Dismissal of R&D tax credit proves Government has no credible plan
Finance Minister Bill English’s dismissal of a research and development tax credit as an unaffordable luxury shows that the National Government has no credible plan for our economy, says Labour’s Research and Development, Science and Technology spokesperson Moana Mackey.
National this week abolished the 15 percent R&D tax credit introduced by the previous Labour government.
“The Minister has prioritised more than $250 million for tax cuts for the top three percent of income earners, paid for by raising taxes on our most innovative companies. If this is National’s economic strategy for a better brighter future, we should all be very worried.”
Ms Mackey said that the Minister’s claims that the tax credit should go because no businesses he’d talked to wanted it were ridiculous.
“We know that during the election campaign business leaders were flying around the country to meet with Mr English to try and convince him to keep the R&D tax credit, and many others were publically vocal in their condemnation of his policy.”
“Clearly Mr English either wasn’t listening or doesn't care.”
Ms Mackey said that government support for R&D was crucial given the tough economic times ahead.
“The tax credit was designed to support the very companies we should be turning to help lift us out of this economic crisis. This week National has pulled the rug out from under them and proved that they have no credible economic strategy to get New Zealand through this crisis.”
