Revenue Minister Judith Collins has welcomed a second round of negotiations between China and New Zealand tax officials aimed at updating the current double tax agreement signed between the two countries in 1986.

“The aim is to agree a new treaty, adopting modern treaty language and concepts, including agreed measures to deal with base erosion and profit shifting,” Ms Collins says.

New Zealand tax officials will meet with Chinese officials in Beijing next week for the second time since 2014, to discuss a new treaty.

Double tax agreements are an important facilitator of trade and investment between countries because they ensure businesses don’t get taxed twice.

They provide greater certainty for both taxpayers and tax administrators about how cross-border investment income will be taxed. They reduce compliance costs and lower tax on some income.

Tax agreements are also used in the global fight against tax evasion, with signatories agreeing to share more tax information under the global standard set by the G20 and OECD.

China is New Zealand’s largest trading partner in goods and second largest overall including trade in services.

“In this context, it is vital to ensure our double tax agreement with China is up to date and follows best practices,” Ms Collins says.

| A Beehive release  || August 11,  2017   |||

The New Zealand Customs Service (Customs) today filed charges against Pacific Aerospace Limited for three breaches of the United Nations Sanctions (Democratic People’s Republic of Korea) Regulations 2006, and one charge under section 203(1)(b) of the Customs and Excise Act 1996.

The charges are in relation to the export of aircraft parts, and for making an erroneous declaration about parts exported inside the aircraft but not declared.

The maximum penalty for a breach of the Regulations is a maximum of 12 months imprisonment or a fine not exceeding $10,000 in the case of an individual or in the case of a company or other corporation, a fine not exceeding $100,000.

The maximum penalty if convicted of an offence under section 203(1)(b) of the Customs and Excise Act is a fine not exceeding $1,000 for an individual, or a fine not exceeding $5,000 for a body corporate.

As legal proceedings are underway, Customs can make no further comment.

|  An NZ Custums Service statement  ||  August 9,  2017   ///

Statement by Reserve Bank Governor Graeme Wheeler: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Global economic growth has become more broad-based in recent quarters. However, inflation and wage outcomes remain subdued across the advanced economies, and challenges remain with on-going surplus capacity. Bond yields are low, credit spreads have narrowed and equity prices are at record levels. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward. The trade-weighted exchange rate has increased since the May Statement, partly in response to a weaker US dollar. A lower New Zealand dollar is needed to increase tradables inflation and help deliver more balanced growth. GDP in the March quarter was lower than expected, adding to the softening in growth observed at the end of 2016. Growth is expected to improve going forward, supported by accommodative monetary policy, strong population growth, an elevated terms of trade, and the fiscal stimulus outlined in Budget 2017. House price inflation continues to moderate due to loan-to-value ratio restrictions, affordability constraints, and a tightening in credit conditions. This moderation is expected to persist, although there remains a risk of resurgence in prices given continued strong population growth and resource constraints in the construction sector. Annual CPI inflation eased in the June quarter, but remains within the target range. Headline inflation is likely to decline in coming quarters as the effects of higher fuel and food prices dissipate. The outlook for tradables inflation remains weak. Non-tradables inflation remains moderate but is expected to increase gradually as capacity pressure increases, bringing headline inflation to the midpoint of the target range over the medium term. Longer-term inflation expectations remain well anchored at around 2 percent. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly. More information:· Read the Monetary Policy Statement· Watch the Monetary Policy Statement press conference live-stream at NZT 10am

|  A RBNZ release  ||  August 10,  2017   |||

Staples Australia and New Zealand has announced a rebranding and service-oriented pivot following Platinum Equity’s acquisition of the local division earlier this year.

The company will be retitled ‘Winc’, a name the company said was derived from the term “work incorporated”, and is expected to represent a “breakaway from traditional competitors” as the company adjusts its focus to more than just office product reselling.

Winc will continue to serve Staples ANZ’s more than 26,000 customers, including banks, telcos and healthcare providers from sites across both Australia and New Zealand.

Chief executive Darren Fullerton said the brand was “designed to bring a breath of fresh air to an industry that has been historically quite traditional and predictable”.

“It represents our shift from offering products to providing solutions and inspiring a better way for workers and learners to get things done. By its nature, it also gives us the ability to flex and add adjacent solutions and offerings to meet our customers’ needs both now and into the future,” he said.

Changes to the business also include investments in its supply chain, digital experience and a new service to help businesses monitor the performance of their company, heralding “the start of a complete change to the customer experience”, according to Fullerton.

“It is more than defending disruption from the likes of Amazon, it’s about developing our ability to see around corners and fully anticipate customer needs. We are also investing in a best-in-class digital experience, complete with artificial intelligence and full automation to remove friction in the cart process and provide smart insights to customers,” Fullerton said.

