Wednesday, April 22, 2009

Cul len de sac



Fran O'Sullivan says it all


What the OECD has prescribed is not radical New Right theory, nor is it a
neo-liberal prescription, nor is it the line-up of usual suspects, or any of the
other Pavlovian responses which jump up whenever outsiders attempt to forge
debate on just how New Zealand's lagging performance might be enhanced to get
ourselves out of the cul de sac into which the Labour Government parked the
economy.

All the Paris-based organisation has done is come up with solutions to
some of New Zealand's short-medium term fiscal problems such as cutting
spending, selling mature assets to reduce debt and free up capital for new
investment, and increasing the revenue line.

This is bog standard stuff for New Zealand companies right now as they get
their balance sheets into order to withstand the international recession. Why
should it be any different for Governments if they are to match the
international norms necessary to attract top-flight investment capital and
secure the retention of our own best companies and talent?

Labour's cul len de sac. It wouldn't be so bad if he had parked up a Rolls Royce but all we've got is a clapped out Corolla, with bald tyres, on tick to a finance company. While the driver has hitched a lift with a NZ Post truck and dun a runna.

5 comments:

James said...

not radical New Right theory, nor is it a
neo-liberal prescription
more's the pity!

mawm said...

I laughed at the cul de sac comment and immediately thought that it will find its way into the Kiwi lexicon.

It is a good piece by Fran, and I hope Key reads it.

Anonymous said...

So let's look at this:

Neither Key ... nor English are prepared to say outright that the two next rounds of personal tax cuts may have to be shelvedright. because what she doesn't get is that these tax cuts absolutely must be maintained. They are non-negotiable! In fact that must be increased: I'd go for a 10% tax rate over say 100K and - and 0% over 200K.

a majority would rather shelve the next rounds of tax cuts if it involves further borrowing.Fran is right that tax cuts must not involve borrowing. We must cut hard and fast - meat not mythical waste! - to get our books and current account deficit into balance.

homepaddock said...

It wouldn't have been so bad if they hadn't laid land mines behind them as they drove into the cul de sac either.

Adolf Fiinkensein said...

Lou, that is very very VERY good!