Episode OverviewNew Zealand has around 530,000 SMEs — they employ 29% of the workforce and contribute over a quarter of GDP. Yet small business owners have long carried a regulatory and employment-law burden built, as the episode puts it, by people who've never signed a payroll or lost sleep over an employment dispute. In this episode, David and Rob sit down with Laura McClure MP — a former small business owner herself, having helped grow her family's fire safety consultancy into a national operation — for a deep, practical conversation on cutting red tape, reforming employment law, and what will actually move the needle on New Zealand's productivity ahead of the 2026 election.
- From business owner to Parliament: Laura helped scale her family's fire safety consultancy from the South Island into Auckland, and later found herself ironically being paid to help other businesses navigate the very red tape ACT now wants to cut.
- "Orange fatigue": Laura's term for regulatory overload — when constant compliance signals (like endless high-vis and road cones) stop registering as real warnings, making everyone less safe, not more.
- All that glitters is not gold: The 2015 health and safety reforms are Laura's go-to example of good intent gone wrong — a regulator was created without clear rules on how to actually comply, spawning a costly compliance "cottage industry."
- The regulation tip-off line: Run by the Ministry of Regulation, it's already fixed absurd rules — like hairdressers unknowingly breaking the law by offering a client a glass of wine or even a cup of tea.
- The "Golden Handshake" Bill: Laura's member's bill would let employers and employees have honest, protected conversations about ending employment by mutual agreement — modelled on similar law in the UK, Canada, and Australia — without it automatically triggering a personal grievance.
- Personal grievance risk and hiring: Laura argues the cost and risk of getting a hire wrong is a major reason small business owners hesitate to take people on at all.
- Leadership over technology: Laura agrees the biggest productivity lever is leadership and culture inside the business — government's job is to get out of the way, not to be the driver of productivity itself.
- Access to capital: Banks remain risk-averse to lending against a business case versus property, and NZ continues to struggle attracting foreign direct investment — partly, Laura argues, due to Resource Management Act uncertainty.
- Procurement pain for SMEs: A vivid example — a small-town painter missed out on a swimming pool repaint tender because the process was too complex, and a big contractor won it at four times the price, then subcontracted the same painter to do the job.
- Quickfire round: book recommendation — Habits of High Performers by James Loughlin.
Key Quote"The best thing government can do for a small business owner is to get out of the way — and then actively remove the obstacles it has already placed in the path."
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