Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Prebbe's Presentation to Chambers Of Commerce

Budget Presentation To Wellington & Canterbury Chambers Of Commerce

By ACT Leader Richard Prebble

“New Zealand faces an investment gap. The New Zealand economy needs an estimated $10 billion a year just to stand still.

To produce four percent GDP growth the economy requires a minimum of another $11 billion and perhaps as much as another $17 billion. That is, to grow the economy at its maximum rate requires between $21 billion and $27 billion of investment.

The New Zealand economy has never attracted this level of investment. The highest level was in 1997 of $20.236 billion and it has been falling ever since. In the last six months, anecdotal evidence shows investment has fallen dramatically.

Attracting sufficient investment to achieve a growing economy and jobs has been a chronic problem.

New Zealanders are not good savers so the country needs to attract overseas capital.

A flight of capital began when Winston Peters was Treasurer. The flight has grown. Reports note that companies that account for up to 60% of the New Zealand stock market capitalisation could be shifting off shore.

ACT is not aware of any new significant investment announced in the last six months not decided upon last year.

The banks’ surveys of business investment decisions indicate that all businesses, large and small, have put away their chequebooks.

Despite the high export prices from the low dollar, neither tourism nor farming appears to be ready to invest.

The Reserve Bank, Treasury and private forecasters' predictions of economic growth assume that capacity constraints will be overcome by investment. This is not necessarily so.

Investment depends on confidence, and remarkably the coalition has produced a collapse of confidence in the middle of a cyclical upswing.

The coalition underestimated the effect on business investment of its ACC re-nationalisation and the radical Employment Relations Bill.

Labour and Alliance Ministers, having been out of office during the 1990s, just do not understand how in a global economy investment and capital are mobile.

Why invest in New Zealand when US Treasury bonds pay 6%?

Why should our skilled young people who have training that has cost taxpayers hundreds of thousands of dollars stay to pay 39 cents tax when they can earn more overseas?

The budget does not deal with either problem.

I do not rule out the possibility of a major back down by Labour over the Employment Relations Bill. Advisors have told the government to make major amendments.

Every day the coalition delays in announcing what changes they will make is another week that investment decisions are not made.

Michael Cullen is going to see his budget shadowed by the Employment Relations Bill.

The smart move for the government would be to stop their worthless cancelling of straw man policies. Announcing that government is not going to adopt the Alliance parental leave policy, or the Alliance youth minimum wage policy, or the Alliance holiday manifesto does not restore business confidence.

Business never thought that Labour was going to try and implement these policies.

Business wants to know now whether the Employment Relations Bill is going to proceed as written. If not – what changes will be made?

Nothing in the budget will change the refusal of business to invest until Cullen and Clark back down over allowing unions to strike for multi-employment agreements; remove union monopoly rights from the Bill and reduce the compliance costs of the Bill.

The government needs to get on top of its coalition wrongs and realise that every day they delay in announcing a real change in policy over the Employment Relations Bill is another day business won’t invest in New Zealand.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Bridges’ ‘Meth Crooks’ Leadership Failure

Back in June, Bridges publicly accepted that Housing NZ had got it wrong, and that the National government had acted upon bad advice.

Now, you’d think this admission would create a broad bi-partisan basis for compensation to those families who had been unfairly evicted, at considerable cost and emotional distress. Some people had lost their possessions in trying to meet the expense of the upheaval.

Not everyone felt so compassionate. More>>

 

Maybe, Over Thirty Years: Oil Ban Could Cost Govt $7.9B

The government's proposed ban on new offshore oil and gas exploration permits may cost the country $7.9 billion in revenue foregone between now and 2050, the Ministry of Business, Innovation and Employment says. More>>

ALSO:

Multimedia & Transcript: Acting PM's Press Conference

Winston Peters, Acting Prime Minister while Jacinda Ardern is in New York for the UN Leaders' Week, held a short press conference Monday after chairing this week's cabinet meeting. More>>

ALSO:

General Assembly: Ardern Rejects Trump Call For War On Drugs

New Zealand will not be signing the United States' document calling for global action on the war on drugs, Prime Minister Jacinda Ardern says. Ms Ardern is in New York for the United Nations General Assembly this week, along with about 140 other world leaders. More>>

ALSO:

Pay Equity: Cabinet Funds Deal For Oranga Tamariki Social Workers

The Minister said that an agreement in principle has been reached between Oranga Tamariki and the PSA on a settlement worth $114.6m over five years. More>>

ALSO:

Hunting v Pest Control: Tahr Control Needed To Protect Alpine Habitats

A cull of introduced Himalayan tahr browsing conservation land in Kā Tiritiri o Te Moana/ the Southern Alps is needed to protect special alpine plants and their habitats, Conservation Minister, Eugenie Sage said. More>>

ALSO:

Protest At Sea: Judge Discharges Greenpeace Activists

The judge today discharged Norman and Howell without conviction, saying the cumulative consequences of a conviction would be out of proportion to what was “low level” offending off the Wairarapa coast in April 2017. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels