Housing main worry ahead of Budget

Hawke's Bay Chamber of Commerce CEO Wayne Walford said the tax and training measures announced for Thursday's Budget would be welcomed by businesses. Photo / Paul Taylor

The Auckland housing bubble is a common theme for many local business owners when asked what they would like to see in the Government's full Budget announcement on Thursday.

Cycle tour company Takaro Trails owner Jenny Ryan said while she welcomed recently announced spending boosts for the tourism sector and the New Zealand Cycle Trail, she was concerned by the inflated Auckland housing market.

"We are seeing its impact in Hawke's Bay, especially for affordability for young people," she said.

Wayne Baird, New Zealand Technology Group regions manager, said he would like to see incentives for city-based businesses to move to regions such as Hawke's Bay, which would help national economic growth.

"Hawke's Bay has already seen some really cool businesses kick off down here and we are doing well in the horticultural sector. That encourages innovation and we already have some innovative thinkers here.

"If we can get more and more like-minded people then it is going to be really good for everyone."

Property analyst Pat Turley said the most pressing national economic risk was failure of the Auckland housing market "and subsequent ripple effects".

He would like encouragement for people and businesses to move to regions such as Hawke's Bay, and "weighty Government budget initiatives aimed at curbing Auckland housing market speculation".

Pipfruit New Zealand CEO Alan Pollard said he would like to see increased support for export sectors, and increased research funding "to help New Zealand industries remain internationally competitive and world leading".

Fig grower and processor Murray Douglas of Te Mata Figs said he would like to see more regional support and advice for small businesses.

"It is often forgotten small businesses employ the most people in New Zealand," he said.

While exporters received appropriate support, "at the end of the day we have to think about employment".

"We all suffer from being small and if government can have a role in better co-ordinating small businesses so they can employ people easily and effectively, to grow small businesses, then I think we have a fair chance of growing a more balanced economy."

Support was there when a business became large "but all major players were small somewhere along the line".

Hawke's Bay economist Aaron Drew said he would like to see the Government keep its 2009 promise to resume contributions to the NZ Superannuation Fund once the nation's books were in surplus.

He was concerned a large number of taxpayers were about to retire while the Government was talking about tax cuts.

"In a similar vein I would like to see KiwiSaver strengthened. It has been watered down in the last couple of budgets."

He said because of low interest rates there was an opportunity for the Government to invest in regional infrastructure.

Federated Farmers Hawke's Bay president Will Foley also wished to see infrastructural spending, especially in roading and broadband.

He hoped for "prudent spending - no lolly scramble".

Hawke's Bay Chamber of Commerce CEO Wayne Walford said changes announced to provisional tax was a welcome move forward, as was increased spending on job training.