Guest Post: Tried and True Recipes
A guest post by Owen Jennings:
I once suffered a major setback, financially. There were three items on the agenda.
Firstly, what expenses were we occurring that were not absolutely necessary and that could be pruned or eliminated? It was tough. Some “nice to have, but not essential” items got cut.
Secondly, we had a look at whether there were assets that we could cash out of. Trade Me reaped the benefit along with some neighbours. Again it involved some difficult and painful decisions.
Thirdly, we started a whole new hunt for ways of quickly improving our income. We had to be innovative, slick and live with a few downsides of some “quick and dirty” decisions. It meant looking at and removing anything that might slow down our initiatives, frustrate us or add cost, hurdles that were not strictly necessary to getting back on our feet.
We survived. In many ways we were the better for having tidied up our affairs. It was a fairly simple strategy – no new blinding science involved. Just adopting tried and true methods for recovery based on discipline, common sense and sacrifice.
Should it not be the same for the government? Should the three steps not be followed by the Coalition Government, by Auckland City Council and by all local government? It is happening in board rooms, CEO’s offices and kitchens around the country. Businesses are taking extremely difficult decisions, cutting any unnecessary expense, putting unused assets on the market and desperately looking for new ways to kick start revenue.
Husband and wife operations, small enterprises of 3,4 and 5 staff, medium and large companies are hunkering down, mercilessly hacking their cost structures, weeping over losing beloved staff members who have been faithful for decades, shutting the doors of branches, brutally slashing budgets to try and survive. The sacrifices are gut-wrenching. Its reality in a virus wrecked economy. It is going to get worse before it gets better too. Wage subsidies are masking the situation.
Our Prime Minister is daily lauded for her leadership in times of crisis. In the immediate glare of publicity, kindness and empathy are endearing qualities. The cold reality is that those qualities will not pay the bills. Gestures of 20% pay cuts are welcomed but 20% of a heck of a lot is no real sacrifice. Real leadership involves more than optics and safeguarding political gains. It requires tough and hurtful decisions.
The call to our political leaders at all levels is to show courage and fortitude. We, the people, are doing it. As our elected representatives we expect, even demand you do the same. Cut deeply into the fat. Scrutinise the ‘not needed’ assets. Let’s see some smarts about new opportunities.
If ‘helicopter’ cash and ‘shovel ready’ projects are the best you can come up with, think again. If dressing up green initiatives and sneaking through climate change penalties are on the menu, forget it. If asking us to pay new taxes is in the budget, pull it out again. Our burden is already too heavy. Focus on what might hold back private sector initiatives, frustrate investors, limit progress and delay the recovery. Prune such fearlessly. Waiting seven years for a consent to increase a water take when your city is running dry isn’t helping anything – the environment, the economy, thirsty businesses or my vegetable garden.
K.I.S.S. it. Go with what has always worked and what we are all having to do outside of the Beehive. Cut unnecessary costs, sell off the non-vital assets and make sure the private sector has maximum room and support to innovate and invest its way back to full health. Prime Minster Ardern and Minister Robertson remember the state does not create wealth – we do as individuals, partnerships corporates, so focus on making it as easy and burden free as possible.