Business confidence in freefall

Business confidence?has sunk to an unprecedented low, with New Zealand now being the country with the second lowest confidence in the O.E.C.D. Quote:

New Zealand has tumbled down the OECD business confidence rankings to the second lowest among countries in the developed world.

Two years ago New Zealand was the third highest in the OECD, but now everyone except South Korea is above New Zealand.

In June 2016 the total business confidence for the OECD was 100.08 and New Zealand rated at 100.93, the third highest.

In June 2018 the total was 101.23 and New Zealand rated at 99.54.

Amy Adams, National finance spokesperson, said it was a shocking revelation given New Zealand has typically been a haven of political and economic stability.

“Given the high level of political uncertainty around the world it is a shocking revelation that New Zealand ? typically a haven of political and economic stability ? has the second lowest level of business confidence in the OECD,” Adams said.

Adams called the fall a damning reflection of the current Labour Government’s economic management. End quote.

How can it be anything else? Yes, there are trade wars and issues in Europe, but our markets are resilient and much of our trade is in primary industries. New Zealand has no reason to lose confidence just yet, except for the fact that it has a government hell-bent on destroying its buoyant economy. Quote:

“It is clear the Government’s low-growth policies are having a major impact, and are driving New Zealand’s appallingly low business confidence ? though the Government is still refusing to acknowledge that.” End quote.

When you have a government that simply destroys a profitable industry without warning or consultation, confidence in the business sector is bound to sink to the floor. No amount of ham acting by Shane Jones can hide the fact that the decision to destroy the oil and gas industry was tripartite. They were all in agreement about what they were doing.

Now, we have labour reform proposals that are very worrying to business, including the reintroduction of collective contracts. Grant Robertson chirps away about ‘bringing business along’ with the government, but when pressed, he admits that the government will not change their labour reform plans, no matter what business leaders want. Quote:

The business confidence index (BCI) is based on enterprises’ assessment of production, orders and stocks, as well as its current position and expectations for the immediate future. Opinions compared to a “normal” state are collected and the difference between positive and negative answers provides a qualitative index on economic conditions. End quote.

Get set for job losses and redundancies. It is going to happen. And who will be the ones most affected? You guessed it. Those on low incomes. But don’t worry. The government has already created a wonderful free-for-all welfare system. They will just have to increase taxation to pay for all the extra beneficiaries that will be coming on stream very soon.

What is it they say about socialists? Eventually, they run out of other people’s money.

39%
×