New Zealand Productivity Commission Bill First Reading

Mr Speaker, I rise on behalf of the ACT Party to support the New Zealand Productivity Commission Bill.

Mr Speaker, the introduction of this Bill is a matter of considerable pride for the ACT Party.  We have long believed that, if New Zealand is to close the income gap with Australia and other high-income OECD countries and achieve the living standards we all aspire to, we need to have policies and institutions of the highest quality.  Developing these policies and institutions requires robust and rigorous analysis, and the involvement of the wider community.

A focus on productivity is at the heart of the ACT Party’s confidence and supply agreement with the National Party. The 2025 Taskforce was asked to advise the Government on how New Zealand could close the gap with Australia and to measure the progress towards achieving that objective.  

To really get to grips with those issues we need a detailed examination of the structure and performance of various sectors of our economy and the institutions within they which they operate.

That is why we made exploration of the concept of a New Zealand Productivity Commission a key objective in our Confidence and Supply Agreement with the National Party.  We saw the great work the Australian Productivity Commission had completed across the Tasman, and we saw a clear gap in New Zealand’s public sector.

Mr Speaker, the Australian Productivity Commission has played a valuable role in tackling complex and challenging social, economic and environmental issues facing Australians.  It has been used across the Tasman to evaluate the costs and benefits of existing policies, and look at alternatives.  Most importantly, it has considered matters dispassionately and openly, in consultation with the public and stakeholders, and at arms’ length from the government.  The results speak for themselves. The Australian Productivity Commission has consistently strived to make better policies that serve the long-term interests of the community.

The New Zealand Productivity Commission Bill will produce similar outcomes here.  As the Minister of Finance has indicated, the intention is for a New Zealand Commission to have the scope to explore a very wide range of issues, across both the public and private sectors.  The aim is also that the Commission will work independently and transparently, consulting with public and private bodies as it sees fit. It will be able to draw conclusions and make recommendations free from political interference.  Most importantly, the Commission’s clear focus will be the “overall well-being of New Zealanders.”

Mr Speaker, I am sure other members in the House will agree that there is no shortage of issues and challenges facing New Zealand families and businesses. This House will always be the pre-eminent body for deciding how we as a community respond to these challenges, and the establishment of the Productivity Commission will give this House an additional stream of advice. It will also allow governments of the day to have important matters concerning the future direction of this country considered in a non-political and non-partisan venue by experts.  

In working towards a New Zealand Productivity Commission I have had the pleasure of meeting the Chair of the Australian Productivity Commission, Mr Gary Banks, who offered some key insights. To be useful, the Commission should focus on those issues of public policy that Ministers believe would be of most assistance to the Government of the day. The second insight was that the commission should start out modestly and build credibility through the quality of its work over time.

These insights are reflected in this Bill in two ways.  

Firstly, the terms of reference for the Commission’s work will be determined by the relevant Ministers.  

Second, the legal framework setting up the Commission is deliberately minimalist; it will not interfere with the advice offered by the Commission in its reports.  A simple legal framework maximises the chance that this House will focus on the quality of the reports and not the structure of the Commission itself. 

This should avoid the need to periodically update or change the legislation establishing the Commission. That is why we have taken the approach of distilling the essence of the Australian legislation as best we can, without all the Australian specific detail. 

Mr Speaker, it has been a pleasure to work with the Minister of Finance and my other Cabinet colleagues on developing the proposals for a New Zealand Productivity Commission, and I would like to acknowledge their hard work and commitment here today.  I am particularly proud that together we have managed to find the resources for a New Zealand Commission from within a number of current baselines, thereby avoiding the need to place additional burdens on the taxpayer.

Finally, I would also like to acknowledge the contributions that other political parties have made to the Bill.  We in the ACT Party hope that this Bill will enjoy support across the House, and we look forward to working with Parliamentary colleagues in making the concept of a New Zealand Productivity Commission a reality.