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Advocacy for business by the BusinessNZ Network | |
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Business sentiment: financial worries |
Financial concerns dominate the top five challenges for business, according to the BusinessNZ Business Sentiment Survey - high inflation and interest rates and high input prices impacting on profitablity, along with concerns about high government spending and low labour productivity. Most businesses surveyed want a reduction in the corporate tax rate and most are intending to authorise only the same or less capital expenditure over the next year compared with the year to date, the survey shows. | | | |
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Uber findings may be impracticable |
The Appeal Court’s finding that four Uber drivers are employees (but only when they are logged on to the Uber app) could raise problems if the finding is extended to cover all platform workers. It would mean each time a driver logs on, the employer would be required to meet all legal requirements re the Holidays Act, sick leave, etc - but only for the period the driver is logged on. This ‘on and off’ approach to compliance would be highly impractical, and a better approach would be for the Govt to legislate to clarify the employee/contractor distinction, BusinessNZ says. | | | |
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The Emission Trading Scheme has been asked to do too much, the BusinessNZ Energy Council (BEC) says. Its role should be to provide a price signal reflecting the marginal cost of emitting an additional tonne of carbon. Instead, the ETS has been rejigged to address policy outcomes, such as increased pine plantations, which are better addressed by policymakers themselves. BEC’s submission on NZ’s 2nd emissions reduction plan calls for more bipartisan agreement on the ETS, fewer consultations and changes, and a clearer focus on its main job of signalling the price for carbon emissions. | | | |
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Emitters' supply chain contributions |
Emissions-Intensive, Trade-Exposed (EITE) businesses, including steel manufacturing, chemical processing, paper manufacturing and mining, create substantial contributions to the economy and to employment while also facing competitive pressures in the global market. New research by Sapere estimates their contribution to regional employment and GDP and highlights their importance in their respective supply chains. The report reveals the economic loss that could occur should EITE businesses' levels of production be required to change in the future. | | | |
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BusinessNZ’s second submission to the University Advisory Group calls for better investment decisions by NZ universities and more qualifications reflecting the skills needed in NZ companies. Academics should be allowed to hold more ownership of the IP they create as an incentive to more innovation, international student numbers should not be capped, and world-class academics should be enticed here with favourable immigration settings. Teaching should be delivered more efficiently, online and on-demand, and shared rather than duplicated across universities, and technology should be used to reduce the proportion of administrators, the submission says. | | | |
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Ministerial power softened |
BusinessNZ supports the Govt’s decision to amend the Fast-track Approvals Bill following democracy concerns. The change shifts the final decision-making power away from Govt Ministers to an expert panel, similar to the previous Labour govt’s fast-track process. BusinessNZ had recommended that the Bill should require transparent decision-making by Ministers, and a sunset clause for when the RMA replacement legislation is in place, to help offset the concentration of the Ministerial powers contained in the Fast-track Approvals Bill. | | | |
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More competition in building products |
A Bill to amend the Building Act introduced in Parliament this week could help lower the cost of construction by letting in more building products from overseas. It would require consenting authorities to accept overseas building products certified under an MBIE certification scheme. It’s hoped the Bill will lead to improved competition in the building products market and overcome recent materials shortages that contributed to high building costs, delays in house construction, and the demise of building companies over recent years. House construction in NZ is currently 50% more expensive than in Australia. | | | |
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AdvocacyUpdate is an update on recent activity & advocacy by the BusinessNZ Network | |
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