‘D.I.Y. economics’

Press, 16 August 1989, Page 2

‘D.I.Y. economics’

Political reporter New Zealanders should be wary of politicians touting “do-it-yourself” economic policies, the Minister of Commerce, Mr Butcher, told the Christchurch Rotary Club yesterday. This approach had cost New Zealand dearly in the last 30 years, he said. Mr Butcher offered the following characteristics of “D.1.Y.” economics. • Preference for activities thought to be “tangible and useful” at any cost, and without acknowledging the value of

service industries. • A “this is different” approach to particular industries, regarded as too important to allow to work in a market environment. • A system of “structure snobbery” which favoured bureaucrats picking the industries which would succeed and should be assisted. • “Essentialism,” whereby some industries were regarded as essential, and making analysis of their cost of development unnecessary. The “think big” projects had

been like this, he said.

Mr Butcher said these kinds of economic approaches had “muddled up economics, status symbols, vested interests and social policies in a brew that could not be justified by any known principles.”

“The cost in terms of lost income and social disruption was massive,” he said.

This was why the Government was pursuing a consistent set of policies aimed at medium term objectives based on a strong economy delivering good social policy, said Mr Butcher.