Travel & Trade Industry Coalition
20 May 2004
Terrorist Tax To Proceed
The Travel and Trade Industry Coalition reacted angrily today to the Government's rejection of the Coalition's
compromise solution to allow this matter to be handled in a joint (Government / Industry) way.
Stewart Milne the Secretary to the Coalition said that from the time back in November last year when the Minister of
Customs announced out of the blue that the industry must pay for all the added Customs Department costs, it had been a
case of the industry trying to get the Government to adopt a more reasonable approach and to consult over the public
benefit elements in the security measures that are being introduced
The Travel and Trade Coalition acknowledges that the Government has moved its position and we welcome its intention to
move towards a principles based cost recovery regime. However it is totally unreasonable to expect industry to be
comfortable with an imposed Government decision where industry must meet all its own costs and 80% of the Government
Agency costs during an unnecessarily long and extended interim period. Furthermore the Government's intention to target
a sector is totally inappropriate given that supply chain security costs are being incurred across all sectors.
The NZ Government's attitude is diametrically opposite to what is happening in North America which is leading the
efforts for increased security and where both the US and Canadian Governments are meeting their own costs and
contributing to industry costs as evidenced by the Canadian Government's decision earlier this month to provide up to
75% of the industry's costs.
ENDS