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


Business divided over common Tasman currency

May 16th, 2004

Business divided over common Tasman currency; keen on common company tax, regulations

A business poll attracting 138 responses in 24 hours found opinion split down the middle on the benefits of a common trans Tasman currency or stock exchange.

But 78 per cent of manufacturers in the north favour a common trans Tasman company tax rate with 72 per cent support for a common regulatory framework.

"The closeness of the survey results on the common currency came as a surprise," said Bruce Goldsworthy, Manufacturing Services Manager for the Employers & Manufacturers Association (Northern).

"Opinion on the benefits of a common trans Tasman currency is split evenly between those who argue it would create a larger currency trading base thereby reducing volatility, while those opposed say it would cut New Zealand's competitiveness in Australian markets.

"With New Zealand's manufactured exports to Australia worth $5 billion a year, any potential loss of competitiveness should clearly be the subject of intensive study.

"Smaller exporters across the Tasman will find no comfort that large companies with operations on both sides of the Tasman could this week be deciding whether New Zealand adopts the Australian currency.

"Our sme exporters to Australia are more at risk than larger companies which have options over where they locate.

"Several respondents said they did not want our fortunes locked into Australia's mineral commodity trade, and that our two economies and Government policies were too different.

"Some businesses said a common currency would see us lose our ability to 'trade on the differential' between Australian and New Zealand costs of imported components and raw materials.

"The greatest road block to doing more business across the Tasman is summed up as 'Australian prejudice against buying from New Zealand.'"

"A surprise obstacle identified was expressed as 'getting paid by Australians. They've all got shackle marks on their ankles; their payment of accounts is abysmal'.

"Other major issues were Australian scale of production and freight.

"The overwhelming tenor of the responses on the common company tax rate said we need ours to be equal or lower than theirs to encourage both Australian and New Zealand investment here. But if an Australian headline company tax rate came with the rest of Australia's compliance and tax regime, no way.

"The 50 per cent support for a common stock exchange cited the benefits of greater access to capital, but we 'need imputation credits available in either country'. Those opposed said it would result in a loss of New Zealand identity or was not important to them.

"The 72 per cent supporting a common regulatory framework said it would remove duplication especially on labelling, packaging and transportation, while the 27 per cent opposed feared we would end up adopting Australian compliance costs which in many cases are even worse than ours."

Comments: Bruce Goldsworthy tel 09 367 0948 (b) 09 522 2723 (h)

The Employers & Manufacturers Association (Northern) survey asked yes/no questions on the four issues: For your trade with Australia do you favour a common company tax rates; a common stock exchange; a common currency; and common business regulations. Also asked was: What is the single biggest issue holding back your trade expansion to Australia?

The poll was taken on Wednesday, May 12th and open for only 24 hours, resulting in a 14% response rate.


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news