Nation building with the unions and Maori

Just been watching Bill English's TVNZ7's programme on the economy.

Skills and innovation are what is needed to build the New Zealand nation and make it successful.

Increasing productivity is the key. It is known we are sadly lagging behind the likes of Oz in the productivity stakes. Infrastructure development plays a big part as do more value added export products. Hard decisions need to be made by this government, not populist decisions.

Unfortunately we have the likes of unions (CTU Helen Kelly and EPMU stiff present on show) looking to increase productivity by giving the unionised a general wage order to equal Oz wages. Union thieves demanding high wages is why we currently have such poor productivity.

Then we have the Maori element (TPK Pauline Kingi and a 'Maori' accountant) suggesting that to be successful, New Zealand has to keep funneling taxpayer money via grievance industry settlements and racist sweetheart deals like that we are about to see this week on carbon trading and RWC broadcasting coverage. As if any of that helps lift productivity.

Most participants were cornered on agreeing with some form of property or land tax, without showing any conviction on the matter.

One very strong theme was that government spending is out of control, causing inflationary pressures because we have to borrow overseas. Some talked of raising GST and lowering income tax. IRD's John Whitehead had some really good ideas for the government. Never ever any talk of shooting the elephant in the room. Stopping the gigantic bureaucratic spend and paying down household debt down is the only way to free money up.

Throwing a bigger wad of taxpayer money in does not lift productivity. Nor does catering to racist element. Nor does forced saving.

Another strong theme was most on the show were enablers from big value firms who did little to help the 12000 plus SME mum and dad ventures that make up the bulk of of our economy.

Excellent hosting, Corin Dann. An enjoyable programme that highlighted exactly those who are pulling in the right directions and those that have their hands out.