Why The Rugby Sevens Must Go

73099373MM017_SevensRecently the “colourful” Rugby Sevens tournament brought many visitors to our fair city and teams from all over the world to compete. It would all be very uplifting, except that the event has become less about sport and more about partying and getting trashed. Is that the kind of reputation we are trying to build for Wellington?

The party culture around this event reflects the worst elements of our selfish, reckless, binge drinking Kiwi culture, so it seems entirely out of tune with a city in which we are attempting to cultivate higher values such as innovation, creativity and the advancement of knowledge. Supporters of the “Sevens” frequently quote the estimated $16 million in economic returns to the city. Rarely mentioned is the cost of extra policing and the additional burden on emergency medical facilities from an endless tide of drunks and  costumed misfits. In the same way that the Rugby World Cup failed to deliver, the chief beneficiaries of this economic “windfall” only seem to be pub owners and concessionaires selling booze at the stadium venue.

For a growing number of us who are not sports loving extroverts, the Sevens has become an embarrassment and something best avoided. Certainly one does not venture into the central city in the evening unaccompanied, when the event is underway. Even during the daytime, wearing a costume seems to be a licence for intoxicated young men and women to behave in an obnoxious manner that would be unacceptable on any other weekend.

No doubt I will be accused of being petty minded and intolerant. After all, I should be gracious on the occasions I have been verbally abused, had drunks pissing in my driveway and when awoken at 3am by the tuneful refrain of those meandering home. But not standing up against anti-social behaviour is at the foundation of why social problems such as family violence, alcoholism and drink driving persist. I make no apologies for expressing an unpopular viewpoint on this.

 

It’s Life Jim…

Bernard Hickey’s curious opinion piece in the Herald this week reminded me of a famous quip from Star Trek. “It’s life Jim, but not as we know it.” Normally I enjoy Hickey’s rants, because he frequently questions the boring, unimaginative style of economic management and fiscal policy that we currently have to endure in New Zealand. The new Reserve Bank governor shows little sign of demonstrating any more initiative than the previous incumbent, so it’s important that the media stand up and heckle occasionally. But I’m going to call out Hickey on his stance regarding Auckland’s housing crisis, which sits a world apart from the situation across rest of New Zealand.

Advocating for high rise, in-fill housing in central Auckland is a bit like shooting the goose that laid the golden egg. The lack of housing in the region is because large numbers of  economic migrants have been increasingly attracted to Auckland due to it’s unique lifestyle and are arriving at a faster rate than can be accomodated at a time of low investment in housing. However, if the Auckland CBD is transformed into downtown Kowloon, with row upon row of identical, tasteless concrete apartments, the city will presumably become somewhat less attractive to migrants intent on escaping the very same kind of environment. There is a more obvious solution.

Even us Wellingtonians understand that Auckland is (currently) the economic centre of gravity for New Zealand and we certainly endorse the assistance provided as Christchurch struggles to rebuild. Furthermore, with most of the present government senior cabinet members originating from either Auckland or Christchurch regions, it’s been clear for some time where the chief investment focus lies. In the meantime Wellington is languishing with one of the lowest economic growth rates of any region, despite its diverse economic base.

Business activity here in our region powerfully leverages a creative workforce and increasingly invigorates high value, knowledge based export businesses. Provincial areas such as Northland, Gisborne and Wanganui have mild climates and vast tracts of land available, yet are also struggling. Other areas such as Manawatu and Taranaki have held their own, thanks to the dairy boom. But the economic benefits of those returns are no longer shared throughout the community, because of the increasing trend towards corporate farming and centralised processing. What can be done to redress this imbalance?

Surely, if Auckland is bursting at the seams and Christchurch is still awaiting re-building, would it not make sense to actively redirect economic investment and migration to less favoured provincial areas, where it could do most good? Or is that too obvious to contemplate?

Paul Spence is a commentator, technology entrepreneur and is a co-founder of iwantmyname, a New Zealand based global Internet venture. You can follow him on Twitter @GeniusNet

National Standards: The Great March To Mediocrity

The principal at my twelve year old son’s school wrote to parents this week illuminating her media reported comments in relation to the recently published “league tables” of school performance under the government’s misguided “National Standards” programme. Whilst generally supporting the inclusion of a standards based system within the school, the nationwide implementation of the programme has not been uniform, she explained. Consequently output data should not be regarded as reliable, because of differences in methodology across the country. That’s a diplomatic position to adopt, when you have a gun to your head.

