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Andrew Dickens: Government needs to stop attacking business

Author
Andrew Dickens,
Publish Date
Fri, 12 Oct 2018, 12:33PM
Prime Minister Jacinda Ardern. Photo / NZ Herald

Andrew Dickens: Government needs to stop attacking business

Author
Andrew Dickens,
Publish Date
Fri, 12 Oct 2018, 12:33PM

So I'm a reasonable man and I'm not prone to hyperbolic statements. I believe that most New Zealanders and virtually all New Zealanders in leadership positions are doing their best to do the best thing for New Zealand.

I'm prepared to give any government a fighting chance. This one is wanting to spend money, as money becomes available, on stuff we've neglected for a while as we recovered from a big economic shock in 2008. On a macro level, this government has the same attitude as National's coalition, who also had the same attitude as the Labour-led government before it. Run a surplus, keep debt under control. The difference is how they spend the tax. With this government, the benefit spend is up, education spending is up and one day when all the working groups make their mind up they might do something else.

So they're not the big bad wolf. They just have different priorities to the last lot

But at the moment I facepalm at some of the stances being taken by Government.

Knowing that business is leery of a lefty led government you'd think they'd be aware of what they call these days the optics.

So what have we got? The past week has seen the Prime Minister telling off oil companies and now supermarkets.

I'm no more suspicious of the oil companies than I am of any other business that wants to turn a profit. The fact that petrol is cheaper before taxes than Coca-Cola and bottled water blows my mind, considering how much has happened to get the remains of dinosaurs out of the ground and into my car at the end of the world. Our horror at the price of petrol is more a sign of how much we take this miracle for granted.

But taking aim at the oil companies when 50 per cent of the price of a litre goes into government and Auckland council hands' was always going to be a bit rich. And honestly, what can you do? Regulate the price? Nationalise the industry? Start any of those things and it won’t be business confidence falling, it would be outright rebellion. In reality, this is just a tut tut. And oil companies can do exactly the same back.

So after that, we got questions about supermarkets and calls for inquiries. James Shaw went and compared our prices with Australia. What a mistake. We’re not comparable. Australia's productivity beats ours. They earn more. They're bigger. They have nine chains we have two. Our national population is the size of a big Australian city. And the fact of the matter is that starting a supermarket is a big and expensive affair. There's a supermarket for sale right now in the commercial real estate pages. They want $35 million. To get in the game is a big ask. Frankly, we have all the competition we can afford.

So this week we've had political attacks on our petrol and supermarkets. Earlier this year Shane Jones attacked our airline and Fonterra. So who’s next for a scolding. And they wonder why business is concerned and prepared to tick the “I don’t have confidence in you” box when asked.

A word of advice, look after your own house before you attack others, or you'll just make enemies from the people who make the work, who pay the wages to the people that pay the taxes that we need to make things even better than they already are.

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