As another year winds down and everyone wonders how fast 2009 has whizzed past, it is time to take stock of the past twelve months and look forward with a sense of anticipation as we enter the tenth year of this century.
This has indeed been a difficult year for the world as also for New Zealand, following the global financial meltdown. It was a difficult time for any new government to take on the reins of the country, especially so after an almost decade long rule by another party that left the country’s coffers dry as it exited the corridors of power.
The National Party came to power at such a trying time riding high on the hopes of Kiwi voters who swept it into the Beehive on a popular vote. One year later the opinion polls show that the National government’s popularity is still high, though there is a steadily growing body of people who think it could have done more in these past twelve months given the popular mandate it had.
There has been little action on the more substantial promises that were made and the government has given the impression of focusing more on the incidentals. We are yet to see a single bold measure to kick-start the economy – something that has been needed even long before the global financial crisis unfolded.
New Zealand has been steadily slipping behind not just Australia but most of the developed countries in the OECD list and our vulnerabilities of being a small country with declining exports and with one of the most highly traded currencies and an almost unsustainably ballooning debt are beginning to look overwhelming as each week passes.
Other longstanding problems that need quick resolution are the country’s taxation system – to speak nothing of low wages – and the political hot potato of the social benefit system that has become the monster it is today because of poorly-reasoned social engineering theory. Few countries have such a lax and unjustifiably generous benefit system that is open to widespread abuse at the expense of honest, hardworking tax payers.
Ideas to correct these have been thrown around and discussed at length but there has been little political will shown by the government so far, with greater inclination and urgency shown toward assuaging concerns of its political allies like the Maori and Act parties.
Whether it is the strong anti-incumbency factor against past Labour governments or just the wish to give the National Party and Prime Minister John Key a fair chance and a long rope, the latter’s popularity remains largely undiminished even one year after the elections.
But it is not likely to remain that way for long. The time for action is now – before the growing feeling that this is a ‘do nothing’ government snowballs into disillusionment with it. The time for action is now and the prime minister knows it. He has indicated that there will be action in the New Year. His government must act decisively leveraging this popularity.
Early next year, among other things, the taskforce on taxation will submit its report. Broad-basing the tax system is urgent. So is reforming the social benefit system that is so open to widespread rorting, which successive governments have refused to deal with by simply looking the other way. Boosting productivity and exports is equally important. These are all linked and if pursued with purpose and seriousness would put more money in Kiwi pockets while raising their standard of living.
But to achieve that, strong political will is necessary. Of which we have not seen much in the past twelve months. Actions taken in the first quarter of the next year will determine the future of Prime Minister John Key’s government. If the slow, dithering attitude of 2009 continues into next year, the going for his party in the run up to the 2011 polls will increasingly tougher. And New Zealand will continue slipping down the OECD indices with more and more Kiwis fleeing overseas as the global economy bounces back.