Advocacy Report Reader
Employment Relations
Fair Pay Agreements
Published: April 27, 2021
Issue for Business: The current government was elected in 2017 with a commitment to introduce Fair Pay Agreements (FPAs). Fair pay agreements are a set of terms and conditions of employment for an occupational group or sector. They will be agreed through bargaining between affected workers and employers, and will then become legal requirements in that sector. The Fair Pay Agreements Working Group (FPAWG) delivered its report to the Government in December 2018. This was followed in 2019 by a national consultation document that sought views on the Work Group’s recommendations. After discussions with Business NZ Zealand First indicated that the issues for business were significant, they did not support the development of FPAs and the process was stalled. Subsequent to the 2020 Election the majority Labour Government indicated that it would move ahead with implementing FPAs and is now working through the complex policy issues related to establishing what is in essence an old award system.
Action: In addition to discussions with New Zealand First, in July 2019, BusinessNZ expressed concerns to the International Labour Organisation (ILO) about the compulsory nature of the proposed FPAs, arguing that they breach the Right to Organise and Collective Bargaining Convention 1949 – conventions which the New Zealand Government has ratified. Therefore if the Government passed legislation compelling organisations to participate in FPAs it would be a breach of its international commitments. This would have signifcnat reputational implications for the Government, and subject it to deeper international scrutiny.
Outcome: The ILO has approached the government several times for comment. The Government has yet to respond.
Employment Relations
Pay equity
Published: April 27, 2021
Issue for Business: The Equal Pay Amendment Act was passed on November 6, 2020. Prior to its passage a range of claims had been made in the state sector, these have been dealt with using the set of principles developed by the Pay Equity Joint Working Group chaired by Dame Patsy Reddy, and since enshrined in the law. Since the Act was passed a further claim has been made for Early Childhood workers. This is the first real challenge for the Act given the large number of employers working in a sector characterised by a lack of coordination between the various employers’ groups.
Action: The government has set up a Data Repository to capture claims data as claims are settled, providing a research base for future claims.
Outcome: BusinessNZ is a member of the governance group of the Repository, to ensure that data relating to claims in the private sector are managed with appropriate recognition of privacy and commercial confidentiality.
Immigration, Education, Skills & Training
Border and immigration settings
Published: April 27, 2021
Issue for Business: BusinessNZ is focused on the retention of skills (extensions, family reunification, removal of three-year stand down). We are also engaging with Government on plans for border opening and resuming visa processing (exemption settings, bubbles, vaccine passports, MIQ plans), future immigration settings, employer assisted visa settings and investor category visa settings
Action: We have submitted advice on this and continue to work with officials and Ministers on the issues.
Immigration, Education, Skills & Training
Reform of Vocational education.
Published: April 27, 2021
Issue for Business: BusinessNZ is supportive of the ambition of RoVE to create a more effective and efficient system to deliver the skills industry needs. We remain mindful of the challenge of large-scale change and the risk of disruption to the skills pipeline, particularly given the challenging immigration settings. The positive response to Apprenticeship boost from business is heartening, and we are working to make sure that businesses continue to have access to support to ensure we can continue building the skills pipeline in years to come.
Action: BusinessNZ submitted on Workforce Development Council OIC, and is working with officials on governance for Worforce Development Councils and Regional Skills Leadership Groups.
Outcome: BusinessNZ immigration and skills manager Rachel Simpson is working to accelerate workforce planning to meet skill challenges.
Export & Trade
Research and Development Tax Incentives
Published: April 27, 2021
Issue for Business: ExportNZ has heard from many businesses about the challenges they are facing when applying for the new Research and Development Tax Incentives. Businesses that have previously been granted Callaghan Growth Grants are finding they are being turned down for the R&DTI. The tax incentives were supposed to remove costs and encourage more R&D, but businesses are finding that are needing to use ‘the big four’ consultants to apply. The main issue is not with the legislation, but with how the legislation is being interpreted with not enough emphasis being placed on the development, and too much emphasis on the research being ‘new to the world’ (which is difficult and costly to prove).
Action: ExportNZ has tabled the issues with the productivity commission, which is exploring this issue as part of their ‘frontier firms’ paper. Export NZ has collected feedback from businesses on this issue via a survey, and collated feedback. It has also discussed this issue with Minister Nash, and Minister O’Connor in a meeting, and have sent a file note with feedback to them. ExportNZ’s Catherine Beard is meeting with Minister Woods to discuss this issue further. BusinessNZ CEO Kirk Hope is set to meet with the CEO of IRD to discuss the issues with implementation.
Outcome: Minister’s office has acknowledged the issue and has made some changes, so we expect conditions to improve. The resolution of the issue is ongoing.
