One of my children describes himself as a “maker”. And he is. He makes film animations, has moved to making video clips. He directs, films and works out the sound, then edits. He still needs help. He’s 10.
What’s his pathway into the world? What will NZ look like when he leaves school? Will we have an encouraging environment for him to do tertiary study and then get a good job. Or just get a good job? Will he stay here?
New Zealand desperately needs a focus for our future. What industries are we fostering and growing? What jobs can our kids look to?
Yesterday, NZer of the Year Sir Paul Callaghan said this:
The widening gap with Australia is such that the extra annual earnings required to match its level of prosperity is about NZ$40 billion, equivalent to about five times Fonterra’s export earnings, or nearly four times our tourism earnings.
So what is the cause of our “prosperity deficit”? In my view it is not because of our lack of mineral resources, nor because of how hard we work. New Zealand is one of the hardest-working societies in the Organisation for Economic Co-operation and Development.
We are poorer because we choose to work in low-wage activities. Our current gross domestic product per capita corresponds to $120,500 of revenue per employee. To match Australia, we need $174,000 a job. By contrast, tourism in New Zealand earns $82,800 revenue per employee, a mere two-thirds of what is needed to maintain our current per capita GDP. Tourism may provide valuable employment for underskilled New Zealanders, but it cannot provide a route to greater prosperity.
Productivity is not about how hard people work. It is about the nature of the work they do. Samsung, which makes silicon chips and consumer electronic products, earns NZ$850,000 a job while Apple Inc earns $1,700,000.
… Therein lies a future path for New Zealand. Our top 100 technology companies export $4b a year. We need 10 times that, a goal we are capable of achieving. And to ensure all New Zealanders share in the benefits, every child must have a chance at taking part in this future.
I want a country that’s highly connected across rural and urban NZ, where we have a plan to make technology the backbone of a highly innovative new industry with strong export potential. An industry that’s creating lots of new jobs that pay good money. Jobs for our children. To do that we need strong infrastructure. Broadband that’s fast, affordable and fosters a competitive and innovative technology industry. And as I spelt out last night, my concern is that we’re not going to get it.