23 October 2002 Speech Notes
Sustainable business in New Zealand
8:15 am
24 October 2002
NZ Sustainable Business Conference
Waipuna Hotel & Conference Centre,
58 Waipuna Road, Mt Wellington
Auckland
Recently I have been reflecting that this is the best time for a young person to be leaving school in New Zealand since
the early 1970s.
I have visited all regions of New Zealand and met many industry representatives and the growth and optimism is unlike
anything I have seen in the last 40 years.
Young people leaving school have options that kids in the late 70s, 80s and 90s never had.
Up and down New Zealand there are job vacancies.
When I was in opposition and meeting people up and down New Zealand one of the real problems facing the regions of New
Zealand was a shortage of jobs.
Unemployment is a social and economic scourge, and I remain convinced that an economy can never perform to its full
potential while there is a significant proportion of the workforce unable to participate and contribute.
Today, less than three years since this coalition government was elected, we have the lowest unemployment in 14 years,
at 5.1 per cent, yet we still have too many unemployed – particularly young New Zealanders and even more particularly
Maori and Pacific Island New Zealanders.
This week the Government released the DWI figures which show that the registered unemployed in some regions has declined
as much as 70 per cent.
We now face unfilled jobs and unemployment sitting, ironically, side by side while we have had to rebuild industry
training.
I heard recently that the West Coast is going to England this month in search of skilled workers. In Ashburton there are
so many job vacancies that employers are looking overseas for workers. There are also jobs for two hundred freezing
worker that can’t be filled – when did that last happen?
We can develop our economy into the ‘Pacific Tiger’ economy I believe we can be.
This incredible opportunity comes at the same time as the realisation that we need to ensure that our economic growth is
sustainable.
There are many definitions of sustainability. The definition adopted by the Government is from the Brundtland report of
1987.
It says that sustainable development is “development that meets the needs of the present without compromising the
ability of future generations to meet their own needs."
Sustainable development must regenerate and promote growth by maximising new opportunities and training so as to keep
fueling our economy.
In other words it is not sustainable development if it only lasts a generation. It must be part of a virtuous circle
that reinforces itself and gains momentum.
We need to have strong productivity growth, year on year, for the foreseeable future if we are to reach the top half of
the OECD rankings for growth, economic development and employment.
Currently much of our growth has been achieved by using spare capacity, such as the unemployed and under-utilised
capital equipment.
However real sustainable increases in productivity can only come as we improve our infrastructure, physical and human,
make more sensitive use of our natural resources, and work together.
I believe the New Zealand’s secret economic weapon is our new ideas. Our ability to innovate.
This is driving our current growth and up and down New Zealand I see examples of just how creative New Zealanders are:
- Hamilton jet boats
- Bruce McLaren
- Britten Motorcycles
- Refrigerated container ships
- Tauranga Motor Mowers
- Angus Tait
There are many examples but the message is clear, New Zealanders are talented and we have more ideas and creative energy
per head of population than nations much larger than ours. We can, and do punch above out weight in the international
arena.
I believe that this same innovation can make us a leader in sustainable business practice. If we can apply our
creativity to using our resources more carefully and implementing triple bottom line reporting we will be way ahead of
other countries.
All of you are leading the way in making this happen. Your organisations are promoting best practice and encouraging a
change in the mindset behind our business leaders.
One lesson of the last thirty years has been the need to work together. The retreat of Government from the market place
and from the community was a bold experiment.
And it failed.
The jury is back in and it didn’t work.
The market, left to determine how our resources would be used failed to deliver all the outcomes New Zealand was
promised.
After nearly 20 years of experimentation we had systemic unemployment, economic decline in nearly all our regions and
industries and continuing wasteful unsustainable use of resources.
The Labour Progressive Government has positively re-entered the economic and community development arena as a partner
with all the aspects of the commercial and voluntary sectors of New Zealand.
Three years ago when I first went to a region and said “I’m from the Government and I’m here to help” the audience
laughed.
However I meant it. And today I am here to say the Government is prepared to work with you.
This Government is committed to sustainable development and we recognise we can’t make it happen alone.
The sustainable development vision envisages a partnership with the sectors and industries of New Zealand in order to
create a path for ecologically and socially sustainable economic development.
There is evidence that businesses are already making the change to triple bottom line reporting and recognising their
responsibility to implement sustainable business practices.
Succeeding in business is dependent on your relationships including with your own community.
The community provides businesses with customers, staff and suppliers.
Dealing honestly and ethically with all stakeholders, recycling waste wherever possible, providing safe working
conditions, and acting as a good citizen in the local community all helps win customer loyalty and retain and attract
staff.
Environmental concerns are becoming more important to many individuals, as the GE debate and demand for recycling
demonstrate.
It is clear that these values are not being left at home and are being taken to work by staff, and by managers.
A report to be released next month, by the Ministry of Economic Development, on business management in New Zealand has a
section on social responsibility. The report contains some heartening results.
The report looks at business practices of New Zealand companies both in terms of outcomes and practices. Most of the
businesses, 82 per cent, engage in community sponsorship or donations.
Most businesses try to donate to activities related to their businesses as part of their marketing and reputation
activities. The report notes that the businesses saw a ‘social good’ element as part of the objectives of their
sponsorship.
Concerns about the natural environment do not come out so well. Over a third of firms surveyed believe that
environmental measures are not applicable to their businesses.
This is clearly an area for education of businesses. The view that environmental management is too new, too expensive,
too difficult or not relevant, ignores the current costs of environmental pollution. The fact is that pollution and
waste represent additional costs, not value, for customers. For example handling, storage and disposal of packaging.
Businesses should see environmental management as an opportunity to lower their costs or improve their value – not as an
annoying expense.
It is clear that too few New Zealand businesses currently see the need to adopt triple bottom line reporting as well as
the range of sustainable practices that your companies promote.
But it does not need to be difficult. Being socially responsible can involve supporting local companies, paying staff
fairly, paying suppliers promptly, buying recycled and recyclable products, or using energy-efficient lighting.
The role for government in supporting the adoption of sustainable business practice is still emerging. Areas we are
exploring include:
- promoting good business management practice;
- increasing information and awareness of market opportunities from New Zealand’s comparative advantages in
“environmentally friendly” products and services;
- local employment and economic development opportunities around strengthened markets for resource recovery, reuse and
recycling; and
- using a sustainable development approach to reduce reliance on heavy handed regulation with a view to better meeting
environmental and social objectives with lower compliance costs.
I suspect that changing the way businesses operate is easier in a positive growth environment than in a tough hostile
market.
I think we have before us a huge opportunity.
The regions of New Zealand are all in positive growth mode, most at over four per cent.
There have been over 100,000 new jobs created in the last three years.
There are at the same time significant skills shortages.
There are now 3,000 new apprentices, and 68,000 people in industry training.
This Labour Progressive Government is committed to sustainable development and we are prepared to work with you to make
New Zealand a world leader in a responsible and sustainable development.
I congratulate you all on your commitment to sustainable development.
Even your attendance here today signifies your resolve.
I want to thank you for your efforts to make business about the future and about people.
And I look forward to working more closely with you in the future.
ENDS