Business News

Earnings, investment and saving would be boosted in Australia and New Zealand if double-taxation of dividends was removed, the Australia New Zealand Leadership Forum says. At present companies based in Australia or New Zealand with operations in the other country have their profits taxed twice, since neither country recognises the other’s system for offsetting tax credits. The Australia New Zealand Leadership Forum wants the governments of both countries to change their tax law to abolish the double taxation and has commissioned analysis by the Centre for International Economics and NZIER to show what the economic benefits would be. The analysis released today indicates that removing double taxation would bring additional growth of at least NZ$5 billion in the trans-Tasman economy over 20 years, as well as further significant growth resulting from increased competition and innovation and reduced management time spent on tax avoidance. The analysis will inform the work of the Productivity Commissions of New Zealand and Australia as they consider the question of mutual recognition of imputation and franking credits. Australian Co-Chair of the Forum Rod McGeoch said enhancing business investment was a critical issue and a solution that facilitated greater investment flow in both directions would be welcome in both countries. New Zealand Co-Chair Jonathan Ling said resolving double taxation of dividends would be a key step towards better integration of the New Zealand and Australian economies. The Productivity Commissions are expected to release their report on the issue this month.  

  Researchers from The University of Auckland are developing cloud manufacturing technology to make it easier for New Zealand manufacturing companies to take on bigger projects and to share resources. Project leader Professor Xun Xu (left), from the Faculty of Engineering, an expert in intelligent and interoperable manufacturing solutions, says cloud manufacturing can give businesses access to extra manufacturing capabilities. “Cloud manufacturing allows a company’s resources to be packaged in a cloud for others to use. For example, a company may have a piece of machinery that is sitting idle for 50 percent of the time, which is a waste but if it were to hire that piece of machinery out by offering it as a cloud resource it could be used by another company. For both companies it’s a ‘win-win’ situation,” says Professor Xu. The University’s Cloud Manufacturing Platform project, the first of its kind in New Zealand and one of only a handful in the world, will enable manufacturing companies to share resources such as manufacturing software tools, equipment and fabrication capabilities with other companies. The technology, a computer and service related model which enables network access to a shared pool of manufacturing resources that can be quickly released with little management effort or service provider interaction, will make it easier for New Zealand manufacturing companies to collectively take on more substantial and complex projects, says Professor Xu. “It’s a good fit for New Zealand companies because they tend to be small in size so it’s difficult for them to take on big projects. But with cloud manufacturing if projects are too big for them to handle alone they will be able to access resources from other companies or to partner with other businesses.” Professor Xu says a cloud manufacturing platform can enhance a manufacturer’s capability, increase its […]

Waikato is on the verge of a youth employment crisis, with the leader of a new youth-focused strategy calling for employers and educators to join forces to create better work opportunities for young people. Mary Jensen, of Smart Waikato, launched the trust’s BEST Youth initiative recently, with more than 80 business and education leaders gathering at Wintec House in Hamilton to hear its strategic approach to combating youth unemployment. The programme is designed to buffer the region from a global employment crisis where almost 75 million young people world-wide are out of work. “BEST Youth stands for Businesses Engaging Skilled and Talented Youth. We aim to encourage employers to offer more opportunities to youth, in the form of work experience, apprenticeships, internships and cadetships. The ‘earn while you learn’ scenario is best,” Mary said. Smart Waikato will use its networks to link employers, tertiary institutions, schools and skilled and talented students to create an all-round ‘win’ for the workforce. BEST Youth strategies include developing employer awareness of the youth unemployment crisis, undertaking a stocktake of what is already available in the region and making it easier for employers to offer work experience, apprenticeships and cadetships. “We will also produce a magazine and social media specifically geared at young people. This will highlight best employment and training options for sustainable careers in a language and medium they relate to,” Mary said. Smart Waikato recently produced a report on the International Labour Conference held in Geneva in June this year showing almost 75 million young people are out of work worldwide in 2012 with millions more in low value, insecure jobs. Report findings prompted Smart Waikato to launch the youth initiative using seed funding from Wintec. “The global crisis mirrors what is happening locally. There is a decline of the quality of […]

