themainreport.co.nz Your Weekly Source of New Ideas & Trends in Business en Copyright 2018 The Main Report Group Wed, 07 Feb 2018 03:00:02 +0000 30 HTTP://themainreport.co.nz/current_issue.php?itemid=580 Change is crucial in business -- it keeps people on their toes, it creates new ways of doing things, and it keeps the wheels of commerce turning. It is also crucial in politics, and the impression the new Govt here has already made shows how stale things had become under the comfortable old National Party regime. The politics of conservative Govts is based around lack of change, of laissez-faire. It is helpful for a while, as businesses get comfortable and know what to expect. But to really push change, to drive a country and an economy forward takes an administration capable of stirring the pot -- of pushing things in new directions. There was controversy over the way the Ardern Govt was created, but now it is in power, people are happy and waiting for the inevitable changes of direction with anticipation. Activist Govt is good for a country, and the measure of this is how much activism survives when the activist Govt slips into business as usual mode and is voted out. In NZ it is usually a lot. Regular Wed, 29 Nov 2017 20:20:00 +0000 themainreport.co.nz/Regular/580 HTTP://themainreport.co.nz/current_issue.php?itemid=574 Will NZ see the light at the end of the tunnel and make the most of its natural resources, or will the country bury its head in the environmental quicksand and simply argue all resources development is bad for the environment? We suspect the latter, as the make-up of the Govt will make it very hard for a resources company to hit a home run and get from discovery to production. But NZ needs the income from a big resources find, and we have a huge gas field waiting to be developed. The Govt could take the bull by the horns and get this moving. But there is little hope of this while the green lobby exercises a lot of sway and carries out very effective lobbying against such developments. What the Govt, business and science need to do is come up with a plan whereby resources can be accessed and commercialised and the environment is not threatened. If this challenge can't be met, there is little hope of a large-scale gas or minerals industry in NZ in the future. Regular Wed, 22 Nov 2017 20:05:00 +0000 themainreport.co.nz/Regular/574 HTTP://themainreport.co.nz/current_issue.php?itemid=569 The Govt can chalk up its part in getting a new TPP trade deal over the line in Vietnam as a victory. Doomsayers claimed the Govt's plans to ban foreigners from buying houses in NZ would be a game breaker for the 11 nation deal, but it has been accepted -- perhaps an indication of how pointless the gesture is anyway. So the deal is done. Now for the tough part. This Labour-led Govt is a coalition -- Labour's partners hate the TPP and are not wild about many aspects of globalisation. Can the Govt present a unified front to get the deal over the line in the House or will we see the unedifying sight of Labour needing National's support to get the deal done? Is the new TPP really the right move? With the US out of the picture, its plans to use it as a means of curbing China's ambitions are out the window. The proof of this deal will be in the benefits it brings to the NZ economy. The China FTA has worked wonders. This bigger, more unwieldy agreement may be less economically effective. Regular Wed, 15 Nov 2017 20:29:00 +0000 themainreport.co.nz/Regular/569 HTTP://themainreport.co.nz/current_issue.php?itemid=561 The new Govt is not wasting any time putting its social agenda into action. The extension of paid parental leave is one such move. Employers are already saying in a tight labour market it will make getting cover for those on parental leave a lot tougher. The tight labour market will be with us for the foreseeable future too, because when the new Govt's migration brakes go on, there'll be even fewer workers to fill in the gaps in employers' rosters. The trick is to get the best for your business, and flexitime is looking like a good way of making your workplace family-friendly and enticing for potential workers. Top CEOs agree it is the way forward. In a world where there are critical time pressures for everyone, flexitime means staff are there when they are in the best possible state to actually do a decent day's work, and have the incentive of more time to enjoy family and out of work pursuits at a time they choose. It is a positive for both. Regular Wed, 08 Nov 2017 20:23:00 +0000 themainreport.co.nz/Regular/561 HTTP://themainreport.co.nz/current_issue.php?itemid=556 We warned last week this Govt would not sit on its hands and let the market solve problems if it isn't doing it fast enough. This is a new beast for NZ -- we haven't seen a truly activist Govt this century -- and the last radical changes were made decades ago. Jacinda Ardern's Govt is going to shake things up -- nothing is immune, and business will have to adapt. The Govt has given no signs it is "anti-business," but it will probably take less of its cues from the business lobby. What does this mean for you as a businessperson? It means being swift and nimble, it means making sure you can ride through the changes and take advantage. The impulse for many businesses will be to lift prices. This may be short-sighted -- not only is this inflationary, it will also make local prices look even higher when compared with goods accessible via the internet. Businesses must think