Bold action plan needed to grow a bigger 'economic pie'

The New Zealand Chamber of Commerce wants the incoming government to work with business organizations to design a compelling set of goals and targets to grow a bigger ‘economic pie’.

Businesses are the engines of New Zealand’s economy. They generate most of New Zealand’s wealth and jobs.

“With a population of only 4.4 million but wanting to enjoy first world health, education and welfare services, it is essential that New Zealand increase the size of the ‘economic pie’ in order to pay for these, increase productivity and meet the demand for quality jobs,” said Michael Barnett, spokesman for the New Zealand Chambers of Commerce.

Past goals such as getting per capita incomes into the top half of the OECD by 2010 or closing the gap with Australia by 2025 mean little in themselves without credible steps and targets to achieve them.

“What is needed is a growth roadmap that every New Zealand business can easily understand and be enthusiastic to help achieve,” said Mr Barnett.

The uncertainty and slow growth in the world economy doesn’t excuse us from doing better. We have many innovative businesses with potential to grow, and on a world scale we are so small that we can develop niche opportunities in the growth economies of Asia, as some businesses are doing. Some smaller economies of comparable size to New Zealand are also doing relatively better.

To lift our overall game, it is critical for businesses to be confident that our government is pulling out all the stops to strengthen New Zealand’s economic fundamentals, concluded Mr Barnett.