Govt planning to reduce support for business R&D

Source: National Party – Headline: Govt planning to reduce support for business R&D

The Government is planning to reduce support for business research and development in New Zealand’s fast-growing R&D intensive tech firms, National Party Research, Science and Innovation Spokesperson Parmjeet Parmar says.

“Hidden way down the back on page 31 of their proposal to introduce R&D tax credits is the news that they plan to cancel R&D growth grants at the same time,” Ms Parmar says.

“This will negatively affect hundreds of New Zealand’s most innovative technology focused companies.

“All of those companies will drop from getting 20 per cent of their research and development expenditure re-funded down to 12.5 per cent.

“And start-ups making a loss may have to wait until they are making a profit to cash-in any tax credit, that could take years compared to the current system which provides grant funding immediately.

“How is this supposed to grow R&D? How is it supposed to speed up development of our high-value tech sector?

Ms Parmar says that the change from growth grants to R&D tax credits will also lead to a big boost in business for accountants.

“When suddenly everyone can get a tax credit for any R&D, it will be amazing how much R&D your average business will find it was doing.

“All over the world these tax credit schemes are ripe for abuse, with their introduction always leading to a lot of ordinary expenditure being ‘reclassified’.

Ms Parmar says that it is telling that the Government’s first practical move in the science and technology sector is to reduce investment rather than increase it.

“These people have talked a big game in science and innovation for a long time. It’s sad for the science and tech sectors, and for New Zealand’s future, that their first move is to take us backwards.

“While small as a percentage of the economy, R&D has been rapidly growing under the previous Government’s settings. Ms Woods needs to explain how it will grow faster when they are reducing the incentive.”

Government turns its back on Northland

Source: National Party – Headline: Government turns its back on Northland

The Labour-NZ First Government is turning its back on improving Northland’s roads with Transport Minister Phil Twyford’s confirmation this morning that the four-laning of State Highway One between Auckland and Northland won’t go ahead, National’s Transport Spokesperson Jami-Lee Ross and Regional Development Spokesperson Paul Goldsmith say.

“On Morning Report this morning Mr Twyford washed his hands of the project saying a few extra passing lanes and some barriers would be enough,” Mr Ross says.

“This road was prioritised for significant upgrading by National, not at random, but because it serves as the gateway from New Zealand’s largest city to our northern most and least affluent region.

“State Highway One between Auckland and Whangarei is a very busy and dangerous stretch of highway that all local mayors say is the number transport priority for their region.

“It has been acknowledged for years as needing to be brought up to expressway standard to serve current and future traffic needs and help the economic development of the region.”

Mr Twyford also said it wasn’t his place as Transport Minister to select major projects for the transport agency.

“Mr Twyford can’t have it both ways. By his standard, how is it okay for him to demand specific projects in Auckland – including his promise for light rail to service the Prime Minister’s electorate? An Auckland light rail network that Northlanders will be taxed more at the pump to pay for while their own State Highway One upgrade sits stalled,” Mr Ross says.

“In addition, Mr Twyford’s colleague, Regional Economic Development Minister Shane Jones is hand-picking pork barrel transport projects down the road from his own house,” Mr Goldsmith says.

“This Government has obviously decided to replace meaningful infrastructure investment in regional New Zealand that will encourage development, with ‘Santa Claus’ Jones wandering around giving bits of money to a few pet projects.

“It’s a roundabout here, a church renovation there, the odd passing lane. But large meaningful transport investments that grow regions and transform lives are out the window.

“Cancellation of upgrading State Highway One into Northland is another example of the Government giving a little bit with one hand and taking away much more from the regions with the other.

“They are running a giant confidence trick against regional New Zealand. And people in our regions are rapidly starting to see it.”

Treasury criticised R&D tax credit, Govt should lower corporate rate

Source: ACT Party

Headline: Treasury criticised R&D tax credit, Govt should lower corporate rate




In 2008, the Government’s economic advisor set out various concerns about an R&D tax credit.

“Grant Roberston should listen to these concerns and instead lower the corporate tax rate for all businesses”, says ACT Leader David Seymour.

“The Treasury said the estimated fiscal cost of maintaining the credit [would be] $373 million a year and that it incurred significant fiscal and compliance costs for businesses.

“It also questioned the credit’s effectiveness, saying that international experience and anecdotal evidence showed little additional expenditure will be generated as a result of the credit.

“This is because firms can claim credits for pre-existing R&D investment plans and may recharacterise their expenditure to fit the eligibility criteria.

“The Government would do far better to cut taxes across the board and let businesses make their own investment decisions.

“Greater investment in research and development is important, but this isn’t the way to do it.

“The Government should lower the corporate tax rate for all businesses, encouraging greater investment and growth, more jobs and higher wages for workers”, says Mr Seymour.

