Labour gets bouquet on trade, brickbat on petrol

Landmark free-trade talks with China are the Labour-led Government's single biggest success, Auckland Chamber of Commerce members say.

But they believe its unwillingness to cut taxes on petrol at a time when world oil prices are hitting record highs is its greatest mistake.

The trade talks, the first China initiated with a developed Western nation, are just one example of the successes in the trade arena.

Chamber members also give the Government credit for New Zealand's standing in trade forums such as the World Trade Organisation and for stitching up other trade deals such as the agreement with Singapore, Chile, and Brunei and another with Thailand.

Other achievements included avoiding a coalition with New Zealand First, and Budget concessions to information technology investment and research and development.

Members also congratulated the Government for fiscal prudence and managing the economy conservatively.

Still, members fear an expected easing of the dollar from the current highs of around 70USc will add to the almost 30 per cent increase in petrol prices New Zealanders have had to weather since December.

When asked about the Government's greatest mistake, one respondent said: "The petrol taxes and the oil companies are taking too much of our money and causing higher inflation than is necessary."

Frequently, respondents said the Government was arrogant. "We need a vibrant economy not a nanny state dictated to from Helengrad," said one.

New employment legislation, a perceived running-down in the nation's defence capabilities, too-tight immigration policies and even the relaxation in the terms of student loans figured among concerns.

Chamber chief executive Michael Barnett said: "The responses to the question on the Government's successes are balanced and in fact give credit for issues around prudence, trade and so on.

"However, the Government's difficulty in being seen to be more trusting of business and willing to partner with them for the good of New Zealand comes through."