• Jumping the Gun – and the Flag

    I voted in the flag referendum today. I didn’t particularly want to, so I did it without great enthusiasm. I did it as a matter of civic duty.

    I can see why some people want to change the flag. But I like it, mainly because I know it and it’s familiar and comforting. I’m used to thinking “that’s our flag” and feeling patriotic when I see it. I don’t expect flags to do much more that – I’ve never understood the fervour that some people, particularly Americans, feel for their flag. I don’t expect the flag to be a triumph of design or to burst with significance or to make my chest swell with national pride. A flag is just a flag.

    I agree with the current flag’s critics that it suffers a couple of quite significant drawbacks. It’s definitely an oddity that it includes the flag of another nation. The Union Jack is a relic of our past, and even relics have their sell-by date; this one is surely getting perilously close. On the other hand, flags are not logos or brands, requiring to be constantly up-dated. It’s not unreasonable that an important part of our history – one that is almost deliberately played down today – should have made an appearance when the flag was adopted over a century ago and that some reminder of that past should still survive. And, as those of my generation will attest, that reminder was still of some significance during some of the most important moments of our history. In any case, it’s not just a relic; it accurately reflects, like it or not, our current constitutional arrangements and our links with the British crown.

    The second drawback is its similarity to the Australian flag. The confusion this engenders can only play to the constant tendency overseas to lump us in with the Aussies in what is a barely recognised “little brother” role if we are lucky. Perhaps it’s the Aussies who should break that particular deadlock and strike out for a new identity?

    That brings me to the question of timing. For the reasons I mention, I recognise the case for a new flag and I’m not opposed to deciding on one in the fullness of time. But, while some enthusiasts have been campaigning for a few years, I detected – and still do not detect – an upswell of national feeling that now is the moment – that we must not wait another day before making the change.

    There is far from a consensus, in other words, on the need to make what – if and when it is made – will be a momentous decision. It is that absence of a demand for change that leads so many of us, I suspect, to feel a sense of vague irritation that this is a manufactured issue that has been foisted on us – at considerable cost, time and trouble, and at the expense of other more important matters. Why unnecessarily invent an issue that can, at this point, only divide the nation?

    There will come a time when the issue of the flag will move of its own accord to the top of the agenda. We can’t foresee exactly when, but we’ll know when it happens, and it could be sooner than is currently thought. In the meantime, there is a strong sense that someone has jumped the gun.

    If I were to hazard a guess, I would look to a point when Queen Elizabeth II’s record-breaking reign has ended, and when the move to become a republic has taken its virtually inevitable course. When and if that happens, the case for changing the flag will be undeniable and the public will rightly recognise the need to do so.

    This sense that the timing is premature is supported by the fact that efforts are currently having to be made to drum up support and interest – at further cost no doubt – when most people would, at this juncture in our affairs, rather not be bothered. And it is further bolstered by the botched nature of the process that has produced the unconvincing alternative design.

    When we finally decide that the time is right for a new flag, we should at least take the design of the new flag seriously. The panel appointed to drive the current process comprised excellent people, but none had any design experience or skill. Public approval for a new design is of course required, but the public does not have the competence to produce properly designed candidates from which to choose.

    The shakiness of the process was demonstrated when it took only a minor campaign in the social media to persuade the Prime Minister to undermine the validity of the original short list and to add to an already uninspiring collection a fifth candidate of no particular merit.

    I expect – or at least hope – to live long enough to see a brilliant new flag adopted by Aotearoa/New Zealand. But that is not for today.

    Bryan Gould

    10 March 2016

     

  • Equal Pay for Work of Equal Value

    Many of us have become enured to reports from around the world of terrible crimes against women – not just acts of violence against individuals but damaging and degrading actions against women in general which seem to be expressions of belief systems, cultural or religious, that thankfully have no place in our society.

    New Zealand has long enjoyed a reputation, since we pioneered full voting rights for women, as a country where women have equal rights and are full members of society. But if we want to retain that reputation, we need to be vigilant. And, while we are mercifully spared the worst excesses of discrimination and ill-treatment found elsewhere, ­­our current performance suggests that there are good reasons for that vigilance.

    We should acknowledge, for example, our distressing record on domestic violence. And we should understand, too, that for every instance of physical or sexual abuse that is reported, there will be others that are not reported – cases of women damaged, often psychologically, trapped in abusive relationships, too frightened and beaten down to do anything about it.

    We remain, in other words, a society that fails in important respects to treat women properly. Discrimination against women, here as elsewhere, remains the most pervasive and significant manifestation of unfair treatment to be found worldwide.

    One aspect of that unfair treatment is increasingly identified, but not acted upon. Our failure to pay women at the same rate as we pay men may not seem comparable to the serious abuses women suffer in other respects, but it is nevertheless an expression of a deeply entrenched attitude in our society.