Publishing “league tables” is a self-defeating exercise, I’m sure you will agree. But the media never lets facts get in the way of a good headline. There’s something about the way this whole issue has unfolded that makes me wonder what the real agenda is here. Even the title “national standards” is laced with threatening overtones, suggesting a march towards conformity and mindless mediocrity. But there is seemingly very little us concerned parents can do about it now. Typically, the media have chosen not to focus on the more important sociological questions around this issue. I guess teachers and principals just have to suck it up as well, even though many must find the foundational political ideology abhorrent.

The principal’s comments confirm what most intelligent observers already knew. National “standards” (or whatever variant is being used) are entirely subjective and can only possibly give a very approximate indication of where a child sits in relation to his peers. Who dreams this stuff up? Furthermore, because the focus seems to be on “meeting the standard”, rather than excelling, the entire exercise can only ever lead to academic mediocrity. This seems entirely contrary to fulfilling aspirations for better outcomes in key areas such as mathematics and sciences, which will underpin New Zealand’s economic development in the future.

I’m confident my child will succeed in spite of the vast amount of resources being wasted on this folly, so I’m not particularly concerned by what position the school takes. To be quite honest, I think we should instead be paying more attention to nurturing our childrens’ broader social, physical and intellectual development at this age, rather than trying to create a socially divisive and wholly artificial benchmark.

Yes, we parents are sitting up in class and paying attention. Will it make any difference now? Probably not. Even if there is a change of government next year, I doubt that National Standards will be entirely rolled back. Mandarins within the Ministry will see to that. Perhaps we should instead focus our energies on the really big battle looming, as foreshadowed by the merger plans outlined for schools in Christchurch. My child is the third generation in our family to proudly attend an intermediate school. I hope he won’t be the last.

Old Industries Are The Pits

Railways, coal mining and industrial scale manufacturing were all economic activities that had their origins in the 19th Century. This week has not been a good one for anyone employed in those businesses in New Zealand, with widespread redundancies having been announced. The reasons for the collapse of these industries differ, but they share the historical hallmarks of “creative destruction” as expounded by Austrian economist Schumpeter.

Schumpeter was remarkably prescient for a man of his time. Drawing upon the political organisational theories of both Marx and Weber he concluded that innovation was the primary driver of economic change and that every industry was subject to a cycle of emergence, ascendance and decay. He controversially proposed that democracy could never truly empower the ordinary citizen because the electorate were largely ill-informed or ignorant. His predictions that social democratic governments would emerge in the West (rather than socialist revolution) have largely come true.

None of this will be of any consolation to our miners, factory workers and railway engineers. But it does underline precisely why we need to be moving up the value chain through exporting our knowledge rather than relying upon filthy, dangerous and extractive commodity based industries. After more than a decade talking about it, the penny has finally dropped and the government is now attempting to reorganise commercialisation of publicly funded research and has been increasing the investment in research, science and technology. Bullish talk by government ministers about opening up more public land for mineral exploitation also seems to have faded for the time being. That’s why I spend a lot of my time promoting and supporting knowledge based entrepreneurship and emerging technologies and industries.

Paul Spence is a commentator, technology entrepreneur and is a co-founder of iwantmyname, a New Zealand based global Internet venture. You can follow him on Twitter @GeniusNet

Mega Takedown

The Coatesville police raid and subsequent removal of the MegaUpload site should serve as a reminder to us all about how powerful governments and corporations now intend to exercise increasing control of the wild west known as the Internet, through both new legislation and legal prosecutions. It would also be foolish to continue assuming that tiny, remote New Zealand is immune from the growing American political appetite for punishing the alleged purveyors (and consumers) of pirated material.

Irrespective of what you think about Mr Dotcom and the legitimacy of his business, it’s important that the matter be given due process through the Courts and that we do not prejudge the outcome or bow unthinkingly to the will of foreign governments. There are powerful forces at work as witnessed recently with the U.S. senate coming under heavy lobbying pressure from the entertainment industry.

