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Employment

Can you talk a bit to your professional background and your current work at Auckland Unlimited and Economic Development New Zealand?

I’m General Manager Economic Development at Auckland Unlimited, the region’s cultural and economic development agency. We deliver a co-ordinated, region-wide programme to maximise cultural, social and economic benefits for Aucklanders and visitors, and support our local businesses to thrive.

Before Covid-19, my role at Auckland Unlimited centred on leading international business and investment attraction, innovation, business growth, and sector and skills development. Now, it’s all the above, with a focus on the region’s economic recovery from the pandemic and how we can collectively support our communities, businesses, and industries in a Covid-19 world.

Since mid-2019 I’ve been chair of the national professional body, Economic Development New Zealand (EDNZ). I work to support the growth and reach of ENDZ as it strives to empower and enable our members and to be a strong advocate for economic development across all our regions to government.

By way of background, I was born in Tāmaki Makaurau Auckland, raised and educated in the Waikato, and have worked in Auckland, Wellington and overseas. My career has been varied, across local and central government, trade and investment, place brand, technology and innovation, the publishing and screen sectors, city-to-city links, and the non-profit sector.

Why is collaboration between the regions so important for overall national economic growth? 

In a small country such as New Zealand, it’s important we combine our talents because when the regions do well, the entire nation does well. 

Our regions are diverse in their attributes, with the potential to attract international investment, provide employment opportunities and raise shared prosperity – all indicators of economic growth.

In Auckland, we’re known for our large contribution to New Zealand’s GDP (nearly 40%). Our contribution to GST on production, import duties and other taxes was $9.3 billion alone for 2018, approximately 4.5 times greater than any other region.

This contribution to the nation’s economy has been brought into stark relief since the pandemic arrived on our shores, with the impacts of Auckland’s regional lockdowns felt across the country – particularly in domestic tourism, cultural and sporting events.

Collaboration across the regions has always been important for national economic growth and is now increasingly important as we navigate uncertain times. Auckland Unlimited collaborates with public and private sector partners across New Zealand to bring scale and impact to a range of projects to grow employment and prosperity.

We’re working with the economic development agency Northland Inc. in Te Tai Tokerau and Waikato District Council, to cement the natural geographical and economic bonds between the regions. This includes supporting initiatives across tourism, Māori economic development, innovation and investment attraction.

We’re also working with a cross-sector steering group and our fellow economic development agencies for Wellington and Christchurch, to collaborate with central government about how to share information and collaborate around border management to help support local jobs and economic activity. 

If the pandemic has taught us anything, it’s that there is strength in numbers. We’re stronger when we work together, and it’s no different in the field of economic development.

Why do you think Covid-19 has had such a disproportionate economic effect on women?

Covid-19 has shone an even brighter spotlight on the entrenched gender-based career inequalities we’re all familiar with – from a women’s place in the labour market, the value of her work, the amount of unpaid work expected of her, and all within a society with many structural inequalities.

It’s fair to say women are bearing the brunt of the pandemic’s economic impacts predominantly due to the number in part-time work and service-based jobs across retail, tourism and hospitality.

It’s a marked change from previous recessions – the 1980’s financial markets crash and 2008’s GFC – where it was men who were harder hit in business sector roles. Now, frontline women in the service sector are most at risk and we’re anticipating this could get worse as businesses learn to get by with lower staffing levels.

For women able to work from home through Auckland’s recurring lockdowns, it’s likely they are juggling job expectations and unpaid work, perhaps reducing paid hours so they can care for children. Again, structural inequalities mean this may be a better financial option for a family.

We can say New Zealand is slowly improving at a leadership level. Pre-pandemic the number of women on the boards of publicly listed companies was growing. However, many women are still faced with the obstacle of the ‘bottom rung of the broken ladder’. 

What can and is being done to address these disparities? 

There is an awareness in government, boardroom and management about the economic disparities women face, particularly women of colour. We all need to keep raising and spreading this awareness as part of our challenge to the status quo. 

There’s overwhelming evidence of the positive impact women’s ideas and voices have in governance and leadership, and when women’s economic wellbeing and education are lifted – benefits for whanau, communities, businesses and countries. 

Groups like SUPERdiverse WOMEN, the Government Women’s Network, TechWomen, the Women’s Entrepreneur Network, Global Women and many others are working hard advocating, training and linking women, making them more visible and connecting them with opportunities.

