Small Business Advisory Group should resign, says Act

Act Leader Richard Prebble has called on the Government's Small Business Advisory Group to resign.

He said yesterday that it was apparent from a Government briefing paper on the group's first meeting that its advice was being ignored.

Clearly, he said, the group "is just being used as PR propaganda" and "the honourable thing ... to do now is to resign".

The briefing papers, published in yesterday's Business Herald, show that the group advised the Government that changes to the Employment Relations Act regarding the sale or transfer of businesses or contracts, and to the Holidays Act to provide for a minimum of four weeks' leave, were not needed and could be harmful to growth.

But both policies went ahead.

Prebble and National's deputy finance spokesman, John Key, said this demonstrated that the Government was only paying lip-service to the views of small- to medium-sized businesses.

Key said the rejection of the group's advice on two major policy planks made a mockery of claims by Small Business Minister John Tamihere that the group "provides a powerful voice for small businesses and is being listened to".

The real truth, Key said, was that "this group fills an important role in the Government's propaganda machine".

"When it comes to the real issues, like building a pro-growth economy, Labour is treating the Small Business Advisory group with the same arrogant contempt that it treats anyone who disagrees with its PC agenda."

Prebble also attacked Tamihere's plan to hold 24 small business days round the country to let business-owners express their views.

"Small businesses don't have 24 days to give to the Government, especially when the advice is going to be ignored."

Research by the Chambers of Commerce had shown that "the average small business spends a day a week meeting Government-imposed obligations and ... asking for another day is out of the question".

Prebble said the Government should apologise and "admit that the advice ... received did reflect the views of all businesses, big and small".