World Bank ranks NZ a great place to do business
Finance Minister Michael Cullen has welcomed further proof from the World Bank that New Zealand remains a top performing economy. In December the bank rated New Zealand as the easiest country out of 155 to do business in. Australia ranked sixth. The World Bank has now released a detailed breakdown of the 2005 survey results comparing New Zealand's performance against the OECD average. Amongst the findings, New Zealand ranked fourth in ease of starting a business, and fourth in ease of enforcing contracts through legal action. New Zealand ranks 16th in paying taxes - a medium size company must make eight payments and spend 70 hours a year paying taxes compared to the OECD average of 16 payments and 197 hours.

$16.7 million grants announced for significant community projects
Prime Minister Helen Clark has announced six government grants, worth up to a total of $16.7 million, under the Significant Community Based Projects Fund. Up to $5.5 million has been awarded to a project to reintroduce endangered species such as the kiwi and tuatara to Maungatautari Mountain. The Maungatautari Ecological Island Trust has been established to lead a community project to restore the mountain, near Cambridge, to as close as possible to its natural state. Auckland's ASB Showgrounds have received a grant of up to $4.7 million to assist with the modernisation and redevelopment of the facility so that it can attract world-class events to Auckland. Further grants have gone to a project to build an authentic Chinese Garden in Dunedin (up to $3.7 million), New Zealand's first indoor Velodrome in Invercargill (up to $1 million), and developing eco-tourism in the West Coast's Oparara Valley (up to $1.8 million). The fund was announced in Budget 2005 to address funding issues faced by a growing number of large and important community projects.

Change of policy for State Owned Enterprises
State Owned Enterprises and Economic Development Minister Trevor Mallard this week announced a change in policy which will encourage SOEs to get into new business areas to help build New Zealand's wealth. "This new policy means that State Owned Enterprises will be a part of our work to transform the New Zealand economy. SOEs will be encouraged to expand into new areas of business that are linked to what they already do," Trevor Mallard said in a speech to the Otago Chamber of Commerce in Dunedin. "To do so they will have to meet strict conditions, and their new business must have good spin-offs - for communities but also potentially for private firms. New Zealanders have agreed that we should keep state assets in public hands. But that does not mean that they should not be put to work for us." Cabinet has agreed to consider proposals from SOEs that broaden their scope of business by diversifying their technological, product and market portfolios and that expand the time frame in which they seek to capture a return on investments. It will be up to SOEs to come up with robust business plans that can preferably be funded off their own balance sheet and that meet the criteria, with proposals being considered on a case-by-case basis.

Probationary bill redundant
The flexibility of New Zealand's labour market has been confirmed by a World Bank report, Minister of Labour Ruth Dyson said this week. "As well as ranking New Zealand the number one place in the world to do business, a detailed breakdown of the World Bank survey awards New Zealand's economy an admirable 4th out of 155 countries for ease of employers starting or ending an employment relationship." In addition to this, New Zealand scores 7 in the World Bank's rigidity of employment index compared to an OECD average of 35.8 (a higher value representing more rigid employment regulations). This means New Zealand has one of the least rigid employment markets in the OECD. "These findings essentially render Dr Mapp and his probationary employment bill redundant, as every country he has compared New Zealand to has a more rigid employment environment, despite having the punitive probationary periods that he advocates in his bill." said Ruth Dyson. For the full World Bank report visit www.doingbusiness.org

NZ donates $500,000 to Indonesia quake relief
Prime Minister Helen Clark this week announced a $500,000 initial aid contribution from New Zealand to assist with relief efforts after the serious earthquake which struck Yogyakarta, Indonesia. "New Zealand's contribution will assist the wider international effort to provide essential care for the survivors. The contribution will be made through the International Federation of the Red Cross and Red Crescent, which is well-established in Indonesia and is already working on the ground in Yogyakarta. "The Red Cross' initial focus is on the health and well-being of survivors, but in coming weeks it will also re-establish essential services, such as sanitation and water, and rebuild homes." Helen Clark said.