Plunging business confidence could force the Government to call an early election, the ACT Party says.
The latest National Bank Business Outlook survey released today shows 48 per cent of firms expect business conditions to deteriorate over the next year -- up from just 19 per cent a month ago.
It reflects political opinion polls which have recently shown a dip in general confidence in the economy, although Labour has maintained a lead of up to 10 percentage points over National.
ACT's leader, Rodney Hide, said Prime Minister Helen Clark would start looking for "any half-pie excuse" to go to the polls early.
The election must be held before the end of September, although the Government will have served a full three-year term on July 27 -- the date of the 2002 election.
Helen Clark, who is overseas, has previously refused to be drawn into speculation about the election date.
Mr Hide said Helen Clark was determined to win a third term, and would want to call the election before the Government's "anti-business, anti-growth" policies began to bite.
"We have strikes, higher interest rates, falling GDP growth and now business confidence dropping like a stone," Mr Hide said.
"Helen Clark won't want things to get any worse -- her challenge is to come up with an excuse for going early."
- NZPA
