Little in Budget for Farm Businesses Thursday, May 15, 2003
Today's Budget has done little to improve the business environment that would allow entrepreneurs to increase their productivity, says Federated Farmers of New Zealand (Inc) President Tom Lambie.
"A broad fiscal objective that focuses in tightening expenditure and reducing tax revenue is necessary for increased economic growth in New Zealand, said Mr Lambie.
"Today's budget does neither.
"In light of the very uncertain economic outlook with falling overseas demand and prices for our produce it is wise for the Finance Minister to be wary of eroding the surplus.
"If these surpluses are indeed sustainable the Finance Minister must reduce the tax rates. Reducing the tax burden is crucial in terms of lifting the long-term trend performance of the economy.
"More money in the hands of those willing to increase the productive capacity will lead to more business success and higher growth.
"A coherent set of policies designed to enhance the long term growth potential of this country is the best strategy for improving the incomes of all.
"Reducing regulatory burdens faced by business in terms of RMA, OSH, Local Government restraints and the blockages to private sector investment in areas such as electricity will provide the room to grow the economy."