FINANCE POLICY
Conservatives NZ are committed to
urgently tackling the massive debt the Labour Green
government imposed on young families of today and their
children of tomorrow.
Conservatives will press for a
flat tax rate for individuals and for
companies.
Laffer Curve Theory demonstrates that lower
taxation encourages full disclosure by individuals, small
business and big companies. When a lower tax policy was
applied in New Zealand during late 1980s, Treasury incomes
did increase in the first year.
For competitive
reasons, rates of income tax should be equal or lower than
other countries such as Australia. Lower taxation rates
encourage investment decisions based on the return rather
than the tax benefit. Retention of capital will encourage
entrepreneurs to start their own businesses and remain in
NZ.
Corporation tax rate should be aligned with the
top rate of income tax. Whether income or expenses are
corporate or personal – because both taxed at the same rate
– will significantly reduce administrative costs – such as
“left pocket to right pocket” manoeuvres simply to reduce
tax.
Lower company rates encourage companies to return
to New Zealand, creating employment and elevating Tax
revenue to Treasury. Collateral impact is the private sector
prevailing over State control of commercial
activity.
A lower rate of GST -12.5% is
favoured.
TRADE
Australia and China remain New
Zealand’s largest trading partners.
Affinity with
Australia embraces 3 centuries ranging from sacrifice in war
conflicts of the past; competition on the sports fields and
mutually beneficial trade.
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However, it is to China,
that we must accord a trade priority.
TRADE RELATIONS
POLICY viz CHINA
New Zealand needs a very clear
Foreign Affairs strategy that avoids criticising and
impugning China’s “face” as the Australians have
managed to do.
Over the last decade, New Zealand has
become heavily involved with China, to an extent that
special attention is required to maintain, support and grow
the two-way trade mechanism between NZ and PRC.
Before
Covid, Chinese in-bound tourism was a significant part of
tourism, NZ’s second largest generator of revenue.
University revenue streams have also been substantially
reduced through loss of international student education
fees
Economic damage on these two sectors has been
exacerbated by Labour Green policy of isolating New Zealand
to “Hermit” status while wider commercial damage caused
by this current government’s failure to adequately address
economic recovery.
New Zealand primary products
exports are also very exposed to reliance on
China.
Trade to China in forestry (log exports)
agricultural, horticultural and fish has become
“over-weight” dependent on China as an export
destination.
Trade bureaucracy can have major
non-tariff impacts – as many companies have experienced.
Delays that use up date codes, unusual food safety
requirements and late documentation can impose crippling
costs.
Foreign Affairs approach needs to be sensitive
and well thought through, starting with a competitive,
credible, nuanced, presentable Foreign Affairs
Minister.
Recovery and preservations of these sectors
of commercial activity with China, is a priority for the
Conservative Party.
TARIFF
BALANCE
Conservatives NZ is cognisant of the damage
done to New Zealand’s self-sufficiency and manufacturing
skill base and employment, as a result of tariff free access
for imported goods.
Conservatives NZ will review all
trade agreements. A balance between open slather free access
and Trump like self-protection tariffs at the other extreme,
needs to be found.
FOREIGN AFFAIRS
Economic
growth and regional stability are priorities of the
Conservatives NZ. Trade before War should be New Zealand’s
axiom.
Trade is an essential element of New
Zealand’s economic survival.
Taking a neutral stance
rather than being dragged into war confrontations among
other nations, which do not threaten New Zealand territorial
security, should be a priority.
DEFENCE
New
Zealand must retain close military alliance with
Australia.
Recognising the reality of military
expenditure to equip NZ with evolving technological military
developments, New Zealand military should focus on units
which provide supply support and reconstruction units. These
units must also be available for recovery and reconstruction
of natural disaster events impacting on our Pacific Island
neighbours.
Across all services, New Zealand military
personnel must (a) attend senior command course in
Australia, (b) participate in annual military exercises with
Australia.
