Capital market taskforce launched

By DAVID HARGREAVES - BusinessDay.co.nz | Monday, 21 July 2008

The Government has launched a taskforce to look at the development of capital markets in New Zealand.

The Capital Market Development Taskforce, announced by Commerce Minister Lianne Dalziel today, will be a joint venture with the private sector. It will have a year to prepare a "blueprint and action plan". 

Chairman of the taskforce will be investment banker Rob Cameron. Other members include Fletcher Building chief executive Jonathan Ling, NZ Super Fund CEO Adrian Orr, NZX CEO Mark Weldon, New Zealand Investment Fund CEO Franceska Banga, Rob McLeod of Ernst and Young, Cathy Quinn of MinterEllisonRuddWatts, Scott St John of First NZ Capital, Nigel Williams of ANZ National and Gareth Morgan of Gareth Morgan Investments.

Ms Dalziel stressed that the people had been appointed as experts, not as representatives of their organisations.

Today's announcement comes amid increasing concern at the shrinking size and scope of New Zealand capital markets. With the sharp falls in share prices this year there has been renewed talk that the NZX could be swallowed up by the Australian market.

Even today, Mr Ling, who is on the taskforce, has been quoted talking about how Fletcher Building feels under pressure to move to Australia.

Ms Dalziel said the taskforce would identify ways to give New Zealand firms ready access to affordable capital.

The taskforce would report to a group of senior cabinet ministers, including Michael Cullen, Pete Hodgson and Trevor Mallard.

Mr Cameron said the taskforce would look at the current state of the capital markets here along with the future risks and opportunities and the key changes needed. "It will be a challenge, but one the taskforce welcomes."