Latest news with #BusinessChamber
NZ Herald
13 hours ago
- Business
- NZ Herald
Auckland: 5 paths to prosperity for a could-be super city
Auckland unemployment is 6.1% against New Zealand's 5.2%. Economic growth for the year to March was negative: -1.3% compared with –1.1%. Only 44% of businesses are optimistic, according to the Auckland Business Chamber, down from 51% in its previous survey. And in May, Auckland Council's outreach teams counted 809 people in the city who were 'unsheltered homeless': a 90% increase since September. Fix this now, says everyone. But how? Last week the Business Chamber's CEO Simon Bridges suggested that corporates need a tax cut. He has a fine sense of humour, that man, so perhaps he was joking. Corporate Auckland has done extremely well out of the last five years. No one else has. The banks, with their record profits, have the power to drive progress. But they don't. The big 'service' companies, aka the consultancies, have the influence to make a difference, but do they use it well? As for the big energy companies, where is their shame? These companies don't need a tax break, they need a conscience top-up. I did like the way Bridges phrased his suggestion, though. As BusinessDesk reported, he said the Government needs to stir up Auckland's 'animal spirits'. Tap into the superpowers of the Super City. Very cool. And he wasn't talking about mere movement in interest rates. 'I do think,' Bridges said, 'there is an argument for fiscal stimulus that's pretty strong, actually'. Finance Minister Nicola Willis has also taken to using the 's' word. She claims they are already 'stimulating' the economy; the recent re-announcement of $6 billion of infrastructure investments was designed to make the same point. I love it when centre-right politicians talk like they're Keynesians. But what they're proposing is not enough: we need fresh thinking and a much stronger, future-focused plan. Such a thing would include a decent regional deal, which is now in negotiation, to unlock new sources of funding. And a much better working relationship with Ngāti Whātua Ōrākei: the iwi has $1.5b in assets and its own 100-year plan, but is not integrated into economic planning for the city in anything like the way Tainui or Ngai Tahu are on their whenua. Why is Auckland dragging its heels on that? What about a programme to learn from kura kaupapa, which produce academic, social and cultural results that many schools in poor parts of the city would love to match? And a stronger climate-resilience strategy, because more floods are coming. Prime Minister Christopher Luxon told RNZ on Monday he didn't see how a special package could be applied to Auckland. Really? As well as all the above, here you are, boss, a five-point plan for a prosperous Auckland you can have for free. All it needs is a spot of courage. 1. Fast-tracked transit Prime Minister Christopher Luxon (left) with NZ First leader Winston Peters and Auckland Mayor Wayne Brown, about to ride the CRL under central Auckland. Photo / Michael Craig Luxon rode a train through the City Rail Link last week and was reportedly thrilled. Also last week, the managing director of KiwiSaver fund Simplicity, Sam Stubbs, revealed that by his calculation, 30% of all KiwiSaver funds are invested locally. That's $295b available for productive investment over the next 25 years. Luxon called the CRL 'a major, major feat' that would spur $12b of investment in the economic life of the city. It was 'a bit like Star Trek', he added. And Stubbs' news effectively meant there's enough money to build many more rapid-transit lines. Imagine it: faster travel times and less congestion, boosting economic life all over the city. There are many options for new transit routes, including a second North Shore line, city centre to the airport, Botany to the airport, Westgate to Albany, Avondale to Onehunga, not to mention faster progress on the already-planned Northwest Busway and the under-construction Eastern Busway. There are also mode options for all these routes: light rail, rapid bus, even gondolas. I don't have a fixed view on which should be built first or what modes of transport they should be, except to say tunnels are too expensive, too slow to build and use too much concrete. The Labour Government failed to grasp that we need more transit as quickly as possible. What's holding National back? By the way, I mention gondolas because they are easy, fast and relatively cheap to build, the technology is proven, and they might serve very well on second-tier routes. Te Atatu to New Lynn, perhaps, or Browns Bay to Takapuna to Devonport? Set up a route, for only few million, and see if it creates proof of concept. Fresh thinking. 2. A new energy deal Bridges has been blunt about energy too. 'Energy today is a severe handbrake on business and the economy,' he wrote in the Herald. 