Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers Questions to Members 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:620;Page:15528] 
2.  
CLAYTON COSGROVE (Labour—Waimakariri) 
 to the  
Minister of Finance 
: What reports has he received on the ease of doing business in New Zealand? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Today I have received a copy of a report  
Doing Business in 2005 
 co-sponsored by the World Bank and the International Finance Corporation. That report ranks New Zealand first in terms of ease of doing business ahead of the United States Singapore Hong Kong and Australia. The report ranks 145 countries and finds New Zealand the easiest place in the world to do business. 
Clayton Cosgrove 
: What criteria did the World Bank apply to reach its conclusion about the New Zealand business climate? 
Hon Dr MICHAEL CULLEN 
: The report looks at a number of factors such as the cost and time taken to start up a business labour-market flexibility investment and property protection the ease of registering of property the enforcement of contracts and the ease of closing business. In all of those New Zealand is well ahead of the OECD average. That is testament to this Government’s commitment to business. I tell the Opposition and its grizzling supporters that we have one of the best business environments here in New Zealand. 
John Key 
: The Minister has named just six categories and of course there was a seventh which is the hiring and firing of workers—I am sure that slipped his mind—and therefore does he think that the proposed changes to the Employment Relations Act will have a significant impact on the hiring and firing of workers and on future World Bank reports and if they do—[ 
Interruption 
] 
Mr SPEAKER 
: That is the one specific warning to a member. I had one on this side and one on that side. Mr Maharey that is it. Please start the question again. 
John Key 
: Does the Minister accept that he mentioned only six of the seven categories that the World Bank mentioned in the report—he failed to mention the issue of hiring and firing workers—and does he accept that that category will be significantly affected by proposed changes under the Employment Relations Act; if and when it does have a significant impact on future world reports will the Minister take personal responsibility? 
Mr SPEAKER 
: There were three questions there. Two may be answered. 
Hon Dr MICHAEL CULLEN 
: No I did in fact mention labour market flexibility which is what hiring and firing workers is in part about—although it is a good deal more than that. The member should remind himself that when he was overseas in 2000 his ideological soulmates projected that the Employment Relations Act would lead to not a single new job being created. Since then 211000 new jobs have been created. 
Peter Brown 
: Did the International Finance Corporation comment on the effect of the Minister’s early announcement of interest rate rises or on New Zealand’s continuing leadership of the world in high interest rates? 
Hon Dr MICHAEL CULLEN 
: Though the World Bank and the International Finance Corporation keep up to date I am sure that their report was prepared some time before question time yesterday afternoon. 
Paul Adams 
: Does the Minister acknowledge that the fact that nearly three-quarters of small businesses do not survive beyond the 7-year mark shows that there is less of an ease of doing business and more of a “dis-ease” of doing business in New Zealand; and what does the Government intend to do in regard to curing that problem? 
Hon Dr MICHAEL CULLEN 
: No. In fact if the member reads the report he will find that the ease of exiting from a business is one of the criteria for the ease of doing business. Being locked into businesses that are actually going to exit easily and cheaply is an important aspect of doing business. In the United States it is rather more clearly recognised than in New Zealand. 
Peter Brown 
: Has the Minister received any reports on the lack of adequate roading and transport infrastructure including any New Zealand - owned and operated coastal shipping services that reflect on the ease of doing business in New Zealand for importers exporters manufacturers or service industries; if so what do those reports say? 
Hon Dr MICHAEL CULLEN 
: There have been a number of reports. Clearly in particular in Auckland there are difficulties with congestion. Members should remember that this is a comparative study—Auckland might look bad but try some other parts of the world!