Spring Creek miners and their families will lead a community ‘March for Work’ in Greymouth on Tuesday calling on Solid Energy and the Government to secure the future of the town and ensure the mine stays open. Solid Energy suspended operations at Spring Creek on Wednesday and is considering closing the mine – a decision that would put more than 200 people out of work and strike a devastating blow to a community still reeling from the Pike River tragedy. The ‘March for Work’ is supported by the EPMU, Grey District mayor Tony Kokshoorn, West Coast-Tasman MP Damien O’Connor and Pike River families spokesperson Bernie Monk. The EPMU’s West Coast organiser, Garth Elliott, says the march will show the strong community support for keeping Spring Creek open. “Our community has been absolutely battered in recent years, first with the Pike River tragedy and now this. We’re marching together to say to Solid Energy and to the Government that they can’t just abandon Greymouth. “Coal prices go up and down, but mining communities have to go on. We’re asking Solid Energy and the Government to take a real look at the damage that the closure of Spring Creek would do to the town and its people. “This kind of short-term thinking from Solid Energy isn’t in the interests of the company and it definitely isn’t in the interests of the communities whose labour and whose commitment has built our mining industry. “The community’s response so far has been really overwhelming, and we’re hoping for a good family event that shows what this community’s made of.” Spring Creek miner Daryl Sweetman says he doesn’t know what he’d do if he lost his job. He has a mortgage and a young baby, and his wife is pregnant with one more. “I was born […]

The NZ Newswire report today on the gains to be had by both New Zealand and Australia if they mutually recognise each other’s franking and imputation credits gives real oxygen to the issue, says the Employers & Manufacturers Association. “Its great to see the research numbers stack up high in favour of doing this,” said EMA’s chief executive Kim Campbell. “The report by Sydney’s Centre for International Economics and the New Zealand Institute of Economic Research shows mutual recognition would propel the trans-Tasman economy upwards by $A5.3 billion or $NZ6.9 billion by 2030. “Why wouldn’t you suffer the reported short-term hit to tax revenues to achieve this? The report says the hit would be just $NZ494 million for Australia and $NZ156 million for New Zealand. “We understand it was sent to the productivity commissions of both countries last Monday as a contribution to a project being carried out by them. “We have supported our government’s work to get this accepted in Australia for over a decade. A draft report is said to be made public on September 18. “A change would let people claim personal refunds on the tax that companies have already paid on the dividends they distribute to their shareholders. “Currently a trans-Tasman imputation regime permits trans-Tasman companies to allocate franking or imputation credits but shareholders are only able to use credits from their home jurisdiction, rather than receiving a full credit for the company tax paid in either country.”  

  There is a disconnect between the reported optimism of New Zealand businesses and their readiness to turn positivity into action, according to BNZ chief economist Tony Alexander. At a breakfast briefing held in Auckland recently, Alexander discussed New Zealand’s prospects for growth in an uncertain world. He shared insightful commentary on what lies ahead for the New Zealand economy with a focus on the labour market driven by overseas migration and the subsequent skills shortage. Alexander predicts a positive economic outlook with the New Zealand dollar poised to remain strong in relation to the rest of the world and he expects economic growth to rise from 1.7% to 2 – 2.5% year-on-year over the next two years. “New Zealand has a productive business base from which we, as a nation, accrue the most financial benefit,” said Alexander. “Our export market is not built simply around processing or manufacturing, but the availability and production of key commodities such as milk powder, wine and meat for export. “Furthermore, New Zealand is a strong investment ‘brand’ with a good reputation which creates a positive driver for export growth.” Because of the increased optimism, Alexander challenged New Zealand employers to look closely at their plans for business growth and their recruitment strategies to help drive that growth. In particular, how they might attract talent during an inevitable skills shortage. “The current skills-short market means companies will be increasingly looking at offshore recruitment options to plug the labour gaps,”said Alexander, challenging the audience: “How will you be hiring in six months time?” The commentary backed up what Robert Half is seeing on the ground: businesses are positive about growth but have been slow to react to what’s happening in the market and are cautious about hiring the skilled workforce needed to manage that growth. […]