'Before 2018, long-term energy contracts averaged $70-$80 per MWh. But since 2021 the average has been $150-plus per MWh and over the last year it's averaged a whopping $190 per MWh.' This is a nightmare for businesses and a government that tolerates it is a government that simply isn't taking economic development seriously. Bridges called for the big gentailers to have their generation and retail functions separated. Almost everyone else agrees, except the gentailers themselves. But while that's needed, it's not all we need and it's not the quickest way to a fix. Solar is now the cheapest way to generate power and batteries make it easy to store, and Auckland is perfect for it. Vast swathes of the city are covered in warehouse and factory roofs. Where are the solar panels? What about residential solar? The Government could supercharge the industry, creating jobs, providing cheap energy and shoring up supply. In Melbourne, around a third of electricity comes from solar; in Auckland, it's less than 2%. 3. Kickstart homebuilding Remember this? Houses being built in Auckland. How did a Government committed to growth allow the momentum of this to collapse? Crashing residential construction will go down as one of the biggest blunders of this Government, especially as it was triggered by the destruction of Kāinga Ora's social and affordable housing programme. Communities were undermined, many people's hopes of a new home vanished, and over the last 18 months the country has lost 17,000 construction workers. Most of the pain has been felt in Auckland. Kāinga Ora needed fixing, to be sure, but not by wrecking an entire industry. As the economy shrank in the post-Covid world, the Government should have stimulated, not retrenched. Now there's a lot to do. Incentives for the return of at least some of those workers. Ramped-up education and training, fast-tracked new projects, new life for off-site production, industry reforms to bring down construction costs. Most of all, the reinstatement of projects cancelled or 'put on hold'. Parallel importing of construction products is now allowed. That's great, but what about the rest? 4. Modern freight management Empty containers hanging about in Wiri. Photo / Alex Burton Some of our freight companies are among the most go-ahead outfits in the country, but the Government's grasp of how their industry works is stuck in the 1980s. Auckland should not be using valuable waterfront land as a freight depot, let alone for storing empty containers. And trucks should not be clogging the highways, making those roads less efficient and more dangerous for everyone else. The freight industry itself is onto this, despite a lack of leadership from the Government, the mayor or even Port of Auckland. The future of freight logistics is now located in Hamilton, where the vast Ruakura Inland Port sits alongside the main trunk line and the Waikato Expressway. It's an initiative of Port of Tauranga and Waikato-Tainui. And it won't be long before a rail line to Northport, at Marsden Point in Northland, unlocks the potential of that port. Auckland shouldn't be worried about these things. It's good that freight management in the upper North Island is evolving. But we do need a coordinated plan and Auckland needs to be part of it. We need a far more functional rail network, including a fourth rail line to get goods to inland ports and off the waterfront quickly and efficiently. Instead, most Government ministers are focused myopically on spending billions on more roads. It's a colossal waste of money. We need roads. But we could have a good road to Northland without it being a super-expensive four-lane expressway. And we certainly don't need the proposed East-West Link, a highway to link Penrose to Ōtāhuhu, replacing Neilson St. The Northern Expressway and the EW Link are both are 'roads of national significance' (RONS). But the only 'significance' of the EW Link is that it will manage the freight traffic at Port of Tauranga's MetroPort facility, located along the route. Moving MetroPort away and freeing the isthmus land for housing is a far better option. RONS like those two are to National what tunnelled light rail was to Labour: absurdly expensive, going nowhere slowly, a pointless distraction from the realistic options we have to solve our transport crisis. 5. Big events Metallica is returning to New Zealand in November. But what about all the other events we should have? Events are vital to the life of a city, for the visitors who come to spend money and for the vibe. Never underestimate the vibe. Auckland's current schedule of events includes a Springbok test, SailGP and Metallica, but the programme is light and getting lighter. This can't be turned around in a hurry, what with the long-term planning of sports world cups and the like, and especially as the council has eviscerated its own budget for big events. Which is why this needs urgent attention. None of these five things is wacky or weird. They're little more than what we should be able to expect from any government, even a business-as-usual one. So why aren't they happening?
