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D ECEMBER 2006
Sir John Anderson outlines his challenges
Sir John Anderson KBE, seen here addressing MPs and corporate members and guests at the New Zealand Business and Parliament Trust’s annual MPs’
Business Briefing in Parliament’s Banquet Hall.
The annual MPs’ Business Briefing was thought-provoking address entitled and it also appears on the Trust’s website
held on Wednesday 11 October in the “Forces, Consequences and the Future”. which can be found www.iabp.org/nz.
Banquet Hall in Parliament’s Executive Drawing on his wide experience in This year’s MPs’ Business Briefing was
Wing. business, the environment and the held in the recently refurbished Banquet
These Briefings are an occasion for a community, Sir John engaged the Hall in the Executive Wing (Beehive) and
speaker of note to address the Trust’s audience of parliamentarians and business Sir John’s address was followed by a meal
parliamentary and corporate members on representatives with a series of historical held in the Banquet Hall.
some topic of importance on “snapshots” which he then linked together In addition to our own parliamentarians,
developments in the business world and to illustrate the paths we have traversed as two visiting parliamentarians from the
their impact in the political scene. a nation and to pose questions about our Irish Parliament (Oireachtas) attended the
This year’s address was given by Sir future directions. event, accompanied by the Honorary
John Anderson KBE who delivered a The full text of Sir John’s address is Consul General of Ireland in New
published as a supplement to this Bulletin Zealand.
The Trust extends Season’s Greetings and best wishes for 2007
to all its members and associates
and thanks you for your support during the past year
November Parliamentary Seminar
“I have had a great day!” The majority of the participants said they
found the day very informative with a good
the parliamentary environment, including
the demands and constraints and their
wrote Lanice McMillan of the Nuance
balance of speakers. One of those responsibilities to their parties and other
Group in the evaluation questionnaire she
attending said how much he enjoyed the parliamentary colleagues.
completed at the end of the one-day
juxtaposition of viewing a select committee
Seminar held in Parliament’s Legislative The speakers at the November seminar
meeting in action versus Question Time.
Council Chamber on Wednesday were:
However, a number also expressed
8 November.
disappointment that more time had not Hon Margaret Wilson - Speaker of the House
And so it seemed, did the majority of the been allocated to witnessing both. Mary Harris - Deputy Clerk of the House
attendees at the seminar. Lanice, like many
The Trust acknowledges the popularity of Tim Barnett - Senior Government Whip
of the other 34 representatives of the
the experience of both these events but
Trust’s corporate membership who Lindsay Tisch - Senior National Party Whip
unfortunately is constrained by time and
attended, said that the seminar provided “a
only able to give seminar participants a Hon Mark Burton - Deputy Leader of the House
wonderful insight into the roles of MPs” (deputising for the Prime Minister)
very ‘small taste’ of both within the whole
and she was grateful to have had the
day’s programme, which is designed to Gerry Brownlee - Deputy Leader of the
opportunity to attend.
give an the business community an overall Opposition
It was extremely heartening to those insight into the work of parliamentarians, Hon Peter Dunne - Leader of United Future NZ
involved in the organisation of the seminar with particular emphasis on how
to hear how much those who attended Dr Pita Sharples - Co-Leader of the Mäori Party
government is exercised through
enjoyed the day’s programme and how Parliament. Hon David Cunliffe - Minister of Immigration
worthwhile they found it. Even those who Shane Jones - first-term Labour List MP
The Trust is particularly fortunate to have
had some knowledge of Parliament before
the support of very senior members of the Jo Goodhew - first-term National MP for Aoraki
attending said how much their knowledge
House who are more than happy to give
had been increased and many said they Marie McNicholas - chairperson of the
their time to speak frankly and Parliamentary Press Gallery.
would firmly recommend to their
informatively about their own roles within
colleagues.
Seminar participants seen here in the Debating Chamber during their brief tour of Parliament House.
The participants were joined at lunchtime by the following parliamentary speakers as well as some Associate Members of the Trust:
Tim Barnett (speaker) Jo Goodhew (speaker) Pita Paraone Lindsay Tisch (speaker)
Gordon Copeland Ann Hartley Ross Robertson and Anne Tolley.
