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 The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election