Source: ACT Party
“The Government’s Going for Growth agenda shows New Zealand has turned the corner. Governments ignored economic growth, taking wealth for granted and wasting billions until we started feeling poor,” says ACT Leader David Seymour.
“This Government’s focus on growth is team effort. ACT’s impact can be seen in a number of priority areas.
“To develop talent, we’ve implemented the attendance action plan, opened the first charter schools, and changed the Accredited Employer Work Visa. We’re removing red tape in Early Childhood Education and continuing reforms to get job seekers into work.
“For competitive business settings, we’ve repealed so-called ‘Fair Pay Agreements’, extended 90-Day Trials to all businesses, and revoked difficult requirements for accessing credit. We’re leading an inquiry into rural banking practices, reforming health and safety laws, reforming the Holidays Act and Employment Relations Act, conducting sector reviews for regulation of Agricultural and Horticultural Products, and Hairdressing and Barbering, improving Government Procurement Rules, and progressing the Regulatory Standards Bill.
“To promote global trade and investment, we’re reforming the Overseas Investment Act and have launched a new Minerals Strategy and Critical Minerals List.
“For innovation, technology and science, we’re liberalising genetic engineering laws.
“To deliver infrastructure for growth, we’re reforming and replacing the Resource Management Act and have established National Infrastructure Funding and Financing Limited. We’re developing the 30-year National Infrastructure Plan, and finalising the first Regional Deal between central and local government.
The big challenge
“The big challenge for growth is shrinking the Government part of the economy. There are only two halves to any economy, the public and the private sector, and it’s the private sector that provides the growth.
“Every dollar taxed to fund the public sector is a dollar a consumer can’t spend, or a business can’t reinvest in new jobs. Business is about taking risk, every percentage point taken in tax makes it less rewarding when the risks work out. Rational people invest less when taxes are higher.
“In that sense, the Government still has a big hill to climb, and it’s the mountain of waste left by the last Government. Pre-COVID, government spending amounted to 28 per cent of the economy, now it is 34. The Government must be relentless in reducing its spending.
“It is not only taxing and spending that holds people back, but regulating. Every compliance fee, every delay waiting for Government permission is a cost put on business. Like taxes, regulations drain the energy from business.
“That’s why it’s essential that the Government cuts red tape at every opportunity. We must run the ruler over rules that don’t make sense, then delete them. The commitment to passing the Regulatory Standards Bill is a landmark shift in the battle against red tape in favour of wealth and innovation.
“I’m proud of ACT’s contributions to this Government, especially the many contributions in this plan. For the first time in decades, we have a Government where it’s understood that Government activity and private activity compete for time and money. To grow the economy, we must shrink the Government.”