It’s clear that our government want to be cooperative, especially with increasingly frequent connections being made between favourable trade outcomes and the protection of intellectual property rights for American companies. What better place to exercise a show of force than in a small, compliant island state in the south-west Pacific. Why else would such an over-the-top para-military style operation be permitted in the Prime Minister’s own electorate on an individual who had recently received approval for New Zealand residency? It’s astounding.

The SOPA debate and the moral panic around piracy in the United States has largely arisen because of the ongoing failure of the media and entertainment industry to innovate its distribution channels rapidly enough. The rise of file sharing and related sites is simply a symptom of that failure in the marketplace. Without question, creative individuals deserve to be fairly remunerated for their efforts and creative industries should be allowed to make a profit, but not at the expense of Internet freedom.

Police raids and draconian legislation are ultimately more likely to inflame than to discourage. An intolerant approach towards content sharing enterprises in general may also have unintended consequences for “law abiding” users caught up in crackdowns. Perhaps the hackers and hosters should be invited to provide a technological solution to the digital creative sector that everyone can live with?

 

The Day After

On Sunday we woke up to – well pretty much the same flavour of government we had the day before, thanks to voter apathy and one or two quirks of fate. Although Prime Minister Key has predictably adopted the position of “business as usual”, the next three years look anything but usual.

Saturday’s election outcome was fairly consistent with what the polls had been predicting in the week prior. But the returning National government will need to tread warily and not drift too far right. With 48% backing from two thirds of the enrolled electorate meaning only 32% of the adult population has their support. If parties on the Left can better galvanise voters in 2014, the outcome may be very different.

There was some good news in that potentially disruptive, extremist political parties ACT and Mana had their support base obliterated. The one exception was Epsom where greed and stupidity seems to have prevailed. Even the Labour voters in that electorate wasted the opportunity to excise their controversial and divisive former mayor. It may be a moot point, with the ACT party imploding on election night and Banks set to become a National minister in all but name.

The other piece of good news was that the Greens achieved their goal of topping 10% in party votes. An astounding effort after intelligently repositioning themselves over the previous 18 months since the departure of some of their looney fringe elements. The Greens deserved these gains and I hope Key will continue the relationship which has already seen the adoption of some of their more sensible policies. The Greens were also the party that proposed a clean technology fund for New Zealand companies in their manifesto and who have made a commitment to clean up our cow shit infected waterways.

It’s clear that Europe isn’t out of the economic woods yet and China may be on the verge of deflating. A steady hand will be needed on the tiller in the medium term. National would do well to form an inclusive government that sets a cooperative tone for the challenges that lie ahead.

Where Are We Going?

I’ve been trying to make sense lately of an avalanche of economic news and social data that has overtaken us and in particular has implications for the young and disenfranchised worldwide.

On the one hand bankers, politicians and media magnates in suits have got away with crimes that seem only to empower the apparatus of what is looking like an increasingly discredited and ailing economic system. On the other hand looters are venting their anger by targeting the very consumer goods produced by that system. It’s hard to separate the looming economic collapse from the steady erosion of morality across society in general, yet the traditional media at first seem reluctant to make that connection. Perhaps because they are entirely complicit.

Phone tapping and gross invasion of personal privacy were the hallmark of Murdoch’s now discredited tabloids. Perhaps the tattle tale gossip was a tonic aimed squarely at deflecting attention by the masses from the really big issues facing the world? At first glance there may seem to be no connection between double-dipping politicians, eavesdropping media and riots. But England is clearly a nation in crisis on many levels at present and where England goes others in the Eurozone are sure to follow. That has implications for global sentiment, which impacts on small trading nations such as ours.

Now Prime Minister John Key is promoting a poor card for young beneficiaries in an effort to curb welfare dependency and the misappropriation of state funds. Isn’t this precisely the kind of misdirected, pandering politics that brought England to its knees? More importantly, where is the leadership vision that will drive meaningful economic growth, promote education and create jobs for young people instead? There was one good news story however. According to a recent report on the economic cost of failing to invest in early childhood, it turns out we beat Turkey and Mexico in an OECD ranking of social spending in this area. That is simply embarrassing.

Where are we going?

Parting Of The Waters

Matt McCarten’s piece in the Herald last weekend once again laments the passing of waterfront unionism and 1950s style welfare. But it teaches us nothing at all about the real reasons why the exodus to Australia continues unabated, nor about the real challenge that lies ahead.

