Outcome 3: Competitive markets with informed consumers and business

A market with appropriate checks and balances increases the confidence of people and businesses to participate freely in the economy.

We achieve this by regulating markets, providing critical information to consumers, providing dispute resolution services, and supporting businesses to grow and evolve.

Providing core services to New Zealanders

To help keep people and businesses informed and safe, MBIE runs over 70 different helplines through its service centre (over 50 voice channels and over 20 email channels).

During the year, over 1.5 million calls were accepted by MBIE service centres, averaging over 125,000 calls per month. These include issues relating to immigration, tenancy, employment, companies and work safety, amongst many others. (See pages 8 to 11 for a high- level view of areas and volumes.)

MBIE’s efforts to make sure New Zealanders are informed and protected span many areas and services. Across 2023/24, we:

• proactively returned over 2,580 uncollected bonds (totalling over $3 million) through an outbound calling campaign through our service centre
• published 212 voluntary consumer product recalls and have over 160 high-risk consumer products on our watchlist. For example, we oversaw the compulsory recall of Serene S2068 heaters, following a WorkSafe New Zealand investigation that resulted in a prohibition of sale and use due to safety concerns around potential overheating
• delivered multiple consumer awareness campaigns aimed at providing consumers with information on consumer laws, scams and fraud, and protecting children from unsafe products, with over 880,600 visits to the Consumer Protection website during the year
• delivered 18,915 employment dispute resolutions, including 4,580 mediations and 2,454 early resolutions, with a 78% customer satisfaction rating of high or very high.

Supporting business and commercial operations

MBIE also provides foundational services that underpin commercial operations, such as:

• the New Zealand Companies Office, with nearly 728,800 total companies registered at the end of June 2024, and nearly 55,670 new company registrations and over 49,380 removals across the year
• the Intellectual Property Office of New Zealand (IPONZ), whose registers contain over 12,780 registered designs, 23,800 granted patents, 1,290 granted plant variety rights, 341,320 registered trademarks, along with 2,000 registered geographical indications as at the end of June 2024
• the New Zealand Business Number (NZBN), which is a globally unique identifier that allows parties to quickly and digitally access all the basic details of a business and confirm whether it is real. This year, nearly 21,200 new NZBNs of all entity types were registered, with nearly 3,700 identifying as Māori businesses
• the business.govt website, which now includes 48 interactive tools, 66 visual guides and templates as well as several other resources for businesses, from setting up a business to developing important documents, to advice on what to do in the event of a computer hack.

On 1 May 2024, the European Union Free Trade Agreement Legislation Amendment Act 2024 came into force. To meet requirements under the Act, IPONZ implemented changes including the registration of 1,975 European Union Geographical Indications. It also updated processes for trademark examination and examination of any future European Union Free Trade Agreement Geographical Indications proposals. IPONZ worked with intellectual property offices in Singapore and Australia to establish an examiner exchange programme, building strong international connections.

MBIE also had an important role in the Incorporated Societies Act, which came into force in October 2023. The Act puts in place a more modern legal, governance and accountability framework for incorporated societies such as sports clubs and cultural or community groups.

Boosting businesses’ digital capabilities

Ensuring New Zealand companies can operate in the digital era is an ongoing area of work. The Digital Boost digital enablement programme offers small businesses digital expertise at their fingertips. It supports small businesses that are early on in their digital journey with free education, training and tools to boost their digital capability.

We have supported over 40,000 businesses through the Digital Boost programme to lift digital capability. The Digital Boost Educate platform has nearly 70,000 registered users representing 40,000-plus small businesses. Research shows that, after using the platform, 78% of users feel confident in becoming more digital and 58% are generating income online.

Enabling small businesses to thrive

Small businesses (with fewer than 20 employees) are significant to New Zealand’s economy. They make up 97% of businesses, employ around 29% of New Zealand’s working population, and generate around a quarter of New Zealand’s gross domestic product.

