Building modern transport infrastructure and setting ambitious emission reduction targets are two of the key elements in developing a 21st century economy, prime minister Jacinda Ardern says.
She raised the points during a major speech to business leaders at Westpac’s national headquarters in Auckland on Tuesday in an effort to stem dropping business confidence.
“Average business confidence scores under the Clark/Cullen Government were much lower than the Key/English Government, despite Clark and Cullen delivering higher average growth, lower unemployment, lower debt, larger surpluses and stronger wage growth than their successors,” she says.
“We appear to have inherited a similar conundrum, we’ve run a strong surplus, have the best net international investment position ever recorded, stable and low interest rates forecast for some time which ought to spur investment and the lowest unemployment rate in a decade.”
Ardern says the economy needs “retooling” to make it work within the limits of our environment, shape it to deliver on the hopes of the public and to put a focus on more than just profit.
In an effort to get onside with the business sector, Ardern announced she is setting up the Prime Minister’s Business Advisory Council chaired by Air New Zealand chief executive Christopher Luxton.
“This is not just a group that will provide thought leadership. Members of the group will be tasked with working alongside us to assist with addressing some of the big challenges we face,” Ardern says.
“I want the council to report to me on the issues and opportunities they see and identify emerging challenges like skills, training and migration and the challenge of scaling New Zealand businesses up and growing our export led wealth.”
She also acknowledged business concern about proposed fair pay agreements, which would enable unions and employers to set minimum terms and conditions for all workers in an entire industry or occupation.
Ardern says only one or two fair pay agreements would be put in place this parliamentary term, with a working group set up to look at the issue planning to report back in November.
“Taking a considered collaborative approach, has meant that there has been room left for a bit of speculation around what fair pay agreements might do, and whom they might effect. It’s time we drew a line around that speculation.
“I am confident that by working together we can overcome the challenges facing our economy and society.”
Westpac NZ chief David McLean told the audience he suspects the drop in business confidence is linked to some frustration about the change of government, following last year’s election.
“It’s time for the business community to get over the election result and get one with business.
“We need to make sure we’re not talking ourselves into a spiralling level of doom and gloom.”
