Rt. Hon Winston Peters

Leader NZ First

Address to: Timaru Grey Power

Caroline Bay Hall

Hall St

Timaru

Date: Wednesday 20th October 2010, 2pm

Where is National’s Economic Policy?

Twenty five years ago there was a by-election in this city.

In that campaign the Party that won used the slogan “Send them a Message”.

Timaru did.

This city raised the first protest against new right economics. You sent them a message.

Parliament never heard it then, and it has ignored your message ever since.

After two years in office questions are being asked about the present government’s economic policy.

People are asking themselves:

Has this government taken a single, significant, step to boost our economy?

To answer that question we need to reflect on what they have done.

Well they have:

• raised GST to 15%;

• tinkered with the tax system in favour of the well-off;

• poured billions into guaranteeing a number of finance houses.

But where are the ideas, the initiatives, the policies that will halt New Zealand’s drift downwards?

Where are the policies that will reverse the decline and put us firmly on a path to prosperity?

All questions to which NZ desperately needs answers.

Let us look at the most critical issues of economic policy.

The Exchange Rate

We are a small nation with an export led economy.

Allowing our currency to be whipped around at the whims of international speculators and wheeler-dealers is madness.

The dollar’s volatility is undermining our export industries – the businesses that produce the essentials things the world wants – and the source of real wealth and jobs.

Those sectors we should be supporting, our export industries, manufacturing, tourism, are being hit the hardest.

John Key was a currency speculator – he either has some answers or he is willfully refusing to take action.

Either way, the real economy is suffering grievous damage from the wide and wild swings in the value of the dollar.

New Zealand First says exchange rate policy should be designed to serve our people and our businesses not international currency speculators. The former is an achievable objective.

Jobs

Does anyone remember John Key’s so-called Jobs Summit?

This government is certainly not keen to be reminded that it once looked like it wanted to do something serious about unemployment – but alas that moment has long gone.

Now the Government’s basic message about jobs boils down to this – be grateful - it could be worse!

That is scant consolation if you are unemployed or at risk of losing your job.

And many people are rightly asking why so many entry level jobs – such as supermarket check-out operators – are being filled by new immigrants?

At a time of recession, and high unemployment, what is this all about?

What is going on? Is it because immigrants are prepared to accept low wages and poor working conditions.

Don’t our own young people have first call on the jobs that are available?

The propaganda tells us immigration is all about bringing in highly skilled people to overcome real shortages.

Really?

Look around. New Zealanders look on in disbelief and anger as basic level jobs have become monopolised by immigrants.

Or do Messrs Key and English just expect all young Kiwis to go to Aussie?

New Zealand First says a sensible exchange rate will give stability and confidence for manufacturing and other industries.

Remember our exchange rate and our economy should work for us, the people, and not for foreign exchange speculators.

And our immigration policy needs to toughen up and put the interests of New Zealand job seekers first.

Infrastructure

When it comes to infrastructure this Government is stuck in a time warp.

It has a one dimensional view of infrastructure – it is fixated on road projects.

Actually, infrastructure spending presents an opportunity to counter the downturn.

Auckland's new mayor Len Brown has said that he is determined to take action on Auckland’s transport mess.

We applaud that position. At long last we thought we might be seeing some real progress.

But the day after Len Brown was elected mayor of the Auckland Super City, John Key rained on his parade.

Mr Key pronounced that Auckland should not expect any more funding for public transport projects.

That is the sort of blinkered, witless and visionless thinking that has brought gridlock to Auckland. It does not augur well for the new Super City whatever you may think of it.

New Zealand First says central government should listen to the mayors of Auckland, Wellington and Christchurch

They are pleading for public transport investment and it is time to put the emphasis on investing in infrastructure for the future not the past.

Productivity

Timaru is at the heart of an export province

Productivity is a big and important topic. And all the evidence is that something is amiss with productivity growth in New Zealand.

So what did this government do in this critical area?

They gave the job of looking at productivity to the doctrinaire Don Brash.

The predictable result was a report that even Key and English disowned almost before the ink was dry.

It was a rehash of all the old free market mantras and nostrums that Brash, Douglas and their ilk have been peddling for decades.

