Business slams security tax plan

By JAMES GARDINER

Exporters have lined up en masse to oppose the Government's plan to hit them with the bulk of a $20 million "terror tax" for the costs of extra border security post-September 11.

They told Parliament's government administration select committee yesterday the costs of extra security should be shared by all taxpayers.

Air New Zealand also told the committee that its already marginal freight operations would become unprofitable if it were lumped with a share of the extra charges.

Customs Minister Rick Barker announced in November that 130 extra Customs staff and new x-ray machines would cost $20 million a year, to be collected from the private sector from July.

The need was driven by tough new security systems insisted on by the United States and adopted by most of New Zealand's trading partners.

Mr Barker said the costs would be met by new taxes on exports ($8 million), imports ($4 million) and goods passing through New Zealand on the way to other countries ($8 million).

"Those who benefit from New Zealand's reputation as a safe and secure trading partner should contribute towards the cost of meeting these new requirements," he said at the time.

After his attempt to get the measures introduced through a supplementary order paper were thwarted by the Opposition, Mr Barker added late amendments to the Border Security Bill, which was introduced last August but has yet to go back for a second reading.

Yesterday was the only opportunity for the exporters, the primary producer groups and a Travel and Trade Industry Coalition to have a say, and they had barely an hour among them to do it.

They argued they should not be singled out to pay for something that was a public good.

They were also unhappy at the way the charges would be imposed, failing to recognise the value or quantity of goods being levied in each instance.