Last Updated: Nov 19th, 2009 - 11:07:39 Newsletters : 2005 Newsletters : 13 May 2005 Thought for the Day Brian Walden British Journalist in the Sydney Morning Herald Socialism is about giving people what socialists think is good for them. May 10, 2005, 13:22 Newsletters : 2005 Newsletters : 13 May 2005 Questions and Answers Peter summarises our thoughts for the meeting with Journalists. A very good and succinct statement: Questions and Answers About Parties For Growth Inc. Who is Parties For Growth Inc? It is an Incorporated Society formed by a group of concerned citizens to provide a vehicle for like-minded individuals and companies to join together to promote the importance of high rates of economic growth. What are Parties For Growth’s aims? As a group we believe that economic growth is the underlying principle that should drive the decisions and actions by Government. We support the Government’s professed aim to move us to the top half of the OECD wealth tables by 2010 and believe that we should be aiming for a sustainable 5% per annum growth thereafter to retain the position. Why economic growth? We understand that economic growth is not everything but believe that it is essential if we want improved living standards. This includes better health care, education and environment. All of these are highly correlated with wealth and economic growth. People may choose to take the additional wellbeing in the form of a new car in the garage, increased spending on leisure/travel or in self-development – it is their choice. Is there a problem? In 1900 we were second and in 1950 we were the third country in the world in terms of wealth per head of population. Currently we are 35th. Although we have improved our position recently we believe that current policies are not enough. Research indicates that no country has achieved even a 4% growth rate with the size of government at 40% of the economy. Can we improve our performance? We believe the answer is; "Yes we can", and that 5% or better per annum growth is achievable on a sustained basis. What has to be done? The answer can be summed up briefly as ‘learn from other countries that have done it’. Parties For Growth has surveyed a number of countries that have turned their economies around and believe there are lessons that can be learned and applied in New Zealand. Our website provided an insight to the types of actions taken in Finland, Ireland and Iceland to increase their economic growth rates. For example, lowering tax seems to correlate well with increasing growth rates. Clearly there are numerous ways of achieving better economic outcomes. It is for the Government of the day to decide those best suited to New Zealand. Our goal is for the focus to be first and foremost on the economy when making all non-defence or related expenditure and regulatory decisions. A Specific Example A Regulatory Responsibility Act as outlined by Dr. Bryce Wilkinson in his books ‘Constraining Government’ and ‘Restraining Leviathan’ represent, in our view, good examples of legislation that may restrain Government spending on programs that may do nothing more for the overall economy than provide a short term cash injection into a particularly vulnerable electorate to garner votes in an upcoming election. But is a Regulatory Responsibility Act feasible? It seems like an oxymoron asking parliament to pass legislation to create restrictions on its own actions. However, the Fiscal Responsibility and Reserve Bank Acts showed that such outcomes are indeed possible. So how will we achieve our aims? Ultimately the answer lies with the population of NZ. The country needs to agree collectively that our long-term economic performance is more important than short-term news making expenditure and that actions are required to ensure successive Governments abide by this first principle. It is in encouraging the Government to act and in educating the public to evaluate the outcomes where Parties For Growth believe we can make a difference. Peter V Gallagher Research Director Parties for Growth May 13, 2005, 16:44