Prime Minister John Key says he isn't going to "write New Zealand off" just because Reserve Bank Governor Alan Bollard says the Government's goal of closing the wage gap with Australia is unrealistic.Dr Bollard said yesterday he didn't think the
Prime Minister John Key says he isn't going to "write New Zealand off" just because Reserve Bank Governor Alan Bollard says the Government's goal of closing the wage gap with Australia is unrealistic.
Dr Bollard said yesterday he didn't think the gap could be closed because Australia was unusually blessed with minerals which were sprinkled across its surface in easily accessible places where they could be mined without anyone becoming upset.
The Government's target is to close the wage gap, which is running at about 30 percent, by 2025.
Mr Key said at his post-cabinet press conference Dr Bollard's comments about Australia's mineral wealth could not be denied.
"Only a fool would attempt to say otherwise," Mr Key said.
"Does that mean though that New Zealand can't close the gap...I would say no.
"I think there are a lot of different factors, New Zealand for instance has an abundance of water and Australia does not."
Mr Key said that 30 years ago Australia had the same resources it had today, and wage rates were equal.
"It's a substantial challenge but I don't think we should be as fatalistic as to say we can't do it," he said.
"There's plenty of capacity for us to use water more effectively. Irrigation presents huge opportunities, there's I think a million hectares of land that could be irrigated properly and that would have quite a substantial impact on our GDP."
Earlier today Mr Key described Dr Bollard's comments as negative and wrong.
"It's a fairly negative view about New Zealand's future and I don't agree with it," he said.
