Drop Super Scheme, Cut Tax to Boost Confidence

Thursday, October 11 2001 Richard Prebble Press Releases -- Economy

The dramatic fall in business confidence during the September quarter is serious, ACT leader Richard Prebble says.

"The Quarterly Survey of Business Opinion remains one of the most reliable indicators of economic performance," Mr Prebble said.

"It seems the government is out of touch and unrealistic in its repeated claims that New Zealand will ride out the economic shocks of September 11. When the All Blacks publicly state that they are nervous about going on a tour to Britain, it's an indication of how unwilling tourists are to fly world-wide.

"That's serious because tourism is our biggest employer and second-largest overseas exchange earner. There'll be a drop in the number of visitors from our largest tourist market, Australia, made worse by the government's dithering which destroyed Ansett and Air New Zealand.

"It's ironic that the largest drop in business confidence for 17 years has been published on the day after the government passed the Cullen super scheme which commits the coalition to borrowing $4 billion to invest in the world's equity markets ' a risky scheme.

"ACT doesn't know of any business leader who supports borrowing for super.

"A sensible response to the changed economic situation would be to drop the super scheme which will plunge the books into the red.

"While the Reserve Bank's cutting of interest rates was timely, the best way to boost confidence would be to announce a roll-back of the top 39-cents tax rate," Mr Prebble said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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