Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Anderton reminds CCMAU directors of important role

Anderton reminds CCMAU directors of important role

At a breakfast function in Christchurch this morning Jim Anderton outlined the government's change of policy towards State Owned Enterprises and reminded the Crown company directors of the importance of their roles. The key change in the government’s policy is that SOEs are being asked to consider expanding the scope of their businesses by looking at allied products, markets and technologies.

This change is driven by the government’s emphasis on transforming the New Zealand economy. "We want a high-value, high-skill knowledge-based economy," the Minister said.

"It will succeed by focusing on niches in the global value chain, where we are responsive to consumer demand and where we harness the unique skills, strength and creativity of New Zealanders."

Mr Anderton said that New Zealand hadn't grown enough successful international skill-based businesses. "It’s more common to see our businesses reach a certain size and then sell out. That’s not surprising; it’s hard to grow a large business in New Zealand. A $100 million company in Los Angeles doesn’t need to leave the state, and possibly even the city. A $100 million business in New Zealand is much more likely to have to master the complexities of exporting and sophisticated management." He said that many SOEs have substantial management talent and businesses with enough scale to enter international markets.

However the Minister cautioned that the new policy is not a general licence to start new business in any sector. "The government still expects publicly-owned businesses to focus on their strengths and capabilities. The greatest risk is that boards and management might lose focus on their core activity. So proposals for entering new business areas will be assessed case by case. Generally, the government will want to see funding from the business’ own balance sheet. In many ways, the policy is not revolutionary; it formalises decisions we have begun to take anyway." Mr Anderton cited Kiwibank as an example of the kind of expansion he hopes to see from Crown owned companies. "It fitted with NZ Post’s mission statement: People connecting people in communities and commerce. It is a roaring success. It’s been signing up new customers at the rate of 2500 a week, every week for the last four years. It is making an operating profit already – most unusual for a new bank!"

He went on to urge the CCMAU directors to be innovative in their approach. "If we don’t take initiatives to increase the scale and productivity of Crown owned companies, they risk withering. They have to be given the chance to grow."

The Minister referred to past debates about the role of publicly-owned businesses. "These days the government is committed to realising the advantages that public ownership of enterprises can bring. It will generally look for spill-over benefits from new business activities that contribute to the wider economy in a positive way," said Jim Anderton today in Christchurch.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news