Business to Government – too much red tape

Ministerial silence on the ‘Firm Foundations’ report shows the Government still doesn’t understand that its own laws are a deadweight on business, says National's Commerce spokesman Tony Ryall.

"Where's the Commerce Minister on all of this? Silence.

"Meanwhile, the flood of anti-business regulation continues unabated with the Local Government Bill next on the agenda.

“The MED's ‘Firm Foundations’ report says the regulations business rates most negatively in terms of their productivity and performance are ACC (56%), employment law (41%), local government rules (34%), OSH (29%) RMA (27%) and Holidays Act (21%). Tax burden also features, as does the amount of time taken from business planning to fulfill regulatory needs.

"National says freedom and choice are the fundamental principles that can cut red tape.

"Greater choice in ACC and employment law would have an immediate impact; in fact, in a previous study (1995), the Employment Contracts Act featured as a positive for growth. Further, greater freedom from arbitrary bureaucracy would make a huge difference in local government costs, OSH and the RMA.

"A summer of discontent is brewing with Labour's attack on business – stress and OSH laws, pay equity, the Holidays Act, the Local Government Bill, the Kyoto Protocol and four weeks’ minimum annual leave.

"The Government doesn’t understand that to increase growth, you have to increase economic freedom," says Mr Ryall.

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