From networks like these to targeted government and business programmes, there are a range of scholarships, internships, graduate and observer programmes, and we also see women seizing the chance to flourish and triumph in wider initiatives, like the amazing interns I met at the recent Tupu Toa Gala.

Co-working and innovation spaces are also important too, bringing startups and entrepreneurs together in a community, and here in Auckland many of those spaces are led by women, enabling others. Look at the work people like Manawa Udy is doing with Ngahere Communities at Grid Manukau and online with Konei; co-founder of Auckland’s Click Creative Tech Studios, Aleisha Staples; Imche Fourie working with start-ups at New Zealand’s home for deep tech, LevelTwo; and our own Eve Charles working with startups at GridAKL.

To what extent have returning Kiwis had a positive effect on the economic development of New Zealand during its Covid-19 recovery?

While it’s sad to see the lives of so many Kiwis around the world disrupted by Covid-19, it really is a tremendous opportunity for New Zealand to welcome them home. They bring with them so much talent, knowledge, experience and more importantly, a fresh perspective to complement the high-calibre talent already here.

Kea’s Welcome Home Survey, which surveyed 15,000 expats around the world, highlighted the once-in-a generation opportunity the pandemic brings – people looking to return and or having already returned at the height of their career, with a willingness to contribute to New Zealand’s future.

We’re thrilled the survey revealed 32 per cent of respondents intended to or had already returned to Auckland. It’s an honour to have these people choose Tāmaki Makaurau as their home, but with this comes a great responsibility for our region given the role it plays in the national economy.

We need to welcome them, provide a space for their work and their ideas, and listen and collaborate to help them achieve their goals, as their experience and perspective may hold the key to problems New Zealand needs to solve.

We’re seeing the top industries looking to return are technology and science, and the arts and creative industries – all sectors of strength and significant potential for our region. The arrival of expat Kiwis looking to grow these sectors presents a great opportunity for our people, helping create high value, high-skilled sustainable jobs.

In a post-Covid economy, what do you believe the opportunities are for New Zealand to grow in a more productive and sustainable way? 

In August we brought 200 Auckland business leaders together to explore how we live, work and do business in a Covid-19 world. One of most memorable discussions was an ethnically diverse panel of energetic women – all coincidentally wearing bright red – talking about health and social cohesion.

They hit on the recurring theme of the day – that this is an opportunity to reset the region for the future. While that includes building on our comparative advantages and seizing growth opportunities, it also includes addressing racial inequality and racism that underpins things like pay equity. And a key part of a reset will be working in partnership with iwi and honouring Te Tiriti o Waitangi. 

The Māori economy here in New Zealand – indigenous economies internationally – and regenerative economic models offer us ways of doing things different, more sustainably and inclusively, as we respond to Covid-19, climate change and social inequality. Our Māori creatives, entrepreneurs and innovators also make an enormous and unique contribution to our economy and our position in the world.

For New Zealand, there is significant opportunity for our ‘weightless economy’, based on technology and intellectual property. In Auckland, our thriving screen and technology sectors make a strong foundation to build on, and the intersection of our creative industries and technology is a really exciting space, as is green or clean tech. 

What would your advice to a young Kiwi woman early in her career be?

Take your opportunities – and it may be simply doing the very best in your current role. Everything you do is a building block, adding new connections and experiences, which will become part of your story and your future opportunities.

To what extent do you believe building networks and global Kiwi connections is so important? 

Networks and global connections are so important as they are an essential ingredient in making great things happen. Most important is how people act and use their networks and connections – being collaborative, respectful and open to new ideas and views.

What are your hopes for 2021? 

Like 2020, this year is dominated by COVID-19. I’ve heard both our Prime Minister and President of the European Central Bank Christine Lagarde call it ‘the year of the vaccine’. My hope for 2021 is that vaccine rollout is swift and widespread so that we can get our economic recovery underway but most of all that we can resume reunion of families, and in- person business relationships. Because ultimately, it’s our core connections and networks that enrich our lives.

CONTRIBUTOR

Pam Ford

GM Economic Development

Auckland Unlimited

Kea member


HOW KEA CAN HELP YOUR BUSINESS GROW

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Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

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Filed Under: Businesses growing at home, COVID-19 recovery Tagged With: ATEED, Auckland Unlimited, Economic Development, Employment, Inequality, Pam Ford

With many returning to remote working under increased alert levels across New Zealand, working from home is becoming the new normal.