Government should heed warning on protectionism

Source: ACT Party

Headline: Government should heed warning on protectionism




“Jacinda Ardern’s government is being warned that its protectionism will scare away foreign investors”, says ACT Leader David Seymour.

Documents released by Treasury show the Government’s restrictions on overseas investment in rural land may ‘negatively affect New Zealand’s attractiveness as a destination for overseas investment’ and may have ‘unintended consequences and complicate the assessment of overseas investments the Government may wish to facilitate.’

“The Government pays lip service to the idea that foreign investment leads higher growth and productivity, more jobs and exports, and new skills and technology.

“Despite this, it has pandered to xenophobic sentiment and put in place a policy that will lead to lower living standards.

“According to the OECD’s foreign investment restrictiveness index, New Zealand already has the toughest foreign investment rules of any developed country. Only seven developing countries – including Myanmar and Saudi Arabia – beat us to the title of ‘most discriminatory’.

“This is just the latest example of Jacinda Ardern governing by what sounds good without asking what the side effects of her policies will be. Her Government is dangerous and arrogant, and will destroy wealth and opportunity without warning.

“ACT would roll back restrictions on foreign investment, ensuring New Zealanders can take advantage of its benefits”, says Mr Seymour.

Now more working groups than MPs in Govt

Source: National Party – Headline: Now more working groups than MPs in Govt

National Party Leader Simon Bridges says after just six months the Government’s tally of inquiries, reference and working groups has soared to 75 as it desperately tries to compensate for its inability to think for itself or put in the work.

“After nine years in Opposition claiming they knew better, Labour, NZ First and the Greens put in so little work and came up with so few ideas they’re now outsourcing the job of running the country to consultants – wasting tens of millions of dollars in taxpayers funds in the process.

“There is now, after just six months, 75 different groups of people telling the Government what it should be doing. That’s more working groups than MPs in the entire government.

“It’s nothing short of an abdication of its responsibility to lead and it shows how completely out of its depth the Government really is – and how willing it is to waste taxpayers money which should be invested in areas like health and education.

“What we are now certain of is when Jacinda Ardern claimed in Opposition she could slash immigration without harming New Zealand businesses, balance the books without raising taxes and build more houses she wasn’t telling the truth. They had no clue then and they have no idea now.

“What is even more concerning for New Zealanders is when this Government has implemented its own, ill-thought through ideas they’ve been bad for New Zealand.

“Raiding our regions through fuel taxes, fewer roads and pulling the plug on important irrigation projects, putting a wrecking ball through entire industries like oil and gas and slowing our economy through low-growth policies like empowering unions and slashing foreign investment.

“These do nothing but take New Zealand backwards and undermine an economy which is delivering for all New Zealanders.

“Every day this Government is proving to New Zealanders it doesn’t have the ability to run the country, the ideas to take it forward or the best interests of New Zealanders at heart.

“National won’t make the same mistake. We’re working hard in the interests of New Zealanders and we’ll be ready with plans and policies if we earn the right to govern again in 2020.”

Govt dragging its heels on Auckland schools

Source: National Party – Headline: Govt dragging its heels on Auckland schools

The Government needs to explain why it has put the Auckland Education Growth Plan on hold, National’s Education Spokesperson Nikki Kaye says.

“Cabinet was due to consider the final Auckland Education Growth Plan last November. It’s now been six months and we’ve had no word from the Government on how it plans to manage the increasing pressure on Auckland’s schools.

“In May last year as Education Minister, I put through a Cabinet paper outlining progress in the development of the plan. We were awaiting updated population forecasts from Statistics NZ before considering the final plan.

“Those forecasts have since been released, but we’re yet to hear anything from the Government about the final plan.

“It’s clear that adding capacity to Auckland’s schooling network is not a priority for the new Government like it was for National.

“In 2014, we announced a plan to build nine new schools and additional classrooms in order to deliver the extra 17,000 student places needed in Auckland by 2019. By June 2017, we had delivered 9,000 extra places and were on-track to deliver all 17,000 by 2019.

“We knew that at the rate Auckland was growing, we needed to do more. That’s why we set aside $4.85 billion for school property over four years in Budget 2017.

“That included $240 million just for Auckland in the first year. This money would deliver four new schools, one major school expansion, the relocation of two special education schools, new and replacement classrooms, and additional special education satellite units.

“Auckland urgently needs greater capacity in its school network. Students, parents and teachers deserve better than having to wait six months for the Government to get going.

“The Minister must release the Auckland Education Growth Plan and assure Aucklanders that the money National set aside for adding capacity will be used to do so, and won’t just be eaten up by the $2.8 billion fees free policy for tertiary students.”

IGIS must explain legal basis for reference group

Source: National Party – Headline: IGIS must explain legal basis for reference group

The Inspector-General of Intelligence and Security Cheryl Gwyn must explain the legal basis upon which she appointed her new Reference Group, National’s Spokesperson for GCSB and NZSIS Gerry Brownlee says.

