AdvocacyUpdate for 27 June 2025

Can't read or see images? View this email in a browser

Advocacy for business by the BusinessNZ Network

Contributing to NZ policy

BusinessNZ's contribution to the policy process is highly evident this month, with analysis and recommendations on a broad range of current issues including achieving better regulation, vocational education that works for business, clarity around platform work, and protection of property rights. Business concerns over waste management and emissions trading settings are also raised. Meanwhile, the latest BusinessNZ Planning Forecast warns of the continued effects of international tensions but also forecasts a gradually improving domestic economy in New Zealand.

Tēna koutou katoa! Katherine Rich

International headwinds

The economy is expected to grow at nearly 3% by 2027 but faces strong headwinds, according to the latest BusinessNZ Planning Forecast. “Domestically there is some good news, with GDP improvement, lower inflation, strong commodity prices, and moves by the Govt to address poor regulation and allow greater deductions on business purchases. But NZ is a trading nation, linked to the rest of the world by key markets, supply chains and global investment flows, and forecasts of growth are heavily conditional on world events,” BusinessNZ economist John Pask said.

Industry should lead vocational education

Legislation to revamp the vocational education system needs to strengthen the role of industry, BusinessNZ says. Industries must to be able to lead the process of standard setting, to ensure the skills contained in vocational qualifications are up to date and relevant - the standard-setting process should not be dominated by government agencies but should enable industry to lead on skill matters, to ensure vocational education meets the needs of innovative, productive business, says BusinessNZ’s submission on the Education and Training (Vocational Education and Training System) Amendment Bill.

Property rights compensation

BusinessNZ supports the govt’s ability to acquire land needed for fast-track infrastructure but says owners should get proper compensation. A Public Works amendment Bill allows for land to be compulsorily acquired at market value plus a 5% bonus capped at $292k and an early settlement bonus of 15% of value capped at $150k. Capping bonus payments is fair to taxpayers, but the caps should be set higher, given that owners may value their property beyond market value, and proper compensation should always be made for any removal of property rights, BusinessNZ says.

Clarity on platform work

Individual countries should determine whether platform workers are classified as contractors or employees, the International Labour Organisation says. This year’s ILO Conference progressed negotiations towards an international treaty on platform work and indicated NZ’s recent legislation clarifying the difference between contracting and employment will be consistent with that emerging international agreement. NZ delegate, BusinessNZ’s Paul Mackay called for ongoing international support for new, digital business while ensuring all workers can access the benefits of their applicable mode of work, whether employment or contracting.

BusinessNZ supports Regulatory Bill

BusinessNZ strongly supports the passing of the Regulatory Standards Bill, saying unnecessary and excessive regulations are loading compliance costs on businesses and holding back business growth. A consistent set of principles for lawmaking needs to be developed, as well as a requirement for robust cost-benefit analysis of all proposed regulation, BusinessNZ’s submission says. It recommends that the Regulatory Standards Bill should be extended to cover Private Members Bills and local government regulation as well as central government legislation.

Changing the ETS

The BusinessNZ Energy Council (BEC) says businesses play a big role in reducing emissions to meet Paris agreement targets, and the Emissions Trading Scheme should remain NZ’s main tool for a least-cost pathway to net zero - but with fewer settings changes, to prevent undermining business investment. BEC agrees with the Climate Change Commission’s recommendation to increase volumes of carbon credits (NZUs) during 2028-30 but says the recommended increase of 13.6 million credits may be too much, as recent failures to clear auction volumes could indicate genuine oversupply.

Questions over waste levy

The Environment Ministry proposes to give councils greater flexibility in how they can spend the funds they collect from the Waste Levy on businesses. BusinessNZ opposes the proposal, saying there is already insufficient justification for a waste levy on top of normal landfill charges, and there are concerns that the levy funding is currently not being consistently used to develop recycling facilities or increase recycling. BusinessNZ’s submission says individual businesses should bear the cost of recycling their waste instead of having levy costs imposed across the board.