A week in advocacy 

The hit continues

Business continues to feel the impacts of the spread of coronavirus in overseas markets.

Tourism and hospitality businesses are seeing cashflow drying up, forestry businesses are laying off workers with the decline in export of logs, and business travel has been curtailed.

Profit guidance by listed companies has so far shown declines, while Briscoes, The Warehouse, Fonterra and Synlait are due to release financial results next week.

Govt business support

More detail on support for affected businesses is due next week.  The Govt has promised tailored support for firms in the worst-hit sectors and regions.  Meanwhile in Australia the support includes up to $25 k for small businesses, up to $21 k for each apprentice employed, and instant asset tax write-offs.  Finance Minister Grant Robertson is in communication with the Australian Treasurer over business support in the wake of  the virus.

Advice on sick leave

How to use sick leave in different coronavirus scenarios could be confusing, with many possibilities - e.g. if a worker is sick with coronavirus, or if they are diagnosed with it but aren’t sick, if they can work from home, if they can’t work from home, if they have family members diagnosed with it, if the employer wants the worker to come to the workplace but the employee doesn’t… A govt website contains a guide to using paid sick leave and unpaid leave in different circumstances.

Protect safety and lawful businesses

Non-interference rules should stay, says BusinessNZ.  The Govt is considering removing rules requiring protestors to stay 500 metres from offshore rigs or vessels.  The rules in the Crown Minerals Act protect against dangers near working vessels in deep seas.  Last week protestors had to be airlifted from a rig in Cook Strait in dangerous conditions.  BusinessNZ says the Govt should continue to protect the rights of lawful businesses to develop resources and safeguard safety at sea.

Advocate for sustainable business

Sir Rob Fenwick, co-founder of the Sustainable Business Council, leaves a great legacy for business, says SBC Executive Director Mike Burrell.  “Sir Rob, a pioneer in product stewardship and organic waste recovery, influenced many businesses to take sustainability seriously.  He succeeded in his mission to make sustainability a mainstream issue for business.”

NZ food trusted overseas

Latest F&B stats show an industry poised for growth.  Investor’s Guide to the NZ Food and Beverage Industry highlights the industry’s success in gaining foreign investment.  Food and beverages are currently 46% of NZ exports, earning over $71 b a year.  NZ’s fertile land area, water resources, biosecurity controls, and agri-foods science & research bring potential for more growth.  NZ foods are trusted in overseas markets – a good foundation for growth once the coronavirus pandemic is over.

Not enough tech, too many zombies

There’s not enough tech in NZ business, and zombie firms are part of the problem.  The Productivity Commission’s latest report says technology boosts productivity, but the capital required to buy it isn’t going to the best firms.  Instead, it’s tied up in zombie firms – less successful firms that hang around instead of exiting the market.  The Productivity Commission makes recommendations for overcoming the zombie problem and helping get more tech in NZ business.

Bonfire of (business) regulations

The National Party will campaign on cutting regulation, pledging to cut 100 unnecessary regs in its first 6 months and cut two regulations for every new one introduced.  Immediate cuts would include those on overseas investment, IPOs, biotechnology and employment relations.  BusinessNZ says the policy should also include rules around writing regulations in the first place, and require more rigorous cost-benefit analysis for new legislation.

Sharing experiences on coronavirus

BusinessNZ members are invited to sign up to a closed Facebook group for members to share experiences, advice and issues around coronavirus.  The group now has 500 members and is becoming a key channel of communication for NZ businesses seeking to manage coronavirus risk.