Profits are up, but business confidence is down - go figure.
Profits are up, but business confidence is down - go figure.
COMMENT
New Zealand's economy has a lot going for it. Our terms of trade are at historical highs, interest rates are low and the Government inherited large surpluses.
We should be doing well. But we're not.
Under this Government, about three-quarters of New Zealand's economic growth is being driven bypopulation growth, not productivity improvements.
If we want to be a higher wage, higher growth economy, we've got to focus on lifting our productivity – or our output for every hour worked.
The Government's complacent insistence that everything is okay is one of the reasons business confidence is stubbornly low.
Simply telling businesses to "be confident", as the Prime Minister did last week, doesn't cut it.
What Kiwi businesses need to invest, expand and grow is policy settings that give them confidence, and the certainty of a Government that won't shut down industries overnight, like it did with oil and gas in Taranaki.
It's not just uncertainty. Look at the costs this Government has piled on. Petrol prices have skyrocketed, primarily due to excessive taxes; while the median rent is up $50 per week.
All of these costs feed into a higher cost of living. If petrol costs more, getting food from A to B is going to cost more, and consumers are the ones who'll ultimately pay. Similarly, if roads aren't being built, it takes longer to get there – and another cost gets passed on to Kiwi businesses and ultimately, Kiwi consumers.
This week National launched a petition calling on the Government to reverse its decision to cancel the four-lane expressway between Otaki and Levin - a road which would reap significant safety and economic benefits for the central and lower North Island.
Piling on costs hurts the businesses and consumers who can afford it the least. This Labour-led Government is slowing New Zealanders down not just on the roads, but in terms of progress. I think it's pretty simple really - New Zealanders just can't afford this Government.
Conversely, giving businesses the confidence to invest in new staff, take risks and grow their enterprises, while remaining competitive benefits all of us.
If we're elected in 2020, National will restore our economy with our positive economic plan.
We'll tackle unnecessary regulations and unashamedly focus on growth. We will index tax brackets to inflation, introduce more flexible labour laws, encourage the flow of investment into New Zealand businesses, progress RMA reform and revive our economy so that we can lift our aspirations. And we won't implement any new taxes in our first term.
The economy isn't everything, but it's important. A strong economy is what enables New Zealanders to do well. Kiwis deserve a government that will focus on unlocking a strong economy.
One more thing – congratulations to William Wood, our 2019 Rangitīkei Youth MP who made history last weekend when he was selected as the National Party candidate to contest the Palmerston North seat. William turns 18 in January!
