MEA Media Release - 7 November 2007 OutLook Report

MEA Media Release - 7 November 2007 (OutLook Report)

The New Zealand Manufacturers and Exporters Association (MEA) releases its OutLook report titled, ‘Assets, Tax and Productivity’, the second in a series published by the MEA examining the Association’s policy development research that supports the implementation of a targeted taxation framework in New Zealand.

Building on the previous OutLook that discussed policy support for Research and Development, this report provides a framework on how New Zealand’s tax system can be better balanced in regard to investment in the productive sectors of the economy, rather than weighted to passive assets.

The Association’s position is that if New Zealand wants to build a more productive economy that keeps pace with other countries, then more productive investment is necessary. Such investment can be encouraged and supported by the appropriate policy settings.

The opportunity for our companies to expense the costs associated with early stage investments, patents, depreciation on productive assets and workplace skills training are examples of the support that could encourage those investment. If such policy settings were delivered, then manufacturers, especially those dealing with elaborate exports would have more incentive to invest into their productive activities and grow.

A strong, competitive productive sector brings increased growth, innovation and market development. More broadly, it serves as the basis for sustainable economic and sophisticated export growth in the economy and helps all New Zealanders enhance their standards of living.

”It is common place for a number of organisations and individuals to promote the notion of promoting innovation within our companies. However, few of them fully understand the practical implications of what this entails. Our companies need solid support if they are to drive their innovative processes and targeted tax policy is an integral component in delivering that support”, says Chief Executive John Walley.

The link to the full OutLook report is:

http://squid.csolutions.co.nz/content/mea/files/MEA%20Outlook%20-%20Asset%20Taxes%20and%20Productivity%20-%20November%202007.pdf

MEA – the authentic and independent voice for manufacturers and exporters.

ENDS

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