Skills shortages require pragmatic response

The Russian invasion of the Ukraine is forcing millions of families to seek sanctuary throughout Europe. Many will not return to their homeland, preferring to establish new lives in countries offering safety and an improved quality of life. In return, these refugees provide their expertise and gratitude for the opportunity they are being offered – similar to other refugees who have successfully settled in New Zealand since the early 1860s.

Explorers and sealers, followed by traders, farmers, tradespeople, administrators, retired military and refugees involved many ethnic groups contributing their culture and determination to achieving a more rewarding lifestyle, where their expertise and skills were an invaluable contribution to a young colony with high aspirations. These adventurous participants helped make our country what it is today.

Fast forward to 2022 and a pandemic, together with a faltering infrastructure delivering sub-par results in our schools and trading establishments, combined with convoluted immigration policies and the lure of better paying jobs in neighbouring Australia, means a steady erosion of the key skills necessary to improve productivity and deliver the required services.

Unfortunate natural disasters, political and military actions in many countries have created a tidal wave of migrants, particularly those fleeing war zones and not forgetting those seeking a superior lifestyle in a country with attributes we defend, as we also under-value their importance.

As the “kind and friendly” nation of international repute, offering a haven and a fresh start to those who have lost everything, we should also recognise the opportunity to embrace those refugees who will repay our kindness with their loyalty, skills and work ethic.

Engineers, builders, teachers, healthcare workers, fishermen and even drivers will greatly advance our urgently needed infrastructure development.

Reports of training 40,000 apprentice carpenters, electricians and plumbers is a commendable achievement which will be wasted without jobs where they also receive competent supervision and mentoring to achieve their full potential. There is also the constant threat from higher paying offshore employers, luring professionals, especially where healthcare and commercial building is rapidly expanding.

Our erratic immigration policy reacts to interest groups needing to fill shortfalls in critical export sectors. Visas available to relieve short term, low skilled seasonal labour shortages such as harvesting fruit export crops while ignoring long term, higher skilled workers desperately needed to sustain national development. The latest relaxation is another 1,500 skilled workers for farms, meat processing and forestry throughout our critical and increasingly stressed primary and food processing industries.

The unfolding disaster in the Ukraine presents a mutually beneficial opportunity for both the war refugees and for New Zealand.

History proves our migrants become valuable citizens, repaying our hospitality with their skills, commitment and loyalty. Increasing our population makes economic sense. As a wealthy nation with GDP per capita higher than the UK and many Asian and European countries, we can afford to increase our population by stepping up acceptance of war refugees. A growing population encourages more competition in products and services dictated by monopolies supplying increasingly ex-

pensive commodities such as energy, supermarkets, construction materials etc.

The UK is an example of mainly Eastern European migrants providing the tradespeople the education and trade training system fails to provide in sufficient numbers. New Zealand has a similar need for tradespeople, technicians and the array of lower paid jobs New Zealanders are not prepared to undertake.

We must, however, avoid exploiting migrants, clearly evident where employees are not receiving a fair income for their efforts, preventing them from establishing themselves in the community. Accelerated recognition of credible foreign qualifications should be a priority, including working with mentors to confirm their expertise on the job and to assist the family’s integration into their new community

Our Ministry of Business, Innovation and Employment is predicting an exodus of at least 50,000 Kiwis this year, many of whom will be the very professionals and skilled workers we can ill afford to lose.

A pan-political party immigration policy to complement other proven initiatives like overseas students in the Sciences, Engineering and IT who elect to stay and work, should be a priority, together with suitably experienced workers seeking a better quality of life, while providing tomorrow’s skilled workforce.

Providing the experienced professionals and front-line workers needed to train and mentor future generations in the skills needed to keep New Zealand at the forefront of where people aspire to live.

Until such political acumen and courage emerges, government should actively facilitate industry importing the highly skilled individuals desperately needed to significantly improve productivities and accelerate national infrastructure development, while enhancing their local communities.

