INDEPENDENCE campaigners should be wary of looking to New Zealand as an economic model to follow, one of the country’s politicians has said.
Green Party MP Gareth Hughes warned it had gone from being “one of the most egalitarian countries to one of the most unequal” in his lifetime, but was now changing direction under a new government.
It comes after the publication of the SNP’s long-awaited blueprint for independence, which drew heavily from the examples set by other small, successful countries.
The authors of the Growth Commission report said their economic model “learns in particular from Denmark, Finland and New Zealand”, while a section of the document was even found to be identical to an old New Zealand Treasury paper.
READ MORE: Nicola Sturgeon says Growth Commission could win over No voters
But Mr Hughes, who has family connections to Scotland, pointed to his country’s rising inequality under previous administrations, which had acted like a “handbrake” to economic growth.
He said: “It’s flattering for my country to be singled-out but my message to my long-lost Scottish relatives is: it’s not the size of the country – it’s what you do with it that matters.
“The real issue isn’t the size of a country but what its policies are and the direction it’s going in.
“In my lifetime New Zealand went from one of the most state-involved economies to one of the most market-driven and neoliberal. We went from one of the most egalitarian countries to one of the most unequal.
“We’ve seen a dramatic rise in homelessness, precarious working conditions and child poverty. For the last three decades New Zealand has focused on light-handed regulation, a smaller role for the state, punitive welfare reforms and employer-friendly employment law.”
He continued: “However since September 2017 with the election of a new Government we have embarked on a new direction.
“We’ve achieved the biggest wealth transfer in a generation. Our national Budget will no longer myopically focus on Gross Domestic Product. The country has set an ambitious zero carbon goal by 2050.
“After decades of a trickle-down, austerity-ideology we’re changing direction. It’s flattering to be looked at as an exemplar by Scottish researchers but while you look at where we’ve been, please also look to where we are going.”
The SNP’s Growth Commission report has come under fire from some independence supporters after recommending Scotland keep the pound for at least 10 years, while also limiting public spending in an attempt to reduce the deficit.
It cites New Zealand as an example of a country which has “implemented change”, adding that it “reformed its economy extensively in the 1980s and early 1990s, placing it on a stronger footing”.
Scottish Greens co-convener Patrick Harvie said Mr Hughes' comments should “serve as a warning to the SNP leadership about their faith in trickle-down economics but also as a warning to Labour that the case for a socially-just independent Scotland is very much alive”.
READ MORE: Nicola Sturgeon branded 'delusional' amid Growth report splits
SNP MSP Kate Forbes said the party welcomed Mr Hughes’ comments, noting he "makes clear that the size of a nation is no impediment to success, describing claims to the contrary as a ‘red herring’".
She added: “Scotland is a wealthy nation with abundant resources, but other nations of similar size do better with fewer resources. With independence we can, and must, bridge that gap.
“At no point does the report advocate the wholesale transplant of any one economic model in its entirety – rather we look at what other countries do better across a range of policies and initiatives.
"For example, if gender inequality in Scotland was reduced to the level of New Zealand, Scottish GDP could grow by £6.1 billion and the net impact on public finances could be up to £2.5 billion.”
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