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Too long spent looking in the rear-view mirror

John Key MP National Party Finance Spokesman

13 September 2004

Too long spent looking in the rear-view mirror

National Party Finance spokesman John Key says a new survey out this morning shows "Labour has spent too long looking in the rear-view mirror and not enough time looking at the road ahead".

Mr Key is commenting in the wake of a Chamber of Commerce survey which shows small businesses are still 'disproportionately burdened by Government compliance costs'.

"The Government has been crowing about the World Bank report which measured seven strictly defined aspects of the economy.

"But the businesses in this latest survey are living with the red tape nightmare every day. They are worried by the hazards on the road ahead and less concerned about the road that has already been travelled.

"The Business Roundtable points out that credit for the buoyant economy goes to the reforms of the 80s and 90s. It rightly says that the Government gloating about the World Bank result 'is like the rooster taking credit for the sunrise'.

"And what's most concerning from the Chamber report is the suggestion that many small businesses 'appeared to be passing up growth opportunities ... which would allow them to concentrate on building business productivity'.

"Without productivity gains and economic growth, our incomes relative to the rest of the world, and particularly Australia, will continue to worsen. Treasury is predicting that precise scenario.

"It is time the Government got serious about compliance costs, infrastructure and the tax rates which are strangling our small and medium enterprises.

"It is these businesses that have helped drive the growth which the Government is now so keen to crow about," says Mr Key

ENDS

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