In this issue: CELEBRATING EXPORT WINNERS - EMA

By Business NZ’s CEO Phil O’Reilly
The last thing you
need is another
benefit, but...
You know the value
of a meaningful
employee benefits
package in helping
to attract and retain
good employees.
The good news for you is that at
TOWER, we’ve rationalised the
whole process by bringing a wide
range of benefi ts together, making
it simple for you – with one point
of contact to manage an employee
benefi ts package tailored to your
organisation.
We have experience in managing
employee benefi ts solutions for over
300 employers.
You can choose a solution that suits
your organisation by picking a
combination from our wide range
of products including:
▪
▪
▪
▪
Health insurance
Life insurance
Income protection
Trauma/Crisis cover
To discuss how we can help you,
contact us on 0800 755 556 (press 3)
or employee.benefits@tower.co.nz
Growth consolidating
Growth is consolidating - this could be the main theme of New
Zealand’s economy in mid-winter 2010.
With the darkest days of the global financial downturn behind us,
we’ve been eagerly awaiting the return of the golden weather.
It’s not here yet, but the signs are at least reasonably promising.
Sales are flat in many sectors - a situation that could well continue
until the events of October shake things up.
Many existing businesses weren’t around the last time GST
was increased in 1989 and may be nervous of the impact of the
upcoming GST increase in October.
But in 1989 there wasn’t a big dip in sales, and moreover this time
round the GST rise will be offset by tax cuts.
Reductions in personal tax from October will mean more money
in circulation, likely to be good for small businesses and retailers.
The big question will be whether the stimulation of the tax cuts
will be greater than the general buying caution we see now.
In any case, New Zealanders’ prosperity is strongly affected by
global events.
By necessity we are an exporting nation, as our population of four
million is too small, by itself, to sustain first world level growth.
The big question will be
whether the stimulation of the
tax cuts will be greater than
general buying caution.
Fortunately, recent export returns have been reasonable even
through the worst of the global economic downturn, and are likely
to continue at least in the medium term.
This year we experienced our first annual trade surplus since 2002.
What’s more, our two largest trading partners, Australia and China,
are in growth mode.
China, which only recently became our second largest trading
partner, occupies a pivotal position in terms of New Zealand’s
economic future.
There is some nervousness about a number of high profile
Chinese attempts to buy New Zealand farms and other assets (despite
similar New Zealand interest and involvement in commercial
enterprises in China).
This is something New Zealand is going to have to work through.
Foreign investment and ownership is the inevitable result of New
Zealand’s high debt levels.
The Government is showing commendable fortitude in seeking to
reduce public debt. Hopefully more businesses and individuals will
follow this lead in reducing private debt.
Higher export levels, higher productivity and reduced debt are the
best way to help us invest more in enterprise both here and abroad.
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