Tax breaks for R & D
Finance Minister Michael Cullen has outlined changes to the tax treatment of research and development spending which were announced at the business-government forum in October. Michael Cullen says decisions were made after extensive consultation and represented the government's response to a discussion paper circulated in November under the Generic Tax Policy Process. The government will bring the tax laws into conformity with Financial Reporting Standard13 so that expenditure which business categorises as R&D and which is immediately written off for accounting purposes will also be immediately tax deductible. The minister says the announcement provides further evidence of the government's strong commitment to the knowledge society and to the role of R&D in the transformation of the economy.
New police vehicle package
Police Minister George Hawkins this week announced a $13.2 million new police vehicle package. The package will enable the police to purchase approximately 404 new six-cylinder vehicles. The new police vehicles will be fitted out as LPG duel-fuel vehicles. George Hawkins says it is important that frontline police officers are equipped with reliable vehicles that are suitable to the urgent nature of frontline operations. He says this latest package demonstrates the Government's commitment to ensuring Police are provided with the tools and equipment required to continue successes in cracking down on criminals. During this current financial year, the government has already provided police with $4.3 million to purchase125 new vehicles.
ACC payback for double-charged employers
ACC Minister Michael Cullen announced this week that employers who were double-charged about $10 million in premiums by ACC in the 1998-99 year will get a refund. Michael Cullen says employers and the self-employed who changed the status of their business and were entitled to receive but have not received an adjustment already will be able to apply for what is essentially a "wash-up" of their premium payment. He says he is keen to move quickly on this issue and to recognise premium payers' interests. Rather than a further case going through the courts, ACC will be guided by court decisions to date and the natural justice principle that people shouldn't pay twice for the same service.
Oceans policy group named
Pete Hodgson, the Minister Responsible for Oceans Policy, has announced that a widely experienced group of eight New Zealanders, led by Dame Catherine Tizard, will lead a six-month public consultation process on the development of a national Oceans Policy. Pete Hodgson, who is leading a committee of ministers responsible for the policy, said he was very pleased with the depth and expertise of the group. The minister says the development of an Oceans Policy is going to be as significant for New Zealand as the resource management law reform process begun under the last Labour government. There are at least 18 pieces of domestic legislation and fourteen departments of state involved in managing the marine environment. The committee will be responsible for managing and leading a nationwide consultation process to identify New Zealanders' goals for managing our oceans. It will report to ministers by 30 September.
Balance of payments result welcomed
Finance Minister Michael Cullen welcomed this week's December balance of payments figures, which he said were consistent with a strong export performance and good corporate profits in New Zealand. The goods surplus rose $320 million over the quarter reflecting an $802 million increase in exports against a much more modest $482 million increase in imports. Michael Cullen said this was off-set by an increase in the net investment income deficit. Overseas investors income from their New Zealand investments rose $374 million while New Zealand investors income from their overseas investments dropped $134 million - reflecting the relative strength of the New Zealand economy, particularly against Australia.
Auditor-General clears government MPs
A report this week from the Auditor-General cleared MPs Marian Hobbs and Phillida Bunkle of any wrongdoing over their claiming of parliamentary accommodation allowances. The Auditor-General said an MP could
be properly registered in a Wellington electorate, but still claim a Wellington accommodation allowance, as Ms Bunkle and Ms Hobbs had done. The report said both MPs had been acting on advice from Parliamentary Service staff when
they claimed the accommodation allowance. Prime Minister Helen Clark says she wants time to examine the report properly before making any substantive comments in relation to his findings.
Privacy Commissioner re-appointed
Associate Justice Minister Margaret Wilson has announced the re-appointment of the Privacy Commissioner, Bruce Slane, for a further two-year term. Margaret Wilson said the government was pleased Mr Slane was available to continue serving in this role. Bruce Slane is the first Privacy Commissioner appointed under the Privacy Act 1993. He has held office since April 1992.
Singapore deputy PM visiting
Singapore's Deputy Prime Minister, Dr Tony Tan, will visit New Zealand next week as a guest of the Government, Deputy Prime Minister Jim Anderton announced this week. Dr Tan is one of two Deputy Prime Ministers and is also Minister of Defence. His visit will begin in Christchurch on Sunday 25 March, and will include calls at Lincoln and Canterbury Universities. He will call on the Prime Minister and several other Ministers in Wellington. The visit ends in Auckland on 28 March.
New roles for Parekura Horomia
Maori Affairs Minister Parekura Horomia has been appointed Associate Fisheries Minister to Pete Hodgson and Associate Tourism Minister to Mark Burton. Parekura Horomia says tourism offers excellent potential for Maori business development and employment growth, with many Maori operators already involved in performing arts, arts and crafts, and adventure activities.