“Our competitive edge sits in our deep domain expertise. With our new customer insight report, called The Winc Review, we will provide a new level of insight and data for our customers into their own supply chain, innovation, compliance, cost management and sustainability. This information will, in turn, allow them to improve the overall health of their business in these critical areas.”

Fuller also spoke of strengthening the company’s delivery service, which was a point of pride for the business.

“Our drivers know our customers’ personally – in many cases they see them every day with a straight-to-desk-and-doorstep delivery experience. You don’t get this experience when you buy straight from an e-Commerce site. This is something our customers in Australia and New Zealand have told us time again that they value and we are making investments to make this experience even better,” he said.

The company will officially be known as Winc from 4 September.

|  A CrowdZ release  || August 7,  2017   |||

By Alex Tarrant

New Zealand’s manufacturers have issued a series of challenges to politicians on both sides of the aisle, saying leadership is needed on tertiary training to close skills shortage gaps, on research and development (R&D) incentives, and on readying the economy for the growth of automation.

In a Double Shot Interview with Interest.co.nz, New Zealand Manufacturers and Exporters Association (NZMEA) CEO Dieter Adam told Alex Tarrant that his organisation’s members were crying out to be heard on issues central to the future of the sector.

The NZMEA on Monday was set to host Finance Minister Steven Joyce, Labour’s finance spokesman Grant Robertson and Green Party co-leader James Shaw for a panel on how the various parties would help sustain and grow New Zealand’s manufacturing base.

From 26% of the country’s gross domestic product (GDP) 40 years ago, the manufacturing sector’s contribution to the overall economy has fallen to 10% of GDP today. Even over the past four years, the trend is evident, falling steadily each year from 10.5% of GDP in 2012 to 10% now despite the sector itself continuing to grow.

It may not seem much but we’re talking in the hundreds of millions of dollars as domestic consumption and the services sector, including services exports like tourism, jump up the list. While that’s all well and good for those industries, Adam argues government needs to focus on policies to allow his sector to flourish. “I’m not aware of any reasonably wealthy country that doesn’t have a strong manufacturing sector.”

Continue to read the complete article here   || August 7,  2017   |||

The Reserve Bank aims to improve the effectiveness of its prudential regulation through a combination of simpler regulations and bolstering its supervisory activities.

Deputy Governor Grant Spencer said in a speech to the Kanga News Capital Markets Conference today that the Bank is considering how it might improve its regulatory framework. Two catalysts in this regard are the recent IMF Financial Sector Assessment Program (FSAP) report, and the Bank’s recently initiated review of bank capital adequacy.

“We must maintain the high international reputation of the New Zealand financial system. Within that, we seek to maintain and build on the Bank’s non-intrusive supervisory approach and simple-yet-conservative prudential requirements.

“Compliance with the international prudential frameworks is not always a black and white choice. The Basel framework sets minimum standards for key prudential requirements, but often offers a menu of choices within those standards, for countries to tailor to their specific circumstances. A small country like New Zealand implicitly has a greater degree of freedom.

“We will continue to place emphasis on getting the right incentives in place for prudent institutional governance, supported by effective market discipline that increasingly makes use of technology advances,” Mr Spencer said.

“We want to simplify the current regulatory regime in a number of areas, but also heed the IMF’s advice about improving the effectiveness of our supervisory model. The IMF has recommended an increase in resourcing to achieve this.

“We believe the supervisory regime could be usefully bolstered through increased use of thematic reviews on topics of broad prudential interest. We are also looking to make greater use of targeted reviews by external experts in cases where serious non-compliance becomes apparent at particular institutions.

“With regard to the current review of bank capital adequacy, we are leaning towards simplifying both the allowable capital instruments and the methods for measuring risk, though we are in the consultative phase and far from making any decisions. We do not believe that New Zealand’s relatively vanilla banking system warrants a high degree of complexity in its capital regime.”

Mr Spencer said that the Bank will also review the minimum capital ratios. New Zealand’s relatively high-risk profile, due to high industry and portfolio concentration, supports a conservative approach relative to international peers.

He added that the Bank is mindful of inefficiencies that can be created if its prudential requirements needlessly or disproportionately add to the cost of financial intermediation, stifle innovation or disadvantage some institutions over others.

“The Bank sees its current Dashboard project as an important step in an on-going effort to support and enhance more effective and efficient disclosure for banks, insurers and other financial institutions.”

The Bank will explore how the macro-prudential framework can be made more robust through a stable and well-signalled policy process. The Bank will also be applying its key principles of simplicity, incentive alignment and conservatism in the upcoming review of the Insurance (Prudential Supervision) Act. More information:· Read the speech: Banking regulation: where to from here?

· Listen to excerpts of the speech on Soundcloud

| A RBNZ release  || August 2,  2017   |||

Pam Tipa writes in Rural News that almost $600 million flowed into the meat industry from outside New Zealand in the last 18 months.

