Budget 2016: No Surprise Approach for Business says EMA

Budget 2016: No Surprise Approach for Business says EMA

Budget 2016 held few surprises for business and sent a strong signal that the New Zealand economy is in good health.

With most of the key announcements made before today’s Budget announcement, business knew what was coming - and that’s a good thing, says Kim Campbell, CEO, EMA.

He said of particular interest to EMA members would be:

-Support for 5500 more apprenticeships

-Investment in infrastructure, in particular the regional roading programme and tourism

-SME friendly tax packages

-Responsible timeframe for phasing out one for two obligation for ETS

-Further support for KiwiRail, especially if some of that goes to a third main trunk line to unlock the Auckland rail bottle neck

"Our members constantly tell us about the skills shortage, needing the right infrastructure in place to help them go about their daily business and wanting a reduction in unnecessary compliance costs. I think today’s budget has delivered that.

"We know the books are in capable hands, and today’s $700m surplus is proof of that."

"What we’re keen to see is more effective use of our money - to deliver what’s needed today. For example, the $110 billion committed to infrastructure spend over the next 10 years - if we could get 10% efficiency from that, that’s another billion per year to invest elsewhere, sooner.

"We’ve talked previously about a centralised procurement system which allows necessary infrastructure such as roads, water treatment, hospitals, schools to be financed and delivered, on-time and on-budget. Now is the time to delve further into this.

"In terms of the $600m contingency fund set aside for infrastructure, we could certainly find a good use for it. For example it could fund a tunnel through Grafton Gully to port of Auckland," says Mr Campbell.

ENDS

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