Kiwis rise to challenge of work in 21st century

SIMON COLLINS and MATHEW DEARNALEY sum up seven weeks of the Jobs Challenge series.

In the nine years from 1987 to 1996, New Zealand created 1,451,000 new jobs. In the same period, 1,392,700 jobs disappeared.

Constant change is speeding up and is becoming international. The box on this page shows that many of the new and the lost jobs since the Jobs Challenge series began on October 7 reflect large companies shuffling work around the world.

And, increasingly, the people filling those jobs are also moving around. The series began by reporting that 80 per cent of first-year business students at Auckland University expect to be overseas in five years.

Inevitably, some will stay away. With less than 0.1 per cent of the world's population, New Zealand is never likely to provide the highest-paid jobs in the world's biggest companies, or even the variety of work and leisure that bigger places offer.

The challenge we started with, therefore, was not how can we become the richest in the world, but how can we generate jobs paying incomes that are high enough to ensure people want to live here?

An editorial said: "We believe there is a growing number of people who are prepared to give their talents to setting New Zealand on a new course. We will seek out those people and provide a platform where their ideas can be aired."

The response was overwhelming - more than 200 letters and e-mails. Ideas covered the spectrum - from a low flat tax and less official red tape (Robyn Taylor, Ponsonby) to central and local governments "resuming their roles as employers" in education, transport and the environment (Bernard Gadd, Papatoetoe).

What they share is a sense that we are all in this together - that we have all chosen to live in this country, and that it's up to us to make it a good place for everyone who lives here.

We asked for feedback on 10 issues:

INVESTMENTThe first issue in the series (October 7) examined the Labour/Alliance Government's "hands on" policy of helping both major investments and small businesses.

Union economist Peter Conway said the Government should also invest capital in selected start-up companies because it was in the country's interests to take more risks than any private investor would.

But Science Minister Pete Hodgson said ministers would "suck and see" before going beyond one-off grants.

Readers suggested reducing official form-filling, streamlining planning consents and offering investors cheap land.

KNOWLEDGENew Zealand ranks second out of eight surveyed countries for our legions of lawyers and accountants, but bottom for engineers. High-tech companies such as Tait Electronics advertise overseas for staff because not enough New Zealanders have the skills they need.

National MP Maurice Williamson suggested financing only the number of students the country needs in each field. But Labour is unlikely to agree.

Many readers proposed scrapping student fees completely. Some suggested bonding graduates to work in New Zealand until their taxes have paid for the cost of their education.

GLOBALISATION The internet can connect New Zealand to the world as refrigeration did in the 1880s. Investor Christopher Wragge advocated upgrading phone lines in the regions and ensuring everyone has the skills to use the net.

From around the world, expatriate readers e-mailed in offering to be a resource for New Zealand businesses seeking markets or investors. Sheffield personnel consultants plan a web site for expatriates to contribute ideas and contacts. The Herald is considering a broader initiative.

THE CURRENCY There is a strong case for adopting the Australian or US dollar to reduce the risks for small businesses getting into exporting.

But the case is equally strong for keeping our dollar independent so Governments can lower local interest and exchange rates when necessary to boost employment.

One option could be multiple currencies, with foreign currencies able to be used as legal tender but only the kiwi being accepted for tax payments.

GROWTH SECTORS

The Weekend Herald's pick of a dynamic dozen was: tourism, biotechnology, information technology, wine, food technology, healthcare, boatbuilding, forest products, farming, organics, call centres and films.

Readers added flowers, alternative energy sources, environmentally friendly developments, mussel farming and hosting the Winter Olympics.

REGIONS Regional development is back in favour. A taskforce is galvanising investment in roads and businesses on the East Coast, and new taskforces are being signalled in Northland and Wanganui.

Regional development policies recognise that not all regions can be the richest in the world, but we can aim to ensure that everyone in every region has access to comfortable living standards. Readers' suggestions included tax breaks for investment in our lower-income areas.

TAX New Zealand companies are being lured to invest overseas by tax incentives for new investments, exports, and research and development. So far the Government has resisted similar moves, apart from a minor "clarification" of the tax rules for research and development.

Readers suggested tax incentives, five-year tax holidays for new businesses, and lower company and personal taxes.

UNEMPLOYMENT A Mayors for Jobs taskforce is preparing a plan to ensure that everyone under 25 has a job or training by 2005.

Some 26 local councils also aim to eliminate their wastes going into landfills by 2015 - both reducing greenhouse gas emissions and employing people in recycling.

Readers' ideas included putting unemployed people's curriculum vitae on the internet, making people work for their dole, and stopping the dole after three months.

IMMIGRATION More than 11,000 immigrants in Auckland are unemployed. Work and Income has started a scheme to give migrant engineers unpaid work experience, but is having trouble finding enough employers. A resource centre is planned to help immigrants find jobs.

Most readers wanted to relax restrictions on skilled immigrants, but some valued our small population. An expatriate, Mike Daly, suggested that each year's residence rights should be tradeable, so those who leave could sell their rights to the highest bidders.

SHARING From 1945 until the late 1970s, New Zealand had virtually zero unemployment. The Maori Employment and Training Commission proposed setting targets to cut unemployment again, with an employment "governor" to achieve them.

But if interest and exchange rate policies were directed at lowering unemployment, then inflation would need to be controlled more directly through union and employer agreement to limit wage and price rises.

In return, the Government might need to offer tax cuts or better social services.

That would require not just more "hands-on" economic policy but also a shift from adversary to consensus politics. That may be a harder mindshift to achieve.

NEW JOBS

Oct 7: Heinz opens expanded Hastings factory, replacing Australian plants (300 jobs).

Oct 9: Newcall starts Auckland call centre for Australian & Asian hotels (plan for 200 jobs).

Oct 12: Boatbuilders have recruited more than 100 people from South Africa this year.

Oct 14: GeoVector Corp & Ericsson develop cellphone software in Auckland (up to 40 jobs).

Oct 18: Upper Hutt's Rimutaka Prison expands (40 jobs).

Oct 18: Brunswick Corp may build outboard motor assembly plant in Nelson.

Oct 26: Winz to hire extra 160 summer staff for student loans & allowances.

Oct 27: New campervans create 15 jobs at C.I. Munro, Otorohanga.

Oct 28: Japanese firm to open organic agricultural college in Oamaru.

Oct 31: Masport centralises Australasian helpdesk in Auckland (10 jobs).

Oct 31/Nov 2: St Luke's Mall to double (1800 jobs); Newmarket super-mall proposed.

Nov 3: Ericsson & Synergy to develop mobile internet software in NZ (150 jobs).

Lost Jobs