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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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