Election 2002 survey - Growth, themes & issues

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A comparison of business and political party responses to a survey on economic growth issues

Election 2002:

Growth, Politics & Business

Themes & Issues

The themes for the Conference are derived from three sources:

·        Business NZ's Growth Strategy (Changing Gear), which identified 20 priorities for improving growth;

·        Responses to a survey of NZ businesses conducted by Business NZ, which identified key areas of concern to business; and

·        Responses to a survey of political parties conducted by Business NZ, which identified key areas of agreement and difference between the views of business, politicians and Business NZ's priorities.

There were 260 respondents to the survey of businesses, all members of Business NZ's regional organisations. Of the political parties surveyed, ACT, the Alliance, the Greens, Labour, National, and United Future responded, while NZ First and the Progressive Coalition did not.

For each of the Conference sessions a set of three or four themes has been identified. Under each of these themes a set of issues which arose from the sources above have been developed.

Session 1: Productive Workplace

• Skills
• Employment Law
• Health and Safety Law

Session 2: Productive Economy

• Compliance costs
• Innovation
• Infrastructure
• Smarter businesses

Session 3: Party Leaders on Growth

• Growth as a priority
• Macroeconomic policy
• Promoting trade and exports

Session 1: Productive Workplace

Identified themes & issues:

• Skills
• Industry Training;
• Literacy;
• School Outcomes;
• Tertiary Relevance;
• Enterprise,
• Science and Technology Curriculum;
• Immigration for Skills;
• Net Migration Targets.

• Employment Law
• Holidays Act;
• Personal Grievances;
• Employment Court;
• Paid Parental Leave;
• Employment Relations Act;
• Contracting Out/Sale of Business;
• Pay Equity;
• Ratification of ILO Conventions.

• Health and Safety Law
• Stress and Fatigue;
• Employee participation;
• Higher Fines;
• Inability to Insure against breaches.

Session 1: Skills

Relevant Business NZ Growth Strategy Priorities:

Key issues identified by business:

• Industry training - 84% of businesses believed it was essential to increase the number of people involved in formal industry training.
• Literacy - 83% of businesses believed it was essential to eliminate 'very poor' literacy and numeracy in the population. Businesses believed improved workplace training and literacy programmes were seen as particularly important.
• School outcomes - 89% of businesses believed it was essential that the outcomes of compulsory education be improved, and that all students achieve at least NCEA Level 1 by 2005. Businesses proposed a wide range of initiatives to support these outcomes.
• Tertiary relevance – 74% of businesses believed it was essential to improve the relevance of tertiary education, with a strong emphasis on improving partnerships with business as a mechanism for achieving this, as well as continuing to improve support for workplace learning.
• Enterprise, science & technology – 68% of businesses believed it was essential to have a specific policy on the role of enterprise, science and technology in the curriculum throughout the education system. Business stressed the need for a better understanding of business and how wealth is created.
• Immigration for skills – 88% of businesses believed it was essential to increase the number and proportion of highly skilled, talented and motivated immigrants with good English language skills.
• Net migration target – 65% of businesses believed it was essential to have a target of net migration levels. The highest level of support among businesses was for a target of a net gain of 50,000 people per annum.

Skills - responses by political parties:

• Industry training - All political parties had a commitment to increasing the skill levels of the current workforce by increasing the numbers of people involved in formal industry training. ACT however felt the existing apprenticeship system was too expensive. United Future supported the removal of occupational licensing.
• Literacy - Most political parties placed a high priority on eliminating 'very poor' literacy and numeracy in the population. ACT's policy focused on testing literacy at schools. National promoted better quality teachers, testing to ensure outcomes, and an adult literacy strategy. Labour and the Greens identified the importance of early childhood, and of adult work-based and community literacy programmes.  NZ First also identified improved access to early childhood education, and promoted improved school cultures and support for teachers and schools.  The Alliance promoted increased resourcing for low-decile communities, as well as smaller class sizes. United Future's policy was yet to be determined.
• School outcomes - All political parties supported improved outcomes for compulsory education.  ACT supported the closing of failing schools. National and the Greens would review the implementation of the NCEA. Labour identified the importance of setting high expectations, improving leadership, and classroom practice. The Alliance focused on improving resourcing for public schools, with an emphasis on low-decile schools. United Future proposed a wide range of initiatives.
• Tertiary relevance – All political parties supported improved relevance for tertiary education, although the Alliance identified the importance of 'blue skies' research as well. United Future proposed expanded powers for the Tertiary Education Commission. The Greens promoted greater co-operation between providers and employers, and greater access to lifelong learning. Labour promoted its Tertiary Education Strategy, and Tertiary Education Reform Bill.  National indicated current proposals were too bureaucratic and that it would focus more on quality and flexibility. ACT proposed external exams for tertiary education. 
• Enterprise, science & technology – Most political parties supported a focus on enterprise, science and technology in the curriculum throughout the education system. The Alliance and NZ First did not have specific policies on this issue. ACT proposed achieving this by paying good teachers more. Labour indicated that a curriculum Stocktake was underway, and that an ICT strategy was about to be launched. National indicated the need for the curriculum to focus on the skills needed for the modern workplace. The Greens indicated that enterprise, science and technology should be incorporated as part of a wider environmental education programme.

