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Businesses have criticised yesterday’s Budget, saying it represents a missed opportunity.
Finance Minister Grant Robertson’s first Budget for this parliamentary term, announced yesterday, did not provide much for the business sector.
The Government announced an ACC-like scheme for people who lose their jobs.
The Social Unemployment Insurance (SUI) scheme would support workers to retain about 80% of their income for a period after they lose their employment.
It also announced it would invest $44million over the next two years into continuing the Digital Boost scheme that would help with business training courses for SMEs, and a new digital advisory service.
The programme would assist 30,000 SMEs, and the advisory service would support 15,000 SMEs to change their businesses per year, Minister for Small Business Stuart Nash said.
However, businesses are disappointed at the lack of focus on growing the economy and feel "largely overlooked".
Otago Southland Employers Association acknowledged the investment into training, digital skills and the SUI.
But its chief executive Virginia Nicholls said businesses faced significant increases in costs and there was nothing in the Budget to encourage them to continue to invest.
Restrictions on skilled labour and energy supply constraints were also increasing costs and affecting business activity, Mrs Nicholls said.
The lack of investment into business was "not surceasing", Southland Otago Regional Engineering Collective chairman Gareth Evans said.
"I don’t have a good picture of what they’re trying to invest in and if you link this Budget with their stance on immigration, I don’t see how businesses are supposed to grow with no specific support and no access to skills and labour costs increasing," he said.
Start-up Dunedin’s General Manager Rachel Butler would have liked to see more government support for early stage start-ups and social enterprises to help address New Zealand's productivity goals.
"We're seeing high growth Kiwi start-ups succeeding internationally and we need to continue to nurture our regional ecosystems.
"We know our entrepreneurs, innovators and risk-takers will help to address economic, social and environmental problems. Let's back them," she said.
Budget 2021 had largely overlooked the role of business in the country’s economic recovery, Canterbury Employers’ Chamber of Commerce chief executive Leeann Watson said.
"Rather than taking a balanced approach within this Budget on societal issues and the economic recovery and rebuild, it feels like the Government has taken an either/or approach.
"In order to focus on some of the significant issues we face in New Zealand, such as around child poverty, affordable housing and, of course, climate change, we need to have a strong economy, which is underpinned by our business community," Ms Watson said.