Budget positive outlook will boost confidence

“News from the Budget that New Zealand will return to surplus by 2014/15 and that the public debt mountain will reduce is a timely boost to business confidence and certainty,” says Auckland Councillor Cameron Brewer, chair of the Auckland Council Business Advisory Panel.

“This Budget’s greatest gift for business is that Treasury’s latest forecasts will undoubtedly help boost confidence in the country’s medium-term future. Better news is not as far away as many feared. In fact better news is now in sight.

“It is welcome news that Treasury predicts public debt will reduce and the current $16.7b operating deficit will become a healthy surplus in four short years. An environment promoting high export prices, low interest rates, as well as the maintenance of the country’s credit rating, expected economic grow of 4 per cent in 2012 and over 170,000 new jobs by 2015 are all positive signals that will only spark business confidence, activity and investment.

“It’s also positive for business to hear that the Government is on well and truly on top of the costs of the Christchurch rebuild. News that a $5.5 billion Canterbury Earthquake Recovery Fund has been ring-fenced is not only good for Christchurch but brings certainty to everyone.

“After nearly three years of doom and gloom, uncertainty and negative business confidence, we’re now seeing some light at the end of the tunnel. We might not have to wait for the Rugby World Cup to deliver a circuit breaker. The latest and more positive Treasury medium-term projections will go a long way in helping to turn around businesses’ outlook on life,” says Cameron Brewer.

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