KEY POINTS:
Let's get the good news out of the way first: Labour has introduced some positive measures, say representatives of small business. Now the catch: among smaller companies, they say, the overwhelming feeling is one of disappointment.
Over-regulation, leading to increased compliance costs, and delays in
addressing the tax rate are the key complaints.
Employers and Manufacturers Association acting chief executive Bruce Goldsworthy says one of the key issues over the past nine years has been a perception that
"Labour has got more involved in regulation where previously most owners were free to make their own decisions".
There had also been growing disappointment that tax rates had not been considered until fairly recently.
"The offset for some companies has been a wide range of schemes and grants coming up." Even that comes with a qualification: "That is an element which for some small businesses can be quite daunting."
But some moves have been welcome. "A lot of small businesses, particularly exporters, were pleased to see the focus on export year," says Goldsworthy. "But it did take seven or eight years to get there."
An increased push on literacy and numeracy had also been positive for smaller employers, as had free-trade agreements, such as the deal signed with China this year.
But, "The big issue would be taxation. If you asked a businessman would they prefer a flat tax rate of 20 cents in the dollar or the ability to apply for grants, they would choose a lower tax rate every time."
Manufacturers and Exporters Association chief executive John Walley says Labour's realignment of tax, faster depreciation on equipment, and the research and development tax credit, also met with approval.
KiwiSaver was also starting to address the needs of the economy.
"Certainly some of the compliance things around KiwiSaver and its introduction will always be an issue but it has good long-term benefits."
But the Government's moves to address the skills shortage had failed to make a huge impact.
"Some think things haven't changed too much. Others see the new apprenticeships - the modern apprenticeships - as positive. But we did have a big gap where there was an absence of apprentices."
Auckland Chamber of Commerce chief executive Michael Barnett says the buoyant economy - until recently, anyway - meant there had been little impetus to change the status quo.
"We have seen little radical change around issues of compliance - we continue to say that the SME [small and medium-sized enterprise] is the backbone of the economy but I would suggest the backbone is in need of some urgent attention from the chiropractor."
