Capitalism on a world scale faces a massive crisis. Greece, Spain, Ireland and Italy to name just a few countries are on a path to a severe crisis of capitalism. This is the worst crisis of capitalism the world as ever seen.

All governments in the last four years have attempted to overcome the problems of capitalism by “sound economic policies of monetarism” first advocated by Milton Friedman – cut debt, cut social housing, hospitals and schools, privatise state assets, cut wages, worsen workers conditions and attack unionism i.e. AFFCO, Ports of Auckland and Oceania disputes.

The National-led government has been carrying out the same policies here. Ordinary New Zealand workers are having to pay for the failures of New Zealand capitalism.

After four years of austerity the world economy is heading towards recession again. Already Britain and other countries in Europe are back in recession. What as this got to do with New Zealand? We are part of the world economy so what happens in Europe also effects New Zealand on the other side of the planet. Because of globalisation events in the USA and China also effects New Zealand too. We are all integrated into the world economy.

For the Labour Party to try to overcome the crisis of capitalism and by operating within the confines of capitalism means that the Labour Party has to accept the logic of capitalism outlined above and the anarchy of the market.

Already the Labour Party leaders are watering down previous commitments and are attempting to commit the party to rise the age of superannuation to 67. This is a mistake, is anti-worker and will lose Labour votes. By excepting the logic of capitalism the Labour Party will be left with no alternative but to attack the living standards of workers like in the 1980s. The Labour leaders should not listen to the bourgeois economists that peddle such myths that pro-worker reforms are no longer affordable. Let us remind you that last year the wealthiest 150 New Zealand families and individuals were $7 billion better off and the banks made massive profits. What the Labour Party cannot afford is the capitalist system.

The National Party - the party of capitalism - cannot solve the problems of New Zealand capitalism. Its only answer is to attack workers and decimate public services and privatise state assets. This is the only solution on offer by the capitalists in order to protect their profits which will always be at the expense of all workers.

The Labour Party is absolutely correct to oppose state assets sales, but the Labour Party needs to remember why these assets were nationalised in the first place and by whom. The Labour Party not only needs to oppose privatisation but offer a policy of re-nationalisation too.

Labour's first Prime Minister Michael Savage and the first Labour government is still admired for what it achieved. What is required is bold socialist polices that answers the needs of all New Zealand workers. We should not pay for world capitalist crisis make the bosses pay

Socialist Appeal stands for the following programme

  • No wage cuts or wage freezes.

  • Introduce a national minimum wage of at least two thirds of the average wage.

  • Repeal the Individual Employment Contracts enshrined in the Employment Relations Act 2000.

  • End casualisation of the workforce. Support collective trade union bargaining in the workplace. Repeal all anti trade union legislation. Trade union rights for all.

  • Introduce a 32 hour week without loss of pay.

  • Health care free at the point of use: Free Dr appointments and prescriptions

  • The right to superannuation at 55.

  • A crash programme of useful public works: hospitals, schools, housing etc

  • Free state education for all. A living grant for all tertiary education students

  • A foreign policy based on socialist internationalism

  • To pay for this nationalisation of the banks and large corporates that dominate the economy, under workers control and management, and for a plan of production. Expropriate the capitalist!