Latest news with #LeeannWatson
Otago Daily Times
7 days ago
- Business
- Otago Daily Times
Investment confidence boosted
Canterbury businesses are already lining up commercial buildings and buying other big-ticket items on the back of the government's Investment Boost scheme. The scheme has opened the way for businesses to consider tax incentives for upgrading, improving or increasing business assets such as transport, machinery and other investments. In the new tax deduction, businesses can claim 20% of the cost of new assets bought from May 22 as an expense, then claim depreciation as usual on the remaining 80%. The incentive is being credited in part for a boost in vehicle sales in June. A total of 11,862 vehicles including commercial vehicles were registered, up just over 25% on 9415 vehicles for the same month a year ago. Business Canterbury, formerly the Canterbury Employers' Chamber of Commerce, held a session for about 40 members on the new scheme with Deloitte specialists providing advice on which investments qualified. Chief executive Leeann Watson said there was strong interest among business at this early stage to be part of the scheme. She said the scheme was giving businesses confidence to bring forward investment. "For example, one of our members is overseas buying a piece of machinery and they had that on the radar, but have brought forward that investment sooner than later because it frees up some cashflow. We talked to another quite big business looking at some commercial buildings and they will use that as a way to help with their cashflow." Further feedback from another large business was the scheme had not changed its appetite to invest, but it believed the cashflow benefit would free up capital allowing the business to use the depreciation to redirect it into other investments, she said. Most depreciable assets could be bought including plant and equipment, commercial buildings, improvements to existing assets and second-hand assets sourced from outside New Zealand such as imported vehicles. Excluded from the scheme are land purchases, residential dwellings, some fixed-life items such as software licenses and patents and petroleum and mining permits. The government expects the Investment Boost will lift GDP by 1% and wages by 1.5% over the next 20 years. Ms Watson said businesses were pleased commercial buildings were included as they were not initially expected. "In Canterbury there is still quite a strong pipeline of commercial buildings going up in and around the commercial city and that is a significant opportunity for those businesses because you are talking ... in the millions of dollars." Demand for commercial property could rise as a result, she said. "We are seeing that consumer demand is still quite slow and what this will do is help stimulate the economy and get people to make those investment decisions sooner rather than wait until things are more certain." Inland Revenue is expected to release more guidelines either later this month or in August.
Otago Daily Times
09-07-2025
- Business
- Otago Daily Times
Businesses lining up commercial buildings
Canterbury businesses are already lining up commercial buildings and buying other big-ticket items on the back of the Government's Investment Boost scheme. The scheme has opened the way for businesses to consider tax incentives for upgrading, improving or increasing business assets such as transport, machinery and other investments. In the new tax deduction, businesses can claim 20% of the cost of new assets bought from May 22 as an expense, then claim depreciation as usual on the remaining 80%. The incentive is being credited in part for a boost in vehicle sales in June. A total of 11,862 vehicles, including commercial vehicles, were registered, up just over 25% on 9415 vehicles for the same month a year ago. Business Canterbury, formerly the Canterbury Employers' Chamber of Commerce, held a session for about 40 members on the new scheme with Deloitte experts providing advice on which investments qualified. Business Canterbury chief executive Leeann Watson said there was strong interest among business at this early stage to be part of the scheme. She said the scheme was giving businesses confidence to bring forward investment. ''For example, one of our members is overseas buying a piece of machinery and they had that on the radar, but have brought forward that investment sooner than later because it frees up some cashflow. We talked to another quite big business looking at some commercial buildings and they will use that as a way to help with their cashflow.'' Further feedback from another large business was the scheme had not changed its appetite to invest, but believed the cashflow benefit would free up capital and use the depreciation to redirect it into other investments, she said, Most depreciable assets could be purchased including plant and equipment, commercial buildings, improvements to existing assets and second-hand assets sourced from outside New Zealand such as imported vehicles. Excluded from the scheme are land purchases, residential dwellings, some fixed-life items such as software licenses and patents and petroleum and mining permits. The government expects the Investment Boost will lift GDP by 1% and wages by 1.5% over the next 20 years. Ms Watson said businesses were pleased commercial buildings were included as they were not initially expected. ''In Canterbury there is still quite a strong pipeline of commercial buildings going up in and around the commercial city and that is a significant opportunity for those businesses because you are talking ... in the millions of dollars.'' Demand for commercial property could rise as a result, she said. ''We are seeing that consumer demand is still quite slow and what this will do is help stimulate the economy and get people to make those investment decisions sooner rather than wait until things are more certain.'' Increased vehicle registrations were probably a good indication the scheme was being applied as vehicle fleets needed to be upgraded. A flow on effect of the economy being stimulated was more jobs created, she said Inland Revenue is expected to release more guidelines either later this month or August.
