Business News

$5 billion additional costs from a capital gains tax

BusinessNZ has released an analysis of additional costs to the economy that would accompany the direct costs of New Zealand’s proposed capital gains tax. It shows compliance costs of $1.6 billion, administrative costs of $210 million and deadweight costs of $1.5 – $4.2 billion, over five years.- BusinessNZ Chief Executive Kirk Hope said the Tax Working Group’s report did not include compliance, administrative or deadweight costs, and these needed to be made explicit to enable public debate about costs before the Government made its decision on a capital gains tax. Compliance costs include Valuation Day requirements for all business assets to gain a valuation to enable the imposition of the capital gains tax. Administrative costs are IRD’s costs of collecting the tax. Deadweight costs are the costs of reduced economic output resulting from changes in supply and demand caused by the imposition of a tax. Mr Hope said the additional costs, possibly around $5 billion over five years, would add substantially to the economic impact of the proposed tax, and indicated the severe impact on business if it was introduced.

Industry Training Federation NZM Website

One week to stop apprenticeship reforms

This week is the last opportunity to make a submission on the Government’s poorly thought through apprenticeship reforms, Industry Training Federation Chief Executive Josh Williams says. Mr Williams says workplaces will end up with less control over training. The reforms propose to transfer responsibility for industry training and apprenticeships away from employers and Industry Training Organisations (ITOs) to vocational providers, including a new national polytechnic. “These reforms will cause a huge upheaval in apprenticeships and on-the-job training. Industry will lose ownership of a growing and increasingly efficient industry-run system. “That would remove choice for local employers and limit their voice. Businesses will lose access to both their local polytechnic and their industry-run ITO at the same time.” Mr Williams says. The industry training sector was surprised to see the proposals. None of the governing parties campaigned on this change at the last election. “Nobody is arguing that the system cannot be strengthened. But we should strengthen what is working, rather than double down on what is not. “In recent days the Minister of Education has been saying that with 15 percent of employers offering formal training the system is not doing well. Those 25,000 employers currently deliver more vocational education than the rest of the system combined, and twice as many vocational qualifications to twice as many learners as the Polytechnic sector. “I invite the Minister to outline which part of the reform proposal he expects will increase the number of participating employers. We can certainly see the part that risks losing the willing employers we have.” Mr Williams says that anyone with an interest in New Zealand’s apprenticeship system needs to make a submission this week. “Collectively, ITOs have spoken to thousands of our employers over the last six weeks, and there is widespread concern about this proposal. Our […]

NZ economy: cross-currents of risk

Cross-currents of international and domestic risk raise the need for sound economic risk management, according to the latest BusinessNZ Planning Forecast. The BusinessNZ Planning Forecast for the March 2019 quarter highlights international trading risks, particularly around Brexit and US-China trade. Domestic risk factors include concerns over a capital gains tax, employment relations changes, skill shortages, and Reserve Bank capital requirement proposals that would increase the cost of capital. But BusinessNZ Chief Executive Kirk Hope says the Government’s fiscal position is sound and the outlook for growth – at just under 3 percent through to 2021 – is reasonably strong. The BusinessNZ Economic Conditions Index sits at 8 for the March 2019 quarter, up 6 on the previous quarter and up 2 on a year ago. The Index tracks 33 economic indicators including GDP, export volumes, commodity prices, inflation, debt, and business and consumer confidence. The BusinessNZ Planning Forecast for the March 2019 quarter is on www.businessnz.org.nz

Photo by: Visual Culture Ltd (www.visualculture.co)

SouthMACH 2019 what’s not new!

Entrepreneur’s development lab Local Canterbury businesses and organisations have created the ‘go to’ destination at this year’s SouthMACH! Motovated Design & Analysis, Brush Technology, ARA Mechanical Engineering, The Ministry of Awesome and Fab Lab have joined forces and created a unique environment for creativity and information sharing, building new knowledge, creating alignment and developing comprehensive solutions. Forward-looking firms, incubators, entrepreneurs, and agencies that collaborate with each other to develop cutting-edge products for the marketplace. The Entrepreneur’s Development Hub foster’s the growth of our future manufacturing technology business’, introduce them to the marketplace and facilitate networks for commercial success. NZ tech startup – the lab Innovation in the manufacturing technology space is advancing at record speeds. What is new today can be old technology tomorrow. More and more professionals and young entrepreneurs are pushing the boundaries of technology finding innovative solutions and creating new applications and products. SouthMACH is the place to discover these new gems at The Lab – an incubator for all the up and coming Kiwi tech start-ups to showcase their innovative ideas to a wide professional audience of Engineers, Manufacturers, Designers, Consultants and Investors, and be in the draw to win sponsored prizes to a value of over $10,000. 12 start-ups will be given the opportunity to display their innovative product designs during SouthMACH 2019 and access advice from product development consultants as well as other participants in the Entrepreneur’s Development Hub on all aspects of project design and market entry. Entrants will be able to connect with investors and gain understanding of what is required to attract potential investment. The innovation quarter The Innovation Lab is where the latest technology in Engineering and Manufacturing in New Zealand will be displayed. Exhibitors have the opportunity to display in the Innovation Quarter as the world looks to New […]

