The latest NZIER Quarterly Survey of Business Opinion shows New Zealand businesses are gloomy about the Government’s economic management, says ACT Leader David Seymour.
“Firms have a bleak outlook for themselves and the economy and this is a direct result of the Government’s economic policies.
“Business owners can see a capital gains tax, a higher minimum wage, and more red tape coming down the tracks and they are concerned.
NZIER says most businesses are expecting economic conditions to worsen over the coming months. Firms also face rising costs and most are reporting a deterioration in profitability.
“New Zealand will soon have the highest minimum wage in the developed world relative to the average wage. That means businesses will continue to struggle with costs and fewer people will be employed.
“If firms aren't succeeding financially, they can't take on more workers.
“It's concerning also that confidence in the building sector is weak. This should be a wake-up call for Phil Twyford who must fix the Resource Management Act so more houses can be built.
“The Government is lucky it has a fiscal surplus and strong terms of trade, because its approach to economic management has been shockingly bad.
“Jacinda Ardern and Grant Robertson need to take more seriously the concerns of the small and medium-sized businesses that are the lifeblood of our economy.”