Backhanders have to stop—Minister

Press, 14 December 1985, Page 2

Backhanders have to stop—Minister

By

OLIVER RIDDELL

in Wellington

Backhanders to tour bus drivers and escorts have to stop, according to the Minister of Tourism, Mr Moore.

He said he was disturbed by South Island reports (‘The Press,” December 10) that some drivers have been “whipping thousands of taxfree dollars a year” from a booming tourist industry and were threatening the survival of companies that did not pay.

“This practice is totally abhorrent,” Mr Moore said. “It is not the New Zealand way and it has to stop.” Shop owners or sightseeing firms should come forward with any firm - evidence on the backhander allegations, in the interests of the whole industry. The Minister had been approached by people expressing concern that the backhander business was becoming widespread. There were assertions that some

drivers had been demanding up to 15 per cent of sales from shops and other businesses serving tourists. Mr Moore said the point had been made that the practice was unfair on other legitimate and honest traders, amounted to coercion, and probably involved tax evasion as well. Concern had been expressed in the last week by the Aorangi Regional Development Council, the Aorangi Public Relations Association, and some tour companies, and he would support the industry’s efforts to stamp out the practice.

Tour companies had given assurance that they would discipline immediately any staff members found accepting backhanders. The Tour Drivers’ Guild had said its members were opposed to under-the-counter payments. The Tourist Industry Federation had promised it would take instant- action on any case

that could be documented. “I don’t condemn all tour drivers or tour escorts,” Mr Moore said. “I am advised that only a few are involved in accepting these payments. .

“The shops and operators offering to pay, or crumbling and paying, are equally to blame. I can understand that some of them feel vulnerable, but I think it is time they organised themselves to withstand pressure to make such payments.” Should the backhander business be allowed to grow, visitors to New Zealand would ultimately suffer. All the research showed that while visitors were attracted to New Zealand by its lakes, mountains and forests, the lasting impression of New Zealand was the honesty and friendliness of its people, said Mr Moore. “We must not lose that to the ugly face of greed and dishonesty.”