Independent think tank the NZ Institute, has warned the Govt if it does not change its policies, the Crown accounts will deteriorate rapidly, and remain in bad shape even when the economy starts recovering. It believes the country has a brief “window of opportunity” to re-launch itself in the two years of worldwide disruption, caused by global credit crunch and subsequent recession.

“For NZ to use the recession to re-launch itself as a magnet for business and talent, it must immediately start putting in place high-impact policies to make that happen.” NZ could do this by re-positioning itself ahead of other countries and attract the business opportunities and skilled workers needed to fuel a change in growth. The Govt broadly accepts this thesis. Finance Minister Bill English says NZ has a genuine opportunity to emerge from the recession in a stronger position than most other countries. The Govt is planning a raft of regulatory reforms which it believes will be critical to sustaining and lifting, first of all, business confidence and subsequently economic performance. A programme of new infrastructure investment will be vital to recovery.

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