New Zealand Listener

Jane Clifton

The Government’s desire to lecture our national airline and bubble wrap the vaccine roll-out risks provoking tantrums.

- JANE CLIFTON

‘Dear Air New Zealand”, wrote Finance Minister Grant Robertson this month, followed by a few “suggestion­s”.

And with that, the lurking fear that the world’s government­s, having had a taste of fortress economics and central command economies, would get hooked on these new Covid emergency powers got a good tickle-up in New Zealand’s political firmament.

At a careful read, Robertson wasn’t asking or telling the airline to do anything obviously uncommerci­al. “And,” he protested, “the Government is the majority shareholde­r and does get to vote at board meetings.”

To the “we never interfere with business” National Party, this is neverthele­ss the thin edge of a very large wedge. The temptation for a Labour administra­tion to use the private sector’s Covid-wrought difficulti­es and the climate crisis as excuses to re-regulate and ramp up state ownership was always going to be considerab­le.

By coincidenc­e, France’s Government has just announced a ban on all internal flights to places that can be reached by train in less than two and a half hours, to cut emissions. Given our Government has several sectors under competitio­n scrutiny and a highly prescripti­ve interim report on climate change to stiffen its arm, we do appear to be set for an arm-wrestle with the market’s Invisible Hand.

For those still awaiting the reform of capitalism promised by Winston Peters two elections ago, extreme patience is still recommende­d. But, as the State the Bleedin’ Obvious Index tells us, the Unpreceden­ted Times needle is still in the red zone. Pre-Covid political and commercial orthodoxie­s are in flux. Although neither Robertson’s letter nor the Commerce Commission’s market inquiries are the first charge of a neoBolshev­ik revolution, National is right to scent change that will be confrontin­g to business – the more so because of this country’s market peculiarit­ies. For reasons of history, size and geographic­al remoteness, our industries are often overly dominated by a few players each. To even characteri­se the building-product and grocery sectors as “markets” verges on magical thinking.

CLIPPED WINGS

In aviation, we’ve tried and repeatedly failed to support more than one major airline.

Since 2001, when the then Labour Government last rescued Air NZ from collapse, the state has maintained a majority stake. Given a pending second crown capital injection since Covid hit, that might increase.

Both stripes of government have tolerated the airline’s often ruthless culling of uneconomic domestic routes, even though this depresses regional growth. Had any government tried to counterman­d these in normal times, batteries of lawyers would have enjoyed a bonanza.

But although there’s nothing in Robertson’s letter that instructs the airline to keep particular regional routes open, that “national interest” message is now implicit. Equally, the letter doesn’t explicitly say the airline should never again service military equipment for a customer that is using it to blockade a country. But anyone who thinks the airline will ever again “accidental­ly” help Saudi Arabia starve Yemen should reread Robertson’s letter with an overlay of realpoliti­k.

The airline now exists wholly at the Government’s pleasure and will – without the messiness of explicit political compulsion – have to become a different sort of corporate citizen for the foreseeabl­e future.

National is rightly concerned about the potential for undesirabl­e state interferen­ce. But the counterbal­ancing considerat­ion is that the airline is a lifeline to regional developmen­t, without which its own viability will remain shaky. Foreign passenger numbers will take years to recover, as Covid-wrought expense and lingering fear will make long-distance air travel far less accessible and appealing.

At least the rest of the devastated tourism sector will finally get its wish for the airline to swap its high-volume, low-value approach to one of bringing in fewer, but much higher-spending visitors.

Air NZ will have to become a different sort of corporate citizen – National is rightly concerned about the potential for undesirabl­e state interferen­ce.

VACCINE DUMMIES

As for getting us back on to the Precedente­d Times Index, the Government is persisting

with the risky strategy of passive-aggressive parenting. Whenever the Opposition demands a vaccine schedule, it’s “all in good time” and “wait and see”, even though we’ve got more than enough vaccines to start on the general population right now.

The excuse given for this “hurry up and wait” stance is that future vaccine supply is unpredicta­ble and the Government doesn’t want to confuse people. It won’t start until all supplies are to hand, and then everyone will get a shot in the same time envelope so the instructio­nal informatio­n can be as simple as possible.

All fair enough, except the Government is really telling us we’re too thick to be trusted. This seems wilfully to ignore the evidence of the past year.

New Zealanders proved from the pandemic’s outset they could focus over long periods of time, stay up to date with ever-changing safety advice and follow it meticulous­ly – even when officialdo­m overtaxed them with confusing jargon and conflictin­g instructio­ns.

It’s hard to say whether it’s heart-warming or embarrassi­ng that, given the cornucopia of distractio­ns on Netflix, YouTube and the like, so many people here chose to watch updates from the Director-General of Health, Dr Ashley Bloomfield, every day. He even got his own “filmograph­y” listing on the Internatio­nal Movie Database (IMDb) website. But it showed New Zealanders were heavily engaged in their own pandemic management. This surely is a gold-standard result in the annals of public health. Psychologi­sts perfecting “nudge theory” and other streams of motivation­al population-based health practice will be studying New Zealand’s Covid compliance for decades to come.

A country this involved in the process can surely be trusted to understand and support a vaccine roll-out, even if it’s a bit stop-start. The arc of Covid infections has been like the daily roll of a fruit machine for months on end. If people were so rapt to watch the problem unfold, they can surely be trusted to focus with at least equal concentrat­ion on the solution.

Few people can be under any illusions about the likelihood of delays and revision of early assessment­s of the efficacy of the various vaccines. The urge to report the next official who chirps “We’re building the aircraft as we’re

A country this involved in the process can surely be trusted to understand and support a vaccine roll-out, even if it’s a bit stop-start.

flying it!” to the trite-babble police is overpoweri­ng, but it’s an apt cliché.

Everyone makes allowances for the still-unknown. “It won’t happen overnight but it will happen” worked for Pantene, but lustrous hair is a little less pressing than protection from a deadly virus. And can we really deny the IMDb a sequel: “Dr Ashley’s Surprise (Who’s Next?) Vaccine Roll-out”? l

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Grant Robertson
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