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Manukau Businesses More Than Just Employers

Press Release: New Zealand Government
Date: Friday, 16 July 1999

For Manukau businesses this is a fork in the road election. Take
a wrong turn left and you will face higher costs, greater restrictions
and more strikes. Take the right turn and we'll deliver the conditions
so your business can grow and prosper, Prime Minister Jenny Shipley
told a Manukau business audience today.

"Businesses in areas such as Manukau provide employment, social
wellbeing, and make a valuable contribution to their communities.
The savings your businesses have been able to make in recent
years are directly helping your communities through more job
creation, and putting more money back into people's pockets,"
she said.

The Employment Contracts Act has allowed businesses throughout
the country to create over 600 jobs per week. Strikes cost New
Zealand businesses over $55m in lost wages in 1990, but in 1998
this was down to $1.9m.

"A typical manufacturing business, with a turnover around $2.5
million and facing an interest bill of around $65,000 per annum,
would be paying over $70,000 more if interest rates were still
at the level they where in 1989. Cheaper costs like this make
a huge difference to small and medium businesses.

"Introducing choice in ACC looks like saving about 20% for employers.
For the manufacturer I just mentioned, this is almost $3,000
in savings per year.

"In addition, tax cuts have increased the take home pay for many
New Zealand families. A couple with two children on $30,000 a
year, is now around $100 per week better off. For communities
like Manukau, National has provided more jobs and a better chance
for families to improve themselves.

"Businesses rely on sound leadership from government for good
economic performance, but not every political party is offering
small and medium businesses such confidence.

"This government has worked hard to rebuild New Zealand from
the thrashing it took in the eighties, and we are determined
not to see those gains taken away from employers.

"This government seeks the support of employers who want to retain
improved business conditions. Employers who want these conditions
need to explain to their workforces the options their business
faces; backwards with higher costs and changed markets, or forward
with improved growth and more jobs," said Mrs Shipley.

ENDS

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