ACT's Economic Package Inspires Envy

Media release Thursday, June 6th, 2002

ACT's economic package inspires envy

Most of ACT's economic policy released today will commend itself highly to business, the Employers & Manufacturers Association (Northern) says.

"Business people will read ACT's policy wondering why other political parties don't express themselves with the same sense of enthusiasm, urgency and business sense," said Alasdair Thompson, EMA's chief executive.

"ACT's attitude to business and the spirit of enterprise is extremely appealing.

"In particular, we strongly endorse the emphasis on cutting the company tax rate immediately below the Australian rate of 30 per cent.

"At present cutting the company tax rate is more important than reducing personal tax rates. A lower company tax rate of say 20 per cent, would:

* lift economic growth by 1.1 per cent of GDP

* increase investment by 3.6 per cent, and

* boost employment by over one per cent, with

* higher exports and imports, and reducing inflationary pressures.

"We have to keep in mind company tax is essentially a withholding tax.

"Nonetheless, ACT's overall approach to business is the right one to inject ginger into National."

Comments: Alasdair Thompson tel 09 367 0911 (b)

09 303 3951 (h)

0274 982 024

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