The Herald
a day ago
- Automotive
- The Herald
Paterson High gets R250,000 boost to improve infrastructure
Paterson High School has received a major boost to its centenary celebrations with a R250,000 donation from automotive battery manufacturer Auto-X, aimed at improving infrastructure, safety and energy resilience. The contribution includes the installation of inverters to keep the Schauderville school operational during power outages, as well as refurbishments such as painting and fitting burglar bars to enhance security. Auto-X, based in the Neave/Korsten cluster, is a member of the Nelson Mandela Bay Business Chamber. Manufacturing and technical executive Kelvin Naidoo, who also serves as the chamber's president, said the initiative honoured the school's legacy while investing in the future of local pupils. 'Access to stable electricity and a safe, dignified learning environment are critical to unlocking the full potential of learners,' Naidoo said. The Neave/Korsten cluster, one of 11 geographic clusters under the chamber, has previously worked with the school on community projects, including a competition that resulted in new waste bins for the neighbourhood. Cluster chair Keith Prinsloo said the donation reflected the kind of leadership the group promoted. 'While our mission is to attract and retain investment, we are equally proud to support initiatives that deliver tangible community benefits,' Prinsloo said. The chamber's cluster model focuses on inclusive economic development, with members encouraged to invest in projects that make a lasting social impact alongside economic growth. The Herald
Scoop
6 days ago
- Business
- Scoop
Workers Moving Towns In Desperate Quest For Jobs
Krystal Gibbens, Journalist People are having to take jobs in different towns from where they live in order to find work as unemployment rises. The unemployment rate has risen to a near-five year high of 5.2 percent as businesses either sack staff or stop hiring, with 156,000 people out of work. It comes as Auckland's Business Chamber boss Simon Bridges is calling on the government to do more to stimulate the economy in the supercity and the country. As well, it's been revealed the unemployment rate for Pacific people is 12.1 percent, more than double the national average, and the Salvation Army says the situation may get worse. Hawke's Bay woman Shannon Kendall had to take a job two hours away from where she lived to find employment. Kendall is a project manager in the construction industry. She said after being made redundant in 2024 she spent a year looking for work before finding a job in Palmerston North. "I was applying for jobs in Auckland, I was applying for jobs in Australia and I was ready to just do whatever I had to do and commute big time to have employment and to stay in my industry." Kendall said it had been a tough 12 months and she was thankful for the job. But despite finding a job in another town, Kendall is commuting rather than relocating, with a son still enrolled in school in Hawke's Bay. Rotorua-based writer-editor Matt Walker meanwhile lost his job in the public service cuts early last year. Walker found himself sending out more than 200 job applications over the next 15 months, with no success. "I kept applying for public service roles in Rotorua and got a short-term contract at one point but I continued to look for a permanent job," he said. Walker, who has 25 years of professional experience, said the job market had become fiercely competitive. In one application process, he was up against 220 other candidates. "It's tough out there with hundreds of people going for the same role," Walker said. Now, he finally has a job in the NGO sector, but it requires him to travel from Rotorua to Christchurch. Walker said his current workplace has been incredibly supportive, providing him with all the resources he needed to succeed. "I'm not looking for a job change now," he said. Christchurch man James Brown earlier told RNZ he had applied for more than 100 jobs without luck. The insurance adjustor moved to Brisbane after he was made redundant just over a year ago. He was still working there, but needed to return home to his partner and children. "I have an extensive CV, it shouldn't be this difficult to find a job," he said. The latest figures show Auckland's 6.1 percent unemployment rate for the June 2025 quarter is the worst of all regions. About 15,000 more Aucklanders are without a job than this time last year. Employers and Manufacturers Association (EMA) head of advocacy Alan McDonald said while the agriculture industry was bolstering employment elsewhere, Auckland had different economic drivers. Jobless numbers worse for Pasifika Ana Ika, social policy analyst at the Salvation Army, told Pacific Waves that the higher unemployment rate for Pacific reflected difficulties around finding work and education opportunities in the current climate. "Our labour force participation rate actually hasn't changed that much, but our unemployment has increased," she said. That indicated a lot of young people had entered the labour force and were not securing jobs or training and education opportunities, she said. "We would think…that a lot of that unemployment for Pacific is predominantly our young people," Ika said. Intern Kajal Nair contributed to this story.
