7 minute read

Beware the Ides of March

By the end of the first quarter the impact of inflationary pressures will become more apparent in the community. Some issues we can control, others are beyond us.

ANew Year is a popular opportunity to speculate on future developments. Of course, the more successful Seers are retired, having foreseen winning Lotto numbers

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Reviews of the prospects for business operators reflecting the Coviddominated operational and social environment will continue to affect our lives for some time to come.

The scientists who have risen heroically to the challenge and given us effective vaccines in an extraordinarily short two years, have yet to be recognised.

Their expertise remains our major defence against a continually evolving pandemic, which has so dramatically altered our comfortable way of life.

Stressed Supply Lines

External issues affecting NZ Inc focus on our position at the end of long and increasingly stressed supply lines - a frustrating combination of shortages of key commodities and a resurgent economy in our major trading partners, caught logistics planners by surprise. Fewer ships, truncated services to bypass congested ports and shortages of containers all contribute to growing shortages of key products required by both business and consumers.

While spurring innovation, rapidly escalating costs have fractured the ‘just in time’ concept many firms used to rely on. Responsible Care NZ members were able to quickly switch to producing the sanitisers and cleaning products desperately needed to help constrain the spread of Covid in the community, only to face new challenges like the growing shortage of skilled staff currently hampering national infrastructure development, such as much needed housing, roading and construction.

Unnecessary Worker Shortages

Controversial, constantly changing and increasingly illogical immigration policies are denying New Zealand the qualified workers needed to improve productivity at a time our principal income sources are under threat.

The loss of our lucrative international tourists together with Australian competition for the mutually beneficial foreign student’s market and desperately needed skilled healthcare, teachers and engineers continues to threaten our economic and social wellbeing.

Efforts to capitalise on increasing demand for our food exports remain hampered by the beleaguered logistics system battling with refrigerated container shortages, reduced flights and worsening labour shortages.

Covid vs Governance

Meanwhile, our preoccupation with Covid camouflages important governance issues, particularly the continuing failure to adequately consult with key stakeholders, while largely ignoring advice from officials.

Controversial legislation passes quickly through the Select Committees denied the opportunity to rigorously scrutinize poorly drafted regulations, resulting in unintended consequences.

Critical issues ranging from how to achieve a successful transition from coal and fossil fuels to as yet inadequate renewable energy replacements, to the introduction of controversial, outmoded compulsory wage setting (FPAs) have not been comprehensively debated.

Meanwhile, the Public Service continues to expand as massive departmental reorganisations seek to centralise decision-making and resources, resulting in expensive job creation and costly complexity, without a sound business case.

The Perilous Path

NZ Inc treads an increasingly perilous path in world affairs as our major trading partners align themselves with allies concerned with territorial ambition to divert attention from domestic problems, and less interested in preserving free trade.

Domestically, our escalating national indebtedness continues to be fueled by housing costs, increasingly expensive

consumer costs and the dubious quality of some government spending.

Rapidly increasing inflation is of growing importance for businesses already grappling with staffing issues, diminishing customers and more expensive goods and services.

No Quick Fix

Supply disruption will not be quickly resolved. Congested international ports and distribution centers are unable to quickly clear backlogs due to labour shortages, especially long-haul drivers and a reluctance to operate ports 24/7.

Locally, industry will either struggle to cope with delays to critical supplies or stand the cost of stockpiling essential items. For example, compliant bulk chemical storage facilities convenient to main centres are at capacity.

Self-Sufficiency Myths

A sensible debate about enhancing greater self-sufficiency will be fruitless, illustrating the government’s expectation that fuel importers will spend millions on increasing storage capacity rather than retain our sole oil refinery.

Reconstituting inefficient and costly local production of low value, mass produced items like rail wagons ignores the need for economy of scale and avoiding unjustified expense, repeating the ill-founded policy of assembling expensive imported kitsets to provide politically useful local employment.

