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COVER STORY <strong>June</strong> <strong>2023</strong> BAY OF PLENTY BUSINESS NEWS 3 BUDGET REVIEW: VERY FEW SURPRISES From page 1 removing it cannot be said to be making a huge contribution to improving the generally poor view held by many New Zealanders about their access to medical facilities or health care affordability. Having ruled out tax cuts on affordability and ‘inflation risk’ grounds, the government has focused on targeted support for families, students and young workers and others most affected by cost-<strong>of</strong>-living pressures, says Vial. Outguessing the opposition The lack <strong>of</strong> any major tax changes partly reflects an attempt to outguess National Party predictions, <strong>of</strong> course. However, the extension <strong>of</strong> Early Childhood Education subsidies will be welcomed, noted Lister. Free public transport for children under 13 and permanent half price fares for the under 25s reflects a more targeted approach. Generally, the budget was much more stimulating than expected, said Lister. But inflation remains stubbornly high and mortgage rates are going up. Pre-budget, and before the Reserve Bank <strong>of</strong> New Zealand’s latest Official Cash Rate (OCR) recent revision, economists had increasingly expected the RBNZ would indicate a peak <strong>of</strong> perhaps six percent. Instead, the central bank has issued forecasts for the future level <strong>of</strong> the OCR that are quite similar to those issued in its previous statements in February. It sees the OCR staying at 5.5 percent till the second half <strong>of</strong> next year before slowly declining. Dealing with damage Of key concern to whoever wins power this year is how to effectively respond to this year’s cyclone damage, reportedly the second-largest natural disaster New Zealand has experienced. The budget announced a further $859 million <strong>of</strong> operational expenditure allocated to cyclone and flood recovery, on top <strong>of</strong> the $889 million already provided. Importantly, the need to invest in immediate recovery measures has not come at the expense <strong>of</strong> significant allocations for medium- and longer-term capital infrastructure expenditure ($71 billion over the next five years). To put it bluntly, we haven’t invested enough in this area. Infrastructure will remain a major preoccupation for whoever holds the government benches by the end <strong>of</strong> the year. Cowley to chair national Local Government Forum By DAVID PORTER Tauranga Chamber <strong>of</strong> Commerce chief executive <strong>of</strong>ficer Matt Cowley has been appointed the new chair <strong>of</strong> the Local Government Forum. The Forum is a group <strong>of</strong> major business organisations that aims to promote efficient and effective local government. Cowley, a former Tauranga councillor, is also a director <strong>of</strong> the New Zealand Chambers <strong>of</strong> Commerce and Industry. “I’ve spent a lot <strong>of</strong> my working career interacting with local government,” Cowley told the <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> <strong>Business</strong> <strong>News</strong>. “I’ve been an elected member, an employee, a customer, and a commentator.” Cowley replaces Auckland’s Michael Barnett who stepped down from the role in March. Barnett recently retired as head <strong>of</strong> the Auckland Chamber <strong>of</strong> Commerce and was replaced by former Tauranga MP Simon Bridges. “As Forum Chair for the past 12 years, Michael Barnett was a very credible and highly respected spokesperson on local government issues from a business and wider community perspective,” said Cowley. Cowley noted that the members <strong>of</strong> the Local Government <strong>Business</strong> Forum were significant representatives <strong>of</strong> ratepayers – businesses and farmers. “Local government is a vital part <strong>of</strong> the economic and social landscape and I see the Forum’s role as promoting policies that will maximise the sector’s contribution to New Zealanders’ wellbeing,” said Cowley. “The best way for local government to contribute to maximising wellbeing is for it to do its core activities well and keep its spending and rates under control.” According to a statement issued on behalf <strong>of</strong> the forum, it is comprised <strong>of</strong> organisations that have a vital interest in the activities <strong>of</strong> local government. Its members include <strong>Business</strong> New Zealand, the Electricity Networks Aotearoa, Federated Farmers <strong>of</strong> New Zealand, Hospitality New Zealand, New Zealand Chambers <strong>of</strong> Commerce and the New Zealand Initiative. The Forum Matt Cowley was established in 1994. Cowley told the BOP <strong>Business</strong> <strong>News</strong> the forum was made up <strong>of</strong> several nationwide business associations and that Chambers <strong>of</strong> Commerce have a wide variety <strong>of</strong> members covering all industries, which was why Michael Barnett was a logical choice <strong>of</strong> forum Chair for over a decade. “The forum believes in the power <strong>of</strong> unity across industries,” he said. “It identifies public policy matters that impact a range <strong>of</strong> industries to send a united business perspective to all political leaders. The forum champions the voice <strong>of</strong> rural and urban industries, recognising the importance <strong>of</strong> regional communities alongside New Zealand’s largest urban centres.” Take control <strong>of</strong> your future. 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