New Zealand Taxes Draw Australian Firms
New Zealand’s business environment and tax policies are encouraging a greater number of international companies to shift their operations into the country.
While making a media statement on May 31st, ManufacturingNZ executive director Catherine Beard said that New Zealand’s 28 percent corporate tax rate and comparatively low wage rates is an strong incentive for Australian manufacturers to shift at least part of their production to New Zealand based facilities. Her comments came in response to an announcement made on May 27th by the global food manufacturer Heinz that it will move part of its sauce making operations to its subsidiary Watties in Hastings, within the next 12 months.
She said that Heinz’s transfer to New Zealand would not directly result in any more jobs being created, as the additional manufacturing would be absorbed by Watties’ current production capabilities. However, Catherine Beard added that the move was “encouraging” and showed “that manufacturing is not necessarily dead”, suggesting that a greater number of manufacturer’s would consider moving to New Zealand.
It is expected that the Heinz’s move to New Zealand will see some positive economic impacts to the local agricultural sector, as the sauce manufacturer will no longer be processing tomatoes in its Australian branches, and will move all aspects of production to New Zealand.
According to a press release by Heinz, New Zealand’s business environment and tax system will allow the company to become more competitive on the international market place, and will accelerate future growth.
Photo by david.dames