Voting in the local body elections is in progress and we are already turning our attention to the national elections next year, with the three-year election cycles creating massive issues for businesses who need confidence and certainty to enable them to continue to invest in people and technology. Alan Pollard, CEO, CCNZ.
I don’t believe councils or government agencies have any idea just how disruptive it is to business and to our economy when they practically shut down during the election period.
The world doesn’t stop just because an election is being held, but the consequences of this narrow view of the world can be catastrophic.
Councillors and members of parliament are largely elected not because of any core competency or expertise but based on popularity or ideology. Promises are made on the campaign trail with little understanding of the environment within which councillors or politicians must operate in, nor the potential consequences of pursuing a particular ideological pathway.
As newly elected councils start their terms, it’s important for industry to engage and ensure policies are based on sound practical knowledge. Many of our branches regularly engage with councils, and we have produced resources to support and guide these discussions. I encourage you to get in touch with your local branch to support these worthy efforts and lend your practical knowledge to councils as they try to bring their visions to reality.
As for central government, there has been much debate about the scale and quality of spending by the previous Government during and immediately after the Covid pandemic.
The new Government was elected to fix the economy, lower the cost of living, and prioritise spending in areas that stimulate growth and productivity. But almost two years on from that election growth has stalled, the cost of living is stubbornly high, and infrastructure spending (often the vehicle for growth) has – according to Treasury figures – stalled or fallen.
This has led to a tightening up of opinion polls, indicating next year’s election is currently too close to call. This means more uncertainty, likely further changes and delayed economic recovery for businesses to endure (when change fatigue is high), if the government changes.
So, what do we expect to see from an aspiring government?
First, we expect a consistent, reliable flow of funded projects to meet our infrastructure needs and retain our workforce. Infrastructure is key to improving the quality of life for our communities.
For our industry to keep delivering on key infrastructure work we need certainty and confidence that announcements will translate into projects, especially if the country is to attract and retain the key civil construction and trade skills required.
We have heard lots of talk about cross-party approach to infrastructure, but it remains an aspirational goal as opposed to reality.
Second, we need access to a domestic workforce that’s ready and available to deliver the government’s pipeline of work, with pathways for people to enter and succeed in infrastructure construction.
The current vocational education reforms pose a significant risk to our industry and our future workforce. We train on the job using a nationally consistent framework, but the reforms favour regionally based classroom delivery. The education and immigration pathways must be focused on providing a future workforce with the right skills to deliver the infrastructure programme.
Third, we need to see appropriate regulation that prevents projects from being stuck in the planning phase and avoids cost and time blow outs. Civil contractors want to deliver projects as fast as possible, as safely as possible, and to as high a standard as possible without being slowed down by excessive regulation. Even the “fast track” process hasn’t proven to be that fast.
So, it’s important improvements are made quickly in areas where those on the frontline of our industry have identified unnecessary roadblocks. That includes better national and regional understanding around the importance of enabling infrastructure like quarries, and a better approach to how we manage earthmoving.
But here’s the thing. Historically, government policy has often been made under a “government knows best” philosophy, with policy, regulation and legislation developed internally by politicians or officials with limited understanding of the consequences of these decisions, often with limited or one-sided consultation processes.
Whether developing national policy, or considering an individual project, we have long argued early contractor engagement is crucial to getting the best, highest quality outcomes.
In some regions this works well, but in others such engagement is non-existent. This works at the policy level too. To perform better and be more effective, we need to learn from what works well and adopt those practices nationally.
The truth is that good policy must be informed by those who will put it into practice. That is why my team and I are currently meeting with politicians from all political parties to set out our expectations.
And more importantly, to offer our support and input into shaping policy that is appropriately contextualised, that has regard to the consequences of decisions, and that not only leads to a healthy and sustainable civil sector but also enables the construction and maintenance of the critical infrastructure that our communities need.
This country has some major challenges to overcome. Those won’t be overcome, and suboptimal decisions will still be made if policy is created in isolation from those who either have the practical expertise or are most affected by the decisions. We need better outcomes for our country and our way of life.
So, let’s shift the dial – let’s work together to restore our country to the level of prosperity that we desire and deserve. Industry wants to lead, and contractors have the practical knowledge on how to get the best results from change. We want to bring this knowledge to policymakers, and CCNZ is working hard to make sure the voice of contractors is heard by the people who make the rules, so we can achieve better results for the country.
We will soon publish our election expectations and priorities, so these are clear to all who would take on the challenge of governing the country.
So, watch this space, and in the meantime, please reach out if there are issues you would like addressed.
Parting words from Jeremy Sole- a final column