Brown Peter: Questions for Oral Answer — Questions to Ministers 
Brown Peter: Questions for Oral Answer — Questions to Ministers 
[Volume:609;Page:6344] 
9.  
PETER BROWN (Deputy Leader—NZ First) 
 to the  
Minister of Transport 
: Having ruled out the taxation issue for the New Zealand shipping industry will he be reintroducing cabotage when he announces the assessment of the Shipping Industry Review? 
Hon HARRY DUYNHOVEN (Associate Minister of Transport) 
 on behalf of the 
 Minister of Transport 
: The Government is still considering the proposals from the Shipping Industry Review. As the member is aware the review members were not able to agree on the cabotage option. 
Peter Brown 
: Has the Government definitely ruled out a favourable taxation regime—and I note that very recently the Hon Jim Anderton announced that the Government was considering such a regime for the film industry? 
Hon HARRY DUYNHOVEN 
: The review’s key proposal was special tax arrangements for New Zealand coastal shipping. Ministers did consider the proposal carefully. They did not support special tax breaks for New Zealand shipping because it did not fit the Government’s general tax policy and it could cause problems for other transport modes. 
Dave Hereora 
: What were the different views on cabotage within the shipping industry review? 
Hon HARRY DUYNHOVEN 
: There were different views on cabotage within the Shipping Industry Review. Some members considered that New Zealand’s domestic cargo should be treated as part of the domestic economy—carried on New Zealand vessels employing New Zealand seafarers and subject to New Zealand employment conditions. They also considered that cabotage was sustainable and would give support to domestic shipping and road and rail services. Other members of the review doubted that cabotage would do much to increase New Zealand’s participation in coastal shipping and also considered that it could lead to increases in freight rates. So the review was quite undecided on that issue. 
Jeanette Fitzsimons 
: Does the Minister agree that the abolition of cabotage has led to predatory pricing and that the restoration of cabotage has widespread support from the shipping industry and shipping unions as a key measure to ensure that New Zealand retains a coastal shipping industry; if so what is he doing to advance this issue? 
Hon HARRY DUYNHOVEN 
: Certainly I do understand the member’s point of view and it is widespread within the industry and obviously supported. As I said earlier the review members were split on the cabotage issue. I can confirm that the Greens are involved in ongoing discussions regarding the final decisions to be taken in respect of the review and I hope those decisions will be made within the next month or two. 
Peter Brown 
: Is the Minister aware that the shipping industry and seafarers are the only people in this country competing against cheap foreign people and companies and that the Labour Party when in Opposition and through the member himself made many speeches outlining that the Government would do something about this practice; when will it happen and what is the thrust of it? 
Hon HARRY DUYNHOVEN 
: Yes certainly I am aware of the heavy competition in the international shipping industry and the removal of cabotage which brought that to our shores. The member himself had the opportunity between 1996 and 1999 as part of a Government then to change the issue. It is a complex issue— 
Hon Dr Nick Smith 
: It is complex now! 
Hon HARRY DUYNHOVEN 
: Certainly and it always was I tell the member opposite. It is a complex issue and if it were so simple to fix it would have been fixed long ago. The Government is working on it. The review stated that extensively and a report has been given to the Government. As I said earlier I hope that the results of that review and the Government’s decisions on it will be announced in the next month or two. 
Peter Brown 
: I seek leave to table the Shipping Industry Review report in case the Minister has forgotten about it. 
Mr SPEAKER 
: Leave is sought to table that report. Is there any objection? There is objection.