Simon Bridges says it is not his intention to seek the leadership of the National Party. Video / Mark Mitchell
One of New Zealand's most well-known economists, Cameron Bagrie, has delivered a searing rebuke to the National Party, saying they're stuck in a "historical mindset".
Bagrie was ANZ's former chief economist, but now runs his own independent economics consultancy.
"I think New Zealand is stronger when we have two strongmainstream parties, even under MMP.
"We get more contestability, better genuine policy debate and accountability. We simply do not have that at present," Bagrie said.
"The world we live in is changing rapidly. Disruption is everywhere, economically, the enduring impact of Covid, the environment, technology and changes in social values.
"It does not matter where you look; at businesses, households, individuals, change and adapting to change is the new normal. The same applies to every political party. The Nats look stuck in a very historical mindset," he said.
Although he is not a party member, Bagrie has spoken at National Party conferences as an independent economist, giving a snapshot of the economic landscape and joining panel discussions with the party's economic portfolio holders: Paul Goldsmith, at the 2019 conference, and Andrew Bayly and Michael Woodhouse at the 2021 conference.
Bagrie was speaking out after growing frustration that the party had lost sight of important issues, which he said was bad for politics as a whole.
"It puzzles me why a political party does not go harder on education. Or maybe it is just in the too-hard basket? But NZ's future in 30 years is partially dependent on the education system and outcomes today. The signs are not great," he said.
Bagrie argued that politics had neglected the balance that needs to exist between social issues, like wellbeing, and the economic base that needs to exist to fund programmes that drive wellbeing.
Cameron Bagrie, managing director at Bagrie Economics, said National has a mindset that is stuck in the past. Photo / Alex Burton
"For decades we have swung from the economic ledger to the social ledger and back and forth," Bagrie said.
"We need better balance and a data dictated, well-executed policy prescription down the middle. Wellbeing needs an economic base just as the economic base is dependent on wellbeing including housing and education outcomes," he said.
He warned that tough economic choices were coming down the pipeline, warning the age of "sugar candy economics" needed to end.
"The Government has done really well supporting the economy by running expansionary fiscal policy and spending money.
"But that sugar candy economics does not deliver an enduring economic base wellbeing is dependent upon," he said.
Parliament returns from a one-week recess on Tuesday. Changes to Parliament's Covid-19 rules means that more Auckland and Waikato MPs are likely to return to the city this week.