Hon Peter Dunne (speaker) Darren Hughes Eric Roy
November Parliamentary Seminar (continued)
Mary Harris, Deputy Clerk of the House,
seen here speaking to participants on “The
Business of the House” at the shared session
with Senior National Party Whip, Lindsay
Tisch (obscured) and Senior Government
Whip, Tim Barnett (far right).
Also seated at the table is Barry Dineen,
chairman of the Trust.
Hon Mark Burton, Deputy Leader of the House, speaks to participants on the session “Exercising Govern-
ment through Parliament”. Mr Burton was deputising for the Prime Minister who was unavailable to
speak on the day due to other commitments..
Marie McNicholas, chairperson of the Press Gallery
talks on “Reporting Parliament”.
First-term National MP for Aoraki, Jo Goodhew, talks on her role
Dr Pita Sharples, Co-Leader of as a relatively new opposition MP on the back benches, covering
the Mäori Party, addressing par- pressure groups and lobbying, and the effectiveness and limita- SEMINAR PARTICIPANTS
ticipants on “MMP at Work”. tions of an MP.
Alison Bamford - Southern Cross Healthcare
Steven Bartholomeusz- Shell New Zealand
MPs Business Study Attachments
Steve Bielby - Vector
Cynthia Brophy - Transpower New Zealand
Lucy Budding - Russell McVeagh
– a great result for 2006 Clive Bull
Mike Caird
- Vector
- ABN AMRO
Brian Casey - Fonterra
With a record number of applications from 23 members of Parliament interested in
Linden Clark - Radio New Zealand
undertaking a study attachment with one of the Trust’s corporate members, it was
Shaun Drummond - Television New Zealand
always going to be a challenge to fully achieve those attachments in one year. So it has
Claire Falck - Rio Tinto Aluminium NZ
proved.
Bridget Fitzpatrick - GlaxoSmithKline
As the parliamentary year has progressed, the parliamentary demands on members’ James Gossage - Deloitte
time and hence availability to undertake an attachment has meant that not all of the Liz Hampton - IBM New Zealand
attachments have been able to go ahead. Greg Harford - New Zealand Post
However the following twelve members of Parliament will have completed their Shannon Hanrahan - SKYCITY
attachments by year’s end: John Johnston - Westpac
Tim Barnett - Air New Zealand Sue Kedgley - Foodstuffs Michelle Kong - Telecom New Zealand
* David Bennett - Westpac * Colin King - Auckland International Airport Sheryl Kurte - Merck Sharp & Dohme
Martin Kwan - EDS New Zealand
* Mark Blumsky - Vodafone Moana Mackay - SKYCITY Entertainment Janine Legarth - NZ Lotteries Commission
Steve Chadwick - Fonterra Paul Swain - Vector David Libeau - Qantas Airways
* Tim Groser - TVNZ *Chris Tremain - Lion Nathan Nic McCondach - Genesis Energy
* Nathan Guy - Genesis Energy *Judy Turner - TVNZ Lanice McMillan - Nuance Group
Murray Needham - Televison New Zealand
*first time attachment
Cheri Nelson - NZ Lotteries Commission
Of the remaining applications, 5 have been deferred to 2007, arrangements for 3 are Debbie Noon - IBM New Zealand
still being finalized and in 3 cases the decision has been made not to proceed with an Chris Reid - Bank of New Zealand
attachment at this time. Paul Regtien - Southern Cross Healthcare
The Trust is very appreciative of all of the corporate members who have been Lynne Sijbrant - Russell McVeagh
involved with this year’s applications for the time and effort they have given to this Dirk Tulp - Compass Group
important part of the Trust’s overall study programmes. Without exception, the Peter van Cingel - New Zealand Refining Co
feedback from the members who have completed their attachments has strongly Jeff Walker - Southland Building Society
emphasized the value to them of the attachment and their strong advocacy on the worth Mark Wilson - TelstraClear
of this programme for Members of Parliament. Geoff Willetts - Telecom New Zealand
November President’s Dinner
The third and last President’s Dinner of 2006 was held on Tuesday 14 November,
hosted by the Speaker, Hon Margaret Wilson, in her apartment. During the course
of the evening, Madam Speaker thanked each guest for his or her support of the
THE NEW ZEALAND BUSINESS & PARLIAMENT TRUST Trust and outlined past and future Trust developments and activities.
