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Advocacy for business by the BusinessNZ Network | |
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The Govt’s Action Plan for the 3rd quarter is well focused on economic growth, says BusinessNZ CEO Kirk Hope. The 19 action plans to Rebuild the economy and ease the cost of living reflect much of the advocacy promoted by BusinessNZ, including boosting infrastructure, cutting regulations, reviewing resource management, holidays and contractor law, and improving provision of water services, aquaculture, gene technology, congestion charging and building products. | | | |
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Business profitability down |
The average profitability of all NZ businesses (except in the financial sector) has fallen significantly over the last 2 years, with many firms grappling with outgoings greater than income. The sector’s gross operating surplus fell from nearly $19B in 2022 to $16B now. “Decreases in operating surplus reflect lower profitability for the business sector,” Stats NZ reported, noting that over the last year the production of goods and services had slowed while the cost of labour continued to rise. | | | |
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Small businesses are finding it hard to pay for power. A Consumer Advocacy Council survey shows around a third of SMEs are finding it harder to pay for electricity than in 2022. Only 12% of SMEs switched electricity providers in the survey period, with businesses surveyed saying the potential savings from switching were not worth the change or that it was too difficult to work out if they would save money compared to their current provider. | | | |
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Economic growth is expected to be mediocre over the next quarter, and economic growth per capita expected to be negative, the BusinessNZ Planning Forecast says. It notes BusinessNZ’s support for moves by the Govt to free up the use of resources and infrastructure development to help grow the economy, along with appropriate constraints and balances in decision-making. “A more welcoming approach to foreign direct investment is required along with a better understanding of the need for balance between economic development and environmental protection based on sound cost-benefit analysis,” the Forecast says. | | | |
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BusinessNZ and building and construction industry associations have achieved a win, securing the future of critical Standards needed for product safety, exporting and regulatory compliance. Since 2016 over 500 joint Standards covering both NZ and Australia have lapsed because of a lack of funding contributed by NZ, raising the risk of NZ industries operating without appropriate Standards. Recent advocacy by BusinessNZ and industry associations has now brought a promise by MBIE to pay for the Standards related to building, construction, and health and safety. | | | |
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Businesses are burdened by requirements for too many resource consents, BusinessNZ says. The latest report on implementation of the RMA shows 38,000 consents were applied for across NZ last year, with average fees charged ranging between $4k and $17k per application. This large number of applications indicates consents are being required for many trivial or ‘business as usual’ activities, bringing unnecessary costs for businesses and highlighting the pressing need for resource management law reform, BusinessNZ’s Catherine Beard says. | | | |
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Customers are demanding emissions be minimised, and NZ must maintain its position as an emissions-efficient food producer, a new report by Rabobank says. Over 80% of NZ exports are headed to countries with mandatory climate-related disclosures in force or on the way, while free trade agreements now contain enforceable obligations on emissions targets, bringing “an increasingly sticky web of obligations for NZ producers.” Rabobank recommends better benchmarking for emissions-efficient farming and more incentives for farmers and producers. | | | |
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AdvocacyUpdate is an update on recent activity & advocacy by the BusinessNZ Network | |
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