'No bed tax' - Luxon
National Party leader Christopher Luxon has ruled out a bed tax in the short term to fund Queenstown Lakes under-pressure infrastructure.
Luxon was in Queenstown today to announce a host of new policies he'll implement to boost the tourism industry and New Zealand economy, if elected in October's General Election.
The plan includes lifting the upper age for working holiday visas from 30 to 35 years, and allowing people to apply for a second and third work visa while worker shortages continue, while also removing the median wage requirement and fast-tracking applications.
His party will also task the proposed National Infrastructure Agency to work with councils to provide more funding to areas with high visitor numbers but low ratepayer bases, such as Queenstown Lakes.
But, asked directly about whether the National Party supports a bed tax, or visitor levy, which Queenstown Lakes District Council is pushing for to pay for the infrastructure needed to cope with high tourism numbers, Luxon dismissed the plans.
"Look, the reality for us, in a cost of living crisis, that is not the right answer for New Zealand at this point in time," he says.
Neither was an increase in the $35 International Visitor Levy the answer, although he said he would like to see the existing funds raised from it applied better.
Instead, Luxon says National will work directly with councils on funding.
"I want central and local government working in a more constructive way. We've actually got to sit down with them and say 'what are the long investments that are needed in this sub-region of New Zealand'. That will be different here in Queenstown, from Hawke's Bay, from Northland to Southland to the West Coast.
"Let's actually identify what those projects are. We see that's the way the Brits work, the way the Australians work, so that we are actually getting long term planning in place . . . rather than band-aiding and supergluing stuff together..."
On immigration, Luxon says removing the rule that employers must pay migrants 95% of the median wage, currently $29.66 per hour, would allow tourism businesses to "attract the staff they need at rates that reflect their skills and experience".
Being able to renew work visas for a second and third time would enable NZ to compete with the likes of Australia and Canada.
"We want to be able to reach out and actually make New Zealand attractive again, as it once was."
He believed that would enable businesses to attract "thousands or hopefully tens of thousands" of workers, paid good wages but without the cost barrier for businesses.
Luxon said exploitation, highlighted in recent cases in NZ, could be avoided if "Immigration New Zealand was doing its job", pointing out that only 2% of businesses are audited.
"We do not want to see migrant exploitation in New Zealand. The images that we've all seen over the last six weeks in this country are things that we would see in other places, but never expect to see here in New Zealand."
He was challenged by media on what increased migration might mean for Queenstown Lakes housing availability, where workers were already sleeping in cars.
Luxon says National will increase the land available for housing by asking every council in the country to consent 30 years of housing growth.
"That's what many other countries do around the world. It's important that we have an infrastructure in New Zealand that's actually focused on a 30-year pipeline with decent projects properly defined like we see in Australia."
Targeted rates would mean the costs were placed on the developments, rather than cross-subsidised from existing ratepayers.
"And what we're going to say to councils is 'if you build above your five year average, we will pay you $25k per consent, for every property that's built', to get councils participating in the benefits of growth."
He reiterated National's previously announced policy to support landlords bringing more rentals to market, by enabling them to deduct mortgage interest from their taxes, and reducing the Bright Line test back to two years.
And he highlighted the need to direct capital to good community housing providers, such as Queenstown Lakes Community Housing Trust, and also to encourage overseas capital to finance build-to-rent schemes.
"You need innovative housing solutions. So many countries around the world have build-to-rent projects and products that are available. Those are really good options for workers . . ."
Last week, National announced plans to allow foreign buyers to buy houses in New Zealand again, with a 15% tax on properties over $2 million going direct to the treasury. That would repeal the ban introduced by Parliament in 2018.
Luxon says that would stimulate investment in NZ.
"I want to have a tech entrepreneur who wants to live six months in San Francisco and six months here in Queenstown, with an ability to buy a house, because that means they can actually make an investment, partner with a local New Zealand firm, build their knowledge, pass on their talent . . ."
Luxon also announced plans to create a new 80km Great Walk in the South Island at Waiau – Toa/Molesworth, to co-invest $3 million in e-bike chargers to electrifying the New Zealand Cycle Trail, and a $5m contestable fund for Regional Tourism Organisations, such as Destination Queenstown, to promote regional events.
The total cost of the package of improvements will be $22 million over four years. National will fund this from unallocated revenue from the International Visitor Levy.
