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

 

Compliance costs hitting skills and growth


Compliance costs hitting skills and growth harder than it seems

The findings of the KPMG/Business New Zealand survey of about 1000 firms that compliance levied the average business by $43,876 in 2004 is just the tip of the compliance cost iceberg, the Employers & Manufacturers Association (Northern) says.

“The Survey measured only the time and resources deployed by firms to fulfil their obligations to government,” said Alasdair Thompson, EMA’s chief executive.

“It was not charged with measuring the actual dollar costs involved, and it was not designed to measure the extra skills and other people resources that are a cost to the tax payer nor the opportunity losses.

“These extra costs to all taxpayers are huge and growing rapidly, and are making the skills shortage crisis far worse than it needs to be.

“Since June 2000 central government has added 7500 people to its payroll for administration and defence, an increase of 17 per cent. In the same period the private sector took on just nine per cent more.

“This is unsustainable, but even more so since the government has been increasing the salary and wages of its employees far faster than the private sector.

“Since June 2000 the state sector’s wage and salary bill funded by the taxpayer has gone up 32 per cent to reach $2.5 billion, an increase of $620 million a year.

“The Labour Cost Index confirms these figures: in the last three years central government’s pay packets went up 7.6 per cent while the private sector’s went up 6.4 per cent.

“Though government is blaming employers for not investing enough in skills training to grow their businesses and the economy, it’s the government that is sucking skilled people into unproductive jobs in the public service.

“It has to, to administer all the compliance and new regulations it keeps foisting on the private sector’s wealth creating engine.

“If government was serious about restoring our standards of living to the top half of the OECD to get better education and health services, it would start rolling back its unnecessary regulations and new charges to reduce the numbers and costs of its public service.

“That would free up people and resources that the private sector could make good use of, to the benefit of all New Zealanders.”


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


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>>

ALSO:


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>>

ALSO:

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>>