NEWSLETTER: Key Notes No. 21

19 Comments
24 October 2007
NEWSLETTER: Key Notes No. 21

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It’s great to have my feet back on New Zealand soil. I spent last week in London and Dublin (click for video), meeting with government ministers, opposition politicians, and business and other groups.

I also spoke at several functions. The UK branch of the New Zealand Institute of Chartered Accountants organised a large get-together of New Zealanders living in London. Their branch has over 2,000 members, which illustrates just how many talented Kiwis are working in the United Kingdom.

Meeting opposition leaders

The highlight of my visit was meeting my counterparts as Leaders of the Opposition – David Cameron from the UK Conservative Party, and Enda Kenny from the Republic of Ireland’s Fine Gael.

The three of us have a lot in common. We are broadly centrist in our thinking, we are ambitious for our countries, and we face opponents who have been in office for many years.

Personal relationships can really boost relations between countries, and getting to know the senior political figures in other nations is an important part of my job.

Last week was the third time I’ve met David Cameron – the first was when we were both backbench MPs. We’re keen to build a lasting personal relationship and we intend to stay in touch.

Looking at Ireland

I’m always struck by the similarities between New Zealand and Ireland. We are the same size in terms of population, and we are both green, hilly, and have strong agricultural economies.

There are differences too. Ireland is also more prosperous than New Zealand. That hasn’t always been the case. Just fifteen years ago, the Irish and New Zealand economies were on a par. We were both poor performers compared to other developed countries.

Nothing much has changed in New Zealand. But Ireland has gone from being one of the poorest countries in Europe to being one of the wealthiest. It’s done this by adopting policies that encourage business growth, improve the skills of its young people, and entice Irish people all over the world to return home to live and work.

The lesson from Ireland is that countries can turn themselves around if they are determined enough. It’s a lesson New Zealand would do well to learn.

John Key

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#1 - Jennifer Hutson 2007-10-24 13:07 - (Reply)

Keep up the good work John, we desperately need a National Government. The difference between the parties for me is that National is for personal responsibility and Labour is nanny state. NZ'ers need educating to take responsibility for their own actions - it is too easy to wait for a handout from "the government" or somebody.

#2 - David Williams 2007-10-24 13:45 - (Reply)

Dear Mr Key, I am delighted that you have had the chance to visit Ireland for yourself to see the changes that have taken place there over the last couple of decades. I was priviledged to be part of a study trip there whilst sitting for my MBA at the University of Waikato (School of Management, NZ's no.1 Management School) in 2004. One of the most significant lessons that we learned was how NZ could turn ourselves around as easily as the Irish did, just so long as the Government supported business development with real practical help e.g. proper innovation centers, cluster support, appropriate tax breaks for investment and research etc, upskilled the workforce and made it worthwhile for expats to return, e.g lower personal taxes. A big difference there of course was the proximity of the EU markets and EU subsidies which helped pay for the growth, but with the current global economy, I can't see that being too big a problem for us here. There was a flip side to the Irish success, they did suffer increased social distress, (increased teen problems, isolated elderly and breakdown of local communities as new money flooded in), but so long as the National Party takes on board those lessons, I can't wait to see what you can do for us when you get into power at the next General Election.

#3 - Sue Shepherd 2007-10-24 13:55 - (Reply)

John they also had a lot f money from the UE This support gave them an enormours boost!

#4 - David Linton 2007-10-24 14:54 - (Reply)

Great to hear you enjoyed Ireland. Although there has been a great spin off economically for the 'Celtic Tiger', there has been a price to pay for this, as I am sure you are aware. Inflation has affected the standard of living for many people, especially the poor, although the 'new rich' are doing very well. I would not agree with your assertion that New Zealand has remained relatively static in the last 15 years. We have had great growth, both economically and socially. It would be sad to venture into 'David Green' type liberalism that you and your party envisage. Although I support your desire for political change, I believe that even the policies that Ireland adopted (to encourage change) are outdated.

