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

 


Capital markets report identifies challenge to growth

February 27, 2013

Capital markets report identifies challenge to growth

For New Zealand exports to rise to 40 per cent of GDP, $200 billion in capital is needed by 2020, much more than is currently invested in our export economy.

That's the scale of the challenge presented by the Building Capital Markets report issued today, said Kim Campbell, chief executive of the Employers and Manufacturers Association.

"It means we need to complete the work identified in the five earlier reports of the Government's Growth Agenda's if adequate capital is to migrate here," Mr Campbell said.

"The success of the Growth Agenda overall depends on it.

"But if this Capital Market agenda did nothing else more than reducing the premium on interest rates we all pay to the levels of our trade competitors it would be a great result.

"At present New Zealand's perceived risk profile internationally means we effectively end up paying one per cent more in interest than our trade competitors - a huge sum.

"What we need now is clear unambiguous policy settings and tighter time frames to attract the foreign investment we all know we need.

"The Capital Markets report identifies the Crown's own balance sheet, the domestic housing market, and private savings rates as important work streams - all laudable.

"Further examination is needed on how ACC and KiwiSaver investments could be leveraged, along with the SOEs and other state uses of capital in order to achieve the best productive use from government controlled funds.

"Our businesses must become less risk averse, more willing to innovate, and to accept capital from wherever it may come from, in exchange for growth."

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news