The Government’s response to the Capital Market Development Taskforce is generally positive although more detail in places and a stronger sense of urgency would have been good.
The Taskforce has scored a high hit rate, with the Government accepting 25 of its sheet of 60 recommendations and earmarking another 28 for further consideration. Those not adopted are, in large part, unsurprising – such as the Government’s reiteration of its policy not to sell any state-owned company in this term.
But the devil will be in the detail. And much of this is unlikely to start to emerge until April, when the Securities Act Review discussion document is released, with implementation targeted for October 2011.
The timeline is understandable, given the size and scope of the work programme. But it is important that the work proceed as quickly as possible as the reform package contains a number of very useful initiatives which have the potential in the aggregate to improve New Zealand’s economic performance.