Saturday, April 29, 2006

Hands-on or hands-off?

In a predictable series of reactions, the elevation of Don Brash to leader of the National Party, has garnered bouquets from the business community and brickbats from unions and workers groups.

Business and employer groups say Brash has a good understanding of their needs- less red tape, lower taxes and a hands-off approach from the government.


That's a media report about Don Brash taking over the leadership of National.

Today expect John Key, in a speech to National's northern regional conference today, to urge a more hands-on approach to the economy.

Mr Key will point to Singapore, which he has just visited, to advocate a more hands-on role for Government in setting economic direction.

My understanding of Singapore is government is more hands-off than hands-on. Here's a quote from Singapore's PM:

"In Singapore we have decided we must keep our taxes low to attract new investments and minimise labour rigidities so that companys can expand and contract flexibly as business conditions change. Singapore is also promoting innovation, creativity and entrepreneurship. This means deregulating and liberalising the economy. It means emphasisng private enterprise as an engine of growth."


Don Brash said in 2003, "The next National government will be much closer in spirit to the vitality of the Singaporean model than to the complacency of their (Labour) government."

It will be interesting to learn what Mr Key actually means.

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