CARR BULLIES BUSINESS ON R&D

23-September-2010

Industry Minister Kim Carr’s confirmation today that he intends to implement proposed new research and development (R&D) tax laws with retrospective effect is a devastating blow for Australian industry.
Even in the face of widespread condemnation, Mr Carr attempted – and failed – earlier this year to make far-reaching changes to the legislation that governs public support for business R&D.
One expert was even moved to suggest that the new laws would have given expression to “the worst environment for Government support for R&D in this country for the past 25 years”. (Source: ARN Review, ‘Firestorm of criticism against Government R&D changes’, 12 January 2010.)

The Coalition had hoped that Mr Carr would have used the election period to reflect on (and make appropriate corrections to) the problems with his model, particularly his insistence on ignoring globally-accepted definitions of what constitutes R&D.

But it has been reported today that, far from backing down, he now intends to re-introduce the deeply-flawed legislation and to make it retrospective from July.

“This is a bloody-minded, belligerent and economically irresponsible approach from Labor,” said Shadow Industry Minister Sophie Mirabella.

“Mr Carr needs to listen to business, and stop proceeding down this destructive path of trying to save money for the Treasury by ravaging support for activity that is essential to Australia’s international competitiveness.

“These bullying tactics are a payback to the many critics of his approach – and have more place in the backrooms of the Socialist Left than in the offices of Government.

“Introducing the same flawed legislation all over again is a calculated insult to Australian investors in R&D, and attempting to make it retrospective is a calamity that will create utter chaos and confusion in planning processes.

“The thousands of business groups who have indicated their fury about these changes to us can rest assured that the Coalition will continue to stand up for them in their fight against these nonsensical and ill-conceived proposals.”