Key Insights from April Ministerial Briefing: South Island & Manufacturing

Ministerial Briefing Session Overview

On Friday, April 4, 2025, Business Canterbury hosted its first Ministerial Briefing of the year with Hon. James Meager MP, Minister for the South Island, and Hon. Chris Penk MP, Minister for Small Business and Manufacturing.

Key Discussion Points

1. Minister for the South Island Role and Priorities: Minister Meagher explained his role as an advocate for South Island issues within government, with three key priorities:

• Working towards doubling exports and increasing GDP, with the South Island creating a disproportionately high amount of GDP
• Ensuring investment in resilient and reliable infrastructure, particularly transport infrastructure
• Investment in high-quality public services, including the hospital network

He described his influence through ministerial consultation processes, where he can provide input on government decisions that impact the South Island. This allows him to advocate for connectivity, infrastructure projects, and ensuring Canterbury receives its fair share of transport funding.

2. Regulatory Reform and Compliance Costs: Minister Penk outlined the government's approach to reducing compliance costs for businesses:

• Recent reforms to the Holidays Act aim to provide more certainty for employers
• Clarification of employee/contractor status to provide greater certainty
• Reinstating 90-day trials to allow employers to take risks on potential employees
• Simplification of procurement rules for central government
• The Ministry for Regulation is conducting specific sector reviews to identify areas of excessive red tape

3. Access to Talent and Immigration: Minister Penk addressed concerns about accessing talent:

• The government recognises the need for both local talent development and access to overseas workers
• There is openness to tweaking the immigration "green list" if there are particular occupations or skill gaps
• The value of overseas workers in providing supervision and training for local workers was acknowledged
• The government is interested in exploring more nuanced approaches to immigration that could be tailored to different geographical areas and regional needs

4. Procurement Processes: Both Ministers acknowledged issues with current procurement processes:

• Small businesses are often locked out of procurement processes due to complex requirements
• Local businesses frequently end up as subcontractors to larger companies, adding unnecessary costs
• Minister Penk noted that the government is consulting on procurement rules and encouraged businesses to make submissions
• There was recognition that local government procurement is particularly important in regions like Canterbury

5. Support for Manufacturing and R&D: Minister Penk discussed ways to support manufacturers and small businesses:

• Making it easier for overseas investment to flow into New Zealand
• The Regional Business Partner programme providing advice on accessing capital
• Potential tax incentives, including accelerated depreciation for plant and machinery
• Acknowledgement of the need to compete with international counterparts, particularly noting Australia's instant asset write-off provisions
  
  

Upcoming Ministerial Briefings

• 16 APR: David Seymour and CEO of Ministry for Regulation Learn More →
• 9 MAY: Nicola Grigg on gender pay equity Learn More →
• 30 MAY: Post-budget event. Tickets on sale soon. Register your interest →