“Advancing business understanding of Parliament and
parliamentarians’ understanding of business”
Patron - Sir Patrick Goodman PCNZM CBE
President Chairman
Hon Margaret Wilson MP Barry Dineen
Trustees
Simon Allen Rodney Hide MP
Hon Jim Anderton MP John Key MP
Rt Hon Helen Clark MP June McCabe*
Hon David Cunliffe MP* Kerry McDonald*
Barry Dineen* Rt Hon Winston Peters MP
Hon Peter Dunne MP* Dr Pita Sharples CBE MP JP
Jeanette Fitzsimons MP Sir Dryden Spring
John Goulter DCNZM JP* Lindsay Tisch MP JP*
*Board of Management
Secretariat
John O’Sullivan CNZM LVO JP Executive Director*
Diana Litton Programme Coordinator
Seen here with Madam Speaker are (left to right) Barry Dineen (Chairman of the Trust), Steve
Corporate Members Murray (EDS New Zealand), Hon Dr Michael Cullen (Deputy Prime Minister), John Weeds
(Compass Group), Tony Gibson (Maersk New Zealand), Lloyd Morrison, (Infratil), Jeanette
ABN AMRO New Zealand Nuance Group NZ Fitzsimons, (Parliamentary Leader of the Green Party), Todd McLeay (New Zealand Lotteries
Air New Zealand NZ Lotteries Commission Commission), and Ross Smith (Southland Building Society).
Alliance Group NZ Post Also present at the dinner was John O’Sullivan (Executive Director of the Trust).
Amway of New Zealand NZ Racing Board
Auckland International Airport NZ Refining Company
Proposed Programme for 2007
Bank of New Zealand Qantas Airways
Beca Group Radio New Zealand
Cisco Systems NZ Rio Tinto Aluminium (NZ)
Compass Group Russell McVeagh
Deloitte Shell New Zealand
EDS New Zealand SKYCITY Entertainment Group
Fonterra Co-operative Group Southern Cross Healthcare
Foodstuffs NZ Southland Building Society
Genesis Energy Steel & Tube Holdings
GlaxoSmithKline NZ Talley’s Fisheries
Holcim New Zealand Te Ohu Kai Moana
IBM NZ Telecom New Zealand
Infratil Ltd Television New Zealand " #$ %
!
Kensington Swan TelstraClear
Lion Nathan New Zealand Todd Corporation
McDonald’s Restaurants NZ Transpower New Zealand
Maersk New Zealand Vector %
Meat & Wool New Zealand Vodafone New Zealand &
Merck Sharp & Dohme (NZ) Westpac
% (
Associate Members
' !"
Shane Ardern MP Dr Paul Hutchison MP
Hon Rick Barker MP Sue Kedgley MP
Tim Barnett MP Hon Annette King MP %
Mark Blumsky MP Colin King MP
Sue Bradford MP Hon Winnie Laban MP *
) ' '+
Gerry Brownlee MP Moana Mackey MP
Hon David Carter MP Hon Steve Maharey MP
% (
John Carter MP Hon Nanaia Mahuta MP
' ,! ' '+
* !"
Steve Chadwick MP Hon Trevor Mallard MP
Dr Ashraf Choudhary MP Dr Wayne Mapp MP
Gordon Copeland MP Ron Mark MP
Hon Clayton Cosgrove MP Hon Damien O’Connor MP %(" " #
Hon Dr Michael Cullen MP Pita Paraone MP ' ! $
# %
Hon David Cunliffe MP Jill Pettis MP !
$ +-
Hon Lianne Dalziel MP Simon Power MP
Hon Harry Duynhoven MP Ross Robertson MP
Hon Ruth Dyson MP Eric Roy MP %
Jeanette Fitzsimons MP Dr the Hon Nick Smith MP /
. ! 0-
Martin Gallagher MP Hon Paul Swain MP
Sandra Goudie MP Nandor Tanczos MP
Tim Groser MP Lindsay Tisch MP JP % (
Nathan Guy MP Hon Judith Tizard MP ' 1 ! 0-
/ !"
