Five reasons why investors will love the NZ election result

At BlueNotes, we’ve already explained why business is the big winners of the NZ election. Today, we break down five reasons why investors are also set to benefit from the re-election of the National Party.

"The [result] makes proposed reforms… aimed at encouraging economic development a certainty."
Bernard Hickey, Publisher, Hive News

1. Prime Minister John Key's re-election for a third consecutive term, with a clear majority, removes any uncertainty over any long, drawn-out, coalition-forming negotiations.

2. The centre-right government's clear win removes any prospect of a capital gains tax, a re-regulation of the electricity market, any dilution of the Reserve Bank of New Zealand's inflation-focused mandate and an increase in income tax rates.

3. The National Party’s win, with an unprecedented majority under the mixed-member proportional voting system, makes proposed reforms of the Resource Management Act, aimed at encouraging economic development, a certainty.

4. Proposed, but stalled, reforms to Employment Laws will be reactivated. They include more flexible working conditions and more freedom for employers to opt out of union-negotiated employment agreements. 

5. The re-elected government is expected to ramp up its use of public private partnership for major infrastructure projects such as prisons, hospitals and motorways.