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Labour Building A Barrier To Economic Recovery

With businesses failing and unemployment rapidly increasing, Labour’s plans are like throwing petrol on a bonfire, National's Economic Development spokesperson Todd McClay says.

“Nearly 100,000 small businesses have had to borrow $1.6 billion from the Inland Revenue Department (IRD) just to cover their cashflow under Labour.

“Grant Robertson thinks he can continue to pile costs on businesses while ignoring the real and disastrous impact. Repaying this debt will be even more difficult with Labour’s agenda to raise the cost of doing business.

“Labour’s announcements of a higher minimum wage, a new public holiday and an increased sick leave could cost the economy $2.8 billion per annum.

“These are not small costs that can be easily absorbed. They amount to over $1000 per employee.

“Despite prompting from National on Friday, Labour has been unable to make a case as to why these policies will be good for our weakened economy.

“Labour’s plans will also lead to higher power prices for businesses of over 30 per cent for industrial users.

“Labour’s idea that $5 billion to $10 billion could be spent on a pumped hydro scheme in Central Otago without raising power prices has been described by electricity company executives as ‘dreamland’.

“Labour need to front up with their assessment of the impact these policies are having on the economy.

“These higher costs will affect Kiwis through fewer jobs, lower pay rises and a smaller economy.

“National will create an environment where businesses can grow and prosper. We’re supporting businesses with $10,000 to hire new staff and provide modern, flexible working practices.

“We will work with businesses, not against them, to create more jobs and higher incomes for Kiwis and their families.”

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