ECONOMY FOCUS FOR 2010
As New Zealand, Hawkes Bay, and Wairoa, emerge from recession the focus for 2010 has firmly shifted towards significantly lifting our economic performance.
Economic growth matters because it creates jobs, lifts incomes, and improves the living standards of New Zealand families. Only through lifting our economic growth can we close the gap with our trading partners and create new jobs to replace those lost during the recession.
Heading into 2010, we have a good platform. Economic growth is stronger than expected and unemployment lower than projected, thanks to a more stable global economy and New Zealand businesses buckling down and weathering the storm. I’d like to think that that John Key and Bill English have played a steady hand in helping to steer us through some pretty rough seas.
New Zealand is on the road to recovery, but we still face risks. Global growth may yet weaken again and there are multiple challenges in our own economy.
Unless we can create the right environment for New Zealand businesses to compete on the world stage, we will not achieve the sustained increase in incomes National aspires to.
We have identified six key areas as potential drivers of growth. These are investment in productive infrastructure; removing red tape and improving regulation; supporting business innovation and trade; improving education and lifting skills; lifting productivity and improving services in the public sector; and strengthening the tax system.
Budget 2010 will feature initiatives across these areas.
We have also set some of the best minds in the country the task of coming up with ways to lift growth. Among the groups to report back to the Government recently is the Tax Working Group. This report on ways of improving New Zealand’s tax system will contribute to our Budget decision making.
Equity and fairness for households and the economy will guide our consideration of options identified by the tax group. The only thing we have ruled out is a capital gains tax on the family home.
In considering any significant changes to the tax system National believes the benefits must clearly outweigh any potential difficulties. We will consider proposals that are fiscally neutral. This means that the Government will not collect more tax overall, but may change the way we are taxed.
National believes tax policy can play a role in increasing growth and productivity. We want to ensure our tax system rewards people for hard work, encourages them to save, and helps Kiwi families to get ahead.
National wants to bring about positive change that will make a big difference to New Zealand’s economic future and 2010 is the year for that.
If you’d like to discuss this column or meet me for an appointment please don’t hesitate to contact Mary Crarer at our Wairoa office on 838-4804.
As New Zealand, Hawkes Bay, and Wairoa, emerge from recession the focus for 2010 has firmly shifted towards significantly lifting our economic performance.
Economic growth matters because it creates jobs, lifts incomes, and improves the living standards of New Zealand families. Only through lifting our economic growth can we close the gap with our trading partners and create new jobs to replace those lost during the recession.
Heading into 2010, we have a good platform. Economic growth is stronger than expected and unemployment lower than projected, thanks to a more stable global economy and New Zealand businesses buckling down and weathering the storm. I’d like to think that that John Key and Bill English have played a steady hand in helping to steer us through some pretty rough seas.
New Zealand is on the road to recovery, but we still face risks. Global growth may yet weaken again and there are multiple challenges in our own economy.
Unless we can create the right environment for New Zealand businesses to compete on the world stage, we will not achieve the sustained increase in incomes National aspires to.
We have identified six key areas as potential drivers of growth. These are investment in productive infrastructure; removing red tape and improving regulation; supporting business innovation and trade; improving education and lifting skills; lifting productivity and improving services in the public sector; and strengthening the tax system.
Budget 2010 will feature initiatives across these areas.
We have also set some of the best minds in the country the task of coming up with ways to lift growth. Among the groups to report back to the Government recently is the Tax Working Group. This report on ways of improving New Zealand’s tax system will contribute to our Budget decision making.
Equity and fairness for households and the economy will guide our consideration of options identified by the tax group. The only thing we have ruled out is a capital gains tax on the family home.
In considering any significant changes to the tax system National believes the benefits must clearly outweigh any potential difficulties. We will consider proposals that are fiscally neutral. This means that the Government will not collect more tax overall, but may change the way we are taxed.
National believes tax policy can play a role in increasing growth and productivity. We want to ensure our tax system rewards people for hard work, encourages them to save, and helps Kiwi families to get ahead.
National wants to bring about positive change that will make a big difference to New Zealand’s economic future and 2010 is the year for that.
If you’d like to discuss this column or meet me for an appointment please don’t hesitate to contact Mary Crarer at our Wairoa office on 838-4804.
