Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Business confidence needs signals from Govt

17 January 2006

Business confidence needs signals from Govt

Low business confidence could be improved by some strong signals from Government, says Business NZ Chief Executive Phil O'Reilly.

"Not all factors are Government-related," Mr O'Reilly said. "For example, much of the pressure from the exchange rate is outside its control. But if the Government were to signal its intention to reduce spending in non-essential or low quality expenditure areas, that would reduce the inflationary pressures that are helping to keep the dollar high. This would help reassure manufacturing firms whose export capabilities are currently threatened by the high New Zealand dollar. It would also help stave off the possibility of a further increase in the official cash rate later this month.

"We would also urge Cabinet and the Minister of Revenue Peter Dunne to consider bringing forward plans for business tax relief, as another important signal to the business community. Our members are concerned that these do not have a timeframe attached to them yet and so are unlikely to happen soon - but the need for a lower company tax rate is pressing.

"This historic low level of business confidence can be turned around. Some meaningful indications by Government could give immediate heart to business.

"The Government's focus on productivity improvement is positive, but this is a medium and long term issue - business needs clear signals about immediate problems right now."

ENDS


Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.