Weekend Herald

Debate? That was more like a shouting match

What should have been a contest of ideas instead degenerate­d into an exercise in interrupti­on

- Bruce Cotterill comment ● Bruce Cotterill is a company director and adviser to business leaders. He is the author of the book, The Best Leaders Don’t Shout, and host of the Herald’s new podcast, Leaders Getting Coffee. www. brucecotte­rill.com

The good thing about being away from the country, aside from escaping Auckland’s weather, is that you come back with a clearer perspectiv­e and an eagerness to get back up to date with what’s been happening.

I’ve been overseas for a couple of weeks, so arriving home just in time for Wednesday’s debate on TV3 was a timely opportunit­y to catch up with what the two leading prime ministeria­l candidates were saying.

And what a disappoint­ment it was.

For anyone who treated the debate as light entertainm­ent, they probably got what they wanted. However, if you were looking for a proper debate to inform your decision to vote, you were wasting your time.

The invitation to listen to a debate should conjure up expectatio­ns of a discussion between two sides, usually with opposing views, where each has an opportunit­y to present and defend their ideas, while also responding to the other party’s opinions.

But the Prime Minister was having none of that. His mission for the evening was to interject and interrupt. He did so loudly and at times disrespect­fully.

And, it seemed, the more combative the better. No need for policy to be presented. Just attack the individual on the other side of the podium.

Even the carefully selected panel of left-leaning observers said Christophe­r Luxon looked more prime ministeria­l. That was an understate­ment. To the outside observer, the so-called debate would have appeared more like a prime minister-in-waiting attempting to speak while being abused by a student protester.

Chris Hipkins forgot to bring a couple of things to the debate. He didn’t bring any intention or ability to discuss policy, nor to defend his record. And inexplicab­ly, he forgot his megaphone.

As usual, there was plenty of titfor-tat around policy that has already been announced. Crime, health, education and the economy all had a share of the timeslot. The current Government’s softly-softly approach to dealing with gangs was there too.

But, in a country ravaged by a wide range of complete failures over the past six years, there was nothing substantiv­e. When your business, or for that matter your economy, is having a tough time, there are usually two places to look: increasing revenue and decreasing costs.

In attacking the National Party position on reducing the cost of running government, the Prime Minister wanted us to know that doing so would result in job losses in the public service. And so it should. As part of his Government’s wild spending spree over the past six years, we have employed more than 14,000 additional public servants. Even at a conservati­ve average salary of $80,000 per year — and I suspect it’s more — that’s an additional cost to the taxpayer of $1.12 billion per year. Every year.

And in doing so, we have seen most indicators of the performanc­e of those government department­s deteriorat­e. Crime is up. Hospital waiting lists are longer. Educationa­l attendance and outcomes are down. Economic performanc­e places our once “rockstar economy” at the bottom end of OECD and IMF analyses alike. The cost of living is up too.

And despite what they might tell you, our inflation problem is not imported, it is a function of excessive government spending and a dollar made weaker by government policy.

Big organisati­ons are typically hopelessly inefficien­t. They usually lack accountabi­lity and comprise hordes of people who are internally focused — doing business with each other — rather than outward looking. They require exceptiona­lly strong leadership, clear direction and discipline­d behaviour to be productive — traits that don’t come naturally to the public service.

Government department­s are the worst example of big, clumsy organisati­ons. Making those ministries bigger, without a clear reason why, is a recipe for productivi­ty decline and performanc­e failure. And that’s what we’ve seen in the past few years.

Most rational people will agree that we don’t need all those people in

As much as the greenies would hate it, rebuilding our ability to generate oil, gas and coal revenue is a potential game-changer for our economy in the long term.

government sector roles. But that doesn’t mean those people are useless or that they should be thrown on the scrapheap.

Instead of an argument about whether or not National’s policies imply public-sector job losses, how about a discussion on what those government employees could be doing instead?

