Confidence Drop Makes Company Tax Cut Vital
Friday 28 Jun 2002
The rapid drop in business confidence makes a cut in company tax essential, ACT leader Richard Prebble says.
"The appreciation of the Kiwi dollar, rising interest rates and falling commodity prices have exposed the fragility of the New Zealand economy. Also exposed is the reality that Labour has no coherent economic policy and no ideas for how to combat a deteriorating economic outlook.
"Instead of attacking the messenger - the Reserve Bank - Dr Cullen should be taking steps to boost New Zealand's underlying competitiveness. Having a higher company tax rate than our trading partners is a handicap.
"If Labour was to announce on Sunday when it launches its manifesto that it will cut company taxes below Australia, it would boost economic confidence, investment, growth and jobs.
"ACT, if we are elected, will press for an immediate cut in company tax, to ward off the coming decline in the economy," Mr Prebble said.