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A week in advocacy 

Second wave deadly to economy
A second wave of covid-19 would be a greater shock to the economy, says the OECD.  The latest OECD Outlook says if there are no further outbreaks, NZ’s economy will likely reduce by 9% this year, recovering to 2019 levels by end of 2021.  But a second wave of infections - the double-hit scenario - would see GDP reduce by 10% and a recovery period beyond 2021.  NZ’s fiscal and monetary policy should remain expansionary to support recovery, especially in a double-hit scenario, the OECD says.

Back to the CBD
Meanwhile retailers are saying economic recovery could be a decade away - the retail sector took 5 years to recover from the GFC but Covid recovery could take twice as long.  Retail Radar says 6,000 businesses could close in 2020 and 60% of all retail firms are uncertain about their future.  The problem: zombie towns, with shoppers slow to return to the CBD.  Retailers hope more employees will return to the workplace instead of working from home, to help retail businesses stay alive.

NZ exemplar for Covid-19 - UN
NZ’s coronavirus response is being held up as an exemplar to other countries in an international UN forum on the impact of Covid-19 on business being held today.  Forum speaker, BusinessNZ’s Paul Mackay says reasons for NZ’s success include strict border management and quarantine, high social compliance and a coordinated interface between business and government facilitated by the BusinessNZ network and others.  While lockdown affected supply chains and business operations generally, NZ has benefited from strong export flows to Asia throughout the crisis, Paul Mackay says.

Changing competition law
This week Govt said it will change the law on competition: a new definition of anticompetitive behaviour will focus on whether a company’s actions result in less competition in its market.  But normal commercial activity where one firm gains market share at the expense of another also results in less competition in the market.  BusinessNZ says under the new law, simply gaining market share could open up a firm to a charge of anticompetitive behaviour and could mean firms competing less vigorously to stay within the law - the planned law change would actually inhibit competition.

Procurement - over $40 billion up for grabs
Central government spends over $40 billion a year and local government spends more billions on top of that - how can Kiwi businesses get a slice of the action?  Take part in this seminar (online or in person) to hear about the pipeline of work in different government agencies, and the opportunities for local businesses to supply them with goods and services.

Business views on election issues - survey
You’re invited to take part in the Deloitte–Chapman Tripp Election Survey run by BusinessNZ.  The survey conveys business sentiment about current issues and strongly influences election year debate.  This year it’s important that the business community’s views are heard as the country goes to vote.  The survey is anonymous and completely confidential.  Please take part in the survey here (where the survey asks for your member ID code, insert “BusinessNZ” and your company name)


Business Update is a weekly update of activity and advocacy by the BusinessNZ Network

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