Company leaders want tax cuts from new Government

The incoming Government must cut taxes if it wants to win over the Auckland business community.

Responses to a Business Herald Auckland Chamber of Commerce survey showed 48 per cent of 500 chamber members polled rated tax as the most important issue a new government should address when it takes power after the September 17 election.

Chamber chief executive Michael Barnett said the Government's $7.4 billion surplus annoyed business owners and they wanted cuts to personal and business rates. "The perception is that Government has taken more from New Zealand than it needed. So they are saying it is time to give some back," he said.

Last week's internet survey canvassed business owners, general managers and key decision makers in Greater Auckland.

Solving congestion on the nation's roads and improving the transport infrastructure came in second place, 9 per cent of respondents rating them as the number-one priority.

Barnett said that despite an increase in Government transport funding from $1.4 billion in 2004 to $1.8 billion in 2005, businesses were frustrated because they had seen no appreciable difference. "There is still gridlock ... The Government has allocated the money, but they have not got an agency focused on completing the roading network."

After roading, 7 per cent of members believe the education system was the most urgent priority. Compliance costs and skill shortages followed on 4 per cent, and crime and health on 3 per cent and 2 per cent respectively. Other issues such as defence, the nuclear-free legislation and energy made up the remainder.

Chamber members reckoned a National-led government is most likely to advance their interests, with 70 per cent saying Don Brash's team has the best policies. Act was rated second with 12 per cent, then came Labour with 7.

Asked which party was the best coalition partner for their favoured party, almost a quarter chose New Zealand First. Virtually all agreed that a Green-Labour coalition would be worst for business.

Don Brash was most favoured to lead the country on 67 per cent. Prime Minister Helen Clark was second, polling 14 per cent, followed by NZ First leader Winston Peters on 11 per cent.

United Future leader Peter Dunne rated 3 per cent, Maori Party co-leader Tariana Turia and Act leader Rodney Hide scored 1 per cent each. Greens co-leaders Rod Donald and Jeanette Fitzsimons did not even get off the starting blocks.

National's Helensville MP, John Key, was rated the safest hands for the finance portfolio on 72 per cent; incumbent Finance Minister Michael Cullen sat on 13 per cent.

Former Act leader Richard Prebble, who has retired from politics, was next highest at 6 per cent. Progressive leader Jim Anderton, Peters, Donald and United Future's Gordon Copeland all rated below 3 per cent.

The poll also showed Auckland businesses were wary about prospects for the economy in the coming year: 58 per cent said they were cautious about prospects, 27 per cent were confident and 11 per cent not confident at all. Just 4 per cent were very confident.

Issues that matter

What is the most important issue a new government should address?

Taxation 48%
Roads/Transport 9%
Education 7%
Compliance costs 4%
Skill shortages 4%
Crime 3%
Health 2%
Public finances 1%
Other 22%