PRESS RELEASE - Business Environment Reforms Commence
The Government with the assistance of the Asian Development Bank (ADB), Pacific Private Sector Development Initiative’s technical support has commenced work on important business environment reforms. The reforms consist of drafting of a new modernised Companies Act and a Personal Property Securities Act tailored to meet the local conditions. Once the Companies Act has been passed, NZ Aid Programme funding will allow the implementation of a new on-line company registry. ADB together with the NZ Companies Office will support the full implementation of the new law and on-line registry.
The new Personal Property Securities Act will allow for moveable property to be used as collateral for loans. This will bring significant benefits to all local businesses. The new system which will be supported by an on-line registry will make it easier for individuals and businesses to access finance.
Benefits of these reform initiatives include:
- lower costs for incorporating a company;
- lower compliance costs of companies;
- improved searching capabilities for registry users;
- greater transparency in the operation of companies;
- increased access to finance for individuals and businesses;
- improved loan to value ratios; and
- potential for lower interest rates on loans supported by moveable property.
The ADB technical team has commenced discussions with stakeholders on these important reforms and this work will continue throughout 2015. Consultations on the policy design will occur over the next 3 months as it is important that all stakeholders are involved the design of these reforms.
For media queries please contact Richard Neves 22878