NZ Economic Growth: Ministers & Officials Working On “Economic Growth Agenda”
December 10th, 2009
Ministers and officials are beavering away on what Wellington insiders call the “EGA” (the Govt’s Economic Growth Agenda). Sectors identified are tax, public sector performance, energy (petroleum and electricity) and minerals, business assistance for innovation, research and technology (including broadband), and irrigation. The Govt is now holding much of the advice required to turn the EGA from hot air into action. Water is the big mover, and though the Land and Water Forum is not due to report until June, the Govt is now seized with the urgency of resolving some of the significant issues, so current constraints which are frustrating farmers (and the opportunities for growth) are eased.
The Infrastructure Unit inside Treasury is reported to be heavily engaged, suggesting public-private partnerships for water storage and reticulation will be the preferred option. Meanwhile, though the Brash 2025 taskforce report got the brush-off from the Govt and media, it yielded some nuggets. It recommended for example a Fiscal Advisory Council, a board for Crown appointments, and a Productivity Commission. Treasury officials are already working on the feasibility of a Productivity Commission and how it might be funded. Finance Minister Bill English is encouraged how the more forward-thinking elements in the public service are responding to the challenge he has laid down of delivering better value. This has been evident with Health Minister Tony Ryall’s changes in the health system, where strong support has come from within the Ministry of Health (as well as some opposition).
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Duncan Cotterill