Category Archives: Governance

That ”D” Word: What Are We Voting for This Week?

Listener 10 October, 1998.

Keywords: Governance;

The new Minister of Local Government, Tony Ryall, began his first address with “Local Government is an important part of our economy. It’s 3.5 percent of our country’s GDP. Local government can either help the country or it can hinder. With the problems of Asia bearing down on us, every part of the economy has a role to paly in helping our nation weather the storm. Local Government must contribute to the international competitiveness of New Zealand exporters through good infrastructure, efficient regulation, and control over costs.”

Law Of the Jungle: Is Ours a Market Raw in Tooth and Claw?

Listener 20 June 1998.

Keywords: Governance;

Given East Asian financial corruption, we may ponder on the probity of New Zealand. It is often argued that government interventions generate manipulation and corruption. Compared to other rich OECD nations, New Zealand’s market interventions before 1984 were high (although by Eastern European and developing world standards they were not). But even by OECD standards, New Zealand’s level of corruption seems to have been low. Of course there was some, not all of it was exposed. Even so a myriad of opportunities were not seized upon.

Pressure Point: When Accountants Reign Supreme

Listener 23 May, 1988.

Keywords: Governance;

As Lady Bracknell could have said “to lose one could be regarded as a tragedy, to lose two looks like carelessness.” She may well have been speechless learning that Auckland has had three major outages this decade with perhaps two more to come. The recent loss of power to Auckland’s CBD follows a national power shortage of 1992, and a Auckland-wide water shortage. Experts tell me that the Auckland sewerage system is close to capacity, non-experts draw the same conclusion about the Auckland roading. Just how many cases of infrastructural overload does there have to be before a pattern is acknowledged?

Money for Jams: the Government Response to Roading Reforms Is Commercialisation.

Listener 31 January, 1998.

Keywords: Governance; Health;

The proposed roading reforms are a typical case of the identification of a problem – road congestion in Auckland and Wellington – and a policy solution which has nothing to do with the problem, but forces the sector to conform to “THE MODEL” of commercialising everything. Its report is obscured and confused: it even gives two different months for when it was published. We might predict the outcome if the policy goes ahead.

Out Of Tune: Even the Officials Admit the Health Reforms Were Fatally Flawed.

Listener 27 December, 1997.

Keywords: Governance; Health;

In a paper to the Association of Salaried Medical Staff, the chairman of the Transitional Health Authority (THA), Graham Scott, reported that the 1991 health reforms were predicated upon productivity gains in the public hospital sector, and that they not occurred. As a result the CHEs are in permanent financial deficit. In Scott’s convoluted presentation – after all he was a past Secretary of the Treasury where the English language is a challenge – “the current deficits in CHEs are not only about inefficiencies and variations in the quality of management but are also an outgrowth of the original efficient pricing policy [whatever that means]. In other words a share of these deficits was made in Wellington, because the policy did not work out as intended. They were in inherent in the policy framework that assumed efficiency gains would be allocated to the deficit.” More simply, the policy failed.

The Broadcasting Reforms

Appendix to Chapter 4 of Commercialisation of New Zealand. An excerpt was published in J. Farnsworth & I. Hutchinson (ed) New Zealand Television: A Reader, 2001, Dunmore Press, p.225-230.

Keywords: Governance; Literature and Culture;

It is very easy to argue that there is something special about some economic commodity such as broadcasting, but to overlook there are other activities which are just as special, such as hard copy periodicals. A good magazine shop sells over 5000 titles. They range from daily newspapers to monthly science journals, from gardening to financial investment. In a big city there will be dozen of competitors also selling titles, as well as specialist shops for ethnic language literature, rock music, obscure political views, to whatever. Alternatively there is subscription by post. This extraordinarily rich supply in response to a myriad of public demands is provided without significant government involvement other than the framework for normal commerce.

The Commercialisation Of New Zealand


Auckland University Press, 1997. 288pp.

Well-known economist and commentator Brian Easton describes the origins, theory, history and politics of the dramatic change in economic policy in New Zealand from Robert Muldoon’s interventionism to Roger Douglas’s commercialisation and beyond. It is graphically illustrated with case studies including health, education, broadcasting, environment and heritage, government administration, the labour market, cultural policy and science. Lively broad ranging and controversial, this is a valuable commentary on the ‘more-market’ prevalent in New Zealand from the mid 1980s. (Publisher’s blurb)

The Fallacy Of the Generic Manager

Appendix to Chapter 9 of The Commercialisation of New Zealand

Keywords: Governance; Health;

A central notion of the New Zealand reforms of the 1980s and early 1990s was that an able manager was capable of managing any agency in the private or public sector. This has two implications. First, it suggests that all economic activities are broadly the same, or may be treated so for policy purposes, since the required management skills and approaches are not sector specific. Second, it encourages the replacement of specialist managers, who had typically developed in the sector, with generalists who had not, but who would be loyal to the managerialist philosophy and anxious to impose it on the institution.

Team Spirit: Has MMP Ended the Dominance Of Cabinet?

Listener: 31 May, 1997.

