Border tax at odds with Bridges' liberalised travel message

Customs and primary industries ministers say if you're crossing the border you should be the one who pays to protect it. Photo / Greg Bowker

The announcement of plans to impose an "Anti-Travel Tax" came at an unfortunate time for Transport Minister Simon Bridges.

Just as he was packing his bags to head for Leipzig to lead an international forum aimed at making trade and tourism easier, his Cabinet colleagues announced in the Budget the measure which has the potential to impede travel.

Nobody's arguing against the need to keep out unwanted bugs and contraband but the tourism and travel industry is furious it has been singled out as an easy target by the Government for a "border clearance levy" of up to $22 a person. For a family of four that's $88 added to your trip away or to New Zealand for tourists. While visitors are unlikely to be deterred, they do find it expensive already.

Tourism bodies, airports and airlines are united in their opposition to this plan, dumped on them from out of the blue. While the amount is modest by international standards, these taxes don't help and have a habit of going only one way - up. And most galling is that this Government has lobbied against other countries slapping on border charges in the past. Tourist leaders argue the record number of travellers are paying GST at record levels and travel businesses are paying more tax so why not use that to fund border agencies from this as has traditionally been the case.

Customs and primary industries ministers say if you're crossing the border you should be the one who pays to protect it - the user pays argument. As Air New Zealand points out, where's the border protection component for someone leaving the country - under the plan they're up for a charge of $6.

Bridges has been an enthusiastic proponent of signing dozens of Air Services Agreements with different countries. These provide the regulatory framework for new airlines to come here but they do only if there's an economic case. Border taxes don't help them.

There's a consultation period from next month and expect the tourism and travel industry to push back loudly against the ministers who want to impose the new tax.

And after pushing the liberalised travel message on a world stage in Germany Bridges might want to have a quiet word as well.