Businesses Backed Through Investment Boost
Business Canterbury welcomes the delivery of Budget 2025, which appropriately signals the importance of business in the recovery of our economy with the centrepiece 'Investment Boost' initiative.
Business Canterbury Chief Executive, Leeann Watson says, "The key measures of success in this budget for businesses were, does it provide a platform for growth, does it help keep inflation and interest rates low, and does it continue to address our infrastructure deficit."
"Businesses have been hesitant to invest and grow recently, despite growing confidence in the future strength of the economy. The 'Investment Boost' initiative announced today will provide an incentive and give businesses confidence to activate their growth plans, knowing they can reduce the financial impact at a time when cash is still tight.
"This is particularly important for small businesses, which contribute 40 per cent to GDP and employ 600,000 New Zealanders.
"We know that in certain sectors like manufacturing, automation and efficiency gains come at a significant cost. 'Investment Boost' will be a great platform for productivity gains that will enable growth right across the economy. It is business growth that will drive economic recovery, job creation and income growth for all New Zealanders.
"Infrastructure will continue to challenge us as a growing region. Infrastructure deficits require a constant and expanding pipeline of work so that when the economy turns a corner, we have the infrastructure in place to support it.
"Overall, this is a sensible Budget that does not jump the gun on growth, with sensible spending limits and reprioritisations made where spending was not getting the best bang for buck.
"Businesses have already been budgeting this way, doing more with less and spending smarter, not more.
"While this was clearly signalled by the Minister in pre-Budget announcements, it was important that restraint in spending was followed through with, as a key role for the government right now is providing the conditions that keep interest rates and inflation falling and stable."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
1News
an hour ago
- 1News
How do average New Zealanders compare with the Rich List?
New Zealand's richest people might be getting wealthier, but the same can not be said for the rest of us. The National Business Review released its annual rich list this week, which showed the country's wealthiest people are collectively worth more than $100 billion, up from $95.55 billion last year. But, over 2024, the net worth of all households declined by $4.185 billion. Infometrics chief forecaster Gareth Kiernan said average household wealth had fallen since the end of 2021, which was unsurprising given that housing made up about half of household assets. House prices remain well below their 2021 peak. ADVERTISEMENT Infometrics chief forecaster Gareth Kiernan (Source: He said the super rich would have a smaller proportion of their wealth in property. "If you look at the numbers during 2024, aggregate (gross) financial assets went up 1 percent, while aggregate housing and land value went down 0.8 percent. Or since the end of 2021, aggregate financial assets went up 7.5 percent, while aggregate housing and land value went down 8.6 percent. So the more of your money during that time you've got in financial assets, and the less in housing, the better you will have done. "Of course, the portfolios of the super-rich are probably not going to be as simple as financial vs property assets - often they will have a higher-than-average concentration of their assets in companies that they directly or indirectly operate and/or control. This exposure or concentration doesn't mean that they are immune to market fluctuations, but it potentially provides them with a measure of control not available to retail investors, whose best strategy to minimise their risk is to have a diversified portfolio." He calculated the average household net wealth was $1.2 million but said that average was pulled up "massively" by the wealthiest households. New data is due from Stats NZ in August but in 2021, the median wealth was $397,000. Those aged 25 to 34 had median net worth of $34,000 and those aged 35 to 44 $117,000. Simplicity chief economist Shamubeel Eaqub agreed financial wealth had increased — boosted by growing KiwiSaver balances — but housing wealth had dropped and debt had increased, leading to lower net worth overall. "It's not so much that nothing has improved because financial markets have actually created a lot of wealth, it's our highly leveraged bet on property that's held us back." ADVERTISEMENT Economist Shamubeel Eaqub told Breakfast New Zealand will need to have some "tough conversations" to the "fundamentally broken" way the country funds infrastructure projects. (Source: 1News) He said the richest people in the country would probably have made more of their money from businesses. "A lot of them will have ultra-successful businesses, so it's a big bet on some things and then once you've got wealth it's often professionally managed." But he said more New Zealanders now had professionally managed money than ever before with KiwiSaver and other managed funds. "So there's a glimmer of good news in there, but I think that's kind of largely offset in the last few years at least by what's been happening with house prices and continued borrowing." More KiwiSaver members would now be reaching a stage where their returns were going to supercharge their balances, he said, rather than growth relying largely on contributions. "Once you've got enough savings then your money starts to work for you. The returns from your existing investments will be much more than how much you contribute from your income. That's the magic point, the inflection point."
