Now that greater thought is being given to the recovery of Christchurch and the repercussions that this disaster will have on the New Zealand economy. It feels as if the direction we take now will set the tone for generations to come. Rather than proceed with the standard taxpayer bailout for Christchurch, we should pause and question whether this is efficient or even effective. Rather than provide an adrenalin shot, bailouts have proven to be expensive placebos.

The situation with Christchurch has thrown us all into a higher level of vulnerability. Acknowledging the fact that prior to the earthquake, New Zealand’s economy was on zero growth and looked to be settling into stagnation. We were already feeling the pressure of higher costs across the board and with events in the Middle East, fuel prices are set to compound our problems. New Zealanders can ill afford increasing taxes or forced levies to help Christchurch get back on its feet. Such a drain of individual resources promises to finish us off as a first world nation.

The prime minister has already hinted at how the government is going to inject some financial life into Christchurch’s recovery. However, in actuality, this makes it a taxpayer sponsored injection. It is quite possible that many New Zealanders will regret being so generous to donate so much money and resources in the last few days, when they comprehend that the government will force them to pay again further down the road. If we factor in the reality that Christchurch is already experiencing an exodus, be it more from trauma than economic strife, the struggle for recovery is compounded.

It is my opinion that for the good of Christchurch and New Zealand, our government must readdress their thinking on state mandated stimulus. It has already failed and with the unique problems that Christchurch faces, not only will it fail but the rest of New Zealand will suffer also.

If we are to make the best of a bad situation I can only see that government take a massive step back and reconfigure itself more into a moral boosting and motivating force only.

As we have already seen, when put to the test, New Zealanders are very resourceful and are very quick to help when others are suffering. In the long term, this is our chance to shine. We do not need our government to shine at our expense.

Rather than contrive the transfer of wealth, far better to remove hurdles and allow wealth to transfer freely. If Christchurch were granted a complete 3 year tax free status, to be extended at discretion or preferably made permanent and then extended to all of us (I digress), the problem of attracting resources will be removed very quickly. The object is to change our view away from a coercive patch job to a freewheeling environment of opportunity.

Our government should make immediate steps to remove many of the bureaucratic hurdles that have stifled growth thus far. This includes building permits and inspections. Let those who own their own property determine how they wish their building standards to be, if at all. Building is productive. Letting things lie idle while waiting for permission from people who have no genuine interest is not.

Make Christchurch an ETS and RMA free zone.

Bus town planners out of Christchurch permanently and allow the city to reinvent itself spontaneously. This would be a wonder to see.

Remove the minimum wage. In a situation like Christchurch’s it is better to be earning something than nothing at all. And it is better to be achieving something with available resources than nothing at all. We must trust that consenting adults can come to their own financial agreements.

It seems we have two polar directions in which to take things from here. I fear that vested interest will prevail and take us down a road to third world status but for all concerned this would be a grievous mistake for which we will all pay dearly as will generations that follow.

It seems our preconceptions about human nature are under re evaluation. If the disaster experienced by Christchurch has bought out the reality of the average Kiwi, then we have already moved forward.

Peter Osborne
Libertarianz Spokesman for Social Welfare

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