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

 


Competition, ICT key to unlocking services’ potential

Competition, ICT key to unlocking services’ potential


The Productivity Commission has released its draft recommendations on how to increase competition and the use of information and communications technology (ICT) in New Zealand’s service industries.

The 2nd interim report, now out for consultation, looks at ways to encourage consumers to put more competitive pressure on service suppliers, improve competition law, reduce barriers to international trade in services, raise the level of ICT skills in the workforce and increase the uptake of cloud computing.
“Sharpening competition and increasing the use of ICT could provide a much-needed boost to New Zealand’s services sector, from tourism to software design, and by extension the whole economy”, says Commission Chair Murray Sherwin.

“Services make up nearly three-quarters of New Zealand’s GDP and the price of services affects the cost of goods, including our exports. Service industries are critical to New Zealand’s international competitiveness, but they don’t perform as well as they do in Australia and the United Kingdom.

“Competition drives innovation and gives consumers more choice, better products and lower prices. Many businesses supply services to other firms, so giving consumers access to more information and improving competition law would make New Zealand firms more competitive on a world stage.

“The Commission recommends measures to increase consumer pressure on competition, more use of market studies to examine competition issues, reducing barriers to overseas firms operating in New Zealand and reforming New Zealand’s approach to determining a misuse of market power in section 36 of the Commerce Act.

“ICT is revolutionising the way that services operate. However, New Zealand has yet to experience the full productivity benefits of ICT, in part due to the lack of skilled ICT professionals and ICT-savvy managers, and the high initial cost of ICT services.

“Streamlining the process for filling ICT jobs from overseas and helping ICT graduates to adapt to the workplace would increase the number of employees and managers with ICT skills.

“Cloud computing has great potential to create a level playing field for New Zealand services firms by reducing the costs of setting up ICT services, but firms need encouragement to adopt cloud-based services.”

The Commission is seeking feedback on the questions, findings and recommendations contained in the report by 7 March. The final report will be provided to referring Ministers by 30 April.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news