New government must save economy and enable growth, business leaders say

Business leaders are demanding that the next government have a clearer plan to manage the coronavirus outbreaks, asking the parties to explain how their recovery policies will avoid “unmanageable debt.”

It comes amid concern over the government’s plans to boost the economy, with two-thirds of Kiwi businesses, and seven out of 10 in Canterbury, saying they don’t think they have a coordinated plan of action focused on improving economic performance. .

Policies that enable innovation, productivity and economic growth will be critical to New Zealand’s post-Covid shift from survival to recovery, said Leeann Watson, Executive Director of the Canterbury Chamber of Commerce for Employers.

Policy changes must be “focused beyond the next electoral cycle” to ensure that the country is seen as a “leader in global economic recovery, as well as in our public health response.”

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The chamber has sent each political party its “wish list,” drawn from a survey of 1,193 companies across the country, including 280 in Canterbury, on the government’s handling of the pandemic and the policies they want to implement.

While 71 percent said the government’s handling of the initial shutdown and its aftermath were handled effectively, the directive calls for greater clarity and systems to handle future regional outbreaks, warning that challenges related to testing, quarantine and decisions exemption must not be repeated.

Businesses are calling on the new government to keep most of the economy open as safely as possible in the event of a new Covid-19 outbreak and to have a chance to grow the country’s economy, instead facing higher taxes.

“Businesses are aware of the potential for unmanageable debt and are concerned that a prolonged period of financial support could mean significantly higher taxes in the future,” says the board.

Includes an eight-point post-election wish list:

• Prioritize the restoration of economic performance, with the consequent benefits that flow to companies, workers and communities. Almost 90 percent of those surveyed said that economic well-being should be the government’s top priority.

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• A plan to reopen the borders safely so that visitors and skilled foreign workers can help the economic recovery.
• Continuous investment in infrastructure to support businesses and communities and provide employment. Seventy percent of those surveyed, 65 percent in Canterbury, said central and local government should borrow to finance infrastructure for recovery and growth.
• Update the rules on resource management, already promised by both Labor and National, to allow business growth rather than hinder it.
• Reduce regulation, particularly for small businesses, that restricts freedom to operate, treats employers unfairly, and imposes unnecessary barriers.
• Build the skills companies need, encourage them to hire apprentices and provide more training, and focus on applied skills in science, technology, engineering, and math.
• Maintain the ambition for sustainability as customers and business prospects depend on it
• Ensure that new legislation on land and water management is fit for purpose.

Watson said the board was trying to send a clear message: “Create good regulation and get out of the way for business.

“We really want the government to focus on creating policies and processes that create a more business-friendly environment.

“Right now… they are very obsessed with just adding more and more regulation, rather than really looking at how to cut it and allow companies to invest in innovation, grow, take calculated risks and just be left to get on with it.

The Deloitte-Chapman Tripp-BusinessNZ election poll was conducted in June.