National would turn back the small business clock

National Party policy to bring back private workplace insurance, casual work contracts and establish a 'Red Tape Commission' is unworkable and will turn the clock back for business says Minister for Small Business Rick Barker.

"New Zealand businesses are currently competing with other countries for skilled staff, so
suggesting shorter job contracts and trials is not the way to attract and retain staff in this climate," said Rick Barker.

"Mr Tisch is out of the loop, business in NZ is growing, in fact, World Bank studies show New Zealand has a favourable business environment. For example, New Zealand tops the list of 20 economies with the best business conditions as measured by the 2005 World Bank Doing Business study.

“We’re continuing the fight to reduce compliance costs, we announced 104 reductions in compliance burdens in 2004. Dr Cullen has signaled that further measures to assist businesses with compliance will be announced in a couple of weeks.

“We can not though completely eliminate compliance costs, because, for example, we all have a duty to future generations to safeguard the environment. We also need to protect the health and safety of workers and people’s rights to a healthy work-life balance.

"The National business insurance policies of the 90s didn't work and workplace insurance led to more red tape, unfairness in insurance premiums and lack of proper cover, this would be a backwards step for business.

"It astounds me that National would suggest another bureaucratic layer such as a new Commission when they are so busy accusing this government of spending too much on department staffing.

The Finance Minister has just announced tax changes with a direct benefit to small business by reducing costs and paper work. These include:

·The changes to the FBT rules to reduce or completely remove the cost of FBT for some businesses: Making exempt work place tools such as cell phones and laptops
·The current three provisional tax payments will be aligned to GST due dates, and small businesses will be able to make voluntary payments during the year. GST-registered businesses will be given the option of basing their provisional tax payments on a percentage of their GST turnover.
·A subsidy to encourage small businesses to take advantage of the help that payroll agents can give them in meeting their PAYE obligations.
·A new 6.7 per cent discount - the equivalent of a 10 per cent pre-tax
Discount - to many self-employed people and members of partnerships in their first year of business if they make early payments of tax during that first year.

"These changes are part of the Government’s campaign to simplify tax and reduce business compliance costs and there will be a further tax package to assist business and economic growth in the May budget. We know we can do better and we are working on this," said Rick Barker.