Wellington business confidence plummets

Stuff reports that confidence in Wellington has dropped since the new government took over. Quote:

The quarterly Wellington regional chambers of commerce business confidence survey found a net 18 per cent of businesses expect the Wellington economy to improve in the coming 12 months, down from 21 per cent in March.

A year ago, a net 55 per cent of businesses were confident about the capital’s prospects. End quote.

Wow. That is a big drop in twelve months. Particularly as we haven’t been hit with the fuel taxes yet, and house prices are not quite as bad as Auckland. Quote:

Confidence in the national economy also dropped, with a net 4 per cent negative, meaning those expecting the New Zealand economy to deteriorate exceed those expecting an improvement, for only the second time since 2009. End quote.

2009 was the Global Financial Crisis. I’m not surprised confidence was low then. But now? Quote:

John Milford, chief executive of the Wellington Chamber of Commerce, claimed businesses were concerned recent moves by the Government “would have a detrimental effect on their ability to grow”.

“A lot of this has to do with changes to workplace legislation as contained in the Employment Relations Amendment Bill,” Milford said.

“Businesses are telling us that these proposals will further reduce their flexibility and harm their growth prospects.

He also claimed increases in the “minimum wage policy” and wages expectations were leading to unrest.

“If the Government is worried about business confidence it should put a halt to these changes.” End quote.

The government is not worried about falling business confidence. It doesn’t like it, but going around the country and telling business people to suck it up will not improve the situation. The government is hell-bent on its employment policies which will take us back to the dark ages, but nothing is going to change. Confidence will not improve until they make it clear that they are prepared to listen. And that is not going to happen. Quote:

However hiring intentions are the highest since the June 2017 survey, with a net 25 per cent looking for more staff. Finding skilled staff has consistently been highlighted as the greatest challenge for businesses in the survey. End quote.

This may sound like a contradiction, but it is not really. Skills shortages are causing a lot of headaches for business. But another nightmare is the fact that hiring those people is going to bring even bigger headaches with the new employment rules and it just may not all be worth the bother.

Is this Winston’s ‘dark clouds’ on the economic horizon? Or has he created this situation himself, together with his cronies? I think the latter. I think he knew what effect their policies would have but he decided to do it anyway.

I think this because they are all so disappointed with business confidence… but are prepared to do absolutely nothing about it. A take it or leave it policy with business is never going to inspire confidence. Business leaders do not like anarchists.

But here is something that you need to remember. Wellington ALWAYS does better under a Labour government, because they usually expand the public sector. If Wellington is lacking in confidence, the whole country is in trouble.

 


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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

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