BusinessNZ – Business backs a four year term

BusinessNZ says there is support from the private sector for a longer political term in New Zealand, as the Government looks to introduce legislation extending it to four years.

Chief Executive Katherine Rich says extending the term is an important step towards improving the New Zealand’s governance and encouraging longer-term plans to fix major economic problems.

“A four-year term is not a new idea, it’s been discussed each decade by both National and Labour since at least the 1960s and put to the public twice by referendum.

“Most countries operate with four or five-year electoral terms. New Zealand’s three-year electoral term is one reason for the policy pendulum swings which contribute to a failure by successive governments to execute long term solutions.

“The reality is three years is too short to govern successfully – particularly when we are facing complex economic problems or long-term trends like the costs and impacts of our aging population, which may require tough political decisions to solve.

“BusinessNZ has long been a supporter of a longer term because business leaders value policy stability and a predictable environment where they can pursue productivity, innovation and growth, and feel confident about investing. Our current campaign Future Vision has been gauging support from businesses, who are largely in favour of a longer term.

“Business investment horizons surpass political terms, and successive flip-flops do nothing to enhance New Zealand’s reputation as a safe place to invest and do business.

“Political leaders hoping for change this time around will have to present a compelling narrative to explain the benefits in a way that rebuts fear, cynicism and tendency towards the status quo.”