'No claims' on TV exports

Press, 15 August 1980, Page 4

'No claims ' on TV exports

Parliamentary reporter

No claims for export incentives had been made by New Zealand television manufacturers under the I new value-added system, said the Acting Minister of Overseas Trade (Mr Quigley) yesterday. He was replying to ; charges made in Parliament ion Wednesday by Mr R. O. I Douglas (Labour, Manurewa) that manufacturers were I “ripping off” the taxpayer Hinder the new export incentive scheme by claiming [ incentives for a class of export which required at; least 75 per cent New Zea-land-added value when tele-! vision sets had an pverage imported content of 45 per! cent. i

Mr Quigley said that Mr Douglas’s allegations had been made in the mistaken

belief that exporters of television sets had claimed the incentive under the new value-added system. But since the scheme had not started until April 1, no claims had been made under it and the allegations had no foundation.

Since manufacturers had the alternative until 1983 of continuing with the old scheme or adopting the new. it was not yet known which course an exporter would follow. The responsibility for the accuracy of anv export incentive claim made to the Inland Revenue Department lay with the claimant and would be subject to the usual checks made by the department.

The figures used by Mr Douglas bad been taken out of context from separate replies given in Parliament to

written questions about the cost and price structures of television sets. These replies had had no' direct relevance to, and had not been portrayed as having relevance to the method of setting the levels of export incentives. In both instances it had been stated in the replies that the figures given were averages and that, because of the probable inclusion of incomplete- sets or some ancillary equipment, the actual export prices of television sets were significantly higher than the average figures indicated in the statistics.

Mr Quiglev said that in view of Mr Douglas’s claims he had arranged for ar examination to be made of the incentives applicable . to television sets. This had shown that the value-added banding and the rate of tax

credit incentive accorded to television sets was strictly in accordance with the statistical calculations used for all goods. It was recognised that changes in production methods, materials, and components might result in some changes to the valueadded figures on which the incentives were based, buf it had already been stated that all bandings would be reviewed, in consultation with the manufacturers, when more up-to-date figures became available.

“There is no question of there having been any malpractice by any of the departments or officials involved and there has been no special or unfair advantage given to the exporters of television sets,” said Mr i Quigley.