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Terrorist Tax To Proceed

Travel & Trade Industry Coalition

20 May 2004

Terrorist Tax To Proceed

The Travel and Trade Industry Coalition reacted angrily today to the Government's rejection of the Coalition's compromise solution to allow this matter to be handled in a joint (Government / Industry) way.

Stewart Milne the Secretary to the Coalition said that from the time back in November last year when the Minister of Customs announced out of the blue that the industry must pay for all the added Customs Department costs, it had been a case of the industry trying to get the Government to adopt a more reasonable approach and to consult over the public benefit elements in the security measures that are being introduced

The Travel and Trade Coalition acknowledges that the Government has moved its position and we welcome its intention to move towards a principles based cost recovery regime. However it is totally unreasonable to expect industry to be comfortable with an imposed Government decision where industry must meet all its own costs and 80% of the Government Agency costs during an unnecessarily long and extended interim period. Furthermore the Government's intention to target a sector is totally inappropriate given that supply chain security costs are being incurred across all sectors.

The NZ Government's attitude is diametrically opposite to what is happening in North America which is leading the efforts for increased security and where both the US and Canadian Governments are meeting their own costs and contributing to industry costs as evidenced by the Canadian Government's decision earlier this month to provide up to 75% of the industry's costs.

ENDS

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