Business, farmers back National

With the election still undecided and the deals brewing, the outside possibility of a National-led Government drew a mixed reaction from the business sector, church and various lobby groups last night.

Business New Zealand chief executive Phil O'Reilly said even if National gained power, business would judge the party's success on how well it executed its election promises.

"It's not very often a Government gets everything right and not very often a Government gets everything wrong either," said Mr O'Reilly. "So what we concentrate on is the policies."

Business would like to see quick action in two key areas: reviewing the Resource Management Act and making changes to the Employment Relations Act and Holidays Act, he said.

Business Roundtable executive director Roger Kerr was less guarded in welcoming any National-led Government, saying the party had policies more in line with what business sees as necessary to achieve better economic growth.

National has pledged to cut personal and corporate tax rates, and has identified "areas of weakness" in current policy requiring change, such as employment law, the RMA, infrastructure, education policy and welfare.

If the National Party attained power and fulfilled its promises, the Roundtable expected to see a significant improvement in the economy, said Mr Kerr.

Auckland Chamber of Commerce chief executive Michael Barnett also greeted the prospect of a National-led Government warmly, but warned the economic downturn expected over the next few years would put pressure on its spending promises.

National's commitment to completing Auckland's roading infrastructure quickly and reviewing the Resource Management Act would be positive, he said. Tax cuts for 85 per cent of the population and a lower corporate tax rate would stimulate the economy and allow greater business growth.

Council of Trade Unions spokesperson Ross Wilson said the CTU was worried by the prospect of a National-led Government. "Our concern about the return of a National Government would be that we would return to the policies of the 1990s and the disparity between rich and poor and the emphasis on market, the privatisation of ACC, the introduction of a very divisive industrial relations regime," he said.

It would also be very difficult to pursue the social and economic rebuilding agenda started by Labour.

Anglican Church spokesman Te Kitohi Tikaahu said a National Party victory "would not be highly supported" by the church as a whole, but a number of National-voting church members would be pleased.

The Bishop of Tai Tokerau said National's pledge to abolish all Maori seats was "incomprehensible" to the church, whose constitution recognised three separate racial strands to the church - one of them being Maori.

Catholic Church spokeswoman Lyndsay Freer said the church did not back any party but hoped individuals voted into Parliament had strong moral principles and family values.

Federated Farmers president Charlie Pedersen said farmers would be less heavily penalised under National's proposed flatter tax regime. However, the federation was not overwhelmed with joy, as National's promise to review the RMA, while hopefully good news, would remain a concern until the details of the changes were clarified, and Federated Farmers still needed to convince National to get rid of the rates system of financing local Government.

Finally, it was strongly opposed to National's proposal to extend the Queen's Chain on land bought by international investors. "It showed a propensity, even among National, to want to erode private property rights."

Greg Fleming, head of the broadly Christian lobby group the Maxim Institute, was pleased at the possibility of a National-led Government. "We welcome any change that would see marriage and the family more strongly and clearly promoted over the next three years."

The institute, which describes itself as a conservative think-tank, would look forward to greater parental control of education and a move towards decentralising welfare to involve charitable trusts.

- HERALD ON SUNDAY