Saving our standards - an advocacy win

A coalition led by the BusinessNZ Network has successfully lobbied for government funding to maintain crucial industry standards, ensuring New Zealand's continued participation in joint Australia-New Zealand standards development.

The Ministry of Business, Innovation and Employment (MBIE) has now agreed to use funds from its Building Levy to support standards related to building, construction, and health and safety. This decision comes after persistent advocacy efforts by BusinessNZ and various industry associations.

Industry standards are essential for product safety, regulatory compliance, successful exporting and importing, efficiency, and consistency. All manufactured items must adhere to recognised standards, and all trade training in New Zealand is linked to these benchmarks.

The Australia-New Zealand Joint Standards are particularly crucial given the close economic ties between the two countries. Australia is New Zealand's largest market for manufactured exports, making harmonised standards vital for cross-Tasman trade.

Since 2016, New Zealand's ability to contribute to joint standards with Australia has been threatened due to a lack of funding. While Australia receives government support for standards work, New Zealand has relied on a user-pays model, which has proven insufficient in the small market.

The funding shortage led to more than 500 joint standards becoming solely Australian, leaving several New Zealand industries with outdated or invalid standards. This situation particularly affected the construction and building sectors, where safety could have been compromised.

BusinessNZ initiated the campaign last year by inviting affected industries to join in a collective request to MBIE for funding. The persistent representations finally yielded results, with MBIE agreeing to allocate funds from the Building Levy.

This decision allows work on joint standards to resume, benefiting New Zealand industries that can now operate with up-to-date, valid standards. The move is expected to enhance safety, particularly in the construction and building industries.

"This successful outcome represents a triumph of the collective effort and persistent advocacy of various industry groups, the leadership of Business New Zealand, and the industry bodies that collaborated to find solutions," said the CEO of Master Electricians NZ.

The funding agreement marks a significant shift from the previous 100% user-pays model, which had proven unsustainable in New Zealand's small market. It aligns more closely with the Australian approach, where standards work receives some government support.
While the immediate focus is on building, construction, and health and safety standards, the success of this initiative could pave the way for similar funding arrangements in other sectors.

The BusinessNZ Network's achievement highlights the power of collective action and persistent advocacy in addressing critical industry issues. It also underscores the importance of maintaining international partnerships, particularly with close economic allies like Australia.

As New Zealand industries adapt to the renewed joint standards process, the impact of this funding agreement is expected to ripple through various sectors, potentially boosting trade, improving safety, and enhancing overall industry performance.