Business, COVID-19, and the 2020 election
Wellington, 11 September 2020 — Most businesspeople approve of the Government’s handling of the COVID-19 outbreak, but many are uncomfortable with New Zealand’s resultant debt. And business wants a plan for raising economic performance to deal with Covid fallout.
The key findings of the Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ* were presented at the virtual Deloitte and Chapman Tripp Election Conference hosted by BusinessNZ in Auckland today.
This year’s survey shows a clear view by business that the Government has done well in its initial response to the COVID-19 situation. There are mixed feelings about whether the Government has spent the right amount on business support, but there is strong support for the wage subsidy and leave schemes.
Looking ahead to the period of COVID- and post-COVID recovery, businesses want to see the Government focused on economic well-being, with a coordinated plan for recovery that includes building infrastructure.
For the general business environment, businesses want to see the regulatory burden on business reduced, the RMA overhauled, and 90-day job trials allowed for all businesses. A large majority don’t want tax increases.
Deloitte Chief Executive Thomas Pippos says, ”The survey defines the areas of interest to New Zealand business. This year’s results show a clear focus for future governments, even with the high levels of uncertainty caused by COVID-19.
“There is an understanding that as a country, we are dealing with an unanticipated and disruptive situation. Overall, survey results suggest there is general support for the actions taken by the Government to date in dealing with the COVID-19 pandemic which is the key positive the Government can take from the survey findings.”
Chapman Tripp Chief Executive Partner Nick Wells says, “With little sign of the pandemic easing in the short term, and an uncertain prospect of a vaccine, our collective focus needs to be on enabling economic resilience for the long haul, while protecting our borders and remaining vigilant. COVID-19 has changed so many aspects of the old normality, but change delivers both disruption and opportunity. What the results of this survey show, is that amongst the business community there is appetite to embrace these challenging times as an opportunity, and usher in policy and legislative change to facilitate economic recovery.”
BusinessNZ Chief Executive Kirk Hope says the Election Survey results reveal where businesses are most impacted by the consequences of the COVID-19 pandemic and highlight the importance of Government policies for recovery.
“It is critical that the voice of business is heard in post-COVID planning and management,” Mr Hope said.
Key findings in the 2020 Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ:
For the recent COVID-19 period –
- COVID-19 response – 71% think the Government has done a good or excellent job of handling the COVID-19 outbreak
- COVID-19 business support – 43% say the Government is spending the right amount; 26% say it’s spending too much; 17% say it’s spending too little
- Most effective COVID-19 initiatives – wage subsidy and leave schemes 78%; small business cashflow scheme 55%; fast-tracking RMA for shovel-ready projects 41%
- COVID-19 debt – 60% are uncomfortable and 33% are comfortable with NZ’s debt reaching 53% of GDP by 2023
Over the short- to medium-term and during Covid recovery –
- Tax – 91% don’t want higher personal tax; 88% don’t want higher corporate tax
- Economic well-being – 86% say economic well-being should take priority over cultural, environmental or social well-being during COVID-19 recovery
- Building infrastructure – 80% think this is a useful mechanism to help the economy recover from economic shock; 70% says central and local government should borrow to directly fund infrastructure development
- RMA – 80% say recent fast-track changes to the Resource Management Act show the Act needs a full overhaul
- Regulatory burden – 79% say more should be done to reduce regulations on business as part of ongoing COVID-19 recovery; 65% say Government processes for developing regulatory change aren’t satisfactory
- 90-day trials – 73% say reintroducing 90-day job trials would benefit their business
- Post-COVID planning – 65% say the Government doesn’t have a coordinated plan for raising NZ’s economic performance
The complete results of the 2020 Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ can be found here.
Commentary on the Election Survey: Gauging the Winds of Change by Deloitte and Chapman Tripp is here.
*The Deloitte and Chapman Tripp Election Survey hosted by BusinessNZ in July 2020 surveyed 1,193 businesses of all sizes in all sectors and regions of New Zealand
For more information, contact:
Kathryn Asare, Communications Manager | BusinessNZ
Phone 021 555 744
Laura Barron, Communications Advisor | Deloitte
Phone 09 303 0744
Diana McNae, Senior Communications Manager | Chapman Tripp
Phone 09 357 9174
Deloitte brings together more than 1400 specialists providing New Zealand's widest range of high-quality professional services. We focus on audit, tax, technology & systems, strategy, performance improvements, risk management, corporate finance, business recovery, forensics and accounting services.
About Chapman Tripp
Chapman Tripp is a dynamic and innovative commercial law firm at the leading edge of legal practice in New Zealand. With around 60 partners and more than 400 staff across offices in Auckland, Wellington and Christchurch, the firm supports clients to succeed across industry, commerce and government.
The firm is known as the ‘go to’ for complex, business-critical strategic mandates across the full spectrum of corporate and commercial law. Chapman Tripp’s expertise covers mergers and acquisitions, capital markets, banking and finance, restructuring and insolvency, Māori business, litigation and dispute resolution, employment, health and safety, government and public law, privacy and data protection, intellectual property, media and telecommunications, real estate and construction, energy, environmental and natural resources, and tax.
The BusinessNZ Network is New Zealand’s largest business advocacy body, representing the majority of New Zealand private sector companies as members or affiliates. BusinessNZ divisions cover business interests across a wide range of sectors including the Major Companies Group, ExportNZ, ManufacturingNZ, the Sustainable Business Council, BusinessNZ Energy Council and Buy NZ Made.