Taxation Bill will strip New Zealands manufacturing base

Giving tax breaks to New Zealand businesses that move their operations offshore is insanity, Green Party Regional Development Spokesperson Sue Bradford says.

The Taxation Bill – which commenced its first reading in Parliament last night – exempts from tax active income earned offshore by a company where there is a New Zealand resident with a controlling interest. It is a charter for exporting jobs and closing down our manufacturing sector, Ms Bradford says.

“The Government is acting as if the shape of the future is one in which we are nothing more than a head office and design centre for enterprises likely to be based mainly in Asia but in other parts of the world as well.

“It’s insanity at a time when the impacts of climate change, peak oil and incipient global recession are beginning to kick in that our Parliament should be seriously considering legislation which provides serious tax incentives to companies to take their production offshore.

“The Taxation Bill undermines the Buy Kiwi Made campaign by dangling a financial carrot in front of manufacturers, encouraging them to close down their operations here and set up offshore.

“The lessons of history have obviously been forgotten by Dr Cullen. This Bill signals a frightening “back to the future” scenario when the Labour Government of the 1980s stripped our manufacturing sector, leading to widespread layoffs, the legacies of which we are still reaping in communities like south Auckland, Northland Tairawhiti and the Bay of Plenty right now.”

After all the money, work and commitment put into the Buy Kiwi Made programme by manufacturers, Business New Zealand, retailers, unions, and the Ministry of Economic Development, this Bill is a total disaster, Ms Bradford says.

“If this Bill is passed, we could well end up being a colony of Australia, South East Asia and China. But I’m sure ordinary Kiwis don’t want an economy that is totally dependent on foreign imports the price of which will keep going up as the price of freight increases exponentially alongside the price of fuel.”

“I call on manufacturers and unions to mobilise and join the Green Party in demanding that Labour take this section out of the Bill. Employers and Manufacturers Associations, Business New Zealand, the CTU and trade unions and everyone who cares about retaining a manufacturing base – and jobs – in this country should be up in arms.”