A disturbing aspect of the huge drop in business confidence is the second-largest drop ever in the expectations business people have for their own firms, ACT leader Richard Prebble says.

"Businesses tend to be accurate in judging how their own company will perform," Mr Prebble said.

"This drop in confidence has the potential to be self-fulfilling.

"It's unlikely that an interest rate cut alone can turn around such a strong negative sentiment. That's borne out in Japan where interest rates have fallen to effectively zero without boosting investor confidence.

"ACT believes Dr Cullen must reconsider his rejection of the McLeod Tax Review finding that the 39 cent top tax rate needs to be reduced to 33 cents, to encourage investment. A change in stance on tax rates would send a powerful confidence boost to the economy.

"With our trading partners Australia and the United States cutting their top rates of tax, New Zealand now has the highest income tax rate in the Asia Pacific region," Mr Prebble said.

ENDS

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Gordon Campbell: On The Skewed Media Coverage Of Gaza

Now that he’s back as Foreign Minister, maybe Winston Peters should start reading the MFAT website which is currently celebrating the 25th anniversary of how Kiwis alerted the rest of the world to the genocide in Rwanda. How times have changed ...

In 2023, the government is clutching its pearls because senior Labour MP Damien O’Connor has dared suggest that Gaza’s civilian population - already living under apartheid and subjected to sixteen years of an illegal embargo, and now being herded together and slaughtered indiscriminately amid the destruction of their homes, schools, mosques, and hospitals - are also victims of what amounts to genocide. More