MEDIA RELEASE
7 August 2003
GOVERNMENT NEEDS TO ENCOURAGE NZ INVESTORS
"The announcement by the Revenue Minister, Dr Michael
Cullen, to the Institute of Chartered Accountants in Auckland, warning that the Government
would move to prevent New Zealand investors using certain overseas funds to escape tax
only serves to highlight the importance of the savings industry’s repeated calls for
reform of taxation on savings", said Mr Arkinstall, CEO of the Investment Savings and
Insurance Association.
"The savings industry has consistently sought action to
remove the barriers and disincentives that have effectively overtaxed many savers in this
country", Mr Arkinstall said.
"Faced with an unfriendly taxation environment for savings
and competition from offshore investment products it comes as no great surprise if NZ fund
managers have "pushed the envelope" in attempts to answer the call for
competitive products by NZ investors", said Mr Arkinstall.
"Rather than negative messages, what New Zealand investors
need to see are the steps that Government will take to provide a level playing field on
which NZ saving products compete on an equal footing with a range of global saving
opportunities, and further clear signals that increased personal savings levels are an
important component of a strong vibrant and growing economy supported by actions that
encourage savers", Mr Arkinstall said.
"The savings industry has long resisted resorting to
exploration of loopholes in the tax system which we agree with the Minister, inevitably
create short term gains and distortions. The industry was disappointed that the McLeod Tax
Review failed to address the problems faced by NZ savers. This was a lost opportunity
which may have pushed NZ product providers to seek creative solutions. Saving and
investment takes place on a global stage. New Zealand fund managers compete with the best
in the world and are under constant pressure to deliver competitive investment and savings
vehicles for New Zealander investors. New Zealand investors and the savings industry
continue to call for an encouraging savings environment."
Mr Arkinstall said, "the industry welcomes the opportunity
to work with Government when it releases its consultation document in October."
Ends
For further information contact:
Vance Arkinstall, Chief Executive
Investment Savings and Insurance Association
