Small business at centre stage

Andrew Little
Andrew Little
Labour leader Andrew Little needs to convince small business owners he has their best interests at heart as he heads into the new political year.

In his first State of the Nation address yesterday, the new Labour leader managed to say all the right things.

However, he still has some way to go in getting business owners onside, particularly as he opposes zero hours contracts and Labour seems opposed to continuing with National's trial work periods.

Mr Little, who took over as leader late last year with the support of trade unions, needed to make a strong start to the new year, given Prime Minister John Key was about to give his State of the Nation about four hours later.

Mr Key concentrated on a new direction for social housing.

In the 20 page address, Mr Little, a former Engineering, Printing and Manufacturing Union secretary, made much of his ability to help large corporates such as Air New Zealand and Fonterra to find ways to retain workers and lift productivity.

This time, Labour is placing small firms and small businesses at the centre of growth and job creation.

High unemployment was a cost to the economy, to communities and to the Government. New Zealand spent about $300 million a year more on unemployment benefits now than it did six years ago _ money that could be used to instead drive growth, he said.

''That's why the next Labour government will make sure New Zealand has the lowest rate of unemployment in the developed world.''

A lot of people did not know small businesses were responsible for nearly one third of New Zealand's economy last year, Mr Little said.

Of the jobs created last year, 41% were in firms with fewer than 20 employees.

Yet the question of how to help those vital businesses to expand was rarely at the top of the political agenda.

''Well, I want to change that. Because as much as small business does now, I want them to do more. As successful as many firms are, I want them to do even better. Because I know there are huge opportunities for our economy in having a stronger small business sector.''

Businesses needed to be more nimble, flexible and innovative. And there needed to be more promotion of entrepreneurship, he said.

When working people took the opportunity to be their own boss and make a living off their own ideas and ambitions and their own energy, they needed to be sure they would not face unnecessary hurdles to do so.

And in a nod to nearly every political leader in the past two decades, Mr Little promised to cut back on the time consuming task of filling out tax forms.

Despite political parties claiming they will cut red tape, compliance costs continue to rise steadily, especially for smaller businesses.

However, Mr Little said Labour wanted small business owners to spend more time focused on making their business work, rather than filling out tax forms.

He also proposed finding ways for major investment funds, such as the New Zealand Superannuation Fund, to support promising local start ups.


What Little wants

• Making small business a priority.

• Ensuring more investment capital is available from funds such as the New Zealand Superannuation Fund.

• New Zealand having the lowest unemployment in the developed world.

• The end of ''small beer government''. Focus on what best suits New Zealand.

• Zero hours contracts will not be tolerated and will go.

• Jobs with dignity.


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