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Leader's LetterJuly 2005
Ship-In or Ship-Out?
New Zealand is an island nation tucked way down at the bottom of the Pacific, and is very dependent on trade. Over 99% of cargo tonnage arrives or departs by ship, yet our shipping industry is almost non-existent. Our coastal fleet is struggling and has shrunk alarmingly, and our Pacific and international fleets have disappeared totally. When it comes to shipping we are at the mercy of the world. We have barely a toe in the water and freight rates are climbing. The reason for the demise of our shipping industry is simple. Both National and Labour governments have literally taxed it out of the water. Foreign operators servicing this country's trade all work under favourable tax regimes. New Zealand First would introduce our own favourable tax regime and encourage owners and 'would-be' owners into shipping. We favour a tonnage tax regime similar to that adopted in Britain, whereby the owner/operators pay a minimum pre-determined level of tax. In return they are obliged to comply with specified registration, employment and training regulations. All vessels would have to be registered in New Zealand and coastal ships would have to be fully manned by New Zealand crew, from the lowest rating to the captain. Vessels trading in the South Pacific and internationally could have more flexible arrangements. New Zealand and Australia, and possibly one other in the OECD, do not have such favourable regimes. New Zealand First is not advocating a state shipping operation nor supporting a trading monopoly, where only New Zealand ships operate (cabotage). Our policy simply levels the fiscal playing field between New Zealand ships and foreign operators. If there is no demand it will not happen. However, a favourable tonnage tax regime will encourage ship owners to develop as they will not be unfairly disadvantaged as at present. In short, we have nothing to lose but everything to gain. As a trading nation which prides itself on its nautical achievements, it is beyond belief that our shipping industry is almost defunct. We are the one political party which wants to change that. Believe me, the spin-offs from an efficient and expanding Merchant Fleet are huge - both for those involved and the country as a whole. Peter Brown MP
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In the next few weeks you are going to learn of all sorts of policy directions from all political parties. Some policies will be compatible with ours, others not so. However, there is one policy which is likely to be advocated only by New Zealand First. It is an important policy involving an industry on which our economic and social well-being is totally dependent - shipping.|
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