Employers in Otago-Southland are urging the incoming government to help them fix the skills shortages the region is experiencing and help create the right environment in which to do business.
Business New Zealand and the New Zealand Chambers of Commerce have both released their pre-election wish lists and although the priorities are slightly different for both organisations, the theme remains constant.
Otago-Southland Employers Association chief executive Duncan Simpson said the importance of investing in innovation, the lack of effectiveness of government expenditure and initiatives in driving economic growth were other key themes for his members.
In the Southern region, nearly 41% of respondents to the Business NZ survey cited skill shortages as their biggest concern, compared to 24% nationally.
The second highest issue was the business environment in general, with 25% of local businesses mentioning it, compared to 20.1% across New Zealand.
That related principally to issues around the Employment Relations and Holidays Acts and noted that complications with the latter around Otago Anniversary Day and Easter Monday had affected many local enterprises this year.
"Faced with these basic concerns, it is hardly surprising that we appear to be less focused on infrastructure and trade-related matters than the rest of the country.
"The main priorities for the region are clearly getting hold of the right people and building organisational effectiveness within the constraints of current employment law."
Local responses indicated employers wanted better incentives for education providers to partner with business, easier access to skilled migrants and more investment in people and skills to boost productivity, Mr Simpson said.
The chamber election manifesto was aimed at getting political parties to deliver policies to improve productivity and grow the economy, Otago chamber chief executive John Christie said.
"We have decided to focus on the policies needed to correct this poor productivity performance."
In general, the business community was not looking for special favours from government or for intervention from government in the economy.
Instead, it wanted sound, stable policies which provided a platform for economic growth and an environment where barriers to business success were removed.
"That said, there are things the Government can do to create a better business environment for productivity growth."
The chamber suggested a policy programme built around investment in infrastructure, lower marginal tax rates, reductions in government-imposed costs on business, strong external linkages and a flexible labour market, Mr Christie said.
Policy proposals from the chamber included:
• Leaving the existing monetary policy framework alone.
• Reviewing all government spending to help eliminate waste.
• Reducing the top personal tax rate as a priority.
• Increasing infrastructure investment, including the use of more private sector investment.
• Establishing a productivity commission.
• Removing restrictions on thermal electricity generation.
• Reviewing the Resource Management Act.
The Government should consult the business community before taking decisions on the location of new overseas posts.
High on the wish list for many businesses were tax cuts, he said.
The tax cuts announced in the recent budget were most welcome, but more were needed if New Zealand was to retain its international competitiveness against countries like Australia.
"Rather than a pre-election bidding war on how big each party's tax cuts would be, we would like to see parties present carefully considered tax packages that aim to boost the economy by improving the incentives to work, save and invest."
Reductions in tax rates, rather than a lift in tax thresholds, were most important, because such incentives were increased with lower marginal tax rates, Mr Christie said.
Mr Simpson said his survey indicated that the impact of government expenditure and interventions was seen as less effective in the South.
Similarly on infrastructure, although the South was "generally happy" with its ports, it was concerned about roading and had much higher levels of concern than the rest of New Zealand over water, energy, rail and broadband.
The future of energy supply was of concern to 93% of the local sample, compared with 91% nationally, with a worrying 97% concerned that it might adversely affect future operations.
