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Border security benefits everyone

Travel & Trade Industry Coalition

Media release 27 January 2004

Border security benefits everyone

Exporters and importers stand to be penalised and New Zealand's exports made less competitive by a planned border security charge.

The Travel & Trade Industry Coalition, representing more than 30 organisations that would be affected, says border security benefits every citizen, and should not be paid for by a small sector of the community.

Coalition spokesman Stewart Milne says the plan is for a flat tax of between $450 and $650 on each aircraft and ship clearance and an increase in transaction fees for all imports. "This is expected to raise about $20 million a year to pay for new border security measures required by the New Zealand Government. But increased security benefits everyone in New Zealand, not just exporters and importers - the cost should be met from general taxation."

Economic studies conducted by NZIER and Capital Economics (attached) agree that border security is a public good which should be paid for from by the Government. Exporters and importers should not be made to pay for services they have not requested.

It is the Governments role to decide what level of border protection and supply chain security is required and to adequately fund its border agencies to carry out this work.

Industry will be covering its own high level of compliance costs and the Government should meet its own border agency costs.

Mr Milne says a select committee is due to report back on the Border Security Bill in March, but in the meantime the Customs Service is convening a group to discuss how best to implement the charge.

"The fact that the Customs Service is already considering ways of implementing the fee before the select committee has reported back suggests a predetermined outcome," Mr Milne said.

Auckland International Airport Limited
Aviation Industry Association of NZ (Inc)
Board of Airline Representatives NZ (Inc)
Business New Zealand
Canterbury Employers Chamber of Commerce
Canterbury Manufacturer Association
Christchurch International Airport Limited
Cruise New Zealand
Customs Brokers and Freight Forwarders
Federation of New Zealand Inc

Dunedin Airport Limited
Employers and
Manufacturers Association (Northern)
Employers and
Manufacturers Association (Central)

Export New Zealand
Federated Farmers of New Zealand (Inc)
Forest Industry Contractors Association
Horticulture Export Authority
Importers Institute
Logistics & Transport New Zealand
NZ Association of Shipping Agents
NZ Business Roundtable
NZ Footwear Industry Association
NZ Forest Owners Association
NZ Retailers Association
NZ Timber Industry Federation
Nursery & Garden Industry Association
Otago Southland Employers Association
Palmerston North Airport Limited
Queenstown Airport Corporation Limited
Shippers Council
Tourism Industry Association NZ
Travel Agents' Association of NZ/
Inbound Tour Operator Council of NZ

Waikato Regional Airport Limited
Wellington International Airport Limited

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