The first Labour Government used the Reserve Bank and Social Credit ideas to build 30,000 State houses. Many are still people’s homes. Later governments used the Reserve Bank to fund a Rural Bank which helped farmers. And State Advances, which helped finance first-home buyers. The Dairy Board, later FONTERRA, and various other producer boards had overdrafts funded by the Reserve Bank.
Threats from overseas banking interests gradually reduced our active use of the Reserve Bank. Result? Now we rely more and more on commercial banks.
New Zealand’s government has provided a wide range of services for people. Some critics call that Socialism. But even they expect free hospital care. We need clearer thinking about that word.
The critics’ big worry is BIG Government. That if Government gets BIG it will become inefficient, expensive, and possibly corrupt too. So how can we have a range of services from our government without those problems?
Enter The Rule of 3: Quality Recruitment, Transparency, Public Scrutiny.
1. Let’s give better attention to recruitment. Not just pubic servants but also candidates for election.
2. Transparency is vital, everywhere, all the time, and needed now! There’s no excuse for secrets. And lies, to hide secrets, should get you sacked.
3. Public Scrutiny means insisting on transparency and making use of it. Government agencies are you, they are us. They are our employees. We need to observe and care about what they’re doing. Is it ethical and efficient? Do they treat people with respect? Yes – Congratulate! No – Complain or report.
PPPs instead of the Reserve Bank?
We are told Public-Private-Partnerships may be the only way to get enough money for large projects. That story ignores the power of our Reserve bank as a funder. It also ignores that PPPs offer a path for foreign investors to buy more and more of New Zealand. Which they do.
“Private” in PPPs means a margin of profit for the private business partner. Government must keep an eye on the private work as well as our “Public” contribution. There’s a cost in systematic checking and quality assuring. So the actual cost of a project is: the material cost, the labour cost, plus the private profit, plus the government oversight cost. At least two extra layers of cost. Cheaper and more efficient? Really?
Government spending will be drastically reduced if there’s a stop to new governments knocking over what the last government has built or begun. With cross-party decisions on big investments, that nonsense will stop.
We are told the private sector will manage tasks more efficiently than a government agency — in some cases that will be true. CoOperativeNZ applauds private sector energy and initiative. Since we no longer have a multi-skilled Public Works Department we’ll need a strong private sector to build what’s needed.
CoOperativeNZ expects private business to operate with socially responsible ethics — it’s in their interest to care about the well being of employees and customers. We expect government to deliver social benefits to the community because it is best able to do so.
Let government do the jobs it’s best suited for. Large-scale integrated planning for a start – railway from Cape Reinga to Bluff; spurs going to the ports and airports to Eastern and Western main centres. Integrating ferry services, freight barges, and roads. Biosecurity. How we handle immigration.
And where private “profit” is an unavoidable temptation to abuse or neglect – child care, schools, hospitals, mental health, aged care, prisons – government should deliver those services. Investing properly at the preventive end of these services saves lots of money at the complex-care end.
What if?
Imagine going to a concert in Auckland on a comfortable train, chatting over bubbles, beers, or cups of tea as you travel. Imagine working quietly on your laptop as you travel by train to Wellington for a meeting. Imagine having a good night’s sleep as you sail to Christchurch on an overnight ferry.
Imagine rushing your sick baby to the Emergency Department and being seen immediately. Imagine no homeless people, no-one begging.
Imagine no youth suicides.
Future Parliaments, consulting their voters and working collaboratively, can make these and many more good things a reality.