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


National punishes the ‘cleverest businesses’

Hon Pete Hodgson
Minister for Economic Development

2 October 2008
Embargoed till 6pm Media Release

National punishes the ‘cleverest businesses’

The National Party’s announcement that it will increase taxation on companies who undertake research and development has been condemned by Economic Development Minister Pete Hodgson as punishing “some of the cleverest businesses in the land.”

Speaking at the Institution of Professional Engineers’ political forum in Hamilton, Mr Hodgson said that claiming $100 million a year in tax off research and development was myopic and would slow economic transformation.

“About 2500 to 3000 businesses will be affected. These are the companies that are most likely to be taking technology to the next level, most likely to be growing quickly and most likely to contribute to tomorrow’s employment growth and tomorrow’s exports.”

“Loading those businesses with just over $100 million of extra tax is ludicrous. We need to use the tax system to lift the level of private sector research and development, which is amongst the lowest in the western world. That is why the 15 percent tax credit for research and development is so vital. It makes our R&D activities internationally competitive.”

“It is hard to imagine why any political party would want to reduce the assistance to those firms by reducing that credit and therefore increasing the taxation they must pay.”

“National is the only party in this election that is looking to increase tax on business, and they’ve chosen some of our best to target.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Not Easy: Gordon Campbell On The Greens’ Ongoing Problems

Hard to treat the Greens’ belated decision to stand a candidate in Ohariu as being anything other than a desperation move, by a party whose own leadership is evidently concerned about its chances of survival...

A few months ago, the Greens felt able to forego that role in Ohariu in order to help a beleaguered Labour Party get its candidate Greg O’Connor across the line, and knock Peter Dunne out of the parliamentary frame. More>>


Closing The Gap: Ardern Rules Out Income Tax Rise

After earlier commitments by Jacinda Ardern to do something about inequality and poverty, this new position on income tax seems an about face. To do something significant about inequality requires increases in income for those at the bottom and decreases for those at the top... More>>


Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need... More>>

Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>


Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>





Featured InfoPages

Opening the Election