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Thursday, April 3, 2025

Professor Robert MacCulloch: Prebs is Right - a 4 Year Parliamentary Term is no panacea to NZ's stagnation....


Prebs is Right - a 4 Year Parliamentary Term is no panacea to NZ's stagnation. The problem is neither the Nats nor Labour have had a plan since 1993.

In an excellent article in the Herald, Richard Prebble (or "Prebs" as we call him) argues the proposals presented by National-ACT for a four year parliamentary term are a mistake. (By the way, the Herald's sole defense for not being outrageously left biased and trying to avoid being taken over is that former ACT leader Prebs writes for it - he's the only thing stopping the Board being fired). Anyhow, here's a story on the 4 year term question.

Roger Douglas came to one of my classes and a student asked him, "Don't you think the problem in NZ is that the 3 year term means our politicians can't get much done & are too focused on the day-to-day?" To which Roger replied, "I don't need even 3 years to enact the plan me & Robert presented to you - I'd only need 6 months". Its a profound reply. Because before Prebs, Roger, Mike "Lamb burger" Moore & the Fish & Chips brigade came to power in 1984, they'd already come up with a plan, written books & thought about what needed to be done to fix NZ's problems. On winning the election, they enacted it. I seem to remember they started doing so, like floating the NZ dollar, even before the hand-over of power, since former National Party PM Rob Muldoon tried to pull a coup and refused to give up.

So what's the problem now, in 2025? Its exactly the same one as when Ardern became PM in 2017. Neither Ardern, nor Finance Minister Willis, had a plan. None whatsoever. They're practically twins. They got into power & then thought, "What shall I do now?". Ardern got saved by Covid, which gave her a reason to exist, that she's still riding to this very day. As for economic reform, whenever the words came up, Ardern appointed a "Review Committee", or "Working Group Committee", to give her government advice. Ardern had never written a book; she's doing that now. Its called her memoirs and they're about how great she is. Willis also has no clue what to do, but she had a cunning idea. Instead of having the same Labour-style "Review Committees" and "Working Group Committees" and so be accused of being an Ardern Mark II, she's calling hers "Advisory Committees". In October 2023 she said she was "asking for advice" how to break up the Big Supermarkets. Last week, in March 2025, she made a big announcement that she'd again decided to "ask for advice" how to break them up. Advice like the type she wants gets you nowhere. You have to have your own plan.

It was flattering to me, though bonkers at the same time, that Finance Minister Willis said to Heather du Plessis-Allan on Newstalk ZB, "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". Isn't what she said, for want a better word, madness? Is it my job to do her job? I already have a job that I need to feed the family. And I did already come up with a fully-costed plan that Willis never could be bothered reading on how to lower the cost-of-living, increase competition, drive up savings and fix health-care. It was written eight years ago. A former Finance Minister did the costings. Willis couldn't have cared less about it. Why did she say she is up for DownToEarth.Kiwis to give her ideas and then never contact us? She just made up that line for the Newstalk ZB listeners. The country cannot endure an Ardern Mark I, an Ardern Mark II (Willis), and Ardern Mark III in Waiting (Hipkins). The problem is that we haven't had a fresh rethink of the entire system for thirty years now.

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.

9 comments:

Mark Hanley said...

Let's hope Willis surprises us with a bold budget which rids us of the 16,000 extra tax sucking public servants the Clark Ardern Robertson axis burdened us with.

Lets hope Willis has conducted a Doge style analysis of nz government spending so she can can weed out programs, ministers, and commissioners which/who produce nothing of benefit.

Let's hope Willis reduces the massive budget deficit.

Let's hope Willis includes incentives for government departments to increase productivity and reduce their burden on the tax payer.

If not then we need someone who can.

Chris Bishop and Simeon Brown are the two obvious meritorious choices.

Anonymous said...

You are so right Professor. A 4 year term merely extends the pain of the electorate that has to tolerate these incompetent fools who pretend to govern us. Our whole party-political structure is now well past its use-by date. We desperately need to rid ourselves of the Arderns, Hipkins, Luxons et al and think up a valid system, before our whole structure crashes into the swamp of despair.

CXH said...

Mark Hanely, hope is not much of a plan. Especially this far into the three years. The plan should have been ready and put into play immediately.

At least Jacinda had the excuse of not expecting to win. Willis and Luxon have no such excuse.

anonymous said...

Mr Hanley again.!
We all know about the economic challenges created by the incompetent Labour govt. A labour of Hercules to resolve.

Still not word about the Maorification issue - now festering in the Privileges Committee.

Mr H. does not get it. Luxon only has to correct a few issues - and demonstrate proper and robust social leadership - and the voters would eat from his little hand.

6th time for this question : why is he not doing this?

anonymous said...

We are way past " let's hope" - it is now "Willis must......".

MH said...

What the abuse luxon bandwagon fails to comprehend, is the size of the mess Luxons government inherited and the deep recession required to clean up the inflationary economic destruction the Clark, Ardern, Hipkins, and Robertson axis left behind.

Every aspect of government outside finance has been running like a well oiled machine with Ministers hitting the ground running and implementing significant change to improve NZ and the lives of NZers.

So my guess is the Finance Ministers hands were tied for the first budget. Sacking a significant number of public servants and cutting major public initiatives/budgets in the middle of a deep recession would have exacerbated the pain felt by all NZers.

Weeding out the fiscal holes and other unpleasant, devious, and purposeful budget sabotage measures left by Robertson and his axis colleagues would require significant time and resource and couldn't be prepared for prior to the election because Luxon and Willis didn't have access to the government books.

So whilst I'm not convinced Willis was a purely meritorious appointment, I am convinced Luxon had a plan from day one. Coupled with Luxons obvious excellent management acumen and experience, that plan will propel NZ to a prosperous future.

MH said...

i have a copy of this reply on my desktop so i can copy paste every time this Anon person / persons repeats the oft answered inane question...

Yawn..... another ANON claiming i haven't answered his / her questions.

I answered this question so many times to so many ANONs, my RSI is playing up again. Search my comments to find out why I believe Luxon isn't supporting the pointless (for now) TPB and why i believe the TPB must go to referendum when Nationals term is drawing to a close.

MH said...

NZ Herald today. a net total of 478 people could be made redundant from Kainga Ora by the end of June.

Hugh Jorgan said...

I can't help wondering why Mark Hanley posts some comments under his full name (if that's what it is), and some comments under "MH." What's that all about?