Ann Hartley MP JP Anne Tolley MP
Phil Heatley MP Chris Tremain MP
Hon Marian Hobbs MP Judy Turner MP
Hon Pete Hodgson MP Dianne Yates MP Published by
Darren Hughes MP The New Zealand Business and Parliament Trust
Parliament Buildings, Wellington 6001
Telephone: 04 472 5365, Fax: 04 472 2016, Email: NZBPT@xtra.co.nz, Website: www.iabp.org/nz
Address by Sir John Anderson at the New Zealand Business & Parliament Trust’s 2006 MPs’ Business Briefing
“FORCES, CONSEQUENCES AND THE FUTURE”
The Hon. Margaret Wilson, Barry The gold standard had been Snapshot
Dineen, Members of Parliament and dropped, oil prices had surged, and
members of the New Zealand inflation’s bloated taint was spreading
Business and Parliament Trust. its tentacles into unsuspecting nations The float
Thank you for inviting me to speak to and their economies.
you tonight on the topic of forces, The day was fine and warm, the sun
consequences and the future. By the early 1980’s the northern streaming in the window at the city
hemisphere economies were well end of the dealing room.
prepared to deal with inflation. New
The French painter and writer Zealand’s long protectionist and The noise was loud, with shouting
Gauguin, in the 1890’s, ran away from regulated environment found New from every desk. Pandemonium had
Paris, his family and a stock broking Zealand deficient in skills and been continuous since the float
career, to paint (and bed) native girls experience to deal with some of the announcement four days ago, telex
in the tropics. In 1897, a steamer severe consequences of these machines clattered insistently in the
docked at Tahiti bringing him terrible changes. background.
news, Gauguin’s favourite child Alice,
had died suddenly from pneumonia. Perhaps the 70’s and the 80’s are
the periods to start to address Then from the hubbub a shrill voice
After months of poverty and despair, Gauguin’s first question, where do we was heard “Broadbank need $5
the artist harnessed his grief to come from? And to do this perhaps a million, they are offering 1200%
produce a vast painting. He wrote the peek at some snapshots from a overnight, who can book me 5.”
title boldly on the image, three private diary from the 80’s, give a Further voices joined in from the
childlike questions, simple but flavour of that decade and the effects fixed interest desk
profound. on society, business and the
community:- “I have $10 million 2 year
“Ou venons nous? Que sommes governments at 35%”
nous? Ou allons nous?” “DFC have 90 bills available at
Snapshot 230%”
Where do we come from? What are
we? Where are we going? Then the currency trader chipped in
“NZ/US rate up another 150 points.”
Interest rate regulations The voices, and their plaintive sing
Today, I would like to focus on
song, lasted well into the night
Gauguin’s questions, in a reflecting All the representatives of the finance
context on New Zealand, the wider industry were crowded around the Snapshot
financial and economic markets, and table, except for the small but
more particularly the forces that have charismatic figure, who sat alone at
and will influence our existence and the end, oozing and emanating power
our future. The float aftermath
as his gaze went around the room.
Sir Spencer sat perfectly still –
The business, economic and “You banks, you know the rules, you
flanked by all his reserve bank
financial markets in New Zealand in play the game or you will suffer the
officials - it was only the small tendril
the 1970’s were dominated by consequences.”
of smoke from his ever-present
regulation
His glinting eye then settled on us. cigarette that broke the air. Across
the table Geoff Thompson, bankers’
Government took all the risks; and
“Well, he barked, merchant bankers, association chairman, was in full
ruled the market’s behaviour with an
what do you have to say for flight, “these rates are killing us, it’s
iron hand. The real asset markets
yourselves?” been 18 days, the banking system is
such as shares and property, had
in disarray, you have to act now.”
languished for some time, the
“Prime Minister, we are the price
currency was fixed, as were deposit Spencer lifted one eyebrow, as he
takers, you and the Reserve Bank are
and lending rates. was wont to do, and shifted his gaze
the price makers”
“governor it does not seem logical to
This period was dominated by Shaking his head like a bulldog he simply try and punish those who left
governments who endeavoured to snarled “we will set the rates, you, funds offshore before the float, and in
keep New Zealand in a cocoon of and all of you, keep to them…..or doing so push the whole financial
safety, protected from the winds of else” system into a systemic risk position
change that were sweeping through that could cause the financial sector
the western economies and world Regulation in it’s finest hour. to collapse.”
markets.
