Bay of Plenty businesses are giving a mixed response to the Budget – with most contacted by SunLive saying it will not affect them much.
The owner of a Tauranga café, who does not wish to be named, is opposed to the increase in employer Kiwisaver contributions, saying the business will absorb the cost themselves rather than taking it out of wage rises.
'Because the government has done this we can't penalise the employees – wage rises are on the table every year for good employees,” she says.
'Anything that the government does to add to our costs makes it more and more difficult for us.”
The Budget includes an increase in employer Kiwisaver contributions from two per cent to three per cent of wages – a rise some business owners are saying will be partially funded by lower wage rises.
Mount Maunganui Gusto café owner Markus Reibstirn says hard times mean wage rises were not even an option this year – even without higher Kiwisaver contribution.
Tauranga retailer Bill Campbell from ‘Fancy That' says the Budget will have minimal impact on them saying even the increased Kiwisaver contribution 'is not a major issue”.
'We don't have a great deal of staff and a lot of them aren't on Kiwisaver,” he says.
Stronger support is given by Brian Molloy Suit and Menswear manager Jason Dovey.
'For the long-term it's probably going to help the country,” says Jason.
'I think people need to think about the big picture.
'It's give and take, that's just the way life is.
'People have just got to realise what's gone on in our country and that it's probably going to take 15 years to get Christchurch back to normal.”
Jason doubts the increase in employer Kiwisaver contributions will ‘cripple' any business.



4 comments
future
Posted on 21-05-2011 14:55 | By traceybjammet
its a hard one and tricky to get right at the beginning. I was working in Sydney when there retirement fund started goodness it was messy. Now it is just part of life every Australian does it and its all contolled properly you know you cant touch it until retirement pretty much no exceptions as the aged pension is not a given in Oz its mean-tested and most rely on the super fund from when they worked when they retire
Democracy
Posted on 24-05-2011 18:12 | By PLONKER
Like is there a choice about that?
PAY THE PIPER
Posted on 27-05-2011 08:37 | By Vomit
In th real world the cost will come through as a price increase, there is no other choice about that.
NEEDLE ON THE CAMALS BACK
Posted on 27-05-2011 20:34 | By YOGI
That is all it takes, take a look at the papamoa Whitcoulls, so all great and warm fluffy ducks, but in teh end no profit means no jobs, get with teh program people!
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