    The struggle for equal pay will be seen one day in retrospect as equivalent to the battle for women’s suffrage. In the meantime, however, it remains evidence of a refusal to acknowledge that women have the same rights as men, or that a contribution made by a woman is worth as much as the same contribution made by a man.

    Women’s pay in New Zealand is still on average substantially below that of men; and, as a recent survey has revealed, that is as true in the public sector as it is in the economy as a whole, with the worst public sector offenders in the State Services Commission and the Crown Law Office maintaining a gap as high as 39%.

    A landmark victory was, however, recently achieved in the Court of Appeal. A care worker, Kristine Bartlett, sued her employers, Terranova, for their failure to pay her at the rate that a man would receive for work requiring a similar level of skill and commitment.

    The employers offered a familiar defence. The low rate paid to Kristine was not, they said, because she was a woman but was because the job itself commanded only a low rate of pay. The fact that most of those paid at that low rate were women was purely coincidental; it was not their fault that women happened to choose low-paid jobs.

    The Employment Court would have none of that argument, and the Court of Appeal agreed. They were clear that the job of a carer required a level of skill and commitment, and provided an economic and social value, that were comparable to other jobs that were mainly performed by men. They found that Kristine’s pay, and that of her co-workers, male or female, was low because the work was mainly done by women, and not because it was of intrinsically lower value than jobs done mainly by men.

    The principle of fair remuneration and equal pay as defined in the Equal Pay Act 1972 required, they said, that there should be the same pay for jobs of the same value. Kristine’s pay was lower than it should be, in other words, because her job was wrongly undervalued on the basis that it was mainly done by women.

    The decision was of course welcomed by care workers and their union, but was condemned by employers and business more generally on the familiar ground that an increase in pay as required by the Court of Appeal’s interpretation of the meaning of equal pay could not be afforded. A similar objection was made to the abolition of slavery.

    The really interesting response, however, came from the government. It has, of course, a vested interest, since the wages paid by rest home operators are funded by government grant. The government’s constant drive to cut public spending means that the grant is kept as low as possible. A move to equal pay as defined by the Court of Appeal would not be welcome.

    So, the government decided that it would not allow the Court of Appeal decision to stand. A working party was set up to consider how policy on equal pay should be framed – and presumably how the Court of Appeal decision could be watered down. It will report next month.

    The working party comprises four government appointees, four business representatives, and six trade union representatives, thereby providing an inbuilt 8-6 majority for limiting the effect of the Court of Appeal decision. There are no prizes for guessing what the outcome will be. We are still a long way, in other words, from achieving anything that can really be called equal pay.

    Bryan Gould

    17 February 2016

  • Proud to be a Socialist?

    An amazing thing is happening in the primary elections for the American presidency – and it’s not Donald Trump. Mr Trump, in any case, “doesn’t like losers” and, having lost in Iowa, should presumably now be “re-considering his position”.

    The amazing thing is happening on the other side of the political divide. The Iowa primary ended in a virtual dead-heat between Hillary Clinton, the Democratic front-runner and assumed shoo-in, and 74 year-old Bernie Sanders, the Senator from Vermont, who started the race as a virtual no-hoper.

    Hillary Clinton, by far the best-known of the Democratic candidates, carries some baggage as a consequence, and there will be those who claim to have foreseen that her less than spotless record would eventually catch up her. But the real surprise is not her relatively poor showing, but the rise to prominence of the elderly and hitherto little-known Bernie Sanders.

    It has been widely assumed that Senator Sanders is to all intents and purposes unelectable.   His age and relative obscurity would in any case count against him, but the real disqualification, it is believed, is that he is a self-declared socialist.

    It is hard to think of a label that would more surely destroy a candidate’s chances in an American primary election. This is a country in whose politics even the term “liberal” is a dirty word and is used as an attack weapon in much of the political discourse.

    A “socialist” is even further beyond the pale. The political right in the US has invested huge effort and resources in convincing American voters that socialism is akin to – even identical with – communism, and is fundamentally un-American.

    No candidate in his or her right (or even left) mind would willingly allow even a whiff of such a label to taint their campaign. So how does a candidate who not only embraces it and uses it proudly as a banner manage to do so well with the voters – in Iowa and possibly elsewhere as well?

    He is, after all, flying in the face of conventional wisdom, not only in the US but in much of the English-speaking world. Left-of-centre politicians in New Zealand, the UK, Australia and Canada, long ago conceded that to be labelled as a socialist is the kiss of death.

    That concession is, of course, all of a piece with the loss of intellectual self-confidence that has afflicted the left in the English-speaking democracies. Not content with failing to challenge the right on their analysis of what constitutes a successful economic policy, or of how a strong and healthy society can tolerate growing inequality, or of what is the proper role of government, left politicians have conceded the language of politics as well.

