OECD BRANDS NEW ZEALAND AS "RED TAPE COUNTRY"

WELLINGTON, July 11 (Bernama-Xinhua) -- New Zealand is a country full of regulatory barriers, said a survey released by the Organisation for Economic Cooperation and Development (OECD) on Thursday,  reported Xinhua.

New Zealand Minister for Regulation, David Seymour, stressed the need for New Zealand's regulatory reform, saying that some areas are found to be particularly overregulated, including barriers to foreign direct investment, acquiring licences and permits, and administrative and regulatory burden.

"It is too difficult to invest, and Kiwis have their productivity sapped because of the time spent complying with edicts from Wellington," Seymour noted.

He also said that the result from the five-yearly OECD Product Market Regulation Indicators should put an end to any doubt that the government must go to war on red tape and regulation.

The quality of regulation in New Zealand has fallen, from being ranked second in 1998 to 20th in this year's survey, he stated, adding that it is no coincidence that New Zealand experienced strong productivity growth in the 1990s but has fallen behind since.

The Ministry for Regulation aims to cut existing red tape through sector reviews, improve scrutiny of new laws, and strengthen the capability of the regulatory workforce.

"The culture of lawmaking needs real change, so Kiwis spend less time complying, and more time doing. The end result is higher wages and lower living costs," the minister said.

The OECD survey, comprising about 1,000 questions, assesses the degree to which policies and regulations promote or inhibit competition in product markets.  

-- BERNAMA-XINHUA