‘Sky-High’ Retail Confidence Under National, At Risk Under Labour

Retailers are more confident in the economy than they have been in two years, signalling that National’s economic plan is working, National’s Finance and Economic Growth spokesperson Nicola Willis says.

“New Retail NZ data out today shows 75.1 per cent of retailers expect to meet or exceed their targets in the fourth quarter. The share expecting to exceed their targets has almost doubled compared with the average of the previous eight quarters.

“That’s great news for retailers, their staff and the Kiwis they serve. Kiwis have done the hard yards over the past three years and it’s paying off. Our economy is growing faster than Australia and 220,000 new jobs are expected over the next four years.

“But this progress can’t be taken for granted.

“Speaking to Newstalk ZB this morning, First Retail Group Managing Director Chris Wilkinson pointed to strong indicators in footfall and spending, but noted that ‘impacts on taxation, any impacts on home ownership and those aspects really stifle consumer confidence’. He also said, ‘the real importance for this country right now is continuity’.

“That highlights exactly the risk of a change of government to a Labour-led coalition that would introduce new taxes and significantly increase government spending.

“Labour and its coalition partners want to hit Kiwis with new taxes that would take more out of their pockets. On top of that, their plans to ramp up spending would put upward pressure on interest rates, pushing up mortgage costs and making it harder for Kiwis to buy and keep their own homes.

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“Higher taxes and higher interest rates are a recipe for weaker consumer confidence – just as households and businesses are starting to feel the recovery.

“Our plan is working, but National needs more time. We can’t leave the job half done. A Party Vote for National is how we can secure the gains we’ve made and finish the job.

“The choice couldn’t be clearer. Stick with National’s plan for a more secure future, or risk it all on a Labour-led four-party coalition with six leaders, nine new taxes and Chloe Swarbrick as Finance Minister.”

Transcript:

Ryan Bridge: “So you’re not worried too much about a change of government on the shop front?”

Chris Wilkinson: “Oh, I wouldn't necessarily say that, Ryan. What we're seeing is that there's been some pretty strong indicators coming through in terms of footfall, in terms of spending. But as we all know, impacts on taxation, any impacts on home ownership and those aspects really stifle consumer confidence.”

Ryan Bridge: “Who do you want to win the election?”

Chris Wilkinson: “Well, look, the real importance for this country right now is continuity. I think that there's good, strong financial guardianships going to be absolutely necessary as we head into the next training.

Chris Wilkinson: “Yeah, look, I mean, if we get a very strong, decisive lead in any one of the groups this weekend, I think that's going to be important. If we're in that hanging stage for a period... that will just continue to just keep this, it'll stifle consumer confidence.

Ryan Bridge: “So do you reckon people actually stop going out, you know, if you want to buy a sofa or you want to go out and buy something new for your house, people don't tend to do it if we're in limbo?”

Chris Wilkinson: “Yeah, that's right. I mean, we look at the general economy in that way as well, and we know what's been happening over recent months. There's just been that Just in that holding pattern that many of the big businesses have had, government departments have had, you kind of feel it wherever you're travelling around the country and talking to businesses, it’s the same story.”

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