#5 - Allan Que 2007-10-24 15:29 - (Reply)

As per your newsletter regarding Ireland encouraging investment for economic growth, I believe NZ has a policy for business visa which requires investor to put in so much money to help create employments. However, (don't quote me on this) I read somewhere in the internet, there are some unscrupulous immigration consultants encouraging investors to put in their money into the bank for short term time deposit. Once, the so-called "investor" got his Permanent Residency, he is tutored by the unscrupulous immigration consultants to turn over his money to another person or his relatives to apply for business visa and this cycle keeps on circling. And no employments were created. Only easy visas were given out. I hope your office can take a look into this matter if this is true for NZ immigration.

#6 - David Vinsen 2007-10-24 15:36 - (Reply)

A good newsletter. Exactly the positive, aspirational attitude we need in Government to enable us to drive forward.

#7 - Vicky Duggan 2007-10-24 16:22 - (Reply)

You are right. This country is in need of a huge turnaround. The incoming Government (National) needs to support Business and promote development and export. Everything is China this and Chinia that. I avoid buying goods made in China if I can. Expecially food items. I know of a company who had a multimillion dollar opportunity and got the contract but could not afford the bond required. The labour contacts could not help with any support, so the contract was lost. This contract would have required a huge amount of extra Labour. The government would rather pay out by way of hundreds of thousands of dollars in benefits to people who have time for theft and voilence. You have my vote John

#8 - Anne Rennie said:
2007-10-24 16:37 - (Reply)

David Williams answered my question. I really don't care if the wealthy get wealthier if the poor get poorer. Why is our political system stuck in a never-ending cycle of 'nanny-state' to social distress. If NZ can be at the forefront of the world, it should be in devising an economic system that serves the people and not the other way around. I don't want Labour back in but I do want a sensible, compassionate society that serves the interests of every citizen, not just the few who want to or are able to acquire wealth. Come up with some different ideas, which do not include privatisation, increasing doctor's bills, etc. and I may vote that way. Make solar power/water heating a mandatory component of every new house built instead of bleating about climate change and power. Spend government money only on what serves all the people or ensure that the money that is spent does serve all the people. I will not deliberately choose to increase social distress. NZ social statistics are already a disaster and we should be ashamed at our irresponsible and unfeeling lack of care that sees our children and our elderly become ever greater social casualties, rapidly spreading to the people between those groups. It is not the people at the bottom causing these problems or providing the bad role models. Use your talents and positions wisely for the people, not for the politics, power or testing of economic theory.

#9 - Tony Connell 2007-10-24 17:28 - (Reply)

Mr Key, I applaud your desire to look at other countries as a means of finding a better system to improve NZ. Ireland is a good model for general comparisons but I would not follow ther model slavishly. We need to encourage our talented people (of all ages) to remain here in NZ to help improve our country. We also need to encourage the many talented expatriate kiwis to return home as well. Then & only then should we look to bring in skilled immigrants who have a genuine desire to give something back to their new country. Other correspondents have mentioned the "nanny state" - we must develope a culture of responsibility & accountability across all sectors of our country & stop this belief that "the world owes me" that seems to be so prevalent amongst so many kiwis at the moment.

#10 - Paul Berkahn 2007-10-24 17:56 - (Reply)

It is absolute paramount importance that priority is put on the economy and building a powerhouse economy. There is a trickle down effect that benefits all. There should be no argument to this. So far there has been much talk about Ireland's successes and little actions and plans rolled out for NZ. What about: * Lowering of interest rates by 4-5% (the housing market may boom and then bust, it will self correct) * Tax breaks for exporters * Tax breaks for R&D * More controlled approach to exchange rate- smaller fluctuation * More regulation that ALL business must have NZers own a greater proportion of ALL businesses in NZ (retain profits). * Greater Gov'mt control of Utility Companies to keep low cost efficient supply and reinvestment in infrastructure It will be a real shame if this election is built around "selfish voters" wanting a quick gain from Labour party election bribes. It is also my belief that the vast numbers of middle New Zealander's leaving this country are mostly leaving for economic, polictical (lack of management of economy) and racial reasons The Labour Gov't only want to create a large group of dependant, institutionalised workers relying on Gov't hand outs rather than tax breaks. This is a fantastic country but the Socialist Labour Govt is spoiling it very quickly and it is very disappointing to see. Love to see some National action in these areas.

