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.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news