The massive drop in business confidence revealed in the National Bank survey represented the strongest possible warning and learning curve for the Labour Government, according to Michael Barnett, Chamber of Commerce Chief Executive.

“Government cannot do without business. Without a confident business sector, this country’s prospects diminish, tax revenue reduces and the social programmes’ hopes and dreams vanish or force consideration of other options such as more tax increases or higher debt,” said Mr Barnett.

This survey reinforces the case for the strongest possible response from government in coming months to work closely in “good faith” with business to get the country back onto a positive growth path:

 To restore a positive, flexible employment relations environment;

 To shape a positive, integrated business policy package that encourages business development, promotes skills development and retention, reduces compliance costs.

 Get a message to the Reserve Bank to not punish business with higher interest rates;

Business also has a role to play. Business must accept that we have a new Government with new policies and those policies must be given a fair opportunity to succeed.

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