NZ Catching Australia: Serious Value in Taskforce Report
January 18th, 2010
Business NZ Chief Executive Phil O’Reilly says the first report of the 2025 Task Force displays a comprehensive grasp of the factors which could propel NZ’s economy into higher growth. He says while the report covers the broad range of actions required for prosperity, its strength is its focus on Govt spending, noting “all sectors of NZ have a part to play in improving NZ’s economic prospects, but there is an overwhelming need for the Govt to improve the quality of its spending.”
O’Reilly says this needs to be done “not just by encouraging restraint by Govt agencies, but by transforming its approach to regulation, tax and Govt services.” He says Business NZ endorses the Task Force’s call for a cap on Govt spending, moves towards an overall top tax rate of 20%, and the establishment of a Regulatory Responsibility Act.
O’Reilly gives the report overall a pass mark - most of the recommendations 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. The recommendations represent a serious attempt to focus on and achieve action on an overriding issue for NZers - whether we will be poor or prosperous in 2025.”
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