Winning the paper war: Helping SMEs get on with job

Minister for Small Business JOHN TAMIHERE says cutting red tape will benefit the economy.

It's great to see the New Zealand Herald produce this guide assisting businesses with compliance issues.

Compliance - and complaints about the red-tape burden - will always be a fact of life for business to some extent, but as Minister for Small Business I am committed to driving Government initiatives to cut red tape as far as possible.

Because studies have consistently shown that the burden of compliance falls disproportionately on small business, reducing compliance for this sector is a priority for me in the small business portfolio.

It is also a key focus of the Small Business Advisory Group that has been appointed to advise the Government on how we can better serve small businesses.

The series of Small Business Days under way will also give the Government valuable feedback directly from small businesses on what we can do in this area. Responses will be collated and reported back to the Government to directly inform policy decisions.

The Government has already strengthened and refined the regulatory impact analysis process to improve transparency and better decisions surrounding regulation. In particular we have introduced the requirement that all Government departments attach a business compliance cost statement to all Cabinet papers seeking regulatory decisions - so the compliance impact can be seen and addressed up front.

We are also working through proposals following a discussion document on tax simplification that was released in December. They include subsidising PAYE agents, aligning provisional and GST payments, and basing provisional tax on GST-adjusted sales figures.

In addition, Inland Revenue's five-year e-enablement project is an example of our determination to improve our processes and make dealing with the Government easier. Already SMEs are able to file electronic tax returns, make online payments, access tax calculators and get advisory support. Next steps include enabling all major forms to be completed and submitted electronically and allowing taxpayers to view their account information online.

Another very practical measure was the establishment of the one-stop business portal last year. This allows businesses to access information on the web from a number of Government agencies, including the IRD, ACC and the Department of Labour. A customer review of the portal is in progress, but feedback from businesses so far indicates that it assists them greatly in dealing with compliance issues.

In February, Prime Minister Helen Clark launched the Employment Agreement Builder which provides businesses with an easy-to-use tool to help create employment agreements.

We have also provided more funding for business mentors, and New Zealand Trade and Enterprise is continuing to build the services it provides to businesses - both will provide new businesses in particular with a guiding hand through compliance issues.

Obviously, businesses would rather spend their time getting on with business than filling in forms, and that's a sentiment I can empathise with.

Small businesses are the engine-room of our economy, and if we can mitigate the excesses of compliance costs, that engine can only run more efficiently.