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


More Fundamental Attack On Business Costs Needed

More Fundamental Attack On Business Costs Needed

"It is pleasing that the government is making a further attempt to reduce business costs but its approach needs to be much wider", the executive director of the New Zealand Business Roundtable, Roger Kerr, said today.

Mr Kerr said that in its last term the government's compliance cost review produced meagre results while policy changes in areas such as taxation, employment law, utilities regulation, planning regulation and competition and securities law had greatly increased business costs. Planned changes to workplace health and safety and redundancy law would make the problems worse.

"It is not credible for one part of the government to talk about compliance cost reductions while other parts are heaping additional costs on business", Mr Kerr said.

"Moreover, compliance costs are only the tip of the iceberg.

"For example, the increase in the top tax rate added to compliance costs, by making the tax system, including fringe benefit tax, more complex. However, greater economic costs arise from the disincentives to work effort, investment and risk taking that it created. The overall problems can only be reduced by moves to a lower, flatter tax scale as recommended by the government's Tax Review.

"Similarly, tariff administration involves costs for both the private sector and the government, but the main economic costs of tariffs arise from the misallocation of economic resources. The solution is to end the tariff freeze and phase out tariffs, which would also facilitate the government's plans to negotiate free trade agreements with Hong Kong and other countries."

Mr Kerr said that a more fundamental approach to regulatory costs was needed, along the lines of the report Constraining Government Regulation (available at which the Business Roundtable in association with Federated Farmers and the Auckland and Wellington chambers of commerce had recently published.

"We look forward to taking up the ideas in this report, including the possibility of a Regulatory Responsibility Act, with the new minister of commerce", Mr Kerr concluded.

22 August 2002

© Scoop Media

Business Headlines | Sci-Tech Headlines


Retail: New Law Paves Way For Greater Supermarket Competition

Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>

International Business Forum: NZ EU FTA Coming Down To The Wire – Hold The Line

As negotiations accelerate to conclude an ambitious free trade agreement between New Zealand and the European Union, the NZ International Business Forum (NZIBF), representing a cross section of major exporters... More>>

MBIE: NZ space sector set to star in Moon mission
The New Zealand space sector is set to star in NASA’s CAPSTONE moon mission – with Rocket Lab launching a satellite to the Moon from New Zealand in June, and the lift-off of a separate NASA-NZ lunar research project... 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>>