The Role And Functions Of New Zealand Government Essay

This essay has a total of 1711 words and 8 pages.

The Role And Functions Of New Zealand Government

The New Zealand Government has made significant changes to the economy throughout the last
15 years. The operation and organisation of business activity in New Zealand has been
affected by this changing economy. All aspects of the New Zealand Government have been
altered. The reason for this change was to improve the performance by being more
efficient. The key reforms are privatisation and corporatisation of State Owned
Enterprises (SOEs) and restructuring government agencies.


The most significant change was the election of the Labour Party in 1984, which ended the
Muldoon Administration. At this time, New Zealand was in a rut because of poor economic
management by the previous Government. Unemployment was high in 1983 and still climbing,
real GDP was only 1.15 between 1976 and 1984, and international debt was at 41% of GDP in
1984. The United Kingdom (the major New Zealand export market) had join the European Union
in 1973, and since had to endorse a quota where they could only import a certain number on
overseas products. Under the National Government, New Zealand was close to
self-sufficiency because the government refused to import products from overseas. The
public were to losers in this situation as there were a limited number of products offered
for sale, and they were also quite expensive too. This called for some desperate
transformation.


When the Labour Party was elected under David Lange, they immediately changed the sectors
that they thought needed urgent attention. They were Capital Markets, Financial, Industry,
and International Trade. Other reforms occurred in 1985 (Monetary), 1986 (Tax and
Corporatisation), 1988 (Privatisation), 1989 (Public Expenditure), 1990 (Labour Market),
and 1991 (Resource Management and Social Services). In fact all state sectors underwent
some sort of alteration at some stage. The period from 1984 - 1994 was dubbed "a period of
radical change." These reforms occurred simultaneously and some are still being refined
now. From 1995 onwards there was a second period of "slower paced evolutionary" activity.
(1999, OECD Government Reform)


The key idea in the reform process was to "roll back the state" - in other words focus
more on what a government should do which is, governing the people. Defining a
government's core business can be difficult because in every country it is different, even
in New Zealand. It is also difficult to set limits as its role is constantly changing;
however, the main consistencies are those of Health, Education, Defence, and Welfare. Some
restructuring and reforms affected these sectors.


The New Zealand Government owned many enterprises such as State Insurance, Air New
Zealand, New Zealand Rail, The Bank of New Zealand, and Telecom. In 1987 most of these
assets were sold. By doing this it meant the Government could pay off large accumulated
debts and allow these companies to become more efficient. After the sale of these SOEs
that the New Zealand Government has become more efficient too, they can focus on their
primary task by providing essential services. Some of these services include public
hospitals, education, benefits, and emergency relief.


From the reforms came a radical change in New Zealand trade. In 1984 the Government
devalued the New Zealand Dollar by 20%, then in 1985 introduced a floating exchange rate.
Along with that, the removal of agricultural subsidies and import tariffs. It allowed New
Zealand to be a fairer country to trade with. As a direct result, the trade competitive
index jumped from 0.72 on 1985 to 0.98 in 1987. Foreign investment increased as the New
Zealand Dollar strengthened against the ‘green back' and the pound. Consequently,
importing and exporting firms benefited from the change in policies.


The services that the New Zealand Government provides have ongoing restructuring (which
means altering an already established department) in the State Sector. The State Sector
Act 1988, "which departmental Chief Executive is fully accountable for managing their
organisations efficiently and effectively, and changed the role of the State Services
Commission from employer to manager of public service to employer of Chief Executive and
Advisers to the Government about the management of the State Sector." (1999, OECD
Government Reform) Restructuring of this sector is eliminating inefficient staff
positions, creating more high-ranking positions as overseers and advisers for a more
effective business activity. It could even mean closing factories or offices not required
any more. Centralising corporate headquarters from Warkworth to Auckland, or closing a
freezing works in Masterton and moving operations to Takapau is another example of
restructuring. It removes the burden from the government so they can concentrate on other
areas.


