Peter Osborne

Open Letter to the Prime Minister

Dear Prime Minister

Regarding your plans to assist the people of Christchurch, following last week’s earthquake.

I am writing to you in an effort to have you stop and think before you pursue, what seems to be heading for another bailout. Please use the results of the last but recent bailouts on which to base your judgement. Rather than go into detail I ask you to accept that they were less than adequate and have left everyone saddled with a higher level of hardship. You are free to disagree but that is fine. That is not the object of this letter. Rather, I would ask you to at least consider an alternative approach to dealing with the many and substantial problems that Christchurch is yet to face.

To understand the approach I wish to alert you to, I will start by listing the big problems as I see them.

*$20 billion in damages with $15 billion covered by insurances and the Earthquake and War Damages fund.

*Reconstruction on long term, highly volatile land.

*An exodus of citizenry.

*The collapse of business and industry.

*Long term, high levels of anxiety and depression of population.

* An inability to attract investment both national and international.

*A national issue of a struggling economy with households facing higher living costs across the board.

Many of these are problems that will not be solved by throwing money in. This is a unique situation and if it is not treated with a properly defined and a failsafe plan it will absolutely fail and New Zealand will sink with it. I cannot emphasise the severity of outcomes if this is approached without a better plan than bailout.

Christchurch or preferably Canterbury should be declared an “Enterprise Zone”. This means;

* It should be given a tax free status for 3 years with discretion to extend the time period. This will serve to attract finance from NZ and internationally without draining the rest of New Zealand by coercive means. It also serves to not only reduce the number of people leaving Christchurch but also to attract other people in and to provide badly needed employment opportunity.

*Building permits, regulations and inspections should no longer be a requirement. People should be permitted to build whatever they like on their own land subject only to agreement with insurers. Also the city centre and suburbs must be allowed to rebuild spontaneously without the interference of planners, and with the guidance only of simple common law principles of property and privacy protection (rights to light, air and support and so on) which can be very easily and swiftly codified. This will allow individuals and families to rebuild their lives without unnecessary delay. We must trust that people are the best judges of their own well being and affairs. In order to instil a sense pride and enthusiasm in their city, Christchurch will need a different approach that provides them with an identity that is unique and is an example to the rest of the world. Without this, the enthusiasm required to offset the despondency that we will surely see otherwise will not occur. If central planning was removed allowing rebuilding to occur spontaneously, a door will open giving creativity and innovation a chance to flourish. The removal of a building code will allow engineers and architects to experiment freely with new building techniques and products. It would also encourage genuine interrogation into building on earthquake zones. Christchurch could very quickly find itself a leading pioneer in construction innovation and design.

*Fuel taxes, the RMA, and the ETS should be removed entirely. These are unnecessary burdens that drain wealth and energy away from where it is needed.

* Remove the minimum wage. In a situation like Christchurch’s it is better to be earning something than nothing at all. And it is better to be achieving something with available resources than nothing at all. We must trust that consenting adults can come to their own financial agreements. The object is to attract industry. A minimum wage and in fact our current employment laws are a deterrent.

As far as I can see, this is the only viable approach to effectively tackle Christchurch’s and New Zealand’s current dilemma. It would be a bold move but the alternatives don’t bear thinking about.

I would also ask you to consider the national exodus across “the ditch” that has quietened since your government was formed but will certainly accelerate as never before if New Zealanders are faced with the burdens that will incur with a bailout.

I have written this letter with good and productive intention. It is asking that your government take a step back and allow New Zealanders to find their way through this grave situation without coercion and with the maximum level of freedom and opportunity required to succeed and in fact flourish. This is subject to a government who is prepared to release the reins and allow citizens to show their mettle.

The world’s eyes are on us.

Kind regards

Peter Osborne

ENDS

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