But the lag in New Zealand’s productivity growth, compared to the rest of the OECD, remains. In fact, the only time New Zealand’s productivity reached the heights of the top half-dozen countries in the OECD was for a few years after 1991, following the implementation of the Employment Contracts Act. It worked recently in Australia, where an enhanced depreciation regime encouraged rapid investment in smaller businesses, resulting in a subsequent productivity boost. At the same time, our banking rules for business loans could be adjusted to provide more flexibility around risk weightings for businesses, particularly smaller businesses. It’s pleasing to see the education, immigration and social development ministers all working together to help resolve these long-standing problems.

Source: New Zealand Herald November 17, 2024 16:20 UTC