Why New Zealand?

Strong Economic Fundamentals

Economic efficiency, stability, and competitiveness New Zealand has completed more than a decade of economic restructuring, and now has a stable economy well geared for long term international competitiveness. The privatisation of utilities and state services like postage and rail services has created one of the world’s most efficient, competition-friendly economies. A free and independent press ensures corporate and government decision-making is transparent and fair.

This openness and competitiveness extends to international companies doing business in New Zealand; the country ranks third in the world in ease of cross-border transactions, according to the World Competitiveness Yearbook, 2005. The New Zealand Government is proactive in providing an environment that enables international investors to relocate, and/or collaborate with New Zealand companies.

Free Trade New Zealand ’s close trade and legal relationship with Australia gives businesses operating from New Zealand duty free access to a population of 24 million.

Our free trade relationships, including recent economic co-operation agreements with Singapore and Thailand, and world-first negotiations with the People’s Republic of China, will significantly increase the size of the New Zealand consumer market.

Infrastructure for Business

Transport and logistics connections New Zealand has extensive road and rail transport systems, and effective inter-island links. Our privately-run deep-water ports are served by over 30 global and regional shipping lines at internationally-competitive stevedoring costs.

International airports in seven urban centres across the country are served by most major international airlines.

Sophisticated telecommunications infrastructure New Zealand ’s telecommunications infrastructure includes five international submarine cable systems and four onshore mobile networks. The Southern Cross cable alone delivers 240 Gbit/s of fully-protected bandwidth to the United States mainland, Hawaii, Australia and Fiji. As demand increases capacity can be doubled to 480Gbit/s.

Energy supply New Zealand ’s overall energy self-sufficiency is around 90 percent, with coal exports balancing dependency on imported oil. Environmentally-friendly, cost-effective hydroelectricity and wind farms are increasingly supplementing natural gas for energy generation.

Our total annual energy supply is projected to grow at 1.1 percent per annum between 2000 and 2025. Growth will be dominated by a 3.5 percent per annum increase in geothermal energy generation, and a 17 percent per annum growth in wind power production.

Research and development International investment has always underpinned New Zealand's world-leading primary production. It is now fundamental to our science and technology innovation.

Private-sector research and development accounts for nearly 40 percent of all New Zealand research and development expenditure. Venture incubators and research clusters around the country also maximise information and technology exchanges.

New Zealand also has a rich track-record of commercially successful products and solutions developed through government-funded research organisations and business / university partnerships.

Nine Crown Research Institutes (CRIs), each with several laboratory sites around the country, produce world-leading public research. CRIs also spin off viable ventures around key commercial discoveries, from small-molecule synthesis for pharmaceutical production to subsurface earthquake-monitoring systems.

New Zealand university research is strongly geared towards commercial applications. This focus has already produced a series of successful joint ventures, equity holdings in spin-off companies, and licensing of discoveries like self-regenerating carbon scrubbers for fuel cells and nuclear magnetic resonance technology

Competitive Business Costs

Efficient business start-up Starting up a business in New Zealand is fast and efficient - it takes just three days. The business start-up process here is one of the simplest and easiest in the OECD.

New Zealand also ranks third in the world for ease of cross-border transactions with foreign partners; ahead of Australia, the United States of America, Ireland, and Germany. (World Competitiveness Yearbook, 2005).

Deregulated labour market and competitive property prices New Zealand ’s deregulated labour market is based on voluntary union membership, individual employment contracts, and proactive recruitment of skilled overseas workers. Our immigration policy draws skilled employees and entrepreneurs to New Zealand, and our immigration department provides facilitation services for businesses sourcing or relocating international staff.

New Zealand ’s office rental rates and industrial construction costs are amongst the lowest in the world, according to the World Competitiveness Yearbook 2005. The government’s foreign ownership regime is currently being reviewed in order to maintain a liberal foreign investment environment and to reduce compliance costs where feasible.

Competitive energy and communications New Zealand ’s deregulated energy sector and natural resources have provided the country with one of the lowest electricity costs for industrial users over the past few years.

Businesses also benefit from competition between several major telecommunications providers. Fixed-line business exchanges are price-equivalent to North America, and multiple new entrants in the broadband market are increasing the variety of technologies and services provided in urban areas.

Source: Investment New Zealand, division of New Zealand Trade and Enterprise (NZTE)