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Budget 2011 ‘Boring in a Positive Way'

19 May 2011

Budget 2011 ‘Boring in a Positive Way’

Federated Farmers has welcomed the complete lack of electoral lollies in Budget 2011 as well as the track towards a balanced budget by 2015

“It is refreshing to have a Budget promoted as being a zero-sum game that delivers on that promise,” says Philip York, Federated Farmers economics and commerce spokesperson.

“This budget was boring, but I mean that as a compliment. For far too long, Budgets have bribed the electorate with its own money, but here we have a sea-change. There are no electoral lollies or surprises and that’s a positive.

“Overall, the Budget is a move in the right direction and it is broadly consistent with Federated Farmers advocacy.

“We have called for Government spending to be capped and reduced over time to 30 percent of Gross Domestic Product. We have further suggested changes to KiwiSaver, Working for Families and Student Loans in order to help achieve the goal of a balanced budget.

“If anyone thinks we can tax our way to economic prosperity, by way of a Land Tax or a Capital Gains Tax, they need to have their head read. Prosperity comes by selling goods and services globally and in this respect, New Zealand is an agricultural and tourism super power.

“Accordingly, Federated Farmers welcomes the focus on value for money, of which, the impending formation of a ministry for primary industries is a tangible example.

“There’s been a radical and refreshing change in Government to support agribusiness with its commitment to water storage.

“While this Budget is a modest step forward, it is a step in the right direction. It will help prevent us becoming an Ireland in the South Pacific.

“That said, if the tempo of reform is not quickened in future years, we will continue a long, slow grind as the economy recovers,” Mr York concluded.

ENDS

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