Speech - Back To Business 2022

Leeann Watson, Chief Executive of the Canterbury Employers' Chamber of Commerce

Kia ora and good morning everyone.

Last year we held our first Back to Business event at the Art Gallery with over 300 local business leaders joining us.

It was a great opportunity to reconnect after a challenging 2020.

Unfortunately, this year - we have not been able to bring you all together in person due to Government restrictions - so online is the next best alternative.

Thank you for taking the time to tune in, and thank you to our guests, Kirk Hope, CEO of BusinessNZ - our advocacy and lobby arm in Wellington, and Frances Valintine, the founder and chair of the Mind Lab and Tech Futures Lab, who will both speak to you shortly.

Before I pass over to our two speakers, I’m going to give you an update on the Canterbury region, from my perspective.

Where we are right now, what to expect over the next three months, and what the year ahead is going to look like for you and your business - based on what we know today, in a very fast-paced and changing environment.

Where are we at right now.

Right now, we all know, our operating environment is extremely challenging and not conducive to long term growth and sustainability.

The restrictions imposed as a result of COVID-19 are wreaking havoc on business and additional pressures and costs are being piled on in every direction.

Inflation is going through the roof, disruptions to the supply chain, a severely constrained labour market, to name a few of the challenges we are all facing.

One of the most significant challenges right now is of course New Zealand’s response to COVID-19.

We’ve experienced over the last few months a mixture of one foot in the delta-variant, still-focusing-on-the elimination playbook, and the other foot trying to work out what Omicron looks like and how we need to rework the playbook.

At times it has felt like there has been very little long-term planning in place, when the rest of the world is moving on and has reopened.

You just have to walk through the CBD during the week to see the impact that restrictions are having on business.

The red-light setting, with its capacity limitations, was designed to only be used when hospitals were reaching breaking point.

The red-light setting is not a lockdown, but unfortunately some people are treating it as such and opting to work from home as a result of government directions.

This is having a significant impact on many across our business community.

Following a month of consistent pressure and advocacy we finally saw financial support under the red-light setting, being announced last week.

We’re pleased they did so, however:

On the other hand, we have also seen a minimum wage increase with seven weeks' notice, and a proposed income insurance scheme - introducing even more costs for business

Guidelines are changing on a nearly a daily basis, and we’re zipping in and out of levels, stages, phases and lights. It’s confusing. And it’s not good for business.

We have had some of the harshest lockdown restrictions in the world and we need clarity and a clear plan moving forward, which includes learning lessons from what we have seen overseas.

It was great to see the announcement on Monday that mandatory self-isolation for visitors have been scrapped, and that our border reopening is being sped up.

Moving onto the next three months.

Three months ago, I certainly didn’t envisage that in February we would be having discussions on the inability to access rapid antigen tests or revisiting original dates for our borders re-opening.

Nor that we would be witnessing war in Europe.

Or that there would be a village on Parliament’s lawn complete with a hair salon, vegetable garden and yoga classes.

We are living in a time of great uncertainty and rapid change, and we can expect the unexpected to continue over the next three months.

As much as I want to be optimistic, we also must be realistic and plan for that uncertainty ahead.

Let’s get the big one out of the way - COVID-19.

Government modelling - which appears to be increasingly less reliable - suggests we will hit the peak towards the end of March.

The quicker we can get through the peak and onto the other side, the better.

The implications for our region by remaining in shadow-lockdowns and retaining elimination-era public health measures are significant, and we want them gone.

Nations around the world are lifting mandates, they’re scrapping them, and moving to a model where individuals can decide if they want to wear a mask or not.

We expect to see the same happening in New Zealand within the next three months.

Our economy is going to be significantly, but indirectly, impacted by the actions of Russia.

A destabilized Europe, a global energy market pushing energy prices through the roof, and the risk of spillover are contributing to worldwide economic uncertainty.

While Ukraine is seventeen thousand kilometers away - we trade with more than a hundred countries.

Our regional contribution to New Zealand’s total goods trade is worth fifteen billion dollars.

It was pleasing to hear that both the Prime Minister and Minister for Trade and Export Growth are leading numerous trade delegations this year to advance our trade and economic interests.

The Free Trade Agreement announced yesterday morning with the United Kingdom - removing tariffs on 95% of our exports, is to be commended.

As the world reopens, we need to remain attractive and competitive, and not just in terms of the products we export, but with our human capital.

Historically, migrant and seasonal workers have made up eight percent of the Canterbury workforce, and we need them here, right now.

