Sunday Star-Times

‘New Zealand’s managed isolation system could turn into a staging post for Australia, and its economic recovery’

- Editor Tracy Watkins

Whenever we read headlines from overseas – such as Britons being allowed to hug again, or Joe Biden’s ‘‘great day for America’’ pronouncem­ent that fully vaccinated Americans can ditch their masks – we are reminded just how much the world has changed. And just how privileged we are to have been largely untouched by the hell that continues to consume countries such as India.

The flood of returning expats – at least those lucky enough to get a slot in managed isolation – has reinforced how lucky we are. But how many of them are wondering if there’s anything for them here? How many have realised that while New Zealand might be a great place to hunker down during a pandemic, the reasons they left haven’t gone away?

Reasons such as one of the most unaffordab­le housing markets in the world. Or low wages, low productivi­ty, crumbling infrastruc­ture, decades of short-term political thinking and the prevailing ‘‘she’ll be right’’ attitude to our poor record on a range of fronts – environmen­tal management, child poverty, family violence, and a shamefully high suicide rate. And what do they think about their friends and neighbours back in the UK, or America, or elsewhere, getting their vaccinatio­n – while back here, we wait.

Will they avoid voicing their concerns for fear of the great Kiwi clobbering machine, which doesn’t seem to take kindly to any suggestion we’re not the best place to be on earth right now? I hope not, because complacenc­y is our biggest enemy. As the rest of the world comes out of Covid, we will need more than being Covid-free to thrive.

Finance Minister Grant Robertson has done a good job of lowering expectatio­ns ahead of this week’s budget; whether it’s a classic case of underpromi­sing and over-delivering remains to be seen but so far there are few signs that he is planning a radical budget to match these extraordin­ary times.

Prediction­s about the post-Covid recovery have so far been wrong as much as they’ve been right, of course. Remember those warnings about house prices dropping 10 per cent after the lockdown?

But with our borders still closed for some time yet, the risks that sparked the gloomy warnings haven’t gone away. Skills and labour shortages, previously papered over by immigratio­n, are a huge economic handbrake. Globally, inflation is rearing its head again, a new word for younger generation­s, and global supply issues continue to impact Kiwi businesses. Then there’s runaway house prices, the loss of tourism, and low wages, to name a few.

Meanwhile, there are thousands of talented young Kiwis who’ve had their hopes and dreams smashed by Covid, and chafing to get out into a new world. Throw into this mix a familiar enemy, the brain drain to Australia, and the task of keeping Kiwis here looks even harder than usual.

Australia has its problems too, and its vaccine rollout has been on a par with us. But the weather and wages are better and housing is cheaper nearly everywhere except Sydney.

New Zealand’s managed isolation system could turn into a staging post for Australia, and its economic recovery.

A budget that shows the government has some bold plans for New Zealand in the post-Covid world might not fix all those problems but it might help head off a winter of discontent.

New Zealand’s managed isolation system could turn into a staging post for Australia, and its economic recovery.

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