Scoop
5 hours ago
- Scoop
Westpac NZ And Ōwhata Kōhanga Rākau Support Rotorua Whānau Into Homes
Press Release – Owhata Kohanga Rakau The first stage of the development opened in December last year, when 16 whnau moved into affordable rental properties. Last month local kaumtua moved into 20 affordable rental properties that were set aside specifically for them in the heart … Westpac NZ and Ōwhata Kōhanga Rākau Housing are celebrating a partnership which will see the delivery of a major new housing development on Māori land in Rotorua, with the latest milestone the unveiling of a new monument sign for the community's entrance. The Ōwhata Kōhanga Rākau development will deliver 93 mixed tenure homes to local Rotorua whānau through social housing, affordable rentals and shared home ownership arrangements (also known as progressive home ownership). Westpac has provided funding for the project – where 36 affordable rental homes have been completed and a further 30 homes are under construction. Westpac is also providing mortgages to help whānau purchase properties through Ōwhata Kōhanga Rākau's shared ownership pathway on leased land. Jason Rogers, Ōwhata Kōhanga Rākau Chairman, says the entrance sign's unveiling is a significant event for the iwi with whānau and kaumātua now living in the affordable homes. 'Ultimately this community will comprise 93 new, well designed warm homes on whenua Māori. Our goal has been to bring stability in housing outcomes for our people and the sign is a milestone that will strengthen that sense of connection to the whenua. This is a significant undertaking and the project will deliver much needed housing for our people and the community,' Mr Rogers says. 'Having Westpac on board as a bank partner has meant we've been able to work quickly to begin delivering the next stage of homes and we're grateful for their support. We'd also like to acknowledge the support of the Ministry for Housing and Urban Development and Armillary Private Capital, who acted as financial advisors and undertook the financial modelling for the project.' Reuben Tucker, Westpac NZ General Manager Institutional & Business Banking, says Westpac is pleased to be able to play a role in the development. 'As a bank, we're committed to supporting more New Zealanders to find a place to call home,' Mr Tucker says. 'The range of different housing options available through the Ōwhata Kōhanga Rākau development is hugely significant, especially since it is on whenua Māori. We're excited to support the aspirations of everyone involved.' The first stage of the development opened in December last year, when 16 whānau moved into affordable rental properties. Last month local kaumātua moved into 20 affordable rental properties that were set aside specifically for them in the heart of the new community. The full development is scheduled for completion next year. What is shared home ownership? These are arrangements such as shared equity, leasehold or rent to buy in which a third party – usually a Community Housing Provider, including charitable trusts and Iwi Māori groups – contributes equity or land towards a customer's first home purchase, reducing the size of the deposit they need and the size of repayments. In the case of shared equity, the model used at Ōwhata Kōhanga Rākau, the customer then pays the provider back their portion of equity at a manageable rate over time until they own the home outright. A key barrier for first home buyers is saving for the traditional 20% deposit to qualify for a home loan. Shared equity and leasehold arrangements can help buyers qualify for lending with as little as 5–10% deposit and a smaller loan to service, bringing home ownership and the benefits it provides closer within reach. At Ōwhata Kōhanga Rākau, a shared home ownership model is being used to support whānau with whakapapa (ancestral connection) to the Ōwhata and Rotorua area, helping them establish long-term security in a new home of their own. Westpac is able to provide standard residential home loans to customers participating in shared equity or leasehold arrangements.
Scoop
6 hours ago
- Scoop
3G Shutdown: What Devices Are Affected, And How To Upgrade
Article – RNZ Consumers are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the are being urged to get ready ahead of the shutdown of 3G mobile networks from the end of the year. Telecommunications Forum chief executive Paul Brislen said most New Zealanders were already using 4G or 5G-compatible devices and would not need to take any action. However anyone with a 3G-reliant phone or device may be affected, including tablets, medical alarms, security alarms, business equipment, vehicle trackers and other devices connected to the internet. 'The 3G shutdown is a positive step for our digital future, but it's important that anyone with 3G-reliant phones or devices checks now so they can stay connected,' Brislen said. Consumers can text '3G' to 550, free of charge, to check if their device will work after the 3G network was switched off. Spark announced it would close off its 3G network on 31 March, 2026 and was upgrading 3G-only cell towers to 4G and 5G technology. While affected customers would be receiving direct communication from Spark, it issued a list of common devices likely to be affected. iPhone 6 Huawei Y5 HMD Global Nokia 3310 Mobiwire SAS Pocket 2 Oppo A5 (AX5) Samsung Galaxy J2 Pro iPhone 5S Alcatel 1B Brislen said consumers who need to upgrade to a 4G or 5G compatible device should recycle their old handsets through recycling service RE:MOBILE at 'Mobile phones contain valuable materials that can be reused, as well as components that are harmful to the environment if sent to landfill.'
