Terence Harpur is chief executive of the Takapuna Beach Business Association
OPINION: It’s that time of the year – The 2025 Budget is being announced at the end of the month. There’s a lot of talk, but now’s the time for action. There’s an opportunity now for the Government to reset the narrative, regain consumer confidence, and set the country on a path towards sustainable growth.
As a business association, we have firsthand knowledge and intel about what small business challenges are and what they need to thrive. The 2025 Budget is a chance to, as our Prime Minister says, “get us back on track”.
The reality is that businesses are still doing it tough across most of the country, with March retail spend down 2.5% nationally. While Auckland overall is slowly improving, down just 1.4%, the Takapuna precinct has surged ahead with an 8% increase, according to Marketview data.
This standout performance clearly indicates the North Shore’s potential and the strong case for further investment to unlock even more growth and innovation.
More investment needed for largest national GDP generator
During the Finance Minister Nicola Willis’ pre-budget speech, I was pleased to hear her say that business growth and social initiatives were on the Government’s radar.
For businesses to grow and thrive, they need the right infrastructure and transport options.
Auckland is the powerhouse of New Zealand. We produce around 38% of national GDP and have about 34% of the population. Outside of the CBD, North Shore is the second biggest GDP producer.
The North Shore is home to over 400,000 people and 43,000 businesses, bigger than Wellington! Yet, we have no trains, one harbour crossing and one motorway. The lack of transport options is a significant bump in the road to continued economic growth.
We saw a great example recently of how vulnerable our infrastructure is with our single harbour crossing having two days of vehicle breakdowns during morning rush hour traffic, causing hours of major delays. We need to expedite plans for a second harbour crossing and start construction as soon as possible.
Compared to countries like Australia, New Zealand’s infrastructure is seriously lagging behind. The Government should double road projects to maximise benefits, but this will require careful and considered spending. We don’t always need an A+ gold standard like we have seen with the Puhoi to Warkworth motorway – instead, we should build to a B+ standard and triple the length of new motorway systems. Could a four-lane motorway have been extended up to Whangarei for the same cost?
If the Government can commit to investing more in Auckland’s infrastructure, this will benefit the whole country in a multitude of ways.
For starters, it would boost productivity and business efficiency. The result would be national economic growth (which we know is a top priority for the Government), more jobs and more tax revenue.
Safer communities to strengthen local economies
The retail sector, in particular, has been hit hard in recent years with an increase in crime – unfortunately, it’s become all too common.
Not only does it cause financial losses, but it also affects the wellbeing of staff and customers. This ongoing trend is eroding public confidence and placing an unfair burden on small business owners who are already dealing with economic pressures.
Here at the Takapuna Beach Business Association, we do our best to keep crime down and even invest in private security doing foot patrols in the area. Although this has had a positive effect on the precinct, the Government needs to step up and do more to make our communities feel safer.
We urgently need more visible police presence on our streets to deter criminal activity and respond quickly when incidents occur, but enforcement alone isn’t enough.
The Government must also place greater emphasis on prevention through investment in community safety initiatives, better youth intervention programmes, and strategies to reduce re-offending.
Retailers, particularly in high-risk areas, should also have access to funding for crime prevention tools like CCTV, better lighting, and security infrastructure.
Simply put, a safer retail environment means stronger local economies, more vibrant town centres, and communities where people feel secure to live, work, and shop.
A word on Government spend
Last week, Willis announced a $1.1b cut in the 2025 Budget in an effort to get the Government in surplus by 2029.
This means little spending on new initiatives.
While the public is more aware than ever of the Government’s spending, we must not lose sight of the medium to long term benefits of strategic social investment.
Spending in areas like health and education isn’t just an expense – it’s an investment in the future of our society and economy.
These investments keep our nation functioning and performing at its best, ensuring that we are healthier, more productive, and better equipped to handle future challenges.
For example, the New Zealand College of Public Health Medicine reports spending on public health measures returns $14 in benefits for every $1 spent – a 1,300% return on investment!
By maintaining careful and targeted spending on these essential areas, we can tackle current challenges while laying the groundwork for a more thriving and resilient New Zealand.
