A taste of what may come in other countries is being provided by the conservative National Party government of New Zealand. It includes “fire at will” legislation and stringent tax increases. Workers have been protesting, but the unions must use all their muscle and prepare for a general strike, if they seriously want to stop these attacks.

New Zealand is affected by the same crisis that we see in other parts of the world, with sluggish growth, growing unemployment and austerity measures being introduced. This document looks at the particular crisis of New Zealand capitalism and underlines the tasks of the Marxists.

The recent national conference of the New Zealand Labour Party – held after their recent defeat in the elections – produced some interesting controversy around the question of what Labour should do if it gets back into office. The ideas of Marxism were present in the debate.

New Zealand society is entering an extremely turbulent period as the effects of the economic recession are felt. As previously mentioned in 2008 Perspectives New Zealand will not be immune from the global downturn. In fact the notion that our so-called “good economic fortune” in the past will save New Zealand from the worst excesses of the global downturn is evaporating before our eyes.

The victory of the National Party at the polls was due to the bankruptcy of the right-wing Labour Party leadership that had no real meaningful reforms to offer workers. This resulted in the lowest turnout since 1978 and the second lowest turnout in a general election since 1902. A large proportion of workers didn't vote Labour or just didn't vote.

The forthcoming elections in New Zealand have been overshadowed by the world financial meltdown and the oncoming recession, which have highlighted the huge level of debt in the country’s economy. This all puts at risk the very ability of any government to guarantee basic social reforms. In New Zealand as elsewhere the choice is between whittling down the welfare state or a radical socialist transformation of society.

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