Kiwis lead the pack

By IRENE CHAPPLE AND AGENCIES

A World Bank survey showing New Zealand leading an international pack for "ease of doing business" yesterday gave Finance Minister Michael Cullen another stick to poke at business pessimism.

New Zealand topped a list of 145 countries for ease in terms of business regulation and property rights protection. That prompted Cullen to say: "This is international evidence that the Government is committed to a supportive business environment with a flexible and resilient economy."

Simon Carlaw, chief executive of Business New Zealand, agreed that the ranking was good but said the survey did not detail less attractive aspects which had an impact on investment into New Zealand.

"It doesn't show New Zealand is the highest non-European tax jurisdiction in the OECD ... [and] what are the barriers to investment from a competitive perspective."

Carlaw said the Government's support of the Kyoto protocol and legislation such as the Resource Management Act were detrimental to investment.

Cullen, who used his May Budget speech to smack business for being in "permanent Cassandra-like mode", said he was disappointed Carlaw "continues to be negative amidst all the signs of success in the New Zealand economy".

The survey looked at starting a business, hiring and firing, enforcing contracts, getting credit and closing a business.


New Zealand was followed in the list by the United States, Singapore, Hong Kong and Australia.

The survey found that wealthy countries undertook three times as many investment-climate reforms as poor countries last year.

"Poor countries that desperately need new enterprises and jobs risk falling even further behind rich ones," said Michael Klein, World Bank vice-president for private-sector development.


The survey said: "It takes two days to start a business in Australia, but 203 days in Haiti and 215 days in the Democratic Republic of Congo."