– Eli Beman With comprehensive, effective support available to New Zealand exporters from government and financial institutions, and a strong value placed on international trade, we are fast becoming known as the little country with a lot to offer! Is exporting for me? There has never been a better time for manufacturers to trade internationally. If, like many manufacturers across New Zealand, your aim is to boost sales, increase profit and improve innovation then the question should not be Is Exporting for me? rather Why am I confining myself to local markets? Exporting can help boost sales by showcasing your product to new customers and niche markets. Your exposure to the global marketplace will ensure you become immersed in new concepts and technology, improving not only your ability to compete globally, but locally you will lead innovations and ideas. You will become familiar with international best practice and the needs of overseas customers, widening your potential to not only showcase your existing products, but explore demand for new products. According to recent research, exporting companies are more productive than non-exporters. The drive to succeed and compete is elevated by the exciting rewards that international trade has to offer. Often, more streamline and productive practice is discovered and adopted. It is also proven that with exporting comes better financial success. Those who decide to export increase their chance of building and maintaining a prosperous business. During local economic downturn, exporters often maintain a stronger standing than those businesses that rely solely on local economic conditions. Exporters are also less likely to be affected by seasonal factors that local markets impose. Break down barriers There are, of course, barriers to face when becoming involved in exporting. But, like all business practice, itÕs how you approach and break down those barriers that will […]

  David Shearer In 1881, a group of South Island farmers and businessmen established Summit Wool Spinners in Oamaru. It forged a proud heritage and grew into a high-tech international business: one of North Otago’s biggest employers. But in June, fifty jobs were lost at its Oamaru plant. In a population of 13,000 that’s got to hurt. This is happening too often: 70 jobs lost at Norman Ellison Carpets in June. 71 at Flotech. 55 at Gould’s Fine Foods in July. Some of those staff had been loyal employees for more than 20 years. There are plenty of reasons why businesses falter. But these weren’t fragile startups, or badly run. They were once very productive businesses. So what’s the problem? The government blames it on Europe. But our major trading partners, Australia and China, haven’t been in recession at all. In the last three years New Zealand’s GDP has grown just 0.4 per cent a year in comparison to Australia’s 2.8%. The government also blames it on the earthquakes. They were devastating, but economically the rebuild of Canterbury now presents a source of growth. We have tried to shield ourselves from declining living standards by borrowing money and selling assets. Consequently, our overseas liabilities from personal borrowing are among the highest in the world. Meanwhile we’re losing 50,000 good people a year to Australia because our wages are so low. I listened to a speech recently by Professor Gšran Roos, a world leader in innovation. His research shows that each job in manufacturing generates between 2-5 jobs in the rest of the economy. So when Oamaru loses 50 jobs in its wool mill, the ripple effect hits Timaru, Maheno, Hampden, Middlemarch, Palmerston, Ranfurly, Dunedin. Flip that on its head and – given the right conditions – renewed business vibrancy could […]

There is a disconnect between the reported optimism of New Zealand businesses and their readiness to turn positivity into action, according to BNZ chief economist Tony Alexander. At a breakfast briefing held in Auckland this week by Finance & Accounting and Technology recruiter Robert Half, Alexander discussed New Zealand’s prospects for growth in an uncertain world. He shared insightful commentary on what lies ahead for the New Zealand economy with a focus on the labour market driven by overseas migration and the subsequent skills shortage. Alexander predicts a positive economic outlook with the New Zealand dollar poised to remain strong in relation to the rest of the world and he expects economic growth to rise from 1.7% to 2 – 2.5% year-on-year over the next two years. “New Zealand has a productive business base from which we, as a nation, accrue the most financial benefit,” said Alexander. “Our export market is not built simply around processing or manufacturing, but the availability and production of key commodities such as milk powder, wine and meat for export. “Furthermore, New Zealand is a strong investment ‘brand’ with a good reputation which creates a positive driver for export growth.” Because of the increased optimism, Alexander challenged New Zealand employers to look closely at their plans for business growth and their recruitment strategies to help drive that growth. In particular, how they might attract talent during an inevitable skills shortage. “The current skills-short market means companies will be increasingly looking at offshore recruitment options to plug the labour gaps,” said Alexander, challenging the audience: “How will you be hiring in six months time?” The commentary backed up what Robert Half is seeing on the ground: businesses are positive about growth but have been slow to react to what’s happening in the market and are cautious […]