When interviewed by Heather du Plessis-Allan on Newstalk ZB yesterday, Finance Minister Willis said, "And I'd like to put this out to Robert MacCulloch: if he has more ideas on how we can drive competition in the NZ economy, to break up some of these duopolies that are making too much money out of New Zealanders, then I am up for those ideas". I've already done so. Her National Party rejected them. Despite knowing some of her colleagues, who've asked whether she'd like to meet to me, she never did. Why not?
She already has an inner circle of old-school advisers. Who are they? Matt Burgess for one. He was Bill English's economic adviser ten years ago. By the way, English had an Academic Advisory Group, when he was Finance Minister, which included me. Willis dumped it. Her adviser outside the Beehive is the NZ Initiative, which is where I first came across her, and Chris Luxon as well. I'm no lefty critic of the Nats - I represented one NZ's richest families at the Initiative, who told me "not to take crap" from the other members.
The Initiative is a lobbying group for our biggest corporate monopolies. Its board includes Scott Perkins, who I remember from my old school days. He's a Non-Executive Director of Woolworths. Another Board member is Chris Quinn, who is Chief Executive of .. Foodstuffs North Island. (I suppose he'd prefer that to be "NZ", not "North Island"). Barbara Chapman, another Board member, is former Chair of one of the Big Banks. Can you believe it? This is the Board of the outfit who our Finance Minister takes advice from about how to break-up monopolies? Fletcher Building is a member of the Initiative. I was there around 8 years ago when Key was PM and the CEO of that company, an English guy, lectured me how NZ's infrastructure was amazing and not in need of any significant repair. Air NZ is a member. ANZ is a member. Matt Burgess, the PM's adviser, was "Senior Economist" at the Initiative.
So Finance Minister Willis, my first recommendation is to replace your advisers with ones who do not represent the interests of the biggest monopolies and duopolies in NZ.
A second recommendation is to go back to my 40 page article - joint with Sir Roger Douglas - that has been published in leading outlets in Washington, London, Germany and NZ about how our health system, which runs the biggest monopoly in the country courtesy of Health NZ- that is, a "single supplier" model of public health-care delivery - should be reformed to enable private health-care suppliers to provide over half of all our health-care services. Every Kiwi, regardless of income, should be able to choose provider, whether public or private, in consultation with their GP, with the bill paid for by the government. Health NZ is a far larger monopoly supplier than the Big Banks and Supermarkets combined. Kiwis who can't afford private care have no other choice but to go public. The system I'm recommending is similar to the one in France, which has the best health-care in the world.
A third recommendation is that the government should slash regulations on banks so as to encourage competition, new entrants and investment, and lending to start-ups, small businesses and the agricultural sector, but with one big exception. Should they fail, they must pay for the damage themselves - not the tax-payer - that's why they should be required to hold large capital reserves - a policy strongly opposed by .. the NZ Initiative.
So Finance Minister Willis, I challenge you. You say you are "up for my ideas". Then shed yourself of your monopoly supporting advisers. Reform banking. Bust the single biggest monopoly in the country by far - Health NZ - as represented - by you and your colleagues - and John Key's old mate - Lester Levy.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
The Initiative is a lobbying group for our biggest corporate monopolies. Its board includes Scott Perkins, who I remember from my old school days. He's a Non-Executive Director of Woolworths. Another Board member is Chris Quinn, who is Chief Executive of .. Foodstuffs North Island. (I suppose he'd prefer that to be "NZ", not "North Island"). Barbara Chapman, another Board member, is former Chair of one of the Big Banks. Can you believe it? This is the Board of the outfit who our Finance Minister takes advice from about how to break-up monopolies? Fletcher Building is a member of the Initiative. I was there around 8 years ago when Key was PM and the CEO of that company, an English guy, lectured me how NZ's infrastructure was amazing and not in need of any significant repair. Air NZ is a member. ANZ is a member. Matt Burgess, the PM's adviser, was "Senior Economist" at the Initiative.
So Finance Minister Willis, my first recommendation is to replace your advisers with ones who do not represent the interests of the biggest monopolies and duopolies in NZ.
A second recommendation is to go back to my 40 page article - joint with Sir Roger Douglas - that has been published in leading outlets in Washington, London, Germany and NZ about how our health system, which runs the biggest monopoly in the country courtesy of Health NZ- that is, a "single supplier" model of public health-care delivery - should be reformed to enable private health-care suppliers to provide over half of all our health-care services. Every Kiwi, regardless of income, should be able to choose provider, whether public or private, in consultation with their GP, with the bill paid for by the government. Health NZ is a far larger monopoly supplier than the Big Banks and Supermarkets combined. Kiwis who can't afford private care have no other choice but to go public. The system I'm recommending is similar to the one in France, which has the best health-care in the world.
A third recommendation is that the government should slash regulations on banks so as to encourage competition, new entrants and investment, and lending to start-ups, small businesses and the agricultural sector, but with one big exception. Should they fail, they must pay for the damage themselves - not the tax-payer - that's why they should be required to hold large capital reserves - a policy strongly opposed by .. the NZ Initiative.
So Finance Minister Willis, I challenge you. You say you are "up for my ideas". Then shed yourself of your monopoly supporting advisers. Reform banking. Bust the single biggest monopoly in the country by far - Health NZ - as represented - by you and your colleagues - and John Key's old mate - Lester Levy.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
4 comments:
Well said. But don’t expect her calling you or ‘looking’ into any of your recommendations. We have a steady as you go finance minister with no life experiences or qualifications for her role.
Good stuff Robert! What about the supermarkets and petroleum suppliers? Much harder to solve it seems.
“There is no more dangerous menace to civilization than a government of incompetent, corrupt, or vile men. The worst evils which mankind ever had to endure were inflicted by bad governments. The state can be and has often been in the course of history the main source of mischief and disaster.”
– Ludwig von Mises – 1944
pull us out of the paris climate accord, remove us from the WHO, and UN then crash the Waitangi gravy train, and remove the māori electorate seats. yay NZ
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