Ardern Jacinda: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeArdern Jacinda: Oral Questions — Questions to Ministers[Sitting date: 11 March 2015. Volume:703;Page:2126. Text is incorporated into the Bound Volume.]8.JACINDA ARDERN (Labour) to the Minister for Small Business: What advice has he received if any on how much small and medium sized businesses will pay in ACC levies this year?Hon CRAIG FOSS (Minister for Small Business): I am advised that this year small and medium sized businesses will pay substantially less in ACC levies thanks to almost $1 billion worth of levy reductions made by the National Government since 2012-13. In addition to the $1 billion of levy reductions already locked in I am advised that this year businesses will pay even less in ACC levies with a reduction in the work account levy from 1 April and the motor vehicle levy from 1 July. So from 2015-16 that is $1.5 billion in the pockets of New Zealand households and businesses. Small and medium businesses now benefit from a financially robust ACC system—Jacinda Ardern: I raise a point of order Mr Speaker. The Minister has been speaking for some time. I asked how much small and medium sized businesses are paying in ACC levies. He has yet to come to that answer.Mr SPEAKER: Could the Minister get to the substance of the question?Hon CRAIG FOSS: Certainly Mr Speaker. Small businesses do benefit now from a sustainable and substantially financially robust ACC. All businesses pay levies on the basis of liable earnings and their industrial classification. I was advised it is not possible to break it down by small and medium sized businesses before question time today.Jacinda Ardern: Has he advocated on behalf of small and medium sized businesses that there be a further reduction in ACC levies to the level that ACC has itself recommended; if not why not?Hon CRAIG FOSS: I constantly advocate on behalf of small and medium businesses across New Zealand. I am particularly concerned about their cash flows and any threats to their cash flows—for example the $500 million additional cost that raising the minimum wage to $16.25 that Labour is proposing would substantially damage the cash flows of small and medium enterprises in New Zealand.Jacinda Ardern: I raise a point of order Mr Speaker.Mr SPEAKER: I will allow the member an additional supplementary question.Jacinda Ardern: Thank you. Can he name any initiatives he has introduced that would save small and medium sized enterprises up to $3000 per annum which is the amount some could be saving if their levies were reduced?Hon CRAIG FOSS: For example not raising the minimum wage to $16.25 would save small and medium sized enterprises substantially more than $3000; not introducing some complicated complex capital gains tax on small enterprises would save them substantially more than $3000 per annum.Jacinda Ardern: Does he believe that a reduction in ACC levies would make a difference to the ability of small businesses to increase their employment opportunities?Hon CRAIG FOSS: Last year 80000 new jobs were created mostly by small and medium sized enterprises so anything to help their cash flow and their ability to hire such as the 90-day trial of which 62 percent of businesses—Hon Members: Answer the question.Mr SPEAKER: Order! I am going to invite the member to ask her question again. [Interruption]Order! If Mr Brownlee wants to stay for the balance of question time I would be grateful if we did not get that sort of interjection from him.Jacinda Ardern: Does he believe that a reduction in ACC levies would make a difference to the ability of small businesses to increase their employment opportunities?Hon CRAIG FOSS: That is a very naive question because on its own it cannot be considered. There are labour laws tax laws compliance and ACC amongst many of the conditions that small businesses have to consider before they think about hiring someone. But I do note that last year 80000 new jobs were created under this Government mostly by small and medium sized enterprises.Jacinda Ardern: Have small and medium sized businesses told him they have more money than they know what to do with and do not mind being overcharged by ACC?Hon CRAIG FOSS: No small businesses have not told me that but they have told me thank goodness a National Government was elected to prevent raising the minimum wage to $16.25 which would have cost them an additional $500 million per annum.Jacinda Ardern: Will the Minister advocate to Cabinet on behalf of small and medium sized businesses that ACC levies be reduced to the rate that ACC has recommended?Hon CRAIG FOSS: As previous Ministers have answered in relation to a similar question there are many matters that go into considering what the ACC levies might be. I do note though that Cabinet has made decisions that will have saved New Zealand businesses and New Zealanders around $1.5 billion this year with previous decisions made by this Cabinet. I also note that Labour opposed each one of those decisions.