Competitiveness figures disappointing

Media release
11 May 2006

Competitiveness figures disappointing

The latest competitiveness survey shows New Zealand dropping six places since last year - a result that should be a concern for all New Zealanders, says Business NZ Chief Executive Phil O’Reilly.

The IMD World Competitiveness Yearbook, operated in New Zealand in conjunction with the New Zealand Institute of Management, now ranks New Zealand in 22nd place on the list of 61 surveyed countries, while Australia has lifted its ranking from 9th to 6th place.

Mr O’Reilly said the results showed New Zealand doing well in some areas, including action to improve skills, but falling behind in other important areas.

“If we want economic transformation, these finding are instructive.

“In the ‘economic performance’ category, the drop in international trade and direct international investment has pushed us down from 15th place last year to 30th place in 2006.

“There are also problems in the ‘infrastructure’ category. Good parts include our public spending on education, relatively low broadband costs, and pollution control. But for environmental laws and compliance, we score 61st out of 61. This is a loud wake-up call for the Resource Management Act.

“This year’s competitiveness survey provides many pointers for improvement in policy settings for New Zealand business,” he said.

ENDS

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