Not our ministers but the United Kingdom’s Labour PM, Sir Keir Starmer, and the Chancellor of the Exchequer, Rachel Reeves. Downing Street and the Beehive could be sharing speech writers.
Last year, the UK increased taxes. New Zealand cut taxes. This year both Governments realise adjusting taxes is not enough.
A Labour Government in Britain and a National Government in New Zealand have adopted similar policies. Both attribute poor productivity to planning laws and regulations that make it too easy to say no. They both want to make it easier to build infrastructure and housing, to attract overseas investment and to say yes to development. Both Governments’ number one priority is growth.
The policy details are similar. Green lighting infrastructure projects of “national significance”. Restarted free trade talks with India. Both finance ministers are concerned by the number of working-age adults on a benefit.
British economists have largely given the prescription a favourable reception. Our economists are more pessimistic.
In both countries the size and cost of the public service is a major problem. The health systems in both countries are failing. The reforms will take longer than a parliamentary term.
When a UK Labour Government and a New Zealand National Government agree then the policies are moderate and mainstream.
Last week the Economist magazine commented that “around the world, an anti-red-tape revolution is taking hold. Done right, deregulation could kick-start economic growth”.
The policies illustrate how extreme the New Zealand Labour Party has become. Labour rejects both the analysis and the solution.
Labour has swallowed its own propaganda that the remedy to the country’s ills is a tax on wealth.
Labour’s finance spokesperson rejects that the Labour Government had any responsibility for the state of the economy. A view not shared by any credible economist.
Labour was not expected by anyone, including Labour, to win the 2017 election. Instead of policy, Labour had slogans such as KiwiBuild. The pandemic played to Labour’s strength, closing things down, and inspiring slogans, “team of five million”.
The pandemic’s passing exposed that Labour had no programme to tackle the country’s century of relative decline.
Last week, the Reserve Bank’s chief economist warned the economic policy of mass immigration and rising house prices had run its course.
Major speeches by ministers are important. They set out what the Government is doing and why.
Major speeches by the Opposition are just as important. There are none. Search in vain on Labour’s website for any substantive policy.
Labour’s strategy appears to be to say no and rely on the electoral pendulum.
One of the reasons parliamentary democracy, with all its faults, is the best political system humans have tried, is because there is an official opposition offering an alternative.
Just saying no is not an alternative. Labour says it spent last year listening. The Greens have been preoccupied by internal issues. Te Pāti Māori does not pretend to represent all New Zealanders.
Labour’s focus is winning back voters from the Greens and Te Pāti Māori. Adopting policies of redistribution will make Labour extreme and irrelevant.
The coalition has identified the issue, the need for growth, and has outlined a solution.
Where is Labour’s analysis? What are Labour’s positive, practical, workable solutions?
I was the caucus representative on the campaign committee for one of Labour’s biggest election victories. Saying yes is as important as saying no.
National’s then-trade minister, Hugh Templeton, promoted a radical new policy, a free trade agreement with Australia. Muldoon was known to be lukewarm. It would have been easy for Labour to say no. Instead, we said yes. While in opposition, MP Mike Moore championed closer economic relations with Australia, CER.
CER was a success. The National Government having success was far from damaging for Labour. It gave the party what all political parties need, economic credibility.
Labour leader Chris Hipkins should acknowledge that the planning laws are not fit for purpose, that there are too many regulations and Prime Minister Christopher Luxon is correct. Instead, there is a culture of saying no.
If Labour were to pledge a bipartisan, successive Government commitment, to lift productivity and growth, then Labour would take a significant step towards being electable.
