ACT’s five point plan to restore full employment and grow the economy

ACT has a five point plan to grow the economy by a third. To lift economic growth from the Treasury's long term forecast of just two percent to three.

One percent may not seem much, but it is a doubling of the size of the economy in a lifetime. ACT’s plan, which is based on sound economics, delivers more than any plan put together by any party.

While National can take credit for getting us through the Global Economic Shock, the pre election forecast shows the economy is slowing.

Labour’s policies are just picking winners. Giving taxpayers money to industries David Parker thinks are the future.

Shamubeel Eaqub the New Zealand Institute of Economic Research described the policies of the minor parties in this election as “mad”.

The independent economist working for the Taxpayers' Union says all the parties are promising to spend more money except ACT.

ACT has put forward carefully costed proposals.

1/ Cut Company tax rate to 12.5%

Economic research has shows that high company taxes raise little revenue but inhibit investment, growth, job creation and real wages. New Zealand now has one of the highest real company tax rates in the OECD. Cutting the company tax rate will grow the economy. It can be funded mainly by just eliminating “corporate welfare”.

2/ Rewrite the Resource Management ACT

Before New Zealand had the RMA housing was affordable. The RMA has allowed councils to drive up the cost of land and development.

The RMA has had a similar effect on business. The cost of a new business proposal has risen enormously. Many entrepreneurs faced with significant RMA costs and delays just give up.

Reforming the RMA will not just make housing affordable again, it will also make many business proposals viable.

3/ Cutting Red Tape

National has generated more red tape than Labour. Having a “one size fits all” new earthquake code will put billions of dollars of costs on home owners and businesses.

Last Saturday’s newspaper reports the developer of an adventure boating experience says the new safety code is so over the top he will go out of business.

ACT has had a proposal to apply a cost benefit test to all government regulations. This will remove billions of dollars of cost and waste.

4/ Welfare Reform

Welfare reform is an important part of ACT’s economic plan. New Zealand has 200 thousand able bodied adults on welfare. This is a huge economic asset. Moving adults from a benefit to work not only saves taxes and generates tax revenue - it also enables the economy to grow.

Measures that have been done in America, the UK and elsewhere show welfare reform is achievable. While the biggest beneficiary of reform are the beneficiaries, there is virtually no one in work who is also in poverty. The whole country benefits.

5/ Education

20 percent of pupils leave school with so little learning they are unemployable.

ACT has shown that charter schools do work with these disadvantaged pupils. Long term, allowing failing state schools to become charter schools will bring huge benefits not just to the pupils but the whole economy.

ACT has set out its fresh new policy ideas and the research to support them.

No other party has any practical policies to grow the economy.

Why not vote for the party with solutions?

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