New Zealand First says – let us have a proper look at productivity – honestly, openly and objectively.

There are New Zealanders eminently qualified to do the job.

Foreign Ownership

For years New Zealand First has been hoisting the warning signals about foreign ownership and its consequences.

Parts of the world are awash with capital and foreigners have been buying our strategic companies and assets without hindrance.

Most are not in the resource development business but the resource shortage business.

Already many of our significant assets – the plums – have gone.

New Zealand First asks: how can we hope to be wealthy when over 90% of our banking system is owned overseas? When so much of our sharemarket is owned overseas.

People are rightly alarmed at the loss of New Zealand land to overseas owners- and the Crafar farms fiasco brought the sell-off into sharp focus.

This alienation can only end with New Zealanders becoming peasants in their own country.

I said that seventeen years ago and sadly it is even more true today.

But where is the government on this important issue for our future?

Well - it is ducking for cover and hedging.

It knows there is deep public concern over land sales (even Phil Goff has finally got the message!) so it has promised some sort of token ‘tightening’ but the new process is still at the whim and discretion of ministers.

This is a feeble, fig leaf response.

The blunt fact is that, as in so many areas, National is dissembling on land sales to foreigners.

It has no real will – no real commitment to stop land sales to overseas owners.

New Zealand First says stop dithering while more land gets sold from under us.

Apply the strict policy on foreign ownership that New Zealand First has long pressed for.

Savings

National has a woeful record on long term issues like boosting the national savings rate.

Unfortunately the present government is no different.

Yes - it is true people are saving more. But that is no thanks to National. People know they have no option.

People are being realistic, they know there are rainy days ahead - they are spending less and saving more as a precaution.

Almost the first thing this government did on gaining office was to end payments into the Cullen Fund

The Cullen Fund is the scheme designed to pre-fund pension payments as a measure to cover the ageing population in the future.

So what do we see?

Plenty of “talk” about the need to boost New Zealand’s savings rate but no action!

Compulsory savings for retirement is now received wisdom among the gurus of pensions and savings – but remember NZ First has advocated this since the mid-1990s!

So New Zealand First says the time is well overdue to adopt our approach to retirement saving.

Conclusion

We could go on

But the point is clear - National’s record on the economy is lamentable.

In contrast – even If I say so myself – New Zealand First has turned out to be right on the critical economic issues facing New Zealand.

Events have vindicated our policies.

And there is still no sign National have anything to offer that will make a real difference to New Zealand’s economic performance

John Key may be his usual relaxed and laid-back self but his complacency ill serves New Zealand

This is just not good enough.

As a country we can do much, much better

You and I – and the whole world – know that New Zealand is blessed.

There is no excuse for third rate or third world economic performance.

We have a bountiful country.

Switzerland and Singapore are spectacularly successful economies but they have nothing like our natural advantages.

New Zealand First argues for policies that will capitalise on our many assets.

We have all the ingredients needed for a successful mixed economy:

• We have hard working, enterprising and industrious people;

• We enjoy a temperate climate – with an abundance of clean fresh water;

• We have a huge maritime zone; (as long as it is not handed to a few coastal iwi)

• We are well placed to serve the markets of China, India and South East Asia:

• We grow what the world wants - the finest food in the world.

Other countries rightly envy us. So what then is at the heart of our problem?

New Zealand First says it’s time to abandon all the worthless ideological baggage that underlies the economic thinking of the National government.

We advocate an economic policy designed on a simple foundation. - that New Zealand’s interests count as the first consideration.

It is time to stop a craven, fawning infatuation with appeasing international money markets.

It is time to stop bleating that we are helpless victims of global economic circumstances. Singapore races along with a G.D.P. growth rate of 15% whilst NZ’s leadership blames circumstances for our demise.

It is time to declare: “As New Zealanders we will decide our destiny – who comes here – who owns our land.”

In all the areas talked about today – jobs – the exchange rate – productivity – savings – foreign ownership, New Zealand has the capacity to take fresh approaches – approaches that work.

And New Zealand First offers those.

Our position is clear – the ultimate – and indeed the only - test of any worthwhile economic policy is whether it serves the interests of New Zealand.

Is it not long since time to put New Zealand First!

ENDS

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