We need evolution not revolution

Competenz responds to proposed workplace training reforms Competenz, one of the country’s largest industry training organisations (ITOs), says the government’s proposal to reform the vocational education sector and merge ITOs and polytechnics could undermine critical workplace and apprenticeship training that is vital in addressing New Zealand’s skills shortages. “The changes the government has proposed in its Vocational Education and Training review are more complex and far-reaching than we expected. It’s unprecedented. There is no doubt the VET system needs modification and funding needs to be realigned to deliver what our industries need – but these changes are too radical,” says chief executive of Competenz, Fi Kingsford. “In a time of critical skills shortages, the last thing we want is a reform that risks undermining workplace training and apprenticeship programmes.” New Zealand’s skills shortage is acute. The engineering industry alone will need another 12,000 engineers by 2022. “If we start this reform in 2020, there’s no way we’re going to hit that target. Yes, the system needs reform and yes we need to address the funding inequalities, but in our opinion, the VET changes are not the way to do it,” says Mrs Kingsford. Research has shown that for every $1million of government investment into tertiary education, the industry training system produces 306 qualified people – people who are able to immediately contribute to New Zealand’s economy – while polytechnics produce 50. “Taxpayers are getting a much better return on investment through industry training compared to other tertiary options and it is disappointing that the ITPs (Institutes of Technology and Polytechnics) have dominated the government’s proposed changes.” She says Competenz currently looks after 20,000 apprentices and trainees across 3,500 New Zealand businesses. The direct relationship between ITOs and employers is a key factor in the success of apprenticeship and workplace […]

Big Changes

What the Tax Working Group has come back with, however, is unacceptable in its current form. – Dieter Adam, CE The Manufacturers’ Network These are times of big change for us at The Manufacturers’ Network, and for our relationship with our members. We are in the process of transferring all of our activities to the EMA, and further to the Canterbury Employers’ Chamber of Commerce and the other regional business organisations, Business Central and OSEA. This will significantly enhance our ability to reach out to and represent the community of New Zealand manufacturers across the country. It will also challenge our ability to deliver our current services – and new ones we are developing, like our new Productivity Benchmarking service, which we are about to launch – to a much wider membership. These are exciting times for us! These are also challenging times for New Zealand manufacturers. Take, for example, the rapidly escalating ‘battle of the systems’ between the USA and China, which really is a battle for primacy in the world’s economy. It leaves countries like New Zealand ‘stuck in the middle’, feeling that whatever choice they make may be the wrong one, and preferring not to have to choose, of course. It’s Huawei today, which may not have much impact on our members, but what comes next in terms of companies on either side, which some of our manufacturers may be suppliers to, being hit by punitive measures? Barriers to free trade come in many guises and compared to other sectors of our economy manufacturers may have had a relatively easy ride until now. Is that about to change? At home, we see the ‘new’ government bringing in changes in many areas, or at least trying to do so. Three are of particular importance to manufacturers – […]

Kiwi technology receives Australian recognition

Cutting-edge technology aimed at minimising waste in the food processing industry has received major recognition at Australia’s largest agricultural technology event. Dr Matthew Jones, of Christchurch start-up company CertusBio, took home the top cash prize of $20,000 in the Investment Ready Pitch Tent competition of the inaugural EvokeAg event in Melbourne. The Christchurch-based innovator was one of five finalists from Australia, New Zealand and Israel. The participants pitched their agricultural challenges, solutions and business ideas over the two-day event to a panel of expert venture capitalist judges. Strong attendance of 1,100 delegates at the event showed an increasing international interest in new agtech technologies, including sensors, artificial intelligence, robotics and automation. Dr Jones’ winning concept is an automated technology that reduces industrial food waste by 40 per cent. CertusBio commercialised the solution, which was developed by the Lincoln University-owned multidisciplinary R&D company, Lincoln Agritech Ltd. Dr Jones said that with 2-3 per cent of all processed milk disappearing down the drain, the dairy industry loses a staggering NZ$12.8 billion per year globally. “CertusBio is transforming industrial food production to prevent this type of waste,” he said. “Our solution saves money for processors and helps them meet their social responsibility to safeguard the environment for future generations.” The technology includes a biosensor device that provides real-time insights into when food is wasted, a dashboard giving company managers unprecedented visibility on losses and a dedicated consultant to optimise food production. “The solution can be installed without interruption to existing processes,” Dr Jones said. “Other companies have been in the market a long time but do not provide accurate enough information to prevent this type of food waste.” Dr Jones said he developed CertusBio to combine two of his great passions – the reduction of waste and the development of great science. He […]

