Fine words in Labour's economic package - but where's the plan?

Big promises and scant detail in Labour’s economic rescue package do disservice to business and the economy, says Business NZ.

Chief executive Phil O’Reilly says the key goal, to lift New Zealand into the top half of the OECD in terms of per capita GDP, was astonishing.

“Labour came into power with a stated aim to get New Zealand back into the top half of the OECD rankings. Nine years later – we still haven’t moved up.

“We’re going to need a specific plan to propel us to the top half, so what is it?

“Exporters will also be looking for detail around how Labour plans to work with them to lift exports to 50 per cent of GDP by 2030.”

Mr O’Reilly says although it’s good to talk about bringing forward spending on infrastructure and skills, more detail is also needed to outline how these will be achieved.

“Fine statements are good and well, but do they have a plan of how they are going to pay for it all?

“Creation of an electrified rail network for Auckland would cost hundreds of millions of dollars. Have they worked with any of the infrastructure providers to work out how they’re going to do it and what it will cost?”

Plans to reduce the interest rate IRD charges businesses that underpay provisional tax were a small, but valuable, initiative that could be particularly helpful for some businesses in the current economic climate, says Mr O’Reilly.