Published by The New Zealand Initiative (Wellington), 24 August 2023 (PDF)
As the 2023 general election approaches, New Zealand stands at a precipice. Persistent inflation has triggered a cost-of-living crisis. Prospective homeowners face some of the most unaffordable housing in the world. Despite the ballooning size of our core public service over the past five years, our public service outcomes continue to deteriorate. Students are leaving the state school system with declining literacy and numeracy rates. Waiting lists in the public health system are growing, as are shortages of medical professionals. The domestic crime wave sweeping across the country is devastating lives and livelihoods. Increasingly polarised voters are threatening social cohesion. New Zealand’s world-class status is showing cracks.
These problems, both longstanding and new, need fresh thinking for enduring solutions.
Over the past decade, the researchers at The New Zealand Initiative have produced a substantial body of work addressing many of the most pressing issues facing our nation. We have offered practical proposals to improve housing affordability, enhance education outcomes, restore price stability, streamline regulations, increase productivity, and increase government accountability.
Some of our recommendations have been adopted by the government of the day. Some have found their way into political party manifestos but are not yet public policy. This manifesto summarises our recommendations for the incoming government to adopt. The “Summary of Recommendations” below lists our recommendations in an easily digestible format.
Controlling inflation is the immediate priority. Stable prices are the key to solving the cost-of-living crisis. They are also critical to economic growth and prosperity.
Beyond inflation, the big three areas for reform are education, health and housing. These are all fundamental to the good life. Yet all are areas where New Zealand faces crises.
Four easy recommendations offering immediate “wins” are 1) fixing immigration settings; 2) easing inward flows of foreign capital; 3) reintroducing fiscal discipline for spending decisions; and 4) restoring flexibility to New Zealand’s labour markets.
More generally, without improving productivity growth, New Zealand will be forced to make tough choices, such as aggressively raising the pension age, cutting entitlements, rationing healthcare, or substantially increasing taxes and debt.
The incoming government can spare New Zealanders the looming tough times only by implementing bolder, faster and more comprehensive reforms to secure a stable and sustainable path to a prosperous future for all New Zealanders.