Growing the smart green economy
While economic data suggests that the economy is doing well, the reality is that the foundations are shaky, propped up by a dairy price bubble, the Christchurch re-build and house price speculation. This is shown in our persistent trade deficits over the past twenty years - the New Zealand economy is not paying its way in the world. As a result, interest rates are high and more and more of the economy is overseas-owned. We are living beyond our means.
A major problem has been the lack of a clear strategy for economic development. Even though the government set a target for exports to reach 40% of GDP by 2040, the latest data shows exports at the lowest ratio for 25 years. We are not paying our way in the world.
New Zealand exports remain highly dependent on the export of a few commodities, notably dairy products. Most of these commodities, like milk powder and logs, are not processed here to create value and jobs, and commodity prices are volatile, as we have seen in the halving of dairy prices in recent months. Our economy shares the commodity-dependent characteristics of low income developing countries.
New Zealand needs to make a transition to becoming a smart economy, but our spending on research and development is amongst the lowest in the OECD, and there has been inadequate support for vocational training in the sciences, engineering, manufacturing and IT. Meanwhile, most capital investment has gone into housing and speculation, reflecting the lack of a capital gains tax to provide a level playing field for investors in the productive economy.
The latest report from the Technology Investment Network shows that the technologyintensive sectors of manufacturing, information technology and biotechnology are reviving after a long period of decline, and grew by 2.3% last year. But this marginal growth has occurred from a low base. Far more urgency and focus is needed if New Zealand is not to fall even further behind other countries.
We also need to make the transition to a green economy, and to benefit from the major changes that are sweeping across the world. International business is waking up to the challenges of sustainability and New Zealand business is ideally placed to benefit. A greener economy taps into the growing market for clean technology, builds our international brand as a clean, green country and protects our
environment.
But the government is neglecting action on climate change, promoting polluting industries like mining and deep sea oil drilling, and pushing more dairy production on marginal land. This is the pathway that neglects the need to transition towards a knowledge-based economy and destroys the environment that is essential for our quality of life and future economy.
There is a better strategy. The Green Party has consistently advocated for a smarter greener economy. This can create better opportunities, and Indian communities in New Zealand are particularly well placed to lead and benefit from these opportunities.
The Green Party have proposed more funding for innovation and investment in clean technology, tax credits for research and development, cheaper broadband access and support for universities to strengthen our ability to participate in the rapidly growing knowledge economy. A smarter and greener economy can provide jobs and opportunities. The Green Party would welcome engagement with the Indian community to achieve this vision.
Barry Coates was a Green Party candidate for Mt Roskill and narrowly missed out on becoming an MP.
While economic data suggests that the economy is doing well, the reality is that the foundations are shaky, propped up by a dairy price bubble, the Christchurch re-build and house price speculation. This is shown in our persistent trade deficits over the past twenty years - the New Zealand economy...
While economic data suggests that the economy is doing well, the reality is that the foundations are shaky, propped up by a dairy price bubble, the Christchurch re-build and house price speculation. This is shown in our persistent trade deficits over the past twenty years - the New Zealand economy is not paying its way in the world. As a result, interest rates are high and more and more of the economy is overseas-owned. We are living beyond our means.
A major problem has been the lack of a clear strategy for economic development. Even though the government set a target for exports to reach 40% of GDP by 2040, the latest data shows exports at the lowest ratio for 25 years. We are not paying our way in the world.
New Zealand exports remain highly dependent on the export of a few commodities, notably dairy products. Most of these commodities, like milk powder and logs, are not processed here to create value and jobs, and commodity prices are volatile, as we have seen in the halving of dairy prices in recent months. Our economy shares the commodity-dependent characteristics of low income developing countries.
New Zealand needs to make a transition to becoming a smart economy, but our spending on research and development is amongst the lowest in the OECD, and there has been inadequate support for vocational training in the sciences, engineering, manufacturing and IT. Meanwhile, most capital investment has gone into housing and speculation, reflecting the lack of a capital gains tax to provide a level playing field for investors in the productive economy.
The latest report from the Technology Investment Network shows that the technologyintensive sectors of manufacturing, information technology and biotechnology are reviving after a long period of decline, and grew by 2.3% last year. But this marginal growth has occurred from a low base. Far more urgency and focus is needed if New Zealand is not to fall even further behind other countries.
We also need to make the transition to a green economy, and to benefit from the major changes that are sweeping across the world. International business is waking up to the challenges of sustainability and New Zealand business is ideally placed to benefit. A greener economy taps into the growing market for clean technology, builds our international brand as a clean, green country and protects our
environment.
But the government is neglecting action on climate change, promoting polluting industries like mining and deep sea oil drilling, and pushing more dairy production on marginal land. This is the pathway that neglects the need to transition towards a knowledge-based economy and destroys the environment that is essential for our quality of life and future economy.
There is a better strategy. The Green Party has consistently advocated for a smarter greener economy. This can create better opportunities, and Indian communities in New Zealand are particularly well placed to lead and benefit from these opportunities.
The Green Party have proposed more funding for innovation and investment in clean technology, tax credits for research and development, cheaper broadband access and support for universities to strengthen our ability to participate in the rapidly growing knowledge economy. A smarter and greener economy can provide jobs and opportunities. The Green Party would welcome engagement with the Indian community to achieve this vision.
Barry Coates was a Green Party candidate for Mt Roskill and narrowly missed out on becoming an MP.
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