In recognition of their importance, MBIE makes sure businesses have access to tools and support, especially as they navigate challenging times and shifting practices. This year MBIE:

• delivered 5 ‘Tips for Tradies’ micro-learning courses aimed at improving the capability of small businesses in the construction sector. These focused on pricing, quoting, managing variations to contracts, invoicing and cashflow management. These micro-courses were delivered together with Inland Revenue, Licensed Building Practitioners and New Zealand Certified Builders to make sure the content that was developed suited the target audience. These courses have been accessed over 17,200 times by over 13,700 users since launching in December 2023
• provided a significant update to the Climate Action Toolbox, to include a tailored pathway for businesses operating in the manufacturing sector. The Toolbox supports businesses to understand their climate impact and improve their behaviour. This tool has been used over 25,600 times in 2023/24. Analysis over the past 12 months shows the manufacturing sector to be the highest user
• supported the Asian Development Bank on the Pacific Private Sector Development Initiative to help Pacific countries improve their business environments and achieve greater economic growth
• supported the Government in repealing the Business Payment Practices Act 2023. The Government intends to address business payment times through non-regulatory measures. It will increase the adoption of eInvoicing and ensure government agencies prioritise eInvoices for faster payment
• helped government agencies to proactively publish their independently verified payments on MBIE’s website. A new dashboard will be updated quarterly for all 32 central government agencies, to show performance against this commitment.

Competitive and fair markets

In 2022, the Commerce Commission completed a market study on competition in Aotearoa New Zealand’s retail grocery sector. The Commission made several recommendations for improving competition in the sector. Over the past year, MBIE has implemented some of the recommendations including:

• supporting the passing of the Grocery Industry Competition Act 2023. This, among other things, establishes the position of the Grocery Commissioner, introduces tools for the Grocery Commissioner and Commerce Commission to use to help promote competition in the grocery industry, and establishes the Grocery Supply Code
• developing the Grocery Supply Code in September 2023, which constrains the ability of the major retailers to push costs and risks onto suppliers and improves the transparency of the trading relationship. The Code aims to support more efficient production of products consumers buy and support suppliers to invest and innovate to bring new products to consumers
• developing new unit pricing regulations to help consumers compare grocery prices more easily by requiring the consistent display of unit pricing in New Zealand’s major grocery retailers, such as the price of a product per kilogram or litre.

During 2024, MBIE supported the release of a package of financial services reforms. These aim to provide regulatory clarity, protect vulnerable consumers and grow the economy. The reforms include changes to the Credit Contracts and Consumer Finance Act 2003 lending requirements, the conduct of financial institutions, and transferring regulatory responsibility of the Act from the Commerce Commission to the Financial Markets Authority.

Building and infrastructure

Well-functioning housing and construction markets support growth and employment. This year we supported initiatives that aim to create a more productive building and construction sector, including:

• steps towards eliminating barriers to the use of overseas building products, which will improve building options and affordability
• changes to the building consent process so building a home is easier, faster and more affordable
• amendments to dam safety regulations so smaller dams will not be subject to excessive compliance costs
• enabling lower building costs by exempting minor building work from paying the building levy.

The new building product information requirements came into force this year. The regulations have introduced new minimum information requirements for building products. They aim to promote higher levels of compliance with the building regulatory system and help consumers, designers, builders and building consent authorities with product selection and substitutions for their projects. The new regulations make sure building product users are given information about how building products contribute to compliance with the Building Code. The requirements aim to reduce building defects and building re-work and improve efficient consenting and safer, more durable buildings.

We are working alongside the Department of Internal Affairs to develop the economic regulation and consumer protection model for Local Water Done Well, which aims to restore council ownership of water infrastructure and services. We supported the former Government to pass the Water Services Economic Efficiency and Consumer Protection Act in August 2023, which was repealed in February 2024.

Improving fire safety

This year, MBIE worked with Fire and Emergency New Zealand and local councils to identify and assess boarding houses across Aotearoa New Zealand (Operation Magazine). The initiative was in response to the fire at Loafers Lodge in Wellington on 16 May 2023, where 5 people tragically lost their lives.This incident stressed the importance of making sure similar boarding houses meet current fire safety regulations and landlord obligations to keep tenants safe.

37 boarding houses were visited, and a final report was released outlining the safety assessments of the buildings. The final report, published by MBIE in March 2024, covers findings from the inspections that identified non-compliance with Building Warrant of Fitness requirements, fire safety systems and healthy homes standards.

As a result of these investigations, over 90% of the recommendations to councils have been completed. MBIE continues to monitor and work with councils across New Zealand on the findings of Operation Magazine. A programme of work is under way to review the Building Code clauses as they relate to fire, including fire alarm and sprinkler systems.

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