NZ Businesses Not Spurred To Move By Aus./US-FTA

Media Release
12 February 2004

NZ BUSINESSES NOT SPURRED TO MOVE BY AUSTRALIA-US FTA

Very few New Zealand medium-sized businesses will look to relocate part or all of their business to Australia as a result of the Australia-USA free trade agreement.

This finding is contained in the Grant Thornton - International Business Owners Survey (IBOS) conducted before the announcement of the conclusion of the agreement.

Only 8% of the 150 New Zealand medium-sized businesses* surveyed by the accountancy and business advisory firm said they would look at a move, or part move, to Australia in the event of a free trade agreement being concluded.

The vast majority (79%) said they would not consider relocation. The remaining 13% considered a free trade agreement would not affect their business.

The survey also found general discontent among the New Zealand businesses on the issues of cost of compliance with tax matters and regulations, the amount of tax paid and the influence Government has on business.

Some 67% said the cost of compliance was much too high, with another 18% considering it a little too high, and the remaining 8% just about right.

To the question of whether business paid too much tax, 51% said it was a lot too much, and 25% said a little too much. The remaining 18% did not think tax was too high.

Asked how much influence they felt Government had over their business, 52% said a lot of influence, 29% said some, 17% said a little and only 2% said no influence.

*Businesses employing between 10 and 50 people.

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