Oram on the Economy

Rod Oram has some criticism for both National and Labour in his SST column.  First he gives praise to Labour for some of their economic policies:

Its achievements include the development of real understanding of New Zealand’s opportunities in a very fast-changing world economy; some programmes to help businesses and regions realise those; well-executed trade policy; rebuilding of vocational training; sensible regulation at last for telecommunications; a big increase in infrastructure spending; and a coherent energy and climate change policy framework.

But he also points out the shortcomings:

But its shortcomings are numerous too. They include a fiscal policy that is likely to become more not less stimulatory; reluctance to strike a better balance between spending and taxing; deepening bureaucratisation of health and education; refusal to embrace new ways to deliver services and investment such as greater roles for the private sector; and some cautious or muddled policy development and execution.

He then looks at National offerings:

On paper, the MPs on National’s economics team should be articulate and insightful on the global economy: Key and Craig Foss were successful in international capital markets, Tim Groser was a leading international trade negotiator, Simon Power and Bill English (a former Treasurer) represent farming constituencies and Lockwood Smith (a former trade minister) is a farmer.

But so far their output has failed to get beyond the generic and obvious about tax and regulation, useful issues in themselves but insufficient to change the direction of the economy. Two examples of their thin offerings were English’s five-point plan to National’s party conference last August and Key’s eight-point plan in his state of the nation speech this past week.

Hopefully, though, the full caucus started to do some more work on economic issues in its meeting in Rotorua in recent days. And hopefully English and Key will start giving more and better speeches on the economy as they try to make the case they should be New Zealand’s next finance minister and prime minister.

I think the economy will be a key issue this year, and indeed National do need to rise to the challenge from Oram and clearly articulate how their policies will be better, apart from the already acknowledged tax cuts.

Infrastructure investment especially is an area which presents some opportunities.