    The banner that was once flown proudly by those who proclaimed the virtues of greater equality, of a fair deal for all, of an inclusive economy that allows everyone to contribute and to derive the benefit from being members of society has now been fearfully disowned.

    So, what explains the surprising courage that Bernie Sanders has shown, and the success that, so far at least, he has enjoyed? Even if his campaign were to stall from this point on, and he were to return to decent obscurity, how are we to account for the fact that his willingness to describe himself as a socialist did not immediately knock him out of the race?

    The answer lies in listening carefully to what he says. He hasn’t used his socialism as either a sword or a shield. He has instead carefully explained what he means by it. He has assumed, rightly it seems, that people are willing to look behind the label – a label whose meaning has consistently been misrepresented to them – and to understand what it really means.

    When Bernie Sanders says he wants “an economy that serves the interests of working people and not the billionaire class”, when he laments the plight of graduates who end up with low-paid jobs and deep in debt, when he commits to equal pay for women, he recognises that the natural tendency of a “free-market” economy is to concentrate wealth and power in fewer and fewer hands, leaving the majority to fight amongst themselves for what is left.

    His message – that unless democratic government intervenes to regulate the “free” market and its outcomes, the rich will get richer and the poor poorer – is, it seems, well understood by a large swathe of more thoughtful voters. In describing himself as a socialist – someone who sees that we are all in this together and that there is such a thing as society – he also creates the advantage for himself of pointing up how much he differs from Donald Trump.

    Trump is of course the archetypal “free” marketer. He is a cartoon version, a parody, of what the “free “market means. He is a self-obsessed “winner”, he hates “losers”, and he is used to grabbing what he can and devil take the hindmost.

    Bernie Sanders shows that people will respond to his very different message, but only if they hear it – and that requires someone with the courage to deliver it to them.   Some of that courage would not come amiss in other western democracies.

    Bryan Gould

    3 February 2016

     

     

     

  • Investing in Our Future

    I was one of the lucky ones. In my day, universities, like primary and secondary schools, charged no fees. With the aid of a scholarship, working in dairy factories during the holidays, and my parents chipping in, I completed my education debt-free.

    But, the sceptics will argue, things have changed since then. The numbers going on to university in those days were so small that the cost could easily be borne by the taxpayer. The cost has risen so far today, it is said, that it would be unfair and impracticable to saddle the taxpayer with it.

    Paradoxically, however, the case for a free tertiary education has over recent decades actually got stronger, rather than weaker. Whereas in the old days, tertiary education could be easily distinguished from the primary and secondary schools in the compulsory sector by the fact that only a small and privileged minority stayed on the education conveyor belt and went on to university, that distinction is now much harder to maintain.

    The fact is that virtually all Kiwis will, at some point in their lives, have some experience of tertiary education. The conveyor belt will still operate for school leavers but it will take them not only to university but to polytechnics, wananga, private academies, apprenticeships and other forms of vocational training.

    For those Kiwis who may not go straight on to post-secondary school education, tertiary education will become an option at different and later stages of their lives; nor will their progression through the education world follow a standard pattern. Someone with a Ph.D. may return to education later in life to do a certificate or diploma course in something quite different.

    Tertiary education, in other words, is no longer so different from the compulsory sector. It is to all intents and purposes now universal and comprehensive. It is no longer the preserve of the privileged. The case for sparing the taxpayer the cost of tertiary education by applying a “user pays” principle looks pretty shaky when the user and the taxpayer are the same people.

    The widely accepted argument that primary and secondary education bring such benefits to the whole of society that they should be publicly funded must, in other words, now be extended to tertiary education as well. Our hesitation about doing so is the product of less than clear thinking.

    When I returned to New Zealand in 1994, a body called the Todd Working Party had been set up to decide how the cost of tertiary education should be divided between the public and private purse. The Working Party members spent many no doubt innocently enjoyable hours debating what proportion of the benefits of tertiary education could be attributed to the public good and how much to personal gain.

    Some said the proportions were about 50-50. Others favoured one side of the equation rather than another. All persisted in the nonsense that it was a zero-sum game which implied the ridiculous proposition that, the higher the perceived personal benefit, the lower must be the public good.

    The truth is that the undeniable public gain from investing in tertiary education can only be achieved through raising the educational levels of individuals, just as it is with compulsory education – the two are necessarily complementary rather than competing. A higher general level of education means better educated individuals but also a better-functioning and more successful society – one able to take a wider and longer-term view and achieve a deeper understanding.

    As most people instinctively realise, the great economic and social benefits of education can be achieved only if we are prepared to invest in our future. When that investment is made, the benefits are felt by everyone in society. For an investment that is so important, and whose benefits are so widely shared, what could be more sensible than to fund it through the public purse?

