By JOHN ARMSTRONG
Act's annual conference has been told that New Zealand risks becoming "a slum with scenery" unless the country sets some firm economic growth targets.
Former Telecom chairman Peter Shirtcliffe told delegates that without agreed goals the country had no context for measuring how well it was doing.
"Instead the national mood swings back and forth in response to ephemeral events. We saw that last year with wildly fluctuating business and consumer confidence."
New Zealand had set strict goals for its inflation rate and had done likewise in cutting the road toll. Similar commitment had to be applied to a long-term measurable economic goal - such as 5 per cent annual growth - otherwise New Zealand would continue to slide down economic performance rankings.
"Economic growth needs to become an explicit part of the national contract," Mr Shirtcliffe said in his guest address, opening the conference in Christchurch.
"Imagine if our Prime Minister and Treasurer had to front up and be accountable for achieving or missing an explicit standard of living goal.
"You can be sure that every policy decision would be judged on its actual impact on the economy, rather than for short-term political advantage."
However, he described Act's goal of lifting New Zealand from 21st to 10th in Organisation of Economic Cooperation and Development rankings on a per head income basis by 2010 as "unrealistic."
Such a target had been set when he had chaired the Trade Development Board in 1990. However, the subsequent decade had been one of "inertia" and 2020 might be a better timetable for making the top 10.
Firm economic targets 'vital'
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