Hide Rodney: New Zealand Productivity Commission Bill — First Reading 
Hide Rodney: New Zealand Productivity Commission Bill — First Reading 
[Volume:665;Page:12640] 
Hon RODNEY HIDE (Leader—ACT) 
: 
 I rise on behalf of the ACT Party to support the New Zealand Productivity Commission Bill. 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 is to achieve the living standards that we all aspire to we need to have policies and institutions within New Zealand that are of the highest quality. Developing these policies and institutions requires robust and rigorous analysis and also 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 Government. The 2025 Taskforce was asked to advise the Government on how New Zealand could work to close the gap with Australia and also to measure progress towards achieving that objective. But to really get to grips with these issues we need a detailed examination of the structure and performance of the various sectors of our economy and the institutions within which they operate. That is why we made the exploration of the concept of a New Zealand Productivity Commission a key objective in our confidence and supply agreement with the National Government. We saw the great work that the Australian Productivity Commission had completed across the Tasman and we saw a clear gap in New Zealand’s public sector. 
The Australian Productivity Commission has played a valuable role in tackling the complex and challenging social economic and environmental issues facing Australia. It has been used across the Tasman to evaluate the costs and benefits of existing policies and look at alternatives. Most important it has considered matters dispassionately and openly in consultation with the public and the various stakeholders—and this is important—at arm’s length from the Government. The results speak for themselves. The Australian Productivity Commission has consistently striven 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 said 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 important the commission’s clear focus will be “the overall well-being of New Zealanders.” 
I am sure other members of the House will agree that no shortage of issues and challenges face New Zealand families and New Zealand businesses. This House will always be the pre-eminent body for deciding how we as a community respond to these challenges. 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. 
Working towards the New Zealand Productivity Commission I have had the pleasure of meeting the chair of the Australian Productivity Commission Mr Gary Banks who offered us some key insights. First to be useful the commission should focus on the issues of public policy that Ministers believe will be of most assistance to the Government of the day. The second insight was that the commission should start out modestly and build credibility over time through the quality of its work. 
These insights are reflected in this bill in two ways. First 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 of the specific Australian detail. 
I record what a pleasure it has been to work with the Minister of Finance and my other Cabinet colleagues on developing these proposals for a New Zealand Productivity Commission. I acknowledge their hard work and commitment here today. I have appreciated especially the support from the Minister of Finance who has helped and supported me in this work right from day one. I am particularly proud that together we have managed to find the resources for a New Zealand Productivity Commission from within a number of current baselines thereby avoiding the need to place additional burdens on the taxpayer. 
I also acknowledge the contributions that the other political parties have made to the bill in particular the sterling work of Lianne Dalziel when she was a Minister and also David Cunliffe with whom we have had discussions. I can certainly say from the perspective of the Government that we are very interested in getting cross-party support for the Productivity Commission at the select committee. It is great that a Labour member will chair the Commerce Committee which will look at this bill particularly a member with the experience of Lianne Dalziel. I say though that it is important that everyone not just Government members approaches the issues around the Productivity Commission with an open mind. I hope that Labour members of the select committee will listen genuinely and openly to the submissions that are made so that we on behalf of the country can get the very best result for New Zealand. Thank you.