CTU booklet intent welcome; short on growth plans

Media statement Thursday, October 13th, 2005

Intention of CTU booklet welcome; short on growth strategies

The CTU booklet released today – Your Job. Your industry. Your Future – re-iterates many points business owners agree with, and welcome, but ignores the competitive disadvantages brought about by recent government compliance and other costs, the Employers & Manufacturers Association (Northern) says.

“It would be a foolhardy business owner or manager who didn’t listen to their staff on how to make their business work more efficiently and profitably,” said Bruce Goldsworthy, EMA’s Manager of Manufacturing Services.

“That’s a key message from the CTU publication but one that any growth oriented business has to put into practice.

“We all agree too, as the publication says, that New Zealand must achieve a ‘high wage, high skills, high productivity, high margin’ economy. We’ve been saying that for years.

“The Business New Zealand publication – Manufacturing Perspectives - launched just before the election put forward many of the same issues for discussion.

“But the big question today is what will be the fastest strategy to achieve higher productivity so New Zealand does not keep on being the best recruitment ground for Australian businesses.

“Business does not favour further government interventions in industry development; taking this track will lead us back to the days of industry subsidies and protection.

“Business owners and managers believe Government’s role in business is solely to create the best possible environment in which business can flourish.

“It’s the reason why business owners and managers say one thing government could do is cut the company tax rate, a once off cost to government revenue.

“That would provide an ongoing spur to retain earnings in their businesses thereby allowing more scope to them to pay higher wages and salaries, and to invest in new, productivity boosting technology.

“Another area where Government must focus is on achieving the Single Economic Market with Australia, which is our largest and fastest growing export market and has been for a decade.”

ENDS

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