Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Research Debunks NZ Firm Size Myths

Latest Research Debunks NZ Firm Size Myths

New research shows that New Zealand does not have a high proportion of small firms compared with Australia and other OECD countries - despite claims to the contrary by business lobby groups, Council of Trade Unions economist Peter Conway said today.

The research was released at the recent conference of the NZ Association of Economists by Duncan Mills from Treasury, and Jason Timmins from the economic research agency, Motu.

“This research shows that lobby groups have been using misleading statistics to exaggerate the importance of the small business sector to try to influence Government policy on employment law and other issues,” Peter Conway said.

The research shows that: 96.1 per cent of NZ firms employ fewer than 20 workers but 59.3 per cent employ no workers at all the 96.1 per cent of firms employing fewer than 20 workers account for only 30 per cent of the overall labour force 96.5 per cent of Australian firms employ fewer than 20 workers NZ does not have proportionately more small firms than other OECD countries on average

The researchers conclude that “policy interventions and/or policy issues that are based on a rationale that New Zealand has an unusually large proportion of small firms are probably not well founded” and that the data “does not support the view that compliance costs are of more concern in New Zealand than other OECD countries due to the high proportion of small firms”.

Peter Conway said that small firms are vital to the economy but policy should not be based on a mistaken belief that New Zealand is somehow different in our average firm size from other comparable economies.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news