John Banks: Social justice comes via economic prosperity

No country can achieve social justice without economic prosperity.

If I had delivered yesterday's Budget the primary focus would have been on ambitious investment, growth and jobs.

My Budget would have dished out real ingredients to make the cake bigger. We need a fast-growing economy, if only to reduce the fast-growing gap in living standards within New Zealand.

I congratulate the Government for practising fiscal prudence and achieving significant and growing Budget surpluses. But what about growth?

We need to lift our economic performance and to do this we must complete this country's economic infrastructure. Arguably, an emphasis on infrastructural completion is a key reason why Australia today consistently sits at the top of wealth, productivity and international competitiveness surveys while we languish at the bottom.

New Zealanders deserve to enjoy the high standard of living everyone wants. With Auckland the engine room and the fastest-growing region, Budget 2003 should have at least included a commitment to invest an extra $250 million a year, for the next four years, in Auckland's roading and public transport.

In recent days there's been much commentary about where the surplus billions should be directed, with some even believing a Labour Government should be redistributing the country's wealth by bumping up benefit payments. That's interesting but would such a move deliver a better country for our grandchildren?

A $4.04 billion operating balance tells me that every New Zealander is overtaxed. The Minister of Finance should have announced cuts to the top personal and company tax rates. This would be a brave investment and would send a strong message to the key drivers of growth. Substantial tax relief would help Auckland attract and retain skilled people and investment.

The cost of doing business in this country is still too high. Yesterday's Budget should have put an end to the weasel words around cutting bureaucratic red tape.

A black and white commitment to reducing compliance costs with some real goals should have been unveiled. Auckland City is showing regulatory responsiveness - so too must central Government. Despite Beehive spin around making amends, the Resource Management Act will remain a regulatory maze with growth and prosperity the casualties.

The Government could have announced an immediate audit on issues around immigration. In this the most diverse city in the country, I welcome immigrants' contribution to the GDP and to Auckland's heart and soul. However, many are left to feel unwanted, unworthy and unhappy in their new country. The $21.2 million - over four years - targeted at opening up job opportunities for refugees and migrants is a small step in the right direction.

In the past two or three years New Zealand's growth has been better than the OECD average but we need to treble the projected level to get us back into the top half of the OECD. Next year's projected 2.2 per cent growth is simply not good enough.

The Government rightly highlights the energy crisis and the negative impact of Sars. It's now time Auckland's crippling Third World economic infrastructure was not only acknowledged but fixed.

* John Banks is mayor of Auckland City.