In 1991 the Employment Contracts legislation allowed unionism to become voluntary instead
of compulsory. This meant their power over employment negotiations weakened. Then in 2000,
the Employment Relations Act amended small pieces of the Employment Contracts Act.
Employees had to be registered in the union to take advantage of the rights the
legislation offers. The union must register at the Department of Labour under the
following conditions: they must be independent from the employer, and be a democratic
organisation. While unions have reduced its influence, many "traditional organisations
became more active supporters of the reform process." (1999, OECD Government Reform)


Of the radical reform period, consultation and communication with the general public has
been minimal. As new bills were passed, the general public needed to be informed of the
changes. As time moved on, more publicity was made when changing major legislation, or
adding new acts. During the Employment Relations Bill the media had in-depth interviews
Continues for 4 more pages >>




  • Problems In Chinas Economy
    Problems In Chinas Economy Problems In China¡¯s Economy And Their Solutions Today, at the turn of the century, the People¡¯s Republic of China who has a history of over 5000 years is facing a very important choice. After the revolution of 1949,new China has devoted himself to improving his peoples¡¯ living condition, and developing the economy. Although we encountered some difficulties on the way of development, we still make a rapid progress in many fields, such as, we have already solve the p
  • Gffd
    gffd How Emerging Technology Effects Society: The invention of the automobile by Henry Ford in 1903 started a domino effect on society that would change the face of modern civilization as we know it. Within 50 years of its creation, cars were changing from an item of luxury to an item of necessity, and the vast majority of Americans owned one. People were able to travel greater distances in a shorter amount of time thus facilitating travel and communication greatly. Since then, the next technolo
  • Social Security1
    Social Security1 Abbott 1 Josh A. Abbott Professor Adams Principles of Microeconomics 14 November 2000 Financial Concerns About the Future of Social Security "Will Social Security Have future financial difficulty?" In my view, Social security doesn\'t face a true financial crisis. But it does face a crisis of confidence among younger workers. One widely publicized survey showed more young workers believed in UFOs than believed Social Security would pay them full benefits when they need them. By
  • How emerging technology effects modern society
    How emerging technology effects modern society How Emerging Technology Effects Society: The microeconomics picture of the U.S has changed immensely since 1973, and the trends are proving to be consistently downward for he nation\'s high school graduates and high school dropouts. " Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts technology is probably the most critical. It has favored the educated and the
  • Who Are These Guys
    Who Are These Guys “Economics is the science which studies human behavior as a relationship between end and a scarce means which have alternative uses’ seems to capture the essence of Microeconomics, but does not convey much of the spirit of Macroeconomics.” - L. Robbins Although most economists cannot come to agreement on the definition of economics, the preceding quote from l. Robbins, in my opinion, seems to just about sum it up. Since the beginning, when man first had to choose between hunt
  • How emerging technology effects modern society
    How emerging technology effects modern society Term Papers Can\'t find it here? Try Research Assistance How emerging technology effects modern society By: Hakeem Smith How Emerging Technology Effects Society: The microeconomics picture of the U.S has changed immensely since 1973, and the trends are proving to be consistently downward for he nation\'s high school graduates and high school dropouts. " Of all the reasons given for the wage squeeze - international competition, technology, deregulat
  • How Technology Effects Modern America
    How Technology Effects Modern America How Technology Effects Modern America The microeconomics picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled,
  • MICROECONOMICS
    MICROECONOMICS 2. The twin problems of the health care industry as viewed by society are cost and access. First of all, the cost of getting health care is very high and it is getting higher each day. This has been mostly caused by the combination of high cost and an increase in quantity of services provided to the communities. The other problem involves access to health care. American enjoy limited or no access to health care. Many efforts have been done to reform this, but still but still many
  • Computer Technology
    Computer Technology The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of U.S. News & Wo
  • Economics4
    economics4 Trade and investmentAustralia\'s export structures have changed considerably over the past 15 years. Although trade in commodities remains strong, new services and sophisticated manufacturing export markets have emerged.Merchandise exports were valued at billion in 1998-99. During the same year, Australian exports of services totalled billion. Exports recorded seven per cent average annual growth in the five years to 1998-99. They now account for 20 per cent of GDP, compared w
