­ve government. Gonefrom the government­programme announced inthe speech from the throne is anypromise of “transforma­tional change”. Insteadwe have the false promise of every Tory, “stability and certainty”.

Thegovernm­ent’sprioritie­s are “affordable housing andhomeles­sness, child poverty, and the global climate crisis”.

“The Labour Government­will have three overarchin­g objectives: To keep Newzealand­ers safe fromcovid-19: To accelerate our economic recovery: To lay the foundation­s for a better future.”

Judith Collins could have written mostof thespeech. Housing is National’spriority too.

Bill English had amore ambitious programmet­o tackle the causes of poverty.

Thezerocar­bon Actwasbipa­rtisan legislatio­n.

Newzealand’s response to Covid has been bipartisan.

Every government pledges to “accelerate our recovery” and to “lay the foundation­s for a better future”.

It is a plan to fiddlewith government programmes, not to reform them.

In the next three years Labour has setno targets. Labour has only set targets for somefuture government: “2025”, “2030” and “the next 10 years”.

Progress is to be measured not by results but byhowmucht­axpayer moneyis spent addressing anissue.

Consensus is not initself a bad thing. Weonly have to look at America to seehowdang­erous it iswhenther­e is noconsensu­s to accept the result of the ballot box. Whereconse­nsus is dangerous iswhenit is tomutually agree to ignoreprob­lems.

Not one party mentioned in Parliament’s first debate the IMF report that predicts, onpresent economic settings, New Zealanders’ incomes by 2025 will be lower than today. Five years of no incomegrow­th. Being poorer willmeanit is harder to afford hospitals, education and other government services. Having lower incomeswil­l notmakeit easier to achieve any of the Government’s goals.

Weknowthe reasons wewill be poorer. Government spending is out of control. Newzealand is Covid-free butnoweste­rn country has increased government spending faster than Newzealand. Rapidly increasing government debt and our dreadful productivi­tymeanswew­ill bepoorer.

Labour’spreviousc­ommitment to balancing the books has gone and been replaced with ameaningle­ss assurance that “all government spending decisions aremadewit­h particular considerat­ion for the sustainabi­lity of thecrown’s long-term fiscal position”.

Labour appears to havenoplan to ever return to the necessity of funding current spending out of current income.

Improvingp­roductivit­y should have been top of the Government’s priorities. Withoutpro­ductive growth wecannot afford a first-world health system. The reasonnewz­ealand lockeddown­for five weekswas because our hospitals could not cope with even amild Covid outbreak.

Thanks torodney Hidewehave a world-class Productivi­ty Commission. Weknowthe reasons for ourpoor

productivi­ty growth. It is the combinatio­n ofmany things. David Seymourin his good speech to Parliament’s first debate is correct that poor government regulation­s are destroying productivi­ty growth.

Thecommiss­ion has been very critical of our education outcomes. Despite massive increases in education spendingne­wzealand keeps slipping downthe internatio­nal education test scores. Newzealand pupilsnowl­eave school the worst readers inthe Englishspe­aking world.

Toimprove productivi­tyweneed transforma­tional change.

Stealing National’s claim to be good managers helped win the election but Labourdoes not have theministe­rial ability to deliver managerial­ism. Manyminist­ers cannot follow the Cabinet Manual.

In Labour’s first term ministersc­lare Curran, Meka Whaitiri, David Clark, Iain Lees-galloway and Phil Twyford— stripped of his Civil Aviation Authority role for using a cellphone ona plane— had to resign.

Thenewcabi­net ministerss­eemevenmor­e accident prone. Lastweek Peeni Henare, thenew Minister of Defence, gave a false statement to the media.

His statement indicatedh­e wants todo awaywith anonpoliti­cal civil service and “tomove forward” ministers should sack department­al heads.

Henare told the media that ahead of adepartmen­t “may be vacating in a couple of hours” because “if wewant tomoveforw­ard, weneed to look at the people running these organisati­ons”.

Theministe­r responsibl­e fororanga Tamariki, Kelvin Davis, and chief executiveg­rainne Moss issuedpres­s statements denying shewasresi­gning. Bynot rebuking Henare theprime Minister lets stand the concern that Labour intends to politicise civil service appointmen­ts. Thenwewill have chaos.

Labour has not got the talent to run ona record of management. Better to campaign on a record of getting spending under control and having achieved transforma­tional productivi­ty growth.

Whatis the point of the Labour Party if it is not a party of reform?

 ?? Photos / Getty Images, Mark Mitchell ?? The Labour Party Jacinda Ardern led to a second term of government has so far failed to set any targets for itself.
Photos / Getty Images, Mark Mitchell The Labour Party Jacinda Ardern led to a second term of government has so far failed to set any targets for itself.

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