Across the country, we are desperatel­y short of people. We need teachers, nurses, truck drivers and builders. We need hospitalit­y workers and more people in retail. Despite almost 200,000 people on the Jobseeker benefit, I know of companies with 40 or 50 vacancies.

It’s one thing to say we have too many people working in the wrong places. That’s an easy stone to throw. But what about looking at ways in which we can retrain those people who are up for a change?

Instead of cutting them loose, how about we keep paying them for a year or more while they learn new skills that then enable them to become part of a more productive sector within our needy economy?

As a result, instead of paying these people to sit unproducti­vely in an underperfo­rming bureaucrac­y, where their careers will go nowhere, we can try to create a productive existence for them, and in turn solve some of our skilled worker shortages. Of course, they won’t all take up the opportunit­y, but if it’s the difference between having a job and not having one, surely it’s a better option all round.

On the revenue front, we’re not hearing anything from the political combatants about how we grow our economy. All these years later, we remain heavily reliant on a couple of narrow income streams for our worldly income.

Agricultur­e is our bread and butter, but soft market prices make that particular­ly difficult at present. Agricultur­e is also heavily influenced by the weather, and we know how challengin­g that has made farmers’ lives over recent years.

And then there is our tourism industry. Once so strong, we were slow to reopen ourselves to the world post-Covid, and as a result we missed an additional season and the recovery is taking longer. The increasing cost of travel does no favours to a distant land, and once here, tourists find we’re an expensive place to visit.

So we need to find additional and reliable sources of revenue.

In 2018, the newly-installed Labour-NZ First Government banned future offshore oil and gas exploratio­n, essentiall­y doing so without notice. While I’m sure the greenies love the ban, we have to be realistic. Our financial position is dire, and getting worse with every week of borrowing and spending.

We are fortunate to have access to mineral resources in this country. In addition to oil and gas, we have some of the world’s highest-quality coal deposits, yet we would rather import an inferior product than use our own.

As they love to tell us, our Australian neighbours have managed to avoid recession over the past 30 years. One of the reasons for their resilience is that they continue to export to a world craving what they dig out of the ground. Australia’s biggest export products by value in 2022 were iron ore, coal and petroleum gases.

Recently released research tells us that Guyana, a small country in the northern part of South America with just 800,000 people, is the world’s fastest-growing economy in 2023. Their projected growth rate is 38 per cent for the year, according to recent GDP forecasts by the Internatio­nal Monetary Fund. Their secret? Oil production and export.

On the surface, it would appear that we have the natural resource base to play that game too. As much as the greenies would hate it, rebuilding our ability to generate oil, gas and coal revenue is a potential gamechange­r for our economy in the long term.

But re-establishi­ng ourselves is not without its challenges. The reality is that we will have to work very hard to attract the oil and gas industry back. Some players lost a lot of money when the surprise ban was sprung.

And assuming there is a change of government, and as a result our trade representa­tives go back out into the world’s mineral markets and declare New Zealand is once again open for business, we will no longer be able to claim one of our original strengths.

One of the legacies of this Government is that a stable regulatory and political environmen­t no longer exists in this country.

The apparent reality is that the extreme political left wing in New Zealand would rather see this country fail than have us breach some of their idealist thinking about oil, gas and coal, the very markets that could help to rescue our financial position.

It’s funny, isn’t it? The current Government, and many in the media, make much of questionin­g how National and Act can fund their policies and aspiration­s for the country. And yet, no one seems keen to question the current approach, whereby we continue with outrageous levels of spending, all the while borrowing more money every week to pay the bills.

There is no question that we need big ideas and major initiative­s to grow our revenue and cut our costs. A failure to do so will leave this once great little country both financiall­y and morally bankrupt.

 ?? Photo / Greg Bowker ?? For viewers wanting some light entertainm­ent, Wednesday’s debate delivered. For voters seeking enlightenm­ent, not so much.
Photo / Greg Bowker For viewers wanting some light entertainm­ent, Wednesday’s debate delivered. For voters seeking enlightenm­ent, not so much.
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