Hon Pete Hodgson
Minister for Economic Development

28 November 2007 Media Statement
Improving investment for New Zealand’s businesses

The sources of capital available to Kiwi businesses wanting to expand, particularly long-term capital, was just one of the topics that went under the microscope yesterday at an investment forum attended by Minister for Economic Development, Hon Pete Hodgson.

“Through KiwiSaver, the Labour-led government has successfully diverted more local money into the pool for local investment capital than forecast, and we want to keep the conversation alive as to whether it’s enough,” said Pete Hodgson.

The investment forum – part of the ongoing consultation over improving our investment environment – was attended by Pete Hodgson, Associate Minister of Finance, Hon Trevor Mallard, Minister of Commerce, Hon Lianne Dalziel, government officials and about forty people from New Zealand’s business and investment community including Superannuation Fund CEO, Adrian Orr, Mark Tume of Ngai Tahu Holdings, and Fletcher’s CEO, Jonathan Ling.

“The 260,000 people who have joined KiwiSaver, the business tax package and the changes to the Portfolio Investment Entity regime will result in a deepening of our markets. The forum discussed how we need to position ourselves as a country so that our businesses can take advantage of these changes.”

A report entitled “Improving the Investment Environment for New Zealand Firms” was the central discussion paper and provided four broad areas of focus: savings and investment, capital markets, business growth and location decisions of businesses, and the regulatory environment.

How to keep New Zealand firms in New Zealand was the challenge facing the afternoon forum as well as reviewing the country’s regulatory regime.

Any policy resulting from the consultation process will be presented to ministers in the New Year.

The report “Improving the Investment Environment for New Zealand’s Firms” is available on the MED website and any comments can be sent to investment[at]med.govt.nz

ENDS

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