Katherine Rich: Business NZ CEO on the follow up report on reducing compliance costs for small businesses

Business NZ believes further action is still needed to address compliance costs for small businesses. 

It says the Government's making good on its promise to cut red tape, but its new progress report shows several compliance burdens across sectors, including construction. 

The Ministry for Regulation’s engaging with businesses, councils, and industry bodies to begin removing inconsistent regulations. 

Chief Executive Katherine Rich told Mike Hosking some areas, including hairdressing, are showing positive progress, but wants to see a similar approach applied across all sectors. 

She says 97% of all businesses are small, and the red tape they face can be significant. 

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
New report this one into the government's promise to cut
sme red tape. Are they yes? So what have we
got a year on positive steps in reducing compliance cost?
Most issues are showing progress, so this is all good.
We've seen the hairdressing regulations of course, the employment leave disputes,
the government procurement, the anti money laundering rules changed anyway.
Catherine Rich is the Business New Zealand boss and is
back with us. Catherine, good morning, Good morning. From what

(00:39):
they've done out of ten, ten is perfect, ones a bust.
What's your number?

Speaker 3 (00:43):
I'd say about a seven. I mean there's more progress
to be made in a number of areas. But changes
to some of the things you mentioned are pretty significant.
Changes to government procurement, getting rid of forty years of
stupid hairdressing laws, health and safety, holidays acts. It's a
lot of good work. Some haven't engaged though, so this
room for progress.

Speaker 2 (01:04):
The Ministry of Regulation. Is this all they're doing, and
therefore is this justifiable ministry?

Speaker 3 (01:11):
They have been part of the change. I mean, they
are another place for business to take some of their concerns.
But when the Business New Zealand Network did this survey
of small business, we actually took the results to about
seven different government departments. So most of the government departments

(01:31):
have been engaging, some haven't.

Speaker 2 (01:34):
Is that part of why the Ministry of Regulation may
well work? There are too many government departments overseeing each
other's work and therefore it becomes problematic and unproductive.

Speaker 3 (01:42):
Well, it's another way in to raise issues, So that's
why I am a fan of the Ministry for Regulation.
It's been a way of raising issues with departments, particularly
if the department doesn't want to put stuff into their
work program. So overall, I think the progress has been good.
One year on. We're pretty pleased with some of the

(02:03):
responses from departments, but there's work to be done. Acc
I think need to make some changes on case management
and helping business businesses clarify when people can get back
to work. Business U Zealand's a champion for the small business,
so this is just another way we keep the pressure.

Speaker 2 (02:22):
On good But the hairdressing. As much as I'm all
in favor of getting rid of red tape and all that,
so the hairdressing stuff was almost comedic, wasn't it. I
mean stupid laws, yes, and get rid of them. Yes,
But it didn't change the world, did it.

Speaker 3 (02:34):
Well, it's still a sector which is about which is
worth about one point five billion to the economy and
if you were in that sector, it was a big deal.
And this is the thing with small business red tape.
When you've got ninety seven percent of all businesses being
small and the red tape that they face can be significant.
So you've got to go sector bisector to get rid

(02:55):
of it. That's about the only way to reduce red tape.

Speaker 2 (02:58):
All right, Catsine, appreciate your time. Let's hope they keep
up the good work. Catherine Rich, who is the Business
New Zealand Chief Executive

Speaker 1 (03:05):
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