The 2025 Taskforce chaired by Don Brash has made 35 recommendations to help close the income gap between here and Australia.
Most of them require some tough decisions from government and some belt tightening from the rest of us.
Finance Minister Bill English said:
“Having steered the economy through the recession in better shape than many had predicted, the Government is now focused on getting a step change in New Zealand’s economic performance over the next three to five years.
“We must consider a range of options if we are to get the investment, economic growth and new jobs needed for that to happen.
“Having said that, this Government is pragmatic. And any decisions about key economic policies must meet the tests of fairness and equity.
“Where we specifically campaigned on doing certain things, we’re not going to break our word.”
The government isn’t going to break any election promises but not everything in the report was covered by a promise.
There is also plenty of scope for fresh promises in National’s 2011 election campaign.
The sale of state assets, for example. The previous government sold some Landcorp farms and there is nothing wrong with continuing with that in the future.
The government isn’t going to do anything which will threaten economic recovery in the short term. But it has sent very strong signals about the lack of money available for new spending which will make next year’s budget pretty stringent.
That might help focus the rest of us on how much we expect from public funding and how much we should be doing for ourselves and that any funding of luxuries now will be at the expense of some necessities later.
The resilience of the economy in the face of global economic uncertainty was due in no small part to the tough decisions the governments of the 80s and early 90s made.
If the economy is going to continue growing and be strong enough to cope with the next recession, we’re all going to have to accept the need for some tough decisions from government and the sooner it makes them the sooner we’ll feel the benefit.
Hat Tip: interest.co.nz
The full list of recommendations follows the break.
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