17 May 2007

Media Release

SMES And Low Earners Miss Out?

There is a part of the economy that doesn’t stand a show of benefiting from this Budget,” said Michael Barnett, Chief Executive of the Auckland Chamber of Commerce.

• The low paid – the Kiwisaver scheme is all very well, but when you are earning $21,000 a year, all your money is going on living for the here and now, and the social welfare cost of living top-up is unlikely to be targeted to saving for retirement.
• The 40% of SMEs who are not incorporated – partnerships and sole traders - they will not benefit from business tax reductions.
• The SME – there are 300,000 businesses in NZ, 95% employing 20 or less. The point of entry for the R&D assistance requires a contribution of at least $20,000 to participate. While many of these businesses are innovative and creative, they just do not have this kind of money available at short hand and surplus.

“All praise to the Budget for focusing on research and development, but our history shows that we are good at the research side but not good on development – turning good ideas into action,” said Mr Barnett.

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