Imposing Increased Fishing Pay Rates Unjustified

Imposing Increased Pay Rates on Fishing Industry Unjustified

“The government’s plan to impose increased pay rates on foreign chartered fishing vessels makes no economic sense”, Roger Kerr, executive director of the New Zealand Business Roundtable, said today.

“It would simply mean an annual transfer of perhaps $30 million of New Zealanders’ wealth to foreigners for no useful purpose.

“New Zealand benefits from competitive chartering of fishing vessels just as it benefits from imports of goods and services from countries with lower wage costs.

“The imposition is tantamount to a taking of property rights associated with fishing quota Maori received as a Treaty settlement. They and other quota holders should be compensated if the plan proceeds.

“The industry has proposed better ways of dealing with the limited problems that exist.

“The Business Roundtable believes there is no way the proposed regulation would meet the requirements of a Regulatory Impact Statement. These include the requirements to evaluate all options for dealing with a perceived problem and to establish that the benefits of a proposed measure exceed the costs. If the government wishes to proceed, it should not rely on its executive powers but submit the proposal to parliament in a bill for open and proper scrutiny.”

6 October 2006

ENDS

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