Fundamental change towards government spending

Decisions made by the incoming Government signal a fundamental change in attitude to government spending, says Business NZ.

Chief Executive Phil O’Reilly says more laws and regulations always mean more government spending.

“For families and individuals that mean higher taxes, while for business it means high compliance costs.

“We have come through a nine-year period of lots of law-making, not all of it of good quality. Mostly this has been due to inadequate consultation with those it will most affect.

“The creation of the new role of Minister of Regulatory Reform and the promise of taskforces to identify wasteful spending are a positive response to the problem.

“The emissions trading scheme as legislated for just before the election is an example of poor quality law-making, without proper cost-benefit or regulatory impact work.

“It is entirely right to take it back to the drawing board. Business NZ still advocates for an emissions trading scheme – but a better one, more aligned with what other countries are doing and with less competitive disadvantage for our New Zealand businesses.

“Business will be happy to contribute to ongoing work to get a better scheme.”