Contributed
BUSINESSES are closing, zombie towns have been mentioned in the media again – and Shane Jones’ says that “it is too hard to produce food in New Zealand”.
This should be sending more than shivers along the spine of every New Zealander: food production is often described as the backbone of the New Zealand economy for a very good reason – it provides the bulk of the exports, which bring new money into the country.
Food – from agriculture, horticulture, arable and fisheries – constitutes almost 70 percent of the export economy.
There is another 10 percent contribution from wood and wool. The income circulates in ever increasing circles – and when it stops, the ripples spread in negative fashion.
The recent ripples have been from pulp mills in the central North Island and meat plants in the South Island – high power prices and the cost of meeting escalating environmental regulations have created businesses that are unsustainable.
Every business closure is a toll of the bell and economist Shamubeel Eaqub’s 2014 description of zombie towns is back.
Stories of greener pastures over the Tasman have attracted people to leave New Zealand in record numbers.
The University of Wharton Best Countries Index indicates why, and the key is jobs.
Of 89 countries, Australia ranks fifth overall, eight in quality of life and has a job market score of fourth in the global index.
New Zealand is ninth overall, ranks 10th in quality of life, but is 14th in the job market ranks.
New Zealand ranks higher than Australia in affordability, though neither are considered “affordable”.
But affordable countries score less well overall.
Thailand is ranked as the most affordable country in the world, but scores 28th in the Best Country rankings, Vietnam is second in affordability, but 44th overall.
Teasing out the data further reveals that New Zealand ranks first on caring for the environment, with Australia third.
For commitment to climate goals, New Zealand is third and Australia eighth.
Affordable countries don’t rate highly in these areas, nor in any of the social purpose indicators that New Zealanders value, including caring for animals and people.
Switzerland is the top of the ranks in the Best Countries Index – but for climate goals, animal rights and even caring for the environment, it scores below New Zealand.
And Switzerland’s affordability is next-to-last of 89 countries.
No country can have it all.
Every country has to make choices.
In democratic countries, the choice is guided by society voting for parties, according to their policies.
These policies are guided by a range of factors including science, economics, and ideology. The last one does not always create what is needed.
In May 2019, New Zealand attracted international attention launching a Wellbeing Budget which committed to putting people’s wellbeing and the environment at the heart of its policies.
Despite increased investment in wellbeing since then, the StatsNZ release last month showed no change.
The report indicated an average overall life satisfaction score of 7.6 out of 10, which was similar to the mean rating of 7.7 out of 10 in 2021 and unchanged from 2018.
Resilience is to the fore – most people adapt to their current situation and feel their personal sense of wellbeing is okay, though could be improved ‘if’.
But investment in that “if” doesn’t always create a difference in the longer term, because people adjust their expectations. What is clear is that the short-term thinking that got us through Covid needs replacing with a foundation of investment in projects that generate jobs, income and wellbeing through a sense of achievement and worth.
Increased export income will allow investment in health, education and infrastructure.
Shane Jones has a point.
From financially supporting Ōpōtiki’s mussel factory and the Ōpōtiki Harbour development and fast-tracking projects that will lead to jobs, he is supporting economic development.
The fast-track projects on the agenda will, he says, lead to over $50 billion worth of housing, mining, infrastructure and marine farming. That money will circulate, and the positive ripples will spread.
The primary sector is trying to do its part in productivity and export income, but Mr Jones’ words are real – it has become too difficult.
No country can have it all.
We need food production for domestic supply and export income.
Other countries appreciate what has been achieved so far for the environment and climate change goals.
Investing in “wellbeing” hasn’t created a difference. Fast-track projects are vital to stop the negative ripples and zombie towns spreading.
It isn’t just Mr Jones who thinks the current state is too hard.
And it isn’t just Mre Jones who wants to be able to do better.
Most New Zealanders know that we are all in this together …
A version of this article appeared in NZME on October 8.