Greens' demise suits employers

An employers group has welcomed the shape of the new Government "without the direct involvement of the Greens".

The Northern Employers and Manufacturers Association said the shape of the Government made sense.

"Business will be pleased a government has been formed without the direct involvement of the Greens," said Alasdair Thompson, association chief executive.

Mr Thompson said retaining NZ First leader Winston Peters and United Future leader Peter Dunne as ministers outside Cabinet with collective responsibility only in the areas of their portfolios was also constructive.

"We are looking forward to confirmation of the new Government's commitment to economic growth through innovation and productivity in the speech from the throne."

Business New Zealand said the business community would be concerned at the cost of the policy concessions awarded, as well as Labour's election promises.

"Pre-election promises by Labour and New Zealand First totalled more than $7.5 billion over the next three years." said Business NZ chief executive Phil O'Reilly.

"We will need to see the fine print on policy costs, as a high-spending Government is bad news for business and economic growth."

He said there were encouraging signs in the announced review of company tax after representations by both New Zealand First and United Future, and the review of the carbon tax policy driven by New Zealand First.

- NZPA