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Business Gets Frustration Not Innovation

13 February 2002

"The business community has every right to feel let down and disappointed by the Government's innovation package," says National Finance spokesman David Carter.

Mr Carter says yesterday's release of the package was heavy on hype, but light on detail. He believes the Government is saying one thing to business, but doing the exact opposite.

"How does the Prime Minister expect business to embrace this innovation package when her Government's proposed legislative framework includes imposing a GM moratorium, ratifying Kyoto, as well as implementing retrograde changes to Local Government, OSH and holidays laws. This is doing nothing but frustrating the productive sector."

Mr Carter says these actions will lead to higher compliance costs and lower international competitiveness of New Zealand businesses.

"This is why economic growth has dropped from 4 per cent in 1999 to 2.5 per cent today. "

Mr Carter says yesterday's statement was a political strategy not an economic strategy - because it was accompanied by actions that will only put up roadblocks to innovation and growth.

"The Government thought it could get away with presenting this over-hyped package as its pre-election economic policy, but this announcement has seriously dented its credibility," David Carter concluded.

Ends

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