Jun 30, 2008

NZ Productivity A "National Disaster"

We have been saying this for ages so it is good to read confirmation in today's Dominion Post.

Good on Kerry McDonald for speaking the truth (a fault that cost him the Chair of the Australia-New Zealand Leadership Forum) and good on James Weir for writing the article.

New Zealand's low productivity is a "national disaster", according to professional company director and former Comalco managing director Kerry McDonald.
The Labour Government's climate-change policies are also "a very high risk to the economy", he believes.
Productivity was "disastrously low" and growing only slowly, limiting household incomes, international competitiveness and living standards, McDonald said in a paper, outlining his "personal views".
Handicapped by "ineffective economic policies", New Zealand's economic performance was unacceptably weak and it was being marginalised by a globalising, rapidly developing world.

We too are worried about the impact that the proposed emissions trading scheme could have on our already poor productivity performance. The mere threat of this policy has put many investment decisions on hold.