RNZ News
6 days ago
- Business
- RNZ News
Call for government to help Auckland as unemployment rises
File photo. Simon Bridges it was tough in Auckland and called for fiscal stimulus. Photo: RNZ / Samuel Rillstone Auckland's Business Chamber boss is calling on the government do more to stimulate the economy in the supercity, and the country, as jobless figures rise . The latest Stats NZ data shows Auckland's 6.1 percent unemployment rate for the June 2025 quarter is the worst of all regions. It is also above the national unemployment rate which rose to a near-five year high of 5.2 percent as businesses either sacked staff or stop hiring. "It's pretty grim ... it's very very tough in Auckland," Chamber chief executive Simon Bridges told Morning Report. There was a real case for serious policy or fiscal stimulus around New Zealand, and particularly in the big cities, in order to "get things going". "I think we need to raise the animal spirits, if you like, of the business community." Bridges said a boost in confidence in Auckland was needed at both business and consumer levels. Things were tough in the city which hadn't caught a break since before the Covid-19 pandemic started, he said. "There is more stimulus, there is more policy work that government could be doing to provide a better business environment in Auckland in the here and now," he said. "I think [the government has] done some worthy long term things, but in the end if all we worry about is the long term, I'm not sure there'll be that many Kiwis left in Auckland," he said. "It's now that they need to be focused on." Employers and Manufacturers Association (EMA) head of advocacy Alan McDonald said while the agriculture industry was bolstering employment elsewhere, Auckland had different economic drivers. "Numbers from the Auckland Council Economic Unit indicated unemployment would be quite high [in the June quarter] and it has been for some time. "There are some signs of recovery but they're being led by the regional economy and primary sector and Auckland is more about manufacturing and services. "Hospitality, tourism, education sectors have all been down as well." McDonald said EMA had received a spike in calls to its advice line about redundancies and restructures since March. "We had hoped 5.1 [in December 2024] might be the bottom of Auckland's unemployment numbers, but we've been hearing from March until now that things are still very tight and very tough." But things were starting to turn he said. The Stats NZ quarterly labour market figures released on Wednesday also showed unemployment was [ more than double the national rate at 12.1 percent. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Daily Maverick
09-07-2025
- Business
- Daily Maverick
NMB Business Chamber calls for urgent mitigation after devastating US tariff announcement
The Nelson Mandela Bay Business Chamber has described the 30% export tariffs levied on South Africa by US President Donald Trump as a 'direct blow' to local exporters. Roleplayers from the Automotive Sector, the components manufacturing sector and Nelson Mandela Bay's Business Chamber have called for urgent government action to mitigate the 30% tariffs imposed on South African exports by United States President Donald Trump. The move is likely to cause devastation to an already fragile Nelson Mandela Bay economy – the strongest economy in the Eastern Cape. 'We are extremely disappointed with US President Donald Trump's announcement of yesterday that he will subject imports from South Africa to 30% tariffs, effective from 1 August. 'This is a direct blow to local exporters who manufacture products according to world-class standards and employ thousands of people. There will be wide-ranging implications for South African exporters, with Nelson Mandela Bay being disproportionately impacted due to our high reliance on the automotive and agriculture sectors of our economy,' Chamber CEO Denise van Huyssteen said. '[The South African] government must move with absolute urgency to implement emergency measures to protect local exporters and the thousands of jobs linked to this. Potential mitigation actions could include still trying to find ways to establish mutually beneficial trade relations with the US to reduce the tariff burden, securing alternative markets for our products by negotiating with BRICS markets for Free Trade Agreements, strengthening trade relations with the European Union and South East Asia markets. However, it needs to be noted that switching markets takes a long time and is not something which can be done in the short term,' Van Huyssteen said. Eastern Cape economy According to an analysis from the Eastern Cape Development Corporation for Q4 of 2024, the decision from Trump comes as exports from the province were already in decline, by 22% at the end of 2024. The top four provincial export commodities are motor vehicles, wool and mohair. Competitive advantage Van Huyssteen said several countries would now have significant cost advantages over South Africa, including others in Africa, while Japan and Korea may have the flexibility to absorb the tariffs. 'This will put South Africa, which already from a logistics perspective [is] far from other markets, in a very uncompetitive position versus other countries around the globe, and on the African continent. There is no doubt that this will have a direct impact on the global strategies and decisions of multinationals on where the best manufacturing locations may be,' Van Huyssteen said. Retaliation tariffs She said other potential issues which might arise included other countries reducing their tariffs to the US, and SA exporters having to compete with these tariffs; retaliation tariffs from our current trade partners and the dumping of products in our market by other countries which can no longer compete in the US. 