Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Small Business Loses From Insolvency Laws Change

Small Business Loses From Change To Insolvency Laws

Changes to insolvency laws will disadvantage contractors and small business, says Business New Zealand.

Executive Director Anne Knowles says small businesses and contractors, often tradesmen, will now be put so far behind employees in the queue for payment that there will be nothing left for them.

"Priority in the queue is normally determined by statutory obligation - but now employees are being given additional priority despite the fact that there is no statutory obligation to pay redundancy," Ms Knowles said.

"Businesses that have provided goods or services in good faith to a company they may not even be aware is ailing, will be penalised by this move.

"Further disadvantage derives from the fact that Inland Revenue remains a priority creditor - Government is holding to itself the ability to claim priority ahead of all others with just as good if not better claims. In fact Inland Revenue already has a privileged status because it is likely to be in an early position to know the true financial state of a business before any other creditors, and has the power to take funds from business accounts.

"The good intention of protecting employees' position therefore turns out in practice to be a penalty for small businesses - an unfortunate move since growth in jobs depends largely on the health of the small business sector."

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Tegel: Chicken Prices On The Rise But It’s Still The Favourite Protein For Kiwi Families

A combination of domestic and international factors is forcing New Zealand’s largest poultry supplier Tegel to raise its prices from July. The roughly 10% price rise is a result of ongoing cost pressures on the industry, including increases in labour... More>>

Hospitality NZ: Hospitality Wages Jump 9% To Pass Living Wage
Wages and salaries across the hospitality sector continue to increase despite businesses having to battle through some of the toughest trading periods in living memory... More>>



Climate Leaders Coalition: Launches New Statement Of Ambition, Appoints New CEO Convenor

The Climate Leaders Coalition is tonight officially launching a new Statement of Ambition to accelerate business action on climate change... More>>


MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>



Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>