As the nation digests the latest budget, the business sector is already weighing in on areas it hopes the government will focus on. Businesses are hoping for stronger spending on infrastructure that will support economic growth.
BusinessNZ chief executive, Kirk Hope, supported this action and called for the government to speed up stalled infrastructure projects. Hope pointed to a need to review intended infrastructure projects that had not achieved ‘shovel-ready’ status. He indicated a need to fast track resources for those that could be speeded up.
A poll conducted by Baker Tilly Staples Rodway across over 450 businesses of various sizes indicated that the climate was negative. About 70% of respondents felt that the government was not managing the economy well nor doing enough to rebuild it sustainably. According to the chairman of Baker Tilly Staples Rodway, David Searle, businesses felt that their costs were rising, making for a tough environment.
Part of this may be attributed to increases in the minimum wage, increases in paid sick leave days, and a new public holiday. With closed borders limiting the entry of skilled labour, businesses are also paying more for the same talent. The government reported that 106,600 people had taken up free trades training since July. Hope said that they would need ongoing employment to avoid them departing for greener pastures in other regions like Australia.
Searle also highlighted a concern amongst businesses on the growth of the debt level in the country during the pandemic. He stated that people were more worried about debt now than six months ago. Early May figures indicate that debt sits at 33.3% of the GDP, less than had been predicted. Some of this has been attributed to GST revenues resulting from people spending more than was expected.
Pic’s Peanut butter CEO, Stuart Macintosh, also called for medium to long term planning in the investment of efficient national transport infrastructure, with an emphasis on rail. He said that national supply chains were struggling and that the government needed to ensure equity in trading relationships, including those involved in export. Secret Spot co-founder, Eric Kolver, also hoped that the government would not seek to add compliance or business costs, allowing for easier expansion.
Finance minister, Grant Robertson, has already said prior to the release that the budget will focus on careful fiscal management. This has however not altered businesses hopes that driving economic growth, reigning in debt levels, and preserving border security will very much be on the agenda.