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


Tariff Decision Positive for Growth

Tariff Decision Positive for Growth

"The announcement of a plan to reduce tariffs to maximum rates of 5 and 10 percent by 2009 is a small but positive step in the right direction", the executive director of the New Zealand Business Roundtable, Roger Kerr, said today.

"The government's earlier decision to postpone tariff reductions was inconsistent with its goals of faster economic growth and greater global connectedness."

Mr Kerr said that New Zealand 's tariffs were a tax on exports, protected jobs in less competitive industries at the expense of more productive jobs elsewhere, and hit lower income consumers hardest. Unilateral reductions were superior to distorting preferential trade agreements.

It made no sense for New Zealand to wait for other countries to make similar moves. A policy to refrain from taxing our own consumers and misallocating resources only if other countries did likewise made no sense.

The Business Roundtable had recommended a faster programme for the removal of all tariffs, noting that the most protected industries had had 25 years to adjust to import competition.

"To help affected industries compete and improve resource use further, the decision should be complemented by moves to facilitate labour market adjustment, reduce domestic costs and prepare the ground for a move to full free trade", Mr Kerr concluded.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>