New Zealand has 'productivity disease', says Business Council chair, Air NZ CEO Chris Luxon
Thursday, 8 November 2018
Business Advisory Council chairman and Air New Zealand boss Christopher Luxon says New Zealand needs to tackle its 'productivity disease'.
'We have a productivity disease across this country and many of our sectors,' he said .
'Take tourism as an example. As good as the growth has been in the last few years, when we line up the value of tourism divided by the number of people working in it we're about mid-table in the world. If we can get ourselves to the top 10 per cent of the world there's $9 billion that will come to the tourism sector, which will enable high paying jobs.'
Prime Minister Jacinda Ardern and Luxon announced the group's four priority areas on Thursday.
**READ MORE:
* Jacinda Ardern names Prime Minister’s Business Advisory Council members
* Spring's colour struggling to drown drumbeats of discontent
* Damien Grant: Air NZ CEO Christopher Luxon does not represent me**
It will focus on building New Zealanders' skills, accelerating regions, attracting high-quality investment and 'unleashing' small businesses.
Luxon said common ground had been quickly found. 'We both share the same ambition to see New Zealand succeed and are confident that we have aligned on four areas where business and Government working closely together can make a hugely positive impact not just economically but also socially and environmentally.
'I am confident that we can start to deliver the first outputs from the priority areas prior to Christmas.'
Luxon said the business community was united on wages going up.
'We've all come to the common view that in business we're all about making sure … we can improve the quality of life of all New Zealanders.'
Ardern said the work of council would help to unleash the full potential of the New Zealand economy.
'The Government is running a strong surplus, we've had the best quarter of growth in two years and unemployment is at a decade low. But we have persistent problems that hold our economy back. The Business Advisory Council will play a key role in helping to shift the economy up a gear and to unleash New Zealand's economic potential.
'Everywhere I go business raise with me skills shortages and the difficulty of hiring skilled staff. We're committed to ensuring no New Zealander is left behind in the skills transition going on in our economy. The council has plans to better match skills to work.
'New Zealand has a long-term productivity problem. It is a handbrake on the economy and we need to fix it. I'm looking forward to advice from the Business Advisory Council on how we can attract high quality investment into the productive economy.
'I have been greatly impressed by the early thinking that has been developed by the Business Advisory Council under the leadership of Christopher Luxon. The diversity of skills, industry experience and perspectives will deliver some exciting outcomes,' Ardern said.
Ardern said discussions on how R&D tax credits could be fully utilised in the lead up to its roll out were also discussed.
The terms of reference for the council sets out that it will provide high-level free and frank advice on policies that directly affect business, harness the expertise of the private sector to inform government policy and build closer relationships between government and business.
Questions the council is pondering:
- How can businesses practically demonstrate their commitment to ensuring workers in New Zealand are supported to gain new skills and transition into new jobs as the nature of work changes?
- How can business support the operationalising of micro-crediting and the fees-free policy?
- How can our tertiary institutions support this in the practical way, learning from best practice models overseas?
- How can business support SMEs and others within the business community realise the opportunities provided by R&D tax credits?
- How can New Zealand grow its base of investment capital and ensure Kiwi firms realise their potential?
- How can NZ attract quality foreign investment in a seamless way?
- Could the Government's investment funds play a more prominent role in investing in NZ infrastructure projects and businesses?
- What can business do to enhance services in rural and provincial towns?
- How can Government and business work together to unleash the potential of New Zealand's Agritech industry?
- How can Government and business work together to solve regional skills shortages?