We had to get out of it ourselves. The foreign exchange crisis at the time of the change of government led to a decision to massively devalue the currency, then free float the exchange rate, and then to comprehensively deregulate the financial sector. With foreign exchange controls lifted, new banks were allowed to operate. Agriculture Let me spend a little time here even though I appreciate that I may be speaking to the converted, given the position that has been taken in The Heritage Foundation's publications. Two-thirds of total farm output is exported, earning 60 percent of total export revenue.
Agriculture is too big to be carried by the rest of the economy.
Assistance to New Zealand's farmers peaked in 1984, contributing to 30 percent of total agricultural output. That was unsustainable. One year later, almost all subsidies were gone, and the rest went soon after. There are now no subsidies and no other forms of assistance except for spending on inspection, quarantine, research, and pest control. New Zealand's farmers are fully exposed to market forces.