NZ has reached a fork in the road - and we have to decide on our  approach to future immigration settings, according to a BusinessNZ-Sense Partners report on workforce supply. With improved immigration settings we could have a working-age population close to 4 million within the next 25 years, but under current settings that number would be below 3 million. The report shows without policy changes, NZ’s tightest-ever labour market will get even tighter in future. Sufficient immigration is critically needed to boost the economy, BusinessNZ CEO Kirk Hope said.

The proposed pumped hydro scheme at Lake Onslow has a huge price tag for a far-off scheme, the BusinessNZ Energy Council says. The Govt yesterday announced it would move to the next stage for the NZ Battery Project. A backstop for dry years when hydro lakes run low, the structure would store water in a high basin for spilling into a lower reservoir when more power is needed. BEC’s Tina Schirr says a more timely, decentralised, and cost-appropriate system would be preferable.

This week the Govt deferred a work project to get clearer distinctions between employees and contractors. The working group, including BusinessNZ and the CTU, looked for solutions in the context of cases where someone engaged as a contractor would claim they were actually an employee and therefore eligible to make an unjustified dismissal claim against their claimed employer. High-profile cases include Bryson v Three Foot Six Ltd and Uber. BusinessNZ’s Kirk Hope says businesses need more certainty around the employee/contractor distinction, and they hope the work might resume in future.

A recent High Court judgment ruled that a Government Policy Statement (GPS) doesn’t have the status of a law or  contract, raising the question whether state agencies actually have to implement GPSs. Transport lobby groups argued Waka Kotahi should implement emissions reduction policies, a stated priority under the land transport GPS, but the Court ruled against this. The ruling raises questions about just how directive GPSs are for state agencies. GPSs of interest to business include those on housing and urban development, electricity governance and highly productive land.

Advanced technology and processes offer immense opportunities for economic growth and more investment in tech is a priority, according to the Advanced Manufacturing Industry Transformation Plan released this week. NZ’s manufacturing sector has relatively low capital investment in advanced tech compared to international benchmarks, and accelerated depreciation policies for new plant, machinery and equipment would be a key incentive to help kickstart that investment, EMA CEO Brett O’Riley said.