Business is looking to the Coalition for direction, writes ALASTAIR SLOANE.
The wheels will fall off Prime Minister Helen Clark's Government unless it addresses the lack of confidence in the business community.
That is the report card 120 days into the Labour-Alliance Government from the country's biggest car company, Toyota New Zealand.
Managing director Bob Field said: "Unless this new Government connects better with business, I fear our open-market economy may generate growth in exports of the wrong kind - that of our investment dollars and talented entrepreneurs.
"It seems to me that the urgency in which forums have been called to discuss issues such as a new constitution and genetic engineering, instead of a much-needed business development summit, indicates a worrying lack of understanding about business needs and priorities."
Mr Field, speaking at the launch of a new leasing scheme for secondhand Toyota cars, said Labour Party election rhetoric had been strong on supporting business growth.
But many of the new policy actions - reversal of partial privatisation of the ACC, industrial legislation and tax increases - had not supported the view of business people.
Many businesspeople had no idea where the Government stood on business issues or economic development.
Mr Field said that while inflation was under control and forecasters predicted healthy growth over the next year or two, the fiscal balance was uncertain due to Government spending aspirations.
Also, the troublesome trade balance was seemingly outside Government control in an open-market economy.
The open-market economy meant New Zealand would always be exposed to fluctuations in world trade.
With less than 1 per cent of world trade, it was not only dependent on the performance of the export sector but was also at the mercy of the local appetite for imported products.
"And with over 70 per cent of our stock market owned by offshore interests, we have an increasing and dangerous reliance on international investors to fund our trade deficit," said Mr Field.
The Government had yet to show it could provide effective economic leadership, in spite of an approval rating for Helen Clark's stewardship.
"We are still not paying our way and if the United States economy ever goes into recession - even a mild one - we are likely to be in trouble."
Car leader tackles Govt
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