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Dateline: 7 February 2000 Early Edition Read The Previous Edition A permanent link to this page can be found here
Editorial
Labour promised that ensuring New Zealand became and remained competitive
in the modern hi-tech global economy would be one of its first priorities --
they even promised to investigate the vexatious matter of Telecom's 0867
system which effectively forces all ISPs to obtain their dial-up access
through Telecom's circuits.
So lets see how they're doing...
First up -- that critical 0867 inquiry has been put on the back-burner, unlikely
to be carried out until much later this year.
Secondly -- we have the king-hit delivered to TVNZ's plans to introduce a
state-of-the-art digital TV system that includes broadband Internet access.
And, as of April 1, all those high-earning entrepreneurs and technology
professionals who have left (or are about to leave) will be further encouraged
to ply their trade overseas by a boost to the top rate of personal income tax.
What's more, even though the new government seems to have found time to
lift income tax, they have still done absolutely tangeable about redressing the significantly
punitive tax regime as it applies to R&D spending in this country -- further
encouraging bright young people and companies with burgeoning hi-tech
ideas to depart for pastures green(er).
When it comes to fostering a KBE in this country we seem to have jumped out
of the frying pan and into the fire.
I'm sure the government and their defenders would respond that they've only
been in power for a little over 3 months so it's unfair to be so critical.
My response would be to say that three months is a long time in the hi-tech
world. During those three short months, the Nasdaq
technology-heavy market index in the USA increased its value by
over 40 percent
(while New Zealand's market's languish) and the very face of the hi-tech
world and global KBE has already undergone some significant transformations.
AOL and Time Warner merged, Mannesman and Vodafone have likewise agreed to
join forces and place significant emphasis on wireless Net access, and a
raft of other commercial and technological changes are sweeping those countries
that recognise the importance of building a robust KBE.
The very fact that New Zealand's stock market has remained almost stagnant
for the past 12 months is a clear indicator that, despite increased sales
of imported goods and a nice low unemployment rate, this country simply
isn't positioning itself to take advantage of the benefits that a KBE can
offer and which our peers are reaping on a massive scale.
I don't want to sound too negative about this (although I'm becoming
increasingly despondent that any of our politicians will ever pull their
head out of the trough long enough to see how quickly our near-third-world
fate is creeping up on us) so I'm going to make a suggestion...
To be blunt -- any country that can have a "Minister of Racing" (Annette King)
can surely find the budget, time and justification for creating a portfolio
exclusively charged with creating, fostering and sustaining a KBE in this country.
This portfolio would be too important tack on the end of a long list of the long
list of other portfolios given to some poor tech-illiterate member of cabinet --
it must be the exclusive job of one person -- and that person must have a
background, skills and experience commensurate with the demands of the role.
And before anyone suggests that as "Minister for Economic Development", this
is the job of Jim Anderton -- please don't. Jim certainly doesn't qualify
for the demands that the role would place on the person in that position and
his seeming distrust of the capitalist system which fosters such massive
profits as those seen in the KBE sector would surely compromise his own
ideologies.
So... as a nation, we have a choice. Ignore the global move to hi-tech
knowledge based industries and stick to our lo-tech commodity products such
as meat, wool and timber -- or take full advantage of the wealth of
bright, entrepreneurial Kiwis that we presently export to the USA, Europe
and Australia and, by creating an environment that retains or lures them back,
make New Zealand an economic force to be reckoned with -- just like Israel,
Ireland and Finland.
Unfortunately time is running out. The rest of the field has already left
the starting blocks and is coming around to lap us. If we don't start making
some really concerted efforts to address our KBE-unfriendly environment
then we should at least start preparing for the "poor nation" status into which
we will eventually sink.
And if you don't believe me -- most of our key markets are already taking
advantage of hi-tech advances to improve their own food production efficiencies
which makes our primary products less attractive. Add to this the cost
of shipping over the 16,000 Km that distances us from our key markets and
the future becomes increasingly clear.
The KBE may be the only opportunity we get to move into an area where that
16,000 Km divide becomes of no consequence -- but it appears that our
priorities are so screwed that we'd rather have a minister
overseeing horse racing than one working to ensure we take advantage of this
once in a century chance.
Unbelievable!
As always, your comments are gladly received.
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Aardvark Daily is a publication of, and is copyright to, Bruce Simpson, all rights reserved
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