Simon Bridges: Auckland Chamber of Commerce CEO blames IRD methods for uptick in business closures

Inland Revenue is being asked not to seesaw on its stance, with rising liquidations across the country.

Centrix's July figures reveal business liquidations are up 19 percent overall year-on-year.

They sparked spiked sharply in Auckland in the second quarter, up 33 percent annually.

Auckland Chamber of Commerce CEO Simon Bridges says he thinks IR's hard-line approach is behind a majority of closures.

"I think it's probably a movement from Covid settings, where, like the RBNZ, they realised they overdid it one way and they came back in hard on the other way."

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Episode Transcript

Speaker 1 (00:00):
Liquidations are up nineteen percent year on year. According to
new data from Centrics. Liquidations a rising across most of
the regions. In Auckland spiked sharply in the second quarter
of this year. Auckland Business Chamber CEO Simon Bridges is
with us.

Speaker 2 (00:13):
Now, hey, Simon, Hey, get a Heather.

Speaker 1 (00:15):
Does that mean Auckland has been the hardest hit? Oh?

Speaker 2 (00:18):
I think it probably does. And I think you know
what's very interesting to me and talking of some liquid
ators about this today is just a massive sea sawing
actually from my ID so from hugely lenient letting everything
go in COVID, probably the staunchest enforcement around GSTNPA wias
that we've seen the very long time. It is. But
like the that the rpn z's ocr story, if you

(00:41):
like very light, very dubbish, then hugely hawkish.

Speaker 1 (00:45):
And start doing this.

Speaker 2 (00:48):
At the start of this year is the feedback and
the clear majority of the liquidations are by our IID.
If you want to contrast it with receiverships where you're
talking about you know, fundamentally banks and finance companies, it's
not it's a non statutory process. Really, they've been much
more pragmatic and Consequently, the numbers that we're seeing and

(01:09):
know where near as many, and I suppose the banks
are saying, well, actually, if we can hold off doing
this and the business survives, I'd rather have seventy percent
of something than destroy the value of the company. So
I think there's a bit of a question here. Do
we need to see us somewhat more pragmatic ird rather
than this massive sea sawing.

Speaker 1 (01:30):
What do you put that down to? Is this Nicola
willis telling them to chase the tax dollars.

Speaker 2 (01:34):
Well, funnily enough, I was with her today and we're
talking to business and taking the pulse. I don't think
so this came up at a level. I think it's
probably a movement from COVID settings where they kind of
like the RB and Z say, realize they overdid it
one way and they're coming back and hard the other way.
But I think my message would be, you know what,

(01:55):
actually take a bit of pragmatism here. A business that
over time has earned a few more dollars then it's
spent as a business worth having in New Zealand and
it's been tough, but they can come back and they
can be productive businesses. In Auckland and around New Zealand.

Speaker 1 (02:13):
Really interesting take on that, Simon. Thank you for that
insight that. Simon Bridge's CEO of Auckland Business Chamber.

Speaker 2 (02:18):
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