Basically, it was time we stopped
acting like a banana republic.
NZBPT Information Bulletin Issue 3 2006 - supplement
“FORCES, CONSEQUENCES AND THE FUTURE”
Snapshot It was no consolation that the worth examining, and the
shareholders got fair value. This was consequences which are still with us.
his greatest role, now in ruins, as his
Investment company collapse haggard and wan face peered over the Following the world’s real asset price
now empty room and gazed upon his collapse of the late 80s, the new cadre
The Brisbane day was hot and beloved whakatu. The largest and of management consultants in the
balmy, as it normally was in January. finest meat works in New Zealand now northern hemisphere actively advised
While the air conditioned building was to be scrapped. major world corporations that instead
cool, the stench of sweat struck us as of stakeholder value being the priority,
we entered the 19th floor boardroom rather shareholder value alone was
and nervous tension electrified the air. To move to Gauguin’s second the purpose for which companies
question – “what are we?” should operate.
Fifty bankers, who had been waiting
far too long, ringed the enormous table Correspondingly, the “Anglo/US.”
“gentlemen, apologies for lateness. The 1990’s- the determinant of Model which I will refer to after this as
You all represent $2.63 billion of what we are today the “US. Model” evolved with the
unsecured debt of Ariadne. If any one following main features:-
of you take action to recover your By the mid 1990’s the consequences
debt, you and the rest of you will suffer of change from the 70’s and 80’s were Boards should set financial targets of
huge losses, if not your total loan dealt with and New Zealand was more annual EPS growth that met or
capital. in step with the world economies and exceeded the market expectations.
markets. This would ensure the maximum
There is a way forward to salvage share price will occur, and capital
the position, it’s known as a From 1994, New Zealand has growth of the stock plus dividends
lifeboat….” experienced an almost tranquil period would maximize the companies share
of growth and prosperity. price in the short term.
Snapshot The previous global issues now To ensure management are focused
seemed almost irrelevant: on this objection, huge incentives,
mainly in the form of stock options/
Inflation had been tamed in western shares and cash bonuses, were
DFC economies. provided to management if they
reached or exceeded the targets.
The Japanese bankers were Free market policies were now in a
normally impeccable in their manner; better balance with regulation. There Basically, the model resulted in self-
however this was not the case today. was a better understanding that interest driving behaviours, at the
Their hands twitched and their eyes regulation would ebb and flow over expense of future earnings,
widened as they made their time, as it had over previous infrastructure investment, growth and
submission once more. generations. the community.
“We lent to DFC when it was owned The rise of Islam, at a time One might say “so what”, self-
by the government, DFC are still Christianity was in decline, was not interest has always been a part of the
owned by the government, through the new; the juxtaposition between these incentive sets that drove behaviour in
government super fund two forces had been the subject of any industry or profession.
conflict over past centuries.
Please explain why the government However, the material difference in
will not stand behind DFC now and However, the new free markets, now this case is the extent of self-interest.
settle their loans with us, please free of the shackles of two world wars As the publication ‘governing the
explain…….. Please explain!!! ” and their aftermaths were spawning corporations’ highlighted “the world is
Snapshot new influences that have had, and will increasingly cynical and disillusioned
continue to have, far-reaching by a system that pays CEOs and
consequences for New Zealand and senior executives 400 times more than
the world. the company’s average worker when
Meat industry regulation there is simply no economic theory
The major influences are as follows:- that can justify this level of income
Clear as a bell, the clock struck six. imbalance”.
Wearily he gazed around the The advance of technology that has
boardroom once more, the portraits of transformed electronic communication The conventional business model
his predecessors – great chairmen in worldwide. had been the Rhineland model, which
great ages of pioneering, industry instead of focusing on shareholder
development and prosperity. And; value alone; rather a company invests
money in its customers, employees,
The dealmakers had all left, their The ongoing move in western the environment and the rest of
excited voices clammering, his board economies by businesses to a society. Instead of worrying about
members had scurried away, eyes different business model. quarterly returns, it challenges the
averted, after the long and agonising financial markets by insisting on taking
meeting. The brief features of this model are a long term view.
