Editorial: Economy still at the core

As the election campaign enters its final week, it is time for every voter to take stock of what has happened so far. If they do, they will be struck by two contrasting aspects of the campaign. The first is the remarkable success of the minor parties, which have seized on emotive issues such as crime, genetic engineering and immigration and cleverly presented them to the electorate with neat, simplistic slogans. The second is the background unease about the parlous state of our health and education systems.

Unfortunately, voters will see very little evidence that economic issues were at the forefront of the debate. It is not hard to see why this should be so. Economic issues are necessarily difficult to grapple with and do not lend themselves easily to simplistic treatment in the heat of the campaign trail. It is much easier for a minor party to highlight one or three emotive issues with which it can hammer home a simple message by repeating it over and over again. Judging by the significant tide of support in the polls running towards the Greens, New Zealand First and, to a lesser extent, Act, this is an effective means of winning votes.

But it must be judged a victory of politicking over policy. The most important issue in this election, as in most others, is the economy. Without a strong economy political leaders' statements about creating a better, fairer New Zealand are just so much political rhetoric and voters' dreams of improved health and education systems will remain just that, dreams.

Last week the Business Herald published interviews with the chief executives of four of our leading companies about the state of the New Zealand economy in the run up to the election. The four leaders - Craig Norgate of Fonterra, Chris Liddell of Carter Holt Harvey, Greg Muir of the Warehouse and Theresa Gattung of Telecom - all deserve a respectful hearing from politicians and the electorate because, from their lofty perches, they can take the broad view of the economy.

All four, in their own ways, drove home the same message. Economic growth is vital if New Zealand is to improve its standard of living. The way to acquire those important social services that we want, such as education and health, is not through increasing taxes but through creative policies that encourage rather than hinder economic growth. Some emphasised general points, such as the need for a change of attitude. Others spoke of specific issues and policies such as the Reserve Bank's inflation targets, the tax system, superannuation, compliance costs, public spending and labour law.

None of this would have been surprising to readers. Of course corporate leaders would have firm views on these matters. What is surprising is how little these issues have impinged on the election campaign. Instead of fighting the major battles over economic policy, the main parties have been drawn into skirmishes with minor parties over peripheral issues. Even the National Party, which normally could be expected to stimulate debate on economic growth, has failed to make its voice heard above the clamour about GM and immigration.

One thing that every voter should bear in mind is that if we are to improve, or even maintain, our standard of living we must all work to make the economy grow. It is not sufficient to be merely good enough, we have to be better.

Tomorrow, the Herald publishes a comprehensive guide to the election which includes a table giving succinct summaries of party policies. Voters would be well advised to weigh carefully those policies that impinge on economic growth before deciding where to cast their votes.

Full news coverage:
nzherald.co.nz/election

Election links:
The parties, policies, voting information, and more

Ask a politician:
Send us a question, on any topic, addressed to any party leader. We'll choose the best questions to put to the leaders, and publish the answers in our election coverage.