The Government has revealed the 2023 Wellbeing Budget.
Ahead of the Budget announcement the Association outlined what we were hoping to see this year. You can find out more here on our priorities for the budget, and through our Election Manifesto priorities here.
As an Association, we are focused on ensuring that the Government is working in partnership with our sector to better understand what we need. While hospo itself is leading the long-term work that will make our sector more resilient, we also know that ongoing skills shortages, increased costs of doing business and the ever-changing regulatory environment only add to the pressures we have experienced over the past three years. Therefore, we are pleased to see there are some initiatives in the 2023 Budget that will help support our industry, for instance the apprenticeship boost scheme and MSD funded work-based programmes. Whilst there have been some measures to address the cost of living crisis we still believe the Government needs to do more to address the rising cost of goods.
2023 Budget highlights:
- Half price transport for under ’25’s from 1 July (and free for primary school-aged children)
- Apprenticeship boost scheme extended to the end of 2024
- Funding to assist with the implementation of the Tourism Better Work Action Plan
- $71 billion in infrastructure spending
- National Resilience Plan set up with initial funding of $6 billion, to future-proof rail, road and local infrastructure
- Investment in the future establishment of Rau Paenga – the Central Crown Infrastructure Delivery Agency,
- Three new multi-institution research hubs, focused on climate change and disaster resilience, health and pandemic readiness, and technology and innovation
Cost of living
It is encouraging to see the Government looking ahead and ensuring that fundamental barriers to participation in the Labour Market are being addressed. However, the Association believes more needs to be done to address cost of goods.
We know that many younger hospitality workers use public transport, so we welcome the introduction of permanent half-priced public transport for those under 25 years of age which will help many of our younger workforce that live in areas serviced by public transport to get to and from their workplaces. Although, this is still an issue for those working outside of transport operational hours or living in areas not serviced by the transport network.
The reinstatement of the Training Incentive Allowance will also benefit both business and workers, to fill skills shortages by encouraging people to retrain.
Labour Market
It is important that the government take steps to get in front of the cost pressures across the regulatory management of quality of the labour market. This is one of the most important things the government can do – by ensuring that we have the administrative and frontline regulatory staff required to meet high demand for statutory services.
Ensuring that visa applications can be processed in a timely manner by addressing the cost pressures at Immigration NZ is a welcome recognition that this has been lagging for some time, so we welcome this investment.
Infrastructure
Our industry needs certainty and security for the future. We’ve endured more than three years of unprecedented disruptions, and want to know that there is a plan in place to support New Zealand’s recovery. Therefore, we welcome the $6 billion investment in a new National Resilience Plan to address the national infrastructure deficit.
We also welcome the $100 million to establish Rau Paenga – the Central Crown Infrastructure Delivery Agency, which we hope will deliver greater resilience in our national infrastructure.
Economic Resilience
The Restaurant Association is focused on continuing our work to build a more resilient Hospitality sector, and welcome the funding for Industry Transformation Plans – including $18 million for Tourism. The Restaurant Association has been an active leader in this work and we are proud to have implemented many of the initiatives now being recommended by the Tourism ITP.
Māori Tourism
NZ Māori Tourism does important work to support the wider tourism story and the Association is pleased to see an $8 million boost in funding. The Association is confident this increased investment will support the collective efforts industry is making to set Aotearoa New Zealand apart on the international stage for our culinary excellence and diversity.