Fast-track improvements

Earthquake risk management 

BusinessNZ welcomes the Govt’s plans for an early review and extension to deadlines on owners of buildings deemed earthquake-prone. The rules for such buildings are causing significant economic stress to businesses in many parts of NZ, and a regulatory approach that better distinguishes between levels of risk is badly needed, BusinessNZ’s Catherine Beard says. BusinessNZ has consistently recommended a more appropriate approach to earthquake risk management.

Productivity decline

StatsNZ data shows NZ’s labour productivity fell by 0.9% last year, the largest fall since the Global Financial Crisis, while NZ's multifactor productivity fell by 2.2%. BusinessNZ CEO Kirk Hope says removing red tape would help improve business productivity, along with getting greater uptake of digital technology, as businesses with digital technology can be far more productive than those without. “It’s significant that multifactor productivity also declined last year, as this measure includes inputs such as technological progress, and further underscores the need for NZ businesses to digitise their processes as much as possible.”

Changes to migrant rules

BusinessNZ supports recent changes to the Accredited Employer Worker Visa – including a new English language test, reduced stay times for lower-skilled roles from 5 to 3 years, and requiring employers to engage with Work & Income for approval to bring in a lower-skill worker – however the immigration system needs to recognise that international skills are needed at all levels, particularly when Kiwis are leaving NZ in record numbers, BusinessNZ CEO Kirk Hope says, and a wider review of post-Covid immigration policies is also needed.

Energy security risk

NZ’s ranking for energy security is still in the world’s top 10 but has declined somewhat due to gas and electricity supply risks, BEC’s Tina Schirr says. “There’s still a need to restore business confidence to invest in utilising our existing gas reserves and in developing further electricity generation. These are required to relieve increasingly high electricity and gas prices for business users and to smooth our transition to a more sustainable energy system.”