Jul 1, 2008

Kiwirail Makes Economy A Snail?

We can't help musing about the irony in reading Anthony Scott's bold vision for increased investment in science and research (see below) on the same day as the Government is celebrating the nationalisation of the railways, using a technology that was proving itself somewhat outdated at the turn of the last century. Will the purchase of the railways really enhance productivity throughout the economy and encourage growth and innovation? Or will is see scarce resource that could be devoted to Anthony Scott's vision gobbled up by an investment that never provides a good rate of return?

This was a sad populist policy totally out of sync with the growth and innovation, knowledge wave, economic transformation image it is trying to present to the electorate. We will certainly be avoiding today's celebrations at the Wellington Railway Station.