What does the Coalition Government mean for your business?

The Government now has a substantial role to play in rebuilding momentum and certainty across the economy – and time is of the essence. Last week, we saw how the Coalition Government was going to be made up and what was promised in the coalition
agreements, and this week we have a finalised 100-day plan which we aim to summarise below.

There is significant overlap between the Act-National and the NZ First-National Coalition
agreements, and National’s policy programme announced in the lead up to the election.
The National Party’s priorities agreed to be progressed in this term are set out in its eight-point commitment card, Fiscal Plan, Tax Plan, 100-day plan, and 100-point economic plan.

This analysis does not cover every policy, just those which we think are most important or
where there has been agreement with the coalition partners that we think are pertinent to
business and/or the economy.

Of particular interest in the 100-day plan:

• Work is immediately stopping on the Income Insurance Scheme
• Work is immediately stopping on Industry Transformation Plans
• The RBNZ will have its dual mandate removed and focus only on inflation
• Fuel tax increases will be cancelled
• Fair Pay Agreement legislation will be repealed
• Legislation to restore 90-day trials will be introduced
• Work will start on improving the quality of regulation
• Work will start on commissioning a National Infrastructure Agency
• The new RMA will be repealed and replaced with the 1991 Act, with additional fast-tracking options included for development
  
  

13 NEW ROADS OF NATIONAL SIGNIFICANCE (NZ FIRST)
We will want to ensure that this includes a significant investment pipeline in the South
Island and Canterbury, which is well signaled so businesses can appropriately gear up to
get the work done. A good starting point would be a commitment to complete works on
the Ashburton Bridge and Woodend Bypass. Over time, we would like to see four lanes
from Waimakariri to Ashburton – a key freight route in the South Island.

$1.2B REGIONAL INFRASTRUCTURE FUND (NZ FIRST)
Again, we would like to see projects in Canterbury funded in line with our contribution to
GDP. We are a powerhouse of the New Zealand economy and to invest in their own growth
and productivity, businesses need to know that the infrastructure will be there to support
it.

MAINTAIN APPRENTICESHIP BOOST (NZ FIRST)
The Canterbury Chamber has advocated in favour of this programme and its success for
some time and welcomes it being included in the new Government’s policy platform –
however, further work needs to be done to ensure that learning standards align with the
skills needed in our workforce, and employers need to play a part in those discussions.

MINISTER OF REGULATION (ACT)
Concern about rising compliance costs remain, and we support the concept of sectoral
regulatory reviews – however, we will want to see a particular focus on red tape reduction
for small businesses. A simplified Holidays Act, Health and Safety in Work Act and
Resource Management Act should be the priorities as they are particular barriers for our
members.

SINGLE MANDATE FOR RBNZ (ACT)
Across the BusinessNZ Network we have advocated for this in the lead-up to the election
as we believe it will speed up the return to manageable levels of inflation and reduce the
costs of doing business.

REPEAL FPAS BY CHRISTMAS (ACT)
The immediate removal of FPAs will help ease uncertainty and return employment
relations to a position of mutual trust and collaboration between employers and
employees. This is particularly good news for SMEs who would have been caught up in the
unworkable bureaucracy of the Fair Pay Agreement processes.

EXPANDED 90-DAY TRIALS FOR ALL BUSINESSES (ACT)
This will allow more flexibility for employers and help reduce labour market shortages. The
90-day trial provides those on the fringes of the labour market with opportunities for
employment.

REMOVE MEDIAN WAGE REQUIREMENTS FOR VISAS (ACT)
Labour market constraints are persisting despite recent progress, and at the same time,
businesses are dealing with skyrocketing costs. Employers tell us that current median
wage requirements create distortions in their workplace, and many migrant workers would
be happy to accept market rates. This would open the settings and allow employers
access to a larger workforce while at the same time minimising the additional costs in
dealing with the immigration system.

MINISTER OF SMALL BUSINESS AND MANUFACTURING
We have been calling for better representation for manufacturers for a long time – they
underpin a huge proportion of the supply chain and are very important for our regional
economy here in Canterbury. This is certainly a win for the Canterbury economy.

COMMITMENT TO INCREASING THE MINIMUM WAGE EACH YEAR (NZ FIRST)
The minimum wage has increased more than 40% since 2017 - adding a huge amount of
cost pressure to employers without any warning. We will advocate for a minimum wage
setting process which is depoliticised, transparent and more predictable for employers,
which could include setting up an independent minimum wage commission - used
successfully in the United Kingdom.

SIMPLIFYING PERSONAL GRIEVANCES (ACT)
The Government will consider simplifying personal grievances and in particular removing
the eligibility for remedies if the employee is at fault, and setting an income threshold
above which a personal grievance could not be pursued. We will advocate for employers
and understand that the balance in employment relationships need to be based on mutual
trust and goodwill.