Dr Cullen is right; tax cuts alone not enough

Friday, February 8, 2008

Dr Cullen is right; tax cuts alone not enough

Dr Cullen is right to point out that for our incomes to rise we need to increase our productivity and only business can do that, the Employers & Manufacturers Association (Northern) says.

"Tax cuts are important but they don't automatically increase our real wealth," said Alasdair Thompson, EMA's chief executive.

"Tax cuts re-distribute the wealth being held by Government on our behalf.

"To grow our real wealth we need to boost productivity through effective innovation, and the efficient use of our resources to lift the value of all the goods and services we produce.

"That's the job of everyone investing in and employed by business.

"Dr Cullen is right that increasing productivity is the real source of the competitive advantage that creates long term economic viability and better incomes for everyone.

"To do it business needs to focus on:
* Business development and strategic planning
* Commercializing R&D
* Product design, processes and logistics
* Production technology
* Quality
* Staff skills development and management

"New Zealand has a strong food and beverage sector, top class industrial equipment manufacturing, creative, film and tourism sectors and the most productive pastoral farming businesses in the world.

"Based on these we have great opportunities to add more value, even to become world leaders in the supply of high value technology for:
* Food and beverages
* Environmental solutions
* Medical and health products
* Agriculture and horticulture
* Wood based products

"But Government needs to play its part by becoming super business friendly.

"To show it means business Government has to start reducing, not increasing compliance costs, ensure our transport and energy infrastructure can meet our needs, lower business taxes, work at helping stabilize the exchange rate and lower interest rates, and invest more on developing skills.

"In particular Government must deal with the lamentable fact that our schools are turning out 20 per cent of young people unable to adequately read, write and do sums after 11 years of compulsory education."

ENDS

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