Source: Business Canterbury
Opinion piece by Business Canterbury Chief Executive Leeann Watson.
Canterbury is punching above its weight. As we near the end of more than a decade of rebuild activity, the region is in a strong economic position with a revitalised central city and new world-class amenities. We also have a strong diversified economy, including new industries such as aerospace, and a large, ambitious and innovative business sector. We’ve shown the country – and the world – just how resilient, bold and ambitious we are in the face of unprecedented change.
And change is the operative word of our time: globally, with rising political tensions and changing trade relationships resulting in increased pressures for business; and nationally with a change in government in 2024, resulting in reform across RMA, education, immigration, health – and the list goes on.
In Canterbury, a key component of the success of the region has been how we have responded in the face of change. Following the earthquakes, the private sector led the charge in committing to the rebuild of our city and invested in shaping what is now the best central city in New Zealand. Now that we have a new city, it’s time for us to focus on the long-term ambition for Canterbury – the challenge is how to do this with any certainty, given the ongoing changes.
Businesses need stability and certainty over the long term to enable investment and long-term planning. Over the last few years, businesses have been through what has felt like an elastic band economy. Even though they are feeling more optimistic – according to the latest Business Canterbury Quarterly Survey – they’re not quite ready to commit to growth just yet.
A key part of that comes down to a lack of long-term thinking from the public sector beyond the three-year political term. We need bipartisan agreements on long-term projects and policies to provide stability and certainty and allow for more consistent planning, regardless of who is in power. This includes what is being done to address key issues facing the region such as energy infrastructure, transport networks and connections, accessibility and public transport, and housing supply, as well as how the private sector can leverage opportunities in areas such as renewable energy, industry attractiveness, retention of talent, and innovation and scale.
There are also other major reform areas, such as immigration, foreign direct investment, Health and Safety at Work Act and the Holidays Act – all of which have an impact on business and the workforce of the future, that require consistent long-term settings, not the flip-flopping we have seen with the changing of the political guard.
I believe we need a strong, unified private sector-led vision enabled by local and central government to create an anchor point for the region. It needs to celebrate our region’s achievements thus far, leveraging lessons from past experiences, and identify the critical path to sustain our momentum and build a resilient economy, while also reinforcing the key role we play in the wider ‘New Zealand Inc.’ story.
We are a region that provides opportunities to significantly contribute to the New Zealand economy and counterbalance some of the very real issues that are faced in other parts of New Zealand. Christchurch is an affordable city to live in, with plenty of land to expand, affordable housing and commercial rents, and short commutes with easy access to nature and a vibrant central hub.
Up until early 2023, labour shortages were the biggest constraint on business growth, with a record number of job vacancies and low unemployment. However, things have changed significantly over the last year, with migration-driven population growth taking place while economic activity has slowed across the country. We also have a strong talent pipeline through a local tertiary sector that continues to gain national market share, with half of all University of Canterbury graduates that stay in New Zealand joining the Canterbury workforce, and 60% of all Lincoln University graduates staying in the region.
It’s also essential that our vision includes whole-of-region perspectives to create clarity and define regional drivers and priorities, helping to support further confidence and certainty for the private sector. This would not only connect our region’s rural sector to the vibrant city of Christchurch and beyond but also promote a clear understanding among central government of the region’s unique drivers from the business sector’s perspective.
I believe the government’s Regional Deals, announced in August, is a step in the right direction, with a focus on central and local government and the private sector working together. While I would obviously like to see Canterbury in the first tranche to benefit, deal or no deal, there has never been a better time for the private sector to lead the charge (and the change) to shape and realise our ambition for the future of the Canterbury region that we choose to do business in, live in and invest in.
About Business Canterbury
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the largest business support agency in the South Island and advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.