Our kids aren’t leaving because welfare got dismantled, nor even because silly old men say dumb things in public sometimes. They are leaving because successive governments of all hues have consistently failed to create and pursue an overriding grand vision that diversifies the NZ economy away from relatively low value agricultural commodities and tourism towards applied science, technology and value added services. They are also leaving because we live in a much more open and global society than the one he longs for.

I agree with McCarten that concerted attempts to lower wages for youth are misguided. We actually need to increase per capita income – across the board. That means creating more opportunities to generate wealth and it means cultivating a highly educated workforce that thrives on such opportunity and has a sense of purpose. We can’t compete on size, so we must compete with our brains and our wit instead.

I believe New Zealand is already at a cross roads. Whilst on the one hand we have recently suffered the worst recession and most devastating natural disaster of our lifetimes, we also exist at a time in history when two huge global economic powerhouses are emerging on our doorstep. Instead of lamenting the loss of skills to Australia, we should be working in close partnership with our western cousins to build global companies that are capable of taking our talent into these developing markets. Parting the waters of the Tasman Sea need not be a negative.

Our children have become the first generation of global citizens that have been digitally connected since birth. It may not matter that they reside in Sydney but commute to an office in Auckland or Shanghai. What matters is that we instill a deep desire to build something that creates value for New Zealand. Kiwis should not be discouraged from going global, they should be emboldened. Next week I’m heading to the Ice Ideas conference. I’m looking forward to being inspired by fellow entrepreneurs who have done exactly that.


Wrong Thinking From Right

This week it was reported that our Deputy Prime Minister and Finance Minister gave a speech to a select group of Australian and New Zealand business and governmental leaders. The tone of his presentation made me realise he’s finally thrown in the towel. The government’s astounding vision for New Zealand now apparently involves us becoming the Mexico of the South Pacific, by which our undervalued labour force and weak currency are to be re-branded as “competitive advantages”.

Mind you, I have to credit John English for using the current round of budget cuts as an excuse to quietly terminate Don Brash’s ridiculous 2025 Taskforce on “closing the gap” with Australia. The gap is already wide enough to comfortably sail a small fleet of supertankers through it, so the only sensible thing to do now is work closely with Australia to jointly develop high added value products and services for burgeoning Asian markets. Attempting to compete with or catch up to Australia is so completely the opposite of the approach we should be taking that I barely know where to begin.

Grappling with what is quite possibly the worst economic crisis of our lifetimes; standing amidst the quicksand of quake wreckage and floundering financial institutions, one could perhaps be forgiven for acts of desperation. But within the same spirit of collegiality shown by our cousins from the West Island, who mucked in and helped in Christchurch, now is precisely the time to talk more about regional associations and tighter cooperation and not how we can under-value ourselves in order to steal a few crumbs off our neighbours’ table.

Shaken and Stirred

Politicians and dignitaries emerged in a sombre mood from the meeting house at Waitangi earlier this month, after a local kaumatua stood up and pronounced that a major city would soon be destroyed by an earthquake. This week New Zealand experienced its worst natural disaster of modern times when Christchurch, our second largest city, was badly damaged by a devastating quake. After a tough year in 2010, this event is likely to have severe repercussions for the entire nation both in economic terms and for morale in general.

It was bad enough that Christchurch took a hit in September, but this event is much worse. Officials are already talking about the possibility of a final death toll in the hundreds and over $6 billion in repairs being needed for the stricken city. Residents must be shocked at how their lives have been turned upside down. For the rest of us, the situation seems surreal and we feel powerless to assist. But this is the scenario we’ve been taught to prepare for all our lives. We just never expected it to happen in the garden city.

Seismic and volcanic upheavals are a fact of life in a country like ours; we sit astride two very active tectonic plates. The forces that built this land can also destroy it. In the short term, the remainder of the nation will need to step up to support our southern cousins. That could mean some form of additional taxation. It will almost certainly mean a dent in our fragile economic recovery. Apart from the pure financial cost, it is hard to focus on productive work when friends and family are suffering and horrifying images of destruction are being broadcast into our homes. If we are to help Christchurch rebuild, we must ensure economic growth continues throughout New Zealand.

* We’ve compiled a list of web-based resources on the iWantMyName NZ blog, for anyone who is worried about missing persons or is keen to help in some way.