Labour’s policy for small business contains some useful initiatives, says BusinessNZ.

The policy released today focuses on improving government procurement, cutting red tape and establishing ‘central government regional offices’.

BusinessNZ Chief Executive Phil O’Reilly says enterprises will be supportive of Labour’s pledge to help more small businesses gain government contracts.

“Government buys many goods and services from the private sector, but small companies often miss out on the opportunity to bid. Having central government more focused on small businesses when letting procurement contracts would make a big difference to their ability to leverage and grow.

“Labour’s promise to reduce unnecessary regulation, including significantly reducing GST and income tax compliance, is particularly welcome. Our own surveys show the compliance burden falls four times more heavily on small than on larger businesses. Business would be happy to work with government in identifying areas where the regulatory load can be slimmed down.”

But Mr O’Reilly said Labour’s policies in other areas – including employment and resource management law – were ‘regulation heavy’, and were actually part of the problem.

“For example, our surveys of small businesses show they strongly endorse 90-day trial periods, because they prove a window of respite from the over-regulation that makes employing people so difficult – yet Labour would abolish this successful policy.

“We would like Labour to consider the totality of their policies in their effects on business. Cutting red tape for business should logically mean taking a razor to a number of other Labour policies.”

He said the proposal for central government to have outposts in the regions, located in Enterprise Development Agency premises, was probably of less value to small business, as there was already a multitude of advice agencies for business, and an additional public servant stationed in each region was unlikely to provide much additional value.

Contact Phil O’Reilly 04 4966552 or Kathryn Asare 021 555 744

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