It’s not all doom and gloom, according to a Canterbury Business survey
Business Canterbury has released its August Quarterly Canterbury Business Survey, which shows a business community remaining positive despite the ongoing wait for the light at the end of the tunnel to get closer.
Despite ongoing economic pressures, 64% of Canterbury Businesses expect the economy to strengthen over the next year. More than half (55%) plan to hire, and nearly two-thirds (59%) intend to invest in property, plant or equipment over the next 12 months.
Survey highlights:
· 64% expect the Canterbury economy to strengthen over the next year
· 55% plan to hire staff (vs. 61% long-term average)
· 59% intend to invest in property, plant or equipment (vs. 63% long-term average)
· 79% confident in their ability to manage disruption
· Top issues (In order): Consumer confidence and demand, Productivity and growth, Inflation and interest rates, Compliance costs, Cashflow and accounts receivable/payable.
Business Canterbury Chief Executive Leeann Watson says, “While still just below long-term averages for key business confidence metrics, overall positivity reflects how Canterbury operates – we don’t ride the booms and busts like other main centres, and right now that stability is our not-so-secret weapon.
“In Canterbury, businesses are being established at twice the national rate. Our regional GDP is slightly positive, while the rest of the country faces nearly one percent retraction. Right now, we are the most attractive place in New Zealand for people to live and work.
“But we know confidence alone won’t carry us forever, and it’s certainly still very tough out there for many.
“While intent to grow is strong, businesses can’t do it alone. We need growth-ready conditions shaped by both central and local government, and with local elections underway and a general election quickly approaching, now is the time to prioritise settings that enable investment, hiring and innovation.”
“Business Canterbury has recently sent a to-do list to council candidates, which clearly lays out how the business community see councils’ roles in championing business growth in our region.”
Employment Leave Act the change we’ve been waiting for
Proposed changes to the Employment Leave Act, replacing the long-criticised Holidays Act, is “The change our business community has been waiting for,” Leeann says.
“In my eight years leading Business Canterbury, no single piece of legislation has caused more frustration, confusion, and cost than the Holidays Act. It’s been a compliance nightmare, riddled with complexity, manual payroll interventions and underpayment risk.
“The Holidays Act has been under formal review since 2018 and Business Canterbury has consistently advocated for reform, so we’re pleased to see real progress finally being made.
“The current Act’s leave formulas have been patched-up and added to over the years, creating a confusing system that fits no one well – instead of formulas that work well for most situations and provide flexibility at the margins – which we think the new Employment Leave Act will achieve.
“The overcomplication and uncertainty in the current Act has led many businesses to overpay leave entitlements just to avoid falling foul of the rules.
Industries like manufacturing, hospitality, and retail, which rely heavily on casual and part-time staff have borne the brunt of the current Act’s shortcomings. The proposed changes, including hourly accrual of both annual and sick leave, calculated using a single, consistent method, will be clearer, fairer, and more practical for employers and employees.
“While the introduction of a simplified Leave Compensation Payment may increase costs for some, the trade-off is greater certainty, fewer payroll errors, and reduced administrative burden.
“One area of caution is the proposal to allow sick leave to be taken in hourly increments. This could pose operational challenges for sectors like manufacturing and hospitality, where short-notice and short-time frame cover is difficult to arrange.
“This reform is absolutely a step in the right direction and is one of several changes the Government could make to reduce the friction, cost, and risk associated with hiring.”
Business Canterbury will continue to support its members with expert HR advice as they prepare for the new legislation, which is expected to take effect in late 2028. It will also work closely with businesses during the implementation phase to ensure their systems, policies, and processes are match-fit for day one.
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