Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Raft of new costs about to hit business

Raft of new costs about to hit business

New costs to business from the Holidays Bill, the OH&S Act, higher petrol levies to fund ACC, rates increases and higher electricity costs are just some of the reasons locally for the slump in business confidence, the Employers & Manufacturers Association (Northern) suggests.

"The effect on business of trade news from overseas is being unnecessarily compounded by the poor timing of new law changes and price shocks on the local scene," said Alasdair Thompson, EMA's chief executive.

"The war, SARS and unpredictable trade conditions internationally are only part of the explanation for the slide in business and investor confidence.

"Government appears unwilling or unable to adjust its legislative timetable to ensure business can try to sustain modest growth while adapting to this period of major change.

"Government is also failing to integrate moves that will increase costs with anything that may help compensate for them.

"Expected cost increase about to hit include:

* Petrol prices about to rise by a further 2.78 cents a litre to fund ACC compensation for vehicle accidents;

* Workplace Safety Amendment Act coming into force on May 5th with fines increased five fold, with insurance against them prohibited, and more compliance costs;

* the Holidays Bill before Parliament makes mandatory payment of time and a half for work required on public holidays plus increased sick leave entitlements, which are provisions taking no account of the scale of New Zealand businesses;

* Power prices are expected to rise imminently, especially for businesses coming off contract.

* Local Government rates rises partly to fund long overdue transport infrastructure.

"On the horizon we have the extra costs heralded by the establishment of a new, and unnecessary, supreme court.

"Disheartening also is the lack of real change to the RMA. The RMA was responsible for about a third of all submissions heard by, and recommendations made by Government's Ministerial Panel of Business Compliance - only two or three of the recommendations are being addressed.

"For exporters only Australia appears in relatively good shape - other markets are in limbo waiting for the war to be resolved."

© Scoop Media

Business Headlines | Sci-Tech Headlines


Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>


Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>


RBNZ: Super Fund Chief To Be New Reserve Bank Governor

Adrian Orr has been appointed as Reserve Bank Governor effective from 27 March 2018, Finance Minister Grant Robertson says. More>>


ScoopPro: Helping PR Professionals Get More Out Of Scoop has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>