Labour Industry Policy Giant Leap Backwards

Labour's industry policy is a giant leap back to the past which would hurt those it purports to help, Enterprise and Commerce Minister Max Bradford said today.

"Despite what Labour says, it will be the Alliance that will determine Labour-Alliance bloc industry policy. Labour leader Helen Clark has already made it clear that Alliance leader Jim Anderton is likely to be named as shadow Minister of economic development in a Labour-Alliance bloc Cabinet. This would set New Zealand on a slippery slope back to failed policies of the past," Mr Bradford said.

"The Alliance-Labour agenda would mean red tape by the mile, high taxes, tariffs, state-owned banks and industry subsidies for the selected few.

"For example, Labour proposes 'enterprise financing' - setting itself up as a lender of last resort of SMEs (small to medium sized enterprises). In other words, it wants to fund losers - if a business idea is not good enough to get money elsewhere, then Labour will give them a handout.

The impact of Labour's tax and regional development policies is to snatch $400 million in one hand and trickle to industry $100 million from the other.

"And no matter what Labour says about its tax policies, the Alliance agenda would bring a raft of new taxes.

"Instead of tired-old policies and higher taxes, the future for New Zealand and New Zealand business is to harness our innovation and creativity. This is what the National-led Government is doing with its Five Steps Ahead programme."