Source: Business Canterbury
Business Canterbury welcomes the Prime Minister’s comments in his State of the Nation speech today, announcing that economic growth will influence all decisions this year and that nothing is off the table as many businesses look ahead to 2025 with cautious optimism, but with plans for investment and growth ready to go.
Business Canterbury Chief Executive, Leeann Watson says, “Businesses have been navigating an elastic band economy over the last five years, dealing with a global pandemic, supply chain issues, unprecedented labour market constraints, and then crippling inflation and interest rate pressure which also caused consumer confidence and demand to plummet”
“The last six months have seen a turnaround in business confidence, with many looking ahead at 2025 with the hope that it will be a better year, despite challenges remaining with cashflow and demand.”
In Business Canterbury’s December business confidence survey, a net 57% of businesses said they anticipate stronger financial performance in the coming months, the highest level recorded since mid-2022.
Watson says, “While business confidence has turned around relatively quickly in Canterbury, expectations of investment in property, plant and equipment, as well as staff hiring intentions, have been a tougher ask.”
“Local businesses have been calling for policies that help the economy regain momentum, allowing them to grow with confidence.
“For growth to take off, there must be continued efforts to cut red tape, ensuring businesses are not bogged down by clumsy rules and regulations.
“The Prime Minister confirmed today that the government will be moving forward with health and safety reform – a step businesses will welcome. This comes as 42% of Canterbury businesses tell us that current health and safety requirements poorly or very poorly balance risk with cost and productivity.
“Another priority for the government should be the Holidays Act – which is a handbrake for businesses, often monopolising time and causing stress for small businesses and those with a predominantly casual or part time workforce.
“Even changes to procurement rules could unlock significant growth opportunities – with 39% of Canterbury businesses saying they don’t tender for public contracts because they don’t know how to or it is simply too hard – with many commenting that the way the system is set up stifles innovation and only nods to prioritising New Zealand businesses.
“Access to capital has long been a barrier to many New Zealand businesses looking to grow onto the world stage. With Christchurch and Canterbury now being a hub for aerospace, food and fibre tech, health tech, and high-tech services, the announcement of a dedicated body for attracting and facilitating foreign investment could be a game-changer for our region.
“With ‘nothing off the table’, Business Canterbury looks forward to continuing to work with government on policies that enable an environment for innovation, productivity and sustainable growth.”
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.
