BPS Allows Focus On The Big Picture

Budget Policy Statement Allows Focus On The Big Picture

Delivering its submission on the government's Budget Policy Statement to the Finance and Expenditure Committee today, the New Zealand Business Roundtable said that the BPS allowed an overview of New Zealand's economic outlook.

"The bottom line of the BPS projections is that, on the government's own assessment, New Zealand is only looking at an underlying growth rate of gross domestic product (GDP) per capita of 1.5 percent per annum", Roger Kerr, the executive director of the New Zealand Business Roundtable, said today.

"This is far short of the rate of 4.6 to 7.4 percent that the Treasury has estimated is required if New Zealand is to achieve within 10 years the goal of reaching the top half of the OECD rankings.

"Many in the business community have maintained that the government's policies are not consistent with its goals, but their arguments have been rejected. However, the government is nearing the end of its 3-year term and the outlook is showing no signs of improving.

"The Business Roundtable, Business New Zealand and Federated Farmers are saying essentially the same thing in their submissions on the plan for the Budget, the most important annual economic policy document.

"This is that New Zealand cannot hope to achieve the necessary growth rates with prevailing levels of government spending and taxation, excessive regulation of the business sector and inferior education, welfare and other social policies. This advice is consistent with that from other sources such as the McLeod Tax Review, the Panel on business compliance costs and the OECD.

"Any number of so-called industry assistance or innovation policies will not substitute for a failure to get the basics right.

"In shaping the budget it is to be hoped that the government is willing to listen more seriously to business concerns", Mr Kerr concluded.

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