Technology advances allow individuals to virtually connect with colleagues, attend meetings and essentially operate in business as usual conditions from their home offices – be that their study, bedroom, beach house, kitchen table or beyond.

With remote working becoming so accessible and acceptable, the geographic constraints which usually operate in an employment relationship no longer apply. Increasingly, we are seeing individuals operating from a completely different country and time zone to their employers.

Since the closure of travel routes and national borders in March this year, over 40,000 New Zealanders have returned home. Some to shelter in New Zealand temporarily, others on a more permanent basis, drawn back by the comfort, familiarity and lifestyle that home offers.

Many are continuing their employment, working from New Zealand for employers in London, New York, Beijing, Sydney and other locations worldwide.

Potential tax issues to be aware of

For those taking refuge in New Zealand temporarily, COVID-19 concessions applied by Inland Revenue have enabled them to live and work here until such time as they are practically able to return to their home locations, without needing to worry about New Zealand tax.

Individuals are usually treated as tax resident in New Zealand if here for more than 183 days in a 12-month period (including time accumulated over multiple trips, such as holidays, within this window). Tax residence is backdated to the first day, rather than day 183.

The concession for individuals stranded in New Zealand due to COVID-19 travel restrictions ignores additional time spent in New Zealand, if that would otherwise tip them over the 183-day threshold. But it does require a person to leave New Zealand as soon as it is practically reasonable for them to do so.

Now that the borders are reopening, where it is practically reasonable for them to leave, individuals need to return to their usual home, or risk being subject to tax in New Zealand from the first day of their arrival.

Individuals choosing to remain in New Zealand create a tax risk not only for themselves, but also for their foreign employers.

Impact on foreign employers

In New Zealand, employment income is taxed in two ways; if you are tax resident, or if the income is sourced here because you are physically working in New Zealand.

New Zealand’s tax system does not have any territorial limitation. This means that a foreign employer will have an obligation to comply with New Zealand employment taxes, including registration and payment of PAYE to Inland Revenue, for any New Zealand based employees who are New Zealand tax resident, or if their income is sourced here.

Inland Revenue has recently issued a draft statement which potentially removes the obligation of foreign employers, that have no connection to New Zealand, to register as an employer and withhold PAYE on behalf of any New Zealand-based employees. Instead the New Zealand-based employees will be responsible for meeting any New Zealand tax obligations directly with Inland Revenue.

If confirmed, keeping in mind the position is in draft only at this stage (so care should be taken if relying on it), it will be a big change from the approach to date for non-resident employers.

It will also have significant implications for the New Zealand tax system, including the ability for Inland Revenue to collect the tax. Certain types of remuneration, such as fringe benefits, may be tax-free, if provided by a non-resident employer where they no longer have registration and payment obligations in New Zealand. This potentially creates an advantage for non-resident employers over New Zealand based employers.

Impact on employees

Being responsible for managing PAYE can create several complications, especially if individuals are still being paid through their foreign employer’s payroll, with employment taxes also deducted in the employer’s location. New Zealand based employees could find themselves double taxed until such time as they are able to claim a tax refund from the offshore tax authority. We are also seeing many foreign tax authorities taking the view that employment income is sourced in the employer’s country, even though double tax treaties and OECD guidance dictates that the country where the work is being physically performed has the primary taxing right. This will also create double taxation risk, if unable to be resolved.

Prior to March 2020 most cross border travel by employees was at the behest of their employers, who would also take the lead in ensuring that tax obligations as a result of cross-border working arrangements were being met. Where remote working is employee led, including due to COVID-19, individuals are often left to their own devices to resolve the complexities of determining how, when and where their employment taxes should be paid without the benefit of timely tax advice.

Being mindful of this and seeking specialist advice is recommended to ensure there are no tax fish hooks for either New Zealand-based employees, or their foreign employers, from new working arrangements arising due to COVID-19.

KPMG has prepared two helpful Tax Guides – Beyond Borders for Individuals, and Beyond Borders for Business Owners, which you can download for free.

If you would like to seek advice or to arrange your KPMG Kea Global Repatriation Package, our People Services team would love to hear from you. Please call Rebecca Armour on +64 9 363 5926 or email her at [email protected]

CONTRIBUTOR

Rebecca Armour

National Leader, People Services

KPMG in New Zealand

Kea member

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Filed Under: COVID-19 recovery, Kiwi coming home Tagged With: Coming Home, Employment, KPMG, Rebecca Armour, Tax

The pandemic has created a new lexicon, where words and phrases once used infrequently are now part of our everyday vocabulary.

