"We can't simply milk more cows, ship more logs, dig more coal and close a 40 per cent value gap, there isn't enough water, you run into environmental constraints, there's not enough arable land, so therefore an alternative strategy is required that will require the migration of parts of the economy to higher value activities.
"That's got to happen against the background that we are a small, remote and in global trade terms, a sub-scale economy who have to fight extra hard to attract talent and investment."
Where Labour differed from National was that it would intervene in markets and sectors where they were not working properly, as it had done to challenge Telecom's dominance of the telecommunications industry last decade.
In an era where free market capitalism had "partially self-destructed" during the global financial crisis, Labour would be prepared to use strong intervention possibly including measures such as direct employment schemes if required.
The approach would differ from the previous Labour Government's "top down" efforts by drawing more heavily on the experience of successful businesspeople.
"Let's not pretend that politicians or civil servants have all the answers," he said.
