"Most small businesses don't own their premises, but lease. As part of the lease requirement they have to meet the cost of any rates. This new tax proposed by the Alliance will be passed on by landlords to small business who won't be able to pass it on. The Alliance's proposals will bankrupt thousands of small businesses.

"Businesses are already struggling with red tape and local body charges, yet the Alliance's proposal will mean they will pay rates twice.

"Why should small business be subject to an extra rate burden from central government to pay for the cost of university? There's no connection. Most small business people never even got a chance to go to university.

"This is another example of how fundamentally anti business the Alliance is. ACT wants to know from Labour whether a Labour-Alliance government will implement this double rating on business.

"ACT also wants to know where the line would be drawn over the exemptions. If farms are exempt from the rating, what about those farms that have processing plants or pack houses? What about orchards or commercial forestry lots or poultry runs?

"If the Alliance wasn't completely out of touch they would know that rates are already too high and proposing to add a new central government rate on top of the local rates is extortion.

"The Alliance's tertiary education policy is merely an attempt to buy the student vote by extortion of the productive sector," Mr Prebble said.

ENDS

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