Budget Incremental Rather Than Transformational

Budget Incremental Rather Than Transformational - Business NZ

This year’s Budget represents a missed opportunity to invest towards productivity and growth gains, says Business NZ.

Chief Executive Phil O’Reilly said it contained some good policy directions for the future but lacked a true economic transformation agenda.

“It’s positive that roading needs are being addressed, but there are still concerns about negative incentives for the private sector to invest in infrastructure.”

He said comments regarding the possibility of further regulation of telecommunications sent unfortunate signals to investors.

Other business-related areas including export assistance, skills training, and literacy and numeracy initiatives were positive, but the amounts allocated were small in the overall context of the Budget spend, Mr O’Reilly said.

“Incrementalism - rather than economic transformation - best describes the 2006 Budget,” Mr O’Reilly said.

ENDS

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