Economy Hub: Grant Robertson opens up on business frustrations

Minister of Finance Grant Robertson speaks at the New Zealand Herald Mood of the Boardroom breakfast. 3 October 2018 NZHerald Photograph by Brett Phibbs.

The Finance Minister says he shares some of the business community's frustrations and would like to see the Government moving faster with some of its key policies.

Speaking on The Economy Hub after the Mood of the Boardroom event in Auckland this week, Robertson conceded it can be frustrating trying to articulate the Government plan for what he sees as a transition phase for the economy.

"Its not lost on me that there's criticism on both sides of the ledger here, you're either moving too fast or too slow. We're just moving through some really big issues," he said. "I share some of the frustrations around pace I would like to see some of the things we're doing move a bit quicker"

But despite a barrage of negative feedback from numerous business confidence surveys this year, Robertson says he's not sick of listening to business.

"I understand that change can drive uncertainty but change can also drive opportunity and I think there's a massive opportunity too for the Government and business community to be working together."

In fact the Minister has just been out on a three-day tour of small and medium-sized businesses with Employers and Manufacturers Association chief executive Kim Campbell.

Business owners were forthright about their concerns, he said, chief among them the Government's proposed changes to employment law.

Robertson says he can't guarantee that business will be happy with the final employment changes, but doesn't think business has as much to fear as they think they do.

He said he broadly agrees with economic forecasts which see slower GDP growth for the rest of this year and mild pickup next year.

That was a symptom of transitioning the economy away from a reliance on immigration and property speculation, he said.

But he says his is a Government that seeks to return the economy to strong GDP growth above 3 per cent a year and he believes that will happen over time.

"I absolutely believe that we can grow the economy more than 3 per cent [per year]."

Robertson said he was aware of the nervousness about another financial crash.

"If we did reach the GFC point, and I don't believe that's where we are, then we've always said we've got the flexibility within our Budget Responsibility Rules to respond to that," he said.

"But for now what is about is making sure we're putting in place those building blocks for a more diversified economy, so that we're not reliant on particular markets. We're looking into other parts of Asia, Latin America, the EU deal and making sure that here in New Zealand we are applying the resources to lifting ourselves up the value chain."