smart -- lift productivity, innovate, curb costs, and look for chances the new administration will present for forward-thinkers. Regular Wed, 01 Nov 2017 20:14:00 +0000 themainreport.co.nz/Regular/556 HTTP://themainreport.co.nz/current_issue.php?itemid=551 The country is certain to head off in a new direction under the newly announced Labour-NZ First-Green Party Govt. One of the things to watch out for is the new Govt's clear distaste for capitalism and neoliberalist views. The new reality is there will be no laissez-faire Govt as there has been for the past nine years, with the Govt glibly declaring the "market" will decide what happens. The new Govt is set to be more activist and this means businesses must prepare. Businesses need to be ready to have the Govt intervene much more readily than in the past few decades. NZ has been in the thrall of free market ideology since 1984. The market has been in the driving seat even when it has been clear it could provide no answers to issues like the housing crisis. The new Govt won't allow situations where social wellbeing are at stake to be dictated by the vagaries of things like share trading. Business will thrive under the new regime, but the rules have changed. Don't be caught out. Regular Wed, 25 Oct 2017 20:20:00 +0000 themainreport.co.nz/Regular/551 HTTP://themainreport.co.nz/current_issue.php?itemid=545 A message to the incoming Govt -- don't forget crucial infrastructure. It is clear the new administration will still have to deal with NZ's infrastructure deficit. How it does it is yet to be seen. There is clearly a massive backlog of projects, and things which need to be done to make sure NZ maintains its place at the top table of economies. Roads are clearly needed, but attention to existing road safety and maintenance are needed as well. Problems created by events such as the closure of the Manawatu Gorge should have been foreseen long ago. The country's rising road toll is an end product of poorly designed and constructed roading networks. A new administration, while not having a totally clean slate, can bring new eyes to bear on this crucial element of the country's future growth. Hopefully, it will not be found wanting. Regular Wed, 18 Oct 2017 20:16:00 +0000 themainreport.co.nz/Regular/545 HTTP://themainreport.co.nz/current_issue.php?itemid=540 A strong sharemarket is a sign of a strong economy -- and NZ's is booming. The NZX50 hit record territory in the past week, and there's no sign of a slowdown. Interestingly, there is no queue for IPOs. New firms going public in NZ are as scarce as hen's teeth. This suggests business doesn't trust the stockmarket, and investors in shares are a small group of high rollers and fund managers. The sorts of investments which are leading the market higher are also indicative of the country's one-dimensional economy. Dairy and tourism -- if a logging or meat company were on the board they would be leaders as well. As for investors, they are in only one place -- property. NZers got savagely burnt in the '87 crash and aside from having a KiwiSaver account, Joe Public seems to stay well away. It's a shame, as the market has bettered 10% returns over the past five years and is up 16% this year. But for the man in the street, there's nothing quite like the tax-free gains from bricks and mortar. Regular Wed, 11 Oct 2017 20:36:00 +0000 themainreport.co.nz/Regular/540 HTTP://themainreport.co.nz/current_issue.php?itemid=534 The immigration policy of the next administration is going to be vital for the country's future. Acquiring skilled staff is a constant in the lists of problems being encountered by businesses, and they are increasingly seeking migrants to fill these gaps. In the short term, migrants are the solution -- but in the long term questions must be asked -- and answered -- about why this is such a perennial problem. There are failures across the system. Failures in the highly marketised education system, where trainers and tertiary providers are offering qualifications not needed by industry, but which attract students, and therefore dollars. Failures in industry with employers refusing to take responsibility for training workers to the level needed, and failures in policy, with successive Govts unable to plan for the future properly. Pointing the finger at Govt all the time will not solve the problem. This is economy-wide and the solutions must be broad-based and sustainable. Regular Wed, 04 Oct 2017 20:30:00 +0000 themainreport.co.nz/Regular/534 HTTP://themainreport.co.nz/current_issue.php?itemid=529 Whatever stripe the next Govt, whatever combination of strange bedfellows which emerges from coalition negotiations, there will be some serious work to do when it finally takes up the reins of power. All the lobby groups will be screaming to try to get their sector the attention they believe it deserves. It is hoped in the resulting hullabaloo the Govt will realise its obligations to the country's engine room, and make sure business is properly looked after. One of the biggest problems facing all businesses, large and small is getting skilled workers. This is an area the Govt must address -- and it is of serious concern if immigration becomes a political football to the detriment of business. Skilled staff are vital to all enterprises, and as the EMA says, the labour shortage is something which has to be addressed quickly. Cutting off supplies of trained workers is certainly not the answer. It will stifle the growth many companies are generating. Regular