Now in the swing of another ‘unprecedented’ year, concepts like the ‘weightless economy’ – driven by information and intellectual property – are increasingly important for the recovery of Tāmaki Makaurau Auckland and New Zealand.

As the region’s cultural and economic development agency, we believe Auckland’s thriving screen sector – film, television, gaming, visual effects, immersive technologies, digital content and animation – is a solid foundation for us to build on.

In the year to March 2020, film and television GDP alone topped $1.14 billion for Auckland, employing more than 7500 people in about 1800 businesses – many in the screen heartland of Auckland’s west.

In recent years the region has welcomed large-scale international productions including Netflix Originals series Cowboy Bebop, Disney’s live action remake of Mulan, the BBC-TVNZ adaptation of Eleanor Catton’s 2013 Man Booker Prize winning novel The Luminaries, and the Amazon Prime Video young adult series, The Wilds.

Recent confirmation of a long-term partnership between the New Zealand Government and Amazon Studios around its big-budget television series based on The Lord of the Rings, is more great news for Auckland’s booming screen industry.

The production is injecting hundreds of millions into the economy and is already directly and indirectly employing more than a thousand Kiwis in skilled jobs – most of them from Auckland’s strong screen talent base – as well as keeping local businesses busy.

Major international productions, traditionally choosing Auckland as a screen destination for our skill and capability, range of facilities, and spectacular and diverse locations, are now looking here for a new reason – New Zealand’s successful management of COVID-19.

That’s not to say the sector wasn’t hit hard by the impact of the initial nationwide lockdown, but collaboration has ensured it bounced back.

Our Screen Auckland team worked with industry partners to develop ways of working safely in a COVID-19 world – including government-approved national guidelines and protocols that enable productions to continue at Alert Levels 2 and 3. This has brought a level of stability to the industry and even resulted in three television series scheduled for Australia moving to Auckland.

While our screen offering has remained strong throughout the pandemic, in Auckland we can do better as a region to embrace the huge benefits the industry brings.

We need to make it easier for productions to film here. Each year, Screen Auckland facilitates more than 600 film permits on behalf of Auckland Council for shoots in all open public spaces.

It’s an impressive number – one that’s on the rise due to our ‘COVID-free’ drawcard – but I worry when I hear international productions say it’s harder to get a location shoot across the line in Auckland than it is to block off a street in Manhattan.

We address these day-to-day challenges and welcome conversation with council, Auckland Transport, and the region’s local boards to improve this process. It was set with best intent and to support our communities, but we need to go further if we are to support an important job creating industry that will help our economic recovery. 

When we discuss the potential of our screen sector, the conversation needs to go beyond process and logistics. I believe we need to embrace a regional mindset shift.

We must collectively turn our minds to the opportunities the screen sector provides for the people, businesses, and communities of Tāmaki Makaurau, particularly those hit hardest by the pandemic.

Talent is required for our booming screen sector and it’s been good to see large productions taking on people who have lost jobs in hospitality, hotels, retail and tourism. 

But even before the pandemic created an increased global demand for content, Auckland’s screen sector faced a shortage of skilled workers.

We’re working on research with New Zealand Film Commission and Screen Wellington to better understand people’s perceptions of working in screen and determine what’s needed to get people into a screen career and tackle sector shortages.

Alongside this research we market Auckland as a screen destination to the world, operate three in-demand film studios, and are focused on developing the much-needed additional infrastructure required to keep international productions knocking on our door.

Recovery is a heavy load for the region to bear but the answer lies in part in our weightless economy and in that old saying, ‘many hands make light work’.

We need to tap into Auckland’s existing strength in screen to seize the opportunities it provides for our people and industry. We all need to champion screen in Auckland, together.

Pam Ford is GM Economic Development at Auckland Unlimited, the region’s economic and cultural development agency and home to regional film office, Screen Auckland.

CONTRIBUTOR

Pam Ford

GM Economic Development

Auckland Unlimited

Kea member


HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses growing at home, COVID-19 recovery Tagged With: Amazon, ATEED, Auckland Unlimited, Employment, Pam Ford, Screen

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