Hudson Brett: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeHudson Brett: Oral Questions — Questions to Ministers[Sitting date: 17 February 2015. Volume:703;Page:1599. Text is incorporated into the Bound Volume.]11.BRETT HUDSON (National) to the Minister for Small Business: What reports has he received on the increased number of self-employed businesses in New Zealand?Hon CRAIG FOSS (Minister for Small Business): Labour market statistics show that self-employed businesses grew by nearly 35000 in the year to December 2014. New Zealand’s 3.2 percent GDP growth is enabling business growth across the country. Small and medium enterprises many of which are self-employed businesses contribute nearly a third of New Zealand’s GDP. Amongst other things the National-led Government has reduced costs by lowering company tax; reduced ACC levies; made it easier to employ staff with the 90-day trial period; will be helping the way small businesses interact with the Government with the New Zealand small business number; has introduced the starting out wage—I could go on but I realise that time is limited.Brett Hudson: What are some of the specific Government initiatives that are helping small businesses?Hon CRAIG FOSS: The voluntary 90-day employment trial period reduces the risk for a business of hiring an employee and has been invaluable for the growth of small businesses. The latest data shows that 64 percent of small and medium enterprises have taken on new staff in the past year using trial periods. The introduction of the starting out wage is another initiative that is lowering the barriers for business to hire young and inexperienced workers.Brett Hudson: What factors might hinder self-employed businesses from employing staff?Hon CRAIG FOSS: Having greater certainty when hiring staff is essential for small and medium enterprises in New Zealand and of course job growth. Dropping the 90-day trial and dropping the starting out wage would be devastating for the growth of New Zealand small businesses and jobs in New Zealand.Jacinda Ardern: Can he confirm there were approximately 61000 enterprise births in 2008 under a Labour Government compared with 48000 in 2014 under National?Hon CRAIG FOSS: I do not have the exact figures with me but I can confirm a very large explosion if you like in the development of loss attributing qualifying companies which are small companies set up to exploit tax advantages and distortions set up by the previous Labour Government.Jacinda Ardern: Why when many small businesses are spending more than 10 percent of their turnover on tax compliance has his Government in 7 years done absolutely nothing to assist especially when the New Zealand Institute of Chartered Accountants has laid out a very precise plan of what he could do to assist?Hon CRAIG FOSS: As I noted National actually lowered the tax rate to 28 percent for companies and aligned trusts and various other taxes to remove the distortions under the previous Labour Government. I do note—and the member and the accountants do make a point—that cash flow is very important for small businesses absolutely crucial so it would really help if people paid their bills when due such as invoices received and not pay after 4 months Mr Little.