New Zealand: Country and Foreign Investment
New Zealand’s telecommunications industry has undergone numerous reforms. The state-run Telecom Corporation of New Zealand was privatized in 1990 and industry deregulation began in 1989. The creation of numerous telecommunication companies and the influx of foreign investments resulted in great technological improvements. Combined fixed and mobile-cellular telephone subscribership exceeds 150 per 100 persons. There are over 3.4m Internet users in the country.
In spite of the rugged nature of the country, most of the inhabited areas of New Zealand are readily accessible. The road system is good and, though the difficult country makes for slow journeys, the distances involved are seldom great.
The difficult terrain has greatly encouraged air travel in New Zealand; most provincial towns have airports, and all major urban centres are linked by air service. There are international air terminals at Auckland, Christchurch and Wellington.
The major ports are to be found at the main cities of Auckland and Wellington.
After the boom years from 2001, property prices fell by almost 5% in 2008. However, with low interest rates and a large government stimulus to counteract the global recession, prices began to recover in 2009. Prices in the cities are now rising fastest. The lack of a capital gains tax has also encouraged both residential and commercial property investment in New Zealand, although the government appears now to be moving towards introducing a land tax.
The government has removed controls over banking and finance, and the country’s capital market has become highly competitive. The government is looking at making the country a hub for investment fund administration in the region.