Latest news with #HuttValleyChamberofCommerce
Scoop
3 days ago
- Business
- Scoop
Councillor Brady Dyer Calls For Urgent Action To Secure Future Of Gracefield Innovation Quarter
Press Release – Brady Dyer GIQ is home to world-class laboratories, researchers, and high-tech businesses that contribute around $1 billion annually to the local economy. Lower Hutt City Councillor Brady Dyer is launching a video campaign urging the Government to commit to the future of the Gracefield Innovation Quarter (GIQ) and save one of New Zealand's most valuable scientific assets. GIQ is home to world-class laboratories, researchers, and high-tech businesses that contribute around $1 billion annually to the local economy. Dyer says the opportunities of the site are massive. 'It's a place where breakthrough science and innovation happens, as researchers and industry work side-by-side. 'It's also a space where technology-rich businesses that have a huge economic impact can grow. 'But uncertainty over future investment means new businesses can't move in, empty buildings can't be used, and companies who want to stay there are being forced to look elsewhere. 'I've been working closely with the Hutt Valley Chamber of Commerce and the organisations and people fighting hard to secure the future of this site. 'Keeping and expanding GIQ isn't just important to the Hutt – it's vital for all New Zealand if we're going to keep being a science-driven, innovative nation. 'GIQ isn't just a collection of buildings – it's an ecosystem and a powerhouse of science, research, and innovation for the whole region. 'Losing it would mean stranded investment, lost jobs, and another missed opportunity for New Zealand's economic future. 'We're on the edge of losing something incredible and if we let it slip away we won't get it back. 'So I'm calling on the Government to provide some certainty – before it's too late,' Dyer says.
RNZ News
29-04-2025
- Business
- RNZ News
$1b Budget cut could slow economic recovery, experts warn
Finance Minister Nicola Willis makes a pre-budget speech to the Hutt Valley Chamber of Commerce. Photo: RNZ / Sam Rillstone A $1 billion cut to the government's operating allowance could be a further handbrake on the economy as it crawls towards recovery, economists are warning. Finance Minister Nicola Willis announced at a speech to the Hutt Valley Chamber of Commerce on Tuesday morning the government would halve its operating allowance - the new money it has available to spend at the May Budget - from $2.4 billion to $1.3b. That will result in only a small number of government departments receiving additional funding this year. Willis described the upcoming Budget as " no lolly scramble ". Kelly Eckhold, chief economist at Westpac, said it indicated the government planned to run a "very tight ship" for the foreseeable future. "At first glance it suggests that any deterioration in the fiscal deficit for the coming year coming from weaker growth could be substantially offset by spending cuts. "What we don't know is the extent to which capital spending will be increased - for example in defence - as these items are not reflected in the fiscal deficit. In general though the announcement does imply government will be less of a stimulus to demand going forward than had been previously assumed." Last year, a group of 15 independent, union and university economists sent a letter to Prime Minister Christopher Luxon and Willis, saying their cuts to government spending were contributing to the "severe and prolonged recession" . Infometrics chief forecaster Gareth Kiernan said, given the warning from Treasury that last year's Budget operating allowance of $2.4 billion was not enough to account for cost inflation or growth in demand, a reduction in the operating allowance to $1.3b suggested "continuation of the cost-cutting process throughout the last 12 months has probably been more pronounced than expected". But he said it was probably also more nuanced, focusing on particular areas of spending, than during the government's first six months, when cuts were blunt. "We'd already incorporated limited growth in government spending in our economic forecasts throughout the last year, although with the caveat that we saw a possibility there could be a bit less fiscal discipline and a bit more spending growth during 2026 ahead of the election, given that stronger economic growth tends to favour the incumbent government." He agreed that capital expenditure would be an important part of the picture. "During the first push for spending cuts in early 2024, there seemed to be little, or no, distinction made between opex and capex in terms of where the cuts occurred. More recently, the government appears to have got a better handle on the need for longer-term capex projects to continue progressing, particularly considering NZ's ongoing infrastructure deficit. It is likely that planned increases in capital expenditure provide some support for the economic recovery over the next 12 to 18 months, particularly given the government's keenness to start delivering on some of the major projects that it campaigned on. However, this capex is unlikely to completely make up for the continued restraint in operational spending." Households should feel limited impact, apart from in Wellington where government spending was a significant part of economic activity. "It will essentially be a continuation of the tight fiscal approach of the last year or so anyway, so I don't think it changes the economic environment significantly for the rest of the country. Perhaps the risk with relying on capex is that the timelines for these projects are often long, so any positive economic effects can take longer to flow through into the economy and boost household and consumer confidence than politicians might have been hoping for." Eckhold agreed it was probably set to be another tough year for Wellington. "In other parts of the country the impact might be less - and to the extent interest rates are lower there could be some benefit for some households' disposable incomes." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
1News
29-04-2025
- Business
- 1News
$1b cut to operating allowance coming in Budget, Nicola Willis says
The Government has freed up "billions" of dollars through additional public service cuts to be redeployed into "New Zealand's most pressing priorities". Finance Minister Nicola Willis announced at a speech to the Hutt Valley Chamber of Commerce on Tuesday morning the Government is halving its operating allowance — the new money it has available to spend at the May Budget — from $2.4 billion to $1.3b. That will result in only a small number of government departments receiving additional funding this year, with Willis characterising next month's Budget as "no lolly scramble". Finance Minister says there will be 'no lolly scramble' in her fiscal plan for the year ahead. (Source: 1News) "New spending initiatives are strictly limited to the most important priorities: our focus has been on health, education, law and order, defence, and a small number of critical social investments. We have also found room for modest measures to support business growth and to provide some carefully targeted cost-of-living relief," Willis said. "We expect government agencies to adjust themselves to New Zealand's limited fiscal means. This will require restraint in public sector wage increases and an ongoing commitment to getting more impact out of every dollar spent." Willis — with the help of associate finance minister David Seymour — has undertaken a significant savings drive ahead of the Budget to identify billions of dollars of spending that could be reprioritised. "This has involved a line-by-line review of previous funding commitments, including money put aside in contingency. This reprioritisation exercise has required careful consideration and some tough, but necessary, choices." With all that in mind, Willis said it had put pressure on the Government being able to stick to its fiscal strategy. At the half year update in December a small surplus was expected in 2029, and Willis said it remained her intention to return to a surplus a year earlier if possible. That all took place, however, before US President Trump's "Liberation Day". Despite that, Willis confirmed on Tuesday morning the Government remained committed to that goal. "Sticking to them has required some careful adjustments in this year's Budget. The key change we have made is to the size of this year's "operating allowance" — that is the amount of money put aside for new spending." "This means we will be spending billions less over the forecast period than would have otherwise been the case. This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction," Willis said. "The fiscal forecasts will not be finalised until later this week, but according to the latest numbers I have seen, this smaller operating allowance means we will continue to forecast a surplus in 2029." Labour Party leader Chris Hipkins told Morning Report the Government may as well give public servants a ticket to Australia, "because Nicola Willis is hanging out a very clear sign there's no hope here for them". The biggest cuts the Government had made so far was cuts to investments in the future, he said. Borrowing in the last budget for tax cuts was "absolutely reckless and irresponsible" and something the Government could not afford then or now, he said.
