Not Enough Emphasis on Growth in PM’s Speech

Media Release
12 February 2008

Not Enough Emphasis on Economic Growth in PM’s Speech

The Prime Minister’s Statement to Parliament contains positives but much more is needed if we are to move New Zealand into the top half of the OECD’s GDP per capita rankings, according to the Wellington Regional Chamber of Commerce.

“We welcome the emphasis in the speech on infrastructure and productivity,” said Chamber CEO, Charles Finny.

“The PM focuses on broadband which is very important, as is roading, but New Zealand’s infrastructure deficit is enormous. Much more investment in transport infrastructure is still required, for example, in Auckland and Wellington.”

“We are also pleased with the focus on research and development which is central to increasing our productivity growth.

“The Prime Minister talked about the impact of the proposed tax cuts per-household. We believe that cuts at the right level will also be a significant driver of productivity growth as they will provide an incentive for increased investment.”

“Many businesses would not have benefited directly from the company tax reduction announced in last year’s budget as around 40% of businesses are unincorporated.”

“On balance the speech does contain positives for business but much more needs to be done if New Zealand is to achieve sustained economic growth,” Mr Finny concluded.

ENDS

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