Zero Budget gives business head room to grow economy

Media statement Thursday, May 24th, 2012

Zero Budget gives business head room to grow economy

Today's zero Budget will give business heart to invest and expand the economy, the Employers and Manufacturers Association says.

"By reining in its spending thereby keeping in check its rising debt, the Government will give business the head room to grow the economy," said Bruce Goldsworthy, EMA's Acting Chief Executive.

"There's no way we can keep on borrowing the way we have been; Europe's troubles point to what would happen if we kept down that track," Mr Goldsworthy said.

"The lesson from Europe is that Government spending need not, should not, and ultimately cannot dictate the pace of New Zealand's economic growth.

"Only business can do that.

"The government's role is to set policies that give business people the confidence to invest and employ people, which grows the economy - today's Budget takes a sober approach to doing just that.

"Particular Budget initiatives welcome by business include the setting up of the Future Investment Fund as a reservoir for the revenues from the sell down of state assets and charged with investing them in buying more government assets, especially for education and health.

"The $385 million more to be invested in research, science and innovation is an important signal - the Advanced Technology Institute can't come soon enough.

"The commitment to maintaining investment in infrastructure is equally welcome.

"In all, the Budget is a calculated response to today's most difficult financial conditions that most thinking people will understand and accept."

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