Government reviews security fee for business

Legislation slapping a $20 million fee on businesses to meet United States requirements for higher security standards is under review, Prime Minister Helen Clark told Parliament on Thursday.

In its report on the Border Security Bill last month, the Government administration select committee left in place the "cost recovery" requirement.

Questioned by New Zealand First MP Peter Brown, Helen Clark said a review was now underway.

"In the next few weeks the Deputy Prime Minister will be issuing a consultation paper for discussion with industry to see whether the appropriate funding split is what we have at the present," she said.

The present proposal would have industry picking up about a third of the costs of passenger clearance services.

"It is a question about where the costs of new requirements fall," Helen Clark said.

Mr Brown welcomed the comments.

"Border security is a cost that should be met by the state because it is there to protect us all," he said.

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

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