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Kiwi businesses need to feel the love

Almost 1000 New Zealand-owned and operated businesses have signed on to the ShopKiwi campaign, which today launched a new website. With Kiwi manufacturers reopening safely, the ShopKiwi website has provided them with an avenue to sell products directly to consumers online. These businesses have stock ready to leave their doors under Alert Level 2. ShopKiwi manager Dane Ambler says now is the time for New Zealanders to act on calls to support locally owned and operated companies as they start to reopen. “Without support, some of these businesses simply will not make it through the Covid-19 fallout. Buying from these businesses will keep the economy rolling and most importantly keep Kiwis in jobs while employment ticks towards record highs. “As the wage subsidy comes to an end, the most important thing for these businesses will be getting money into the till from customers. “A recent survey of more than 1300 Kiwis indicated they are more likely to shop locally once the lockdown is lifted, now is the time to translate that thought into action.”

New Zealand’s pandemic budget is all about saving and creating jobs. Now the hard work begins

Jonathan Boston, Professor of Public Policy, Te Herenga Waka – Victoria University of Wellington Budget 2020’s focus on “jobs, jobs and jobs” is understandable, commendable and vital. COVID-19 poses the largest threat to paid employment since the Great Depression almost 90 years ago. The number of people receiving Job Seeker Support (Work Ready) – the main benefit available for the unemployed – rose almost 50% between February and early May, from about 80,000 to 120,000. That is a crisis in anyone’s language. Paid employment is not only important economically, it is about social and psychological health. This is reflected in a long-standing cross-party commitment to high employment levels and a high labour market participation rate. Significant and protracted unemployment serves no good purpose. To combat this, the budget aims to protect existing jobs where possible, generate new jobs through targeted public investments, and ultimately create the conditions for a return to sustainable job growth. But worse is still to come. Treasury is forecasting an unemployment rate of close to 10% before year’s end. Given the unprecedented impact of the pandemic, however, all such forecasts are highly conditional. So can the 2020 budget help avoid mass unemployment? Are the measures announced sufficient to address the scale and distinctive aspects of the current crisis? A little context helps in answering such questions. New Zealand started from a good position By OECD standards, New Zealand entered the pandemic with a relatively low unemployment rate. In March 2020 the official unemployment rate was about 4.2%, slightly up on 4.0% in December 2019. This compared with pre-pandemic unemployment rates of around 4.0% in the UK, 5.2% in Australia and 7.4% in the Euro zone. Fortunately, too, the government’s comprehensive wage subsidy scheme has so far limited the spike in unemployment. By contrast, the US unemployment rate rose dramatically from 4.4% in […]

Balance about right in Rebuilding Together budget

The EMA says the Government’s budget amidst COVID-19 was always going to have to strike the right balance between spending and debt levels to regenerate the economy for the benefit of all. Chief Executive Brett O’Riley believes it does provide a first step in doing this, but is keen to continue to work together with the Government on long term economic recovery and additional sector-specific plans. “We are particularly pleased with the $4 billion business support package, the $3b for shovel-ready infrastructure projects, and the focus on innovation and digitisation and vocational education and training,” he says. “For businesses who have suffered a 50 per cent downturn since this time last year the extension of the wage subsidy by eight weeks will be welcome news, and for SMEs $10m target for them to improve their e-commerce offering and additional incentives and grants to encourage e-commerce adoption will be crucial.” The EMA says the combination of immediate and ongoing support, especially in the digital space, does help especially in the short term. “We know it’s hard for businesses, especially SMEs to look at innovation when they’re struggling to stay solvent, but now is the time to capitalise on the things they’ve had to do differently and use the Government’s support to do things better into the future,” says Mr O’Riley. The EMA believes that increased support for R&D including the short-term temporary loan scheme to incentivise businesses to continue with plans, with the help of one-off finance administered by Callaghan Innovation, is the key for many to be able to pivot and regenerate. “We’re also pleased to see the $216m boost to NZTE to expand its scope of support to businesses, particularly with digital services,” says Mr O’Riley. And although positive economic indicators are set to take a plunge in the […]

Covid – 19 and Peter Beck

Rocket Lab is a private American aerospace manufacturer and smallsat launch service provider with a wholly owned New Zealand subsidiary. Rocket Lab has received almost $2.9 million in wage subsidies from the Government for 412 staff. So Peter Beck saying that the small businesses in danger of falling over at this time should be allowed to do just that is a bit rich. Peter needs to remember that the economical situation these businesses find themselves in are to some extent the result of the Government putting the country into an economic lockdown. Maybe some businesses before the virus were not wrapped in finance – like Rocket Lab – but they have been around for a long time and celebrated some level of economic success.

