Transport top of budget list for Hawke's Bay

Tourism has already had a boost from this year's Budget. Photo / File

Lower taxes and better transport links are vital to economic growth, local business leaders say.

Gerard Averous, owner of Mon Logis Bed and Breakfast in Napier, said he would like to see taxes lowered.

"As a small business we are paying too much tax," he said.

He suggested cutting GST to 10 or 12 per cent to increase spending and help business growth.

Averous said the extra money already announced for tourism infrastructure was a "great idea" but more money should also be spent on tourism promotion.

Better roads and rail links are top of the Napier Port chief executive's Budget wish list.
Garth Cowie, Napier Port CEO, said transport infrastructure was necessary for the growing economy.

"In an export-dominated region like Hawke's Bay, effective road and rail infrastructure is vital to our economy," he said.

"We welcome any infrastructure spending that helps our producers get their goods to the port - and therefore to global markets - as efficiently as possible." Log exports were expected to double in the next few years, he said, and containerised cargo to grow 50 per cent.

"This kind of exponential growth requires a significant investment on transport infrastructure, and it's good to see that the Government isn't shying away from that."

Cowie described it as "heartening" to see the Government restoring State Highway 1 in the South Island, following the Kaikoura earthquake.

The Government has already announced a number of Budget decisions, including extra money for conservation, tourism infrastructure, health, housing and teacher training.

The $178 million tourism infrastructure package included $76 million for the Department of Conservation to upgrade facilities and develop new Great Walks.

The Budget is due to be announced tomorrow afternoon.