Reuters
28-04-2025
- Business
- Reuters
New Zealand 2025 spending budget shrinks as economic growth slows
WELLINGTON, April 29 (Reuters) - New Zealand Finance Minister Nicola Willis said on Tuesday baseline spending in the 2025 budget would be reduced to NZ$1.3 billion ($777.14 million) from a forecast of NZ$2.4 billion, as she outlined worsening economic conditions in the country. 'That lower growth trajectory has an inevitable impact on the government books, reducing revenue and threatening our already difficult return to surplus and debt reduction,' she said at a speech to the Hutt Valley Chamber of Commerce. She said the government intended to return to a surplus in the 12 months ending May 30, 2029 under the measure it introduced last year, which excludes the financial position of the government-owned accident health provider. 'At our last update in December - well before Trump's 'Liberation Day' - we were expecting a small surplus in 2029, and it remained our intention to returning it a year earlier if possible,' she said. 'I can confirm that our Government remains committed to those goals,' Willis added. Since being elected in October 2023, the centre-right coalition government has faced rising unemployment and lower tax revenue than expected. It has worked to reduce spending and has made significant cuts to the public service as it pursues a return to surplus and will release a new budget and updated economic forecasts on May 22. Willis said the situation has worsened, with the economy still growing but not as fast as forecast a few months ago. She said Treasury had adjusted the forecasts it presented in December, reducing their assumptions of real GDP growth in New Zealand in 2025 and 2026. She added, however, it does continue to forecast accelerating growth in the economy over the coming year, with falling unemployment forecast to follow in the second half of the year. ($1 = 1.6728 New Zealand dollars)
Otago Daily Times
28-04-2025
- Business
- Otago Daily Times
'No lolly scramble' as Govt slashes operating budget
By Jo Moir The Government has freed up "billions" of dollars through additional public service cuts to be redeployed into "New Zealand's most pressing priorities". Finance Minister Nicola Willis announced at a speech to the Hutt Valley Chamber of Commerce on Tuesday morning the Government is halving its operating allowance - the new money it has available to spend at the May Budget - from $2.4 billion to $1.3b. That will result in only a small number of government departments receiving additional funding this year with Willis characterising next month's Budget as "no lolly scramble". "New spending initiatives are strictly limited to the most important priorities: our focus has been on health, education, law and order, defence, and a small number of critical social investments. We have also found room for modest measures to support business growth and to provide some carefully targeted cost-of-living relief," Willis said. "We expect government agencies to adjust themselves to New Zealand's limited fiscal means. This will require restraint in public sector wage increases and an ongoing commitment to getting more impact out of every dollar spent." Willis - with the help of associate finance minister David Seymour - has undertaken a significant savings drive ahead of the Budget to identify billions of dollars of spending that could be reprioritised. "This has involved a line-by-line review of previous funding commitments, including money put aside in contingency. This reprioritisation exercise has required careful consideration and some tough, but necessary, choices." With all that in mind Willis said it had put pressure on the Government being able to stick to its fiscal strategy. At the half year update in December a small surplus was expected in 2029, and Willis said it remained her intention to return to a surplus a year earlier if possible. That all took place, however, before US President Trump's "Liberation Day". Despite that, Willis confirmed on Tuesday morning the Government remained committed to that goal. "Sticking to them has required some careful adjustments in this year's Budget. The key change we have made is to the size of this year's "operating allowance" - that is the amount of money put aside for new spending." "This means we will be spending billions less over the forecast period than would have otherwise been the case. This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction," Willis said. "The fiscal forecasts will not be finalised until later this week, but according to the latest numbers I have seen, this smaller operating allowance means we will continue to forecast a surplus in 2029." Labour Party leader Chris Hipkins told Morning Report the Government may as well give public servants a ticket to Australia, "because Nicola Willis is hanging out a very clear sign there's no hope here for them". The biggest cuts the Government had made so far was cuts to investments in the future, he said. Borrowing in the last budget for tax cuts was "absolutely reckless and irresponsible" and something the Government could not afford then or now, he said.
