Little support for Fair Pay Agreements

Newly released documents show MBIE doesn’t support Fair Pay Agreements (MBIE is the agency that would implement the policy).  BusinessNZ’s Kirk Hope says the policy would cause massive industrial disruption and it’s not surprising there’s no support for it outside of the union movement.  “It’s alarming to learn the Govt proposed introducing at least 8 Fair Pay Agreements per year while claiming that there would be no more than two or three per year.  Fair Pay Agreements would place stifling restrictions on  businesses.  It’s time for the plan to be scrapped.”

Keep interest deductibility

Carbon tax on NZ exporters

Looming international carbon tax rules could pose problems for NZ industries.  The EU is introducing new border rules to tax energy intensive imports according to their emissions if they consider a country is not doing enough to tax those emissions at source.  ExportNZ’s Catherine Beard says the tax rules risk becoming new trade barriers as countries haggle over differing approaches to emission reductions.  “Carbon taxes are a less effective approach than emissions trading in any case. I don’t see EU carbon taxes being a good thing for NZ exporters.”

Global corporate tax rate

Other new international tax rules that could be problematic include the global corporate tax deal.  130 countries including NZ recently agreed on a minimum global corporate tax rate of 15%. It’s part of a deal to make giant tech companies pay more tax, but business will be concerned at the idea of tax rates being set internationally instead of by individual countries, as it removes local decision making and opens the door to continual upwards pressure on tax rates.  Several countries including the US are already pushing to move the minimum rate closer to 21%.

Punitive fair trading law

New legislation that has not received proper select committee scrutiny will be voted on in Parliament next week.  The Fair Trading Amendment Bill will introduce fines up to $600,000 for a new offence of unconscionable conduct: the “worst level” of unfair trade practices by business.  BusinessNZ is concerned the punitive Bill is being pushed through without any evidence that such practices occur in NZ and with no clear definition of what unconscionable conduct might actually be.

NZ's export sector is getting hammered because of decisions about vaccinations and MIQ places, says ExportNZ’s Catherine Beard.  “Exporters can't travel easily, even for critical business purposes.  While there’s nothing stopping a business traveller leaving NZ, they can't book an MIQ spot to get back in.  The Govt seems to be able to let in entertainers and sports stars but the system is very hard to navigate for businesses needing to re-engage with the world.  With total exports down 25 per cent for the March quarter, we need a better plan for safe travel for business.”