Hon Max Bradford
Minister for Enterprise and Commerce
MEDIA RELEASE
8 September, 1999
Another Business-Bashing Alliance Tax
The Alliance plan to whack a five percent tariff on all imports, excluding those from Australia, is just another tax on
business, Minister for Enterprise and Commerce Max Bradford said today.
"Over half of New Zealand's imports are either materials and supplies used by manufacturers or are essential capital
purchases made by industry.
"Adding five percent to imports through tariffs will pile on an extra $600 million in costs for the manufacturing
industry," Mr Bradford said.
"This could deter many companies from investing in top quality capital, therefore reducing their competitiveness
internationally.
"Exporters will suffer, but also the country will suffer by losing the ability to earn a valuable overseas income.
"This tax also adds to the inflationary impact of the Alliance's proposed financial transaction tax.
"The Alliance is proving once again that it is anti-business by lumping higher costs onto exporters, higher costs onto
capital equipment and higher interest rates onto all New Zealanders," Mr Bradford said.
ENDS