Serious value in Taskforce report

The first report of the 2025 Taskforce displays a comprehensive grasp of the factors that could propel New Zealand’s economy into higher growth.

Business NZ Chief Executive Phil O’Reilly says while the report covers the broad range of actions required for prosperity, its strength is the focus on government spending.

“All sectors of New Zealand do have a part to play in improving New Zealand’s economic prospects, but there is an overwhelming need for the government to improve the quality of its spending,” Mr O’Reilly said

“Not just by encouraging restraint by government agencies, but by transforming its approach to regulation, tax and government services.

“Business NZ endorses the Taskforce’s call for a cap on government spending, moves towards an overall top tax rate of 20 percent, and the establishment of a Regulatory Responsibility Act.

“These three moves alone would turbo charge the economy.”

Mr O’Reilly said the overall range of recommendations in the report are mainstream economics and are consistent with what the business community advocates.

“The establishment of a Productivity Commission, better protection of property rights and better quality decisions around education and other services would have a significant impact.

“These kinds of policies if executed properly could enhance the capacity to work and the rewards from work for all New Zealanders.

“Business will be hoping that the report’s recommendations will be widely discussed by all parties in good faith and without ideological preconceptions.

“The recommendations represent a serious attempt to focus on and achieve action on an overriding issue for New Zealanders – whether we will be poor or prosperous in 2025.”

Business NZ’s recommendations for enhanced productivity (Setting New Zealand Apart) are broadly in line with the recommendations of the 2025 Taskforce report and are contained here on www.businessnz.org.nz