Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Foreign Student “Tax” Will Generate Huge Dollars

2 May 2002


The proposed Government levy on the foreign student industry will likely generate upward of $6 million annually and put at risk major export earnings.

Michael Barnett, Chief Executive, Auckland Chamber of Commerce, was strongly disputing claims by Associate Education Minister Steve Maharey (Business Herald 2 May) that “only a small amount of revenue will be generated.”

Mr Barnett also disputed the need for a levy to set up a regulatory organisation. This will re-create a producer board-like control and diminish the industry’s ability to be innovative and progressive.

A snapshot of the industry strongly reinforced the notion that the levy is nothing more than a tax. Not only has there been no consultation, the proposal of a 1% levy appears to be an arbitrary number without reference to a confirmed plan to regulate the industry.

Based on a 1% levy, the 80 larger schools can expect to generate $1.6 million – or $20,000 each, and universities and polytechnics upward of $4 million across the sector. Other smaller schools would be up for between $10,000 and $20,000 each.

From a wider perspective, Mr Barnett said Government needs to carefully consider strategic implications of this proposal. Industry sources advise that their response to this levy will be to increase student fees, and tag invoices with a “Government charge”.

Regulating the industry because of alleged concerns at the way some businesses were marketing their services in China, lacks credibility against the wider damage that will be done to NZ’s image as a progressive export marketer.

Mr Barnett strongly advised Government to scrap the proposal and instead encourage a strengthened self-regulatory approach.

The juice industry is one example where self-regulation has recently been established. Similarly the wine and marine industries self-regulate based on a flat fee structure. “This is the way to go,” said Mr Barnett “and the Chamber would be prepared to assist the industry to establish a self-regulatory code as we have done with other member organisations”.


Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tornado Aftermath: More Storms Forecast For New Plymouth

Up to 30 homes were damaged Monday night when a tornado roared through a New Plymouth suburb last night , cutting power lines, tearing off roofs, and toppling trees. More>>

ALSO:

Government Investment Rejig: Sustainable Food & Fibre Futures Launched

Growing New Zealand’s food and fibre sectors sustainably and supporting a thriving economy are the hallmarks of a new investment programme announced today by Agriculture Minister Damien O’Connor. More>>

Dump Levy Options: Waste Work Programme Announced

Associate Environment Minister Eugenie Sage has announced a programme of work to take action on New Zealand’s long-neglected waste problems. More>>

ALSO:

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO: