By DITA DE BONI
A intimate setting with more fractious overtones greeted Dr Michael Cullen last night at yet another post-Budget business address.
The event in downtown Auckland, sponsored by Wilson & Horton, Deutsche Bank and Bell Gully, was another chance for corporates to hash over the Finance Minister's most recent composition and grill him on plans for big-picture growth in the rest of Labour's term.
The issues remained the same - questions over tax breaks for research and development, the prudence of setting money aside for a state superannuation fund, and initiatives to stem the brain drain.
Dr Cullen defended his Budget, saying criticism by business that the document had "no big idea" was unfair. He said it contained "a lot of co-ordinated, sensible ideas" that would work together to aid business and build confidence.
He backed Prime Minister Helen Clark's apparent softening on the issue of tax breaks instead of grants for research and development, saying deductible tax breaks would be willingly implemented if someone could come up with solving the "black hole" issue - where creative accounting would leave a "black hole" in Government revenues.
Former trade minister Dr Lockwood Smith claimed budget figures had "no credibility" and predicted the Government would have great difficulty sticking to its spending allocations for the next two years, a charge Deutsche Bank strategist David Plank concurred with.
Mr Plank also drew attention to the Government's superannuation plans, saying he hoped there would be debate on the issue before it was presented to the public as a fait accompli.
Business Herald columnist Brian Gaynor said he was disappointed the issue of exports had not received more coverage in the Budget, since New Zealand's dismal export performance of the past two years had led to its serious current account problems.
Business leaders surveyed outside the meeting seemed to appreciate Dr Cullen's efforts to attend business community functions post-Budget, but were divided over the probable success of several initiatives.
Cullen goes back into lions' den
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