Meanwhile, let us open our door to those needy Ukrainian refugees in a mutually beneficial act of kindness.

We will all be the better for it.

The views expressed by Content Partner, Responsible Care Chief Executive Barry Dyer, may not necessarily be those of Responsible Care NZ

The state of play at home

Coping successfully with international and national supply chain disruption remains critical. Businesses are now required to be lateral thinkers determining how to innovate in supplying essential products and services, while upskilling employees, throughout what may ultimately come to be remembered as the “Year of the RAT” rather than the “Year of Tiger”. The enduring pandemic and disappointingly slow takeup of booster vaccinations, coinciding with the change to employer-driven Covid protection measures, emphasise the need for businesses to focus on safeguarding staff. The lockdown of three major Chinese cities, their factories and adjacent ports, including the world’s busiest container terminal of Shanghai, during a new Omicron wave will prolong the shortage of refrigerated containers. New Zealand food exporters, hampered by the shortage of both skilled and unskilled workers, are facing escalating shipping

charges. Freight forwarders report a TEU to Shanghai has risen from NZ$1,180 last year to $9,450; and a TEU to Europe from $1,500 to $7,380. As energy prices soar and the final crude oil shipment has arrived in Northport, the concerns about greater self-sufficiency and security of essential commodities like fuel, deserve renewed scrutiny and will require a

massive investment. We reportedly hold only 20 days stock of our 90 days strategic fuel reserves in country. To increase our local storage capability also will require a massive investment. By comparison, the Australian government has given A$150 million to upgrade and maintain their remaining two domestic oil refineries, highlighting a pragmatic approach to greater self-sufficiency in fuels. Would a significant increase in investment in our scientific capabilities be a pragmatic contribution to our future economic wellbeing? Covid has provided opportunities for our world class scientists. Given the ‘forever’ status of the pandemic and concerns about greater selfsufficiency, it is exciting the Malaghan Institute plans trials of a locally produced vaccine later this year. In addition, this much wanted boost to our national selfsufficiency would be greatly enhanced by opening our borders to the scientists and overseas students we cannot provide ourselves.

auGust - sePteMBer 2022

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Barry Dyer, Chief Executive, Responsible Care NZ Troy Coyle, chief executive, HERA Philip Cryer, CEO, Telarc

Adrienne Miller, General Manager NZ, Infrastructure Sustainability Council

McKinsey & Company

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ISSN 2624-0572 (Print) ISSN 2624-0580 (Online)

Contents

2 Safer, faster, multipurpose telehandlers 4 Skills shortages require pragmatic response 8 Sustainability rating tool gains traction 14 Climate goals need leadership and commitment 15 Capital’s climate action gains global recognition 16 Courts hold governments to account for climate change 17 Should farmers pick up the slack for other sectors? 18 Fuel tax cut a wasted opportunity 22 Will the future run off portable hydrogen cartridges 23 Heavy transport company goes hydrogen 24 How can we utilise open data in infrastructure? 26 Not sure what it is but it is going to be big 34 Keeping your worksite safe this flu season 36 Is it time to reinstate the Government Architect? 38 How BIM Will Impact Your Future Infrastructure Projects 40 Digitally driven heritage conservation 43 Earthquake-prone buildings can remain occupied 44 Kiwi innovation leading the way in concrete slab insulation 46 Fixing the cybersecurity blind spot in building management 48 Hard work gets results 50 Housing market facing challenges for rest of 2022 52 A snapshot of industrial, retail and office markets 54 New tax exemption set to unlock Build to Rent in New Zealand 55 Call for a national building products catalogue 56 Certification benefits to the bottom line 62 No better investment than chemical safety training 64 TDDA on alert for fentanyl 66 Your responsibilities as a PCBU 78 TTM changes – what you need to know 80 The great unlearning 82 Chemical safety relies on meaningful cooperation 84 Live polarity testing – how it can go wrong 85 Is VR the solution to a $24m problem? 86 The perfect combination of quality assurance, high stock levels and expertise