Export & Trade
Non-tariff barriers for processed food exporters
Published: April 27, 2021
Issue for Business: Setting up a food and beverage business for domestic supply under the Food Act is relatively straightforward, when these businesses decide to try exporting, they will experience a world of regulatory pain. This is due in large part (ExportNZ members believe) to the regulations for food exporting, which have been written to suit exports of primary sector commodity food. While it works for primary, meat, dairy, and seafood, for any business that tries to create a food export that uses any of those ingredients and add value to them, will find themselves burdened by regulations and costs. If smaller companies are required to co-invest for things like market access or to get regulatory attention they are never prioritised in a model that makes decisions based on the value of the sector. Meat, dairy or horticulture, which are doing large volume and value as sectors, will always trump the diversity of SME added value exporters. ExportNZ believes the cost recovery model used by MPI does not work for SME added value exporters.
Action: ExportNZ has had various meetings with MPI senior officials regarding this issue and how MPI can better support value add food and beverage exporters. ExportNZ met with Minister O’Connor to discuss this issue.
Outcome: MPI has appointed a processed food ‘champion’ and has drafted a food safety letter that exporters can use with overseas customers to provide added value.
Energy
Compliance Framework: Electricity Consultation Paper
Published: April 23, 2021
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: Submission from BusinessNZ Energy Council The electricity sector needs a fit-for-purpose governance framework to ensure the market is functioning efficiently. MBIE is consulting on the Electricity Authority’s compliance framework which was established more than 20 years ago. The consultation tests changes to the enforcement functions of the Authority, the definition of breaches and penalty cost, as well as some administrative arrangements.
Energy
Climate Change Commission’s 2021 Draft Advice for Consultation
Published: March 29, 2021
Issue for Business: New Zealand is committed to reaching net zero emissions (of long-lived gases) by 2050
Outcome: Submitted on the Climate Change Commission’s Draft Advice on Sunday 28 March.
Environment & Infrastructure
Climate Change Commission’s final advice compared to BusinessNZ’s position
Published: March 25, 2021
Action: BusinessNZ consultation online workshop held on 25th February 2021. This included BusinessNZ's initial view on the CCC draft advice and then there were facilitated breakout rooms focusing on Transport, Heat, Industry and Power (HIP), Land (Agriculture, Forestry and Waste) and Enabling and budget recommendations.
Employment Relations
The Holidays Act
Published: January 27, 2021
Issue for Business: From around 2014 it became apparent that many employers were not applying the Holidays Act correctly when calculating Holiday Pay. Arrears in many cases totaled tens of millions of dollars. Previous reviews aimed at clarifying the current Act pointed to systemic problems. In late 2018, following a joint approach from BusinessNZ and the NZ Council of Trade Unions, the Government commissioned a full review of the Holidays Act. Whilst the Government received the recommendations of the Holidays Act review Working Group, it took no action until 2021. The Government has agreed to amend the Act in line with the recommendations of the Working Group Separately from the review, the Government has chosen to make two additional changes not supported by BusinessNZ, and outside the terms of reference of the review of the Act. These are; • increasing the minimum sick leave entitlements • introduction of a new Matariki public holiday Still further changes are imminent via a private members bill that that introduces an additional category of bereavement leave for instances where an employee has suffered a miscarriage. While these are all valid reasons for people to take leave, the creation of additional entitlements creates additional costs for employers at a time when even small increases are significant. BusinessNZ estimates that the introduction of additional sick leave and Matariki will remove approximately 8 million person days per year from national productivity.
Action: BusinessNZ submitted on the Amendment Bill
Outcome: The report of the Holidays Act Task force was released on 23 February 2021, having been accepted by Cabinet in its entirety. The Holidays (Sick Leave) Amendment Bill is currently in the Select Committee stages in Parliament, while a Bill to enact Matariki is expected later this year.
Export & Trade
Climate Change Commission’s draft advice to government
Published: January 16, 2021
Issue for Business: ExportNZ has submitted the Climate Change Commissions' draft advice to Government. The key message from ExportNZ’s submission is that the Climate Change Commission’s draft consultation does not give us the level of detail needed to get this issue in front of small to medium-sized exporters and manufacturers in New Zealand. We need to know what the various options mean in terms of costs for business. The costs are likely to flow through to business through various channels, such as the cost of electricity, fuel, and the cost of raw materials and goods particularly for companies who use energy-intensive input products such as steel, aluminum, cement etc. The Commission’s draft advice does not provide that level of detail. Until we get that detail it is hard for us to properly engage small to medium size businesses and get their feedback. The feedback we have heard already is that electricity prices are going up around 300-400%.
Action: ExportNZ met with Minister Woods to highlight its main concerns with the proposals, as well as some anecdotal feedback from businesses on issues such as the already increasing cost of electricity.
Outcome: Submission delivered
Economy
Options for Establishing a Consumer Data Right in New Zealand
Published: October 19, 2020
Submitting To: Ministry of Business, Innovation and Employment (MBIE)
Issue for Business: Given where the use of consumer data is heading globally, we believe there are economic opportunities for New Zealand if the introduction of a Consumer Data Right (CDR) is done effectively and efficiently, and most importantly provides a pathway for innovation. Any future steps must consider the needs, concerns and opportunities for the business community. Overall, BusinessNZ agrees with the notion that individuals and businesses should have greater choice and control over their data.