Media release: 15 March 2012

With both Prime Minister John Key and new Labour Leader David Shearer laying out their economic visions today, New Zealand’s small businesses will be pleased to see some of their policy priorities are featuring heavily, according to the latest research by MYOB. However, both leaders’ flagship policies remain unpopular and a key plank of business policy – simplifying provisional tax – is not addressed.

MYOB general manager Julian Smith says policy to support the small business sector must be a priority if New Zealand is to achieve the vision of a smarter and more competitive economy both parties are promoting.

“Small business is the engine room of New Zealand’s economy, with sole traders or employers of one-to-five people making up 90% of New Zealand businesses and employing 23% of the workforce. With that in mind, it is good to see that these speeches today address some of the small business sector’s key concerns,” said Julian Smith.

The most recent MYOB Business Monitor, a regular survey of over 1000 New Zealand small and medium enterprises, provides detailed information about the policy preferences of New Zealand’s small business owners.

“David Shearer has identified small business owners and employees as a key constituency if he and Labour are to be successful, and he will be pleased that a number of the ideas he has been talking about are rated highly by New Zealand’s small businesses,” said Julian Smith.

“Shearer’s call for a ‘cleverer New Zealand economy’ with a greater focus on research and development will go down well with the 66% of small businesses who have said they would vote for more investment in these areas.”

“Similarly, his plan to restrict foreign ownership of productive land was a vote winner with 59% of businesses surveyed. Small business will also be pleased to see Shearer acknowledging the importance of education and skills training, as it reflects their critical requirement for skilled talent.”

“However, Shearer’s decision to retain Labour’s highly unpopular Capital Gains Tax is a real stumbling block for his chances of winning over the small business vote. The tax was one of the least popular proposals amongst small business, with 62% of small businesses saying that they would vote against the proposal,” said Julian Smith.

Mr Smith says the Labour leader still has more to do – and more detail to provide on his economic policies – if he is to outstrip Prime Minister John Key, whose economic priorities are rated highly by New Zealand’s small businesses.

“The Prime Minister’s speech today focussed on cutting costs in the public service and reducing Government expenditure as part of a plan to return the budget to surplus. This approach was rated very highly by small business, with 68% of respondents saying they would vote for it,” said Julian Smith.

“Most importantly, the focus of the new super ministry on improving interactions with Government and providing a one-stop online shop for business support is a particularly positive move for New Zealand’s small business owners.”

“The Prime Minister’s recent comments about the importance of the ultrafast broadband roll out will also win him plaudits amongst small business, with 69% of respondents saying that policy was a vote winner for them. At the same time, Prime Minister Key can be confident in his proposal to increase oil and gas exploration in New Zealand, as it is supported by 59% of New Zealand’s small businesses.”

One area of concern for Prime Minister Key was that his flagship economic policy continues to be highly unpopular with small business.

“Asset sales have been identified as a key priority for National’s second term, but 49% of New Zealand businesses say they would vote against the policy,” said Julian Smith.

“Like Shearer, Key’s vision for economic development proves to be broadly popular, yet neither leader’s flagship policy rates highly amongst small business.”

“It was also disappointing that the most popular policy amongst small business was not reflected in either leader’s visions,” said Julian Smith.

“Time and time again, small business owners tell us that their top priority is seeing some simplification of provisional tax rules and processes to make it easier for businesses to accurately determine and meet their tax obligations.”

“These changes, to unburden small business from a range of complex red tape and regulations, would be a vote winner with 80% of those surveyed. It’s disappointing that our political leaders are still not listening to small business on this issue,” Mr Smith concluded.

About MYOB
MYOB is a leading provider of business management solutions that have helped more than a million businesses in Australia and New Zealand. MYOB serves businesses of all kinds and sizes, delivering software and services that simplify accounting, payroll, client management, websites, and much more. With a network of more than 20,000 accountants and other professional partners, MYOB provides the tools and support that help make business life easier. For more information visit the MYOB website at www.myob.co.nz

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