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Government to act on international freight report

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Boosting the performance of international freight transport services will be an important part of the government’s plan to increase the country’s export to GDP ratio by 10 percentage points to a total of 40% by 2025.

The statement comes as part of the government’s response to the New Zealand Productivity Commission’s final report on international freight transport services, released in April 2012.

Transport minister Gerry Brownlee says opportunities exist to lift performance in several areas outlined by the commission as making the greatest difference to New Zealand’s future economic performance and prosperity.

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“International trade is crucial for New Zealand’s economic success and the government will work collaboratively with councils and industry to make progress towards the commission’s finding,” says Brownlee.

The five key findings are as follows, including the government’s actions:

* Lift the quality of infrastructure planning and coordination

The government intends to make more use of facilitated discussions and the New Zealand Transport Agency is currently initiating facilitated freight planning processes, which will include representatives from the government, councils, freight producers, and transport operators.

Reforms are also being progressed to improve the planning and coordination of infrastructure investment.

* Better governance of ports and airports

The government will work together with councils to clarify the objectives of port ownership, to better manage conflicts of interest, and to improve monitoring and information in order to support better decision making.

* Make competition regimes for freight more pro-competition

The government is currently progressing the Commerce (Cartels and Other Matters) Amendment Bill, which is designed to encourage pro-competitive collaborations between businesses, while at the same time deterring anti-competitive cartel behaviour, by narrowing the exemptions from competition law.

As part of its consideration of this Bill, the government has asked the Commerce Committee to consider whether the current industry-specific competition regimes for international shipping and air services are optimal, or whether a Commerce Act-only regime would be more efficient.

* Build more productive workplaces at ports

The government supports the proposed improvements to governance and information infrastructure, a number of which are for local authorities and port companies to consider. Recent changes to the Employment Relations Act have also been designed to encourage more productive employer and employee relations in all workplaces.

* Develop a richer information infrastructure

The government intends to develop more comprehensive systems for gathering and reporting freight data in order to support decision making, monitoring and policy development. Compliance costs imposed on the freight services sector will be reduced

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