Information Technology Minister Paul Swain has taken issue with a report ranking New Zealand at 20th in the world in
terms of e-readiness.
The report was released by the Economic Intelligency Unit (EIU) - an arm of the The Economist magazine. The e-readiness
report ranked New Zealand at twentieth out of sixty countries surveyed. The USA and Australia were first and second.
"I have written to the E-Business Forum editor asking for clarification of the methodology used in the study," he said
"and a more detailed explanation of how the rankings were derived.
"In a similar report published last year using slightly different criteria,
NZ was initially ranked a lowly 35th. A review resulting from a question from New Zealand about the criteria used caused
NZ to be raised to 17th place.
"The only significant area outlined in the report where New Zealand and Australia differ appears to be in respect of the
legal and regulatory environment.
"According to our information, the New Zealand business environment is closely similar to Australia's. We have a less
regulated telecommunications structure and there is a similar level of busines and general internet usage in the two
countries. If anything New Zealand use is slightly higher than Australia. The Electronic Transactions Bill, that Bill
will come into effect later this year.
"I look forward to hearing the EIU's response," Paul Swain said.
Letter attached.
Ms Louisa Vinton
The Editor, E-Business Forum
The Economist Building
111 West 57th Street
NY, NY 10019
UNITED STATES
Dear Ms Vinton
The publication of the latest E-Business Rankings by your organisation have been drawn to my attention. These
international comparative rankings are not to be taken lightly especially when they are published by an organisation of
the stature of The
Economist Intelligence Unit. Therefore the apparent relatively low positioning of New Zealand in the rankings is of some
concern to the New Zealand Government.
It is not apparent to me how the rankings are derived. Of particular interest is how a separation of 1.29 points arises
between New Zealand and Australia. The report comments that, of all the indices taken into account, the only one where
New Zealand is significantly different from Australia is in respect of the legal and regulatory environment. I can only
assume that this is due to the present lack of specific supporting legislation, which will be addressed when our
Electronic Transactions Bill comes into effect later this year.
While this Bill will provide certainty that e-transactions are supported by law, there is no evidence that the absence
of such legislation is inhibiting the take up of e-commerce in New Zealand in terms of contractually based dealings.
Such dealings are governed by common law, and the New Zealand Courts have been forward thinking in the way they have
dealt with civil disputes that have involved the use of electronic technology. Moreover, key laws addressing privacy and
consumer protection are technology neutral and of wide application. Notwithstanding this, I expect that the Bill will be
a boost to the take up of e-commerce, particularly in dealings with government agencies, and in cross-border trade.
According to our information, the New Zealand business environment is closely similar to that of Australia. New Zealand
has a less regulated telecommunications structure (and lower overall telecommunications access fees) and there is a very
similar level of business and general Internet usage in the two countries (in fact we think this is generally higher in
New Zealand than Australia).
I would be very interested in any comment you could make on this issue, particularly the methodology used in the study,
and a more detailed explanation of how the rankings were derived. Officials in the Ministry of Economic Development
would be able to assist you with any enquiries you may have about the New Zealand e-business environment. I suggest that
you could approach Frank March of the IT Policy Group (email: frank.march@med.govt.nz) if you have any specific
information needs.
Yours sincerely
Hon Paul Swain
Minister for Information Technology
Minister of Commerce