Tax issue simply refuses to lie down and die ...

Chief executives are feeling good about Government spending on infrastructure and Telecom's regulation - but the desire for a dramatic transformation of the tax system still dominates the thoughts of the business community.

More than 90 per cent of the chief executives are not confident Michael Cullen's review will deliver the kind of change needed to boost New Zealand's competitiveness on global league tables.

The Herald's annual Mood of the Boardroom survey is a comprehensive poll of 79 chief executives and company chairmen as well as 70 SME chiefs.

It found that if corporate taxes were cut, 65 per cent of chief executives would be prepared to pay staff more, 91 per cent would retain extra earnings for investment and 64 per cent would increase dividends.

Support was overwhelming for Government moves to unbundle Telecom's broadband monopoly but there was little support for encouraging SOEs to expand outside their core business.

The key economic concerns included wage increases, petrol costs and the currency.