NZIIS consultation important for business

2 Feb 2022

BusinessNZ says it will be important to get wide public discussion on the proposal for an income insurance scheme for New Zealand.

The proposal for the New Zealand Income Insurance Scheme (NZIIS) was launched by Government today.

NZIIS would offer up to 7 months’ income insurance for employees who have lost their job.

The scheme would be administered in a similar way to the ACC scheme: funded by levies, paid equally by employers and employees.

BusinessNZ says the employment environment could be significantly improved if the NZIIS proposal was accepted.

BusinessNZ Chief Executive Kirk Hope said it would give newly unemployed workers support and more time to find work that matches the skills they have.

“Our labour market is very tight and it’s currently hard for employers to find the specific skills they need, so NZIIS proposal would help employers find what they need, faster.

“It would mean better skills-matching in the workplace and greater labour market mobility in general, allowing greater productivity, and greater job satisfaction.

“It would allow displaced workers to get back in the workforce quickly, perhaps with some retraining, retaining their new full value to the working economy.

“And it would be valuable where job displacement has been  the result of a technology transition in the workplace in a time when technologies in business and the workplace are going to become more frequent.

“BusinessNZ would urge businesses and the public to contribute their thoughts on the proposal, in the 3-month consultation that begins today.”

The next three months will see the public, business, employees and unions all able to test the thinking and contribute to thinking on a potential NZIIS scheme.

Information on the NZIIS Consultation will be available on www.mbie.govt.nz/incomeinsurance