New Zealand Labour Party

Nats’ limited thinking stifling innovation

Businesses trying to innovate and create better products are being let down by this Government with an industry expert saying Steven Joyce’s mini-tax credits will have almost no impact, says Labour’s Finance spokesperson Grant Robertson.

“Andrew Dickeson, director of taxation services at Staples Rodway said: ‘I think people will be slow to change their approach to R&D based on this’.

“He’s exactly right. These half-baked tax credits come with some serious small print – when the business becomes profitable it has to pay them back. That’s not an incentive, it just encourages creative accounting.

“What's needed is a more comprehensive approach with across the board research and development tax credits. The piecemeal approach from National means the economy as a whole is missing out on crucial investment that will create high paying jobs.

“Businesses want an innovative partner in Government to support them. They won’t get it with Steven Joyce,” says Grant Robertson.