Budget Recognises Need For Vision

24 May 2001

Budget Recognises Need For Vision - But Sets Sights Too Low

Business NZ President Doug Marsh said today's Budget recognised a key issue for business - the need for an economic vision.

'We are pleased the Government has heeded Business NZ's call, in today announcing a positive OECD ranking as a target. Setting the target of gaining a place in the top half of OECD nations is a useful step in the right direction - but we believe the Government has set its sights too low.

"A better target is that which motivates Business NZ - that of reaching the top ten of OECD nations for GDP per capita.

"Reaching that target would require taxes and compliance costs to be lowered, and would require New Zealanders to totally embrace an enterprise culture. Regrettably, in the country's wider interest and for business, measures to promote these were absent from the 2001 Budget.

"While business will welcome the careful, conservative fiscal approach in this Budget, more is needed. The government has begun to outline a growth strategy, but sets too timid a goal. Our economic future should not be approached timidly," Mr Marsh said.

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