Poor productivity stats show need for Productivity Commission

The poor productivity statistics reported today underscore the need for a productivity commission and ‘regulatory responsibility’ legislation, says Business NZ.

Chief Executive Phil O’Reilly says improving our rate of productivity growth requires changes in many aspects of New Zealand’s regulatory landscape.

“Things like more flexible employment law, lower taxes and a smaller compliance burden all contribute to productivity growth.

“Resistance to change in such areas slows down needed reform and means New Zealanders’ standard of living is less than it could be.

“An independent body that can advise on best practice in relevant regulatory areas - like Australia’s Productivity Commission – can help make the transition to smarter legislation.

“And regulatory responsibility legislation has the potential to help lawmakers create better law.

“Improved productivity growth doesn’t happen overnight. But guidance by a New Zealand productivity commission and a regulatory responsibility act would help us get the right policies in place to start catching up in the productivity stakes.”