Complementing ongoing industry efforts by investing more in ensuring we have the required talent available, instead of persevering with largely unsuccessful attempts to pick prospective commercial ‘winners’ must surely be a priority for quality taxpayer spending.

Selectively Increase Immigration

Opening the border to skilled migrants to overcome critical skill shortages is overdue. Together with urgently needed tradespeople and agricultural workers, professional migrants also help train and mentor desperately needed healthcare, teaching, science and engineering students.

Many enjoyed a magnificent and welcome Summer break, thanks to 95 percent double vaccination levels, the commencement of booster shots and vaccination of the vulnerable five to 11-yearold group. We now need to capitalize as fast followers successful Covid protection strategies reflecting the consensus of our scientific advisors.

Bipartisan and Pragmatic Solutions

As we adjust to a new pandemic ‘normalcy’, New Zealanders can rightly appreciate the circumstances we presently enjoy, compared to many countries. Despite the tardy rollout of rapid testing options, there is cause for optimism that Covid variants can be successfully managed, enabling us to begin restoring business confidence and repairing the social and environmental damage.

To do so, we require bipartisan, pragmatic solutions, beginning with a year of achievement - not rhetoric.

Hundreds of nonvaccinated, scarce healthcare workers, teachers and emergency service providers are being stood down as we seek a process for sensibly managing ‘anti-vaxxers’ at work and throughout the community.

A lack of substance in our latest climate change commitments, demonising agriculture, highlights the urgent need for government confidence in industry sectors identifying practical and cost-effective solutions to GHG mitigation measures, including longterm energy generation and storage, particularly in transportation and agriculture.

Address The Real Issues

Decade-high inflation permeating the economy, continuing shortages of key commodities and escalating fuel prices, increasing the cost of living, might finally capture easily diverted media attention. Political aspirants for the 2023 election need to urgently share and debate pragmatic proposals to accelerate and sustain New Zealand’s aspirations as a role model for sound economic, social and environmental success in a pandemic dominated future. Can we, do it? Of course, we can. Will we, do it? Check back in January 2023.

Responsible Care Chief Executive Barry Dyer

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

Contents

3 Working together to boost health and safety

4 Beware the Ides of March

8 How to operate efficiently in a Covid environment 12 End year wrap-up reveals clues for 2022 property market 14 Facilities management with personal service

16 Build to Rent: an ever more compelling case for New Zealand 20 Eight key themes shaping our future cities

24 Industrial sector – big strides, small footprints 27 Kiwi innovation leading the way in concrete slab insulation 28 Breathing fresh life into the office experience

32 Is it better to litigate or deviate to alternatives? 43 No better investment than chemical safety training 44 Construction sector’s sobering suicide statistics 46 Industry leader in soft fall protection on construction sites 48 How to run your business in a pandemic

50 Critical infrastructure and supply chain support 52 Support for mentally healthy workplaces

53 Mental health when working from home

54 Covid-19 construction protocols

60 Omicron in the community – what this means for you 62 Re-programming muscle memory

64 Bastion NZ launch industrial glove range

66 Chemical safety relies on meaningful cooperation 68 AC Filter – an engineered solution protecting worker health 71 Treescape weathers the storm

72 Multi-purpose, safer, faster telehandlers increase productivity 74 Biofuel mandate – lower emissions or just higher fuel prices? 76 Rising from the Antarctic, a climate alarm

84 Water sector a key player in managing climate change 86 Timely advice for Three-Waters investment management 88 Three ideas for building the future cities we need

Published by Media Solutions Ltd PO Box 503, Whangaparaoa Auckland 0943 09 428 7456

Original material published online and in this magazine is copyright, but may be reproduced providing permission is obtained from the editor and acknowledgement given to Media Solutions. Opinions expressed are those of the authors and may not necessarily be those of Media Solutions Ltd. Sales Manager Margie Lindsay +64 22 317 8170 margie@infrastructurebuild.com Editor Michael Curreen +64 21 029 20234 michael@infrastructurebuild.com Get our FREE newsletter emailed to you each week

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