Alliance Is Driving Labour's Industry Policy

"The Alliance Party's leader and economic development spokesperson, Jim Anderton, will determine Labour's industry policy, not Labour's Industry spokesperson Pete Hodgson," Hon Max Bradford, Minister for Enterprise and Commerce said.

Labour was due to release its industry policy this week but Mr Bradford advised business to listen to what Mr Anderton's policies are rather than Labour's.

"After all, Mr Anderton is likely to be named as a shadow Minister of Industry Development in the Labour-Alliance bloc "ideal cabinet". That cuts Mr Hodgson out," Mr Bradford said.

"As deputy leader of the Labour-Alliance bloc and the principle driver of industry policy Mr Anderton would undoubtedly lead New Zealand industry back to the past. What Pete Hodgson promises will be largely irrelevant, he won't even be in the debate.

"Mr Anderton has already said the Alliance does not think Labour's promises of tax increases go far enough. This means industry should expect a raft of new taxes from the Labour-Alliance bloc. These taxes would be used to fund the failed policies of new state-owned banks and industry subsidies. "We have seen Michael Cullen backtrack already on no more tax increases other than the 33 cent tax rate to 39 cents for middle income New Zealanders. Only two weeks ago he was forced to admit fringe benefit taxes would rise," Mr Bradford said.

"What is more, the Labour Party refuses to guarantee that other taxes won't go up. Small companies can expect a 39 cent tax rate, the return of death duties and a capital gains tax if the Labour-Alliance bloc does become government.

"They have signalled that it is possible, if not likely, after a so-called independent tax taskforce report. You don't have to be a starry-eyed cynic to know how that will be a carefully chosen group of Labour-Alliance "experts" to get the result that Labour and Alliance want higher taxes.

"The Alliance's protectionist support for tariffs and dislike of foreign investment will send New Zealand back into the industrial age.

"More red tape, tariffs, no foreign investment, with trade unions and bureaucrats running the Labour-Alliance bloc industry policy is certainly not what industry needs. What industry needs is vision for how New Zealand can prosper in the knowledge age, with the Government being a willing and active partner.

"Labour's industry policy, with or without change, doesn't have a hope of succeeding, partly because it is backward looking to an Alliance agenda and because its declared intention to raise taxes will hurt those that the policy purports to help, " Mr Bradford said.