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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news