Fast-track consents necessary for Covid 19 recovery

Fast-tracking resource consents for critical infrastructure and development projects is a pragmatic and welcome government response to assisting the Covid 19 recovery process says Resource Reform NZ- (RRNZ), a coalition of business and environmental interests. The Minister for the Environment David Parker has today announced fast-track amendments to the Resource Management Act to better enable economic recovery from Covid-19. The temporary amendments to the Act will be made in June. RRNZ supports key elements in the proposed amendment bill which include rapid approvals for selected public and private sector projects and a commitment to retain environmental bottom lines. Often lengthy public consultation processes will also be put on temporary hold while the amendments place Central Government requirements for the economic rebuild as a main driver for consents. RRNZ says the Minister’s announcement recognises the need to remove some of the structural issues in the RMA, that the Group identified in its work programme since 2016, which have proved incompatible to the need to provide a faster infrastructure response to accommodate previous rapid growth. “They are the same issues that would prevent a rapid start to the Government’s programme to accelerate shovel-ready and other infrastructure projects as it seeks to ramp up activity and employment in the infrastructure sector post Covid 19,” the RRNZ Group says. Under the proposed amendments selected public or private projects will go through a bespoke approvals process with the Minister acting as gatekeeper. The RRNZ group says it looks forward to seeing the criteria he must apply as these will be critical to ensure projects are transformational, provide the necessary high levels of employment and meet longer term strategies and goals for infrastructure provision in New Zealand – three waters projects are one example. The commitment to retain environmental bottom lines is also critical as many […]

Canterbury Employers' Chamber of Commerce - Chief Executive Leeann Watson

Government package to support immediate cashflow needs of small business

The Government’s announcement today of interest free loans for a year to small businesses impacted by Covid-19, together with the tax reforms providing more than $3 billion in tax relief will provide much needed support for small business, which has been a focus for advocacy over the last few weeks, says Canterbury Employers’ Chamber of Commerce Chief Executive Leeann Watson. The Small Business Cashflow Loan Scheme will provide assistance of up to $100,000 to firms employing 50 or fewer full time equivalent employees. The scheme will provide $10,000 to every firm and in addition $1800 per equivalent full time employee. Loans will be interest free if they are paid back within a year. The interest rate will be three per cent for a maximum term of five years. Repayments are not required for the first two years. “These announcements will provide welcome relief to many businesses across all sectors. It shows that central Government is receptive to the needs of businesses during this incredibly challenging time, with tax and cashflow both key concerns for businesses. “Crucially, the urgency in which these packages have been developed and passed through Parliament is important to ensure businesses are supported when they really need it. “We know that the cost of compliance is significant for small business and in addition to covering their existing overheads they now face increased costs of meeting strict health and safety requirements under COVID-19. “Cashflow has always been a pain point for businesses, particularly small businesses, which has been compressed by the significant reduction in trade for most businesses during lockdown and during Alert Level 3. By increasing their access to cash, the Government is greatly increasing their ability to not only survive but thrive. “We applaud the Government for demonstrating bold, decisive leadership to support businesses during this […]

Time for economy to move to Alert Level 2

The EMA says the economy needs a return to Alert Level 2 on May 12 to get business back to work and kick-start the country’s economic engine. Chief Executive Brett O’Riley says what this week at Alert Level 3 has shown is that the vast majority of businesses are taking a responsible approach to health and safety practices in the workplace and we can expect that to continue under Level 2. “Unless there’s a compelling reason not to, the Government should announce on May 11 that we are moving immediately from Alert Level 3 to Alert Level 2,” says Mr O’Riley. He says that any extra time at Alert Level 3 will sink a number of businesses that have only just been holding on, with further detrimental flow-on effects for their people and the economy. “We’ve already seen a number of businesses going to the wall and a significant jump in the numbers of unemployed – we know that more businesses are certain to fold.” “With no sign yet of any cashflow assistance package from the government we’ll see many more SMEs and some larger companies make the tough decision to close if there is a further extension of Alert Level 3 restrictions, says Mr O’Riley. “The health arguments have rightly and understandably held sway in beating back this virus and businesses have complied well with Levels 4 and 3. It’s now time to trust them to continue work within Level 2 guidelines, allowing the bulk of the economy to get back underway while maintaining the required vigilance under the health guidelines.” “But it’s time for business to start recovering its health.” A quick online survey of EMA members showed that only eight per cent of those who took part did not have a health and safety plan in place […]

