Wednesday, 18 March 2009


The Australian has a great column on the business nous of three world leaders - John Key, Kevin Rudd and Obama. She reckons Key has got it sorted. she even thinks that he should have a place at the hallowed table of G20.

She has picked up on the factthat Key is the only one who understands commercial realities because he is the only one of the three who has any real business experience.

Heres an excerpt from Jane Albrechtsen.

Key, on the other hand, understands what is needed to make businesses hum: lower taxes, smarter regulation and a flexible labour market. He has recognised that a one-off sugar hit - or cash splash - won’t help business employ people for any longer than it takes to spend the cash. Permanent tax cuts help business employ more staff - permanently.

He told The Wall Street Journal’s Mary Kissel a few weeks back that he is determined to stop the slide that has seen NZ fall to the bottom half on the Organisation for Economic Co-operation and Development’s per-capita gross domestic product rankings. “We have been on a slippery slope ... so we need to lift those per capita wages, and the only way to really do that is through productivity growth driving efficiency in the country.” Key is cutting taxes, reforming regulations that inhibited foreign capital and tackling environmental legislation that has been misused by green groups to stop private sector investment. Oh, and he is undertaking a line-by-line review of every government department as part of his Government’s commitment to capping spending.

No wonder Key is the odd man out. And it is a shame that NZ will not be attending the G20 meeting in London next month, the latest effort by world leaders to confront the global financial crisis. Spend big and all will be in order is Obama’s resounding theme. It’s all stimulus this and stimulus that. Is it too much to hope that G stands for growth, not group-think?

We agree - they only problem is that its going to take a year or two to see who was right. Key, Rudd or Obama. Our money is still on Key.

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