Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Economic Correction Needs Political Correction

PRESS RELEASE

FOR IMMEDIATE RELEASE
Economic Plan - Part 2 of 2

Economic Correction Needs Political Correction

"The response of the mainstream political parties to the global economic crisis has been universally appalling," says Libertarianz party leader Bernard Darnton. "First denial, then promises of deficit spending of both the type and degree that helped delay recovery from the Great Depression for more than a decade."

"New Zealand just can't afford this," he says. "The scale of the market calamity is potentially the worst since the 1930s, and our own markets need to be as free as possible to allow us to respond, to correct, and to get back on our feet among the first of the recovering countries."

"And let's admit something right up front," he says, "we're not playing tiddlywinks here. Just like the rest of the world, New Zealand has no choice about the pain of the coming correction. Our only choice is whether the pain takes one year, or two, or ten. We either confront the task and endure one year of pain - like ripping off a band-aid, we can get it over with as quickly as possible - or we can try to fake reality and endure a whole decade of pain instead, just as Japan did in the nineties - the period they still call its 'lost decade'."

"Only Libertarianz appears to realise the scale of the crisis bearing down on us, and the reality of this fundamental alternative," laments Darnton.

"This morning, Libertarianz finance spokesman Julian Darby released the first part of our plan outlining what government can do to prepare New Zealand to weather the crisis: the Stop-Spending-So-Goddamn-Much Plan. This afternoon," says Darnton, "I'm announcing the crucial second part."

"I call it the Get-The-Hell-Out-Of-The-Way Plan."

"When market corrections bite, the most urgent pressure is on prices. We urgently need to remove all the handbrakes on markets correcting themselves -- to slash away all the political barriers that stop prices dropping to meet the new market reality we all have to face: that things today aren't worth anything like what they were yesterday."

The most urgent of these barriers is the minimum-wage law, and all pro-union legislation. In time of recession when labour costs need to drop to meet falling demand and plummeting prices, laws that keep wages artificially high and that featherbed labour protectionists are a clear invitation to produce huge lines of unemployed and turn 'recession' into 'depression'. "The necessary adjustment will be painful," admits Darnton, "but if the correction is allowed to proceed across the board, other prices will drop commensurately so the pain need not be so great as you might imagine."

The other matter of urgency is the removal of all the legislative restrictions that keep replacement housing prices high - so high now that most houses are now worth less than their replacement cost. These include all the green and gold-plated additions to the Building Act (which would have included the ban on decent showers) - which essentially means gutting it and going back to 1987. It includes removing the power of councils to collect exorbitant levies on new developments - which essentially means gutting the Local Government Act.

And it urgently includes removing all the well-documented restrictions on land supply that have pushed the cost of new housing up so high - and that means abolishing the Resource Management Act and sending council planners on a long holiday to their spiritual home: North Korea.

Once these are out of the way, removing the other barriers to prices dropping and businesses getting on with their business affordably should follow almost immediately - this means an urgent and immediate end to expensive "luxuries" such as GST, OSH, compulsory ACC levies and the Emissions Trading Scams of both major parties.

"Political correction like I've described above," concludes Darnton, "is the necessary response to the much-needed economic correction. While other countries struggle to get their own tired economic vehicles into the pits, we'll be back on the track and heading for the home straight. Only correction on this scale will allow struggling businesses to cope with the new economic reality, to 'de-coke' our clogged economic engine, and to set us back on the road to real recovery."

"It's enough to make you vote Libertarianz!"

For more information, see www.libertarianz.org.nz


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Anzac Issue Out Now: Werewolf 47

Hi and welcome to the 47th edition of Werewolf, published on the eve of Anzac Day. Its become a cliché to describe Gallipolli as the crucible of this country’s identity, yet hold on... Isn’t our national identity supposed to be bi-cultural... and wouldn’t that suggest that the New Zealand Wars of the 19th century is a more important crucible of national identity than those fought on foreign soil?

Yet as Alison McCulloch eloquently reveals in this month’s cover story, New Zealand devotes a mere fraction of its attention span and funding resources to commemorating the New Zealand Wars compared to what it devotes to the two world wars, Vietnam and Afghanistan... More>>

 

Parliament Today:

Crowdsourcing: Green Party Launches Internet Rights And Freedoms Bill

The Green Party has today launched the Internet Rights and Freedoms Bill, New Zealand’s first ever Bill crowdsourced by a political party. More>>

ALSO:

Gordon Campbell: On The Shane Jones Departure

Shane Jones has left Parliament in the manner to which we have become accustomed, with self interest coming in first and second, and with the interests of the Labour Party (under whose banner he served) way, way back down the track. More>>

COMMENT:

Multimedia: PM Post-Cabinet Press Conference - April 22 2014

The Prime Minister met with reporters to discuss: • The recent improvement in the economy with a growing job market • Income and wealth inequality • Easter trading laws • The New Zealander killed in a drone strike in Yemen... More>>

Easter Trading: Workers 'Can Kiss Goodbye To Easter Sunday Off'

The Government’s decision to “reprioritise” scarce labour inspector resources by abandoning the enforcement of Easter Sunday Shop Trading laws means workers can kiss goodbye to a guaranteed day off, says Labour’s Associate Labour Issues spokesperson Darien Fenton. More>>

ALSO:

ACT Don't Go For Maximum Penalty: Three Strikes For Burglary, Three Years Jail

Three strikes for burglary was introduced to England and Wales in 1999. As in New Zealand, burglary was out of control and given a low priority by the police and the courts. A Labour government passed a three strikes law whereby a third conviction for burglaries earned a mandatory three years in prison... More>>

ALSO:

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home. More>>

ALSO:

Elections: New Electorate Boundaries Finalised

New boundaries for the country’s 64 General and seven Māori electorates have been finalised – with an additional electorate created in Auckland. More>>

ALSO:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news