1 Nov 2011

Businesses sceptical of Govt economic plans

11:45 am on 1 November 2011

A new survey suggests the business community is concerned the Government has no economic plan.

A survey by Deloitte and Business New Zealand of 1000 businesses shows 28% of firms questioned believe the Government has no plan to raise the country's economic performance.

An additional 38% say they are unsure there is a plan.

Only 34% were convinced the Government has one.

Deloitte chairman Murray Jack says business leaders are looking to the Government for a plan to lift the country's economic performance but there is clearly scepticism it can do that.

Finance MInister Bill English says the Government does have a plan. He says it takes a systematic approach to raising the performance of the entire economy rather than creating what he calls "rinky-dinky" schemes that benefit some high-profile sectors.

Mr English says the plan involves better regulation and cutting costs for businesses, which will increase productivity and incomes for all New Zealanders over the long term.

Explain better, says O'Reilly

Business New Zealand chief executive Phil O'Reilly says the Government has done a poor job of explaining its economic plans.

He says he has raised with Government the perception that it has no economic plan and says the response is, "We have a plan".

He says his reply is: "Well, you need to explain it better to businesses because then they'll understand some of the policy trade-offs and things the Government's trying to make."