Keywords: Governance;

The view which blames all our current political and government difficulties on MMP cannot be correct. MMP is a method for electing members of parliament. How they behave is a result of the arrangements within Parliament House, not who gets elected. We may not even be able to blame MMP for coalition government. National won only 30 of the 65 electorate seats. Even increasing that by 2 to allow for the Wellington seats from which it tactically retreated, National would still have won less that half the electorate seats. So probably under a FPP election National would still have formed a coalition government with New Zealand First which won 6 electorate seats.

Accounting for a Difference: How Should We Judge Jeff Chapman?

Listener May 3, 1997.

Keywords: Governance

In 1978 the then Auditor General, Fred Shailes, publicly complained about the antiquated state of the nation’s public sector accounting. A younger man in the Audit Office, Jeff Chapman, seized the initiative by persuading the Society of Accountants to establish a committee to develop new standards for accounting in central and local government. …

Dispirited News:

A World-leading Academic Found Not All is Well in the Public Sector
Listener: 1 February, 1997.

Keywords: Governance;

The last minute decision to make Jenny Shipley Minister of State Services may reflect looming problems in the state sector. The underlying issues are set out in a recently published report, The Spirit of Reform.

A Tale Of Two Cities

Christchurch’s Economic Success is Associated with A Tradition of Civic Community. Wellington, Take Note.
Listener: 7 September, 1996.

Keywords: Governance;

The church hall was packed, and the audience angry. In a few days the Wellington city Council was going to decide what to do with its majority share in Capital Power, its local electricity supply authority (ESA). Everyone expected them to divest their control, despite the populace supporting the maintenance of the asset in public hands. A citizens’ jury had favoured public ownership, an opinion poll had supported them, everybody seemed against the divestment of control. Yet the decision seemed destined to go against the majority wishes. Just as a few years earlier the Council had agreed to sell a minority share to a private investor.

The Wild Bunch?: an Inquiry Is Needed to Restore Treasury’s Integrity

Listener: 24 August, 1996. (Published as Editorial)

Keywords: Governance;

The New Zealand public has just lost $328.4 million because of bad Treasury advice on the 1987 sale of New Zealand Steel to Equiticorp. The public lost that money because, during the sale process, the deal between the Crown and Equiticorp broke company law – section 62 of the Companies Act makes it illegal for a company to buy its own shares.

Future Vision

The Government’s Plans for Our Future Are Well-meant, But Contain Some Glaring Omissions.
Listener: 1 June 1996.

Keywords: Governance;

At the foot of this column are the government’s “Strategic Result Areas”. They may not seem important to the public, but they are certainly prominent in the mind of the government advisers, who are likely to pop the acronym SRA into their conversations. SRAs aim to “bring a more coherent strategic approach to managing government”, and “build an understanding of what the Government intends to accomplish, and how it plans to go about using its agencies.” They set out “the contribution that the public sector will make to achieving the Government’s strategic vision for New Zealand.” Practically a public servant concerned with a policy development checks to see whether a proposal is within the SRAs. If not, the government is likely to look unfavourably on the policy. No wonder officials anxiously discuss SRAs.

Economic Reform: Parallels and Divergences

by Brian Easton and Rolf Gerritsen

The Great Experiment edited by F. Castles, R. Gerritsen & J. Vowles (AUP:1996), p.22-47.

Keywords: Governance; Political Economy & History;

Introduction

The Labour governments of the 1980s were the first in Australasia to be forced to come to grips with the increased ‘globalisation’ of their economies-that is, the effect upon them of growing international integration of both capital and goods and services markets. This globalisation, it has been argued (cf. Kurzer 1991; Lee & McKenzie 1989; Notermans 1993), has exerted an inexorable pressure for a convergence towards economic policy-making that removes barriers to free-market mechanisms. Globalisation and greater international competition-as the 1970s oil shocks ended the post-war long boom-supposedly made traditional social democratic economic policy difficult if not impossible (Scharpf 1991). Redistributive, interventionist and expansionary strategies could no longer be employed without supposedly fatally undermining aggregate macroeconomic performance.

Systemic Failure

Listener 23 December, 1995.

Keywords: Governance;

“Standing back and viewing the evidence objectively, that I am left with the overwhelming impression that the many people affected were all let down by faults in the process of government departmental reforms. Society always likes to feel it is progressing, but there are lessons for society in all of this. No government organisation can do its job without adequate resourcing. In my opinion, it is up to governments to ensure that departments charged with carrying out statutory functions for the benefit of the community are provided with sufficient resources to enable them to do so.” Judge George Noble, Committee of Inquiry into the Cave Creek Tragedy.

Holding on to the Past: Governing National Archives

Listener: 30 September, 1995.

Keywords: Governance;

The prime minister must have groaned when controversy erupted over the reforming of the National Archives, which holds most of the nation’s important records. It is the sort of row which his government does not need. The antagonized includes archivists, genealogists, historians, constitutional lawyers, Maori with land claims, and retired soldiers. The proposals have alienated them, yet the gains, if any, from the reforms will be small.

Crises in the Cris: the Science Reforms Have Been Failed

Listener 22 October 1994.

Keywords Governance, Growth & Innovation

We were told that the separation of scientific research funding and providing would result in better research. (The funder is the Foundation of Research, Science and Technology – FRST, pronounced “forst”; the main providers are with corporatized profit oriented Crown Research Institutes – CRIs, pronounced “crises”).