Lobby raps political neglect

By KEVIN TAYLOR

Political parties are neglecting the crucial issue of economic growth, says the country's leading business lobby group.

Business New Zealand says the parties lack focus and priority on growth, and none would make a balanced growth strategy take precedence upon taking office.

It also says no party is adequately explaining the need for growth and wealth creation to the country.

The organisation gave its views yesterday at the end of its pre-election conference in Wellington.

Sixteen politicians - including the leaders of all the parties in Parliament except Labour - spoke and answered questions on fostering growth and productivity.

Labour was represented by Finance Minister Michael Cullen.

Business NZ has been measuring the parties against its own 20 policy priorities for getting New Zealand back into the top half of the OECD.

It published its list of goals in December.

Detailed rankings of the parties against those goals will be published on Monday in the Business Herald.

Closing the conference, Business NZ president Doug Marsh said a balanced, sustainable growth strategy transcended politics.

It was about the wellbeing of the country and its people.



A 4 per cent growth rate was the key to putting New Zealand back into the top half of the OECD.



Business had succeeded in getting growth back on the political agenda, but had not done as well in communicating the need for growth to the wider community.

Some people still did not realise that growth was for all New Zealanders, not just businesses.

"Doing nothing or only a bit is not an option," Marsh said.

Balanced, sustainable growth is a critical national priority."

Businesses wanted effective, immediate action in areas where some parties were uncomfortable - such as tax reductions, compliance cost cuts, immigration and the quality and quantity of Government spending.

Opening the conference, Business NZ chief executive Simon Carlaw said health, education and law and order were what the media were saying were the three main concerns this election.

Although the economy had not rated a major concern, there was a link between the top issues and the country's economic performance.

Balanced sustainable growth was the only issue that mattered, Carlaw said.

Without growth, other services - health, education and law and order resources - had to be rationed.

The case for growth was self-evident and doing nothing was not an option.

Internationally, New Zealand rated with Slovenia and Cyprus.

Australians were 40 per cent richer than New Zealanders and the gap was widening.

Conference sessions on productive workplaces and a productive economy were followed by addresses from the party leaders and Cullen.



They were asked how their party would get New Zealand back into the top half of the OECD.

At the end of the conference, Business NZ listed policies and plans it said were inconsistent with high growth rates. These included:

* Keeping personal and business tax rates high as other countries cut theirs.

* Committing $2 billion a year to the New Zealand Superannuation Fund.

* Increasing Government spending as a proportion of GDP, and not addressing poor quality spending.

* Maintaining the accident insurance monopoly.

* Making changes to monetary policy that would lift the inflation target above the 0-3 per cent range.

Other Business NZ concerns include the impact of laws and regulations on workplaces, and ratification of the Kyoto Protocol before New Zealand's main trading partners.

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