Special economic zones may be needed across NZ

ACT New Zealand
October 20, 2015. 12:20pm

A New Zealand Initiative report on special economic zones (SEZ) has been welcomed by ACT Leader David Seymour.

“Letting local authorities opt in or out of certain policy settings could provide a low-risk alternative to the one-size-fits-all regulatory approach," said Mr Seymour.

“Different parts of the country have different regulatory needs and desires. A classic example is RMA reform. With broad reforms stuck in a political stalemate, why not test the appetite for narrower, regionally adjusted policy?

“We could reduce land supply restrictions in Auckland, where the housing crisis is centred. We could loosen mining restrictions in the West Coast, where mining is a valued part of the region’s heritage. We could test more liberal investment rules in Northland, where fresh capital is desperately needed.

“A Government Bill set to pass in the near future may also lead to the need for SEZ. The $10 billion earthquake-prone buildings legislation requires the whole country to meet the same building standards.

“The $10 billion cost includes $3 billion applied to Auckland, even though the earthquake risk is negligible. The Government claims to have mitigated this cost but under SEZ legislation Auckland could simply opt out, without risk for the rest of the country.”

ENDS

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