Dr Jacqueline Rowarth, adjunct professor at Lincoln University, is a director of DairyNZ, Ravensdown and Deer Industry NZ. She is also a member of the Scientific Council of the World Farmers’ Organisation.
OPINION
Regional Development Minister Shane Jones’ words that it is “too hard” to produce food in New Zealand should strike a chill in the heart of every New Zealander.
Food constitutes almost 70% of the export economy, with about 10% from fibre.
The income circulates in ever-increasing circles — and when it stops, the ripples spread in a negative fashion.
The closure of businesses throughout the North Island has shown the problem.
From the central North Island and from Penrose the ripples are spreading — high power prices and businesses that are unsustainable.
In the South Island, it is ripples from meat plants that are being felt.
More bad news — T&G is closing its cold store in Dunedin.
Every business closure is a toll of the bell and zombie towns are in the news again.
Economist Shamubeel Eaqub put the term on people’s lips in 2014, and now it is back.
Exacerbated by stories of greener pastures over the Tasman, people are leaving New Zealand in record numbers.
The University of Wharton Best Countries Index shows why.
Of 89 countries, Australia ranks fifth overall, eighth in quality of life and has a job market score of fourth in the global index.
New Zealand is ninth overall and ranks 10th in quality of life, but is 14th in the job market ranks.
For affordability, New Zealand ranks higher (58th) than Australia (64th), but affordable countries score less well overall.
Thailand is ranked as the most affordable country in the world, but scores 28th in the best country rankings, Vietnam is second in affordability, but 44th overall and India is third, but 33rd overall.
Listen to Jamie Mackay interview Dr Jacqueline Rowarth on The Country below:
Teasing out the data further reveals that New Zealand ranks first in caring for the environment, with Australia third.
For commitment to climate goals, New Zealand is third and Australia eighth.
Affordable countries don’t rate highly in these areas, nor in any of the social purpose indicators that New Zealanders value, including caring for animals and people.
Switzerland is at the top of the ranks in the best countries Index — but for climate goals, animal rights and even caring for the environment, it scores below New Zealand — and affordability is 0.5% (88th of 89 countries).
No country can have it all.
Every country has to make choices.
In democratic countries, the choice is guided by society voting for parties according to their policies.
These policies are guided by a range of factors including science, economics and ideology. The last one does not always create what is needed.
In May 2019, New Zealand attracted international attention launching a Wellbeing Budget that committed to putting people’s wellbeing and the environment at the heart of its policies.
The Wellbeing Budget was designed to use social and environmental indicators, along with economic and fiscal indicators, to guide the Government’s investment and funding decisions.
Then-Prime Minister Jacinda Ardern launched the approach, stating: “The purpose of government spending is to ensure citizens’ health and life satisfaction, and that — not wealth or economic growth — is the metric by which a country’s progress should be measured. GDP alone does not guarantee improvement to our living standards and does not take into account who benefits and who is left out.”
Despite increased investment in wellbeing since then, the StatsNZ release last month showed no change.
The report indicated an average overall life satisfaction score of 7.6 out of 10 (where 0 is low and 10 is high), which was similar to the mean rating of 7.7 out of 10 in 2021 and unchanged from 2018.
Resilience is to the fore; most people adapt to their situation and feel their personal sense of wellbeing is okay, though could be improved “if”.
But investment in that “if” doesn’t always create a difference in the longer term.
The problems with short-term thinking have been in the media.
Sense Partners’ report released in March highlights the issues.
“Short-term thinking is not going to cut the mustard. New Zealanders want to be prosperous and be good stewards of environmental and social resources. But we are trapped by inertia and low productivity performance, even as tectonic economic, technological, social and environmental shifts are upon us”.
How do we increase productivity and income to pay for the ongoing stewardship?
Sense Partners states that because nothing comes for free, “It will be important for the business community to speak with one voice on the key issues, and to show where firms are willing to incur short-term costs for the sake of securing longer-term policy stability. This should help politicians negate commitment problems at election times.”
The primary sector is trying to do its part in productivity and export income, but Shane Jones’ words are real — it has become too difficult.
No country can have it all.
We need food production for domestic supply and export income.
Other countries appreciate what has been achieved so far for the environment and climate change goals.
Investing in “wellbeing” hasn’t created a difference.
Fast-track projects are vital to stop the ripples spreading; it isn’t only Shane Jones who thinks the present state is too hard.
And it isn’t only Shane Jones that wants to be able to do better.
