Taskforce long on diagnosis, short on therapy

2025 Taskforce again long on diagnosis, short on therapy

We would like to have seen more on how the 2025 Taskforce thinks the gap with Australia could be closed say the New Zealand Manufacturers and Exporters Association (NZMEA). The report focused heavily on reducing public spending, fine as far as it goes, but there was little detail on important issues such as tax balance, monetary policy and innovation.

NZMEA Chief Executive John Walley says, “The level of Government spending is important in determining the balance of the economy, but it is naive to think that cost cutting alone is going to turn things around.”

“The Taskforce’s recommendations largely echo the Washington Consensus. This approach has not seen substantial export growth from the countries that have applied it. Earlier this year the International Monetary Fund recommended more pragmatism on exchange rates from small economies instead.”

“The tax balance was hotly contested in the Tax Working Group’s report with a Land Tax being one option and Don Brash has mentioned before that a variable excise tax could be used to control inflation; the Taskforce needs to weigh in on these issues. If they cannot agree on an approach, they could at least present some fresh options.”

“We are all well aware of the increasing wealth gap between New Zealand and Australia and what will happen if the matter is not dealt with,” says Mr Walley. “What the Taskforce needs to deliver is new thinking and debate to turn this around.”

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