    The debate about whether tertiary education should be free (that is, taxpayer-funded) or not resolves itself into two main issues. First, is the ramshackle and problematic student loan scheme the best, fairest and administratively most straightforward way of funding tertiary education? The scheme is administratively complex and requires a substantial bureaucracy to allocate and track over decades the loans undertaken by tens of thousands of students.

    It also has a deterrent effect on potential students; and since the debts incurred by virtue of the scheme continue to weigh heavily on individual budgets and to deter expensively educated young Kiwis in particular from returning to New Zealand, so that we are denied the benefits of the education we have funded, the answer to that question would seem to be conclusively in the negative.

    The second question is not, as so often suggested, can we afford it, but what priority should we give it? The cost to taxpayers might require us to forego other purposes of public spending (though it would be more than offset by savings to thousands of students and their families). The real question is, can we afford not to ensure that our future generations are educated to the level that enables us – as a society – to compete in an increasingly global environment?

    Bryan Gould

    2 February 2016

     

     

     

  • A Second Bite at the Cherry

    Audrey Young did us all a service when she laid out in yesterday’s Herald the origins of the Trans Pacific Partnership (TPP). She goes back to 1998 to describe how New Zealand’s keenness for a free trade agreement with the US prompted us to join a small group of Asian and Pacific countries in pressing for what eventually became a much larger group committed to free trade across the region.

    As an exercise in genealogy, however, her account is sadly deficient. It does not go back far enough and it looks at only one part of the TPP’s family tree.

    How many people remember something called the Multilateral Agreement on Investment (MAI)? It is scarcely recalled now because it long ago passed, unmourned, into history.

    But in 1995, the MAI appeared as a draft agreement, negotiated by OECD members. As Wikipedia records “it sought to develop multilateral rules that would ensure that international investment was governed in a more systematic and uniform way between states.”

    It was originally worked on in secret, but when the draft was leaked in 1997, it drew widespread criticism from civil society groups and developing countries, particularly over the perceived intention and danger that the agreement would make it difficult for governments to regulate foreign investors.

    The protesters saw the agreement as a deliberate attempt to create not just a level playing field for investors (as the MAI’s proponents argued) but a free-for-all in which multinational corporations would be able to do whatever they liked and could cock a snook (whatever a snook is) at elected governments.

    The strength of that global opposition, through protests, rallies and public debate, was so great that in 1998, the French government took fright and withdrew the draft. Protesters around the world heaved a sigh of relief.

    But the big business interests were not done yet. Some immediately realised that there was another way to skin the cat. Instead of talking about investment, they reasoned, it might be better to talk about trade. They had recognised, in any case, that there were already in existence a number of trade agreements that contained the kind of provisions they were looking for.

    The Germans, for example, unwilling to trust the judicial systems of third-world countries, had begun the practice of inserting into trade agreements with such countries provisions that disputes should be resolved in German courts, or possibly in specially constituted tribunals. And there was the precedent of the North American Free Trade Agreement (NAFTA) which had introduced in 1994 just such a provision into what looked like an ordinary free trade agreement.

    It was, after all, easy to agree that free trade required that all parties should operate on a level playing field. It followed that anything that regulated or restrained the free play of market forces – and that included not just market arrangements such as cartels and price fixing but also action by governments – could be said to tilt the playing field.

    What could be more natural, then, that a free trade agreement should include provisions to allow corporations to challenge individual governments if they tried to implement policies that would make life difficult for business interests? And wouldn’t the chances of winning over public opinion be much greater if those provisions could be carefully slid into what looked like a free trade agreement, since didn’t everyone think that free trade must be a good thing?

    That is why, under the TPP, attempts to organise the market, through producer cooperatives like Fonterra and Zespri, or monopsonistic buying arrangements like Pharmac, are under threat. That is why a government that wanted to pursue policies in the interests of better health or protecting the environment could find itself before an international business tribunal at the behest of international companies that argued that such policies might reduce their profits.

    The TPP is, in other words, a renewed attempt to succeed where the MAI failed. Globalisation has, after all, proceeded apace since 1998, and today’s voters are now much more used to the idea that business interests must always prevail – even over democratically elected governments.

    It is the TPP’s dual parentage that makes it not just a free trade agreement (albeit one that delivers surprisingly few free trade benefits) but also a charter for multinational investors. The pity of it is that there is of course a pressing need for an international agreement on the rights and duties of international investors – a charter that establishes the duty to observe the laws and regulations of the host country – but the TPP takes us in the opposite direction.

    It is that dual parentage, too, that explains why so many commentators on the TPP talk past each other. Those who see nothing but a free trade agreement proclaim its benefits; those who look deeper and understand the genealogy warn against the loss of democracy.

    The disputants, though, are not all well-intentioned, even if misguided. The people we should really be worried about are those who understand the situation perfectly and who talk the language of free trade while deliberately seeking a much less benign outcome.

    Bryan Gould

    1 February 2016