  • Japans econimic Policy
    Japans econimic Policy The Current Economy and Medium-Term Growth Prospects Summer 1999 brought several indications that the recovery is slowly starting to gather momentum. Public investment, the zero interest rate policy, and an easy lending stance backed by government credit guarantees has clearly had an effect. Full-scale private sector restructuring has also helped put corporate profits back on an uptrend and this is having a major macroeconomic impact. The authorities have recognized that t
  • Mike Porter
    Mike Porter PRIVATE HYPERLINK "http://www.best-in-class.com" http://www.best-in-class.com/ INCLUDEPICTURE d "../../images/toolbar/bp_logo.gif" HYPERLINK "http://www.best-in-class.com" http://www.best-in-class.com/ PRIVATE HYPERLINK "http://www.best-in-class.com" HYPERLINK "http://www.best-in-class.com/about/" about us HYPERLINK "http://www.best-in-class.com/site_tools/contact2.htm" contact us HYPERLINK "http://www.best-in-class.com/site_tools/search.htm" search PRIVATE HYPERLINK "http://www.best
  • Mike Porter1
    Mike Porter1 PRIVATE HYPERLINK "http://www.best-in-class.com" http://www.best-in-class.com/ INCLUDEPICTURE d "../../images/toolbar/bp_logo.gif" HYPERLINK "http://www.best-in-class.com" http://www.best-in-class.com/ PRIVATE HYPERLINK "http://www.best-in-class.com" HYPERLINK "http://www.best-in-class.com/about/" about us HYPERLINK "http://www.best-in-class.com/site_tools/contact2.htm" contact us HYPERLINK "http://www.best-in-class.com/site_tools/search.htm" search PRIVATE HYPERLINK "http://www.bes
  • Effect of Technology
    Effect of Technology How Technology Effects Modern America - US Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled,"
  • How technology effects modern america
    how technology effects modern america How Technology Effects Modern America U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation’s high school graduates and high school drop-outs. “Of all the reasons given for the wage squeeze – international competition, technology, deregulation, the decline of unions and defense cuts – technology is probably the most critical. It has favored the educated a
  • Technology in America
    Technology in America How Technology Effects Modern America U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation’s high school graduates and high school drop-outs. “Of all the reasons given for the wage squeeze – international competition, technology, deregulation, the decline of unions and defense cuts – technology is probably the most critical. It has favored the educated and the skilled,”
  • SinoRussian Forum
    SinoRussian Forum Chapter1. Historical Retrospection of Sino-USSR Trade Sino-R.S.S.R trade started even before the establishment of the People’s Republic of China. In August 1946, the Chinese Communist Party Northeast Bureau reached an agreement with the Soviet Union to exchange clothes, medicine and other daily necessities with foodstuff. At the end of the year, a small-scale trade began. The trade relation between China and USSR had experienced great changes since the establishment of the Peo
  • Chilean Economic Shock Therapy
    Chilean Economic Shock Therapy Chile is seen to be the quintessential model of liberal restructuring in Latin America in the late twentieth century. After the overthrow of the socialist regime of Salvador Allende in 1973, Chile’s government has implemented an authoritative economic restructuring program that replaced state intervention with market incentives and opened Chile to the global economy. This four-phase process transformed the economy from highly protective industrialized to an open f
  • US Wage Trends
    US Wage Trends U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nations high school graduates and high school dropouts. Of all the reasons given for the wage squeeze international competition, technology, deregulation, the decline of unions and defense cuts technology is probably the most critical. It has favored the educated and the skilled, says M. B. Zuckerman, editor-in-chief of U.S. News
  • The European Economic Community and the Euro Dolla
    The European Economic Community and the Euro Dollar EEC and the Euro Dollar The European Economic Community (EEC), also known as the common market, was established in 1957 through the treaty of Rome signed between Belgium, France, Italy, Luxembourg, the Netherlands, and Germany in order to achieve economic cooperation. It has since worked for the free movement of labor and capital, the abolition of trusts and cartels, and the development of joint and reciprocal policies on labor, social welfar
  • The French Revolution1
    The French Revolution1 The French Revolution: An Economic Crisis Why was there a French Revolution? This is a question of continual interests not only to professors and philosophers, but to everybody who takes an interests in the history of the world. Genuinely, therefore, it is also a subject of much contention. The statement citing the fundamental cause of the French Revolution as the collision between a powerful rising Bourgeoisie and an ingrained aristocracy, defending its privileges it had
  • Market mix
