Michael Cullen delivers his 2007 Budget in Parliament today. It has been heavily flagged as a 'Budget for Business'.
It comes at the same time as another NZ manufacturer, Dynamic Controls, moves 200 jobs to China.
Business in New Zealand now operates in a global landscape where fundamental structural changes have created a number of new models. Dynamic Controls did not blame Government policy for their move. It knew it had to move its supply chain closer to its market, its customers.
A drop in corporation tax to 30% and any tax credits for R & D in today's Budget will be welcomed. However when I wake up tomorrow, little will have fundamentally changed. The challenges posed both by, and in, offshore markets will remain.
My personal wish? An increase in funding to NZTE to expand their offshore presence to support NZ businesses reach new markets.
It is with this global mindset that I will judge Cullen's performance today.
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