15 April 2002
"New Zealand is not a nation of large corporates, but a country of small businesses that want to become bigger," says
National's Finance spokesman David Carter.
"In this regard, New Zealand business is unique and that's why National's economic strategy of lifting the country's
long-term growth rates specifically targets people in business. Two-thirds of our businesses are owner-operators and are
unaffected by corporate tax rates - personal tax affects them.
Mr Carter says people in business are not only worried about tax. He says they are also concerned about the high level
of compliance costs Government has imposed on them.
"I've worked and run small businesses and I know what people in business want. National's economic strategy will
deliver."
Mr Carter says the strategy includes measures that will reduce business compliance costs. It also proposes a major
review of legislation - like the RMA -that imposes costs on business and stops it from growing.
"Our strategy is designed to allow business to get on with doing business - by lowering costs and removing roadblocks to
growth.
"Around 85 per cent of New Zealand businesses employ five people or less. Imagine the impact on our economy by making it
easier for each of these businesses to take on one extra employee."
Mr Carter says tax reductions are an important part of the economic strategy as New Zealand is a highly taxed country.
"National firmly believes that operating budget surpluses belong to all New Zealanders, so after the Government has paid
for the quality essential services any excess tax should be returned to taxpayers.
"If we are determined to raise New Zealand's long-term economic performance we need substantial changes to current
policy. National has designed its strategy so New Zealand can grow and climb its way back into the top half of the
OECD," Mr Carter concluded.
Ends