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."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>


MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>


Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>


Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>


Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>


Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>





Featured InfoPages