Terminate "Fair Pay Agreements"

The Government has released the details for “Fair Pay Agreements” to start next year, along with financial support for the CTU and BusinessNZ to coordinate the planned system.  But BusinessNZ CEO Kirk Hope says employers are not interested in compulsory nation-wide pay agreements, irrespective of funding offered:  “They would take away business’ right to a say over wage-setting and would lead to labour disputes and strikes.  They are contrary to international law which says collective agreements should always be negotiated voluntarily.  Business cannot support the plan to implement them.”

The Budget & debt

Government financial accounts released this week show results that are better than forecast but Crown debt levels at 33% of GDP are of concern given Government borrowing is forecast to grow by more than $100 billion.  This month’s Budget will re-prioritise nearly $1 billion of Covid borrowing that is so far unspent.  BusinessNZ says the Budget should help NZ navigate out of Covid’s impacts with a strong focus on debt repayment and less focus on finding new ways to spend borrowed money.

Business & house lending moves

Business lending has dropped over the last year, with loans for business down 5.2% and agriculture down 1.3%.  It shows business reluctance to take on debt given Covid-induced uncertainty, and may indicate some businesses downsizing because of Covid, with less need to borrow.  Loans for housing have gone up by 9.7% while house prices have increased 24%.  The Reserve Bank says much lending has high debt-to-income and loan-to-value ratios, and non-business borrowers are now vulnerable to a rise in mortgage rates.

Skills gap survey

Skill shortages are still a number one concern for many firms.  Key gaps exist in IT, engineering, sales, customer service and more.  EMA is surveying businesses to find out what roles they are currently unable to fill and what their biggest skill gaps are.  The results will be given to policymakers to help find solutions around immigration, skilled migrant workers, training and Government support.  Please take the one-minute survey covering any roles that you are currently unable to fill.  The survey is here.

Local govt review

The Local Government Minister has announced a forthcoming review of local government, looking at what councils do and how their activities are funded.  The review matters to business because business ratepayers pay close to half of all rates supporting local government functions.  Businesses are also concerned that council-supplied infrastructure is substandard in many areas, with roading and other transport constraints, aged water infrastructure and leaky pipes, and inadequate waste disposal and recycling.  BusinessNZ will contribute to the review on behalf of business.

Pre-Budget lunch

The BusinessNZ Major Companies Group and Fujitsu invite you to a pre-Budget lunch with Prime Minister Jacinda Ardern at Eden Park in Auckland next week. The PM's speech will provide business leaders with an opportunity to hear the Prime Minister's thinking for the Budget 2021 and an opportunity for dialogue with other businesses and with senior ministers.  Registration for the pre-Budget lunch, 13 May, is here.  

Wellington Seminar coming

The Wellington Seminar is a unique opportunity for companies or organisations to develop advocacy skills and advocate on issues important for business.  For business leaders or senior staff, the seminar includes training in making powerful submissions, taking part in select committee inquiries and presenting a business case to policymakers and media.  The 2-day seminar is on 31 May-1 June; registration details are here.