Clive Bibby: “We don’t know how lucky we are”

In modern democratic societies where economies either steadily grow or collapse under debt, it is noticeable that a few key domestic factors repeatedly feature in the outcome.

And perhaps, on examination, it is no surprise to find that little old New Zealand is blessed more than most other comparable states in the number of natural resources we have at our disposal. The problem is (in Fred Dagg’s assessment) “We don’t know how lucky we are.”

Let’s take a step back and look at our history of using our natural resources compared to our competitors in the markets where we sell the things we produce..

1) It is clear that the number one determining factor of success or failure in 1st World economies is the cost of cheap reliable energy.

Our economic development record is based almost entirely on our choice of a mix of clean, renewable, reliable energy sources when establishing an infrastructure that suits our land based economy.

Sure we have made some bad decisions at government level in the past which is now impacting on our ability to maintain public access to cheap power - ie.the closure of the Marsden Point oil refinery being the most glaring example which, in hindsight, looks like being the most politically motivated gaffe in this nation’s history - but for all that, our future growth still looks like being dependent on how we combine the needs of plants associated with high energy use (eg, the AI centre planned for Southland) with the natural resource (cheap hydro power) available nearby.

Mind you, in that context, I can’t see how the proposed “Pump Hydro” scheme also down South comes close to passing the pub test on that one but someone must have convinced Government to give it a go.

2) Which brings us to the second important natural resource - our Kiwi scientific ingenuity and entrepreneurial talent.

We have shown an ability to lead the world in so many different categories of human endeavour and it is not just on the sports field that we excel or punch above our weight.

On a per capita basis we surprise even ourselves when reading about this person or the next leading the world in their respective field.

Scientists like Rutherford, Jurists like Cook, Heart surgeons like Barret-Boys , Film maker Peter Jackson, not to mention the research and entrepreneurial leaders in the Agriculture, Conservation and Fishing sectors who support our land and sea based industries.

3) A relatively safe, welcoming environment that enables us to develop our natural resources while offering other world leading entrepreneurs a place to develop theirs alongside and bringing their own type of employment opportunities in the process.

This is particularly true for makers of blockbuster films like James Cameron who actually owns property and lives here part of the year.

Also, given the rush to develop AI based technology that requires huge amounts of clean, renewable, relatively cheap energy, NZ is seen as an ideal safe spot by some of the world’s largest developers to build plants that compliment our long term development objectives over a wide range of industries.

We should no longer be in a position where development decisions are based on a philosophy of “borrow and hope”.

Given that future cheap, clean energy will be a commodity relatively based on a number of factors that affect the cost of production - not least the possibility of a small nuclear reactor being an acceptable part of our mix, we are better better placed than most to achieve growth targets we set ourselves.

As these plants become cheaper to build and maintain, their reliability and benefit as a valued, contributing part of the national grid can no longer be ignored.

Similarly, a recent Australian scientific breakthrough in the development of Hydrogen energy looks like making that source another for consideration.

Taken as a whole, it augurs well to have users of our surplus energy competing for long term contracts. We will no longer have to sell our clean energy to large users at discount prices because there are no other client users of the power in such large quantities with their associated significant employment opportunities - eg the Tiwai Point aluminium smelter.

In summary, our economy is well placed to ensure the cost of developing locally domiciled new industries in a competitive world stage environment is an attractive proposition that can’t be ignored.

“We are open for business like never before.”

Who knows where it will end but one thing is for sure - constructive forward planning will need to be supported by politicians who are interested only in positive outcomes for all New Zealanders.

Unfortunately, recent squabbles between and within political parties and pressure groups suggest progress will continue to be limited compared to what it could be if we all decided to forget our differences and work together.

While there is life there is hope but in the meantime we keep allowing these radical, self styled privileged groups to determine the outcome of debates that have become unnecessary logjams in a system designed to benefit us all..

Time to grow up.

Clive Bibby is a commentator, consultant, farmer and community leader, who lives in Tolaga Bay.