The Prime Minister is making a worthy effort to engage business in a "free dialogue" about the path ahead. It is a pity that among the 85 on her confidential invitation list she has not found room for some of the leaders of prominent business organisations. They have little to contribute, she believes, because they refuse to accept last November's election result. It is time both sides got past this point.
Business leaders who want to join the conversation will have to come to terms with the steps the Government has taken to fulfil its mandate. At the same time, if the Government wants to reconcile investors to its present course, it will have to present stronger arguments than that which the Finance Minister himself has summarised as, "We won, you lost. Tough."
Private investors and fund managers know a sovereign democracy has the right to change its economic management in any way it wishes. But they do not accept a political or moral obligation to retain or add to their investments in that economy if they believe the democratic changes will weaken it.
The Government realises that. What it does not seem to realise is that every time it tells economic critics, "We won, you lost ... " it makes it tougher to convince investors that there is more to the country's economic management now than a popular vote. The Prime Minister's brainstorming session with invited business people in Auckland shortly needs to dispel that impression.
The Government has largely fulfilled its election promises and in accordance with its mandate there is unlikely to be further privatisation of services, tariff reductions (except in reciprocal deals such as that with Singapore), general tax cuts or perhaps deregulation of primary exporting monopolies.
But economic reform has reached the point where the marginal value of further steps is probably declining.
The Business Roundtable strongly disagrees and argues particularly that it is vital to reduce the total state burden on the economy to get the growth rates the Government seeks. Furthermore, the Roundtable is wary of "partnership" with Governments and as an organisation it probably would not be anxious to attend the Prime Minister's gathering.
In fact, Parliament was told yesterday, no organisations will be represented. Some of their leading lights have been invited, though not, it seems, those of the Roundtable. Why not? Their voices will continue to be heard in public debate. The Prime Minister can exclude them from her discussions if she wants to, but one way or another she will need to answer any criticisms of programmes that might emerge. It can be better to include likely critics at the outset.
She needs largeness of spirit, to embrace critics and acknowledge the validity within every point of view without letting any political or philosophical convictions restrict the possibilities.
Politicians, particularly those who defend fairly fixed positions in Parliament every day, find it hard to believe that, outside Wellington, most people who discuss the nation's affairs are not much concerned about partisan implications.
It is not too late for Helen Clark to send out a few more invitations to her Auckland business forum, and book a bigger venue if necessary. Nobody interested in the nation's welfare should be excluded.
<i>Editorial:</i> Critics should be on PM's guest list
AdvertisementAdvertise with NZME.