Overseas firms looked to secure NZ beef and lamb and strengthen their global agrifood positions, says a new report.

Investors chiefly from China and Japan bought in, says the report ‘Investors Guide to the NZ Meat industry 2017’, released in June. It was commissioned by the Ministry of Business, Innovation and Employment (MBIE) and prepared by Coriolis.

| A RuralNews releas  || August 1,  2017   |||

Air Liquide (Paris:AI) announces today that it has completed the sale of Air Liquide Welding, its subsidiary specialized in the manufacture of welding and cutting technologies, to Lincoln Electric France SAS, subsidiary of Lincoln Electric Holdings, Inc. (“Lincoln Electric”) (Nasdaq : LECO).

This sale follows the signed agreement announced on April 27th 2017, with Lincoln Electric, the world leader in design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment, and the related usual regulatory approvals, including competition authorities’ approval.

Air Liquide is focused on its Gas & Services activities following the acquisition of Airgas, as well as on the implementation of its company program NEOS for the 2016-2020 period.

About Air Liquide WeldingAir Liquide’s subsidiary, Air Liquide Welding is a key player in the manufacturing of welding and cutting technologies. Air Liquide Welding, which has approximately 2,000 employees across the world, has generated in 2016 a turnover around €350 million. It offers, through several internationally well known brands (SAF-FRO and OERLIKON in the industrial field, CEMONT for professionals…), a large range of related equipment, consumables and services on the market.

About Lincoln ElectricLincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc welding systems, plasma and oxy-fuel cutting equipment and has a leading global position in the brazing and soldering alloys market. Headquartered in Cleveland, Ohio, Lincoln has 47 manufacturing locations, including operations and joint ventures in 19 countries and a worldwide network of distributors and sales offices covering more than 160 countries. In 2016, Lincoln Electric generated USD 2.3 billion in revenue. For more information about Lincoln Electric and its products and services, visit the Company's website at www.lincolnelectric.com.

The world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 80 countries with approximately 67,000 employees and serves more than 3 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.

Air Liquide’s ambition is to lead its industry, deliver long term performance and contribute to sustainability. The company’s customer-centric transformation strategy aims at profitable growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization implemented by the Group worldwide. Through the commitment and inventiveness of its people, Air Liquide leverages energy and environment transition, changes in healthcare and digitization, and delivers greater value to all its stakeholders.

Air Liquide’s revenue amounted to €18.1 billion in 2016 and its solutions that protect life and the environment represented more than 40% of sales. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes.

|  An Air Liquide release  ||  July 31,  2017   |||

When American Matthew Monahan first visited New Zealand, the Silicon Valley software developer was struck by a sense of possibility. Seven years later, the 33-year-old is helping the government lure other foreign entrepreneurs to the bottom of the world. It’s not a tough sell: the country’s strong economy, relative safety, political stability and famous natural beauty attracted a record 131,000 migrants in the year to June.

“It feels like you can do things in New Zealand you can’t do anywhere else,” said Monahan, who in 2012 sold the family history website he created with brother Brian for $100 million and today owns several properties near capital city Wellington.

REad the full article in BloombergPolitics written by Matthew Brockettand Tracy Withers

|  A Bloomberg release  ||  August 1,  2017   |||

BusinessNZ today released its Election Manifesto.

Based on a survey of employers throughout New Zealand*, the Manifesto outlines seven priorities that business would like to see enacted after the 2017 General Election.

BusinessNZ Chief Executive Kirk Hope said businesses want a Government that will reduce taxes, fix problem legislation, and boost growth in the regions.

"Business wants to see a tax cut for all categories of taxpayer early in the first term of the new Government, and no new taxes of any kind."

Mr Hope said employers in many sectors were worried about being unable to fill job vacancies, and wanted action on skills.

"They are unhappy with the level of skills coming out of the education system and want those skill gaps fixed by education and, if necessary, immigration. They want employees with better technical skills to help to grow more innovative and sustainable businesses."

Local government and the Resource Management Act were also a key concern

"There's a strong view that the RMA is holding the country back - 95 percent of businesses surveyed want it fixed or gone."

Businesses were also concerned about local government investing rates money in council-controlled enterprises and non-essential spending, while failing to invest in infrastructure. 65 percent wanted local government to stick to core functions like providing infrastructure.

Kirk Hope said business wanted a Government that continued negotiating free trade agreements to reduce the tariff burden on New Zealand exporters. A large majority want trade agreements with the US, UK, EU and the new TPP-11.

"These seven priorities if enacted by a new Government would improve the environment for enterprise and help business to create jobs and prosperity in local communities all over New Zealand."

|  A BusinessNZ Release  ||  Jluy 31,  2017   |||