From the press room
Business needs stable political environment – 2008-09-03 10:51:51.168
The best thing any Government can do to promote business and investment in New Zealand is to ensure a stable political environment, UnitedFuture leader Peter Dunne told Business New Zealand’s Election Conference in Wellington this morning.
“Business needs certainty, and the assurance that the Government is not going to be knocked off its course by errant support partners.
“We need to set clear goals, seeking to be competitive with Australia in the first instance, as our major trading partner, and to seek to improve our comparative position with other similar small economies.
“We need to be smart and flexible, with political leadership nimble enough to respond quickly to change, and open enough to work with business as an equal partner to achieve broadly agreed goals for the country’s future.
“The present situation with the financial scandals surrounding New Zealand First, and Act’s insistence on Sir Roger Douglas’ return as Minister of Finance as the price of supporting a National-led Government give a Mickey Mouse air to current politics.
“It gives no confidence that while this is what passes for political leadership, we can lift our game to the extent required,” he said.
Mr Dunne said that, by contrast, UnitedFuture was a “past master” at ensuring stable government under both Labour-led and National-led administrations, as well as achieving significant pro-business policy wins – the “gold standard” of support partners, according to the National Business Review recently.
He cited the $3.4 billion business tax reform package which UnitedFuture achieved through its current Confidence and Supply Agreement, and which saw business taxes reduced to 30 cents from 1 April this year, the first business tax cut in 20 years, and the introduction of a 15% tax credit for research and development.
Mr Dunne said that UnitedFuture proposed further tax reforms, to include a streamlined personal tax scale:
10 cents up to $12,000
20 cents from $12,000 to $38,000
30 above $38,000
In addition, UnitedFuture would align the top personal, business and trust rates; abolish gift duty; and introduce voluntary income splitting for parents with dependent children.
Mr Dunne said UnitedFuture would not make changes to employment law, just to satisfy the demands of ideology, but would review grievance and dismissal procedures, particularly in the small to medium sized business sector, and boost immigration to fill skill shortages.
In this regard, Mr Dunne said that UnitedFuture opposed the Government’s amendments to Kiwisaver regarding employers’ contributions as “overkill.”
“While there may be some unscrupulous employers flouting the intent of the law, the proposed amendment goes too far, and will have significant consequences for many total remuneration packages,” he said.
Mr Dunne said UnitedFuture was strongly committed to reducing New Zealand’s infrastructure deficit through an active encouragement of a combination of public private partnerships and infrastructure development bonds, especially in the transport sector to boost economic growth and development.
“We are more than happy to endure being described as a safe and solid set of hands – because we are reliable.
“And in an environment where single party government is unlikely, the support of the safe, centre party is a valuable commodity for any government.
“We are not in politics to satisfy an ego, or to prove that we were right in a 20 year old argument that most people do not even know ever happened.
“We are here to do what is best for New Zealand families – by fostering an economic environment in which they can prosper, and where young people can feel sufficiently confident they have a viable future in this country.
“Today’s climate is actually crying out for that balance and stability which only we can provide to an incoming government.
“Above all, UnitedFuture will bring a fresh vision to government.
“We want a fair and open society, free from poverty, ignorance and prejudice and based on innovation, self-reliance and integrity.
“We want a sustainable environment and a competitive based on market polices where possible, and government where necessary.
“We believe New Zealand can be the best multicultural society in the world, where everyone, whatever their background, race or creed, has an equal chance to prosper, and where business can play an important role in helping that happen,” he said.