'An example of this is the impact of cheap tyres entering the country through anti-dumping loopholes, affecting the ongoing viability of local tyre manufacturing,' Van Huyssteen said. Goodyear Tyres announced last month that it was shutting down its manufacturing plant in Kariega. It is expected that around 900 people will lose their jobs. Earlier this year, Continental Tyres closed one of its specialist tyre factories. 'The United States is South Africa's second-biggest trading partner and is the automotive industry's second-biggest export market. The industry has for a number of years benefited from duty-free benefits under Agoa, but this has now permanently ceased,' Van Huyssteen said. 'The automotive industry requires economies of scale to be competitive and the South African industry only represents 0.6% of global vehicle production. By far the biggest risk in the short term to the medium term is the competition that South Africa will face from non-US manufacturing countries which may have a lower tariff base. 'Furthermore, those vehicle manufacturers who export vehicles to the US are likely to be more immediately impacted in the short term, with component exports to the US likely to be impacted soon afterwards. 'Our local economy is highly reliant on the automotive industry and employs almost half of the country's employment in this sector. We are particularly concerned about the potential knock-on impact of reduced vehicle assembly volumes of affected OEMs (original equipment manufacturers) who export to the US may have on the automotive components supply chain and surrounding ecosystem. 'Manufacturing is currently under immense pressure brought about by the electricity, logistics and municipal infrastructure challenges of the past few years, as well as the influx of cheap imports into the market. In terms of the automotive industry, cheaper imported vehicles are making inroads into the market, with consumers opting for these rather than purchasing from companies that manufacture vehicles locally. 'In fact, five out of the top-10-selling vehicles in the SA market are from companies that do not assemble vehicles locally. These factors, together with the potential of reduced export volumes to the US, make it even more difficult for the industry to be sustainable. 'The ecosystem linked to the automotive industry generates thousands of jobs from the vehicle manufacturers and components manufacturers, right through to the many medium and small businesses providing indirect services such as cleaning, security, IT and various other support services,' Van Huyssteen said. She said the agriculture sector, which like the automotive industry has benefited from Agoa, would be directly affected. Agriculture The Eastern Cape is the country's second-largest citrus-producing province, but does not export to the United States. There are concerns, though, that other citrus-producing areas will now compete for the Eastern Cape's export markets. Requirement for mitigation The Eastern Cape as a whole is likely to be disproportionately affected by the tariff announcements versus the rest of the country, given the extent to which its economy is anchored by the automotive and agriculture sectors. 'Speed and a proactive strategic response are required to enable South African-based manufacturers to find alternative solutions to navigating the fast-changing landscape and implementing mitigation actions,' Van Huyssteen said. Components manufacturing The CEO of the National Association of Automotive Component and Allied Manufacturers, Renai Moothilall, said the confirmation of the additional duties in the US market to be applied from 1 August were of great concern in the automotive sector. 'We are already seeing volumes of vehicle assemblies linked to those markets being reduced and the impact on the supplier base is negative. Having noted the content of President Trump's statement, Naacam urges a nuanced and urgent negotiation which highlights the positive trade relationship that the US enjoys with SA in terms of components coming from that country to be used in vehicles which are then exported back to the US,' he said. Automotive Business Council While he has not yet responded to the confirmation of the 30% tariff, Mikel Mabasa, CEO of Naamsa, the Automotive Business Council, said last month that the United States was the third-largest destination for South African automotive exports, with about R35-billion worth of vehicles shipped in 2024, accounting for 6.5% of total vehicle exports in 2024. 'The proposed 25% tariff increase will severely impact local manufacturers operating in South Africa, including BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota, and Volkswagen, who produce vehicles for global markets, including the US. Last month, while attending the Gauteng Investment Conference in Johannesburg, Mabasa said it could have serious implications for jobs in South Africa as the SA auto industry contributed significantly to economic development, employment and industrialisation. On Tuesday afternoon, he said that the council would meet on Tuesday night to discuss the new tariffs. DM
