Capital markets recommendations positive

Implementing a major part of the Capital Market Development Taskforce’s final recommendations would be positive for the economy, according to Business NZ.

“New Zealanders need greater access to capital markets, better financial understanding, and more confidence in a wider range of markets beyond the housing market for investment purposes.

“They would also benefit from the partial listing of government and local government-owned businesses to broaden the range of investment opportunities available,” Business NZ Chief Executive Phil O’Reilly said.

He said recommendations around these and other issues deserved further investigation.

“The recommendations around innovation should also be addressed, including those promising greater commercialisation of research.

“The Taskforce’s recommendations integrate well with current thinking on tax reform.

“The actual cost of capital is a fundamental issue and it is pleasing to see the Taskforce stressing the importance of the government’s responsibility for sound fiscal management and protection of property rights in maintaining New Zealand’s reputation as a credible investment destination by investors.”