Movac invests in Revolution Fibres to scale global growth

Auckland-based Revolution Fibres has raised $6m in a Series A funding round led by Movac, New Zealand’s most experienced technology investment firm. Founded in 2009 by Iain Hosie, Simon Feasey and Michael Perrett, Revolution Fibres has developed a unique technology to produce electro-spun nanofibres for use in a wide range of applications, such as filtration, skincare, sound absorption and composite reinforcement. Revolution Fibres has 15 employees and achieved early sales traction in several markets. Movac Partner David Beard comments “We have been targeting an IP-based business for Fund 4 for some time, and we were compelled to invest in Revolution Fibres because it had made a significant transition from R&D into scale volume manufacturing. With its applications spanning a diverse set of industries, it can adjust quickly and take advantage of a rapidly changing environment. We are delighted to have led this round which has included a diverse set of investors from NZ, US and Asia.” Revolution Fibres Chairman Andrew Turnbull comments “Iain and the team at Revolution Fibres have built a fantastic platform technology which is now ready, with the right team and funding, to be scaled. We’re very focussed on what we want to do with the business and sought an investor who understands what it takes to build a global deep tech business from New Zealand. Movac’s investment style and their experience in helping to grow value in companies with deep intellectual property meant a lot to us. Most importantly, there’s also a strong fit in terms of approach and aspiration.” The funding will be used to accelerate commercial opportunities in key offshore markets, and to invest further in production capability. Mr Beard will join the Revolution Fibres board. Phil McCaw, Movac Managing Partner commented, “We’re excited to have the opportunity to work with the Revolution Fibres […]

Covid-19: PPE register goes live

ManufacturingNZ has made live a national Personal Protective Equipment (PPE) register to help identify manufacturers that can assist in the fight against Covid-19. ManufacturingNZ Executive Director Catherine Beard says there is significant PPE manufacturing capability within New Zealand. “The Government was keen to get better visibility of what manufacturing capability we have in New Zealand to produce PPE, so we’ve provided this clear list that includes contact details for each business,” Beard says. “Many of the business reached out to say they could reconfigure their operation to do face masks and other equipment.” The launch of the register comes as more than 14,00 New Zealanders signed a petition calling on the Ministry of Health to follow overseas guidelines for every health worker caring for those with confirmed or probable Covid-19. Thousands of doctors and nurses from across the country are rallying the Government for more effective PPE in the fight against Covid-19. “New Zealand is an innovate little country and many of our manufacturers have quickly adapted to help in the response to Covid-19.” The register already includes more than 70 businesses and will be updated daily as new manufacturers put their hand up to unite against Covid-19. Manufacturers can text ‘PPE’ to 313 to get the link to register. The list can be found here: https://www.manufacturingnz.org.nz/resources-and-tools/covid-19-ppe

Team New Zealand

We work together. We share ideas. We recover the business base. We keep moving forward. In these challenging times we can recover and move forward, meeting the challenges that arise and benefitting from them. Ideas will present themselves…and the unthinkable become a reality. Companies and organisations are working together to share the information that we need in the time of the virus. EMA and ManufacturingNZ and Buy NZ Made are but three examples of the organisations making us aware of opportunities available to support the recovery. We are seeing businesses diversifying to lend a hand. Such as those who are manufacturing detergents in their plants which were initially started to produce wine. Let’s keep this activity going as we get back on track. If you have a story to share about how the virus is affecting your business or activities you are currently involved in to support others, we want to know. We will publish your story and assist your company to connect to others as a provider of a service or business opportunity in the current climate. Either in the magazine or on the website www.nzmanufacturer.co.nz And by the way, where possible, Buy NZ Made.

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