Media release: Local problems need local solutions
Wellington (19 October 2015): Central government needs to give regions their own regulatory toolbox if the country is to unleash the economic potential that remains underutilised with the current one-size-fits-all governance model.
That is according to the latest report from The New Zealand Initiative, In the Zone: Creating a Toolbox for Regional Prosperity, which was released today.
The report proposes setting up Special Economic Zones (SEZs) as a means of tailoring policy reform to regional needs, encouraging regional economic development, while also piloting policy changes before rolling them out to the entire country.
Executive Director of the Initiative, Dr Oliver Hartwich, said central government reaps most of the tax revenue benefits when local economies thrive. Providing councils with a share of those benefits would give councils stronger incentives to find the policy solutions that are right for them.
“Local government takes a lot of criticism, but it is obvious that the policy settings that work for Auckland don’t necessarily produce the same results in Southland,” he said. “In the framework we propose, local councils would find the solutions they think would work best for them.”
The report calls for a more collaborative approach to policymaking between local and central government, in which local government could request regional variations on national level regulations to suit local needs.
“Applying changes at a regional level makes it much easier to tell whether the change has worked as you can compare across regions,” said Dr Eric Crampton, Head of Research at the Initiative and lead author of the report.
“If the policy changes work, that’s great. We can then offer them to other regions who may want to implement similar changes. And if they don’t work, then the change can be rolled back at much lower cost as compared to national-level policy changes.”
The report suggests examples of regionalised policy reform including liberalised foreign investment for the Wellington region, a modified Resource Management Act geared to housing needs for Auckland, and enabling greater immigration to the regions.
The New Zealand Initiative launches the report this evening at a panel discussion with National’s Chris Bishop, Labour’s Clare Curran, NZ First’s Ron Mark, and Cameron Partners’ Rob Cameron.
ENDS
About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute, which is supported by a membership organisation that counts some of the country’s leading visionaries, business leaders and political thinkers among its ranks.
Our members are committed to developing policies to make New Zealand a better country for all its citizens. We believe all New Zealanders deserve a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
The New Zealand Initiative pursues this goal by participating in public life, and making a contribution to public discussions.
For more information visit www.nzinitiative.org.nz