COM 0500.001 1996-1998 - Laserfiche WebLink

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J.K VicCay Limited: Changrng an Economy by Changing its Public Sector Cvge 6 , • Reduced tariffs. • Removal of controls on foreign investment, except for certain sensitive areas, such as coastal lands. • New labour laws based on employment contracts; with remuneration now being much more performance and productivity based; achieving very positive, competitive outcomes. Employers and employees in both the private and public sectors have "the freedom to choose with whom, and within what structures, they associate... contracts (are] for the parties themselves to determine".$ They now have greater bargaining freedom, and equal status is accorded individual and collective employment contracts. All requirements for compulsory union membership have been removed. • Complete independence of the central bank -the Reserve Bank of New Zealand -making it the world's most independent central bank"9; with the bank having autonomy to maintain price stability. • Governance of schools was transferred to parent-elected boards, with funding was based on a per capita formula. • The bias toward state-owned housing for people qualifying for assistance was removed by creating a uniform amount of assistance based on need, which could be spent for either private or public housing. • Welfare assistance for needy people was redesigned several times over the decade from 1984. • Health care reform has been the most difficult area. There have been constant changes in policy since 1984. The core of the system is a decentralized network of regional health authorities whose task is to provide funding to government-owned and private providers of medical services. There is anarms-length relationship between the funders of health services and the providers, aimed at encouraging efficiency through competition and disclosure of performance information. The most important outcomes of these reforms has been a liberalised economy with - • Substantially reduced personal and company taxation. • Increased international competitiveness. Employment Contracts Act 1991. OECD Rcport 1993: p. 56 The Economist, 7 Nov 1992.