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


Bank CEO calls for tax incentives for savers

18 May 2013

Bank CEO calls for tax incentives for savers

Full Transcripts and video will be on our website at 0900 Sunday May 19.

BNZ CEO, Andrew Thorburn is calling for tax incentives for saving.

Speaking on TV3’s “The Nation” Mr Thorburn said that because of the high current account deficit the country was vulnerable to international and external market shocks.

“ I do think we need to save a lot more, and I think we need to see – whilst I support the government's track to fiscal surplus and the discipline they're showing --- I think we need some structural reform in the tax system to incentivise people to save more,” he said.

“Firstly the tax system has to change so that it fundamentally incentivise or at least equalises the options that people have.

“At the moment if you are a residential investor, your effective tax rate is a lot lower than if you have money in the bank or you get dividends from a company.”

Mr Thorburn also said Kiwisaver contributions needed to be increased even if that was compulsory so that we built up a bigger pool of funds.

And he said the listing of state owned enterprises like Mighty River Power and Meridian on the stock exchange gave people something other than property to invest in.

But the impact of the current account deficit on the exchange rate was discounted by two business leaders also speaking on “The Nation”.

Tatua Co-op Dairy Co CEO Paul McGilvray, said that despite the company being a major exporter and the exchange rate being a big issue, the company was adapting to it.

“We have to be competitive so we keep adding value,” he said.

“So we keep adding value more than the exchange rate takes away from us, and then if we do get economic growth at higher rates than they're being predicted and things improve for us, then we're going to be in great shape to capitalise on that.”

Mr McGilvray was confident about the year ahead for the dairy industry and said the drought had had little impact on his company’s production.

“Milk production this year will probably only be down half a percent on last year,” he said.

“Last year was a record.

“From my company we probably had the third or fourth biggest milk production in our history.”
.The Nation will be repeated on TV3 at 0900 Sunday.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news