Dialogue: Labour has delivered and it will continue to do so

By HELEN CLARKE

The Herald's editorial proclamation that "now is the time to generate optimism" is welcome.

It comes after several months of news about New Zealand in general being somewhat negative. But, as your editorial suggests, there are many reasons the Government should be praised for its performance.

Where there is room for improvement, we are big enough to take constructive criticism on board. Being in Government is a privilege, not a right, and we are very conscious of that.

Let's cast our minds back to the run-up to the last election, what Labour campaigned on and where it stands today.

We called for a correction in public policy so that human values came to the fore again. We said New Zealand was like a car driving down a no-exit road. That car had to be backed out of the cul-de-sac and a fresh direction had to be taken.

We said that New Zealanders were close to losing all faith in their politicians. That led us to make few promises, but to promise to keep them. And we promised a more open, direct and accountable style of Government.

On every count we have delivered. We have done what we said we would. The criticism from those who didn't vote for us has been loud. But we have kept our word and restored faith in the democratic process.

We have also made significant investments in people in line with our pledge card. Superannuation levels have been restored, income-related rents for low-income state tenants return on December 1, and big investments have been made in education across the board and in reducing hospital waiting times. We promised an attack on burglary rates and are pleased to see them coming down.

In addition, we've invested in new apprenticeship training, and significantly increased public spending on support for business growth, the arts, the environment and defence.

So where from here? I agree with the Herald that New Zealanders need to see and hear about the overall vision and direction of the Government. That is not always easy to communicate against the clatter of distractions and side-issues which provide such ready headlines. But the path we want to travel along with New Zealanders' support is clear.

We want to build a truly First World economy driven by knowledge, skill and technology. That economy must produce goods and services of ever greater sophistication and value to sustain First World living standards and public services in health and education. We want to take pride in having a clean and green environment, in protecting our heritage and in branding ourselves as a tolerant, dynamic nation with creative and talented people.

Much depends on the economy. It is undergoing a transition towards growth based on investing, producing, exporting and earning our way to sustainable growth and away from the quick-fix and ultimately self-defeating consumption-led growth strategy of our predecessors, which led to the blowout in imports and the excessively high current account deficit. That deficit fortunately is now receding, and ensuring that it does is a top Government priority.

Right now the country has big opportunities. The dollar is substantially undervalued, but so today are most Western currencies. This is the time to focus on exporting and to build a stronger, more diversified economic base for the future. The Government will announce export credit guarantee initiatives to help build the sector this year.

Support for research and development by business is a high priority and essential for rebuilding the economy. Our first Budget saw substantial new spending on private-sector research and development. I remain optimistic that a better tax system can be designed to boost research and development further.

It is worth reminding those frustrated with the pace of policy development in this area that the previous Government had nine years and delivered no tax initiatives on research and development to business' satisfaction. We have been in office 10 months and are working on it.

Ours is a third way Government, striving to achieve a better balance between a dynamic market economy and a fair society which offers opportunity and security to all.

Labour is committed to an open, competitive economy. Overwhelmingly the fundamentals favoured by the business community remain in place. The Reserve Bank and Fiscal Responsibility Acts are intact. The Government is budgeting for and will maintain surpluses. Government spending as a proportion of GDP is falling.

Open trade initiatives with Singapore and the Asean Free Trade Area as a whole are being advanced. Our door is always open to closer economic partnerships with the United States and Chile. We are pursuing even closer economic ties with Australia.

As well, the human face of politics will continue to be shown. A growing economy must deliver gains and opportunity to all our people. That is a basic belief for a social democratic Government such as ours and one we will uphold.

We want a society which is inclusive of all ages, regions, ethnic and socio-economic groups. We want a society in which everyone can claim a stake. The politics of exclusion and division which have characterised New Zealand for so long will not be practised by any Government I lead.