The trans-Tasman productivity report

December 13th, 2012 at 10:00 am by David Farrar

The recommendations from the joint report by the Australian and NZ productivity commissions are here. Some of the more significant ones are:

  • Mutual recognition of imputation credits (MRIC) would be expected to result in a more integrated capital market and improve trans-Tasman economic efficiency.
  • The prerequisite conditions for a trans-Tasman monetary union do not exist.
  • The Australian and New Zealand Governments should proceed with the implementation of a single application and examination process for patents.
  • The Australian and New Zealand Governments should waive CER Rules of Origin for all items for which ’s and New Zealand’s Most Favoured Nation tariffs are at 5 percent or less and  consider reducing any tariffs that exceed 5 percent to that level.
  • The Australian and New Zealand Governments should remove the remaining restrictions on the single trans-Tasman aviation market.
  • The Australian and New Zealand Governments should consider removing remaining restrictions on trans-Tasman foreign direct investment.
  • The Australian and New Zealand Governments should consider a ‘trans-Tasman tourist visa’ for citizens from other relevant countries who wish to travel to both countries.
  • The Australian Government should address the issues faced by a small but growing number of non-Protected Special Category Visa holders living long term in Australia, including their access to certain welfare supports and voting rights.

Many good proposals there.

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3 Responses to “The trans-Tasman productivity report”

  1. anonymouse (722 comments) says:

    Mutual recognition of tax credits is not gonna happen while both countries are running deficits,

    The upfront cost is estimated to be about $500 mill in Australia and a couple of hundred mill here.

    Sure there is a bigger gain for the economies in the longer term, but when both countries due to have elections over the next 2 years, giving away tax revenue based on foreign paid tax is stupid ( from a politicians point of view) ,as that money could be much better used to bribe your own voters.

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  2. krazykiwi (9,186 comments) says:

    The best way to raise productivity is to stop rewarding individual behaviour which is unproductive. Still, those employed by productivity commissions wouldn’t have jobs if that solution was promoted.

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  3. Harriet (5,132 comments) says:

    krazykiwi#

    If government was efficent – they too would not exist! :cool:

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