Our productivity growth has been flagging – so fixing this should be high on Phil’s new agenda

Stripped  of  his  housing  portfolio, Phil Twyford  has  to  rebuild  his  political  reputation.

Given his spectacular  failure with  KiwiBuild, PM  Jacinda  Ardern  might have  been  pardoned  for  leaving Twyford to  work  out  his redemption   in his other  portfolio  of  Transport,   which has  enough  problems  of  its own to demand  the full-time  attention of a   struggling   minister.

But Ardern has  entrusted  the  Economic  Development  portfolio  to Twyford.  This has surprised  some business  leaders,  and dismayed  others.

NZ’s  economic  development  is  suffering  from sustained and  deep-seated  malaise.  Labour  productivity, or output per hours worked, is  around  40%  lower  than  the output per hours worked of international peers.  In a  recent report  the Productivity  Commission  noted the only members of  the  36 countries within the OECD with both a  lower  productivity level and  weaker productivity  growth than NZ  are  Mexico and Greece. Continue reading “Our productivity growth has been flagging – so fixing this should be high on Phil’s new agenda”