15 May 2007
Banks should spend tax handout in New Zealand
Australian owned banks should invest the tax handout they are going to receive in Thursday's government budget back into their New Zealand businesses says Finsec, the bank workers' union.
Finsec estimates that the cut in the business tax rate from 33 cents to 30 cents in the dollar could add up to $124 million to the combined profits of the four major Australian-owned banks that operate in New Zealand.
"Giving banks a handout by cutting the corporate tax rate to 30 cents in the dollar will mean that banks could be up to $124 million richer based on last year's before tax profit results. This money should be invested in their New Zealand businesses, workers and customers rather than sent off-shore to overseas shareholders", said Andrew Campbell, Finsec Campaigns Director.
"The business tax handout should not be applied to large foreign-owned companies like banks. The only group that will benefit from this move are overseas shareholders, at the expense of New Zealand tax payers", said Campbell.
"We are calling on the banks to demonstrate some corporate responsibility by spending all of their tax handout in New Zealand, investing in their workforce and improving customer service levels", said Campbell.
"Bank workers are campaigning on behalf of all New Zealanders to make the banking industry here better. Investments such as employing more staff, providing better training and skill development, upgrading branches and technology systems are all better uses of the tax handout than sending it back across the Tasman", said Campbell.
