The Wellington Regional Chamber of Commerce has congratulated the government for signalling a full programme of reforms for the year ahead including reform of the tax system.

"The government has a lot of work to do and the Prime Minister's Statement to Parliament today gives the business community confidence that the government intends to grab the bull by the horns and do what needs to be done," said Chamber CEO Charles Finny.

"We are pleased with the government's intention to rebalance the tax system and we strongly support the direction outlined in today's speech. We have long advocated of a low-rate, broad based tax system as the key to improving work incentives and boosting productivity.

"A small rise in GST would be fully acceptable if it is accompanied by equivalent reductions in income tax.

"The government's recommitment to infrastructure investment, better and less regulation, free trade agreements and the unlocking of mineral resources are also welcome," Mr Finny concluded.