$20m security cost left on businesses

By KEVIN NORQUAY

Lobbyists have failed to persuade the Government not to claw $20 million out of their sector to pay for increased border biosecurity checks.

In its report on the Border Security Bill tabled in Parliament on Wednesday, the administration select committee left in place a "cost recovery" requirement.

If the bill is passed, a $20 million security fee will be applied to businesses to meet United States requirements for higher security standards because of fears of terrorism.

Federated Farmers chief executive Tony St Clair said he was bitterly disappointed that the legislation had not been amended.

"They are penalising the wealth creators, the ones who provide so much employment and opportunity for this country," he said.

The Travel and Trade Industry Coalition said it too was disappointed by the provision.

Coalition chairman Stewart Milne said no coherent case had been made for loading security costs on to carriers, exporters and importers.

"Terrorism does not distinguish between carriers, exporters, importers or other sectors of the community," he said.

"The Government should spread the cost of security across all New Zealanders via taxation. By saying that trading companies should pay for everyone else's security, the Government is abrogating its responsibilities.

"This tax on trade will further erode New Zealand's international competitiveness."

In a minority view, National Party members on the committee criticised cost recovery as an "extra tax on our exporters and importers".

In its report, the select committee said the $19.753 million cited as the amount to be recovered was, according to officials and Treasury, "not well substantiated".

It did not say whether costs were expected be more or less than that.

"If this bill is enacted, the advice also shows that as much as 70 per cent of the cost of the security part of customs will be placed on importers and exporters," the report said.

"Comments made by officials indicate that the Government has a desire to substantially shift the cost of security measures at our ports and airports on to importers and exporters."

International bodies have pushed for tighter border control standards since more than 3000 people died in terrorist attacks on the United States on September 11, 2001.

The bill was intended to:

* Improve travel and trade security.

* Enhance security relationships within the trade supply chain and travel network.

* Strengthen the gathering and sharing of intelligence.* Ensure better use of information to assess risk.

It will give customs officers greater powers.

The new fee was expected to be introduced from July to recover approximately $8 million from the export sector, $4 million from importers and $8 million for security screening of goods trans-shipped through New Zealand.

- NZPA