Positive Signs For SMEs From Prime Minister

The EMA is pleased that small business loans will be extended for three years and interest-free loans for two years, and that the scheme would be extended for a broader range of purposes including innovation and technology advancement.

The Prime Minister’s announcement today that there would be a range of other small business growth fund options and a flexi-wage scheme in place by Christmas through $311 million in additional funding.

EMA Chief Executive Brett O’Riley says this and other measures announced will help built the confidence in particularly the SME sector that is needed to transform their own and the country’s future.

"It was also pleasing to hear that there would be other jobs created through infrastructure and conservation, and that measures would be taken to fast track the RMA to allow key infrastructure projects that create jobs and contribute to the economy to be fast-tracked," he says.

The prioritisation of the reform of the RMA that the EMA has worked on with partners as part of the Resource Reform New Zealand group has also found favour.

"A new RMA needs to enable greater national direction and standards focused on development on a planning rather than consents basis to help New Zealand cope with its rapid growth and infrastructure deficit," says Mr O’Riley.

"There is more work to be done to achieve a consensus on the direction to ensure the two pieces of legislation deliver what everyone needs, rather than repeating the mistakes of the first Act, which failed to protect the environment or enable fast enough responses to cope with growth."

What will not resonate with the EMA’s 7400 largely SME businesses is the prioritisation of an additional five days sick leave a year, bringing the total to 10 days.

"This is going to cost businesses at a time when they simply cannot afford it. It is one of those things that members don’t believe they have an issue with but will have a big impact. We are however pleased the proposed legislative changes for the sick leave provisions are going to go through the select committee process, which will give us a chance to discuss implementation issues and timings."

"Really, our business members we would rather have seen the focus on fixing the Holidays Act, the work for which has largely been done and is just waiting in the wings," Mr O’Riley says.

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