Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

SOE policy alarming - Business NZ


SOE policy alarming - Business NZ

Allowing state-owned enterprises to get involved in wider commercial activities is a mistake, says Business NZ.

Commenting on the SOE Minister’s advice to SOEs to expand their commercial undertakings, Business NZ Chief Executive Phil O’Reilly says nothing good will come from letting state-owned enterprises muscle in on the marketplace.

“It will squeeze out investment and lead to economic stagnation, not transformation,” Mr O’Reilly said.

“Central and local government are already competing against New Zealand companies in several areas, with harmful results.

“For example the Labour Department is directly competing against commercial firms in the provision of business advice. ACC, a state owned monopoly, is operating in an area that should be open to commercial insurance providers. Local bodies are using rates revenue to set up businesses in opposition to existing local companies. This kind of activity puts New Zealand taxpayers’ money at risk. It results in harm to Kiwi-owned businesses.

“For New Zealand’s future growth we need to focus on export opportunities. State-owned enterprises are by their nature domestically focused - this policy will do nothing for our export prospects.

“This directive to state owned enterprises is alarming, and New Zealand businesses urge the Minister of State Owned Enterprises to rethink the policy.”


Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>