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

 


Depreciation, buy Kiwi-made in Labour manufacturing policy

Accelerated depreciation, buy Kiwi-made core of Labour manufacturing policy

By Pattrick Smellie

April 17 (BusinessDesk) – The Labour Party has unveiled its pitch to the manufacturing sector, adding accelerated depreciation for advanced manufacturing and promising to target more government procurement from local firms.

Labour leader David Cunliffe launched the policy to an Auckland business audience this morning, adding the depreciation and procurement policies to the known suite of Labour’s approach for manufacturing, including research and development tax credits, lower power prices, a more active monetary policy to create “a more stable exchange rate” and a suite of sector-specific “Economic Upgrade” packages.

“Our aim is to influence investment policy overall,” said Cunliffe. “To change the culture of investment in New Zealand so that firms, entrepreneurs, and investors feel confident in developing world-beating ideas here.”

Cunliffe offered little detail on the accelerated depreciation policy beyond saying it would cost $30 million in its first year, rising to $70 million over time and would target “advanced manufacturing”, defined by the Ministry of Business, Innovation and Employment as high and medium-high technology.

“We envisage extending it to all manufacturers over time,” said Cunliffe.

Economic upgrade packages, such as the one already announced for the wood processing industry, would be rolled out for other sectors.

On government procurement policy, Cunliffe pledged a target to increase by $200 million the value of contracts let to New Zealand rather than foreign firms, while remaining compliant with World Trade Organisation rules. That would be worth around 2,000 jobs, he said, citing low quality rolling stock bought from China by KiwiRail and the impending billion dollar revamp of the Inland Revenue Department’s computer system as examples where local industry should be able to participate.

Resumption of the Labour policy, dumped by National in 2009, of a 12.5 percent tax credit for research and development expenditure, was also reconfirmed.

Cunliffe rejected the mindset of “New Zealand as a tiny boat adrift in the turbulent seas” with “no alternative but to passively ride the cycle of global commodity prices”, characterising this as a “Thor Heyerdahl approach to economic strategy.”

“It creates a ‘Kontiki’ economy that drifts with the current, without a rudder or an engine,” he said, referring to the 1947 trans-Pacific crossing by Heyerdahl, a Norwegian ethnographer, in a hand-built raft to demonstrate ancient peoples could make long sea journeys.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news