Leader's Letter
March 2007
Leader’s Message
Rt Hon Winston Peters
A New Year With New Challenges
There may be some who will be pleased to have seen the back of 2006. But not New Zealand First. Amongst one of the politically dirtiest years in living memory, New Zealand First delivered on the policies we said we would. We provided stability as we said we would. And we enter 2007 ready to build on the hard work of 2006 with much to look forward to.
This year began with Labour focused on sustainability and National with a leader who woke up and discovered that New Zealand had an underclass (it may surprise Mr Key to know that the existence of a so-called "underclass" is hardly news to those who live in the real world).
Certainly, the greatest challenge this year lies in the economy.
While on the surface our economy
is performing well, much of this is a fa&#ccedil;ade, which hides deep fundamental structural weakness - an obsession with micro economics, while ignoring macro economics and the big picture. We cannot sustain the policy mix of a high dollar, high interest rates and a massive current account deficit and expect to have the growth we want. We never could and after 22 years we should have learnt that. We have been lulled into the false sense of security that comes when results have been average, when they should have been great.
New Zealand is hugely indebted to the rest of the world and the greatest capacity we have to remedy our situation is by dramatically growing our exports. There is a huge amount of effort going into Export Year 2007, which is a very positive New Zealand First initiative. We don’t want to see this derailed as a result of our high dollar and high interest rates. The thing about economists is that they have no imagination - they simply apply the rules and the orthodoxy they know to any given situation. Our Reserve Bank Act demands the Bank’s Governor do no different. They have given him a blunt instrument and that is all he can use. New Zealand First has long argued that the law needs to be changed to give the Reserve Bank Governor the tools to embrace a macro economic focus specifically designed for New Zealand’s economy.
We must consider the impact on growth - particularly export growth, wages and employment, as well as inflation when considering interest rate policy settings. Our conundrum of debt is not confined to the national aggregate, but is also a huge problem at the household level. Put simply too few of us are saving too little for our futures. Again - this is not sustainable.
Since 1999 superannuation funds in Australia have grown from $300 billion to $736 billion. During the same period New Zealand’s superannuation funds have fallen from $19.8 billion to $19.3 billion. And we wonder why Australians are taking over so much of our country. They literally have billions of dollars floating around looking for investments, often here in New Zealand.
In 2007 Parliament must show leadership on this issue. We are now in a position where we have no choice - we must have compulsory saving and New Zealand First will be fronting that issue this year.
There are many other pressing issues which New Zealand First will seek to advance.
While we have welcomed the progress of the changes to immigration laws, we still have huge question marks over the policy and implementation of policy within the immigration system.
We must confront our deteriorating health system - we do not have the first world drugs or first world waiting times or in some instances even the first world emergency care that we deserve. This is not just about more money - it is also about a behemoth of bureaucratic dysfunction.
We have reached a crisis point in addressing law and order. The old adage says that if it isn’t broke then don’t fix it. Well our corrections system is broke and it needs fixing - and urgently. New Zealand First has done its part in bolstering police resources, but we need to change attitudes.
New Zealand First will continue to champion the cause of our seniors. August will see the Supergold Card delivered to our seniors - a long awaited and exciting development. And well before that, superannuitants will have received a more generous annual adjustment than would have been the case without us.
We in New Zealand First hope 2007 will see the further maturity of MMP politics. New Zealanders deserve better and New Zealand First will be on the case.
It is now two years until the next election. There is still much work to be done - both by the caucus and the wider party. We must all work together in preparation for 2008. Our track record of delivering on our policy platform is a good one. But we cannot afford to rest on our laurels and will need a new platform in 2008. That challenge lies ahead of all of us.
Rt Hon Winston Peters
LEADER NEW ZEALAND FIRST
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