The labour market in the Canterbury region is choking under pressure, recent estimates from Lincoln University are that we need 10,000 new workers per year to fill the labour gap.

That’s not an insignificant amount, and for that reason we are waiting with bated breath as to what the Government’s immigration reset is going to look like.

And, of more concern, how a brain drain will be managed. It’s not a hypothetical that might happen in the future, it’s happening right now. We’re already seeing a spike in outward migration.

After being confronted with $10 cauliflowers and $3 per litre at the pump, the rational choice for 50,000 Kiwis in the last year has been to buy a one-way ticket.

Fortunately, the Canterbury region has quickly become an attractive location for both human capital and new businesses.

Last year, Selwyn had the largest net migration gain of any area in the country. The Waimak closely followed.

The combination of urban regeneration, high-growth and high-value sectors and our innovative nature has set us up well to remain competitive.

Throughout the world, other countries are placing immigration at the forefront of their economic recovery plans. We cannot be naïve to that - we should learn from it.

New Zealand is at a tipping point where we have opportunity to boost our economic growth as we reconnect with the world, but again - we need a long-term plan from Government - we must ensure we are competitive on the world stage.

Budget Day is looming just around the corner and so far there has been no indication of what business, or the Canterbury region, might stand to benefit from this.

Two years into COVID-19, there is still an absence of a credible economic recovery plan, and we simply must have one.

At the Chamber, over the next three months, we’re dedicating a significant amount of resource to supporting business as we adapt to widespread transmission of COVID-19.

Our staff are operating in a hybrid model, like many of you will be, to ensure that we can continue to deliver services to our members as COVID-19 rips through the community.

Our advocacy work for the next three months is focusing predominantly on ensuring we continue to engage with Government on providing clear, concise information, to act with urgency on getting our borders re-opened, and for a credible economic recovery plan.

We know labour market constraints is the number one issue for businesses, and with the imminent announcement of an immigration reset, we will be advocating for a balanced plan that helps rather than hinders.

We will also focus on the upcoming proposed Fair Pay Agreements, and Income Insurance Scheme, both of which will have huge implications for our local businesses.

The Canterbury Chamber opposes both of these at this time and in their current form.

We will not compromise on poor policy if it will negatively impact business.

We want businesses to be able to do business, and to not be piled with additional pressures at arguably one the most difficult times for businesses to operate.

The year ahead.

At a time filled to the brim with uncertainty, some things are certain for the year ahead.

COVID-19 will be normalized as is the case in every other developed country.

Vaccine passes, self-isolation and traffic lights will be forgotten terms.

Businesses will no longer have to put up with rapidly changing guidelines and expectations in the name of public health only, with little consideration for economic health.

Events, and the festivals that attract so many to our region will be back - and a sense of vibrancy will return to the city.

Snoop Dogg is paying us a visit later this year.

Our region will also choose new leaders.

11 chains and 121 seats at council tables are up for grabs - including a new mayor here in New Zealand’s second largest city, Christchurch.

Local government is often viewed as superfluous and a handbrake on doing business, and frankly, in some cases, it can be, but we have an opportunity to help shape the future of local government and their decision making, through our choices later in the year.

The Chamber will be setting down our expectations for councils throughout the region ahead of the election.

In addition, we will be providing resources to aid our members in making an informed decision.

What is also going to be certain is that businesses are going to see all sorts of interesting pieces of legislation coming through the pipeline.

COVID-19 has dominated much of the public debate for the last two years and now, everything that was thrown on the backseat is going to be picked up again.

Fair pay agreements, the reform of the Resource Management Act, three waters - all with significant consequences for business. I will leave this with Kirk to go into more detail.

Then, there are the things we’re not too sure about.

Our economy is coughing and spluttering, and we will continue to apply pressure on decision makers to do what they can, to support business.

We all want to be in a position at the end of the year where our economy, regionally and nationally, is thriving.

We want businesses to feel confident and to do well, which will flow on to strong healthy community outcomes

We don’t quite know what will happen in Europe, nor do we know if the protestors will still be on the Parliament lawn.

We do know to expect the unexpected, and we have all had plenty of experience with that.

At the Chamber, we will continue to support Canterbury businesses, ensuring you are kept informed through our training, advisory and consultancy services.

That you’re represented and have your voice heard, influencing policy decisions.

And, when the peak passes, resuming our regular series of events to reconnect our community.

We want businesses to be able to do business.

That’s what we’re here for, and that’s what we will be focusing on for the year ahead.

Ngā mihi nui.

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