Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Unfortunate rhetoric from the EMA

Friday, 2 June 2000 Media Statement

Unfortunate rhetoric from the EMA

Complaints from the Employers and Manufacturers Association (Northern) about the Government's plans to introduce grants instead of tax breaks for research and development are unfortunate and poorly informed, says Minister for Research, Science and Technology Pete Hodgson.

Mr Hodgson was responding to comments today from EMA (Northern) chief executive Alasdair Thompson.

"In his haste to criticise, Mr Thompson has failed to notice some of the significant advantages of a grants scheme and has made some significant errors of fact," Mr Hodgson said.

"Mr Thompson does not, for example, explain how tax breaks would benefit high-tech start-up companies that are not yet paying tax. Such companies can benefit from a grants scheme. This was an important consideration for the Government, which wants to assist the growth of innovative new businesses.

"Mr Thompson misrepresents New Zealand's situation relative to the United Kingdom. The UK does not offer 150% expensing of R&D across the board, as his statement implies. Only a small segment of companies are eligible, and only for new and additional R&D.

"In fact some New Zealand companies will find they can effectively gain a benefit from the planned grants scheme that rivals a 150% tax writeoff. In some cases they will be able to expense R&D for tax purposes and get a grant for new and additional R&D as well.

"Mr Thompson fails to acknowledge the compliance costs that deter many Australian companies eligible for a 125% tax break from claiming it. The need for complex controls on eligibility is a typical feature of such tax schemes.



"Mr Thompson is wrong in saying the previous Government promised to allow full write-off of R&D. It did not.

"He is wrong to claim that this Government has 'lambasted' business for low R&D spending and I challenge him to produce a single press statement or speech to that effect. I have consistently told business audiences that this Government is determined to help business increase its R&D effort and will not just complain about the shortage of it, as did the previous administration.

"Business leaders such as Mr Thompson must distinguish between their need to articulate genuine concerns about Government policy and the occasional urge to indulge in unfortunate rhetoric. On this issue and inevitably on others, Mr Thompson does not speak for all business people and does not have a monopoly on wisdom."

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


"Clumsy Response To A Serious Issue": Treasury Head Was "Unreasonable" On Budget Breach

Outgoing Treasury secretary Gabriel Makhlouf was "clumsy", unreasonable and fell "well short" of expectations in his handling of the Budget data breach, a government report has found.

The State Services Commission report was ordered in the fallout of Mr Makhlouf claiming Treasury's website had been "deliberately and systematically hacked" and referring the matter to police...

The Commission's report - released today - said Mr Makhlouf did not act reasonably in his use of the word "hacked" or his subsequent explanations to media. More>>

 

'Team' For Housing: Cabinet Reshuffled

Prime Minister Jacinda Ardern has confirmed the details of a Cabinet reshuffle that sees Kris Faafoi being promoted into Cabinet, Poto Williams made a Minister outside of Cabinet and a team put in place to advance the Government’s housing plan. More>>

ALSO:

'Increase Still Needed': Community Law's Interim Boost To Remain

Today’s Post-Budget announcement extending last year’s interim funding boost to Community Law services is the second step in honouring the Coalition Government Agreement to increase funding to Community Law. More>>

ALSO:

At Select Committee: WRC Blames Bus Troubles On City's Challenges

Wellington's Regional Council is blaming a perfect storm of new operators, buses, routes, driver shortages and design failures for the shambolic introduction of new bus services a year ago. More>>

ALSO:

Gordon Campbell: Public Service Reforms Don't Protect The Public

Reportedly, the legislation involved is to be called the Public Service Act, because… well, it seems that the notion of “public service” is back in vogue. More>>

ALSO:

Police: Excessive Force Used Breaking Up Party

The Authority found that one of the officers involved had used knee strikes during the arrest... this officer made concerning comments... to the effect that "it's about time some of these kids got what they deserved." More>>

ALSO:

Environment Accounts: NZ's Household Emissions Increasing

Household emissions of greenhouse gases increased 19.3 percent from 2007 to 2017, mainly due to rising emissions from road transport, Stats NZ said today. More>>

ALSO:

Legislation: End Of Life Choice Bill Passes Second Reading

Just 20 MPs had the opportunity to debate the bill and many shared personal stories of watching family members die in what was at times an emotional display in the House. More>>

ALSO:

Other Bills:

Principals Reject Offer: Primary Teachers Vote For Settlement

Primary teachers have voted to ratify a proposed settlement that will give them pay parity with their secondary colleagues, but disappointed primary principals have rejected a settlement that was unchanged from a previously rejected offer. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels