‘Here and now’ initiatives focus
‘‘... lack of clarity and detail with these reforms has led to unnecessary uncertainty in what were already challenging times for all communities.’’
Nigel Davenport
Venture Timaru CEO
South Canterbury business leaders would like to see a focus on small to medium-sized businesses and ‘‘here and now’’ support initiatives in the upcoming Budget.
The Government will announce its 2022 Budget on Thursday. Venture Timaru’s chief executive Nigel Davenport said he would like to see clear ‘‘here and now’’ support initiatives announced.
‘‘Whilst the country has been challenged with the Covid pandemic in recent years, we have also had to cope with a variety of multi-year reforms announced and progressed across health, local government, and water to name a few,’’ Davenport said.
‘‘In many cases, lack of clarity and detail with these reforms has led to unnecessary uncertainty in what were already challenging times for all communities.
‘‘We need to see a budget that focuses on the here and now – matters that are affecting New Zealanders, our businesses, and communities today such as cost of living/inflation, mental health & wellbeing and social services support, supply chain disruptions and the unprecedented tight labour market.’’
Davenport said he was keen to see what levers the Government can pull to support and enhance these areas of critical importance.
‘‘An example of what has worked has been the direct into business funding support of the recently extended Apprenticeship
Boost and Regional Apprenticeship Initiative that have both been well received and valued by business.’’
He added that there is also a real need to properly support and increase the prominence, capability and consistency of careers advice and guidance within the secondary school system.
‘‘Through our MyNextMove initiative, partnering with local schools, industry and training providers, we see first-hand how important it is we do all we can and more to help inform, support and excite our future workforce on their life post school.
‘‘Tagged and targeted funding support into this area is well overdue and is, in reality, the key foundation off which both our future workers will be work ready and the current vocational education reforms will succeed or fail.’’
South Canterbury Chamber of Commerce chief executive Wendy Smith said small to medium-sized business owners are concerned the Government has lost sight of them and at how difficult it has become to run a business over the past few years. ‘‘The focus needs to be on how the Government can work with businesses to relieve the impact of rising costs,’’ Smith said. ‘‘There
needs to be a business tax break so that the businesses can absorb the minimum wage increases and the costs of additional leave.
‘‘The effect of inflation, shortage of workers and unreliable supply chains is quite crippling in some areas. With spiralling inflation and the uncertain conditions businesses will be looking to the Government for recognition and support.’’
Smith said the ongoing theme of centralisation is also likely to have a negative impact on the regions, from the polytechnic sector, to Three Waters and the district health boards. ‘‘So some clarity of how areas like South Canterbury will continue to be supported by the Government is essential.
‘‘A reduction in the company tax rate, lower road user charges, and a removal or lowering on the tariff of many imported goods would be a great place to start.’’
‘‘The South Canterbury economy in the main has fared extremely well, we have very low unemployment, our GDP growth is solid, and we continue to thrive on the backbone of our traditional agricultural markets and added value processing plus a range of innovative and clever industries.’’
However, Smith said there is a level of uncertainty and some industries are struggling to recover from the impact of Covid-19.
‘‘So going forward, businesses need certainty, businesses and workers need to keep wages and revenue in their own pockets and not to get hit by additional costs and compliance brought in by Government,’’ she said. ‘‘This is not the time to introduce insurance/job taxes or to bring Fair Pay Agreements back to the table that will limit flexibility and create uncertainty.’’
She said the figures in the Budget will also require detailed analysis to determine if this is new spend and new initiatives or simply meeting rising costs.