New Zealanders worry most about prices, want public hospitals top of infrastructure project list

New Zealanders are worried most about rising fuel and other prices, followed by the domestic recession and health care.

A national survey of 2,851 New Zealanders this week finds 64 out of every 100 back the Government’s plan to spend more on infrastructure to stimulate the economy. They want public hospitals, rail and housing as priority projects.

They are happy with the Government’s performance on its 100 day action programme, agree with the pace of its response to the recession and support its tax package for small business. More think the jobs summit later this month will be ineffective than effective. Business people are more likely to think the summit will be ineffective.

The ShapeNZ survey was commissioned by the New Zealand Business Council for Sustainable Development. Conducted between February 9 and 11, results have been weighted by age, gender, personal income, employment status, ethnicity and party vote 2008. The maximum margin of error on the full sample is plus or minus 1.8%.

On its overall performance since taking office, 34% give the Government a 4+ performance rating, on a scale of 1 to 5 where 1 means poor and 5 excellent, 42% rate it 3, and 17% two or less. Some 53% think the country is heading generally in the right economic direction (23% think wrong direction, 24% don’t know).

Most serious issues:

Some 77% of New Zealanders rate rising fuel prices as the most serious problem facing them and their family. It scores highest in 4+ ratings on a 1 to 5 scale, 5 being very serious. That, and the cost of living (a problem for 70%), rank ahead of the domestic economic recession (66%) and worries over personal employment prospects (45%).

Priority issues ranking (total sample, using ratings 4+5 on 1-5 scale):

1. Fuel prices (77%)
2. Cost of living (70%)
3. New Zealand economic recession, health care (66%)
4. My household finances, world economic recession 62%)
5. Crime (61%)
6. Climate change (59%)
7. Interest rates (56%)
8. Government borrowing (49%)
9. Personal employment prospects, Government deficits (45%).

Infrastructure policy:

Some 64% back the policy to stimulate the economy by spending more on infrastructure. Among the 574 business decision makers covered in the survey (margin of error + or – 4.2%) this support rises to 82%.
However, investing in Local Government projects is the least popular option with the public overall and business people.

Infrastructure project priority rankings:

1. Public hospitals
2. Rail
3. Housing
4. Electricity generation
5. Home performance improvement insulation/ energy efficiency insulation (public and private)
6. Roads, Education maintenance
7. Forestry, electricity grid, research and development
8. Private spending through personal tax cuts
9. Local Government projects
Business people rank rail and electricity generation as top priority.

Their project priority rankings are:

1. Rail
2. Electricity generation
3. Public hospitals
4. Electricity grid
5. Housing
6. Research and development
7. Roads
8. Home performance improvement insulation/ energy efficiency insulation (public and private)
9. Private spending through personal tax cuts
10. Education sector maintenance
11. Forestry planting
12. Local Government projects

Business people are also much less likely to think the jobs summit involving business, officials and unions will produce policies to create or preserve jobs.

Some 36% of New Zealanders think it is likely (3% very likely) the summit will produce results, while 40% say its unlikely (10% very unlikely) and 24% don’t know.

Among business people 39% say results are likely (4% very likely) while 49% think results are unlikely (14% very unlikely). 12% don’t know.

A detailed report on the economic survey is available at http://www.nzbcsd.org.nz/story.asp?id=874