Otago Daily Times
02-07-2025
- Business
- Otago Daily Times
Tariffs, rising costs take toll on confidence levels
Canterbury business owners are no longer oozing with confidence as shoppers and other consumers resist the buying urge. Business sectors appear to be in different camps about trading prospects for the year ahead with some upbeat and others less hopeful because of delays to an expected lift in demand. Hospitality and retail businesses are among those less optimistic with cash tills more muted through tough winter months and they are looking forward to the opening of new major city sporting facilities. Lower interest rates should have given them reason for hope, but many businesses remain on fixed rates locked in over the last two years and shoppers in the same position are sticking to household necessities. Some manufacturers are struggling to reach sales targets, while others in software, electronics and high-value food markets are investing in new machinery on the back of increased demand. Exporters continue to be uneasy about the way United States President Donald Trump's tariffs will play out and concerned about the threat of overseas conflicts on trading. Canterbury Business said confidence had not continued its upward trajectory this year as many had hoped, despite reaching a high point last December. In its survey of 400 small and large businesses for the quarter year 53% expected the Canterbury economy to be stronger over the next year and 51% expected a stronger financial performance. The survey revealed 82% were confident in their ability to deal with disruption. Chief executive Leeann Watson said business trading was still heading in the right direction, but less quickly than owners would like. "The levels of confidence that we saw in December are still heading up, but slowly. What's not necessarily being in line with that is consumer demand. That's much slower, but again still heading in the right direction." Food and grocery retailers were in a business-as-usual position, while those selling clothing, sporting goods or other items such as cars and boats were tending to feel the pinch because of cautious spending on non-essentials. Ms Watson said the business environment was in an overall holding pattern, but was expected to pick up at the tail end of the year. Restructuring and redundancies had stabilised and businesses were investing in marketing for a growth phase, she said. Business sectors varied in their confidence with some doing well and others cautiously optimistic about the future or conservatively holding back from investing in their businesses until interest rates kicked in. Those in recovery mode were often not yet ready to expand or struggling with challenging decisions about the future, she said. Hospitality NZ Canterbury branch president Jeremy Stevens said owner operators were positive after a seasonally slow June following a strong May. April trading was challenging as customers optimised their leave because Easter and Anzac Day holidays were so close together and venues such as Akaroa and Hanmer Springs did better than central city outlets, he said. Mr Stevens said operators expected a "quite special" period over the next year. "Having the metro sports centre open will bring a lot of people travelling around from New Zealand and also Australia in sports teams ... conferences being held at Te Pai and the stadium opening next year with the metro sports centre that's really going to help boost accommodation and central city trade." He said discretionary spending was also expected to increase when lower interest rates flowed though. "I think the biggest challenge for the industry is the continual increased cost of goods." Hospitality closures were at normal levels and should not shadow success stories, he said. Manufacturers coming off long term contracts are also facing significant increases in overheads including rising energy prices. Ms Watson said a slower rebound than expected in consumer confidence and demand was taking its toll and continued geopolitical instability was creating challenges for business facing the other complications. The survey tracked 59% of businesses expecting to hire staff within the next year and 60% planning to invest in property, plant and equipment — up marginally on 57% the previous quarter. The big challenges continue to be consumer confidence and demand, productivity and growth, inflation and interest rates, cashflow and compliance costs.
Scoop
01-07-2025
- Business
- Scoop
Business Confidence Remains Stationary Despite Early Optimism
Canterbury businesses confidence is levelling off, according to Business Canterbury's latest Quarterly Canterbury Business Survey. Despite reaching a high point in December last year, business confidence has not continued its upward trajectory in 2025 as many had hoped. Business Canterbury Chief Executive Leeann Watson says, "Business confidence has rebounded significantly since this time last year, but the early optimism late last year hasn't continued its upward trajectory into 2025, with consumer confidence and demand being slower to rebound than anticipated and continued geopolitical instability taking its toll." "However, while our businesses aren't getting more confident each quarter, it's still generally positive out there. "When we look at the key indicators, 59% of businesses are expecting to hire staff within the next 12 months and similarly, those expecting to invest in property, plant and equipment sits at 60%, compared to 57% last quarter. "So, while the current environment could be described as stationary, it is by no means gloomy. "We are seeing different levels of market recovery across different sectors, with businesses falling into three distinct categories: those making significant headway in growth, those in recovery mode but not yet ready to expand, and a sizeable group still struggling with challenging decisions about their future. "The big challenges haven't shifted much, we're still hearing concerns around consumer confidence and demand, productivity and growth, inflation and interest rates, cashflow, and compliance costs. "These remain front of mind for many of our members and the wider business community, and despite drops in the OCR, we are yet to see the full impact of these with many still on fixed rates locked in over the last two years, which is also impacting sticky consumer confidence and demand. "Canterbury is positioned well to grow quickly when the market turns. Canterbury is the place to be, and people want to be part of our growth story. Since 2018, over 40,000 people have moved to Canterbury from other parts of New Zealand." "Our regional economy is also highly diversified, 5 th compared to Auckland at 11 th and Wellington at 14 th - contributing to business resilience here, with 82% reporting confidence in their ability to manage disruption.
Scoop
22-05-2025
- Business
- Scoop
Businesses Backed Through Investment Boost
Business Canterbury welcomes the delivery of Budget 2025, which appropriately signals the importance of business in the recovery of our economy with the centrepiece 'Investment Boost' initiative. Business Canterbury Chief Executive, Leeann Watson says, "The key measures of success in this budget for businesses were, does it provide a platform for growth, does it help keep inflation and interest rates low, and does it continue to address our infrastructure deficit." "Businesses have been hesitant to invest and grow recently, despite growing confidence in the future strength of the economy. The 'Investment Boost' initiative announced today will provide an incentive and give businesses confidence to activate their growth plans, knowing they can reduce the financial impact at a time when cash is still tight. "This is particularly important for small businesses, which contribute 40 per cent to GDP and employ 600,000 New Zealanders. "We know that in certain sectors like manufacturing, automation and efficiency gains come at a significant cost. 'Investment Boost' will be a great platform for productivity gains that will enable growth right across the economy. It is business growth that will drive economic recovery, job creation and income growth for all New Zealanders. "Infrastructure will continue to challenge us as a growing region. Infrastructure deficits require a constant and expanding pipeline of work so that when the economy turns a corner, we have the infrastructure in place to support it. "Overall, this is a sensible Budget that does not jump the gun on growth, with sensible spending limits and reprioritisations made where spending was not getting the best bang for buck. "Businesses have already been budgeting this way, doing more with less and spending smarter, not more. "While this was clearly signalled by the Minister in pre-Budget announcements, it was important that restraint in spending was followed through with, as a key role for the government right now is providing the conditions that keep interest rates and inflation falling and stable."