“FORCES, CONSEQUENCES AND THE FUTURE”
It focuses on customer service and Consequences - snapshot new tools to help to ensure stability.
looking after its employees. They questioned both the pursuit of
Concepts like fun, family, virtues and low inflation as central banks
values are embraced. For those who have studied the principal goal, and their reliance on
Enron story you will know how their interest rates as the sole instrument
Gayle Avery, from Macquarie energy traders, having secured their to achieve this.
university, has since 1999 market position, organised for
researched a large number of Enron’s generating plants to be Pursuit of low inflation had
northern hemisphere companies and closed for maintenance, almost all at delivered economic performance, but
the outcome of the different models the same time. repeated boom to bust financial shifts
and summarised these in her book and the build-up of ‘credit – financial
‘leadership for sustainable futures’. The consequences were severe imbalances’ shown by bubbles in the
blackouts in California and prices prices of assets such as houses,
The outcome was startling. The moving from US$10 a unit to show a bigger toolkit of policies is
Rhineland model showed that boards US$1,000 per unit. Overall, a profit needed.”
and executives were able to lead of US$2 billion a year resulted.
their organisations to greater Those traders received huge
sustainability on shareholder value bonuses while society suffered both Consequences - snapshot
over a long term period. the damage, inconvenience and cost.
It also showed the US. model will New Zealand explored compulsory
always be a sunset model once Consequences - snapshot superannuation, in the early 70’s and
economic downturns occur in their early 90’s, but followed different
industries or in general. It also options without a full understanding
highlighted how the model The fight against inflation in the of the long term consequences.
encouraged executives to act in their early 80’s was necessary and
own financial self-interest and at a important, with business and In the early 1990’s Australia did
cost to the company, the industry, the consumer behaviour adjusting to high introduce compulsory
law and society. interest rates. superannuation and the
consequences are huge. By 2010 an
However, the US model continues However from the early to mid 90’s, estimated three trillion dollars of
to gather momentum and the in the enhanced communication age, savings will have accumulated, by
cascade effects on world markets the policies so effective in the 2020 the amount will be four times all
and government policy are becoming previous decade, were now subject the trading bank deposits in
a real concern. to attack from the new business Australia.
world.
What are some of the Already in New Zealand the
consequences of the US model? Central banks, in trotting out its overflow of investment funds from
prescribed formula for dealing with Australia, riding the artificial levels of
inflation, namely high interest rates the New Zealand dollar are now
Clash with governments free and a low inflation target, became changing the very nature of
market ideologies prey to the hedge funds and currency ownership and sovereigncy of New
speculators, who in effect had a one- Zealand companies, which in turn
The 1980’s and 1990’s evidenced way bet with no thought for the following the us model, has serious
the rolling back of the state sector in consequences on nations’ consequences from the clash
Britain, New Zealand and other economies. George Soros became between community and business
western economies. famous for bringing Indonesia and objectives.
the bank of England into serious
The ideology was based around the monetary disadvantage and losses.
premise that governments should not Consequences - snapshot
own and manage businesses, rather Small economies, such as New
the private sector would achieve Zealand, have provided easy feeding
more efficiency and effectiveness, ground for these financial sharks, US. The world’s most powerful
thereby benefiting the people. and as with the California electricity economic nation since the second
users, society have paid the cost with world war, has in recent times taken
In part this was true, particularly artificial interest rates and exchange a shift in environmental policies, that
where it applied to ancillary rates, distorting the economy and have aligned the government to the
businesses, that were not essential international trade. us. model in developing policies.
utilities underpinning the structure
and fabric of society. As the Basle-based bank of For example, since taking office on
international settlements argued in its 9 January 2001, the administration
An example of the clash is the annual report this year has dismantled the nation’s
reform of the US Energy markets environmental laws, delivering the
from the 1980’s, which followed the “Globalisation has changed the government departments and
market model. However when the workings of economics in ways that agencies responsible for delivering
converts of the US business model may force central banks to overhaul the nation’s air, water and public
became involved, the consequences their strategies radically, and to seek lands, into the hands of anti-
were scandalous.
