PM emphasises sustainability, not growth

Media statement
Tuesday, February 13th, 2007

PM emphasises sustainability, not growth

Today's speech by the Prime Minister was disappointing because so little emphasis was placed on policies promoting more business investment and greater exports that would translate into higher living standards, said Alasdair Thompson, chief executive of the Employers & Manufacturers Association (Northern).

"We hoped to hear more about Government policies aimed at reducing New Zealand's huge balance of payments deficit, and raising our low OECD per capita income, savings, and investment ranking," Mr Thompson said.

"Neither was anything said about personal tax cuts though the government's surplus exceeds $8000 for each one of us.

"Other than that there's not much in the speech either to praise or criticize.

"We welcome and support:

* Sensible policies to lower our carbon footprint and create greater fuels self sufficiency such as setting the bio fuels target of 3.4 per cent of petrol and diesel sales by 2012;

* Reducing company taxes and incentivising investment in R&D and skills;

* More government led targeted trade missions;

* Advancing FTA's in the Asia Pacific region;

* Increasing the numbers in work-based training;

* Developing a young apprenticeship scheme in schools;

* Any proposal that seriously rationalizes Auckland's local government;

* Reducing the number of students who can't read, write, and do sums after 11 years of compulsory education;

* Getting more working age beneficiaries back into work.

"The speech gave little detail on how the policy objective of carbon neutrality is to be achieved other than through planting more trees.

"The plan apparently is to start with government departments doing this at the taxpayers' expense.

"The positive side of the emphasis on carbon neutrality is that the government has not taken an entrenched position to impose carbon taxes or other measures that would undermine our producers' competitiveness.

"Instead the Prime Minister indicated the government's interest in supporting the private sector's development of carbon trading regimes. That's a good sign."

ENDS

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