Scoop has an Ethical Paywall
Licence needed for work use Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

New Zealand’s Dire Productivity Shows Need For Fresh Thinking

Yesterday, the UK announced that it would be making changes which allow businesses to deduct capital investment in plant and machinery investment against their corporate tax bill permanent.

Research by the Centre for Policy Studies suggests this will result in a 1.5% increase in investment, a 0.9% increase in GDP and a 0.8% increase in wages.

Commenting on this update, Taxpayers’ Union Policy Adviser, James Ross, said:

“New Zealand has among the lowest productivity in the developed world. The result is that hardworking New Zealanders have seen their wages stifled and Kiwi families get relatively poorer with every passing year.

“Our anti-business tax rules at the moment send would-be investors running for the hills, meaning less investment in new technologies and machinery. Is it really any wonder that our living standards keep falling further and further?

“If the incoming Government is serious about closing the wage gap with Australia, then we desperately need to inject some life into our limping economy. Full expensing of capital investment is a surefire way to make that happen.”

Advertisement - scroll to continue reading

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.