Predicting the future of maintenance

In 1927, Thomas Parnell set up the pitch drop experiment, which examines the viscosity of a tar-like substance by the speed at which it flows from a funnel into a jar. The test has seen just eight drops fall in as many decades and, despite the experiment being displayed in the University of Queensland’s physics department, no one has ever seen a drop fall. Just like this test, the need for factory maintenance often goes unnoticed. Here Gernut van Laak, group automation solutions leader of ABB’s Food and Beverage Program, explains how plant managers can budget for maintenance and ensure optimum efficiency for all processes. Paper to glass In terms of research and development, food and beverage is a leading industry because of its use of new, innovative technology. However, when it comes to maintenance, many companies find themselves keeping paper records. While regulation and compliance requirements historically drove these companies to work with paper, advancements in digital tools mean this is no longer the case. Unfortunately, once paper-based systems are in place, they can be difficult to eradicate. Companies become stuck in their ways, which leads them to ignore the significant cost savings, efficiencies and competitive advantages electronic systems can provide. The most important driving force for a company’s success is its employees. Today’s maintenance engineers have the computing knowledge to make the switch to digital. Providing them with a familiar interface that quickly connects employees across the organization allows staff to work faster and smarter, increasing productivity. Electronic records also eliminate time-consuming and error-prone data entries that are necessary with paper-based systems. While staff are the most important factor of any company’s success, the biggest cost of manual maintenance comes from people. Human errors that occur during manual record-keeping can result in redundant actions, rework and audits. […]

New Plymouth facing unique challenges

A CouncilMARK report issued for New Plymouth District Council says that while the region has experienced relative prosperity and growth, changes to the economy of New Zealand’s ‘energy capital’ may present challenges. The report, released by the Independent Assessment Board, delivered a BBB grade to the council, praising their extensive communication and engagement with the community and strategy in addressing risks to the region’s key industries, particularly in relation to a zero-carbon economy. CouncilMARK incorporates an independent assessment system that assesses how councils are performing and is designed to support individual councils to improve the service and value they provide. Councils receive an overall performance rating, from C to AAA from the Independent Assessment Board as well as commentary on their performance. The report found that economic risks should serve as a catalyst for further analysis on the affordability of the current service levels in response to economic changes, as well as developing better budget resilience. “The council are rightly looking at how the region’s economy can transition and grow beyond the traditional industries of energy and dairy, which have been cornerstones of the region for over 40 years,” says CouncilMARK Independent Assessment Board Chair Toby Stevenson. “It’s clear that New Plymouth residents have great lifestyle opportunities on their doorsteps, which the council and staff are seeking to grow. They’ve done a great job of consulting with the community, who have called out zero waste, three waters, the CBD and the Walkway as priority areas.” “Having a tighter focus on a smaller number of goals could assist the council with making the most of opportunities. The council have good operational strength across their roading and three waters networks, and their day-to-day services could be enhanced by similar planning and performance measures.” LGNZ President Dave Cull praised the council for undergoing […]

Overworked and underpaid: the revival of strikes in New Zealand

Last year, more than 70,000 workers walked off their jobs in New Zealand – the highest number of people on strike since the late 1980s. The reasons for the strike wave are political and economic. Strikes were supposedly something of the alleged “bad old days” of the 1970s. But during the first year of Aotearoa New Zealand’s Labour-led government, a strike revival ensued. At least 70,000 people, if not more, walked out last year. Strikers included nurses, teachers, bus drivers, port workers, fast-food workers, retail workers, steel workers and public servants. While official figures for 2018 have not been published yet, this represents the highest number of people involved in strikes since the late 1980s, and possibly the most working days not worked due to stoppages since 1992. For many strikers, it represents the first time they have participated in walkouts. An unexpected strike wave? According to some, this strike wave was not supposed to happen. Trade unions were thought to be too weak to strike. One employment relations textbook asserted in 2009 that “strike action is seen increasingly as an inefficient and outdated strategy”. The Public Service Association (PSA) secretary Erin Polaczuk recently argued that as unions today have become more feminised and mature, they have increasingly avoided “stupid oppositional behaviour”. Nevertheless, women have led the strike wave. Women made up most participants in most strikes, and female union delegates were often at the forefront of disputes. Indeed, stoppages have mostly occurred in majority female occupations such as teaching, nursing and government sector work in general. It is as difficult to predict strike waves as it is to predict recessions. This is because both are the result of many complex causes, including the unpredictable nature of human agency. This wave is no exception. Political causes Political factors help to partly explain the stoppages, but cannot […]

«‹ 70 71 72 73 ›»

News Ticker

Business News