Comment: What's needed in the Budget to kickstart our economy

Rotorua Chamber of Commerce president Kiri Tahana. Photo / Supplied

COMMENT

The 2020 budget is awaited with interest. It brings an opportunity for the Government to demonstrate some seriously innovative thinking about the best ways to stimulate a wounded economy and to help build a better more sustainable future.

The hardest-hit businesses are those directly impacted by global lockdowns including tourism and secondary/service/retail businesses. While borders may open, mindsets will be changed and it will take time to return to pre-Covid travel.

The budget needs to be innovative and to focus on stimulating recovery across all sectors while incentivising employment, sustainability and being authentic to New Zealand's values. This does not necessarily mean that the Government should focus the whole budget on "tide-over" measures to businesses like retail, tourism and hospitality.

It's time to "think differently". No one will argue against stimulating things like domestic tourism and Australian visitors as a key part of the plan. These certainly need help, but this is also an opportunity to support our primary sectors to be sustainable and "add value".

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A more strategic approach might be to help those industries which have latent potential to grow quickly, to do just that - grow quickly.

Wood manufacturing is a classic example. We have already heard about the 4000 regional jobs which will result from a 25 per cent lift in the wood share of the NZ building and construction market. The adoption of a wood-focused procurement policy by central (and local) government will make a material difference.

It will cost the taxpayer nothing but will bring significant public good and environmental benefits. The NZ-grown raw material is there to replace the imported alternatives.

With the fast-tracking of construction planned by the Government and most councils, now is the time for strong leadership to kick down the barriers and show the way! Charity starts at home.

While we are talking about fast-tracking building and construction, how about some planning simplification, red tape cutting and support for sustainable property investment, including to address New Zealand's housing problems?

Could we expense significant rebuilding costs where these are required for inner-city redevelopments and are part of the post-Covid rebuild? How about earthquake and fireproofing of older buildings to meet modern standards of safety? What about access to special capital to facilitate and fast track this investment?

This is also a time for the Government to invest in incentivising environmental best practice so we can continue to grow our significant primary sector exports while protecting the whenua. Government leadership and financial support to enable this by fast-tracking the clean water and clean air goals would be helpful. I refer to things like riparian strips around waterways, Special Natural Areas, QE11 Trusts and more research to better understand and manage the true impact of methane (V's Carbon).

The budget must invest in the long term in those things that will make a difference not only for us but for future generations. It must also reflect Aotearoa, our greatest asset is our uniqueness and the world is seeking authentic experiences, kai and manaaki so now is the time to invest in a new way.

Finally, the Covid-19 vaccine. We would like to see how NZ is intending to maintain its reputation to move quickly and be at the forefront of this pandemic by ensuring we get access to the vaccine as quickly and safely as we can.

Kiri Tahana is the Rotorua Chamber of Commerce president.