A week in advocacy 

Bubbles to merge?

Terms for a trans-Tasman bubble are becoming clearer and could start with travel between NZ and the states of NSW and Victoria first.  The expert group working on the bubble says those states that are ready should join the bubble first, hopefully in time for school holidays in July.  A trans-Tasman travel bubble would be a major boost to tourism and business activity in both NZ and Australia following the Covid lockdown.

What Aussies think

A new travel survey indicates Australians’ keenness to come to NZ as soon as possible.  It shows over 75% of Australians are aware of the proposed trans-Tasman bubble and around 40% expect to travel internationally in the next year, with NZ the most likely destination.  It shows millennials, males and high income earners are most likely to come.  Before Covid hit, there were about 3 million trans-Tasman travellers spending around $3 billion a year.

Keep conferences competitive

If trans-Tasman travel opens up soon, rapid steps should be taken to ensure the international competitiveness of the NZ conference and training sector.  BusinessNZ recommends zero-rating GST on conferences and training supplied in NZ to non-resident businesses, to help the NZ conference industry compete strongly internationally.  This was one of several recommendations by BusinessNZ to IRD’s recent GST policy consultation. 
 

Infrastructure centre stage

Work is under way to fast-track infrastructure projects for post-Covid recovery.  The BusinessNZ network recommends Govt should give major constructors and NZTA self-consenting powers for smaller projects; bundle together smaller contractors and projects to manage workflow and help involve more small contractors; and use an open book approach for quick appointment of lead contractors.  This week BusinessNZ hosts a webinar on developing the workforce or the expected surge in infrastructure work, with training leaders and Fletcher Construction, Naylor Love and Fulton Hogan CEOs.

Looking out for subbies

Meanwhile the Govt is seeking to clean up subcontractors’ payments, in preparation for the coming big infrastructure build.  It will amend the Construction Contracts Act to provide more rules around subcontractors’ retained earnings to prevent firms dipping into retention money to use as working capital, and requiring those holding retention money to issue a transparency statement stating how much is being held and where - a good development in subbies’ ongoing fight to be paid.

Vague regulation for forestry

Business is concerned at another example of rushed law-making leading towards more regulation, this time in the forestry sector.  A Forests Amendment Bill aims to help NZ wood processors compete against aggressive log purchasing by overseas companies, but industry players say the Bill would instead introduce vaguely-specified new powers, imposition of costs and compulsory registration by a new Forestry Authority.  BusinessNZ is concerned at the potential for regulations to be developed under this legislation without clarity as to what the regulations would entail.