There aren't many politicians with an entire economic movement named after them. Sir Roger Douglas is one of the few.
More than 40 years after introducing a wave of reforms that transformed New Zealand's economy, the former finance minister has reflected on the change that became known as "Rogernomics" – and why he believes there was still more to be done.
Speaking to 1News' Simon Mercep for Newsmakers Revisited, Sir Roger recalled taking office in 1984 as a part of David Lange's fourth Labour government, when the country was facing serious economic trouble.
Sir Roger Douglas let loose a series of reforms dubbed ‘Rogernomics’. (Source: 1News)
"New Zealand was headed for bankruptcy, and there was a need to do something about that urgently," he said.
"We got elected, and on the Monday that change started to come about."
And change certainly came.
The New Zealand dollar was floated, markets were deregulated, state assets were sold and the country's tightly controlled economy was opened up.
"It was a major reform. The thing to remember about that, which to me is what I'm most proud of, is that 40 years later those policies are still there," Sir Roger said.
Among the biggest changes was the introduction of the Goods and Services Tax (GST) in 1986.
The new tax came in at a flat rate of 10%, meaning everything from milk and bread to fresh fruit, vegetables and clothing suddenly attracted an extra charge.
But not everything became more expensive. Existing sales were removed from big ticket purchases such as televisions and refrigerators.
Sir Roger defended GST, arguing it allowed the government to lower personal income taxes and scrap other taxes.
"It's a good tax basically in the sense that it taxes people when they spend their disposable income," he said.
'We only went halfway'
The sweeping reforms didn't come without a cost, with many major industries facing major disruption and workers losing jobs.
The pace of change also created tensions within the Labour government, which culminated in Lange sacking Sir Roger as finance minister in 1988.
Asked whether he had transformed New Zealand from a tightly controlled economy into a free one, Sir Roger said: "Well, not completely, because Lange wouldn't let me finish the job.
"But I think in a lot of areas we opened the economy in a way that people were able to use their skills, their initiative, where they hadn't been allowed to. We only went halfway though."
Sir Roger later helped establish the ACT Party in 1994, continuing his push for economic reform outside Labour.
"The question was to try and help New Zealand. The party frankly for me has always come second."
And after four decades of debate over Rogernomics, was Sir Roger satisfied with what he'd achieved?
Not quite.
"I'd definitely like to do more. Because frankly there's a lot to be done.
"I'm not someone who dwells in the past. I would like to change the future."
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