“Following questions raised yesterday about the group, the Inspector-General issued a statement which fails to answer the very simple question regarding the legal basis for appointing the group.

“The Inspector-General says that the group was set up to help her ‘stand in the shoes of the public’ and inform her thinking.

“It’s hard to fathom how this group will be able to give objective advice on behalf of the public, given the very partisan views of several of its members.

“For someone in a role centred on ensuring our intelligence and security agencies act lawfully and with propriety, it is worrying that the Inspector-General has not yet explained what legal basis she had for appointing the Reference Group.”

Youth crime more than halved under National

Source: National Party – Headline: Youth crime more than halved under National

Latest figures showing that the youth offending rate more than halved over National’s time in office prove that National was on the right track and the new Government’s softer policies will risk undoing the good work, National’s Justice Spokesperson Mark Mitchell says.

“In his first statement on youth justice today, Associate Justice Minister Aupito William Sio celebrated the significant drop in youth offending achieved under the National Government.

“Between 2009/10 and 2016/17, offending for children aged 10-13 years dropped by 59 per cent, while offending by young people aged 12-14 years fell by 63 per cent.

“That’s a result of National’s huge focus on tackling youth offending. Initiatives like the Youth Crime Action Plan, our social investment approach, and the roll out of the Rangatahi Courts have had a real impact.

“Early results have shown that young people who attend Rangatahi Courts committed 14 per cent fewer offences and were 11 per cent less likely to commit a new serious offence in the following year than comparable youth. 

“National’s plan was working, so it’s concerning to hear statements from the Ardern-Peters Government indicating that it wants to go soft on crime.

“We know that there is still a small group of young offenders who are much harder to crack. That’s why we announced a policy during the campaign to introduce a new category of Young Serious Offenders and greater powers for courts to deal with those offenders.

“The challenge for the new Government will be to not only tackle offending by this very serious group of young criminals, but to ensure that the overall youth offending rate continues to trend down.”

Yet another broken promise from floundering Govt

Source: National Party – Headline: Yet another broken promise from floundering Govt

Labour looks set to break its election promise to lower the cost of GP visits by $10, leaving New Zealanders further out of pocket and GP practices at risk of closure, National’s Health spokesperson Michael Woodhouse says.

“Both National and Labour promised during the election to lower the cost of GP visits.

“But Labour is already preparing to break its promise to lower the fee cap for Very Low Cost Access (VLCA) practices from $18 to $8 and to $2 for teens – as well as its pledge to increase funding for all practices that lowered their fees by $10 per visit.

“All this was meant to happen from 1 July but it now appears yet another victim of the Government’s inability to manage the books, it’s poor spending decisions and its continued raid on the back pockets of New Zealanders.

“Sources in the GP community advise me that the pledges will at best be delayed, and at worst canned altogether, pending a review – yes, yet another Government working group – of primary health funding.

“New Zealand Doctor also reported last week that some practices believed the funding changes would threaten their viability and some might have to close.

“Regardless of the reasons for the delay, the Government made an unequivocal commitment to reduce the cost of GP fees for New Zealanders. 

“Health Minister David Clark is apparently still working through the package of initiatives as part of the Budget process but that’s not good enough. This was a firm promise to New Zealanders when Labour was trying to get into Government – but now in power it’s trying to renege.

“The Prime Minister made much of the policy when she made the announcement at Mangere last year, saying the fees reduction would be implemented while Labour undertook a review of primary care, not after it. 

“She stated the Labour Party had been working on the policy for some time but clearly not long enough for them to deliver on their promise or to effectively engage the GP community.

“After just six months the list of u-turns, broken promises and bad decisions made by this floundering Government is growing by the day, and raising real concerns.

“This likely backtrack looks to be another example of a policy that was poorly thought through or costed. GP practices and New Zealanders deserve to know what the Government’s real intentions are.”

Jacinda tries to re-write history in new interview

Source: ACT Party

Headline: Jacinda tries to re-write history in new interview




“Jacinda Ardern is trying to re-write history with comments that she ran an ‘outward facing’ election campaign”, says ACT Leader David Seymour.

In a new interview, the Prime Minister said ‘The suggestion in any way that New Zealand wasn’t an open outward facing country, the suggestion that I was leading something that was counter to that value, made me extremely angry.’

“Labour’s policy during the election campaign was to cut immigration numbers by 20,000 to 30,000.

“One of its first actions was to restrict foreign investment in rural land.

“The Government has pushed ahead with a plan to ban foreigners from buying New Zealand homes.

“The one outward facing policy the Government has delivered – the CPTPP – the Labour Party campaigned against.

“The idea that Labour ran a campaign that was open to the world is completely false. It has now delivered on its promise and is running a xenophobic government.

“The PM might fool the world’s media and foreign leaders, but New Zealanders will see her government for what it is.

“The Prime Minister is trying to re-write history. It won’t wash”, says Mr Seymour.