Editorial: More to life than money

OPINION: Finally, someone has said it.

And not just anyone, but our own economic heavy-hitter, Reserve Bank Governor Alan Bollard.

We have been tying ourselves in knots for years, trying to grab the coat-tail of our big brother across the Tasman and haul ourselves back towards the table of economic equality.

But according to Dr Bollard, the pursuit of that goal, pushed by politicians inspired by populism, is pointless and anti-productive.

In fact, he goes so far as to say that not only should we abandon our quest for a seat next to Australia, we should instead be content with "crumbs off the Australian table".

That will be anathema to many Kiwis who have long measured their success, whether financial, cultural or sporting, against their counterparts across the ditch, but it strikes a telling tone of realism from a well-respected public servant who measures his words carefully and methodically weighs their impact on the markets and the public.

As Dr Bollard points out, "Australia's a most unusual country".

He's not commenting on their penchant for possums or their strange attitudes towards their own national symbol. He's more concerned about the economic differences between two countries which, to the casual international observer at least, look pretty similar on most counts.

Australia's economy is a great deal different from our own. It is not only bigger, faster and generally more dynamic – things that should be a given for a country with close to 21 million people – but it is protected in large part by a booming export-led mining industry.

The many, many billions contributed by mining saved the Aussies from the worst ravages of the recession and enabled Kevin Rudd's Government to offer an economic stimulus package that blew ours out of the water.

Partly because of the value of that mining industry and partly because of the sheer size of the Aussie economy, we may never be able to stand toe to toe with our antipodean cousins. Compete, yes, but consistently come out on top? Probably not.

Not without a dramatic injection of well-monied immigrants and foreign investment to boost a domestic market that ticks along nicely for a country of four million people but struggles to make top gear.

That's not to say we shouldn't try. The Government is right to consider personal and business tax changes that help our middle class and keep our best and brightest individuals and businesses from eyeing the wealth for toil in Australia.

But we will never win on the money. If it was only about the money, there would be few people left.

Lifestyle and what we spend our wages and salaries on is probably more important than how much we actually make, and it is often the combination of the two that puts New Zealanders on a level playing field with Australians.

So advance New Zealand fair.

- © Fairfax NZ News