Most Read Contributor in New Zealand, September 2016
Where do you think the greatest potential to lift service
industry productivity lies – in a more open occupational
licensing regime, through more customer-driven competition, or
through greater technological innovation and uptake?
The Productivity Commission plans to explore two of these three
areas in detail and is asking in an
interim report released last week for guidance on which
Submissions close on 23 August 2013.
Focus of inquiry – what's in
The industries which the Productivity Commission has identified
for examination are:
transport, postal and warehousing
information media and telecommunications
finance and insurance
professional, scientific and technical
accommodation and food
rental, hiring and real estate
administrative and support
arts and recreation, and
other - personal care services, funeral services, professional
and labour association and other interested group services.
Education, health and social assistance services have been
excluded because of the high levels of public provision and the
difficulties of isolating the productivity statistics for the
market-provided segment from the sector as a whole. The Government
has confined the inquiry to "market-provided services" on
the basis that it already has a programme underway to lift public
The Commission is including those State-Owned Enterprises which
sell their output at "economically significant prices" to
generate a profit. A price is "economically significant"
if it is an important driver of how much producers are willing to
sell and how much consumers are willing to buy.
However, the electricity, gas, water and waste sectors are out
(despite a bid by Federated Farmers to have them included) because
the Commission does not deem them to be true service
Structure of the inquiry
The Commission has been asked to provide an overview of the
service sector and to develop recommendations to lift the
sector's productivity performance. These must focus on
impediments which can be overcome through government activity or
through changes to government policy.
It has nominated three topics for in-depth study and plans to
explore two of the three.
Is there an appropriate balance between the costs and benefits
that stem from the occupational licensing regime in the services
How can consumers be stimulated to drive greater competition in
New Zealand services markets and is there a role for the
government? Is there scope, say, to use the information required by
the new KiwiSaver periodic disclosure rules to develop a variant of
the 'What's my number' campaign for the KiwiSaver
Are there barriers to the successful application of information
and communications technologies (ICT) and how can these be
addressed? For example, are concerns about privacy and security
inhibiting the adoption of cloud computing?
The Commission wants feedback on which of these issues it should
pursue and on how the topic areas can be further refined and
Defining a service?
A number of definitions are available.
A service is something that can be bought and sold, but not
For Statistics New Zealand, it is "everything produced
outside the primary and good-producing sectors".
Or it involves intangible rather than tangible products and/or
a rental contract rather than transfer of ownership. So legal
advice is a service because it is intangible and hiring a car is a
service because you hire rather than buy the car.
The Commission will announce in late August (after it has
received the submissions to this report) which two topics it will
pursue further and will develop these in a second interim report to
be released in January next year.
It plans to produce its final report to Government by 28 April
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
As per a 2015 survey by Nasscom (the National Association of Software and Service Companies) India has paved the way to secure the third position in the world with three to four startups emerging every day, primarily in the areas of e-commerce, consumer services and aggregators.
The NSW Supreme Court held that the accountant was not liable for the investment losses suffered by its client.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).