Growth strategy is viable, says Gattung

Telecom chief executive Theresa Gattung's contention that the Government has a viable growth strategy to sustain business success puts her at odds with the majority of New Zealand's top chief executives.

The Herald survey - once again - found widespread business scepticism in the Government's growth policy framework, with an overwhelming majority saying a glut of "anti-business" policies impact on business success.

Gattung concedes that some regulations being dumped on the business sector conflict with the Government's growth strategy.

"I would say that is not consistent with the overall direction," she said, stressing hers was a personal view. "They will think this is all internally consistent because they've got a number of drivers that they are working with.

"But as you sit in business you would say, 'Well some bits of this actually are headed in the right direction and some bits of it don't feel consistent, at least from where people like me sit'."

A member of the Government's Growth and Innovation Advisory Board, she has attended a number of ministerial briefings.

Her key issue - "which is not talked about much" - is the need for a cultural shift if New Zealand is to achieve high growth ambitions.

"We've now got a generation of New Zealanders who don't really identify with that paradigm," said Gattung.

"They don't necessarily associate an overall macroeconomic target, whether that be getting as good as Australia or top of the OECD, with anything that is going to benefit them.

"The culture of New Zealand is still pretty negative about business in general and big business in particular."

One issue the Government was "genuinely grappling with" was how to make growth objectives meaningful.

"People understand the downsides of it (such as traffic problems) but ... don't bank [on] the upsides."


Other chief executives suggested the Government would get greater business buy-in to its growth strategy objectives if it adopted a more pro-business model. Among other questions were: Why is there so little investment in any major wealth-creating industry? Why are we funding future superannuation when there is such a shortfall in infrastructure investment?

Others said detailed policies and plans were needed to achieve results that boosted business success (and national incomes).