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Manukau Businesses More Than Just Employers

For Manukau businesses this is a fork in the road election. Take a wrong turn left and you will face higher costs, greater restrictions and more strikes. Take the right turn and we'll deliver the conditions so your business can grow and prosper, Prime Minister Jenny Shipley told a Manukau business audience today.

"Businesses in areas such as Manukau provide employment, social wellbeing, and make a valuable contribution to their communities. The savings your businesses have been able to make in recent years are directly helping your communities through more job creation, and putting more money back into people's pockets," she said.

The Employment Contracts Act has allowed businesses throughout the country to create over 600 jobs per week. Strikes cost New Zealand businesses over $55m in lost wages in 1990, but in 1998 this was down to $1.9m.

"A typical manufacturing business, with a turnover around $2.5 million and facing an interest bill of around $65,000 per annum, would be paying over $70,000 more if interest rates were still at the level they where in 1989. Cheaper costs like this make a huge difference to small and medium businesses.

"Introducing choice in ACC looks like saving about 20% for employers. For the manufacturer I just mentioned, this is almost $3,000 in savings per year.

"In addition, tax cuts have increased the take home pay for many New Zealand families. A couple with two children on $30,000 a year, is now around $100 per week better off. For communities like Manukau, National has provided more jobs and a better chance for families to improve themselves.

"Businesses rely on sound leadership from government for good economic performance, but not every political party is offering small and medium businesses such confidence.

"This government has worked hard to rebuild New Zealand from the thrashing it took in the eighties, and we are determined not to see those gains taken away from employers.

"This government seeks the support of employers who want to retain improved business conditions. Employers who want these conditions need to explain to their workforces the options their business faces; backwards with higher costs and changed markets, or forward with improved growth and more jobs," said Mrs Shipley.

ENDS

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