Dene Mackenzie

Telecom shares plunged to a new low yesterday as uncertainty about the future structure of the once blue chip company set in.

Dunedin-based Motor Trade Finances is facing the future with confidence, managing director Angus Bradshaw says.

The Government has pledged to improve the management of the assets it owns.

The surprise announcement that New Zealand's company tax rate would fall from 30% to 28% from April 1 next year was generally welcomed by the business community.

The increase in GST to 15% from October 1 had the potential to create huge and complex problems for all taxpayers, WHK tax consultant Jarod Chisholm warned last night.

The Government's operating deficit, which soared as the recession deepened, is forecast to reach surplus by the 2015-16 financial year, three years ahead of last year's projection.

The Government yesterday moved to curb New Zealanders' obsession with property, Mitchell Mackersy partner Sally Peart said last night.

Sweeping tax reforms introduced yesterday by Minister of Finance, Bill English, were the cornerstone of his second Budget of the current Government.

The Government's opponents acted swiftly yesterday to decry reported comments made by Prime Minister John Key that Kiwis should not be jealous if the rich get more from tomorrow's Budget tax package.

May is looming as a month of transtasman tax as governments here and in Australia finish preparations to their Budgets.

Westpac New Zealand chief executive officer George Frazis was in Dunedin yesterday, celebrating another successful part of his strategy of "more banks in more places".

Activity in the Otago-Southland services industries took a hit in April, falling after two months of expansion, the latest Performance in Services Index shows.

Changes already signalled for rules surrounding property investment are expected to be the main focus for financial markets when Finance Minister Bill English presents his 2010 Budget on Thursday.

It was crucial New Zealand remained competitive with Australia in tax rates as this country looked to attract both labour and capital, Deloitte associate tax director Peter Truman said yesterday.

Finance Minister Bill English yesterday warned that big-spending budgets were a thing of the past and that he would be focusing next month on a "clear message of restraint".

Finance Minister Bill English should avoid using extreme examples and making "kneejerk reactions" when considering changes to the tax system to be announced in the Budget.