By: Larry Williams | Tuesday, October 30, 2012

Small and medium-sized cleaning businesses are to be given more flexibility when it comes to staff.

Labour Minister Kate Wilkinson has announced changes to Part 6A of the Employment Relations Act, which until now ensured employees' entitlements and information was the same when a new owner took over a business.

A review of that has found while larger businesses can cope with that, smaller companies struggle.

The changes mean businesses with fewer than 20 employees will be exempt.

This has gone down like a cup of cold sick with the unions and Labour.

They claim the changes will reduce wages and conditions and that it will be easier for employers to walk away from negotiations.

I don't know but what I do know is that small and medium business is a lifeblood of this economy and if they are getting strangled by the law and the unions then I'm on the side of the employer.

PRESIDENTIAL RACE

As Hurricane Sandy thrashes the east coast of the US, the election campaigning is put on hold.

The latest polls are indicating that Obama will secure a second term. Indeed, in the last days, Hurricane Sandy might do the President some favours. If he looks Presidential, and he will, then it certainly won't help Romney.

It will all though come down to just a few key states. It always does. It’s the Electoral College votes that count not always the popular vote.

It could be tight but Obama has the inside running right now.

HOUSE AFFORDABILITY

The Governments response to the housing affordability issue has been totally rejected by opponents.

It’s all quite cute how they opponents have all the answers and yet this problem has been with us for decades.

Truth is it’s complex. It’s not easy to beat. My gut feeling is that this Government won't beat it either.

The Government is looking at freeing up land and fast tracking the RMA but essentially they have batted this off by calling for more work to be done. You do wonder what impact any of this will have.

I still think that the future looks more like medium to high density properties. Like terraced houses and apartments.

The worry there though is that history already shows in Auckland that many apartment blocks are either slums now or will become slums. The buildings are a disgrace. Cheap and nasty. It’s hard to have any confidence in that side of the industry.

Some argue that a capital gains tax will fix it. It won't. Not in the form Labour has proposed. Just go and look what Treasury have to say about a CGT that excludes the prime residence. Oh, I'm sure a CGT will be introduced at some point, but they are not the silver bullet on housing affordability that some claim. They are though a very good revenue earner and that's what it is really about. Nothing more.

By the way. Investors who trade in houses as I understand it are taxed now.

Photo: NZ Herald