English on the economy

A useful piece in the NZ Herald on Bill English and the economy. Some highlights:

* focus will be on restoring a risk-taking environment and pulling back the smothering influence of an over-regulated business environment.”

* An incoming National Government will be setting out to lower the tax rates.
Because of the close ties between the exchange rate and the housing cycle there have been calls for a more stringent tax treatment of housing, but they cut no ice with English.

* With the property debate, instead of a harsher tax treatment of housing, maybe a more lenient tax treatment of investment.

* “Debt is not the big issue it was for 15 or 20 years. That is not the risk. The risk now is getting too complacent and thinking the cash is going to keep flowing if you don’t work for it.”

* He questions Labour’s strategy that the Government should be the biggest saver and investor in the economy.

* National favours partial sell-downs of the state-owned generators. It would free up capital for investment in other infrastructure, while imposing the disciplines of capital markets on those companies.

I like the approach of looking at reducing the tax burden in the savings area, rather than trying to increase taxation in the housing area,