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Labor promises to extend the Small Business Cash Flow Loan Plan and increase the interest-free period.
Leader Jacinda Ardern unveiled a policy package together with Labor Small Business spokesperson Stuart Nash and Finance spokesperson Grant Robertson while campaigning in Tauranga today.
Nash said SMEs are at the center of Labor’s plan for economic recovery.
If reelected, the Labor Party would extend the loan scheme for three years and the interest-free period to two years.
I would also investigate more permanent financial support for small businesses.
“Our track record of supporting SMEs shows that we are prepared to respond quickly to keep the engine room of our economy running. We are now moving to the next phase to help small and medium-sized businesses adapt and innovate in the new business landscape. “Nash said. said.
“Improved cash flow support, new ways to drive digital transformation, and reduced costs and regulatory impacts are the foundation of our plans to help companies recover faster.
“Our message to small businesses is that we stand behind them,” he said.
Labor Party Leader Jacinda Ardern with Finance Spokesperson Grant Roberston and Small Business Spokesperson Stuart Nash.
Photo: RNZ / Dom Thomas
The unions also promised to “toughen regulations” around commercial service fees charged by banks to retailers.
“It is estimated that retailers pay an average of $ 13,000 more than their Australian counterparts each year in commercial service fees. This must change.
“The point at which customers transact with businesses is a source of concern for both health and the economy. Contactless payments provide customers and businesses with greater peace of mind as we all work to eliminate the virus,” he said Nash.
Labor also promised more support for digital transformation for SMEs through a $ 2,500 digital training voucher and to promote digital commerce, such as electronic invoicing.
Labor Party Leader Jacinda Ardern presented a policy package together with Small Business spokesperson Stuart Nash in Tauranga on September 8, 2020.
Photo: RNZ / Dom Thomas
Nash said the party would also mitigate compliance costs and reform the accounting income method tax regime.
“Central government regulations are also in the frame, as we are committed to putting small businesses at the center of decision making. A dedicated cross-government unit will be charged with ensuring that all proposed new regulations are considered from the perspective of SMEs.
“Small businesses are the lifeblood of our economy and will continue to be at the center of our policies. We will maintain the momentum of the recovery,” Nash said.
Welcome changes
Advocacy group Small Business Voice chief executive Max Whitehead said the move to cut PayWave’s fees was long overdue.
He said that commercial services fees were frustrating and in some cases crippling for businesses facing the pressures of the Covid-19 pandemic and, compared to Australia, said it was clear that New Zealand business was “being abused”.
“Small businesses are really doing everything they can to help our economy, pay their taxes, and get our country back on its feet. It’s those silly little things like this where people are exploiting small businesses, because they don’t have The strength of a great company, that’s really costing our nation right now, “he said.
“Small businesses, banks, government, everyone should say, look guys, let’s try to make business easier for small businesses right now. So I think the pressure should be exerted across the spectrum.”
Retail NZ CEO Greg Harford said the changes brought about by Visa and Mastercard last month had already leaked to businesses and made it a bit easier for them to pay commercial service fees.
But he welcomed the idea of the government playing a more regulatory role.
Greg Harford.
Photo: Supplied
“It is good news for retailers and any business that accepts card payments that there is likely to be more downward pressure on the fees associated with accepting them. The cost of accepting contactless credit and debit transactions in New Zealand has historically been two or three times more than it has been in places like Australia and the UK, “he said.
However, he said that today’s announcement was “pretty general” and he hoped to see how it progressed.
“I think there are a lot of details that will need to be worked out on how exactly this is going to work,” he said.
What the National Party thinks
National says Labor’s promise to lower pay wave rates for small businesses is a “fig leaf.”
National leader Judith Collins says that while they support the measure, it doesn’t cover Labor-imposed costs that are hurting small businesses, such as raising the minimum wage, fuel taxes and 90-day trials.
She says small businesses are making it extremely difficult right now and need more support.
National Finance Spokesperson Paul Goldsmith says: “While small businesses will welcome any government support, what they really need is to understand the pressure they are under.
“Small businesses are concerned about the mounting debts they have as a result of subsequent closings and paying their payroll.
“National knows that small businesses need cash flow and support to invest in their businesses. We recently launched a comprehensive policy package that includes a series of tax changes to reduce the cost of compliance for small businesses.”
