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Home / Business / Economy

<i>Liam Dann</i>: In search of a shared goal

Liam Dann
By Liam Dann
Business Editor at Large·NZ Herald·
31 Oct, 2008 03:00 PM5 mins to read

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KEY POINTS:

When it comes to shared goals for our nation, consensus is far stronger than the division across the mainstream political spectrum.

Most New Zealanders are seeking a stable, prosperous society in which to raise children - or to indulge some other less harrowing passion.

But as soon
as we get down to the nitty gritty, that sense of collective agreement falls apart.

The trauma of the free market reforms through the 1980s and 1990s seems to have created a gulf between those who talk about creating a more productive and competitive economy and those who talk about a more sustainable and equitable economy.

Actually, there is also a third more problematic category - those who don't talk about the economy at all.

Wellington businessman Lloyd Morrison is trying to change that.

This week he and his colleagues at Morrison & Co have published a discussion document called A Measurable Goal For New Zealand.

There hasn't exactly been a shortage of weighty tomes on how to drive economic growth emanating from the business sector over the past few years.

Some, like the report published by Mark Weldon and David Skilling last month, are longer on detail and worthy of serious consideration by those in positions of power.

But blueprints for economic transformation seldom resonate across the popular culture in a way that they might generate a groundswell of support for change.

Thus far it has proved difficult to get ordinary middle-class New Zealand fired up about the issue.

Why has it been so hard to get the new mainstream of smart, reggae-loving, rugby-watching eco-friendly, Labour-leaning masses on board a programme of progressive economic transformation?

Perhaps because this demographic has enjoyed nine years of relative economic prosperity. But perhaps also because the traditional messengers of such ideas are still viewed with suspicion.

The Business Roundtable, the NZX and most economists still represent the conservative establishment in the eyes of a large chunk of the population.

Morrison's proposition is interesting because it takes a softer, more inclusive approach.

It is also a simple one. Without a measurable goal to aim for, our attempts to drive long-term sustainable economic growth are doomed to be haphazard and inefficient.

Or as Morrison puts it: "We want everyone to be better off, knowing that individual wealth does not result in freedom from crime and the social fallout of excessive disparity. However, there is no clearly articulated goal we are pursuing and no solid plan of how we can get there."

But Morrison also keeps his focus on the key measures of economic growth which we need to look closely at if we want to do this properly.

GDP growth per capita is hardly a sexy concept but it is one we desperately need more New Zealanders to understand.

It is about having more money per person to spend on the things we want and need. Not borrowed money - real wealth that we can spend on health, education, saving the environment or flat screen TVs should we so choose.

Morrison is most well known as executive director of the listed infrastructure investor Infratil. The company owns (or partially owns) Trustpower, Stagecoach buses and Wellington Airport.

But in Wellington Morrison is also known as a supporter of arts and sports. He is a passionate fan of New Zealand music from chamber orchestra to rock collective.

As such, is he is well aware of the issues that turn large chunks of the public off economic discussions.

The first questions he tackles in the Q&A document he has released relate to why we should focus on a single economic goal. Why not a more balanced scorecard? And what about the environment?

"The focus on an economic growth target shouldn't lead to myopia," he notes.

"We recognise that if we, as a nation, take a simplistic view of economic growth, we risk sacrificing some of the social and environmental qualities that make New Zealand special ... If we commit ourselves to ongoing, compounding growth, this implies a commitment to continually build the foundations for future success rather than just using up environmental stocks and under-investing in social development."

There is much more of course. There is analysis of OECD league tables, which New Zealand once topped - for GDP per capita - in 1900 and has been sliding down ever since.

Morrison's suggestion is that our national goal should be to get back into the top 10 OECD nations on that particular measure.

No doubt he is hoping to stir up some debate before the election.

But he will also be hoping this debate can gather some momentum beyond the election.

The issue is of enormous importance regardless of which party has the numbers to form the next Government. The global financial crisis has made it more important than ever that New Zealanders take a hard look at their economic future.

If we do and we actually get some buy to the idea of a measurable goal, then we'll have a real starting point - something that should be bigger that party politics.

So check it out. A copy can be viewed or downloaded from www.blog.nzx.com.

* Liam Dann is the Herald business editor.

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