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

 

Bureaucracy Gets Thumbs Down from NZ Businesseses

Media Release
14 February 2006

Social Policy And Welfare Bureaucracy Gets Big Thumbs Down from NZ Businesses

Medium-sized New Zealand businesses are very clear about one thing: They say the country has far too many bureaucrats, particularly in welfare and social areas, according to the latest Grant Thornton International Business Owners Survey.

But New Zealand Trade and Enterprise officials can breathe more easily than others. Only 31.7% of the New Zealand businesses polled considered them to be among the most over-abundant bureaucrats.

Those employed carrying out social policies and welfare services were deemed to be the big offenders in terms of having too many bureaucrats. In the case of social policies, 81% agreed that they were the bugbear and in welfare the figure was 77.8%. Next came environment (61%), health (59.5%) and education (52.4%). [See table below.]

Question: In which of the following areas do you feel New Zealand has too many bureaucrats?

|----------------------------------------+----------------------------------------|
| Area | Percentage saying yes |
|----------------------------------------+----------------------------------------|
|Social Policies | 81.0% |
|----------------------------------------+----------------------------------------|
|Welfare | 77.8% |
|----------------------------------------+----------------------------------------|
|Environment | 61.0% |
|----------------------------------------+----------------------------------------|
|Health | 59.5% |
|----------------------------------------+----------------------------------------|
|Education | 52.4% |
|----------------------------------------+----------------------------------------|
|Trade & Enterprise | 31.7% |
|----------------------------------------+----------------------------------------|

Overall, 84% agreed with the statement that New Zealand has too many bureaucrats. A further 12% disagreed, with the balance undecided or not having an opinion.

"We thought it was worth asking businesses the New Zealand-specific questions about whether they thought the country was over-populated with bureaucrats, and in which particular areas of Government this was happening. These issues have some topicality as people look at the state of the economy and claims that Government spending is pushing up inflation," said Grant Thornton New Zealand chairman Peter Sherwin. "After all, Government spending has increased by 35% in six years.

"Clearly, from our survey, the medium-sized business sector is saying enough is enough.

"What the Government is doing by growing the bureaucracy so much is not contributing to getting New Zealand into the top income levels of the OECD. It can also be said that the number of bureaucrats is adding to the negativity about the economy," said Mr Sherwin.

"The reactions to the prompt about social policies were probably in line with other indications that many New Zealanders, particularly those in business, feel the country has become both too politically correct and over-regulated. The strong reaction against welfare bureaucracy was probably also indicative of built-up annoyance and perceptions about the number of people given welfare payments of various types.

"While 15% of the working-age population remains on a benefit, many employers are struggling to find staff.

"Conversely, business owners believe that the Trade and Enterprise area is seen to have a positive influence over the economy, adding value to the business community."

Mr Sherwin said that with core Crown operating expenses already at a high of 30.6% of GDP and projected to go up to 32.4% in 2009-2010, the danger signs for the future of the New Zealand economy were flashing red.

"All the time that this bureaucratic spend-up is going on, the economic burden falls more and more on the people who are the heart of the economy; the small and medium-sized businesses that make up more than 90% of companies in New Zealand. It is time for Government to listen to the private-sector employers.

"One would have to think that Government politicians would be advised to take heed of this sort of evidence. National has already given notice of its intention to tackle the burgeoning bureaucracy and says it has a mission to crack down on welfare dependency."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime NZ: NZ Joins Global Initiative Keeping Ports Open And Freight Moving

New Zealand has joined an international port authorities’ global initiative for safe and efficient movement of goods and shipping during the COVID-19 crisis. World-wide, 56 port authorities have agreed how they will work together facilitating maritime ... More>>

ALSO:

National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>

ALSO:

DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>

ALSO:

Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>

ALSO:

ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>

ALSO:

Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>

ALSO:

RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>

ALSO:

Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>

ALSO:

Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>

ALSO:



Auckland Airport: Thousands Of Kiwis Travelling For Queen’s Birthday Weekend


Confidence in domestic travel is beginning to steadily ramp up, with thousands of Kiwis travelling within New Zealand for Queen’s Birthday.
Nearly 400 flights will be operating to and from Auckland Airport over the long weekend... More>>

ALSO:

Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO:


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>

ALSO:

RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>

ALSO:

Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>

ALSO:

Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>

ALSO: