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Federation Supports National's Plans For Growth

15 April 2002

The rural community will be encouraged by the National Party's policy to boost New Zealand's economic growth rate by reducing tax and regulatory burdens on business, says Federated Farmers President Alistair Polson.

Mr Polson was commenting on National's "Plan for Prosperity" released earlier today.

"It is only through improved economic growth that New Zealanders can afford the sort of health, education and other services they demand," Mr Polson said.

"New Zealand must have regulatory and taxation regimes that are best practice by international standards to attract international investment and stop the brain drain. Moves to lower both the top marginal rate and company tax rate over future years are positive and will reward the determination and hard work of New Zealanders. .

"National's proposals to introduce a Regulatory Responsibility Act, to complement the current Fiscal Responsibility Act is a very positive move which Federated Farmers, and other business organisations have supported for a long-time.

The Federation will be calling for bi-partisan support for this move just as with the Fiscal Responsibility Act. This will ensure the provision of a durable and effective regime. Too often attempts by successive government's to address compliance costs and other regulatory costs have delivered little. The issues and details of the proposed Act will need to be worked through carefully.

Reintroducing competition into the workplace accident insurance markets and reviewing the compliance cost regimes of significant pieces of legislation are all positive steps in the right direction.

One area that the Federation hoped more action would be taken was on the issue of Local Government accountability. Local Government, which is a large players in the New Zealand economy with rates accounting for about 3% of New Zealand's GDP, needs similar disciplines imposed as National proposes for Central Government Mr Polson concluded.


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