Posts tagged ‘IT’


In the wake of the ’quake, a time to be bold

06.03.2011

The Christchurch earthquake is certainly not over, not while the city rebuilds. And the bill, at a meeting I had with some other luminaries last Thursday, is estimated to be in excess of the NZ$20,000 million that the New Zealand Government predicts.
   So, other than juggling the funds, what does the Government intend to do?
   Because for the last decade or so, I cannot see anything from either major party that has fundamentally encouraged the New Zealand entrepreneur to build an international enterprise, nor can I see anything that shows me that the government of the day understands that we face an ever widening gap between rich and poor as foreign-owned companies’ profits go offshore.
   Yet if both major parties are so intent on the idea of global trade and this so-called level playing field, then why has New Zealand always buried under it? It’s not level when our best firms become subsidiaries of foreign corporations, and our innovation makes our innovators very little money.
   A truly level playing field would have seen more Kiwi companies acquire overseas ones—and I don’t mean solely in the dairy sector. Only then can the free-trade pundits claim success in raising real GDP and standard of living for New Zealanders.
   If the bill runs into the NZ$60,000 million region that we bandied about, then those funds have got to come from somewhere. Selling more of the family silver or shifting money around a limited pool aren’t going to cut it. We know this from the post-1984 experience.
   While the world has a demand for intellectual capital, and products and services that are based around the sort of innovation that New Zealanders are well poised to deliver, it’s still astonishing that this sector contributes under 10 per cent to our GDP. It should be doing twice that.
   It should have been grown a long time ago, certainly since the late 1990s when I had begun banging on about it.
   I certainly wasn’t the first, not by a long shot.
   Any effort like this must be coordinated, as any venture: both private and public sectors need to be geared to this reality. But the Government acts as though it doesn’t matter if we keep slipping behind, or if we get locked in to industries as a result of TPPA.
   Singapore might not be perfect politically—as Mr Brown’s blog details—but there is much to admire about its willingness to embrace intellectual capital as a means of economic growth.
   The negative growth we have had over the last few years—and Labour’s complacency during the good years before that—is going to lead to a credit crisis in the future, no matter what the credit-rating agencies say. The earthquake as only hastened this date.
   It’s not unbridled growth I’m talking about here. I am referring to us getting our fair share of the pie rather than ‘make the pie higher’, with the independent thinking I have seen New Zealanders being capable of, time and time again.
   When I was asked on Thursday what I expected to see, I answered: (a) strong New Zealand-owned businesses that are globally oriented; (b) cooperation between public and private sectors on innovation; (c) a real understanding of a level playing field—which does not mean furthering the technocratic agenda, which, ultimately, decreases the potential tax take any government could have to fund social services.
   It’s a long-term plan, and for me, Wellington could have served as a microcosm of what is possible.
   Under Mayor Wade-Brown, it still can, and she has certainly stated on a few occasions that she has a desire to see the tech sector grow in this city. It’s a start.
   And now is not a bad time to start on this course, because Christchurch is going to take us years to rebuild and to pay for.
   If only we had vision on the national stage. Now is, Prime Minister, the right time to be bold, and work for the interests of New Zealand once more.

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Posted in business, leadership, New Zealand, politics, technology, Wellington | 2 Comments »