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DEFU - No reason for the Government to Crow

DEFU - No reason for the Government to Crow

The healthy state of the Government's Accounts as announced in the December Economic and Fiscal Update is no reason for the Government to be giving itself a congratulatory pat on the back, according to Federated Farmers of New Zealand (Inc) President Tom Lambie.

"With considerable uncertainty about global economic prospects, and consequently product prices, the Government should be wary of planning to spend money it may never get," said Mr Lambie.

"The current picture largely reflects the strength and competitiveness of the agriculture sector.

"Increased regulatory burdens on business, increased ACC levies and bashing rural ratepayers to pay for Local Government "dreams and schemes" provided for in the Local Government Bill are no way conducive towards providing a more competitive and prosperous business sector.

"With labour and capital internationally mobile, New Zealand's tax and regulatory burdens must be benchmarked against international best practice. Nothing this Government has done over recent times would suggest that they are serious about improving the competitive position of New Zealand business and industry.

"The Government should be focusing on reducing compliance costs and the regulatory burdens on farmers and other businesses to allow them to get on with growing the economy," concluded Mr Lambie.

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