The tax brake came too late for Arthur & Low radiator and exhaust specialists which is closing down after 79 years in business. Photo: RNZ/Robin Martin
New Plymouth businesses spoken to by RNZ have by and large welcomed the government's "investment boost" package.
The boost allows them to deduct 20 percent of the cost of new assets - such as machinery or tools - from taxable income on top of normal depreciation, meaning a much lower tax bill in the year of those purchases.
Finance Minister Nicola Willis said new tax credit would cost the government $1.7 billion a year in reduced revenue, but was expected to lift GDP by 1 percent and wages by 1.5 percent over the next two decades.
In a light-industrial area on the edge of the New Plymouth CBD most businesses supported the move.
Conrad Paul of NZ Bonding Services. Photo: RNZ/Robin Martin
Conrad Paul owns New Zealand Bonding Services, which manufactures hard to locate brake and clutch parts.
He thought the "investment boost" initiative could have a positive effect.
"It's going to encourage people to invest in their businesses and have better services for people."
Paul said it could allow him to buy new equipment or hire more staff.
"Possibly if it made it easier to do it, it probably would yeah."
Harley Coombe of Brake & Clutch Rebuilders. Photo: RNZ/Robin Martin
Harley Coombe owned the nearby business Brake and Clutch Rebuilders.
He was on the same page.
"I guess hey that's going to help isn't it, I suppose. I guess any little thing like that is going to help."
Coombe said it would give him more confidence to invest in the business.
"Oh yes, you've got to have new machinery you know and I guess that's a way to stimulate the economy, I suppose.
"If you spend the money on gear you're still creating jobs somewhere, you know."
New personnel might also be on the cards.
"It's staff, and finding good staff, that's the biggest trick of business."
A woman, who owned a similar business nearby but preferred not to give her name, didn't think the tax break would make that much difference.
"If we get more money back that's a win, but it's not something that's going to make me go out of my way to purchase new equipment."
She had a gloomy opinion about the state of the economy.
"It's pretty rough, but it's pretty rough everywhere."
Greg Plimmer of Glasscraft. Photo: RNZ/Robin Martin
Greg Plimmer owned glazing company Glasscraft on Molesworth Street.
He said if the government followed through with the policy it could make a difference.
"If they stick to what they say we'd be pretty happy.
"We're always looking to grow the business and machinery and things like that so that could actually work for us.
"I'd have to look into it more, but something needs to happen, businesses are struggling and I think something like this might be a positive."
For his neighbour Robbie Low of Arthur and Low exhaust and radiator specialists the move had come too late.
Low said the business established in 1946 was closing down.
"It's not going to make a lot of difference.
"At the moment they're bringing in too much stuff from overseas and stopping New Zealanders working... 79 years and we're shutting.
"It's too tough. Everything is too tough at the moment. There's always councils, government departments all wanting money all of the time. It's hard to survive."
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