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Feds: No reason to Celebrate Budget

23 May 2002
PR68/02
Feds: No reason to Celebrate Budget

Confirmation from the Minister of Finance that New Zealand is still progressing towards ratification of the Kyoto Protocol means farmers will not be celebrating this budget, says Federated Farmers Policy Manager John Pask.

"The Budget has offered little in the way of reducing compliance costs and the regulatory burden that farmers endure," said Mr Pask.

"Initiatives to support biosecurity and the roll-out of broadband technology to rural and provincial New Zealand are welcomed. But yet again the Government has targeted broadband initiatives at community level rather than individual businesses.

"There is nothing in the Budget which gives farmers confidence that the economy will grow at the 3% predicted and provide the kind of revenue necessary to fund the Government's expenditure programmes. This is pertinent given commodity prices are reducing internationally and the exchange rate is at a two year high.

"Economic indicators in today's Budget show that while New Zealand has successfully weathered the economic slowdown and the economic fundamentals appear more robust, it is time to give regard to the framework in which New Zealand business operates.

"If New Zealand wants to improve the standard of living for its citizens then it must have tax and regulatory policies that are international 'best practice'. For example, a Regulatory Responsibility Act that focuses on minimising these burdens would impose some discipline on the Government."

ENDS

For more information: John Pask, PH 04 473 7269 or 4789 303 Neil Barton, PH 021 441 125


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