The big difference between Australia and NZ

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The big difference between Australia and NZ

A glowing OECD report shows up the big difference between Australia and New Zealand, says Business NZ.

Chief Executive Simon Carlaw says an OECD report released yesterday commends the policies responsible for Australia’s “exceptional economic performance which is expected to continue”(1).

“Many of the policies that are making Australia prosperous have been ruled ‘out of bounds’ in New Zealand.  Yet these are the policy differences that result in the average Australian taking home $150 more per week than the average New Zealander,” Mr Carlaw said. 

“This is the gap that must be closed, to stop the flow of jobs and people to Australia.

“The OECD report on Australia contrasts starkly with last year’s OECD report on New Zealand that slated the lack of “well defined and verifiable goals”, saying a “coherent set of policies designed to enhance the country’s long-term growth potential” was needed. (2)

“Closing the trans-Tasman income gap comes down to the policies adopted by respective governments.  Some policies generate economic growth; others hold it back.  Ruling growth-promoting policies ‘out of bounds’ is a recipe for widening the gap,” Mr Carlaw said.

(1) OECD Economic Surveys: Australia February 2003 p 7

(2) OECD Economic Surveys: New Zealand May 2002 p 13