Business Canterbury says today’s Budget largely met expectations, delivering a fiscally responsible approach.
Chief Executive Leeann Watson says, “The Minister aptly described this as a ‘Responsible Budget’, and that’s broadly what we’ve seen. Given the signals leading in, we expected a disciplined and relatively conservative package, with limited direct support for business.
“While that discipline is important in the current environment, it cannot come at the expense of building a stronger economic future. At first glance, there isn’t a clear, cohesive growth story running through this Budget, particularly when it comes to lifting productivity, encouraging investment, and supporting the private sector to expand.”
“Many of the initiatives announced will have positive impacts across the business community, but nothing that will substantially shift the dial on driving economic growth and productivity.
“Businesses will ultimately drive economic growth and recovery in New Zealand. While there are some good initiatives such as proposed changes to fringe benefit tax which should reduce compliance burdens, and the doubling of trade training which strengthens the pipeline from school to work, there remains very little targeted at unlocking business investment in productivity at scale.
“We had signalled ahead of the Budget that productivity-focused policies would be the most practical and impactful pathway forward given funding constraints.
“While we didn’t necessarily expect to see all of those tools deployed in its Budget, we do need Government to be using every lever available in the coming months.
“Infrastructure investment remains critical, particularly for regions like Canterbury and the wider South Island.
“Investment in resilient infrastructure is needed, but we also need to get ahead of the curve, not simply fix what’s already broken.
“Now is the time for bold, forward-looking decision making. That doesn’t necessarily require significant new spending, but it does require a clear focus on improving the settings for businesses to invest, innovate and grow.
“Businesses have shown time and again that they are resilient. What they need now is a policy environment that makes it easier to do business and supports long-term growth.
“We will continue working constructively with Government to ensure that happens.”
Business Canterbury, formerly Canterbury Employers’ Chamber of Commerce, is the second largest Chamber of Commerce in New Zealand and the largest business support organisation in the South Island. It advocates on behalf of its members for an environment more favourable to innovation, productivity and sustainable growth.