Ministry of Agriculture and Forestry director-general Murray Sherwin has been appointed chairman of the soon-to-be-established New Zealand Productivity Commission (NZPC).The commission will provide advice and undertake research to promote economic growth
Ministry of Agriculture and Forestry director-general Murray Sherwin has been appointed chairman of the soon-to-be-established New Zealand Productivity Commission (NZPC).
The commission will provide advice and undertake research to promote economic growth and will have a budget of $5 million, largely reallocated funding from other government departments, ministries and agencies.
It will be modelled closely on the Australian Productivity Commission, which has run for more than 10 years - albeit on a much smaller scale, with 20 staff on a $5m budget compared to almost 200 staff and an $A35m budget across the Tasman.
The commission will be a statutorily independent Crown entity, although its functions include inquiring into productivity matters referred to it by ministers.
Mr Sherwin is also chairman of the Canterbury Earthquake Recovery Commission.
It is expected that the NZPC will be up and running by April.
What does industry think?
Hearings on the New Zealand proposal have now closed and the Commerce Commission is due to report back to government later this month.
Written submissions from Business NZ and major energy and infrastructure players all supported the establishment of the NZPC, particularly its emphasis on regulatory review.
Business NZ's suggestions included a formal private sector review of the NZPC after five years in operation.
Telecom and Meridian submitted that the NZPC be given ‘more teeth’, through the ability to make recommendations (rather than just provide advice) and a formal period for government responses to NZPC reports.
Infratil emphasised the importance of credibility and independence for the NZPC.
“The goal must be to attract excellent people who are well directed, provide implementable advice and are not seen as partisan,” Infratil said in its submission.
“A lap-dog productivity commission could be worse than none at all.”
The Council of Trade Unions supported the NZPC as a concept but expressed concern that its currently proposed mandate will lead to an overly heavy emphasis on deregulation.
National agreed to explore the potential for such a commission as part of its November 2008 confidence and supply agreement with coalition partner Act.
Earlier this month, Act leader and Regulatory Reform Minister Rodney Hide met Australian Productivity Commission chair Gary Banks and Victorian Competition and Efficiency Commission Dr Matthew Butlin to discuss the NZPC.
