Cullen seeks Reserve Bank and Treasury advice on hosing down economy.

Cullen seeks assistance on policy settings to slow down the economy and avoid a hard landing. Apparently Bollard has said not much can be done.

In an extraordinary statement Cullen admits his mega-bribes to students and families are contributing to the problem.

In the near term, I don't think Dr Bollard would be too chuffed if on top of what we are doing on student loans and Working for Families, we also announced we were bringing forward the threshold changes."

I've got some ideas.

Reduce the Government sector and open up the economy to more competition:

Start with an orderly selldown of the Crown's vast interests in energy. Partial floats of Meridian Energy and Mighty River Power would free cash, put investment into private hands and potentially start a new generation of capitalists in the lower middle class. Use golden shares to regulate the sell down to other large energy players if necessary.

The need for the Crown to own (nearly) all the generation capacity and most of the retail distribution and the bulk carrier in order to "protect supply" is specious. This structure actually contributes to uncertainty if for now other reason than the gaming to maximise returns knowing full well no new capacity will arise without consultation...with each company.

Order a solution to very high local call termination rates with Vodafone and Telecom Mobile.

Unbundle the local loop asap.

Mandate higher minimum broadband speeds for Telecom to accelerate online activity.

Re-open the borders to migrants who have a contribution to make.

Reduce the Governance sector for DHB's - encourage mergers. Three DHB's in Auckland?

Immediately tender health procedures to all comers - eg tender x hip replacements in Auckland.
Tenderers to meet quality standards - lowest bidders successful.

Immediate sinking lid on all public sector job numbers. Leave departments to shuffle the numbers as they see fit.

Contract out routine Police stuff - static guards, manning speed cameras, etc. Armaguard will do those roles for at least $10 per hour cheaper than a Policeman.

Encourage a third operator in:
Mobile phones
Supermarkets

Finally implement tax cuts urgently:

Tax cuts do more than boost take-home pay packets. Tax cuts boost growth. That’s because tax cuts boost the return to working, to entrepreneurship and to investment. Taxes are the price you must pay to work, to invest, to be in business. Cut that price and you boost business, productivity and the economy.

The Treasury have said ACT’s tax policy would boost economic growth by one to one-and-a-half percent a year.

Hat-tip: Kiwi Pundit