PM reassures business crowd
The Christchurch rebuild, mental health, wellbeing, capital gains tax and carbon neutrality were topics canvassed by Prime Minister Jacinda Ardern to about 2000 Canterbury business leaders yesterday.
When Christchurch Airport chief executive Malcolm Johns asked about climate change shaping the economy, Ardern said it was embedded in everything the Government did in the transition to carbon neutrality.
While exporters were proud of New Zealand’s ‘‘clean green status’’, they faced discerning international consumers who would be looking at whether the country fulfilled international obligations, she said.
That was why the Government was channelling $100 million into a ‘‘green fund’’ to assist private investors with climate change ventures, she said.
Main Government economic aims included broadening the export base, trade training, making the tax system fairer, and investing in wellbeing as part of the annual Budget process.
On the local front, Ardern talked of the progress in opening the new Christchurch library Turanga, reopening the Town Hall, construction of the convention centre and commercial projects. The Metro Sports main works contractor would be announced soon.
Her Government last week announced a new $79m mental health facility to be built in Hillmorton to replace Princess Margaret Hospital.
‘‘This follows the $28m we invested in the Mana Ake programme into 165 schools with 57 joining next term, giving access to more than 600 young people in every primary school in the region,’’ Ardern said.
Reasons for regional optimism included Canterbury’s lower than average 3.8 per cent unemployment rate, and its strong ranking in ASB’s latest forecasts.
And in three weeks businesses would be able to access the $1 billion research and development tax credit giving a 15 per cent break on every dollar spent, she said.
Ardern saved the last part of her speech for capital gains tax.
‘‘I stress that no decisions on any one proposal have been made.’’ Capital gains would only be measured from the day any legislation was introduced, and only be paid by people when they sold an asset. ‘‘So there will be no impact day-to-day on the people who own these assets.
‘‘Small businesses and farming are crucial to the New Zealand economy and the effects on them will be top of mind when assessing options,’’ Ardern said.
In response to a member of the audience concerned about cannabis, Ardern said her Government was mindful of the harm drugs could do and had increased penalties for suppliers of synthetic drugs.
Users should be treated as having a health problem, she said. The current approach towards cannabis and drugs was not working, which was why reforms were under way.
The chief executive of the Canterbury Employers Chamber of Commerce, Leeann Watson, said it was good to hear Ardern’s commitment to Christchurch.
When it came to capital gains tax, Watson said she hoped the Government had learned that it was important to consult widely before making pronouncements such as the halt on oil and gas exploration. Watson said whatever model was chosen for skills training needed a ‘‘regional lens’’.