By PATRICK GOWER
The Government's efforts to placate flagging business confidence suffered a blow yesterday from Deputy Prime Minister Jim Anderton.
The Alliance leader said business appeared to think it should dictate Government policy, as it had done over the past 15 years.
"After all that time, business confidence is apparently so fragile that it can't sustain a couple of minor changes to the policy framework."
Mr Anderton's comments were markedly at odds with the Government's more cautious stance on policies that have led to a darkening mood in business surveys.
This has included softening the approach on the Employment Relations Bill and postponing Alliance-promoted policies on paid parental leave, on increasing the youth minimum wage and on increasing annual leave from three weeks to four.
As recently as Sunday, Mr Anderton said the Coalition was under pressure but he would not be stamping his feet over Labour ruling out Alliance policy in the face of damaging attacks from business.
Yesterday he was back on the front foot, saying the need for change in Government policy "could hardly be more obvious."
"If business confidence is so fragile after 15 years of business having most policies it wanted, then the economy clearly needs a much broader base."
Mr Anderton said that business had to take the initiative, especially in the global economy.
"The lower dollar is a huge boost to exporting businesses. The fact that business lobby groups haven't welcomed it shows that far too few Kiwi businesses are exporting."
His comments pre-empt today's Alliance strategy session and are designed to appease factions of the party unhappy that it is kowtowing to Labour's cautious approach.
A spokeswoman for Finance Minister Michael Cullen said Mr Anderton's statement had not been taken as provocative, but was rather an indication of the shape of next week's Budget.
"It seems Mr Anderton is referring to the business and regional development policy to be announced in the Budget on June 15 and that is Government policy."
She said that Dr Cullen had noted that business confidence had fallen in Australia as well.
"In Australia, as here, the reasons for the fall are rising interest rates and the low value of the currency."
Mr Anderton's comments were echoed by trade union representatives yesterday.
The Trade Union Federation said the Government should be listening to more than just employers when considering the Employment Relations Bill.
Federation secretary Michael Gilchrist said the movement was shocked at how "paper thin" the margin of democracy had become.
Workers would have to do more to make their voice heard, not just on this legislation but on the principle of the democratic control of New Zealand, he said.
"If an opinion poll of business people can have such an effect, why do we bother voting for a Government? It is not just business which creates the wealth in this country.
"It is the work of everyone in the country, in business and out of it, paid and unpaid. We all have a hand in making it and we all have a vote on how it should be shared."
Engineering, Printing and Manufacturing Union secretary-elect Andrew Little said it was time industrial relations grew up.
"The basic ingredient required to make the Employment Relations Bill work is something that cannot be legislated for, and that is the maturity of the employers and unions.
"If the new law fails, it will be because of the lack of a maturity in our industrial relations."
He told the Employers and Manufacturers Association conference the union wanted to get down to business with responsible decision-makers and not "tinpot business politicians."
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