Dialogue: Partnerships basis of our future prosperity

By HELEN CLARK*

Work is central to our lives. It underpins our wealth and well-being. The Herald's reports on the jobs challenge and the series of contributed articles raised critical issues, such as the changing nature of work, the role of the state in job creation, the need for greater innovation and skills training, and education.

For some years unemployment has been a major concern. I read recently comments by Jane Stevens, who in 1984, as a 23-year-old advocate for beneficiaries, made an impassioned speech to an economic summit called by then Prime Minister David Lange. She was recalling that in 1984 unemployment of about 50,000 was considered horrific. She expressed the view that today "no one seems to mind" an unemployment level of around 114,000.

I don't agree that no one seems to mind. It is a tragedy that more than 100,000 New Zealanders who are available to work cannot do so. That is why I am determined to address the problem. We have to create a sustainably growing economy, capable of producing ever more sophisticated goods and services. That means mobilising all the talent, creativity and goodwill at our disposal.

There were many stimulating contributions from those invited to participate in the Herald's Jobs Challenge series. I want to reflect on some of the points raised.

Telecom chief executive Theresa Gattung referred to New Zealanders' high internet use and the growing take-up of electronic commerce, noting that we have the talent and infrastructure to blast the world with the Kiwi knowledge economy. I agree. The challenge for Government is to help this country take advantage of the exciting opportunities in front of it.

We need to set the conditions for e-commerce to thrive. Those conditions include a competitive marketplace, responsible fiscal policy, standards that emphasise fairness, modern communications and a climate that fosters innovation.

We have to take the economy upmarket so that it is increasingly driven by knowledge and skill. The result will be more jobs - and more better-paid jobs. As Peter Conway, of the Council of Trade Unions, observed, the knowledge economy is not about nerds in front of computer screens. It's about getting extra jobs, production and income from our farms, forests, fisheries and factories.

New Plymouth Mayor Claire Stewart wrote about the success of the partnership approach in her region, where the Venture Taranaki Trust has had a hand in creating 340 jobs. Run by a board drawn from the private sector, Venture Taranaki receives about $900,000 annually from the New Plymouth District Council to develop existing enterprises further, attract new investment and help people to set up new businesses.

It shows what can be achieved when the building blocks for a regional development programme are put in place.

Like the New Plymouth council, the Government sees itself as a leader, a facilitator, a broker and a funder in the drive for greater prosperity. Over many years the state has progressively divested itself of its capacity to play these roles.

We have set up the Ministry of Economic Development and a new, private-sector-oriented agency, Industry New Zealand, to ensure that we make the most of development opportunities. New funding of $330 million over four years is going into Industry New Zealand's programmes. This helps ensure new business ideas get up and running, employing people and creating wealth.

I want to touch on two of the issues raised by Andrew Grant, of management consultancy McKinsey and Co - the need to make genuine progress towards a knowledge economy, and the need to welcome talented immigrants. They are important spurs to a jobs-rich future.

The Government recognises that higher levels of education and skill are the key to a more prosperous future. For that reason, we acted swiftly to bring down the barriers to increased participation in education. Full-time and part-time students on low incomes now pay no interest on loans while they study, and for 2001 we have made a funding offer to our tertiary institutions, which they have accepted, enabling them to hold their fees at this year's levels. These measures will help ensure that the higher-value economy we are building gets highly educated people in greater numbers. We have to attract more people into education and training.

I endorse Andrew Grant's call for talented immigrants. Immigration helps stimulate economic activity. The Government has asked officials to fast-track the simplification of immigration rules for people with skills that are in short supply. The present points-based system is not working well.

Chris Liddell, Carter Holt Harvey's chief executive, noted that the Government can have a huge positive impact on the flexibility of an economy to respond to opportunities and change. I have no argument with that. We have already addressed issues that our predecessors ignored.

For example, a new takeovers code has been gazetted to ensure investors get treated fairly. A four-pronged programme for tackling compliance costs has been announced. Decisions have been made on improvements to competition law. The cost of ACC to employers as a whole is now lower. We have proposals to create more certainty around the tax treatment for research and development. Work is well advanced on an export credit guarantee scheme. These are some of the initiatives that address business concerns.

We don't pretend to have all the answers. The Government acknowledges the jobs challenge will require partnerships and commitment between Government, business and communities at all levels. I applaud Adaleen Griffith, managing director of Jagas Concrete, who wrote that we shouldn't sit around complaining and looking for someone else to fix things for us.

The Government accepts its responsibility to those who want the opportunity to work. But we also appreciate that a strong and sustainably growing economy - and the jobs which flow from it - will be realised only by New Zealand Inc working together.

* Helen Clark is the Prime Minister of New Zealand.

Herald Online feature: The jobs challenge

We invite your responses to a series of questions such as: what key policies would make it easier for unemployed people to move into and generate jobs?