Taskforce welcomes constructive response to report

1 December 2008

Taskforce welcomes constructive response to its report

The Capital Market Development Taskforce welcomed the positive response that its taskforce members have received to the Interim Report released last week in response to the financial crisis. That Interim Report provided Government with a package of proposed measures that will make it easier and less costly for firms to raise capital.

Taskforce chair, Rob Cameron says a wide range of people have been in touch applauding the initiatives.

"While there is broad support for our recommendations the discussions indicate that there is no shortage of other good ideas for Government to consider. I am looking forward to discussing these with Ministers and to building new ideas into the ongoing work of the taskforce."

Rob Cameron also noted that there had been some discussion on a comment he had made about integration of New Zealand's capital markets with those in Australia.

"I want to make clear that I was referring to the ability of investors and firms on both sides of the Tasman to easily access capital markets in either country, without undue hassle or transactions costs. That certainly need not mean merged or a single trans-Tasman institution. While that might happen in some cases, it is certainly not necessary to deliver integrated markets. In many cases it will be a commercial decision for the parties involved, and so is not something that the taskforce would propose or comment on."

“We believe that our recommendations in the Interim Report are a valuable addition to the work that the Government will be considering to help New Zealand through the financial crisis.”

The taskforce was established to develop and launch a blue print to improve New Zealand’s financial system for the benefit of the New Zealand economy and its businesses. It is due to report its findings in September 2009.

The Interim Report is available at: http://www.med.govt.nz/templates/MultipageDocumentTOC____39575.aspx

ENDS

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