Press Release – Deloitte New Zealand

Deloitte-BusinessNZ survey offers insight into what business thinks are the most
crucial issues facing the nation The business community is calling on the next government
to provide a clearer blueprint to lift the country’s economic performance and to …October 31

Business leaders call for
a clear plan on growth

Deloitte-BusinessNZ
survey offers insight into what business thinks are the most
crucial issues facing the nation

The business
community is calling on the next government to provide a
clearer blueprint to lift the country’s economic
performance and to involve business more in its
implementation.

This was one of the key survey findings
presented to business leaders at the Deloitte-BusinessNZ
Election Conference held in Wellington today.

In
presenting some of the survey’s most important results,
Deloitte CEO Murray Jack noted that two-thirds of business
respondents either don’t think or are unsure the
government has a clear plan to lift the country’s
performance.

While most businesses are broadly support of
the current economic direction, particularly moves towards a
broad base, low rate tax system, there is a strong desire to
see a clearly articulated set of principles that guide
fiscal and regulatory decision-making and policy
implementation.

“If New Zealand is to achieve the
standard of living to which we aspire business needs to be
successful, and its success will be more certain if it
operates in a supportive policy environment,” Mr Jack
says.

Savings is another critical area that business is
seeking more clarity from the next government, with more
than 80% of businesses believing it is time the government
looked at the eligibility age for NZ Superannuation.

Mr
Jack says savings is clearly looming as a major battleground
in the election, although much of the policy discussion has
been confined to whether or not KiwiSaver should be
compulsory.

“The problem any government faces here is
the fiscal cost of compulsion under existing incentives for
the scheme. It is also not sensible to make changes to
KiwiSaver without also considering NZ Superannuation and the
NZ Super Fund.”

Among other key findings, the survey
reconfirms concerns of business that school leavers are not
well prepared to be effective in the workforce (over two
thirds of those surveyed), and even over a third of business
leaders believe tertiary graduates are ill-prepared. As a
result, more than 86% of businesses surveyed believe the
government should provide more focus on raising language and
numeracy skills.

One area business is looking to become
increasingly involved with government is in developing the
country’s infrastructure, with 82% of respondents in the
survey wanting greater participation by the private sector
in publically funded infrastructure. A significant
proportion – 84% – also supports the current
government’s plans for mixed ownership of some state
assets.

The survey also showed the employment environment
is of crucial importance to business, with more than 70% of
respondents opposing the union monopoly on collective
bargaining and 65% favouring a return to youth rates.

“Young people need all the help they can get to get
into the workforce, so raising the price of their labour to
that of skilled and experienced workers seems unhelpful,”
Mr Jack says.

The Deloitte-BusinessNZ Election Conference
was attended by more than 250 business and industry leaders,
and representatives of the main political parties. The
survey presented at the conference was conducted in
September and was compiled from the responses of more than
1300 BusinessNZ members.

ENDS

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