Capital gains tax, Brierley's final bat, crackdown on developers

Frustration may have driven the Reserve Bank’s uncharacteristic outburst about capital gains taxation and house prices. But the capital gains debate has clouded what the Reserve Bank was really saying – there are many factors at play in the overheated housing market, and New Zealand needs to consider all of them, including how investments, such as property, are taxed. Rob Hosking looks at six possible options.

Meanwhile, Auckland’s residential property boom has generated much controversy but is short on facts, says Michael Coote.

Opinionated, strong-willed, divisive at times – Sir Ron Brierely’s illustrious, yet controversial career in the New Zealand capital markets finally came to an end this week. Shoeshine looks back on Sir Ron's time with Brierley Investments and later Guinness Peat Group, now known as Coats Group.

Dry conditions in the South Island are taking a toll on hydropower generation, and the low rainfall has already meant reductions in power companies’ forecast earnings. Share prices have also taken a hit, with Mighty River Power [NZX:MRP] and Meridian [NZX:MEL] stock plunging almost 12% in March. Calida Smylie reports.

Housing Minister Nick Smith is promising a crackdown on developers sitting on SHA land hoping to on-sell for a quick capital gain. Auckland property barrister Andrew Guest tells Sally Lindsay the landbankers should be told forcefully to apply for development resource consents or have their SHA status removed if they don’t hurry up. 

Also inside NBR today: Latest new-car figures for March show that the overall market is the strongest for this time of the year since 1984 and volume is up 8% over the same period in 2014. Read David Linklater’s take in Showroom in this issue.

Peter Harris has tried hard to avoid the limelight over the years but that’s likely to change quickly if CBL Insurance goes ahead with a public float as planned. Duncan Bridgeman reports.

HarvestPro’s unsecured creditors are demanding answers over how the failed forest contractor can walk away from most of its $26 million debt while its two directors continue to operate dozens of other companies out of its suburban Auckland Silverdale office. Jamie Ball reports.

Trademark owners wanting protection from “ambush marketing” using Google AdWords have lost out as a test case has settled, writes Victoria Young.

On the political front, Rob Hosking writes in his Order Paper column the two larger opposition parties have been eerily quiet since the Northland by-election.

All this and more in today's National Business Review. Out now.