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 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.
Growth of the economy; and retention of capital and
start-ups will encouraging young 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 – significantly reduces
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 albeit via a percentage of power GDP.
Collateral impact is the private sector prevailing over
State control of commercia activity. A lower rate of GST
-12.5% is
favoured.
TRADE
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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. 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.
