New rules on tax credits for R&D spending are close to becoming law, but they won't be administered by the Inland Revenue Department. Members of Parliament have decided that since it would take time for IRD to build its expertise, they "see value" in allowing it to consult Crown agency Callaghan Innovation on difficult or marginal applications. And IRD computers can't cope with the changes, so the Ministry of Business, Innovation and Employment will use its systems to administer the credits. It's not the first time policy has been dictated by what IRD's computers can handle. This time, it means law changes will be needed to allow IRD, Callaghan Innovation and the Ministry to share companies' information.
The IRD is not the only agency with IT trouble. Land Information NZ has been given the new task of recording information about foreigners buying houses. The law comes into force on October 1, but it will take LINZ until December at least to get its IT systems ready. Until then, information will have to be supplied on paper by lawyers, conveyancers and others. One problem for departments when they upgrade IT systems to meet the demands of politicians and the public is that they then get bashed over the head for "gold plating" or "cost blowouts".
Unflagging devotion
Despite the flag referendum, many in National still cherish New Zealand's ties to "Mother England". The occasion of the Queen becoming Britain's longest-reigning monarch prompted avowed monarchist and list MP Paul Foster-Bell to throw a party in Parliament. It wasn't a riotous affair, though there was much eating of cake.