Roundtable boss says NZ reforms unfinished

WELLINGTON - New Zealand should push on with free market reforms despite 15 years of Rogernomics failing to deliver the economic benefits promised, says the new head of the Business Roundtable.

Ralph Norris, managing director of ASB bank, who takes over as the big business lobby group chairman from former Brierley chairman Bob Matthew, said New Zealand was still spending too much on social welfare and State-owned business needed to be sold.

Mr Norris rejected suggestions the Roundtable had become outdated by a swing away from radical reform to a more pragmatic approach.

"Good ideas and good policy should never be regarded as old-fashioned. The arguments against the Roundtable are arguments for mediocrity," he said.

He was not concerned that ASB customers who disliked the Roundtable's views might close accounts because of his appointment.

"It would be a sad world if people couldn't debate issues on a sane and sensible basis, rather than taking a view you don't like someone because of a view they hold. That is immature."

During 15 years of free market reforms, economic growth had averaged 1.9 per cent, compared with 3.5 per cent in Australia which had also reformed but not as radically as New Zealand.

But Mr Norris said reforms should continue.

Mr Norris declined comment on speculation he is a contender to replace Roderick Deane as chief executive of Telecom. - NZPA