16 October 2000

How Government Could Signal A More Business Friendly Approach

An announcement from Government of lower accident insurance levies and an honouring of their promise on tax incentives for research and development could go a significant way to changing the present negative business sentiment, says Hon Peter Dunne, leader United New Zealand.

"Both initiatives would not only restore economic credibility for the government, but even more importantly send a strong message that the government are indeed listening and serious about a business friendly approach.

"It could actually provide a lightning rod by saying to business let's be constructive and move forward together in the best interests of the country. There is a very good chance it would marginalise some of the negative sentiment about other government policies like the new Employment Relations Act and higher tax rates which realistically are not going to be changed.

"With the announcement of the pre-funded superanuation plan this week the Government has shown a willingness to at least address some of the challenging issues facing the nation. So why indeed don't they go further by addressing the issues of accident insurance levies and research and development?

"The reality is the Government could turn around the mood of business and the country quite quickly without losing face.

"The challenge would then be for business and the Government to work together in a more pragmatic and less ideological way," says Mr Dunne.

He says New Zealanders are inherently fair and yearn for sensible, balanced policies which are forward looking and carry broad support.

"There is no reason why these things can't be achieved through the Government demonstrating a lead in these areas," he says.

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