Wed, 27 Sep 2017 20:32:00 +0000 themainreport.co.nz/Regular/529 HTTP://themainreport.co.nz/current_issue.php?itemid=523 NZ made itself look a bit of a global laughing stock with the revelation the country's biggest city is fuelled by just one tiny, 168km pipeline. The rupturing of the fuel artery from Marsden Point shows how ludicrously out of sync with reality our infrastructure is, and what a lack of resilience. It is probably quite a surprise to many Aucklanders this is how the city's transport is basically run. The Govt -- whatever its stripe -- must get to grips with these problems and either sort out a backup pipeline or make sure there is some sort of fallback position. This country revolves around overseas links. People expect to be able to travel when they want, and to have their goods moved in a timely fashion. A single 25cm diameter pipeline is a huge ongoing risk. Air travel is the main victim this time, but petrol stations are also feeling the pain -- what if Auckland's road network were entirely crippled by a similar incident? People deserve better -- the Govt should make solving this situation a priority. Regular Wed, 20 Sep 2017 21:18:00 +0000 themainreport.co.nz/Regular/523 HTTP://themainreport.co.nz/current_issue.php?itemid=518 If you haven't already voted, you will be doing so very soon, and this election is looming as a crucial one for business. For the first time in years, it has the potential to change the country's fortunes. It is not an election which will bring radical change -- no "revolution" is brewing here. National and Labour are not a million miles apart -- both are centrist and both are prepared to cherry-pick the other's best policies if it looks like it will get them into power or help them maintain it. What business must do as this election looms is read between the lines. What is in the parties' policies which is left unsaid? -- who are the people behind the figureheads who are driving policy and what ideological forces drive them? In terms of practicality for business, it is clear the two major blocs have ideological differences. These are shown in their views on transport and the environment. Which bloc is best for business? You must decide by Sept 23. Regular Wed, 13 Sep 2017 21:40:00 +0000 themainreport.co.nz/Regular/518 HTTP://themainreport.co.nz/current_issue.php?itemid=512 NZ has always been a leader in women's rights -- or if not at the front, we've been close behind, which is why is it is good news to see the gender pay gap closing more quickly. In this day and age, when it is de rigueur for both men and women to work, and there is a huge skills shortage, this gap should be narrowing faster. In reality, it shouldn't be there at all, and it surely won't be too much longer before the Govt decides this and legislates. Businesses should simply pay workers the going rate for the job, not a rate based on gender. NZ desperately needs wage growth to stimulate the economy. This would be a good way of getting it -- positive in terms of the country's reputation, and a good move to get wages heading in the right direction. Business shouldn't wait to have this forced on it. It will only be a matter of time before this type of discrimination goes the way of all other discrimination. Regular Wed, 06 Sep 2017 21:20:00 +0000 themainreport.co.nz/Regular/512 HTTP://themainreport.co.nz/current_issue.php?itemid=507 The Govt's new education policy -- giving every primary school child the chance to learn a second language -- has had a mixed reception. The Asia NZ Foundation says NZ employers want staff with Asia skills, including languages. However, Labour argues the policy hasn't been costed properly. Others say pupils should get their English, maths and science right before dipping into other languages. English is certainly important - The Economist credits its subscriber growth to its global approach and that it publishes in English, the global language of business. As the country heads into the most competitive election in years, personalities are overpowering policies. What policy is being delivered, except maybe in transport, seems to be tinkering. National's second-language policy appears poorly thought out. Instead of ensuring enough schools for the growing population, fixing school buildings or even reforming the tertiary system, we get this. The other parties are just as bad. Regular Wed, 30 Aug 2017 22:12:00 +0000 themainreport.co.nz/Regular/507 HTTP://themainreport.co.nz/current_issue.php?itemid=501 It's a long time since transport was a key issue in an election campaign. In fact you might have to look back to the days when NZ Rail was being sold off to find another era when it was such an issue. It is true congestion and poor roads are a blight on all of us and something has to be done. But is regional pork barrelling the answer, or should there be a more concerted national transport strategy including all modes? Of course, roads are important, and most of our goods move by truck. But there are cases to be made for rail as well, and what about coastal shipping, which is the poor cousin in all of this. It is nice to see National and the other parties realising we have fallen well behind in terms of key infrastructure. But it is vital we think not five years into the future but more like 55 years. We may not need a 22nd century transport system now -- but we'll need it one day. Let's put some thought into future transport. Regular Wed, 23 Aug 2017 21:30:00 +0000 themainreport.co.nz/Regular/501