    market mix Has today\'s dominant marketing mix paradigm become a strait-jacket? A relationship building and management approach may be the answer. The marketing mix management paradigm has dominated marketing thought, research and practice since it was introduced almost 40 years ago. Today, this paradigm is beginning to lose its position. New approaches have been emerging in marketing research. The globalization of business and the evolving recognition of the importance of customer retention an
  • Market mix
    MIx market mix By: unknown Has today\'s dominant marketing mix paradigm become a strait-jacket? A relationship building and management approach may be the answer. The marketing mix management paradigm has dominated marketing thought, research and practice since it was introduced almost 40 years ago. Today, this paradigm is beginning to lose its position. New approaches have been emerging in marketing research. The globalization of business and the evolving recognition of the importance of custo
  • Costs and Benefits of Military Research and Develo
    Costs and Benefits of Military Research and Development The Costs and Benefits of Funding Military Research and Development Policy Introduction The central issues when evaluating the overall the United States research and development policy are the characteristics of a public good. A public good by definition is one that has a zero marginal cost of providing the good an additional person and from which individuals cannot be excluded. Research and development policy contributes to the level of k
  • Technology
    Technology How Technology Effects Modern America - US Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled, says M. B.
  • How Does Technology Affect Us
    How Does Technology Affect Us How Does Technology Effect Us? U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled
  • Technology
    Technology How Technology Effects Modern America - US Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled, says M. B.
  • Technology Jobs
    Technology Jobs Technology Jobs The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of U.
  • TECHNOLOGY
    TECHNOLOGY The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of U.S. News World Report
  • How Technology Effects Modern America
    How Technology Effects Modern America How Technology Effects Modern America The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. Of all the reasons given for the wage squeeze international competition, technology, deregulation, the decline of unions and defense cuts ­ technology is probably the most critical. It has favored the educated and the skilled, sa
  • How Technology Effects Modern America
    How Technology Effects Modern America How Technology Effects Modern America The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled,"
  • Advances In Technology And Economics
    Advances In Technology And Economics Advances in Technology and Economics The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," s
  • U.s. Wage Trends
    U.s. Wage Trends U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of
  • Role Of Government In Mixed Economies Such As Aust
    Role Of Government In Mixed Economies Such As Australia Role of Government in Mixed Economies Such As Australia What role do governments have in modern mixed economies such as Australia? Using appropriate indicators (macro economic aggregates) outline the present state of the economy. In what ways is the Commonwealth government using fiscal and monetary policies to influence the Australian economy? What are the main features of the government\'s micro economic policy? Why is the government conce
  • Society And The Role That Computers Play In Usa
    Society And The Role That Computers Play In Usa Society and The Role That Computers Play In USA The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educat
  • How technology effects us
    how technology effects us The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman, editor-in-chief of U.S. New
  • How Technology Effects Modern America
    How Technology Effects Modern America How Technology Effects Modern America U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated
  • Corporate Social Responsibility
    Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY By Lori S. Mohr-Corrigan, For The Paper Store - © October 1999 VISIT www.paperwriters.com/aftersale.htm -- for more information on using this paper properly! Because society is fundamentally based upon performance and profit, it is not unusual to find that it is necessary to impart a sense of corporate social responsibility with regard to contemporary commerce. The ethical approaches of purpose, principle and consequence are integr
  • How Technology Effects Modern America - Us Wage Tr
    How Technology Effects Modern America - Us Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled, says M. B. Zuckerman,
  • How Technology Effects Modern America - US Wage Tr
    How Technology Effects Modern America - US Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation\'s high school graduates and high school drop-outs. "Of all the reasons given for the wage squeeze - international competition, technology, deregulation, the decline of unions and defense cuts - technology is probably the most critical. It has favored the educated and the skilled," says M. B. Zuckerman