New Zealand has a successful economy. International rankings regularly put us near the top for competitiveness, economic freedom and ease of doing business.
At the same time, New Zealand’s per capita incomes trail those of other developed countries. Our productivity growth is anaemic. Our ability to attract high-quality international investment is limited.
New Zealand cannot rest on the laurels of past reforms. We must continue to improve our economic policy settings.
The New Zealand Initiative’s research includes analysis of regulatory and fiscal policy. We explore how incentives can promote economic development, and we investigate the social effects of economic policy.
Our flagship publications include a series on New Zealand’s foreign direct investment regime (Open for Business, 2014), a proposal to establish a fiscal council (Guarding the Public Purse, 2014), a report assessing interest-free student loans (Decade of Debt, 2016), and a report assessing the efficiency of government spending (Fit for Purpose? 2018).
In making this submission, we have drawn on the research and recommendations in our report, Work in Progress: Why Fair Pay Agreements would be bad for labour (July 2019) (our Report). A copy of our Report is appended to this submission. Read more
Kiwis households are paying more than $3,000 extra on essentials than they were 12 months ago, and policies implemented by the Government and Reserve Bank are contributing to the problem. The rising cost of living for Kiwis, shows New Zealand has the second-highest inflation rate among our major trading partners, besides the USA, and this is plausibly the result of excessive government stimulus. Read more
We strongly oppose the proposed Social Unemployment Insurance. This submission explains why we believe that such an addition to the New Zealand welfare state is undesirable. Read more
The Initiative undertakes research that contributes to the development of sound public policies in New Zealand and the creation of a competitive, open and dynamic economy and a free, prosperous, fair and cohesive society. The Initiative’s members include two New Zealand supermarket operators, Woolworths New Zealand and Foodstuffs North Island. Read more
When presenting Budget 2021 in May, Finance Minister Grant Robertson announced that an unemployment insurance (UI) scheme was being developed for New Zealand. Prior to this, the Productivity Commission had considered UI as part of its inquiry into technological change and the future of work, as had the Ministry of Business Innovation and Employment (MBIE). Read more
New Zealand’s border settings continue to confound. In November last year, even the cautious Ministry of Health advised the Government that MIQ no longer served any useful purpose. Read more
One key to happiness is not letting your expectations run ahead of what is possible, as that only leads to disappointment. But what has been announced thus far makes for a depressing Budget Day. Read more
Those on the economic right sometimes wish for flat taxes. If inflation continues to run at 7 percent and the country’s tax thresholds do not change, we will eventually wind up with one. Read more
Last week, Inland Revenue Minister David Parker gave a speech titled “shining the light on unfairness in the tax system”. His speech defended an Inland Revenue investigation into the “tax paid by the wealthiest New Zealanders relative to their economic income”. Read more
Successful economies have low unemployment. However, these are no ordinary times, and New Zealand’s ultra-low unemployment rate of 3.2% should worry everyone. Read more