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

 

Government spending not as efficient as tax cuts

Media statement Thursday, May 18th, 2006

Government spending not as efficient as tax cuts

The economic transformation that the budget is heading us toward will make New Zealanders increasingly reliant on the state, and less likely to take responsibility for themselves, or for saving and investing for their own future.

That was the response of the Employers &Manufacturers Association (Northern) to the budget today.

“Dr Cullen is not demonstrating any entrepreneurial streak,” said Alasdair Thompson, EMA’s chief executive.

“Aside from the $800 million over five years for meeting Transit’s funding gap, the balance of today’s budget is at the expense of tax cuts,” he said.

“We are very pleased to see the guarantee of funding for roads, and the bonds issue of $1 billion of debt funding to connect up our transport networks. We have been arguing for just such a commonsense approach as this for the past six years.

“But the other budget spending is at the expense of cutting taxes which would be a more efficient and faster route to economic transformation resulting in the ‘flexibility and adaptiveness’sought by Dr Cullen.

“To pay for the budget’s spending, taxes are locked in at their current levels, removing the opportunity for personal savings and for individuals to invest on their own behalf.

“Business welcomes the added investment in modern apprentices and other programmes to boost kiwi’s skills, as well as more funding for exporters and R&D, we doubt it will slow down kiwis heading across the Tasman in search of higher paid, lower taxed jobs.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: