Budget was 'prudent, sensible, responsible'

Relevant offers

Budget '09

Cuts everywhere but on taxes Who will pay for our super? Fear of school closures in wake of cuts Apology over job cuts at ACC We can relax: S&P approves Tax cuts off as Govt fights recession Budget was 'prudent, sensible, responsible' Housing: $323m for warmer homes Education: $1.68b but future cuts Health: $3b boost and the spectre of cuts

"Responsible", "prudent" and "sensible" were the catch-cries of business after the Government's Budget yesterday.

With the stage seemingly set for the "road to recovery" some business leaders were looking for more guidance on what the Government plans to do next.

Business New Zealand chief executive Phil O'Reilly said the tone in the the Budget was careful and prudent, but there was no evidence of an overall strategic plan. "What they [the Government] are signalling in the language in the Budget is that they are now focused on starting some of that work."

The initiatives around working parties on tax and infrastructure, the capital markets taskforce, and other forward-looking items were establishing some forward momentum for future budgets, he said. "I'll be more excited about the budgets in 2010 and 2011, that's where you'll see the political decisions they are making play out."

There were aspects that would have disappointed various businesses and industries, but no-one should have been surprised, he said.

KPMG chief executive Jan Dawson said the measures employed by the Government mimicked many that businesses were taking to survive the recession. But, unfortunately, the leadership those businesses expected out of the Beehive was not evident, with the Budget simply "buying time".

Ms Dawson said it was disappointing there was no stimulus for innovation, and questioned the lack of planning for managing the social implications of the forecast growth in unemployment.

"Budget 2009 is like throwing a sea anchor into a stormy ocean, it brings the vessel under control [but] more will be required to put the vessel back on course."

Wellington Chamber of Commerce chief executive Charles Finny applauded the balanced Budget with the extra infrastructure investment being critical. He was guarded in his acknowledgement of the good sense in delaying tax cuts, noting they were vital for international competitiveness and needed to be reinstated sooner than later.

Employers & Manufacturers Association Northern chief executive Alasdair Thompson said the $2 billion savings in government spending was well overdue, but said there was a lack of guidance and leadership on how to prompt New Zealanders to become more self-sufficient too.

- © Fairfax NZ News