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The EMA was not expecting much for business from the Wellbeing Budget 2019, but it was still disappointed it did not tackle some of its members’ key concerns. Chief executive Brett O’Riley says the 8500-strong member organisation’s focus is primarily on employees and their workers. “Nobody would argue that people’s overall wellbeing is important, and there is no doubt that a happier, healthier community is a more productive one. We do welcome the investment in mental health as it is a cost to everyone in different ways, including business, and any improvement in this area would benefit everyone,” says Brett O’Riley. “However, greater recognition could have been made of wellbeing in the business sector as a healthy economy provides the funding to deal with the difficult and complex social issues the Government is tackling,” he says. From an EMA member point of view, the best news for business probably came ahead of today’s budget with the decision not to introduce a capital gains tax. Mr O’Riley says two positives were the $300m of expansion capital for start-ups will be able to access in order to grow, and $197m to tackle homelessness through Housing First, a social housing initiative that could further the construction sector. With a key part of the economy’s success linked to being competitive in the digital age, and the EMA welcomes today’s announcement of $6.8m over four years to future-proof New Zealand’s manufacturing industry, as well as the additional $157m for research and innovation linked to low emissions. This ties in to another of the major challenges for members is getting the people they need. While the EMA is pleased to be involved in the crucial Future of Work project, more focus is needed to achieve an employment framework that supports future growth. In addition, the immigration […]

Budget 2019 largely overlooks one of the key drivers of people’s wellbeing – their livelihoods, says Canterbury Employers’ Chamber of Commerce Chief Executive Leeann Watson. Budget 2019 utilised the Treasury’s Living Standards Framework to inform the Government’s investment priorities and funding decisions. “This is not a Budget that will transform our economy,” says Ms Watson. “While it will go down in history as the first wellbeing Budget, it does not go far enough in terms of supporting businesses to enable growth. “We are generally supportive of the concept and impetus behind the wellbeing framework, but it doesn’t work if we don’t have the financial wherewithal to fund those wellbeing initiatives. The key aspect that has been overlooked is an explanation of how the wellbeing Budget approach might assist business growth and reduce the burden on business.” Ms Watson says that while this was not a ‘business Budget’, there were aspects of the Budget that would be welcomed by the business community. “It was positive to hear the Government’s $300 million fund for investing in venture capital markets, with a particular focus on mid-sized businesses, as well as the $157 million allocated to help support start-ups focused on innovation to promote low-emissions. We also welcome the investment in infrastructure through the $1 billion earmarked for rail over two years. “At a local level we are very pleased to see the increase in funding for the Christchurch Schools Rebuild Programme, which will make a significant difference to our community. We also look forward to hearing how the confirmed funding for the Reform of Vocational Education will be parcelled out.”

BusinessNZ has congratulated the Government for its decision not to proceed with a capital gains tax. Chief Executive Kirk Hope said the proposed tax would have hit businesses hard, reducing funds available for investment and job growth and increasing their compliance burden. “Our members have been very clear that they did not see the justification for an expensive new tax that would have reduced the competitiveness of the New Zealand business sector for no discernible gain. “BusinessNZ was appreciative of being included in the working group process and commends much of what is in the report, but in the end could not support a capital gains tax. “The Government is to be commended for listening as New Zealanders made their views clear. “It is clear that NZ First has played a significant role in a capital gains tax not proceeding, and the business community will thank them for not compromising their concerns. “We feel the process of working group proposals followed by widespread consultation has been successful in delivering a result that the majority of New Zealanders can support. “With the Governments decision not to proceed with a capital gains tax decision, the benefits of our relatively broad-based, simple and fair tax system have been retained, and New Zealanders’ confidence in the tax system strengthened.”