Connell Brian: Taxation (Annual Rates GST Trans-Tasman Imputation and Miscellaneous Provisions) Bill — Instruction to CommitteeCWH In Committee 
Connell Brian: Taxation (Annual Rates GST Trans-Tasman Imputation and Miscellaneous Provisions) Bill — Instruction to CommitteeCWH In Committee 
[Volume:613;Page:10106] 
BRIAN CONNELL (National—Rakaia) 
: 
 I am delighted to be able to take a call on the Taxation (Annual Rates GST Trans-Tasman Imputation and Miscellaneous Provisions) Bill. If we factor in time I suppose there are compliance costs in all those matters. I have not had the opportunity to take part in the debate on this bill but I would like to say for other than Part 1 that I commend the people who worked on the bill. I think that they have put together something that is very worthwhile and well considered so I am sending out bouquets to those people. 
I would like to concentrate in Part 2 on trans-Tasman imputation and credits and for the sake of accuracy I would like to read a bit of the commentary on the bill which states: “The bill changes the imputation laws to address the problem of triangular tax which involves the double-taxation of certain trans-Tasman investments. It allows Australian companies to allocate imputation credits (for New Zealand tax paid) to their shareholders in proportion to their ownership of the company. This arrangement is reciprocal and requires both countries to pass the relevant legislation.” It goes on to state that the amendments permit a new form of grouping for imputation purposes only which Australian companies can also join. That attempts to mitigate the problem that imputation credits cannot be passed through intermediate companies that are not resident in New Zealand or Australia. I say that that is sensible and closes that loophole. As I said the Finance and Expenditure Committee has worked on something that is rather complex and has come up with what I believe is a first-class solution. I have to say that attracting investment to this country is something that is desperately needed. I do not say this legislation in itself will do everything that is required but I think it is a step in the right direction. 
Yesterday I met with the executives of a multinational company called Weyerhaeuser. It is an international forestry organisation with a turnover of something like US$22 billion. They were out here looking at some of their investments in Nelson and the conversation that I had with them was very constructive. One of the things that the executives of that company were doing here was looking for opportunities to invest further but one of their concerns was the compliance regime that New Zealand is working under. They cited—the Minister may be interested in this—the Resource Management Act as the biggest turn-off to business investment in this country. Now in a constructive way I said that is something that everyone in this Committee has to get their heads around and try to do something about because it is clear that those executives are sending signals to us as are other international investors that we just have to address the compliance regime. 
I believe the Government has started down the right track with this legislation. I have been on record as saying that I think some of the work that the Government has done in some of its recent legislation is anti-business but I think this bill is a step in the right direction. It is critical that one of the things that we look at addressing beyond the Resource Management Act is our occupational safety and health legislation. Before anyone jumps on me I say I am the first person to accept that we need to do something about our safety record but I do not want that to go to the point where it distracts businesses from their core business. I think we have to look at our accident compensation legislation particularly as it relates to small business and what I sincerely believe to be just nonsense around the issue of 4 weeks’ holiday is something that we also should look at. 
So having tabled those views I would like to conclude by saying that this part is a step in the right direction. I think the select committee has worked well together to bring something to the Committee that is sensible. That demonstrates that when we put our collective will together to do something that is constructive we can come out with something that is to the betterment of this country. I commend the work that has been done thus far.