Forum Archive Index - October 2001

["charlie brown" <gordy_gecko@hotmail.com>]

Ben

I read with interest your story "A Dying Exchange".

It seems to me as an ex-pat kiwi working abroad that NZer's as a whole (and 
more particularly your sites target demographics) have yet to come to grips 
with NZ's "real" place in a world economy and ever expanding globalisation.  
The NZSE and NZ as a whole, in its hey-day, did not have to deal with 
globalisation like it does now.

We can stand and lambast, grizzle and whine about the role politicians, 
business leaders et al. have played in the demise of the NZSE and NZ, but at 
the end of the day, I think that "we" all need to ask ourselves the hard 
questions regarding where we think NZ "really" fits into the greater scheme 
of things.  NZ is not Australia, the US or the UK, it is NZ - it should 
therefore be judged on its on merits and not those bench marks set by these 
countries.

Politicians, business leaders and all of us are responsible for forming a 
"new" NZ, one that understands its place in the greater scheme of things.  
We shouldn't sit around and reflect on the demise of the NZSE and the 
attrition rate of the companies leaving it, but rather look at it for the 
role it plays - raising capital.  If it cannot efficiently and effectively 
do this, then question whether it has a place.

The point was made why some of NZ's other burgeoning companies have not 
listed eg Tait.  Compliance costs etc were reasons pointed out as to why 
they may choose not too.  In my opinion it is more simple than that, they 
are good "private" companies who compete locally and internationally who 
know their limitations and stick to them.  They have no reason to raise cash 
on the NZSE or the secondary board, because they don't need it.  If they do, 
they do it privately.  I would rather a country full of good private 
companies than a country with a board comprising a motley array of "has 
beens" and "never wills".

I could go on, but IMHO we all need to be a little more circumspec about the 
role we have on the global playing field.  NZ needs to become more niche 
rather than "full service".  In striving to do this there will be costs; 
companies will go, service organisations will down size, people will loose 
their jobs.  At the end of the day though, this will more truely reflect the 
countries place in the greater scheme of things.

It was good to see in this morninns news that Michael Cullen is considering 
reducing the rate of tax for foreign investors to 18%.  IMO this should go 
further, and try to attract a certain type of company and sector NZ rather 
than a level playing field for all sectors.  NZ needs to focus on "some" and 
not all.  Our need in the past to focus on it all has landed us where we are 
today.

Good day to you all.

CB


From: "Ben Dutton" <bendutton@sharechat.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: [sharechat] NZSE - A Dying Exchange
>Date: Wed, 24 Oct 2001 16:59:16 +1000
>
>Apologies to those on NewsAlert who will have already received this, but
>here's a piece I wrote on the state of the New Zealand Stock Exchange:
>
>"The New Zealand investor community is facing a crisis of unprecedented
>proportions. The main bastion of capitalism in this country, the New 
>Zealand
>Stock Exchange, is dying in front of our very eyes. But instead of a call 
>to
>arms and action, we only see inaction and paralysis from the powers that
>be."
>
>For more click here:
>
>http://www.sharechat.co.nz/news/scnews/article.php/801f43e4
>
>
>Comments and criticisms are all welcome.
>
>Best Regards
>
>Ben Dutton
>
>
>
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