Red tape holding back businesses

Government red tape is again at the top of the list of constraints for businesses.

Over the past couple of years, a labour shortage has been the chief concern but the latest business survey by international accounting firm Grant Thornton shows compliance costs and obligations are the major gripe.

Spokesman Warwick Jones believes the issue is affecting competitiveness. He says businesses need to concentrate on productivity but that is difficult with the amount of compliance required by the Government.

He says 42 per cent of businesses cite red tape as the major constraint to expansion.

- NEWSTALK ZB