“FORCES, CONSEQUENCES AND THE FUTURE”
regulatory zealots, many of whom differing cultures and political years, only bought down by
came from the same polluting systems, at the economic level there napoleon’s conquest in 1797.
industries they are charged with is only one big civilisation, feeding on
regulating. the whole planet’s natural capital. Perhaps future direction of
government and business is to
The us model favours old If civilisation is to survive, it must challenge the self-interest models,
technology which is mainly based on live on the interest, not the capital, of and work together in achieving long
the use of fossil fuels. It is more nature. term sustainability of our environment
profitable to burn coal, than rely on and our societies.
other energy alternatives that are not If we read the flight recorders in the
destructive to the environment. wreckage of crashed civilisations, our Certainly one must question the
present behaviour is typical of failed idea that the world must be run by
As India, and in particular china, societies at the zenith of their greed stock markets for shareholder value
with it’s huge open cast mines, follow and arrogance.” alone, which is as mad of a theory as
the cheap and profitable route to any other fundamentalist delusion or
short term growth the consequences Is civilisation going to tread the path ideology.
are dire. epitomised by the Easter Islands?
Once a bountiful place - forests, birds We are now in “the age of
and abundance. consequences” and it is essential
To summarise perhaps as to where that all society understands and
we are:- Settled during the 5th century ad, faces this reality.
the settlers multiplied over six
We are stuck in a dominant world centuries to ten thousand people. To conclude I return to where I
based on the industrial age that is The clans each honoured their started, Gauguin’s vast painting and
diametrically opposed to where we ancestry with impressive stone his view of the future.
have evolved to be successful. images. Each generation of images
grew bigger than the last, demanding Gauguin’s painting is a panorama
The influences of the new business more timber and rope for hauling to of enigmatic figures amid scenery
paradigm in western economies has the altars. Trees were cut faster than that might be the groves of Tahiti or
spread fast, and with enhanced they could grow, until at last the an unruly garden of Eden,
communication and technology, the woods had been utterly destroyed, worshippers of gods, cats, birds, a
effect on societies is material. and today the islands are desolate resting goat, a great idol with a
and bare except for their wind-swept serene expression and uplifted hands
The effect on behaviours is god-like images. seeming to point to a central figure –
however more serious, the Enron, Eve – the mother of mankind and
world com, Fannie Mae and other The people had been seduced by a goddess of the future, who is not
scandals of unethical and arrogant kind of progress that becomes a shown as a voluptuous innocent like
cultures of profit manipulation, mania. other women in Gauguin’s work, but
perhaps pale in comparison with the a withered hag with a piercing eye
global consequences as businesses In their epilogue to their book inspired by a Peruvian mummy.
and governments grapple with the Easter Island in 1992, the
new forces. archaeologists Bohn and Flenley are
explicit “the islanders”, they write –
“carried out for us the experiment of
We now have Gauguin’s last permitting unrestricted population
question:- growth, proliferate use of reserves,
destruction of the environment and
“Where are we going?” boundless confidence in their religion
to take care of the future.”
What are the consequences of the
forces that are currently dominating The result was an ecological
behaviour? disaster leading to a population
Sir John Anderson, shown here,
crash…..do we have to repeat the
has been and still remains a leading
Perhaps the most severe experiment on a grand scale?
figure in the NZ business scene.
consequence is facing us.
Is the human personality always the Overall, Sir John’s career and
Ronald Wright, in his Canadian same as that of the person who felled outstanding contributions in many
series of lectures in Canada, had this the last tree? fields - business, sport, environment
view:- and community - equips him with
What are the alternatives? There unique perspectives as a guest
“what we cannot overlook is that we are many examples of government speaker and his achievements as an
are part of a world civilisation where, and society working together. outstanding leader were recognised
over the past 30 years there has Perhaps one of the finest is the last year when he was the inaugural
been a massive onslaught of example of Venice, where the ruling recipient of the Blake Medal,
progress and destruction. doge’s and the merchants created a regarded as the ultimate award for
While in the world we still have trading empire that lasted a thousand leadership in New Zealand.
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