The national development organisation, 1969 - 1972; the continuing machinery of New Zealand's first comprehensive system of indicative planning

Abstract

This thesis is a study of the National Development organisation in its first three years. This was an indicative planning system initiated by the National government in 1969. Since the abolition of the apex of the organisation, the National Development Council, in 1974, the future course of indicative economic planning in New Zealand is unclear, but from the opinion of participants in the system, and an examination of its workings some conclusions can be drawn about the strengths and weaknesses of this particular system. The operation of the National Development organisation in its first three years is discussed in terms of the perceptions of its members on the operation and effectiveness of the organisation, as indicated by a postal survey. Their opinions are set in context by an initial exposition of the background of the National Development organisation, the expectations held for it by government, and details of its composition and modus operandi. Primarily, the organisation provided an extensive and direct channel of communication between the government and a range of key economic interest groups in the private sector and fulfilled a mutual educative function. However although the original concept of a sectoral economic indicative planning organisation was expanded to include some non-economic sector councils; notably the Social, Cultural and Environmental Councils, Parliament was excluded and the participation of the Federation of Labour was minimal. Moreover the system was advisory to government and although it was an economic indicative planning organisation it was not consulted about major economic policies of the period. Furthermore the requisite sophisticated statistical information to provide a basis for indicative planning was not developed. The National Development organisation had been established by government following the National Development Conference of 1968-69 with economic opinion leaders, called by the government to provide renewed impetus for economic growth, and to validate integrated growth targets. The National Development organisation comprising the National Development Council, sixteen sector councils and the Targets Advisory Group was the continuing machinery established to review the targets and objectives set as a result of the conference, and the measures necessary for their implementation. This was an indicative planning system in which after consultation with opinion leaders and interest groups in the private sector, sectoral growth targets were jointly adopted which would provide for both private interests and the government an indication of desirable and feasible economic growth rates.