Caution required over companies claims

Caution is required over calls for Government intervention in response to the recent controversy around arms smuggling and the GT and SP companies, says Business NZ.

Business NZ Chief Executive Phil O’Reilly says the allegations relate to criminal offences and if the allegations are sound, the appropriate response is to bring charges.

“If the Companies Act or other legislation has been breached, the breaches should be vigorously prosecuted, but there is so far no indication that the Companies Act or other New Zealand legislation is at fault.

“Claims that it is ‘too easy’ to set up a company or that the cost of registering a company should be increased are misplaced.

“Making it more onerous to start a company in response to one incident would be an overreaction.

“It is in the interest of every New Zealander to have a business environment that allows for the formation of companies without an excessive compliance burden.

“The fact that New Zealand ranks highly in international surveys for ease of starting a business is a competitive advantage that assists us in attracting and retaining business, to the benefit of all New Zealanders.

“It is no accident that the New Zealand Companies Office has topped the ‘most helpful government agency’ category of the Business NZ-KPMG Compliance Cost Survey every year it has been run.

“Vigorous enforcement of existing laws is the right response to criminal activity.”