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

 

Government Throws Out Sea Anchor

Statement made by Paul Dunne, KPMG

Budget 2009 throws a sea anchor to stabilise an economy floating on a very stormy economic sea. However, more is required to put the economy back on course toward a fiscally sustainable position.

The deferral of tax cuts and suspension of contributions to the New Zealand Superannuation Fund were anticipated by many, but these are just preliminary steps required to commence moving down the Minister of Finance’s touted ‘Road to Recovery’.

The Government seems to be buying time to enable it to fully consider its revenue and spending options. Budget 2009 documents make it clear that a number of initiatives are underway, but still in planning stage.

The recently established Tax Working Group, of which KPMG is part, may assist Government’s thinking in relation to options around the tax system. However, tax revenue is but one side of the equation. Spending requires focus to demonstrate it is efficient and effective.

Taxpayers including large and small businesses fund the expenditure through taxes and charges, and we need it to be clear that those taxes are both necessary and used productively.


ENDS

© 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>>

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:

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>>

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>>