• Immigration for skills – All political parties supported the need for an increase in the number and proportion of highly skilled, talented and motivated immigrants with good English language skills, although NZ First did not consider the bulk of current immigrants to meet this description. The Greens indicated that humanitarian considerations were equally important. 
• Net migration target – Few political parties had a clear policy on net migration levels.

Session 1: Employment Law

Relevant Business NZ Growth Strategy Priorities:

Key issues identified by business:

·         Personal Grievances – 74% of businesses supported a shift to more substantive focus in personal grievance claims.

·         Holidays Act – 42% of businesses opposed changes to the Holidays Act. Businesses were concerned with the cost of funding four weeks annual leave, and the changes to penal rates for statutory holidays. 34% of businesses were unsure about this issue.

·         Paid Parental leave – 88% of businesses believed it was essential that employers not have to meet the direct costs of paid parental leave.

·         Employment Relations Act – 66% of businesses sought significant changes to the Employment Relations Act. Major concerns were the effective inability to remove non-performing staff, the cost of personal grievance cases, and the lack of balance between employer and employee rights.

·         Contracting Out/Sale of Business – 49% of businesses opposed legislation covering guaranteed entitlements and conditions of work for employees following the sale of a business or the contracting out of work by a business. 28% of business were unsure about this issue.

·         Employment Court – 51% of businesses supported changes to the Employment Court. 38% of businesses were unsure about this issue.

Responses by political parties:

·         Employment Relations Act – ACT indicated they would abolish the ERA. National would amend the Act to remove the monopoly rights of unions, introduce a 90-day personal grievance free period, and restrict rights of union access to the workplace. Labour, the Alliance, the Greens, NZ First and United Future indicated they would not change the ERA.

·         Holidays Act – All parties supported changes to the Holidays Act.  ACT proposed the abolition of the Act. National, and NZ First indicated the Act should be reviewed. Labour supported penal rates and time in lieu for those working on public holidays, among other changes. The Alliance and the Greens supported 4 weeks annual holidays as a minimum.

·         Personal Grievances – ACT, National and United Future supported a shift to more substantive focus in personal grievance claims, while Labour and the Alliance opposed this.  The Greens wanted improved education for employers and employees, and improved mediation support.  NZ First did not have a policy on this matter.

·         Employment Court – ACT would abolish the Employment Court. National would review it. Labour, the Greens, NZ First and the Alliance supported current arrangements.  United Future did not have a policy on this matter.

·         Paid Parental Leave – All parties except the Alliance and the Greens indicated that employers would not have to meet the direct costs of paid parental leave. The Alliance indicated any employer contribution would be universal. The Greens supported the cost of parental leave being shared between individuals, government and employers.

·         Contracting Out/Sale of Business – ACT, National and United Future opposed legislation covering guaranteed entitlements and conditions of work for employees following the sale of a business or the contracting out of work by a business, while the Alliance and the Greens supported this. Labour's position was that although it is on their agenda, they have made no definite decisions as yet.  NZ First did not have a policy on this matter.

Emerging issues:

Two important issues have arisen since the surveys were sent out:

• Pay equity – A discussion paper has been released which raises the possibility of regulation to impose 'equal pay for work of equal value'. The Green party's policy proposes a Pay Equity Commission.

• Ratification of ILO Conventions 87 & 98 -  The Government has proposed the possible ratification of ILO Conventions 87 & 98, which would in effect legalise strikes on social and economic grounds, as well as sympathy strikes and secondary boycotts.

Session 1: Health and Safety Law

Relevant Business NZ Growth Strategy Priorities:

Key issues identified by business:

• Stress and Fatigue – 76% of businesses believe that 'work-related stress' and 'fatigue' should be removed from the definitions of 'harm' and 'hazard' under the HSEA Bill.
• Employee participation – 78% of businesses supported obligatory employee participation in workplace safety issues, as the majority consider that there needs to be greater recognition of employee responsibility for providing a safe workplace.
• Higher fines – 60% of businesses opposed the use of higher fines as a means of reducing workplace accidents. Businesses proposed a greater emphasis on management education and changing workplace culture. They favoured the use of incentives to encourage good practice.
• Insurance against breaches – 62% of businesses opposed the proposed elimination of the right to insure against breaches of health and safety legislation.

Responses by political parties:

• Higher fines – The Alliance, Labour, the Greens and United Future supported the use of higher fines as a measure of reducing workplace accidents. National advocated a mix of 'carrot and stick'. ACT stated the OSH act was anti-business and needed to be reviewed.  NZ First was opposed to higher fines.
• Employee participation – ACT and National did not support obligatory employee participation in workplace safety issues, while the Greens, the Alliance, NZ First and United Future did. Labour felt the question was obscure.
• Insurance against breaches – ACT, National, NZ First and United Future supported the right of businesses to insure against breaches of health and safety legislation as part of a risk-management package, while the Alliance, the Greens and Labour did not.
• Fatigue and stress – ACT and United Future supported the removal of 'work-related stress' and 'fatigue' from the definitions of 'harm' and 'hazard' under the HSEA Bill, while the Alliance, the Greens and Labour did not. National indicated they should be better defined in the Bill.  NZ First did not have a policy on this matter.

Session 2: Productive Economy

Identified themes & issues:

• Compliance costs
• Simplified taxation;
• RMA reform;
• HSNO;
• Kyoto;
• Local government.

• Innovation
• Research & Development;
• Biotechnology & GE;
• Promoting technology.

• Infrastructure
• Transport;
• Broadband access.