#11 - Les J Hole 2007-10-24 18:04 - (Reply)

Obviously, Ireland as a nation have developed goals that have been accepted by the majority. Part of these goals I have no doubt, include details of the self discipline required from all participants, to ensure all desired national goals are achieved... Our nation has to first understand: 1. Nothing is provided for free... And if it is, it has been stolen from others, usually by the state... 2. Rewards are not instant... They take work and directed effort from all participants... Essentially, No work = No reward! 3. Building a caring society means treating others the same way you would want to be treated... Not pandering to the lazy or ignorant, who continually look for handouts with a "Its my right" attitude rather than recognising "its my responsibilty..." Can we do it? Are we capable and skilled enough as individuals and a nation ? Do we have the required self discipline? The Irish did and have! So can we! Les J. Hole

#12 - Philip Sulikosky 2007-10-24 20:06 - (Reply)

Mr Key, You are right in that we need to be forward thinking and innovative if we are to prosper as a country. Problem is that recent policy announcements, or was it market testing??, Sounded like more of the same policies that really have not served NZ well. Our communications and transport infrastructure is truly heading toward 3rd world. Telecom has emptied the cupboard and they are not going to make the investment required to get NZ back to the real world. Let’s not even mention our rail system. Oh yes, privatising the power distribution and generating has been a great success hasn’t it, ask anyone in Auckland when the lights go out nest time and they will. Forget about privatisation and inflation causing tax cuts, deal with the real issues like why we like to sell houses to each other and think it makes us rich; while our children just get their futures mortgaged by huge external deficits. What about the housing they can’t afford and jobs that pay much less than overseas. Why we are penalized when we save money? Why education costs a fortune for young families and is effectively stratifying an new generation of under resourced under educated children? Why are businesses expected to be free collectors and administrators of gst, fbt, PAYE, student loans, bear the real costs of maternity leave (in terms of disruption re-training of staff) now kiwi saver? I am reaching the point where I will exercise my democratic right not to vote at all unless I am inspired by real forward looking, empericallcy based policy. Not the same old tired slogans and failed policies from the past which is what I have been hearing from nats and labour. Honey moons over Mr Key, start talking sense instead of slogans, we are listening but not for much longer.

#12.1 - slogan 2008-03-12 18:15 - (Reply)

Hey do you know the national parties slogan?

#13 - D. Beauchamp 2007-10-24 20:52 - (Reply)

I also think we have a lot to learn from Ireland. Ireland's visonary investment in education, and policies to entice business were based on long term gains which has proved very rewarding for them. NZ needs some of the same visonary thinking if it is too succeed.

#14 - David Gray 2007-10-24 21:21 - (Reply)

Having spent 6 mths looking hard at Ireland, Point 1- the EU just poured massive monies into it for at least ten years. Who is going to be our huge donor? Point 2 -Ireland had majored on education prior to this godsend so they were able to handle top new skills when the capital was provided. Point 3- European market on their doorstep. Sure we can do it but we are not really in a similar position to start with.

#15 - CVhris Sides 2007-10-24 23:16 - (Reply)

I'm glad John visited Ireland. Most of its new wealth came not from the efforts of the Irish but from gigantic (EU) subsidies to agriculture and tax breaks for foreign firms - plus no fees for tertiary education. How many of these are on John's agenda ? PS - It is Fianna Gael

#16 - Deb 2007-10-25 10:56 - (Reply)

Congratulations Mr Key finally somebody has noticed that New Zealand can take a leaf out of another countries book ie;. Ireland's move ahead - please put your money where your mouth is and move New Zealand forward - yahoo finally we have common sense back in our parliment.

#17 - FRANK lOUGHLIN 2007-10-25 15:46 - (Reply)

You all have SOME good points to make for our country, but if a building has good foundations it will stand. So start at the bottom and work up, it would seem we have been working from the middle for years and it aint working. Set us free from the dammed bureaucrats and their rules etc , put in transaction tax, and stand back. Or is that too much FREEDOM for the people. Frank

#18 - Rimu 2010-11-23 13:48 - (Reply)

Ireland is not looking so hot now, is it? I wonder what lessons John Key has learnt from recent events, if any.

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