Police Minister Stuart Nash is celebrating a new milestone as the Police workforce reaches the highest figure in its history.

“The total number of frontline officers, support staff, and others in the organisation who work to keep communities safe has now passed the 13,000 mark,” says Mr Nash.

“The number of frontline officers has increased by 595, or seven per cent, since the start of the 2017/18 financial year. The Coalition Government is now a third of the way towards its goal of 1800 extra Police.

“Thanks to increased investment of more than $300 million last year the total number of people who serve within Police is the largest ever. The Police workforce is a crucial part of our efforts to improve the wellbeing of New Zealanders.

“The organisation is made up of frontline officers, recruits in training, and non-constabulary support staff. While the workforce of uniformed and plain-clothed officers is often the most visible face of Police, I also want to acknowledge those who work behind the scenes to keep our communities safe.

“The non-constabulary workforce includes those who handle demanding roles such as round the clock work in Police communications centres. It includes specialists on the new digital frontline who tackle cybercrime, child sexual abuse, and complex financial investigations. It includes those who work to prevent family harm, support technical and covert operations, research and develop new policy, and who play a vital role handling police exhibits and examining crime scenes.

“The new milestone has been reached with the intake of the latest recruits at the Royal New Zealand Police College this week. The eighty recruits of Wing 326 have just begun an intensive 16-week training course. While training they are paid the equivalent of a $43,747 annual remuneration package.

“I am delighted with the diversity of the latest wing. Forty-three per cent are women, 19 per cent are Maori, six per cent are Pasifika and eight per cent are Asian. The youngest is 19 and the eldest is 51. When finally deployed they will be sent all over the country to urban and rural areas.

“Police data is now consistently showing a drop in the number of people who are victims of crime every month. The addition of extra police over the coming years will further ensure people feel safe in their communities.” Mr Nash says.

Background:

Since the beginning of the 2017/18 financial year the growth in the Police workforce has been as follows:

• Constabulary: currently 9434 frontline officers, an increase of 595.
• Recruits: currently 180 recruits in training
• Non-constabulary: Police staff currently total 3421, an increase of 353.

There is also strong interest from potential applicants who are keen on making a difference with a career in the Police. In the last six months of 2018 more than 2,800 people applied to join Police, an increase of 14 per cent on the same period in 2017.

The previously announced allocation of the 1800 extra Police is as follows:

*indicative placement of 1800 additional police above October 2017 target staffing levels.

New Zealand is to consult on the design of changes to tax rules which currently allow multinational companies in the digital services field to do business here without paying income tax.

Finance Minister Grant Robertson and Revenue Minister Stuart Nash say Cabinet has agreed to issue a discussion document about how to update our tax framework to ensure multinational companies pay their fair share of tax in this country.

“Highly digitalised companies, such as those offering social media networks, trading platforms, and online advertising, currently earn a significant income from New Zealand consumers without being liable for income tax. That is not fair, and we are determined to do something about it,” Grant Robertson said.

“International tax rules have not kept up with modern business developments. In the longer term this threatens the sustainability of our revenue base and the fairness of the tax system.

“The current tax rules also provide a competitive advantage to foreign companies in the digital services field compared to local companies who offer e-commerce, online advertising, and social networking services.

“The value of cross-border digital services in New Zealand is estimated to be around $2.7 billion. We are determined to ensure that multinational companies involved in this sector of the economy pay their fair share of tax. Our revenue estimate for a digital services tax is between $30 million and $80 million, which depends on how it is designed,” Grant Robertson said.

“New Zealand is currently working at the OECD to find an internationally agreed solution for including the digital economy within tax frameworks,” Stuart Nash said.

“Our preference is to continue working within the OECD, which was also recommended last year by the interim report of the Tax Working Group. However, we believe we need to move ahead with our own work so that we can proceed with our own form of a digital services tax, as an interim measure, until the OECD reaches agreement.

“This is the same approach being considered by Australian authorities, who released a discussion document late last year. The OECD has also released a discussion document on its proposals. Officials will now finalise the New Zealand document which is likely to be publicly released by May 2019.

“The document will make it clear we are determined that multinational companies pay their fair share of tax. We are committed to finding an international solution within the OECD but would also consider an interim option till the OECD finalises a position,” Stuart Nash said.

Background:

Digital services taxes (DST) are generally charged at a very low flat rate of two to three per cent on the gross revenue earned by a multinational company in that country.

A number of countries including the UK, Spain, Italy, France, Austria and India have enacted or announced a DST.

The EU and Australia are consulting on a DST.

DSTs do not apply to goods or services, but to digital platforms who depend on a base of users. These may include, but are not limited to, social media sites like Facebook, content sharing sites like YouTube or Instagram, those that offer intermediary services like Uber, Airbnb and eBay, and others that earn income from online advertising.