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ACT Leader Richard Prebble called on the government's small business advisory group to resign.

"Leaked government documents published by the New Zealand Herald show that the advice of Labour's own handpicked small business advisers has been ignored - not just on the four weeks annual leave issue but also on the controversial proposal that businesses winning contracts must employ the unsuccessful tenderer's staff.

"I commend the Small Business Council for its advice but the honourable thing for the Council to do now is to resign. The Council is just being used as PR propaganda and it is outrageous that the Minister of Small Business, Mr John Tamihere, has deceitfully claimed the small business group is being listened to when he knows it is not.

"Labour claims that they are listening and then proceed with their ideologically predetermined policies.

"Mr Tamihere has announced he is going to hold 24 small business days around the country that will just be more government spin. Small businesses don't have 24 days to give to the government especially when the advice is going to be ignored.

"What would be truly refreshing is for the Labour government to apologise to the country's business organisations and admit that the advice they have received did reflect the views of all businesses big and small. A second refreshing step would be for the Minister of Small Business to acknowledge that research from the Chamber of Commerce indicates the average small business spends a day a week meeting government imposed obligations, and that asking for another day is out of the question," Mr Prebble said.

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