'Be bold' Peters urges Cullen

By VERNON SMALL deputy political editor

Former Treasurer Winston Peters is urging Finance Minister Michael Cullen "not to blink" in his first Budget on Thursday in the face of widespread opposition from business lobbyists.

"For the past few weeks there has been a deliberate campaign to force the Government to return to the policies that have bedevilled New Zealand since the early '80s," the New Zealand First leader said in a speech entitled "Branch Office New Zealand - Who is running this place?"

He said he had faced the same hostility from big business three years ago.

"These tycoons are like old-style trade unionists who held the country to ransom."

Mr Peters also launched a broadside at foreign-owned banks, criticising the profits they send overseas and the number of account errors in their favour.

He said Bank of New Zealand economist Tony Alexander, who had described Dr Cullen as a failure, should be reminded: "Ned Kelly had the decency to rob only Australians."

The BNZ is owned by the National Australia Bank.

"Now the Australian-owned banks are robbing us," Mr Peters said.

He said big-business heroes such as Sir Michael Fay, David Richwhite and Alan Gibbs had applauded the free-market economy, deregulation and state asset sales.

"After helping deregulate New Zealand and selling our assets, these people have now shifted their own assets offshore into a more regulated environment. Two words summarise that - cant and hypocrisy."

He urged Dr Cullen to be bold, although the Finance Minister has warned that his Budget will be boring and fiscally conservative.

Mr Peters called for incentives for exporters and innovators, tax breaks for startup companies, export finance guarantees, venture capital, research and development tax write-offs and a stand-alone state superannuation scheme to reinvest in New Zealand.