Hide Rodney: New Zealand Productivity Commission Bill — Second Reading 
Hide Rodney: New Zealand Productivity Commission Bill — Second Reading 
[Volume:669;Page:15794] 
Hon RODNEY HIDE (Leader—ACT) 
: 
 I thank parties for their contribution to the New Zealand Productivity Commission Bill particularly Lianne Dalziel David Cunliffe and David Clendon. I also thank the Commerce Committee which has worked on this bill and improved it. 
It is certainly with great pleasure that I rise on behalf of ACT to support the New Zealand Productivity Commission Bill. This bill as Mr Clendon pointed out is a direct result of the confidence and supply agreement between ACT and National. When we sat down to negotiate the agreement we in the ACT Party had a clear vision: a vision for a more prosperous and more cohesive New Zealand. Crucial to that vision’s success was the need for an institution that could help shape excellent public policy for the benefit of the wider community. 
This bill establishes a Productivity Commission reflecting Australia’s experiences as its Productivity Commission has made a substantial contribution to its national well-being. Paul Kelly the editor-at-large of the  
Australian  
newspaper gave an excellent description of the Australian Productivity Commission: “Its strength lies in its ideas its analysis and its advancement of the public interest. It needs to be independent but not remote rigorous but not ideological constructive but not accommodating. The Commission exists ultimately to serve the interests of the Australian people and that defines its value for any intelligent national government … This has made Australia not just a more prosperous country but a country with an ongoing commitment to shared prosperity.” We thought that a Productivity Commission could make this contribution in New Zealand and I am pleased that the Commerce Committee has also seen the opportunities that this bill presents and has recommended that it be passed. 
Again I briefly acknowledge the work of the Commerce Committee and the committee’s chair Lianne Dalziel on this bill. The proposed amendments make sense and add value to the bill. We have always been of the view that the commission should have a wide remit and take a broad view of productivity so we in the ACT Party are quite comfortable with the committee’s proposed changes to clause 7 and clause 9(1)(a). We also always envisaged that Ministers and the commission would consult on terms of reference so that any issues can be worked out before an inquiry begins. Having this requirement in law as proposed by the committee in its changes to clause 12 helpfully clarifies this expectation while protecting the commission’s operational independence. 
Finally I am glad to see that the Commerce Committee has taken the advice of the Australian Productivity Commission chairman Gary Banks and has amended clause 13 to encourage the New Zealand Productivity Commission to publish draft reports and consult widely in the course of its work. I know from my own discussions with Mr Banks that he sees this open consultative approach as lying at the heart of the Australian Productivity Commission’s success and the high levels of public support and respect that the organisation enjoys. We would do well to learn from his experience when setting up our commission. Closing the income gap with Australia and taking our rightful place at the top of the OECD will require action across a wide range of fronts. Having good policy and strong institutions is only one part of this campaign but it is an important one. A Productivity Commission will help ensure that New Zealand is able to look properly and deeply at the issues that face it involve the community in the debate and formulate solutions that serve the national interest. I look forward to seeing this bill passed and the Productivity Commission beginning its work next year. Thank you.