26 May 2016
The 2016 budget reinforces business as usual and offers no surprises. It is about building on a strong economy, giving the Government the opportunity to generate surplus's and the wriggle room to reduce debt.
There are no significant steps to accelerate or support business growth, most likely because the Government sees business doing OK in the context of the current settings.
It is encouraging to see an emphasis on Innovation, Science and Technology - all of which is fundamental to our future prosperity.
The simplification of tax treatment for SME's (announced before the budget) is welcomed, as is the ongoing support for roading and rail infrastructure. From a Christchurch rebuild perspective, it is about getting on with it.
Please find BusinessNZ's summary of today's budget announcement here - and their media release below. The Canterbury Employers’ Chamber of Commerce is a Foundation Member of BusinessNZ, New Zealand's largest business advocacy agency.
BusinessNZ: Budget prudent and balanced
Budget 2016 shows prudent economic management, says BusinessNZ.
BusinessNZ Chief Executive Kirk Hope says positive GDP and employment growth figures, and projected growth in exports, investment and other indicators give confidence about New Zealand’s economic path.
He said business would support the Budget’s focus on paying down debt and investing in growth.
“Infrastructure funding – especially for roading, tourism and biosecurity - is well-placed to support key industries.
“More investment in innovation – through the Pre-Seed Accelerator Fund & Callaghan Innovation’s Accelerator Programme – is also appropriate.
“And more funding for apprenticeships and other areas of education will help address the skill needs of business.
“Investment in growth along with a significant amount of social spending has delivered a reasonably balanced budget, while a solid debt repayment path gives confidence in future stability.
“Business would have preferred a Budget configuration that allowed for tax reductions as well.
“We’d advocate for tax cuts as well as prudence and balance in future plans.”