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Good-Bye To “Quick-Fix” Growth

23 May 2002

Media Release

Good-Bye To “Quick-Fix” Growth

A stake in the ground for the 2005 Election!

Michael Cullen’s Budget sends a clear and unambiguous message that cutting taxes is NOT the route to achieving a sustainable growth economy.

“But the Budget gets high marks for acknowledging that stronger growth is urgently needed,” said Michael Barnett, Chief Executive of the Auckland Chamber of Commerce.

“However it is very clear that under Dr Cullen’s management he believes sustainable growth can only be achieved by taking a longer route of strategic platform-building in selected areas of the economy.”

He is building a platform for doing the right thing:

- Getting more foreign investment flowing into NZ;
- Reducing compliance costs;
- Lifting skill levels across the board;
- Encouraging more businesses into exporting;
- Creating offshore platforms for exporters and expanding export networks.

If there is a concern with the Budget, it would be that this year’s surplus comes off two years of a low dollar and good prices at the farm gate. The assumption seems to be that this environment will continue, so the question has to be “what is the back-up if it does not?”


For more information, contact: Michael Barnett 09 309 6100 or 021 631 150

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