Shipping industry rails at export security tax

The shipping industry yesterday complained to the Government about its refusal to reconsider the imposition of a security levy on exporters.

Tony Gibson, managing director of P&O Nedlloyd New Zealand, said it was also "indefensible" to use shipping lines to collect the levy.

Shipping lines were left with the problem of how to pass on the costs.

"It represents a cavalier attitude to the rights of the trading community and a refusal to accept that damage will be done to the nation's competitiveness," Gibson said.

There would be a flat fee of between $450-$650 for each departing ship to cover the cost of increased border security checks.

Despite industry opposition, the cost recovery proposal has been left in the Border Security Bill now tabled in Parliament. If the bill is passed, the tax will be introduced from July 1.

The industry has lobbied hard against having the pay the charge. It does not accept a user-pays basis for the levy.

"The Government did not seek views for and against its proposal. Instead, we were given a fait accompli and asked to comment on the methodology of implementation. That is hardly the means to achieve a sensible and rational consensus between Government and industry," Gibson said.

"We find it baffling that at a time when New Zealand traders need to maximise their competitiveness in the global marketplace, the Government will act to knowingly increase their costs and therefore make them less able to gain or retain market share."

He said it was a fallacy that traders would receive direct commercial benefits from the security strategy or that security costs were recognised internationally as a cost of trading.

"A trader simply pays more to achieve the same access he or she previously had."

However, without the stepped-up security, exporters would not be able to get their goods into the United States and other countries.

The shipping industry argues security is a national issue that should be paid for by the nation. It does not believe just those involved in exporting the goods should pay the cost.

Internationally, most Governments were absorbing much of the additional cost of security and allocating large amounts in their budget to meet the increased security need," Gibson said.

He called the move to collect the levy through shipping lines an infringement of commercial rights.

- NZPA