Red Tape Cuts $2.3 Billion From Business Growth
The cost to business from Government's new policies represents a total bill of over $2.3 billion, the Employers & Manufacturers Association says.
"The figures released by Business New Zealand on the total costs of business compliance from new Government policies are appalling," said Bruce Goldsworthy, EMA's Manager of Manufacturing Services.
"They mean Government is cutting over $1billion a year from business income to pay for more paper work.
"Over the past two years businesses have been required to spend an extra $1319 for every person employed to comply with new Government regulations. ($26,398 additional costs for a firm employing 20 people.)
"When this is multiplied by 1.8 million people in the workforce (Household
Labour Force Survey, Statistics New Zealand) the total business pay out for new red tape comes to $2.374 billion.
"It is equally plain from reading the report that the figures err on the conservative side.
"The work of Commerce Minister Paul Swain's Business Compliance Panel has all been for nothing.
"Government's objective to reach four per cent growth annually is a fantasy with this level of new compliance coming through each year.
"Far more likely is that growth in the latter part of the year will peter out completely under the weight of red tape."